Ties between country and Czech signal prosperous future in trade

Opportunities for further cooperation explored as two sides enjoy benefits of demand and expertise

China and the Czech Republic will continue to diversify economic cooperation and build stronger trade ties in the long run. They have reached many consensuses to develop the Belt and Road Initiative and the Central and Eastern Europe market, said officials and business leaders.

"The enhanced trade tie between China and Czech Republic will bring a win-win situation. China has a profound market for imports from Czech Republic, which can boost the local job market and industrial upgrading," said Lu Ming, vice-dean at the Academy of China Council for the Promotion of International Trade.

He said both countries have space to expand trade and investment, and deepen cooperation in fields such as high-end manufacturing, finance, modern service, agriculture and infrastructure projects.

The trade volume between China and the Czech Republic surged 25.4 percent year-on-year to $28.6 billion in 2018, data from the Economic and Commercial Counselor's Office of the Chinese Embassy in Czech Republic show.

China exports mainly computers, chemical products, raw materials, electronics, textiles, garments and household appliances to Czech Republic. Czech shipments to China are mainly auto and machinery parts, optical, agricultural, mechanical and electrical products, clocks, plastics, paper and transport equipment.

Vladimir Tomsik, Czech ambassador to China, said his country is one of the most economically successful members of the European Union. This is due to its geographic location. It has made the Czech Republic a favored destination for foreign direct investment. Many Czech companies export their goods to Germany and other parts in Europe.

New opportunities have been created with the upcoming 2022 Beijing Winter Olympic Games, said the Czech diplomat. He added that Czech companies can offer expertise in areas such as the construction of sports infrastructure, especially ice rinks, and training in ice hockey or skiing.

Qu Weixi, vice-president of the Beijing-based Chinese Academy of International Trade and Economic Cooperation, agreed. He said that the Czech Republic's strategic location at the center of Europe, innovation-based economic development model, and policies to develop markets related to the BRI can be used as a base for cooperation with China.

The Czech Republic can provide expertise via intelligent infrastructure solutions to the function of the BRI, such as in transport, finance and logistics services, green technologies and energy solutions, he noted.

Roman Wojdyla is general manager of Home Credit Consumer Finance, a Czech Republic-based consumer finance provider. He said that after eight years of development, the company had established a presence in 312 Chinese cities and counties with more than 230,000 sales points.

As income and consumption continue to grow, Wojdyla said that China's domestic demand is a powerful force in economic growth.

With forward spending for premium products and services becoming a new norm for young people across China, Home Credit aims to unlock new consumer finance scenarios based on the changing preferences and habits of millennials.

The Czech company has worked alongside with Chinese partners including smartphone manufacturers Oppo and Vivo to expand into the Association of Southeast Asian Nations region, especially Vietnam and the Philippines, using the growth opportunities brought by the BRI.

"Besides helping consumers to buy smartphones, we are also making efforts to offer consumers omnichannel experiences in more diverse areas, such as home appliances, home decoration, beauty, tourism, vocational education and fitness," he said.

Liu Yuan, a researcher at the Research Center of Global Value Chains at the University of International Business and Economics, said the Czech Republic has close ties to CEE countries.

It has developed networks with strong contacts and specifically-available business opportunities in these countries. Czech companies are also leading investors in CEE countries and have established a mature market network there.

Attracted by this, Chinese companies such as Bank of China, CITIC Group, Huawei Technologies and China Railway Rolling Corp have all set up research and development centers, service branches or regional headquarters in Prague over the past several years.

zhongnan@chinadaily.com.cn

(China Daily 10/08/2019 page6)