Forty Chinese firms express interest in doing business in the Czech Republic

14 Oct. 2009 | CzechInvest | Investment seminar in Shanghai presents business opportunities in the Czech republic.

A recent investment seminar in Shanghai provided attendees with an overview of investment opportunities in the Czech Republic in the areas of aerospace, precision engineering, food production and information technologies, as well as advice on establishing commercial relationships with Czech firms. The event was organised by CzechInvest in cooperation with the Consul General of the Czech Republic, the Shanghai Chamber of Commerce, the local foreign-investment agency, and the banks KBC N.V. and ČSOB, which has in its portfolio several Chinese investors operating in the Czech Republic.

“More and more Asian companies are investing in the Czech Republic, where they value the easy access to the single European market, which is primarily due to our country’s splendid location in Central Europe. In comparison with European countries to the west, they also value the lower costs of the local workforce educated in numerous fields. An interesting aspect of Chinese investors is that they far more frequently seek out opportunities for establishing cooperation with Czech companies,” says Alexandra Rudyšarová, CEO of CzechInvest.

The aim of the Shanghai seminar was to present the Czech Republic to companies that are considering doing business here. “We presented to potential investors from China the forms of financial aid available in the Czech Republic and the possibility of finding business partners via our unique sectoral databases and database of suppliers, in which more than three thousand Czech firms are registered. Other presenters then explained the conditions for acquisitions and joint projects, and described the banking services provided in the Czech Republic,” saysJaromír Černík, direct of CzechInvest’s foreign office for Southeast Asia.

Representatives of Shanghai Maling, which invested in a meat cannery in Hrobčice in the Ústí region, and Shanxi Yuncheng Plating Group, which produces printer wheels in Nymburk, shared their experience of doing business in the Czech Republic with seminar visitors. Both firms have been operating the Czech Republic for more than a year.

“Both companies presented the advantages and disadvantages of doing business in the Czech Republic. The drawbacks that they similarly pointed out were particularly the different legal environment, difficulty finding qualified managers, especially directors for their Czech projects, and problems with getting visas for Chinese employees. However, they rated doing business in the Czech Republic positively overall,” explains Černík.

Forty Chinese companies participated in the seminar. For CzechInvest, the most important aspect consisted in inquiries from the areas of manufacturing and development of trains and aerospace. The largest Chinese manufacturer of training aircraft expressed interest in investing in the Czech Republic or possibly establishing cooperation with Czech firms. CzechInvest, in cooperation with the Consul General of the Czech Republic in Shanghai, therefore is preparing a Chinese aerospace mission to the Czech Republic.

Other Chinese firms in the areas of renewable energy sources and information technology are also considering investments in the Czech Republic. Guests of the seminar also included Chinese investment funds looking for investment opportunities in the form of weak Czech firms that have interesting technologies. “I’ve been monitoring Chinese firms’ tremendous interest in acquisitions in Europe. They have sufficient capital and could benefit from our companies’ interest in gaining foreign investors. This is a current topic on which CzechInvest’s Hong Kong office is now focusing most of its attention,” concludes Jaromír Černík.