中國在中歐的一帶一路倡議：捷克的案例研究 - 政大學術集成

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(1)International Master’s Program in International Studies National Chengchi University 國立政治大學國際研究英語碩士學位學程. ‧. ‧ 國. 學. China’s Belt and Road Initiative in 治政大Study of the Central Europe: A Case 立 Czech Republic 中國在中歐的一帶一路倡議：捷克的 y. sit. io. n. al. er. Nat. 案例研究 Ch. engchi. i n U. v. SOŇA KEHMOVÁ. Advisor: YUNG-FANG LIN, D. Phil.. June 2019. DOI:10.6814/NCCU201900061.

(2) ACKNOWLEDGEMENT Foremost, I would like to express my sincere gratitude to my advisor Prof. Yung-Fang Lin for the continuous support and kind guidance of my study and research, for his patience, valuable advice, and immense knowledge. Besides my advisor, I would like to thank the rest of my thesis committee: Prof. ChoHsin Su and Prof. Jui-Wen Hsu for their time, encouragement, insightful comments, and inspirational questions. Finally, I would also like to express my thankfulness to my friends for their support. 政治大. and patience, and especially I would like to thank my family, who supported me throughout. 立. my studies, for their endless patience, support and encouragement, without which it would not. ‧ 國. 學. be possible to complete this thesis.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. DOI:10.6814/NCCU201900061.

(3) ABSTRACT This thesis deals with the implementation of the Chinese Belt and Road Initiative (BRI) in Central Europe, specifically with the case of Chinese activities in the Czech Republic. The thesis designed as a qualitative research describes the development of Czech-Chinese relations from 2012 to the present in a broader European context. The factors influencing the Czech-Chinese re-alignment are described together with the importance of this foreign policy change for the Czech Republic. The work also focuses on the possibility of Chinese use of economic factors to gain political influence and soft-power, when the thesis concludes that China has significantly strengthened its influence over Czech political circles. Despite the increase in mutual contacts and the improvement of the Czech-Chinese renewed relationship, in the eyes of the Czech public it remains perceived as very negative phenomenon, and the. 政治大 concludes that the Czech Republic, 立 newly applying economic diplomacy to its foreign Chinese issue is subject to significant securitization in the Czech media. Therefore, this thesis. relations, has significantly changed its attitude towards China, which moved from a very cold. ‧ 國. 學. approach to a significantly less critical, and more open approach, however the mutual relationship continues to show considerable asymmetry and the BRI is in the Czech Republic. ‧. sit. io. er. Nat. 摘要. y. implemented rather in the form of promises and agreements than in the form of real results.. n. 本論文探討中國「一帶一路」在中歐實施的情況，特別是捷克案例的質 a v 性研究，描述. i l C n 2012 年至今在廣泛的歐洲背景下，捷克與中國關係的發展。 hengchi U. 文中說明影響捷中關係重新定位的因素，以及此外交政策變化對捷克的重要性。論文著重於中國利用經濟因素獲得政治影響力和軟實力的可能性，並認為中國已經大大加強了對捷克政界的影響力。儘管捷中增進聯繫和關係改善，但在捷克大眾眼中，它仍然被視為是非常負面的現象，而與中國. 交往所衍生的安全疑慮，也受到捷克媒體的關注。因此，本研究認為，捷克近來採行的經濟外交，雖已大大改變了對中國的態度，從非常冷淡的態度轉變為一種較不批判且開放的態度，但彼此關係仍呈現相當大的不對稱性，「一帶一路」在捷克進行的結果並未符合當初的承諾和協議。. DOI:10.6814/NCCU201900061.

(4) Table of Contents. 1.1. Research Motivation ......................................................................................... 1. 1.2. Purpose of the Research ................................................................................... 4. 1.3. Literature review............................................................................................... 6. 1.4. Research Method and Theory ......................................................................... 16. 1.5. Outline of the Thesis....................................................................................... 19. 2.1. Principles of the Belt and Road Initiative ...................................................... 26. 2.3. Cooperation Priorities and Mechanisms under the Belt and Road Initiative. 27. 2.4. Conclusion ...................................................................................................... 31. 學. 2.2. ‧. sit. y. Nat. 3. 政治大 Background and The Scope of the Belt and Road Initiative .......................... 22 立. The Belt and Road Initiative .................................................................................. 22. The Belt and Road Initiative in Europe ................................................................. 32. io. al. er. 2.. Introduction .............................................................................................................. 1. ‧ 國. 1.. v. EU – China Relations and Implementation of BRI ........................................ 32. 3.2. The 16 + 1 Initiative ....................................................................................... 43. 3.3. Implementation of BRI in Visegrad Group Countries.................................... 52. 3.4. Conclusion ...................................................................................................... 57. n. 3.1. Ch. engchi. i n U. 4. The Implementation of Belt and Road Initiative in the Czech Republic .................... 60 4.1 documents. The Political System of the Czech Republic and Key Foreign Policy 60. 4.2. Political Dialogue of the Czech Republic and China ..................................... 63. 4.3. Czech – Chinese Business Relations and Projects under BRI Initiative ........ 75. DOI:10.6814/NCCU201900061.

(5) 4.4. Conclusion ...................................................................................................... 84. 5. Political Implications of BRI and Chinese Influence in the Czech Republic ............. 86 5.1. Foreign Policy Implications of Renewed Czech-Chinese Relations .............. 86. 5.2. Domestic Policy Implications of Renewed Czech-Chinese Relations ........... 89. 5.3. Chinese Soft Power, Influence and Czech Public Opinion ............................ 94. 5.4. Conclusion .................................................................................................... 100. 6. Conclusion ................................................................................................................ 102. 政治大. References ..................................................................................................................... 114. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. DOI:10.6814/NCCU201900061.

(6) LIST OF ABBREVIATIONS •. AIIB – Asian Infrastructure Investment Bank. •. BRI – The Belt and Road Initiative. •. CE – Central Europe. •. CEE – Central and Eastern Europe. •. CEEC – Central and Eastern European Countries. •. CEFC – China Energy Company Limited. •. CIS – Commonwealth of Independent States. •. CR – the Czech Republic. •. ČSSD – The Czech Social Democratic Party (Česká strana sociálně demokratická). •. EAEU – Eurasian Economic Union. •. EFTA – European Free Trade Association. •. EU – European Union. •. FDI – Foreign Direct Investment. •. GDP – Gross Domestic Product. •. KDU-ČSL - The Christian and Democratic Union – Czechoslovak People's. 學 ‧. ‧ 國. 立. 政治大. y. sit. KSČM – The Communist Party of Bohemia and Moravia (Komunistická strana Čech. io. al. n. a Moravy). er. •. Nat. Party (Křesťanská a demokratická unie – Československá strana lidová). i n U. v. •. NATO – North Atlantic Treaty Organization. •. ODS – Civic Democratic Party (Občanská demokratická strana). •. PRC – People’s Republic of China. •. RMB – Renminbi / Chinese Yuan. •. SPO – Party of Civic Rights (Strana práv občanů). •. STAN – The Mayors and Independents (Starostové a Nezávislí). •. TOP 09 – The Liberal Conservative Party. •. UN – United Nations. •. V4 – Visegrad Group. Ch. engchi. DOI:10.6814/NCCU201900061.

