China's taking a much more lenient line than what is possible.
IMO Lithuania should be getting the Cuba treatment. Ban all exports & inports (including through third countries). Make all economic activity between Lithuania and China illegal. Close down both embassies, refuse visas and so on. Basically acting like the country doesn't exist. Sanction the crap out of their political elite.
An example needs to be made. A weak response is only going to encourage other eastern European puppet states to be pawns for America in the future.
Nay. Recalling the ambassador is enough for now. For a longer term response, Lithuania has one high tech industry - laser. China should invest a few billion dollars to develop competing products.