While I generally think the EU should have a deeper relationship with Taiwan, I disagree with your interpretation of what happened here. Lithuania has weak trade relations with the PRC in the first place, and got basically paid by the US to provoke the PRC. The EU having no coordinated foreign policy, but being supposed to show solidarity is ill equipped to react to a member state just going of the rails, and this now basically forces the hands of the other members.

This sets a dangerous precedent: A member state shouldn't be able to start shit and then hide behind the others, it is a perversion of the idea of solidarity. If the rest of the EU shows major Support for Lithuania now, it will signal that small countries can dictate policy through stunts like these.

It also once again shows that the US really loves to manipulate supposed allies if it benefits them, and that the transatlantic partnership must be fundamentally redefined.