(7) LIST OF FIGURES • Map 2.1 The Geographic Representation of the Belt and Road Initiative……………25 •. Figure 3.1 The Attitude of EU Member States towards China……………………….38. •. Map 3.2 Member States of the 16 + 1 Initiative……………………………………...45. •. Figure 4.1 Chinese FDI in the Czech Republic 2011-2017…………………………..76. •. Figure 4.2 Import/ Export Balance of CR with China in years 2010-2018…………..79. •. Figure 4.3 China’s Import/ Export Balance with CR in years 2010-2017…………....81. •. Figure 5.1 Image of China in the Czech Media………………………………………95. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. DOI:10.6814/NCCU201900061.

(8) LIST OF TABLES •. Table 3.1 Chinese investment in 16 + 1 countries between 2009 and 2014………….51. •. Table 3.2 Cooperation Mechanisms of V4 countries and China under 16 + 1 platform………………………………………………………………………………57. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. DOI:10.6814/NCCU201900061.

(9) 1. Introduction 1.1. Research Motivation China is undoubtedly one of the most important actors in international relations in the. 21st century. In recent years, in addition to traditional topics of public and academic discussion, such as China's state constitution, controversial territorial claims or human rights abuses, the increasing presence of China on all continents has also been a frequent subject of interest. This presence and accompanying activities are part of a larger strategy called Belt and Road (also BRI), in which China introduced its infrastructure and investment. 政治大. development plan in countries of Asia, Africa and Europe.. 立. While Chinese activities in other areas of the world such as Africa or Latin America. ‧ 國. 學. have been subjected to detailed research from the point of view of the academic community. ‧. and no less media attention, Central Europe (CE) together with the Czech Republic remains a less mapped region of Chinese activities, despite the fact that China has paid much attention. y. Nat. n. er. io. al. sit. to European countries over the past few years.. i n U. v. Evidence of China's interest in the CE region, including Czech Republic, is also the. Ch. engchi. emergence of the 16 + 1 initiative, which brings together 16 European countries in a Chinafocused co-operation platform. The 16+1 format was initiated by the People’s Republic of China and aims at intensifying and expanding cooperation with 11 EU Member States and 5 Balkan countries, in the fields of investments, transport, finance, science, education, and culture. China has long been a well-known actor in international politics, and has tended to maintain a "low profile" strategy, thus delaying public demonstrations of its capabilities in order to avoid international attention. This strategy has been applied since the time of Deng 1. DOI:10.6814/NCCU201900061.

(10) Xiaoping, whose government played a key role in boosting China's economic prosperity. However since 2013, the head of the Chinese state is the ambitious and powerful leader Xi Jinping, who, as demonstrated by his activities in recent years, is trying to consolidate his position as well as China's position in the world. Xi is reluctant to rely on previously established procedures, and does not hesitate to pursue his will, even in the field of China's international political orientation. Thus it is no wonder that the previous Deng Xioaping's "low-profile" strategy has been replaced by ambitious, sometimes even monstrous projects, in Xi’s speeches addressed as "Chinese Dream" or "Restoration of the Chinese Nation". China's. 治政大 events abroad (Góralczyk 2017, much greater importance to the international environment and 立 pp. 154-155). new strategy is so much more assertive in terms of being active in Asian regions, and attaches. ‧ 國. 學. It is no surprise, therefore, that Chinese activities in the Czech Republic, which until. ‧. recently was a relatively neglected region in terms of Chinese interest, have grown together. Nat. sit. y. with the growing presence of China on the European continent. And China's activities have. n. al. er. io. not been the only recorded growth, as China's increased presence in business, investment, real. i n U. v. estate, politics, and other spheres has also increased the interest of the general public and,. Ch. engchi. above all, the media about the whole situation and the new Chinese perspective of foreign affairs. The media, however, have often expressed concerns about the so-called "Buying Europe Strategy" and often asked questions about China's motives for these activities. For example, Foreign Policy drew attention to China's purchases of European ports and parallel investments in Central and Eastern Europe, which, according to the magazine, were driven by an ambitious strategy of acquiring influence in Europe and physically linking Europe to China by sea, road, rail, and pipeline (Johnson 2018). 2. DOI:10.6814/NCCU201900061.

(11) In August 2018, the New York Times also focused on Chinese activities linked to the Central European region, and described in detail the controversial situation surrounding China's trade agreements with the Czech Republic (also CR), but also focused on the Chinese impact on individuals working in the political sphere and highlighted the suspicious linkages between state companies, and people who openly support the trade agreements, business contracts and political convergence with China (Barboza, Santora, & Stevenson 2018). For example, The Economist wrote in November 2018, following the appointment of a new Chinese Ambassador to the Czech Republic, an article highlighting China's growing. 政治大 Republic, especially when the Chinese 立 side is involved (The Economist 2018).. influence in Europe, pointing out the blending of economic and political interests in the Czech. ‧ 國. 學. The interest of local and foreign media does not naturally fade as one might expect,. ‧. even though it has been 5 years since the appointment of Xi Jinping to the presidency, and almost five years since the dramatic change in the discourse of Chinese involvement in. y. Nat. er. io. sit. international relations. Likewise, there is no decrease in Chinese activity in the CE region, which, in the context of some events, primarily leads the media and the general public to. n. al. Ch. i n U. v. questions about China's real influence in European countries and the European Union itself.. engchi. There several concerns connected to geo-political consequences, of Chinese foreign direct investment and increased presence in Europe in general, for Europe and European Union. As Chinese motivation for strong presence in CE remains unclear, it gives a space to multiple theories and opinions. Especially after March 2017 EU split in opinions over a joint letter expressing concern about reports of lawyers in China being tortured in detention, when. 3. DOI:10.6814/NCCU201900061.

(12) Hungary prevented the European Union from adding its name to this joint letter 1 (Denyer 2017), and later in June 2017 when Greece blocked EU statement at United Nations over human rights in China 2 (Denyer 2017), it must be added that both countries belong to the countries with the largest economic cooperation with China. Some argued that China adopted a dollar diplomacy in attempt to build political ties through economic links and create thus strategic allies in Europe, or even make EU working process and decision making process less efficient, as China seems to be even more interested in investing in the countries of Central and Eastern Europe, which are already EU member states, and can thus be more useful in. 政治大. promoting Chinese interests in the negotiations with the EU.. 立. Purpose of the Research. 學. ‧ 國. 1.2. The aim of this thesis is to explore activities of China in the Czech Republic, especially the implementation of the Belt and Road initiative, the cooperation within platform. ‧. 16 + 1, and its possible political, business, or influence impacts on the Czech state.. sit. y. Nat. io. er. Another aim of this work is also to reveal the possible relationship between China's. al. v i n C Czech Republic. This thesis will workhwith e ntheg cargument h i Uthat China's economic power and n. use of economic instruments to increase its own political influence and soft power in the. influence in the CR are effectively transformed by China into political influence. China uses economic incentives and promises, coupled with an increasing ongoing interstate visits and. 1. 2. In July 2016, for example, Hungary, one of the major beneficiaries of Chinese financing and investments in recent years, fought hard to avoid a direct reference to Beijing in an EU statement about a court ruling that struck down China’s legal claims in the South China Sea. Then in March 2017, Hungary derailed the EU’s consensus by refusing to sign a joint letter denouncing the reported torture of detained lawyers in China (Benner & Weidenfeld 2018). “Greece, a significant recipient of Chinese investment, blocked an E.U. statement at the United Nations in June 2017 criticizing China’s human rights record — despite rising concerns among many member states about an ever-intensifying crackdown on civil society, including lawyers and activists. (…) It was the first time in a decade that the European Union has not made its collective voice heard during the U.N. Human Rights Council meeting” (Denyer 2017).. 4. DOI:10.6814/NCCU201900061.

