The policy paper by Martin Šebeňa looks into trade and investment relations of China and V4 countries. A Central European manufacturing nexus has emerged in the past three decades, encompassing Germany, Austria and the four Visegrád countries. In this regard, a scrutiny of trade statistics based on value-added methodology indicates a significant increase in exposure of V4 countries towards China. Assessment of financial linkages shows a higher volatility potential of Chinese investments. Since the Chinese driven 16+1 and Belt and Road Initiatives strive for an increase in trade and investment flows between China and the region, both exposure and volatility are poised to grow further. However, economic interdependence within the manufacturing cluster decreases the ef icacy of domestic policy actions aiming at reducing volatility. In order to mitigate potential macroeconomic volatility, V4 countries must pursue closer macroeconomic cooperation within the region, particularly with Germany.
Martin Šebeňa is a CEIAS Research Fellow. He studied political science and sinology at the Charles University in Prague (2011) and finance at Curtin University (2016). He is currently pursuing his PhD degree at The University of Hong Kong. In the past, he studied Chinese at Zhejiang University in China (2006-7) and political science at the University of Pisa (2008-9) in Italy. He has worked in the finance industry in Switzerland, Australia, Hong Kong and Czechia. Among his various interests are social events in contemporary China, in particular issues of urbanization, education, health, consumerism and popular nationalism.