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EU drops WTO case against China as informal trade curbs on Lithuania end
Brussels says its key objectives were met as Beijing ends informal curbs on Lithuanian goods, prompting the EU to withdraw its 2022 WTO dispute.
EU drops WTO case against China as informal trade curbs on Lithuania end
FILE PHOTO: Illustration shows EU and Chinese flags / Reuters
December 2, 2025

The European Union on Monday said it had ended a trade dispute it launched against China in 2022 in which it accused Beijing of discriminatory trade practices against Lithuania.

"The European Union (EU) hereby notifies the Dispute Settlement Body that, considering that the key objectives behind this dispute have been met and relevant trade has resumed, it no longer considers it necessary to pursue its complaint," the WTO document said.

The dispute centred on China’s treatment of Lithuanian exports. The EU accused China of using “discriminatory and coercive measures” to block or hinder imports from Lithuania, including refusing customs clearance, rejecting import applications, and pressuring other EU companies to strip Lithuanian content from their supply-chains.

According to the EU, these measures were aimed at punishing Lithuania after Vilnius allowed a Taiwanese Representative Office to open in its capital, which Beijing regarded as politically provocative.

Trade data showed a dramatic collapse: in November 2021, Lithuanian shipments to China fell by about 91.4 percent from a year earlier.

Because of this, the EU brought the case to the WTO, arguing that China had violated trade rules. 

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China repeatedly denied orchestrating an official ban on Lithuanian goods, despite moving to downgrade its diplomatic ties with Lithuania.

Although the case was filed in 2022, the proceedings were not smooth.

The EU paused the case at least once in January 2024, citing “technical reasons” related to preparing written submissions.

That suspension meant that the dispute was dormant, though not closed. If the EU failed to resume within 12 months, the case would automatically be terminated.

In January 2025, the EU did resume the case.

SOURCE:TRT World and Agencies