Taiwan's Minister Announces $1Bln Fund to Finance Joint Lithuanian-Taiwanese Projects

BEIJING (Sputnik) - Taiwan and Lithuania will create a $1 billion credit program to finance joint ventures, Taiwanese Minister of National Development Kung Ming-hsin made the announcement on Tuesday, against a backdrop of a diplomatic row between Vilnius and Beijing over the former's relation with Taipei.

Last week, Taipei announced establishing a $200 million fund to invest in Lithuanian industries during a press conference with Lithuanian Economy and Innovation Minister Ausrine Armonaite.

After Lithuania opened a representative office on the island last year, China downgraded diplomatic relations with the country to the level of charge d'affaires and removed it from its customs system. The Chinese Foreign Ministry urged Lithuania on Monday to change its policy concerning Taiwan and avoid acting for the benefit of anti-China forces.

Taiwan has been governed independently from mainland China since 1949. Beijing views the island as its province, while Taiwan — a territory with its own democratically elected government — maintains that it is an autonomous country and has political and economic relations with several other nations. Beijing consistently claims the island nation as its own, being the only legitimate political representative of the Chinese people everywhere.