The European Union says it has launched a case at the World Trade Organization against China over its discriminatory trade practices against Lithuania.
The EU said in an announcement on Thursday that China's actions appear to be illegal under WTO rules.
It says China has significantly restricted trade with Lithuania since December and been pressuring EU companies that export to China not to use Lithuanian content.
China has been increasing pressure on Lithuania since the Baltic nation allowed Taiwan to open a representative office under its own name in November.
The European Commission announced last month a set of measures to counter what it calls "economic coercion" by third countries. They include tariff hikes and trade restrictions.
European Commission Executive Vice-President Valdis Dombrovskis has called for the measures to be swiftly approved by EU member states and the European Parliament so they can be implemented soon.