Taiwan on Tuesday announced a launch of $1 billion credit program to help fund joint projects between Lithuanian and Taiwanese companies in six business categories.

According to Taipei Times, Lithuanian exports to Taiwan totalled 19 million euros, which is US$21.54 million in 2020, while imports from Taiwan totalled 66 million euros.

Lithuania is under pressure from China since last year when Lithuania allowed the Taiwan island to open a de-facto embassy under its own name.

China has downgraded diplomatic ties with Vilnius, and is pressuring companies, such as German car parts giant Continental to stop using Lithuanian-made components. It has also blocked Lithuanian cargos from entering China.

Last week also, Taiwan announced plans to set up a separate $200 million fund to invest in Lithuanian industries and boost bilateral trade as it tries to fend off China's diplomatic pressure on the Baltic state.

"The investment and credit funds will help us strengthen the cooperation," Taiwan's National Development Council Minister Kung Ming-hsin said in an online news conference.

The credit fund will focus on developing semiconductor talent and facilitating semiconductor development, as well as biotechnologies, satellites, finance and scientific research, said Kung.

Kung pledged to assist and stated that establishing a trade office in Taiwan will help to broaden the area of collaboration.

Lithuania's Economy and Innovations Minister Ausrine Armonaite said her country planned to open a trade representation office in Taiwan in the spring.

"Taiwanese companies are in need of laser projects, hopefully our laser companies will soon find partners in Taiwan and we will be very happy to facilitate the partnership", she said.

US diplomats have expressed strong support for Lithuania, calling China's pressure "economic coercion". Lithuania's Foreign Minister said he would discuss the Chinese pressure with his European Union counterparts on Friday.

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