(13) cultural exchanges, to increase own soft power in the CE region and to gain economic influence over countries, that can be later used as a political influence. Belt and Road Initiative is therefore the main “umbrella strategy”, and the 16 + 1 initiative can serve as an instrument for this initiative to improve co-operation with countries and thus make it easier for Chinese national interests to be achieved. The main research question is: How is the Belt and Road Initiative implemented in the Czech Republic? However, within the framework of the thesis, even additional research questions will be the subject of interest: What was the development of Czech-Chinese. 政治大 process?; What are the political 立implications of restoring the relationship with China for the relations since the beginning of the BRI in Central Europe and what played a key role in this. ‧ 國. 學. Czech Republic?; What are the results of the Czech Republic’s cooperation with China?; What are China's motives for engaging with and cooperating with the Czech Republic?; Is it. ‧. possible for China to use economic instruments, as trade agreements and foreign direct. Nat. sit. y. investment, to gain political influence and soft power in the country?; What changes in the. n. al. er. io. public perceptions of China occurred in the Czech Republic after the start of more intensive. i n U. v. cooperation and after the launch of the Belt and Road Initiative?. Ch. engchi. These research questions will be applied to the Czech Republic, within the time span starting from 2012 – when 16 + 1 initiative was implemented – up to present, while the purpose is to reveal how the implementation of the Belt and Road Initiative is taking place, what are the key factors shaping the Czech-Chinese relations, how the CR is cooperating with China, but also aiming at revealing a possible link between China's economic activity and the possible increase in China's political and soft-power influence in the CR. The focus will be on China's economic activities in the region, such as the flow of Chinese capital, foreign direct investment, business cooperation, trade agreements, and 5. DOI:10.6814/NCCU201900061.

(14) country-specific contracts. Czech-Chinese relations will also be presented in the wider context of the European Union, the 16 + 1 platform, and the Visegrad Group, of which the Czech Republic is a member, with the aim of bringing a comprehensive view of the situation without detaching the factors that may affect the Czech-Chinese relationship. Therefore, if the right assumptions are made of China's ability to use economic influence for its own political benefit, to obtain political proximity with other countries and to create allies in the international environment, our conclusions should be confirmed in the form of increased pro-Chinese statements and general political sympathies, through. 政治大 through official governmental 立 documents and policy papers of the CR. Similarly, perceptions. statements of governments, heads of state, or individual government officials, as well as. ‧ 國. 學. of China in the Czech media and the general image of China perceived by the general public of CR should be improving, if the Chinese economic activities in individual countries are also. y. Nat. io. sit. Literature review. er. 1.3. ‧. connected with the increase in the Chinese soft power.. al. The Silk Road Economic Belt and 21st Century Maritime Economic Road were. n. v i n C primarily identified as Beijing’s mainhelements i Uto improve current relations with e n g cofheffort. China’s neighboring countries, to boost up the development and growth in the so called periphery. However Belt and Road Initiative has potential in several economic, political and cultural realms. According to Michael D. Swaine, BRI became the main foreign policy and economic strategy of Chinese government, and it is part of Chinese attempt to “leverage China’s growing economic power and influence in order to strengthen and expand cooperative interactions, create an integrated web of mutually beneficial economic, social and political ties, and ultimately lower distrust and enhance a sense of common security” (Swaine 2015, p. 1). 6. DOI:10.6814/NCCU201900061.

(15) A potential explanation for the possible motivation and ability of China to exploit economic factors to manipulate other states, offers for example one of the first academic debates about the possible relationship between economic statecraft and its use in international politics. Albert O. Hirschman, who in his publication introduced the idea of using an asymmetric business/ economic relationship to convince another actor to act in a manner consistent with the interests of the first state, argues that if internationally more strong and less vulnerable country A is significantly involved in the overall percentage of international trade in the small, more vulnerable and economically more dependent country B,. 政治大. country A then has a significant enforcement tool in the form of economy and trade (Hirschman 1945, pp. 13-34).. 立. ‧ 國. 學. This particular form of extortion at the level of the international environment was also addressed by Robert Keohane and Joseph Nye, who attributed considerable importance to. ‧. asymmetric interdependence; as such an asymmetric situation could lead to economic. Nat. er. io. sit. y. extortion due to vulnerability and dependence on the extortionist (Keohane & Nye 1989, p. 9). This situation can be found across human history and do occur even nowadays, when. n. al. Ch. i n U. v. mostly some actors of international arena tend to use the advantage of their economic. engchi. predominance over other countries. Most currently these attempts were visible in Europe, where Russian state majority owned company Gazprom tried to halt Ukraine gas contracts after continuing disputes, and that would not be the first time when the gas supply was cut off because of Russian dissatisfaction with Ukrainian political situation3. However these methods are not unfamiliar even to China, as business was multiple times used a weapon and tool against for China unacceptable behavior.. 3. Gazprom seeks to halt Ukraine gas contracts as disputes continue (Soldatkin & Zinets 2018).. 7. DOI:10.6814/NCCU201900061.

(16) In September 2010 Beijing stopped supplies of rare earths to Japan in a reaction to the arrest of the Japanese captain of the Chinese fishing trawler. This incident happened near the controversial Senkaku islands which are officially under Japanese control but are also the center of conflict between China, Taiwan and Japan, as all three actors claimed them. The supply coming to Japan was cut off even though Chinese Customs Agency still allowed to ship any rare earth oxides, rare earths or pure rare earth metals, to Hong Kong, Singapore and other countries. The Beijing activities were seen as significantly worrying in Tokyo, and cut off supplies played a major role in the decision of the Japanese government to release the. 政治大 However China does not立 limit its economic power and influence over countries only to. captain (Glaser 2012).. ‧ 國. 學. Asian region, as Bonnie S. Glaser suggest. Similarly economic tools were used in the incident accompanying the Nobel Price ceremony in 2010, when Nobel Peace Prize was awarded by. ‧. Norwegian Committee to Chinese dissident Liu Xiaob. After the announcement in October. Nat. sit. y. 2010, the Chinese Foreign Ministry warned that the decision would damage relations between. n. al. er. io. Beijing and Oslo, despite the fact that the Nobel Prize Committee is not related to the. i n U. v. Norwegian government in any way (Glaser 2012). In the following months, negotiations on a. Ch. engchi. free trade agreement with Norway were stopped by Chinese side and veterinary inspections were imposed on Norwegian salmon imports. This situation resulted in a serious, 60 percent decrease in imports of salmons from Norway in 2011 (Glaser 2012). In governmental documents and speeches of Chinese officials, BRI is cast in positive terms as an effort to build and deepen positive-sum, mutually beneficial development ties, for some non-authoritative Chinese and many non-Chinese observers, the motives for Chinese to start the BRI and the BRI itself is perceived with concern that unwelcome Chinese spheres of influence might be established, and that initiative is an attempt to strengthen China’s political 8. DOI:10.6814/NCCU201900061.

