According to Baltic News Service (BNS) report dated June 22, the Lithuanian Ministry of Foreign Affairs stated that due to "changes in the domestic political environment," negotiations regarding the "Economic Cooperation Action Plan" between Lithuania and the Taiwanese authorities, through which a so-called "representative office" was established, have been suspended by mutual agreement.
Lithuanian officials stated in April this year that negotiations would conclude by the end of May, and the signing of the cooperation agreement was scheduled for early June. It is reported that negotiations may not resume until a new government takes office and its policy plan is officially approved.
On June 18th, the Lithuanian Social Democratic Party and the coalition of farmers and Green Party signed an agreement to form a joint government, paving the way for a new cabinet led by the Social Democratic Party chairman, Minteidas Sinkevicius.
On June 23, Lithuanian Prime Minister Rujiniėne announced his resignation. It is widely expected that Sinkevičius will be nominated as the new prime minister.
The future of Lithuanian Foreign Minister Budrys remains uncertain. He has been criticized within the coalition government for not making sufficient progress in repairing relations with China. Lithuanian President Naujenda stated in an interview with the Lithuanian national television station that Budrys can retain his position only if he improves relations with China.

Lithuania Foreign Minister Budrys - Photo
According to The Associated Press on the 23rd, after years of tense relations with China, Lithuania's new government has promised to adopt a more pragmatic policy towards China.
In August 2021, the Lithuanian government repeatedly took steps against China, frequently discussing issues related to Taiwan. Despite the solemn protests from China and repeated negotiations, the Lithuanian authorities allowed the Taiwanese authorities to establish a so-called “representative office” in their capital, Vilnius. As a result, relations between the two countries plummeted to a freezing point.
Since last May, there has been no Chinese diplomatic personnel in Lithuania.
In February this year, Rugginiene admitted that allowing the Democratic Progressive Party to establish a so-called “representative office” in Vilnius was a strategic mistake, which ultimately led to a drastic deterioration of relations with China. She later indicated her willingness to consider changing the name of the so-called “Taiwan Representative Office”. Some media interpreted this as an admission of error.
On June 18th, Lucignini said that Lithuania is negotiating with China to restore diplomatic relations, but no specific measures have been taken yet.
On the previous day (the 17th), Remigijus Motuzas, chairman of the Foreign Affairs Committee of the Lithuanian parliament, told media that Lithuania has agreed to the Chinese establishment of a temporary office in the country, “which may be seen as a concession to China.”
Mottuzas revealed that both parties have reached an agreement to resume consular assistance services. This news has greatly inspired the local business community.
A poll conducted in March this year showed that most Lithuanians supported changing the name of the so-called “Taiwan Representative Office” to “Taipei Representative Office” in order to improve relations with China. The results indicated that 58% of adult respondents were in favor of the change. Among them, 22% strongly supported the change, and 36% supported it to some extent. Only about a quarter of respondents expressed opposition, and nearly one-fifth had no opinions.
On June 22, Guo Jiaqun, a spokesperson for the Chinese Ministry of Foreign Affairs, replied to questions regarding China's relations with Lithuania at a regular press conference. He said that the difficulties and crux of the current neutral relationship lies in the Lithuanian party's violation of the one-China principle and its abandonment of the political commitments made in the communiqué establishing diplomatic relations between the two countries. China remains open to communication with the Lithuanian party. It is hoped that the Lithuanian party will take action as soon as possible, decisively correct its mistakes, and return to the right track of adhering to the one-China principle, thereby creating conditions for the normalization of neutral relations.