US ramps up help as countries plan response to China’s bullying
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Countries are seeking help from the US State Department to mitigate economic pressure from China. After Beijing tried to punish Lithuania for opening a liaison office with Taiwan, the US intervened and created a team to assist countries facing economic coercion. About a dozen nations have sought guidance on diversifying export markets away from China. The State Department team, known as 'the firm,' analyzes trade vulnerabilities, offers support, and conducts table-top exercises to game out responses to Beijing. The US government also leverages its economic power in foreign affairs, but faces challenges due to internal political divisions and a lack of an offensive trade agenda. China has not responded to allegations of economic coercion. In the case of Lithuania, China blocked trade, pressured multinationals, and canceled trade credits after Vilnius allowed a Taiwanese trade office to use the word 'Taiwan' in its name. The US provided trade credits, improved market access, and offered diplomatic support to Lithuania. Other nations are warned that economic dependence can become a weapon in the future.

#UsStateDepartment #China #EconomicCoercion #Trade #Lithuania

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