From China: Troubled Signals to Lithuanian Laser Manufacturers Business



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With Lithuanian politicians and companies under pressure from China for the future Taiwanese mission, turbulent days for all export sectors to the country.

The Lithuanian-Chinese conflict over Taiwan is closely monitored by the Lithuanian laser companies Šviesos konversija, Ekspla and Altechna, which not only export their products here, but also have a representative office.

Although so far 15 minutes Kęstutis Jasiūnas, director of Eksplos, revealed that some negotiations on new orders have stopped: the company’s customers in China have started to look at Lithuanian suppliers more cautiously.

Photo by Julius Kalinskas / 15min / Kęstutis Jasiūnas

Photo by Julius Kalinskas / 15min / Kęstutis Jasiūnas

“Direct sayings of that we will not buy from you no, but some buyers, after hearing the noise, suspended negotiations on possible orders. Let’s wait, let’s see what happens. Not that they refused, maybe, let’s call it turned on caution“He described the situation.”

K.Jasiūnas added that it is difficult to calculate how much such caution with the customer could cost the company. The company exports about 20 percent to China. their production.

The interlocutor also said that he would not want to speculate on how realistic it is that our country’s companies will be forced to withdraw from China.

“I don’t know if that’s possible. It’s hard to guess when we don’t know what the solutions will be. We keep working and as much as we have orders from China, we produce and ship them. After all, these are specific and safe products that can be more difficult. to obtain elsewhere. So is the relationship. Our competitors in the field are an American company; the relationship between the United States and China is not very good. If Lithuania is punished, then the United States will have to be chosen, “he said. the interlocutor.

It is true that manufacturers are upset about the delayed changes to the import law in Beijing, but this is not related to Lithuania’s policy towards Taiwan and applies not only to the laser sector: the actions of Chinese politicians are They have been waiting since the beginning of the year. .

Head of the Petras Balkevičius Laser Association 15 minutes He said he had not heard anything about the Chinese government’s disruption of Lithuanian laser manufacturers.

The other two companies exporting to China declined to comment on the situation. Representatives of Light Conversion motivated their decision due to lack of time, Altechnos motivated their decision with the communicative sensitivity of the subject.

Lasers are not cheese, it would be especially difficult to “reorient”

According to P. Balkevičius, Lithuanian laser manufacturers work in all markets where there is a demand for such products. “We sell everywhere: in India, the United States, Australia and Japan. China is not a small part and [jeigu veikla būtų ribojama] at that point our sales would drop. It’s not that it’s very bad, but it would be worse, ”he said.

However, redirecting to other markets would not work as well as in many other areas. The demand for high-tech in China is huge, attracting manufacturers from all over the world. Although the sales geography of Lithuanian representatives is very wide, laser production has a limited and very specific demand.

Photo by Josvydas Elinskas / 15min / Peter Balkevičius

Photo by Josvydas Elinskas / 15min / Peter Balkevičius

“In this case, it is not easy to relocate those sales that would disappear in China. There is no market in which we do not work, but this is not the case here with milk: if Belarus bans it, we export it elsewhere. Perhaps we should expand the product range in the remaining markets, look for other solutions ”, commented P. Balevičius.

K.Jasiūnas drew attention to the specific characteristics of such products: what is suitable for one customer may not be necessary for another. “After all, we do not sell our products to supermarkets. All over the world the same thing: we sell to a specific buyer, according to a specific order.” If someone in the United States bought a product at a single order, they will not we will pass the manufactured product to the Chinese in no way, “he emphasized.

China is a leading importer of Lithuanian lasers

According to the data analysis of the Department of Statistics, in 2018-2020. The increase in the value of exports of lasers of Lithuanian origin was observed from 43.4 million. up to 63.7 million euros.

Comparing the first five months of this year with the same period in 2020, it can be seen that the trends remain similar: laser exports amount to about 23 million. euros.

China is the largest export market for Lithuania’s laser and photonics industry, accounting for a third of this export last year (31.6%). Other important export directions are Germany, the United States, South Korea, Japan.

Exports of these products to Taiwan in 2020. accounted for 1.6 percent. the value of all property, and in five months of this year – 4.7 percent.

According to Versli Lietuva, the volume of Lithuania’s high-tech exports to China has increased almost 7.5 times in five years and, if nothing unforeseen happens, it should continue to grow in the future.

At present, most of the technology products exported to China are lasers and optical products (63% of the total exports of high-tech products from Lithuania to China).

Tension in the relationship

Lithuania became angry at China when the Foreign Ministry announced that it would allow a Taiwanese representative office to operate in the country. This is the first time that a representation in the European Union will act on behalf of Taiwan, not Taipei.

China claims that in this way Lithuania is breaking not only the diplomatic tradition, but also the “one China” principle.

China opposes the use of the Taiwanese name and in any case avoids using the word “Taiwan” so as not to give the island international legitimacy.

The Lithuanian Foreign Ministry rejects such accusations and seeks Western support to resist Chinese pressure.

At that time, Taiwanese residents significantly increased spending on Lithuanian online stores, BNS announced.

According to data from the Taiwanese authorities, from February to the end of June, the inhabitants of the seven main cities of the island sold about 112 thousand. credit card payments totaling more than 2,500 million euros. New Taiwan dollars (about 76 million euros).

“Lithuania has become one of the top ten most popular online shopping destinations for Taiwanese consumers,” said Bi-khim Hsiao, representative of Taiwan’s economy and culture in the United States, who shared a photo of the Lithuanian beer what do I buy.

“One thing is clear. “The Taiwanese people sincerely thank the international community for their kindness and assistance,” he said.



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