(17) influence and security situation (Swaine 2015, p. 1). Many authors point out several objectives and potential motives of China for developing BRI, those could be generally divided into a subset of motives – economic, security, and political. This idea supports even Swaine, according to who one quasi-authoritative source involved in BRI study at the Ministry of Foreign Affairs of China identified three major motives for establishing the Belt and Road Initiative. Those are Chinese attempt to speed up its development process in western China regions, what should be beneficial for securing energy resources and transferring strong-point industries; to enhance Asia‘s status as the. 政治大 trust towards China (Swaine 2015, 立 pp. 5-6).. world industrial chain; and to form a community of countries based on friendly relations and. ‧ 國. 學. Yi Ping Huang (2016) on the other hand emphasizes the economic role of the initiative. ‧. that accounts in total to approximately 30% of world GDP. He argues that Belt and Road is at the first place Chinese attempt to sustain its economic growth by exploring new forms and. y. Nat. er. io. sit. opportunities of international economic cooperation. Chinese development pattern that seems to have reached its bottle neck in last few years might be the main reason and motivation for. n. al. Ch. starting this ambitious initiative (Huang 2016, p. 315).. engchi. i n U. v. From trading point of view, BRI can also serve as a way how to redraw the trade routes for Chinese products. To Simeon Djankov (2016) the Belt and Road Initiative appears to be entirely a mercantile endeavor, “designed to fortify China’s economic interests around the world and open business opportunities for Chinese companies enduring a slowdown at home“ (Djankov 2016, p. 6). Djankov claims that as the world’s biggest trading nation, China’s main interest is to reduce the costs of transporting goods and projects already funded under the BRI all report statistics on how much travel time and cost will be reduced as a result of their completion (Djankov 2016, p. 7). Thus the infrastructure development in countries 9. DOI:10.6814/NCCU201900061.

(18) along the Belt and Road corridors may increase growth in their economies and contribute to a growing demand for China’s goods and services, as China’s annual trade with the countries along the Belt and Road Initiative is expected to surpass $2.5 trillion by 2025 (Djankov 2016, p. 7). At the same time as China has risen dramatically its weight and influence in the world affairs, it has generated the deep sense of insecurity and vulnerability, partly caused by dramatically growing dependence on imported energy and maritime commercial lanes. And BRI provides a great opportunity to ensure even greater international significance and prestige. 政治大. while solving the most pressing issues of our own security and economy (Wang 2016, p. 456).. 立. According to Wang, it is not only business and economical concerns behind the Belt. ‧ 國. 學. and Road, but also the fact that the rapid pace of Chinese industrialization heavily relies on. ‧. supplies of energy. This reliance upon imported energy means an enormous challenge for China, and pushed its government to seek new solutions for this problem via Belt and Road. y. Nat. n. er. io. al. sit. Initiative (Wang 2016, p. 460).. i n U. v. Djankov also draws attention to the constant worry of Chinese government and. Ch. engchi. enterprises, the serious energy resources lack. BRI could secure new pipelines leading from Central Asia and Russia, same as new routes for supplies of coal and other energetically important raw materials, as Chinese dependency on oil and coal supplies drastically increased in last two decades (Djankov 2016, p. 7). Huang (2016) also argues that China is by BRI trying to gain greater international influence, and adopt new, more assertive role in international relations, that would also allow China to reshape the current rigid economic and international organizations system (Huang 2016, p. 315). This all might be a complex calculus of China that needs to reshape its own. 10. DOI:10.6814/NCCU201900061.

(19) economical system and reform it. China suffers high overcapacity rates in its own manufacturing and heavy industries, and cannot longer rely on exporting labor-intensive manufacturing goods and investing massively in fixed assets. China also has an extensive amount of new competitive industries, in both industry and service sectors. However, these new industries are not big enough to offset the falling old industries. This substitution of old industries by new ones will continue to push economic growth downward until the new industries are big enough to carry the Chinese economy forward. Thus BRI might offer a great opportunity for Chinese economy in multiple areas from export of its labor, to new less. 政治大 The combination of geopolitical and economic intentions was described also by 立. competitive markets for its young industries (Huang 2016, p. 316).. ‧ 國. 學. Leonard Cheng (2016), who identified the four real objectives for development of the Belt and Road initiative. First one is according to him connected to international markets, when. ‧. China tries by opening up the markets of emerging and developing economies to deal with. Nat. sit. y. China's excess production capacity; inadequate Chinese domestic demand; and bottleneck in. n. al. er. io. further expanding the saturated export markets in developed economies. Second objective is. i n U. v. connected to the possibility of direct investment in these countries involved in BRI, what can. Ch. engchi. secure the supply of resources, especially the natural resource. Third objective is directly linked to the country's global strategy of promoting Renminbi's (RMB) internationalization by using RMB as well as part of excessive foreign reserves. The fourth objective is related to soft-power gaining, when China uses the BRI to strengthen the diplomatic relationship with other countries, and increase the popularity of China among its partners, all based on geopolitical objectives (Cheng 2016, p. 310). Other Western scholars are more skeptical of the possible scope of BRI's geo-political focus, and they consider this motive to be often overstated. For example Christopher Johnson 11. DOI:10.6814/NCCU201900061.

(20) (2016), who stresses the economic role of BRI for China in particular. Diversification of energy sources or securing new ways of transporting raw materials, according to him, does not outweighs the economic aspect of BRI, which is primarily focused on resolving key issues of the Chinese economy (Johnson 2016, p. 7). However, other scholars focus not only the negative use of economic power over another state can be a case in international environment. Economic Statecraft and its potential to be used as a tool of influence however do not include only negative "punishment-like" opportunities for economically strong states. As David Baldwin pointed out, the so called. 政治大 political decision making of a 立 targeted actor. Both positive sanctions and negative sanctions. economic diplomacy includes also the range of positive incentives that can influence the. ‧ 國. 學. can be used to exercise one's power, however positive sanctions are often overlooked in terms of gaining influence (Baldwin 1985, p. 20).. ‧. According to Astrid Papermans, states, rather than forcing other states to do what it. y. Nat. er. io. sit. wants them to do by negative sanctions, can seek to increase their own influence in the concrete state or region by using, on the one hand, economic incentives and promises and, on. n. al. Ch. i n U. v. the other hand, by building up its soft power on the basis of cultural exchange and high-level. engchi. diplomatic dialogue (Papermans 2018, p. 3).. There are various different types of power recognized by academic community. One of them is command or "hard power," with which states get other states to do what they want, while using coercion and inducement. The second type is “soft power” that is characterized by Nye as co-optive and which helps you to make others do want what you want. Soft power is derived mainly from intangible resources like national cohesion, culture, ideology and influence on international institutions (Hwang & Ding 2006, p. 23).. 12. DOI:10.6814/NCCU201900061.

(21) But soft power has changed in context of China. Both Chinese government and many nations influenced by China enunciate broader idea of soft power than Nye did. As Joshua Kurlantzik claims, for the Chinese the soft power means anything out of military and security realm, including not only popular culture and public diplomacy, but also more coercive economic and diplomatic levers like aid, investment and participation in multinational organizations. Beijing has the capacity to do both – it can threaten other nations with negative sanctions if they do not want to help China to achieve its goals, but it can offer a significant rewards if they do (Kurlantzick 2007, pp. 6-8).. 政治大 goals. China now can wield such 立 a soft power, and may use it to remake world. China’s. Kurlantzick also stressed the fact, that Beijing often uses its soft power to assist harder. ‧ 國. 學. policies can make it easier for Chinese actors, from language schools to business people, to have an impact on the ground (Kurlantzick 2007, p. 8). And Belt and Road Initiative is a tool. ‧. that can enable China to do it.. y. Nat. er. io. sit. China appeals to other countries by utilizing soft power in ensuring their participation in the Belt and Road Initiative, which aims on renewing ancient Silk Road through. n. al. Ch. i n U. v. infrastructure, trade, finance and other linkages. Mustafa Yağcı argues that Chinese state. engchi. actively pursues a soft power-oriented economic diplomacy for Belt and Road, while relying on hard power resources for its effectiveness. Furthermore, China takes advantage of the power vacuum in the global economy and embraces a liberal economic vision for the international system in its diplomatic activities emphasizing the importance of globalization, free trade, infrastructure investment, and win-win cooperation in achieving high levels of economic development. While Belt and Road Initiative is constructed mainly in terms of economic development purposes, China’s soft power coming hand in hand with it is likely to. 13. DOI:10.6814/NCCU201900061.

