China’s use of trade as a weapon in diplomatic disputes appears to be now targeted at Lithuania, home to fewer than 3 million people, after the Baltic nation agreed to exchange diplomatic offices with Taiwan.

But Beijing’s unofficial halt to its already limited trade with Lithuania is more about sending a warning to the rest of Europe, analysts have said.

Lithuania and Taiwan have agreed to establish mutual representative offices as a sign of deepening ties between the two governments. In response Beijing recalled its ambassador from Vilnius and expelled Lithuania’s from Beijing.