(Reuters] – China’s trade dispute with Lithuania could be taken to the World Trade Organisation by the European Union (WTO) if there is evidence Beijing is breaking international trade laws, said the Executive Commission on Friday.

China has asked Continental, a German auto parts company, to cease using components from Lithuania in a dispute with Beijing over Taiwan’s status, Reuters reported Thursday. The report cited two sources familiar with the matter.

Following the opening of Taiwan’s representative office in Vilnius by China, the Chinese government, who views Taiwanese self-rule as their territory, cut diplomatic ties to Lithuania last month.

China’s Foreign Ministry denies Beijing had pressured multinational firms not to use Lithuanian-produced components, however it claims that the companies are no longer trusting Lithuania.

The European Commission stated that it was collecting information in order to discover what actually is happening and would then make a decision on further actions.

We are currently looking at steps to be taken by the WTO, and have submitted an official complaint. “Of course, there are many other possible steps,” said a spokesperson from the European Commission to reporters in Brussels.

Another spokesperson stated that in order to present a case to the WTO we must have sufficient evidence. He added that the Commission is in contact with authorities in Lithuania as well as other member states who could face similar issues.