The Taipei Economic and Cultural Office in the Czech Republic was the ROC's second representative office to set up in Central and Eastern Europe, and Hsinping Hsieh has served as the ROC representative there since it opened in 1992. In a recent interview with the Free China Review in Prague, Hsieh discussed the current status of ROC-Czech relations.
FCR: How effective has your office been in building relationships between the ROC and the Czech Republic?
Hsinping Hsieh (謝新平): Our representative office was established five and a half years ago. We really had to start from scratch, because we didn't know anyone here. Besides making friends and building local channels for communication with both the government and the private sector, we also thought it would be useful for the Czech Republic to open a representative office in Taipei. The government did so in 1993, which made it the first country in Central Europe to set up a representative office in Taipei. These offices have greatly facilitated contacts between our countries. Access to economic and commercial information is much easier, and tourism both ways has increased substantially.
From the beginning, our office has urged high-ranking officials from both countries to exchange visits. Many ROC ministers--economic affairs, transportation, and education--as well as cultural affairs officials, have come here. The highest-profile visit, was that by Premier Lien Chan in 1995, when he met with President Havel. Moreover many Czech ministers, parliamentarians, and other senior officials have visited Taiwan. The steady flow back and forth of high-ranking visitors stimulates healthy interaction between our governments.
What is the current status of ROC-Czech trade and economic relations?
For the last few years, two-way trade has averaged between US$160 and $170 million. Taiwan imports a great deal of machinery, glass, and chemical materials and products. According to ROC statistics, trade is fairly well balanced, but Czech statistics indicate an excess of imports on their side. There is a lot of indirect trade, however, so the Czech statistics may include made-in-Taiwan products imported through Austria and Germany.
Compared with other major investing countries, ROC investment in the Czech Republic is still relatively insignificant. Taiwan has only made a few investments here and there: several trading companies and a computer company with an assembly line here keep in touch with our office. The biggest Taiwanese company here is Textonia [a textiles manufacturer], which invested US$40 million in Hronov, a northern city near the Polish border. Even though the company headquarters in Taipei made the investment decision and then sent the managerial staff here, the investment funds came from a subsidiary company in Malaysia, so Czech statistics count it as it a Malaysian investment.
What other kinds of relations has your office established?
The Czech Republic has very strong infrastructural industry, and is particularly advanced in biotechnology and aerospace. Contact lenses were invented by a Czech. We have tried to link reputable institutes and companies from both countries to help them cooperate.
Technological exchanges have already brought results. The Czech Academy of Sciences has signed several agreements with research institutes in Taiwan, including ITRI [the Industrial Technology Research Institute]. Educational exchanges have also increased. The ROC Ministry of Education has sent fifty computers here to help boost computer education programs. We've also set up a Sinological forum at Charles University; scholars from Taiwan come here to give lectures on Chinese topics, and some of them stay for a semester or more to offer full courses. We also have exchange students on scholarships between Charles University and National Taiwan University. Cultural exchanges are also very popular--Czech performing groups and artists frequently perform in Taiwan.
Taiwan has included the Czech Republic in its list of countries with favorable tariff treatment. Czech companies are allowed to bid on public construction projects that are open to international bidders. In 1993, the Czech railway construction company ZSP won the bid to build the tracks for the Hsintien line of Taipei's mass rapid transit system. Taiwan has also allowed imports of Czech automobiles, although there is a quota.
The number of tourists from Taiwan has risen steadily. Each year, the Czech representative office in Taipei processes more than 7,000, but that is only part of the picture. Quite a few Taiwanese come here through other European countries. So far, there has not been much Czech travel to Taiwan, except for businesspeople. Approximately 1,000 persons per year apply for visas through our office.
What are some of your office's priorities?
Some of the Czech officials I've talked with are disappointed that Taiwan has not yet made any substantial investments here. And those Czech companies that have still failed to win contracts in Taiwan's many public construction projects are bound to be upset. As a result, our job isn't all plain sailing.
P.K. Chiang, our former minister of economic affairs, led a delegation of over 100 businessmen on an observation trip here in 1995. Our two countries even talked about establishing a special indust rial park for Taiwan businesses. But it seemed that our businesspeople had reservations about investing in such an unfamiliar area. Of course, our government can't force the private sector to invest in any given country.
Are you optimistic about the prospects for future Taiwanese investment here?
Before World War II, Czechoslovakia had a higher GDP than Germany, and when the Communists took over the country, they tried to crush the democracy that had taken root here. Despite the years under Soviet domination, the spirit of democracy remained. Since late 1989, when the country started democratization, the political situation has been very stable. The Czech currency is devaluing somewhat, but still relatively stable, and the unemployment rate is only 3 percent.
According to official statistics, around 100 million tourists visit the Czech Republic each year, mostly from neighboring countries. So the tourism industry is booming here, which also provides many job opportunities. Prague ha s almost zero unemployment. In fact, most people who know foreign languages, especially English, tend to have a second job. As long as its political situation remains stable, the Czech economy should strengthen, which should make it a more attractive place to invest.
Moreover, labor costs are comparatively low and the quality of labor is comparatively high. The country is already part of NATO, and it will soon join the European Union. In the long term, this is a good place to invest. This is an extremely self-sufficient country. Although its market isn't as large as Poland's, the Czech Republic can offer many things that Taiwan needsfor instance, the products from its heavy industry and its technology-intensive expertise in basic sciences.
When any country seeks to establish a relationship with another, the health and compatibility of the economies are important factors. Ours is heading toward becoming a high-tech industrial economy. Because the Czech Republic is emphasizing the need for office automation and computerization, the people here realize that Taiwan has a lot to offer because it is a top producer globally of computer products.
A minister once asked me why Acer or other computer firms didn't come here and set up plants. Based on my years of experience, I think such companies should look into the very good opportunities in this country for Taiwan investment. If our businesspeople don't act fast enough, they will lose out. And if they do come, they should make profits, and the links between our two countries should also improve. Of course, in a free country like ours, the government can't tell the private sector to make overseas investments--we can only point out opportunities.
We already have a firm foundation of relations between our two countries. My office has close and cordial contacts with the offices of President Havel, the premier, and various ministries. People here have a favorable impression of Taiwanthey know about our strong market economy and our democratizatio n. If we can make some substantial contribution to their economy, such as more investment, I think the relationship between our two countries will certainly continue to grow.
The Czech government is also enthusiastic, but frankly it receives a lot of pressure from Beijing to adhere to the PRC version of the One China policy, which tries to isolate the ROC and prevent it from establishing both formal and informal international relations. Despite this pressure, President Havel has been very supportive of our efforts to build strong bonds between our two nations. Both sides will have to continue working to bypass such obstacles and build upon our mutual interests.
--interview by Eugenia Yun