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There are two Governments that claim to be China.
If you give recognition to one of those Governments (de facto or otherwise) you can expect repercussions from the other, depending on how useful to are to that particular Government of course.
Republic of China (Taiwan's) territorial claims -
https://en.wikipedia.org/wiki/Taiwan,_China
But the Taiwanese government wouldn't be able to ban countries that did business with the PRC without cutting themselves off from most of the world? My impression is that they aren't even willing to discuss their own independence too loudly [1] in order to maintain the status quo.
1:
https://en.wikipedia.org/wiki/Special_non-state-to-state_rel...
True.
Interesting how independence actually can mean two things in Taiwan:
https://en.wikipedia.org/wiki/Taiwan_independence_movement
The Kuomintang do not support the island state concept.
Unofficial sanctions and boycotts have been hallmarks of EU and US trade policy and selective abuse of anti-dumping measures and “national security” exceptions and carve outs. I expect more of this to now emanate from China as it becomes a bigger importer of finished goods as opposed to importing mainly raw materials, componentry and supply chain goods.
Zenni Optical recently stopped shipping to Lithuania too, I assume due to Taiwan being a country.
This is why:
https://www.reuters.com/world/china/taiwan-opens-office-lith...
I hope the whole EU block responds accordingly.
Unlikely. If you take diplomatic action on your own outside the EU you may well be left to dry.
Lithuania did not consult with the whole EU before starting this quarrel with china for seemingly no apparent reason.