Chinese officials downgraded their relations with Lithuania and threatened further diplomatic and economic punishments in a dispute over the Baltic state’s relations with Taiwan that could shape trans-Atlantic attitudes toward Beijing.

“We will take all necessary measures to defend national sovereignty and territorial integrity and safeguard core interests,” Chinese Foreign Ministry spokesman Zhao Lijian said Monday, per an official press briefing transcript. “What we should all be watching for next is whether Lithuania intends to go further down the wrong path to the point of no return or to mend its ways before it’s too late.”