(22) have important political and security implications for the international system (Yağcı 2018, p. 68). China has become a key actor for growth for the global economy and China's economic advantages are daily bringing benefits to many countries around the world. However, it is becoming increasingly clear that economic cooperation and business ties with China include natural risks. According to Bonnie Glaser „countries should keep in mind the increasing tendency of Beijing to use economic means to force the target countries to change their policies in line with Chinese interests. Excessive dependence on China may increase the. 政治大. sensitivity of countries to this pressure” (Glaser 2012).. 立. China also uses a current power vacuums in the international arena to fill them with. ‧ 國. 學. promises of mutual development for all the countries involved in the Belt and Road Initiative.. ‧. According to Yağcı, China embraces a liberal economic vision emphasizing the importance of globalization, free trade, infrastructure investment, and win-win cooperation in achieving high. y. Nat. n. al. er. io. sit. levels of economic development to employ Belt and Road (Yağcı 2018, p. 68).. i n U. v. The New Silk Road how is the Belt and Road Initiative sometimes called, has been. Ch. engchi. recently criticized by some EU member states as China pushes for more investment in Europe. Beijing has been accused of practicing clear economic diplomacy as it has invested significant effort in building a new entry point into Europe through the central and eastern European countries (European Council on Foreign Relations 2016, p. 1). This economic diplomacy can be defined as interstate economic relations manifested through firm-specific activities. While these economic activities are carried out through national firms, Henry Yeung stresses the point that they carry certain distinctive elements of political and diplomatic overtures. These economic-diplomatic activities therefore cannot be. 14. DOI:10.6814/NCCU201900061.

(23) conceptualized as pure market based transactions. Instead, they should be viewed as institutionally mediated interactions between different national states that go beyond profit maximization (Yeung 2004, p. 39). China's motivation for increased levels of presence in the Central European region and in the Czech Republic in recent years is, from an economic point of view and from economic diplomacy point of view, mainly linked to a good balance between labor costs and its quality; geographic and political proximity of the region of Western Europe; and relatively high growth of the economy in the CR. As Richard Turcsányi claims, these factors together create. 政治大 in other EU countries, making立 the market more attractive. On the other hand, many Chinese favorable opportunities to build manufacturing facilities in the region and sell final products. ‧ 國. 學. activities in the region focus on a variety of industries, such as infrastructure and energy that can be also considered as key strategic sectors for state (Turcsányi 2014, p. 3).. ‧. Turcsányi also noted that while apparent economic profitability is a potential. y. Nat. er. io. sit. explanation of Chinese activities, there is plenty of scope for discussion about China's other goals. Closer relations with China within the framework of the Belt and Road Initiative in the. n. al. Ch. i n U. v. Central Europe, and within the 16+1 platform can be perceived as worrying phenomenon for. engchi. many, as since the fall of the communist regime the Czech Republic focused their foreign policies almost predominantly on the West, while trying to escape the East. Now when the CR is interested in developing relations with China, it raises a number of eyebrows not only among western EU colleagues, who are not invited to participate in China's plans (Turcsányi 2014, p. 1). Among the EU institutions, there are concerns, in particular, of the institutionalization of the 16 + 1 cooperation platform, which already consists of a permanent secretariat and several associations and organizations. Developing cooperation with China is also seen in the 15. DOI:10.6814/NCCU201900061.

(24) EU as a sign of China's ability to "divide and rule" Europe (European Council on Foreign Relations 2016, p. 3). Statements like “China is buying the world”, that are often present in international media, are powerful and emotive. A large number of the citizens of high-income countries appear to believe that this is the reality of China’s relationship to the world (Nolan 2012, p. 108). However these statements and assumptions do not have to be necessary truth, above all, as the topic of China's presence in the EU is often subject to significant polarization and securitization within the media and academia sphere. China might have multiple motives for. 政治大 what it wants them to do, might 立seek to increase its influence in the region by using, on the. launching Belt and Road Initiative, and China, rather than forcing European countries to do. ‧ 國. 學. one hand, economic incentives and promises and, on the other hand, by building up its soft power on the basis of cultural exchange and high-level diplomatic dialogue (Papermans 2018,. io. al. er. Research Method and Theory. sit. y. Nat. 1.4. ‧. p. 3).. v i n C h and analysisUof Chinese influence in the Czech implementation of Belt and Road Initiative engchi n. With regard to the focus of the research and its objective, i.e. the analysis of. Republic, the work will be constructed as qualitative research. Qualitative research as such seeks to grasp the subject of study in its uniqueness and natural environment, while the primary objective is to achieve an understanding of the phenomenon under study in a historical and cultural context (Yin 2014, p. 108). The case study is the most appropriate choice for research, where we are interested in "why" and "how" questions, but we also have no influence on the development of events. This is a detailed analysis of the case chosen as a subject of research where the subject is described with respect to context specifics and attempts to provide a comprehensive description of the 16. DOI:10.6814/NCCU201900061.

(25) present but not yet described phenomenon (Yin 2014, p. 108). The insights arising from casebased theory building research can be used as hypotheses or propositions in further research. Case study research therefore plays an important role in advancing a field’s body of knowledge (Merriam 2009, pp. 38-55). Specifically, this thesis will be conducted as a single case study. Single case studies deal with a concentrated example or case of a particular phenomenon. Unlike multiple-case studies, however, it examines only one case in depth and performs a detailed analysis. A single-case study also seeks to explain an occurrence of a phenomenon and to examine its. 政治大 parallel demonstration of the theory, 立 it is to a large extent aimed at examining the empirical. occurrence levels in selected case (Drulák 2007, pp. 62-65). If a case study focuses on a. ‧ 國. 學. validity of the chosen theory. Such study consciously chooses case that demonstrates the value of theory and helps further illustrate its relevance. Parallel demonstration thus tries to. ‧. prove that the theory appears to be persuasive when applied to one concrete case. When using. Nat. sit. y. this type of a case study, the theoretical models and hypotheses are first specified and then. n. al. er. io. confronted with empirical reality (Drulák 2007, pp. 62-65).. Ch. i n U. v. As Yin points out, the key aspect of a successful grasp of the case study is to establish. engchi. a list of basic topics and aspects that will be studied within that research (Yin 2014, p. 108). Therefore, when examining the role of China in the Czech Republic, this thesis will focus on describing the main characteristics of implementation of the Belt and Road Initiative in the CR. At the same time, country-specific knowledge about CR relationship with China will be gathered, and will be also analyzed from the perspective of the possible use of economic tools to acquire political influence and increase of China's soft power in the region. The assumption of the possible use of economic ties to gaining influence stems from the liberal theory of international relations through which this case study will be looked at. 17. DOI:10.6814/NCCU201900061.

(26) For Neoliberalism the international actor's interests not only include power but also encompass the economic and cultural effects of an action as well. International actors’ interactions can be viewed as non-zero-sum game which proposes that through use of comparative advantage, all states who engage in peaceful relations and trade can expand wealth (Keohane & Nye 1989, pp. 23-24). This differs from theories that employ relative gain, which seeks to describe the actions of states only in respect to power balances and without regard to other factors, such as economics. Relative gain is related to zero-sum game, which states that wealth cannot be expanded and the only way a state can become richer is to take. 政治大 However according to立 Liberalism cooperation can lead to absolute gains, because. wealth from another state (Waltz 1979, pp. 102-128).. ‧ 國. 學. absolute gains are what international actors look at in determining their interests. Absolute gains also weighing out total effects of a decision on the state or organization. Sovereign. ‧. states also cannot be counted as the only central actors in world politics, because individuals,. Nat. sit. y. interest groups, and intergovernmental and non-governmental organizations all have an. n. al. er. io. influence on states. And since the consequences of using military power often outweigh the. i n U. v. benefits, states have realized the potential of engaging in cooperation (Keohane & Nye 1989, pp. 23-26).. Ch. engchi. Any form of cooperation further fosters interdependence and increases ties and contacts between individual actors. This can be applied on economically driven cooperation as well, as gaining influence through the economic cooperation can be explained by economic interdependence, which is the sensitivity of economic activity (foreign direct investment (FDI) and international transactions such as trade — imports and exports) between multiple nations in relation to economic developments within those nations. Intense economic activity results in an increased number of contacts, ties and greater influence among the nations that engage 18. DOI:10.6814/NCCU201900061.

(27) in such economic activity. Economic interdependence thus reduces the likelihood of conflict as one economy becomes more connected with another (Cooper 2011, p. 159). As Chinese trade interaction with the rest of the world accounts for nearly 40 percent of its GDP 4, China understands importance of economic stability and is aware of the fact that conflict would undermine this economic relationships and result in universal losses and repercussions (The Global Economy 2018a, The Global Economy 2018b). Also nowadays China is an active member in a wide range of both regional and international institutions and organizations. China as a proactive member contributes to the G20, The Asia Pacific. 政治大 Cooperation Organization and立 The BRICS. Through China’s participation in international Economic Cooperation (APEC), The United Nations Security Council, the Shanghai. ‧ 國. 學. organizations, the cooperation is further encouraged, ensuring all participants are awarded a share of winnings, meaning that the probability of conflict among participants decreases.. ‧. President Xi himself added that there is a further need to “seek common ground on issues of. Nat. sit. y. common interests in pursuit of win–win progress” (The Wall Street Journal 2015), which. n. al. er. io. supports the Liberalism interpretation.. 1.5. Outline of the Thesis. Ch. engchi. i n U. v. The first part of this thesis – Introduction – deals with the introduction to the whole issue and clarification of the background of this phenomenon. Motivation for research and research methods will be presented as well as main and additional research questions. In the next part of the introductory chapter, besides the main argument, the organization of the whole thesis or the theoretical approach applied to the topic will be discussed. An essential. 4. In 2016 the total amount of exports reached 19.76% of China‘s GDP, and total amount of imports for 2016 were 18.05%, what in total counts for 37. 81% of China‘s GDP in 2016 (The Global Economy 2018a, The Global Economy 2018b).. 19. DOI:10.6814/NCCU201900061.

(28) part of the first chapter will be a literature review that will aim at summing up the existing knowledge and research done in the academic community focused on Belt and Road in general but also in the Czech Republic, and the possible implications of this initiative for specific regions. The next part of this thesis – the second chapter – deals with the explanation of the Belt and Road Initiative, as well as with theoretical concepts that are related to this initiative. General history and background of the Belt and Road will be explained as this chapter will serve as the basis for a good understanding of the whole text of this work.. 政治大. In the third chapter, the work begins to address the implementation of the Belt and. 立. Road Initiative in Europe as whole. The implementation and results of BRI in Europe will be. ‧ 國. 學. described in the wider context, where the European Union will serve as a broader general. ‧. framework. The 16 + 1 platform and its significance for BRI and Chinese relations with the countries participating in the platform, including the Czech Republic, will also be described in. y. Nat. n. er. io. al. sit. the light of the situation in the Central European region.. i n U. v. In the fourth chapter we move our focus to the Czech Republic, where will be the. Ch. engchi. implementation of BRI mapped individually. The aim is to find out how the contacts of the CR with China are taking place within this initiative, with a primary focus on the economic and political aspects, such as the frequency of inter-state visits, the volume of mutual trade, or the volume of Chinese investments within the time frame since the launch of the Belt and Road Initiative. The fifth chapter is then focused on the implications of restoring the relationship between China and the Czech Republic, where the political implications, national and international, and the possible increase in China's influence in the Czech Republic will be of. 20. DOI:10.6814/NCCU201900061.

(29) interest. The fifth chapter will also focus on China's soft power in the CR, where the aim will be to find out what is the opinion about China in political circles and the general public of the CR. The goal will be to find out whether there is a possible increase in political sympathy in the country connected with the launch of the Belt and Road implementation or, possibly, with the growth of mutual trade and new economic opportunities coming to the CR. The final part of this thesis will be a part of the Conclusion that further compiles and summarize all the research findings from previous chapters, but will also discuss the possible causes and preconditions for the findings. This section will also provide recommendations for. 政治大. further research and possible future implications of the current situation.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 21. DOI:10.6814/NCCU201900061.

(30) 2. The Belt and Road Initiative The Belt and Road Initiative (also BRI) has clearly become a major foreign and economic policy hallmark of the Xi Jinping government and is consistently supported as such by all means. Following the historical concept of the Silk Road, BRI covers extended geographic areas, focusing on land and marine ways of connecting China and other continents. Under specified conditions, subjects and principles of cooperation, BRI offers considerable potential in several economic, political, cultural, and strategic realms; but it also presents many uncertainties and potential concerns. The motivation for launching this ambitious. 政治大. project with significant potential outcomes was clearly stated by Chinese government;. 立. however there still remains room for speculations about China's real motives and intentions to. ‧ 國. 學. carry out this costly project.. ‧. 2.1. Background and The Scope of the Belt and Road Initiative. Nat. sit. y. During the 2013 state visit to Kazakhstan, when President Xi made a proposal to. n. al. er. io. create the Silk Road Economic Belt – a new form of economic cooperation, and later in the. i n U. v. same year when the maritime - “The 21st Century Maritime Silk Road” - form of previously. Ch. engchi. proposed Belt cooperation was introduced in Indonesia, the biggest of Chinese projects, named One Belt, One Road (later Belt and Road Initiative), opened the new era of Chinese ambitious and pro-active foreign policy (Huang 2016, p. 314). As the official Action Plan of China’s State Council states, the Belt and Road Initiative follows up the historical Silk Road, that more than two millennia ago, in form of several routes of trade and cultural exchanges linked the major civilizations of Asia, Europe and Africa. The spirit of Silk Road – peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit－promoted the progress of human civilization, and 22. DOI:10.6814/NCCU201900061.

