Czech Republic a test for Belt and Road

The Czech Republic can be seen as a logical partner for China's expansion in European Union markets because of the relative quality of its institutions and infrastructure, sound and stable banking, social stability, security and, most importantly, its advantageous geographical location, especially its proximity to the economic powerhouse of Germany.

The Czech Republic has a fairly good macroeconomic structure - one of the highest growth rates in Europe (4.3 percent in 2015), a low unemployment rate (5 percent in 2015) and low public debt (41 percent of GDP). While the basic axioms of the Czech foreign policy remain stable, quite a few high-ranking Czech politicians welcome Chinese partners and most Czech political parties are trying to have at least some "Chinese connection".

The evaluation of the future effects of President Xi Jinping's visit to the Czech Republic is more complex than what many external observers realize. Many agreements will be signed, but their relative economic importance may be diminished by the already high inflow of foreign direct investments, especially after 1997, into the Czech Republic and the important role of foreign companies in the Czech economy.