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Economy

China, Czech Republic set example for broader region to advance B&R Initiative

April 06, 2016


Abstract : China and the Czech Republic, by upgrading their relations during a historic visit by Chinese President Xi Jinping, has set an example for countries in the broader region to work with China to advance the Belt and Road Initiative.

BEIJING, April 5 (Xinhua) -- China and the Czech Republic, by upgrading their relations during a historic visit by Chinese President Xi Jinping, has set an example for countries in the broader region to work with China to advance the Belt and Road Initiative.

Xi visited theCzechRepublicfrom March 28 to March30 insearch of a partner to advance the Belt and Road Initiative and a pivot point to boost cooperation with Central and Eastern Europe (CEE) andEuropeas a whole.

TheCzechRepublicis known inChinafor its culture and bilateral cooperation has gained momentum in recent years. Some experts have described a process of the two countries "rediscovering each other as important cooperation partners."

The two countries elevated their relations to strategic partnership and signed a host of cooperation agreements as their presidents had good interactions, formal and informal.

COMPLEMENTARY ECONOMIES

Xi's visit, the first by a Chinese head of state to theCzechRepublicin 67 years, is seen as an occasion for setting a clear political direction for the bilateral relations. It began with an informal meeting at the Czech president's summer residence and concluded with a beer-toasting farewell at a picturesque medieval library. They also planted a ginkgo together as a symbol of lasting friendship.

"A good personal rapport between leaders can have a positive impact on ties between nations," said Cui Hongjian, a senior research fellow on European studies at the China Institute of International Studies.

During Xi's visit, the two sides agreed to enhance cooperation in fields such as production capacity, finance, nuclear energy, e-commerce, telecommunications and environmental protection.

The two economies are complementary. A country of over 10 million people, theCzech Republichas an edge in many industries. Leaders said the two countries should also try to forge synergy between the "Made in China 2025" plan and the "Czech Industry 4.0."

BELT AND ROAD INITIATIVE

Another important aspect of the enhanced cooperation lies in the position of theCzechRepublicas an important country in Central andEastern Europeand on the trade routes of the Belt and Road Initiative.

"I believe the visit of the president will not only produce important breakthroughs in the bilateral relations, but also lead the cooperation betweenChinaand the CEE countries with an example," said Zhao Junjie, a research fellow at theChineseAcademyof Social Sciences.

Xi proposed the Silk Road Economic Belt and the 21st-CenturyMaritime Silk Roadin 2013 to boost regional development by increasing regional and international connectivity. 

The trade routes run through the continents of Asia, Europe and Africa, connecting the vibrantEast Asiaeconomic circle at one end and the developed European economic circle at the other.

The Central andEastern Europehas a key role as it lies between both ends.Chinaand the 16 countries in the region have been promoting cooperation under a framework known as "16+1."

Trade between the CEE countries andChinahas been growing fast but the potential is still great compared with trade betweenChinaand other parts ofEurope.

Jan Kohout, an adviser to Czech President Milos Zeman, said many experts, universities, research institutions and business organizations have interest in the Belt and Road Initiative.

"We cooperate with many Chinese institutions in research on the initiative and we are linking it with the '16+1' cooperation," he said. "We even have research partners inSlovenia,Croatia,RomaniaandPoland."

Kohout said the initiative will bring about prosperity along the routes. It is not only about business but also about bringing people closer.

Chinahas said that it is not pushing for other countries to join the Belt and Road Initiative and that it is open for the initiative to be coordinated with the development plans of other countries.

GATEWAY TOEUROPE

Some political leaders and observers said they see even wider significance for the visit of the Chinese president as it is expected to drive the cooperation betweenChinaandEuropetoo.

President Zeman said theCzechRepublicis a country that can be trusted byChinain the EU and his country is willing to fully utilize its influence to help further boostChina's relations with the EU and CEE countries.

Zeman said his country is committed to becoming a gateway forChinato the EU and a hub of transportation, logistics and finance in China-EU trade. "We are very proud of our economic and trade achievements withChina," he said.

Chinais the largest trading partner of theCzechRepublicoutside the EU, while theCzechRepublicisChina's second-largest trading partner in the CEE. Bilateral trade topped 11 billion U.S. dollars last year.  Enditem

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