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Prague wants investment from China

By Cecily Liu (China Daily) Updated: 2014-08-30 08:05

Zeman said the Czech Republic has strengths like skilled workforce, industrial capacity and favorable tax breaks, all of which are attractive to Chinese investors.

"We have a lot of industrial zones with good infrastructure, including electricity, water, research and development networks and technology. So we welcome Chinese investors to these zones," Zeman said.

The Czech Republic is a country with a long history of industrial strength, but in recent decades, its manufacturing sector has experienced decline, and this spare capacity and abundant skilled workers have already attracted some investment from Chinese companies.

White goods manufacturer Sichuan Changhong Electric Co Ltd, canned food producer Shanghai Maling Aquarius Co Ltd and Yuncheng Plate-making Co Ltd have all built factories in the Czech Republic.

Lian Yongping, general manager of Changhong Europe Electric, said the Czech Republic is a good entry point for Chinese manufacturers because its geographical position in the European Union means end products manufactured in the Czech Republic are exported tax-free to other countries in the EU.

The Czech Republic also has highly skilled workforce but relatively lower costs of production compared to Western European countries, meaning it is favorable for Chinese companies that want to move production to Europe to serve the local market, Lian said.

Zeman said trade and investment between China and the Czech Republic has great potential for growth. The potential addition of a direct flight between Prague and a Chinese city will be a key breakthrough, he said.

According to Zeman, he hopes Chinese banks can invest in the Czech Republic and make use of its strong financial sector.

The China Investment Forum is organized jointly with the second China-Central and Eastern Europe leaders' meeting, also taking place in Prague, and aims to increase cooperation between China and CEE countries.

Vice-Premier Zhang Gaoli, who led a delegation of about 700 to attend both forums, said China can help CEE countries' economic growth by providing a large market for exports and investing in their infrastructure.

The CEE countries are also welcome to bring their manufacturing and industrial strengths to China, especially in western China where development has not kept pace with that in the eastern region.

"Like China, the CEE countries have achieved remarkable results in economic and social development. The 16 CEE countries are committed to economic development and infrastructure building, and China has huge potential to help in these infrastructure projects," said Zhang.

In 2013, trade between China and the Czech Republic stood at $9.45 billion. The Czech Republic is now the second-largest trading partner of China in Central and Eastern Europe.

To commemorate the 65th anniversary of diplomatic relations with China, Prague Castle is exhibiting the "Treasures of Ancient China", including terracotta warriors from Xi'an, Shaanxi province.

cecily.liu@chinadaily.com.cn

Prague wants investment from China

Prague wants investment from China
 Czechs seek larger part of Chinese market  Top 10 trading partners of the Chinese mainland

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