Czech-Taiwan economic relations

TECO_Taipei_c_Koran_c_2_Taiwan.qxd 6 18.4.2018 17:12 Page 6 T A I W A N b u s i n e s s l services l production support The Czech-Taiwan Economic Relations and the Role of the Czech Economic and Cultural Office in Taipei The domestic economy is largely open and exports and external economic links are crucial for the Czech Republic. However, the Czech economy is increasingly dependent on the European Union and on automotive exports, despite the Czech government's attempt to diversify the Czech Republic's trade with a larger accent on non-European countries. The export of vehicles and their parts grows by double digits, much faster than the export of other goods. Approximately 82,010 units are destined for Europe and almost a third of the exports go to Germany alone. Asia is the second most important region for trade with the Czech Republic. Trade with Asia accounts for a little over 13% of the total export figure, which is a significant factor for the development of a business strategy and other forms of support provided to Czech exporters in the coming years. The strengthening of economic diplomacy and the development of projects in the field of trade, investment and science and research in Asia is therefore crucial. The role of Czech embassies abroad Especially in distant markets (such as Asia), the role of embassies is irreplaceable. In addition to public and cultural diplomacy, the embassies also promote economic diplomacy, which plays a crucial role special 1/2017 T+T T e c h n i k a a t r h in supporting Czech economic interests in the world and in securing sales of Czech products particularly outside Europe. Economic partnership Taiwan ranks 8th in the list of the most important business partner for the Czech Republic in Asian countries with a total balance of $ 1.14bn. Countries such as Vietnam, Singapore, Indonesia, Hong Kong and the Philippines ranked significantly lower. Despite the fact that Czech export to China, one of the prime areas of economic diplomacy, increased last year, the trade balance continues to be notably passive. Exports to Asia include not only China, but also the three countries of Japan, the Republic of Korea and Taiwan, totalling $ 1.56 billion (CZK 38.5 billion) (source: ČSÚ, 2016). However, a more interesting table is that of the current trend and direction of trading, i.e. the Czech export statistics. These statistics confirm the increasing interest and preferences on the side of Czech companies. Czech exports to Taiwan decreased slightly last year, partly due to the restarting of the Taiwanese economy, which was revitalized only in the fourth quarter of 2016. Taiwan therefore ranked 10th out of a total of 49 Asian countries. However, in the region of Eastern and Southeast Asia, Taiwan ranks 7th. The items most frequently exported to Taiwan in 2016 were production and transport machines, industrial consumer goods and market products sorted mainly by material (source: ČSÚ, 2016). At the same time, Taiwan is an important source of investment in the Czech Republic, which reached EUR 104.54 million last year and since 2003 has generated up to 24.5 thousand new jobs. Last year, existing investments in the Czech Republic by Inventec and Foxconn (source: fDi Report_Taiwan to CR and CzechInvest 2016) increased significantly. Foxconn is one of the largest foreign investors in the Czech Republic and one of the Czech Republic's largest exporters - (source: CzechTop100). From the above it follows that the Czech Republic is an important trading partner of Taiwan in the region of Central and Eastern Europe, in terms of its strategic geographical location, a stable economy, fa-