China's foreign ministry said that it was recalling its ambassador to Lithuania over Vilnius allowing Taiwan to set up a representative office in the country.
Beijing also requested that Lithuania withdraw its ambassador to China.
"We urge the Lithuanian side to immediately rectify its wrong decision, take concrete measures to undo the damage, and not to move further down the wrong path," China's Foreign Ministry said in a statement.
In July, Taiwanese Foreign Minister Joseph Wu said that the island nation will open a representative office in Vilnius as part of the strategy to expand and deepen relations with countries "in the EU and throughout Europe". Earlier in July, Lithuanian Economy Minister Ausrine Armonaite said that Vilnius plans to open a trade representative office in Taiwan in the fall.
In turn, the Chinese Foreign Ministry warned Vilnius against the move.
Taiwan has been governed independently from mainland China since 1949. Beijing views the island as its province, while Taiwan maintains that it is an autonomous state and has political and economic relations with several other nations.