Abstract
Research background: The People’s Republic of China in the 21st century can be described as an economy with high growth rates and great ambitions. Some statistics even indicate that China will become the world’s new hegemon by 2040. The People’s Republic of China is not only one of the largest exporters but is increasingly speaking to the world economy and international relations. Since the beginning of the 1990s, mutual relations between the People’s Republic of China and the Czech Republic can be described as very good and constantly deepening, which can be evidenced, among other things, by the number of trade agreements. Purpose of the article: Purpose of the article is to evaluate a development of mutual relations between Czech and Chinese economies in order to predict their future development. Emphasis will be placed on the development of mutual trade through the evaluation of absolute and relative indicators and growth rates. Methods: The paper is based on secondary data from the database of the Czech Statistical Office. The key methods used in the article are the analysis of time series of real products of the Czech Republic and China and their foreign trade. The analysis focuses on the trend, deviations and development of absolute and relative indicators. Findings & Value added: The results of the analysis proved that the Chinese economy is growing on average more than twice as fast as the Czech economy. Because of that, the economic/living standards of the population of both countries are converging. The growth rate of the People’s Republic of China, together with its high spending on science and research, means that (if this trend is maintained) China is likely to become the world’s new hegemon in the near future.
Highlights
The rise of Chinese economy is an undeniable fact
Research question 4 examines the correlation between the development of the gross domestic product of the Czech Republic and the People’s Republic of China
In 1990, the gross domestic product of the Czech Republic was 12.32 times higher than China’s GDP; in 2019, it was 2.25 times higher than China’s GDP. This comparison leads us to several clear conclusions—both economies experienced a relatively strong economic growth (7.1 % on average in case of the Czech economy, 13 % in case of China)
Summary
The rise of Chinese economy is an undeniable fact. The rate of PRC’s grow is so significant that many economists are speculating about the moment when Chine replaces USA as the world hegemon; the boldest among them mention the year 2030, others the year 2050. The growth of the Chinese economy does not manifest itself only as a growing GDP and improving living conditions enjoyed by the Chinese population, but primarily in the country’s rising influence on the international scene and her impact on global politics and economy. One of those who analysed the crucial factors of China’s rise was David Shambaugh [1]. