Move would deepen economic ties between EU and China

Chinese citizens should get visa-free access to the European Union, putting an end to often-lengthy application procedures, says Czech President Milos Zeman.

Zeman, the head of one of the EU's 28 member states who was concluding a visit to China, said easier entry was important for developing deeper relations between the continent and the world's second-largest economy.

He says there is a need for a "step by step" approach but he was confident of a successful outcome that would transform travel for millions of Chinese tourists and businesspeople.

"I am 70 years old and I am still optimistic. I believe the full cancellation of the visa will be reached in my lifetime."

Chinese business leaders have been particularly critical ofimmigration procedures and visa arrangements when entering the Czech Republic.

Zeman, who was speaking in the Presidential Suite at the St Regis Hotel in Beijing, says he would like to see an extension in the validity of the EU business visa from five to 10 years as a key stage in the removal of any visa requirement.

"I think for entrepreneurs 10 years would be better but this must be the common attitude of the EU. Meanwhile, the Czech Republic will try to reach such a goal."

The president, on what was the first official visit for a Czech head of state for 10 years, met Chinese Premier Li Keqiang and dined with President Xi Jinping at the Great Hall of the People on Oct 27.

One of the aims of the trip was to deepen economic ties between the two countries, building on $17.3 billion of trade last year, according to the Czech Republic's own figures, accounting for 5.7 percent of its trade.

The visit resulted in a number of major announcements. The Bank of China will soon open a branch in Prague to facilitate bilateral trade and investment.

The Czech Republic is also to open its fourth diplomatic residence in China with a new consulate general in Chengdu next year, adding to existing ones in Shanghai and Hong Kong, and its embassy in Beijing.

One of the more unusual cooperation agreements will result in a panda appearing in a popular Czech children's cartoon series that features Krtek, a red-nosed mole. This involves a tie-up between China International Television Corporation and the Czech Little Mole Cartoon company.

However, Zeman's call for a visa-free Europe for the Chinese, will serve to heighten the debate about immigration in Europe.

It comes at a time when some EU countries such as the UK are calling for tightening up on migration even within the borders of the economic union.

This is seen as going against one of the founding principles of the union, which was to allow free movement of labor.

Some in the UK want to adapt a Australian-style points system which may give preference to wealthy Chinese ahead of Eastern European migrants such as Czechs.

"The UK has a different position," Zeman says. "I am against any restriction of migration, with one exemption relating to the risk of migration from Islamic countries because of radical Islamism."

Zeman, whose visit marked the 65th anniversary of relations between former Czechoslovakia (out of which the Czech Republic was split in 1993) and China, said he wanted to see a restoration and improvement in ties.

They had been damaged by the previous Czech administration's position on China's Tibet autonomous region and Taiwan.

"It was all political because the previous right wing government was inclined to communication with the Dalai Lama," he says. "Our government has made clear we do not respect any exiled government in relation to Tibet. We also fully respect the integrity of China, including Taiwan."

Zeman, a veteran politician who was founder of the Party of Civic Rights in 2009, became president at the beginning of last year.

He last came to China when he was prime minister during the presidency of the late Vaclav Havel, the towering Czech statesman and playwright who still casts a big shadow on the country's politics.

Now the third president in Prague Castle, Zeman wants to see the development of a new silk route linking China with Central and Eastern European countries.

China has been keen to foster "16 + 1 cooperation" between itself and the 16 CEE countries, although there have been questions about the cohesiveness of the latter grouping with the huge diversity in culture and size between many of the countries.

"I welcome the initiative of the former prime minister (Wen Jiabao) of "16 + 1". I think it is better to say '1 + 16'," he says.

"There are different attitudes toward such cooperation among these countries, some of which have their own specific problems and transformations. I think the Czech Republic is prepared and I do not want to criticize our neighbors."

Zeman says one of the problems in developing a new trade route is the absence of direct flights from the Czech Republic to China, either by Chinese state-owned airlines or Czech carriers.

He was disappointed in not being able to reach an agreement on his visit but now expects one to be reached next spring when Czech Prime Minister Bohuslav Sobotka is due to visit to China.

"I am for practical steps and not only for polite phrases. The new big Silk Road has not only to be by camels but by planes.

"That is one of the conditions to increase people-to-people exchanges between students, entrepreneurs, tourists and so on."

Zeman says he wants to see more substantial Chinese investment in his country. Only 0.3 percent of foreign direct investment in the Czech Republic is from China with the Netherlands, Germany and Austria being by far the biggest contributors.

"The level of 0.3 percent might be criticized. It is not only a sad fact; it is also a challenge for increasing and doing something like a big jump in the real sense of a big jump," he says.

He wants to see Chinese investment, in particular, in research and development, taking advantage of the lower costs of highly skilled Czech scientists and engineers. This could involve setting up Chinese facilities in the country.

"Our comparative advantage as far as Germany is concerned is that we have the same qualified manpower but a little cheaper."

One of the ways of developing greater ties is building connections between Czech regions and Chinese provinces, making it easier for a small country like the Czech Republic with just 10.5 million people to deal with such a large one as China.

This thinking was behind the setting up of a new consulate general in Chengdu, he says.

Zeman met a number of China's provincial heads and governors at the Chinese Investment Forum held in Prague Castle last November.

His delegation this time also included the governors of both Central and South Bohemia.

"I have studied the document of the Fourth Plenary Session (of the 18th Central Committee of the Communist Party of China held in Beijing from Oct 20 to 22) which emphasizes decentralization to the provinces and I am very happy there is now successful cooperation between the Czech regions and Chinese provinces," he said.

Czech companies have also had an impact in China. Skoda, although now owned by German car giant Volkswagen, began manufacturing in China in 2007 and has now produced more than a 1 million cars in the country.

Consumer finance company Home Credit, which went to Tianjin in 2010, now operates in 150 cities and 14 provinces and serves 6 million customers with such small loans seen as vital in boosting Chinese consumption.

Zeman says it is companies in environmental and water protection, in which the Czech Republic specializes, that could have the biggest lasting impact yet in helping China to tackle its huge environmental problems, particularly in cities like Beijing.

"We were in the same situation as China 20 years ago with dirty water and so on but our situation has improved dramatically. We are already exporting equipment for both cleaning air and water to China."

Zeman says there are potentially great bonds between the two countries, adding that he had met a leading Chinese entrepreneur on his visit who had built a home in his country, taking advantage of plentiful supply of cheap land.

"I was very happy with that. It was a signal that he wants to be in the Czech Republic forever or at least to the end of his life."

andrewmoody@chinadaily.com.cn