China has lifted countermeasures against two Lithuanian banks, Urbo Bankas and Mano Bankas, after the European Union removed restrictions on two Chinese financial institutions. The decision took effect on 24 April 2026 and was framed by Beijing as a reciprocal move in the wider EU-China sanctions track, rather than as a bilateral reset with Lithuania.
The case dates back to August 2025, when China imposed measures on the two Lithuanian banks in response to the EU’s 18th Russia sanctions package, which had listed two Chinese regional banks. Beijing reversed the move after the EU removed Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank from its sanctions list.
The Lithuanian angle is still important. Formally, this was an EU-China sanctions exchange. Politically, however, Beijing’s choice of Lithuanian banks made Vilnius the visible addressee of a broader EU-level dispute.
The episode also sits within a longer China-Lithuania context. Relations deteriorated after Vilnius allowed the opening of the Taiwanese Representative Office in 2021. China’s core objection was the use of “Taiwanese”, rather than the more common “Taipei” formula used in many other countries. For Beijing, this is not just a matter of wording, but a sovereignty signal.
In 2026, the issue returned to the agenda after Lithuanian Prime Minister Inga Ruginienė said the office had brought no benefit from Taiwan and had damaged relations with China. Beijing has said it is open to communication with Lithuania, but only if Vilnius takes concrete steps to “correct” the Taiwan office issue.
Data card: Lithuania-China goods trade
| Indicator | Figure |
|---|---|
| China’s exports to Lithuania, 2025 | ~US$2.24bn based on Chinese customs-side reporting / ~US$2.56bn based on UN Comtrade Lithuania import-side reporting |
| China’s imports from Lithuania, 2025 | ~US$0.24bn based on Chinese customs-side reporting |
| Lithuanian exports to China, 2025 | roughly US$240-270m, depending on reporting side |
| Trade structure | strongly asymmetric in China’s favour |
| Chinese countermeasures on Lithuanian banks imposed | August 2025 |
| Chinese countermeasures lifted | 24 April 2026 |
| WTO case DS610 | EU terminated the case in late 2025 after relevant trade resumed |
Interpretation: the bank sanctions were lifted because the EU and China adjusted reciprocal measures. But Beijing’s selection of Lithuanian banks shows that Lithuania remains useful as a small-state signal inside the EU, especially while the Taiwan office naming dispute remains unresolved.