Society and Economy
Volume/Issue:
Volume 39: Issue 4
Trade and investment relations between the Czech Republic and China: The Czech Republic as a gateway to the EU?
Authors:
Tereza De Castro University of Economics, Prague, Czech Republic

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Jana Vlčková University of Economics, Prague, Czech Republic

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Pavel Hnát University of Economics, Prague, Czech Republic

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Pages:
481–499
Online Publication Date:
Dec 2017
Publication Date:
01 Dec 2017
Article Category:
Research Article
DOI:
https://doi.org/10.1556/204.2017.39.4.2
Keywords:
Czech Republic; China; trade; investment; global value chains; F10; F21; F63
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The Czech Republic benefits from its geographical location, relatively cheap and educated labour force, industrial tradition, high economic growth, and political stability. During the last two decades, Czech-Chinese relations have intensified mainly in terms of trade but also in investment and, in more recent years, also at the political level. In this paper, we assess existing trade and investment relations between the two countries, the Czech Republic’s potential for Chinese trade and investment presence in the EU in comparison to other V4 countries, and also explore the future opportunities and threats for more intensified relations. The trade analysis reveals that the fragmentation of world production has enabled more Chinese value added exports to reach the EU western markets through processing in the Czech Republic. Mutual cooperation can be beneficial for both sides as long as both countries avoid corruption, bridge cultural differences, deal with profit repatriation and prevent misconduct in property rights.

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Society and Economy
Print ISSN:
1588-9726
Online ISSN:
1588-970X

Editor-in-chief: Balázs SZENT-IVÁNYI

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Society and Economy
Language English
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Foundation		 1972
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per Year		 1
Issues
per Year		 4
Founder Budapesti Corvinus Egyetem
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ISSN 1588-9726 (Print)
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