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MSV
7.-11.10. 2019

International Engineering Fair

Exporting to the Chinese market is complicated, but it is worth striving for

 

China will be the partner country of MSV 2016. The problems and prospects of bilateral trade were the subject of our conversation with the Deputy Minister of Industry and Trade Eduard Muřický, who launched the Czech - Chinese seminar on the development of business cooperation in Hall Z.


As the Prime Minister Bohuslav Sobotka stated while visiting MSV yesterday, Czech companies’ export to China is growing significantly this year. Can you confirm this?
The Czech exports to China have experienced a 14% rise this year, according to recent figures. Our ministry is trying to create conditions to promote more Czech companies in the Chinese market, because it is huge and with so many options. The Chinese market is also very specific, whether linguistically, culturally or due to geographic distance. There are also other, non-tariff barriers, and they need to be overcome too. But I think that China perceives us now as a country that wants to cooperate, and the mood in mutual trade is completely different than it was in the past.

In what fields do Czech exporters have the greatest chance of success?
Czech companies are finding their ground on the Chinese market in our traditional export areas dominated primarily by engineering, including the automotive industry. Chinese partners are particularly interested in our products with higher added value, in the Czech know-how, they want to cooperate. There are also cases of cooperation between Czech universities and Chinese partners. It is a space where we can succeed, but of course we want to have respect of what was a Chinese problem in the past, i.e. the protection of intellectual property. But this situation is also changing and Czech firms are more experienced. They are careful with their most valuable know-how in order to avoid abuse.

Is this greater interest in the Chinese market also linked to the decline of exports to Russia?
It is exactly the case, and it is logical. The Chinese market is large and growing, but on the other hand, everybody wants to be there, so it is very difficult to penetrate to China. The specificity consists in the fact that China requires a state guarantee, not only in terms of finance, where we have EGAP and CEB, but also some political backing and a confirmation that we are interested in cooperation. That is a certain specificity of the Chinese market, because without this support, success would be complicated.

Which areas are conversely interesting for Chinese investors in the Czech Republic?
The portfolio of Chinese investments in the Czech Republic is very diverse. The Chinese declare that they consider these investments to be long term. We welcome investors from all over the world, if they have good intentions, and long-term investments increase employment and will bring the Czech Republic additional resources for development. Chinese investments are not directed only to the industry but also to services and non-traditional areas, such as the recently bought football club.

The balance of our trade with China has been passive long-term. Is there a real chance that the trade balance could begin to conciliate?
Imports from China are still significantly higher than our exports, and to change it will be a long haul. That is why we do everything we can to succeed in this market. However, a deficit is not a problem of the Czech Republic alone, but practically of all European countries. Europe imports mainly consumer goods from China, i.e. clothing, toys and much more. But there is partly also technology, for example Chinese buses are successful on the European market.

Date: 15 Sep 2015 15:00:00

Concurrently with

Transport and Logistics
7.-11.10. 2019


ENVITECH
7.-11.10. 2019

 

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