Taiwan setting up $200m Lithuania fund amid China row

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Taiwan will set up a $200 million fund to invest in Lithuania as it tries to fend off Chinese trade pressure on the Baltic state.

The money from the first investment will be guaranteed by the central bank of Taiwan.

It is possible that this is a sign of growing ties after Taiwan was allowed to open an embassy there.

China's relations with Lithuania were cut off.

Taiwan's deputy minister for foreign affairs told Lithuania that it was time for them to help with their difficulties.

Taiwan is sharing tips with the public on how to drink and cook with rum after it bought 20,000 bottles of the liquor for China.

Taiwan Tobacco and Liquor Corporation bought the rum because it could be blocked from entering China, according to state-run media.

The European Union said it has verified reports of goods being held up at Chinese customs, despite China denying blocking trade from Lithuania.

The issue with rum imports is the latest example that has affected businesses inLithuania.

Beijing has imposed unofficial trade sanctions on countries that have disagreements. Around a dozen Australian goods, including beef, wine and barley, are currently boycotted by it.

In November, China reduced its diplomatic relations with Lithuania after the Baltic state allowed Taiwan to open an embassy there.

The new office is called Taiwan rather than Chinese Taipei, which is used in many other nations to avoid offending China.

Taiwan's new office in Lithuania is not seen as a sign of official diplomatic relations, but as a sign of growing ties between them.

It was the first new diplomatic outpost in Europe in 18 years. Due to China's pressure, Taiwan has few allies.

The country defended its right to have ties with Taiwan, but said it respected the "One China" policy.

The One China policy acknowledges that there is only one Chinese government.

Taiwan is a self-governed democratic state, but Beijing sees it as part of its territory. It has been trying to get the island out of its allies.

The caption is media.

The US will stand up for its friends in Taiwan.