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Economist prof. Rimantas Rudzkis explained to Delfi that the Lithuanian-Chinese conflict is affecting the investment climate in our country and will deteriorate over time.
“There will be some companies that develop these kinds of activities, for which the supply of individual components from China is sufficiently important and the fact that this supply is stagnant due to bad relations (with China-ed.), Naturally raises the question of companies to develop production outside Lithuania, “where there will be no such problems,” he explained.
The economist assured that in terms of development, there are at least some countries that are very similar to Lithuania. As he called it: Latvia, Slovakia, Czech Republic and Poland.
“It just came to our attention then. After all, every time a foreign investor comes to Lithuania, there is usually a fairly long comparison between Lithuania and neighboring countries.
Lithuania, whose main engine is the manufacturing industry, is involved in production, and most of the production is related to the use of various intermediate parts. It is not the case that you can buy everything you need from one manufacturer. Modern production is very complex, and the device usually consists of parts from a variety of countries.
It is China that is called the world factory and a large part of the intermediate production comes from China. And if that intermediate production stagnates, it at least tends to do so, then if I were an unbiased investor who only cares about profits and was considering where to develop production, I wouldn’t choose Lithuania because of all the anger. Entrepreneurs are not willing to take risks, ”he said.
According to R. Rudzkis, for a certain part of investors, the attractiveness of Lithuania due to Lithuania’s conflict with China will decrease.
“It just came to our notice then. Companies that have no ties to China will not be affected,” he said.
The economist is convinced that companies are simply looking for ways to make more profit.
“The managers of the company strive to satisfy the interests of the shareholders of the company, and what does it matter to the shareholders? Either the profit or the value of the company. In both cases, if the company is related to China, it will be unfavorable, “he said.
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