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-