(31) contributed greatly to the prosperity and development of the countries along the Silk Road (State Council The People’s Republic of China 2015). According to Chinese State Council, it is more than important to embrace the spirit of historical Silk Road, while facing the weak recovery of global economic and other complex international situations like uneven global development. BRI thus represents a modern times Silk Road, a systematic project that carries various opportunities for cooperation and exchanges in all fields, which should be jointly built through consultation to meet the interests of all, and efforts should be made to integrate the development strategies of the countries. 政治大. along the Belt and Road (State Council The People’s Republic of China 2015).. 立. BRI is a step towards the trend of multipolar world, economic globalization, cultural. ‧ 國. 學. diversity and development of technologies, that is based on regional cooperation, free trade. ‧. regime and open environment. It aims at promoting integration of countries included in the initiative, to accomplish a more equal allocation of resources, and jointly create an open,. y. Nat. er. io. sit. inclusive and balanced regional economic cooperation architecture that benefits all. At the same time, BRI will enable China to continue its opening-up to world, strengthening its. n. al. Ch. i n U. v. mutually beneficial cooperation with other nations across Asia, Europe, and Africa (State. engchi. Council The People’s Republic of China 2015).. In the background of BRI is also a new approach of China to the concepts of common security and multilateralism, as China quickly becomes a full member of the international community. This, according to Sudeep Kumar, led China to redefine national interests and strategies, newly focusing on the peaceful growth of the world. The new concept of development emphasizes harmonious world and harmonious society that cannot be achieved without peaceful development. This concept revolves around multilateralism for common. 23. DOI:10.6814/NCCU201900061.

(32) security, mutual cooperation for common prosperity, and spirit of inclusiveness for harmonious world (Kumar 2018, p. 5). Two concepts – The Silk Road Economic Belt and Maritime Silk Road – envision the creation of a highly integrated, cooperative, and mutually beneficial set of maritime and landbased economic corridors linking European and Asian markets. According to Michael Swaine, quasi-authoritative Chinese source described BRI as the most significant and far-reaching strategy China has ever developed (Swaine 2015, p. 2). This statement can be supported by the available information about initiative, according to which BRI should cover around 60. 政治大 economic aggregate of about $立 21 trillion (Swaine 2015, pp. 2-3).. developed and developing countries with total population of over 4 billion people, and an. ‧ 國. 學. The importance of the initiative is also evidenced by the creation of a special group of. ‧. supervisors for BRI implementation in practice, which was set up in March 2015. This group has the task of coordinating the BRI processes, and its activities fall under the Chinese most. y. Nat. er. io. sit. important economic planning organ – National Development Reform Commission (NDRC). A project of this magnitude and importance also required the provision of adequate financial. n. al. Ch. i n U. v. resources and its supervision, for what are in charge of many mechanisms created directly for. engchi. BRI, such as the Silk Road Fund or the Asia Infrastructure Investment Bank (also AIIB) (Swaine 2015, p. 3). Geographically, BRI was originally designed to pay more attention to Russia, Central Asian, and South Asian regions, while Middle East, and East African countries were supposed to have less priority (Swaine 2015, p. 6). However, in 2019 there are three main routes for the “Belt” part of the initiative. The first route leads from China through Central Asia and Russia to Europe (Baltic Sea). The second route is from China through Central Asia and West Asia to the Persian Gulf and the Mediterranean region. And the third route leads from China through 24. DOI:10.6814/NCCU201900061.

(33) Southeast Asia and South Asia to the Indian Ocean. Major cities along the routes serve as important economic and business nodes, and also as platforms to create a new Eurasian land bridge and the economic cooperation corridors (Huang 2016, p. 318). The Maritime Silk “Road” runs from China's coastal ports through the South China Sea to the Indian Ocean, extending to Africa and Europe; and also from China's coastal ports through the South China Sea to the Pacific Ocean, while it relies on major ports along the way, as centres for trade and cooperation (Huang 2016, p. 318). Map 2.1 The Geographic Representation of the Belt and Road Initiative. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Source: The Nerve Africa. 2018. "China‘s Belt and Road Initiative is already getting massive African support before FOCAC starts,"The Nerve Africa, (September 2, 2018). Retrieved from: https://thenerveafrica.com/21723/chinas-belt-and-road-initiative-is-already-getting-massive-african-supportbefore-focac-starts/. 25. DOI:10.6814/NCCU201900061.

(34) 2.2. Principles of the Belt and Road Initiative The initiative itself is based on existing international forms of cooperation and its. principles are thus in a line with the UN Charter and other internationally recognized instruments of cooperation. The basis are the five principles of the international mutual peaceful coexistence of states, which include the respect of individual participating states towards territorial integrity and sovereignty; rule of non-interference within the state affairs of other countries; the principle of non-aggression among participants; the principle of mutual and equivalent benefits; and mutual peaceful coexistence (State Council The People’s Republic of China 2015).. 立. 政治大. From the very beginning, BRI is open to all countries, international and regional. ‧ 國. 學. organizations that are interested in collaborating. It builds on respect and tolerance among nations, and supports dialogues for seeking common understanding while respecting. ‧. possibility of different opinions and paths of individual participants. The aim is to promote. y. Nat. io. sit. mutual benefits, win-win cooperation and accommodate the interests and concerns of all. n. al. er. parties involved. The market operation is followed in BRI, international norms and market. Ch. i n U. v. rules are abided, as well as roles of governments of individual countries in resource allocation. engchi. (State Council The People’s Republic of China 2015).. BRI also respects the independent choice of partner countries, by applying the principle of three “togethers”. The first ‘together’ is discussion among the parties concerned to identify projects of cooperation for mutual benefit. The second is working together to realize the projects on the basis of common interest. And the third is enjoying together the benefits and results of common achievements (Swaine 2015, p. 7).. 26. DOI:10.6814/NCCU201900061.

(35) 2.3. Cooperation Priorities and Mechanisms under the Belt and. Road Initiative 2.3.1 Cooperation Priorities BRI states its five major goals as: policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds. Policy coordination represents an important aspect of implementation of all initiative. Within the framework of country policy coordination, intergovernmental cooperation and macroeconomic exchange should be promoted. Communication mechanisms need to be improved to broaden common. 政治大. interests, increase mutual political confidence and achieve consensus. Belt and Road countries. 立. will still have full coordination of their state strategies and economic development policies. ‧ 國. 學. under their own authority without the intervention of other participating countries, but this does not exclude their ability to create regional cooperation plans and methods, to negotiate. ‧. on cooperation issues and to jointly provide political support for practical cooperation and. Nat. er. io. sit. y. large-scale projects (State Council The People’s Republic of China 2015). Facilities connectivity is the basis for implementing the initiative. By respecting. al. n. v i n mutual sovereignty and security interests, C h BRI countries Ushould improve the connectivity of engchi. their infrastructures and technical systems, jointly improve and expedite the construction of international long distance passes, and establish an infrastructure network linking all subregions in Asia and between Asia, Europe and Africa. Parallel to this, consideration should be given to the importance of building green and low-carbon infrastructure and taking into account possible impacts on the climate due to building these projects (State Council The People’s Republic of China 2015). Also the connectivity of energy infrastructure should be improved to ensure the security of oil and gas pipelines and other transport routes, crossborder power supply networks and power-transmission routes should be build, and 27. DOI:10.6814/NCCU201900061.

