TAIPEI – The scale of the Czech Senate president in Taiwan last week infuriated China, but Milos Vystrcil posed little economic threat to the Central European nation, even if Beijing retaliated as planned.
Vystrcil said in a speech in Taipei that “I am Taiwanese.”This led China’s foreign minister Wang Yi to accuse him of “crossing a red line,” saying he “pays a lot for his short-sighted behavior.”
“This can backfire on China,” said Filip Sebok, an analyst at the Prague-based Association of International Affairs, a group of foreign policy experts.
“In fact, it can embolden like-minded politicians to take action in Taiwan,” added Sebok, a member of MapInfluenCE, an allocation of studies aimed at Chinese influence in Central Europe.”Other countries can also review to raise the profile of their relationships.”Taiwan, without abandoning “Chinese politics.”
In some other respect, German Foreign Minister Heiko Maas told Wang at a joint press conference in Berlin that “threats don’t come back here.””Maas then won the title of his counterparts in countries such as France and Slovakia.The parties may simply imply that Europe’s attitude towards Beijing is taking over.
Czech contractors from Vystrcil’s delegation have returned home with a number of agreements with Taiwanese trading partners, and Prague and Taipei are a direct flight agreement.
Since Vystrcil’s visit, Petrof, a Czech piano manufacturer, has cancelled a sale of 5.3 million Czech kronor to China, but economists say such Chinese retaliation will have minimal effect on the Czech economy.
About 80% of Czech exports pass to the European Union.China accounts for 1.3% of Czech exports and 2.3% of exports, according to Vilem Semerak, full professor at the Institute for Economic Studies at Charles University in Prague, which provides knowledge.Czech central bank.
Semerak said Czech gross domestic product would be reduced by about 1% if all of the country’s exports to China were discontinued.
China Is More to the Czech Republic in Terms of Imports In 2019, the European country earned more than 15% of its imports of goods from China, adding appliances and portions for its computer production and electronics industry.
Europe is also the main source of foreign direct investment received by the Czech Republic, accounting for more than 94.2% at the end of 2018.Asia’s total EDI 4.3%. From China, 0.4%.
Taiwan has more economic influence in the Czech Republic than China in relative terms, Semerak said, adding that the composition of investments also matters.
Chinese investments through corporations such as CEFC China Energy and CITIC are monetary acquisitions of existing assets, such as a football and real estate club, or attempts to take over banks to enable deeper expansion in the EU.
On the other hand, several Taiwanese corporations in the Czech Republic (Foxconn is the most sensitive of commercial qualifications) have contributed to experience in the generation movement and creation of local jobs.
Taiwanese corporations first ventured into the Czech Republic in the mid-1990s, and around 35 Taiwanese generation corporations, Foxconn, Asus, Acer and AU Optronics, now operate in the country.
Foxconn’s Czech operations are the country’s largest exporter, after Skoda Auto, and also one of the largest in the Republic in terms of turnover, according to Richard Turcsanyi, program director of the Central European Institute for Asian Studies at Palacky University in Olomouc in the Czech Republic.
Meanwhile, China’s economic influence in the Czech Republic has been reduced due to failed investment and other problems.
After the stopover of Chinese President Xi Jinping in 2016, President Zeman said China’s planned investment would succeed in 95 billion Czech kroner ($4.2 billion) that year and 232 billion kronor in five years, but in 2017 and 2018, China’s net investment will be negative, according to the knowledge of the Czech National Bank.
Meanwhile, while China considers making the Czech Republic a gateway to Xi’s flagship initiative on the belt and road infrastructure, doubts arise about the benefits the country could gain.
“The macroeconomic scenario in the Czech Republic has been solid Array …and has controlled to attract foreign investors,” said Semerak, the Prague speaker.”It is not true that the Czech economy desperately needs Chinese investment and would be willing to sacrifice anything to achieve them.
“As far as I know, no infrastructure project under the [Belt and Road] initiative has already been implemented in the Czech Republic.”Turcsanyi says.
The Chinese reaction will follow a familiar pattern, as the first phase of verbal condemnation has already taken place, he said, adding that China can now marginalize the Czech Republic in 17-1 format, forget about Czech diplomats in Beijing or oppose the Czech Republic.appointments for high-ranking positions in foreign organizations.
17 1 is an initiative of the Chinese Ministry of Foreign Affairs to advertise business and investment between China and 17 Central and Eastern European countries.
Meanwhile, Vystrcil’s official scale in Taiwan may mark political issues in the Czech Republic’s opposition coalition.
“There’s been a lot of discussion about a presidential race imaginable for Vystrcil in 2023,” said Sebok, MapInfluenCE researcher, “and this most likely results in current circumstances.Vystrcil is in fact the top prominent politician of the opposition SDP party.now, although it was relatively unknown a few months ago.
“There is still a long way to go before the 2023 election campaign, and many adjustments can occur.If you make the decision to run, the principled foreign policy consultation, following former President Vaclav Havel, will actually be your main message.”
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