EU launches WTO action against China over Lithuania dispute

The European Union says it's launched action against China at world trade’s governing body for discriminatory practices against Lithuania

BRUSSELS -- The European Union and China on Thursday stepped up their diplomatic dispute as the EU took a spat over exports problems for member state Lithuania to world trade's governing body, and accused Beijing of seeking to undermine the 27-nation bloc's single market.

China retorted that the EU should “distinguish right from wrong.” It said Brussels should get Lithuania to stick to diplomatic relations based on the “one-China” principle at the expense of Taiwan, which Beijing considers part of its territory with no right to diplomatic recognition.

Lithuania broke with diplomatic custom by agreeing that the Taiwanese office in Vilnius would bear the name Taiwan instead of Chinese Taipei, a term used by other countries to avoid offending Beijing.

EU Trade Commissioner Valdis Dombrovskis insisted the bloc was owed more respect and said Beijing should stop coercing member states with heavy-handed trade tactics like blocking imports based on political grounds.