(36) cooperation in regional power upgrading and modernization should be one of the focuses. The cross-border communication should be strengthened by the construction of cross-border optical cables and other communications networks, improving international communications connectivity, and creating Information Silk Road (State Council The People’s Republic of China 2015). Investment and business cooperation are one of the major engines and goals of the BRI. Facilitating mutual trade, boosting investment, removing barriers to international trade, and building a business-friendly environment in all participating countries is a major focus on. 政治大 transparency of technical trade 立measures should be improved to further enhance trade. unimpeded trade. Non-tariff barriers should be lowered in order to promote mutual trade, and. ‧ 國. 學. liberalization and facilitation. Also areas as agriculture, forestry, animal husbandry and fisheries, deep-sea fishing, aquatic product processing, seawater desalination, marine bio-. ‧. pharmacy, ocean engineering technology, environmental protection industries, marine tourism. Nat. sit. y. and others should receive attention. Cooperation in the exploration of coal, oil, gas, metal. n. al. er. io. minerals and other energy sources should be strengthen, as well as improvement of other. i n U. v. sources of energy like hydro power, nuclear power, and renewable energy resources. State. Ch. engchi. Council of China also stated that companies from all countries are welcomed to invest in China, while Chinese enterprises will be encouraged to participate in infrastructure construction and to make industrial investments in other countries participating in BRI (State Council The People’s Republic of China 2015). Financial cooperation is perceived with lots of importance in BRI, that is why financial cooperation should be deepened among participating countries, and more efforts in building a currency stability system, investment and financing system, and credit information system in Asia should be made. The scope and scale of bilateral currency swap and settlement 28. DOI:10.6814/NCCU201900061.

(37) with other countries along the Belt and Road should be widened, while joint efforts should be made to establish the Asian Infrastructure Investment Bank and BRICS New Development Bank (State Council The People’s Republic of China 2015). An equally important dimension of BRI is an area of interpersonal contacts and exchanges where the spirit of friendly co-operation is to play a leading role. More frequent and friendlier communication between parliaments, governmental and non-governmental organizations should be one of the means to consolidate good relations. People-to-people bond links should be supported by the development of academic cooperation and exchanges,. 政治大 scholarships, mutual respect and 立recognition, for example, by organizing various festivals or. professional exchanges, or media cooperation. The role of education should be supported by. ‧ 國. 學. by promoting and developing tourism (State Council The People’s Republic of China 2015).. ‧. In particular, parts of the BRI focusing on people-to-people exchanges and contacts have not yet received much attention from an international perspective, even though China. y. Nat. er. io. sit. considers culture and soft power to be one of the pillars of its strategy for achieving influence and recognition abroad. Especially the Silk Road Narrative can be used very well from a. n. al. Ch. i n U. v. political and strategic point of view. It represents a story of connectivity that enables China to. engchi. strategically respond to the shifting geopolitics of the region and use the past as a means of building a competitive advantage and extending the Sino-centric economy network. BRI represents a soft power strategy that is under the guise economic and construction projects hidden behind. This does not, however, mean that people-to-people part of the BRI is less important for the Chinese government (Winter 2016, pp. 1-5). It should be also noted that BRI, does not serve as a foreign development assistance, and it was not designed in an attempt to establish a multinational organization, or a union of states, as for example in the case of the European Union. Initiative focuses upon creating a 29. DOI:10.6814/NCCU201900061.

(38) shared transport links, while leaving the production structure in each country untouched. It displays a greater sensitivity to national sovereignty, in that sense; it can be seen as Chinesestyle integration 5.. 2.3.2 Cooperation Mechanisms of Belt and Road Initiative In terms of cooperation mechanisms, BRI attaches importance to three areas – bilateral and multilateral, and to international forums. Bilateral cooperation should be strengthened through bilateral consultations and program or pilot projects. Existing bilateral cooperation mechanisms such as the joint committee, the coordination committee and others should be. 政治大. also used (State Council The People’s Republic of China 2015).. 立. ‧ 國. 學. Multilateral cooperation mechanisms should be enhanced by making maximal use of existing platforms such as the Shanghai Cooperation Organization (SCO), ASEAN Plus. ‧. China (10+1), Asia-Pacific Economic Cooperation (APEC), Asia-Europe Meeting (ASEM),. y. sit. io. n. al. er. 2015).. Nat. Asia Cooperation Dialogue (ACD), and others (State Council The People’s Republic of China. i n U. v. A constructive role should be played also by international forums. Existing. Ch. engchi. mechanisms of cooperation and exhibitions at regional and sub-regional levels hosted by countries along the Belt and Road can be used for example Boao Forum for Asia, ChinaASEAN Expo, China-Eurasia Expo, Euro-Asia Economic Forum, China International Fair for. 5 The distinction between current Asian and for example European styles of regional integration was described by Peter Ferdinand (2016), who stresses the differences, when European style of integration focuses upon integration, which reflects European states’ higher level of economic development, while Asian integration, with its greater diversity, puts a higher priority on connectivity and joint ‘docking’ of nation-states still jealous of their sovereignty (Ferdinand 2016, p. 950).. 30. DOI:10.6814/NCCU201900061.

(39) Investment and Trade or others. Chinese State council also proposed the establishment of international summit forum for Belt and Road Initiative (State Council The People’s Republic of China 2015).. 2.4. Conclusion Belt and Road is a globally significant initiative building on the historically important. concept of Silk Road connecting nations via trade, cultural and economic exchanges. BRI has the ability to mitigate global development inequalities and implement many projects to improve the living conditions of a large number of people living in the areas included in the. 政治大. initiative. Under the open and equal conditions for cooperation, all countries are welcomed to. 立. participate in BRI that follows international principles for cooperation and peaceful. ‧ 國. 學. coexistence of states, what should further lead to increased interdependence and increased number of cross-border contacts.. ‧. sit. y. Nat. Whether it is because of the economic potential for BRI projects or because of. io. er. opportunities for mutual trade relations development, the CE countries appear to be newly included in China's category of countries of increased interest and attention. As well as. al. n. v i n C hin hand with BRIUitself, many questions for both the potential risks and benefits comes hand engchi public and institutions of the EU or the Czech Republic remains. The shift in China's political. attitude towards CE region and its new motivation for cooperation may still be the subject of discussions as the BRI platform gain on importance.. 31. DOI:10.6814/NCCU201900061.

(40) 3 The Belt and Road Initiative in Europe If we want to understand implications and impacts of BRI in the Czech Republic, it is very important to also present the overall background in the context of individual international groupings, of which the Czech Republic is a member. As a member of the European Union (hereinafter the EU), the Czech Republic is committed to EU policies and is governed by EU regulations, which may also affect the Czech position towards China. Compared to the EU, platform 16 + 1 has a very loose structure and no official common policy or goal, but rather it works as a group of states using a platform to facilitate contact with the Chinese side. In the. 政治大 of political inspiration, where a sort of historical or cultural proximity brings the member 立. case of another group, the regional association Visegrad Group (also V4), it is rather a source. ‧ 國. 學. states closer to the Czech Republic. In V4 case, however, individual states have no influence on the official policy of their neighbors and cannot interfere in state affairs, but it still may be. ‧. interesting to compare countries with very similar historical and cultural heritage and their. sit. y. Nat. positions towards China. This chapter will introduce the BRI process in Europe, from the. io. al. er. point of view of the European Union, the 16 + 1 initiative, as well as the Visegrad Group,. v. n. which all are important for the geopolitical inclusion of the Czech Republic.. 3.1. Ch. i. e. i n U. ngch EU – China Relations and Implementation of BRI As the gradual extension of the BRI, which originally targeted the peripheral regions. of China, individual states that were not originally identified as major objects of interest are gradually voluntarily joining the initiative, just like the European Union itself. In addition to the 65 countries in Asia, Africa, Middle East and Europe, which are already part of the Chinese initiative, the European Commission has signed a Memorandum of Understanding on the so-called EU-China Connectivity Platform, created in June 2015, coordinating the. 32. DOI:10.6814/NCCU201900061.