Taiwan Expands Access to Economic Funds for Central and Eastern Europe

Taipei: The Ministry of Foreign Affairs (MOFA) announced that two special Taiwan funds, aimed at bolstering economic and trade relations, are accessible to all countries in central and eastern Europe, not exclusively to Lithuania. This clarification follows inquiries from an opposition lawmaker regarding the allocation of the Central and Eastern Europe Credit Fund, valued at US$1 billion (NT$31.8 billion), and the Central and Eastern Europe Investment Fund, worth US$200 million, both established in 2022.According to Focus Taiwan, the announcement comes after Kuomintang (KMT) Legislator Yeh Yuan-chih raised concerns during a television talk show. Yeh suggested that the funds were specifically intended for investments in Lithuania following the establishment of the Taiwanese Representative Office in Vilnius in 2021. He urged the government to provide transparency on the expenditure and address accusations from Lithuanian officials, including outgoing Prime Minister Inga Ruginiene, about unmet economic commitm ents.In response to these claims, MOFA clarified that the funds are open for application by all central and eastern European countries, not limited to Lithuania. The ministry highlighted that the funds have already facilitated loans to businesses in the Czech Republic, Slovakia, and Lithuania, as well as to Taiwanese companies operating in these nations. These ventures span various sectors including semiconductors, optical lasers, biotechnology, healthcare, and finance.Moreover, MOFA noted the strengthening trade relations between Taiwan and Lithuania since opening reciprocal trade offices in Vilnius and Taipei in 2021 and 2022, respectively. In 2025, Taiwan's imports from Lithuania surged by 63.36 percent from the previous year, reaching approximately US$60 million, while exports to Lithuania increased by 13.6 percent to US$105 million.The ministry emphasized that these figures reflect the success of the bilateral cooperation and exchanges. Relations between Taiwan and Lithuania have notably improved i n recent years, following the establishment of reciprocal representative offices. However, this development drew criticism from Beijing, which protested Lithuania's decision to use "Taiwanese" in the name of Taiwan's representative office in Vilnius, viewing it as an assertion of Taiwan's sovereignty.China's response included recalling its ambassador from Vilnius, expelling Lithuania's ambassador from Beijing, halting direct freight rail services, and imposing restrictions on Lithuanian exports to China. Despite a diplomatic shift with a new Lithuanian government in late 2024 seeking to mend ties with China, Lithuania has not requested a change in the name of Taiwan's representative office in Vilnius.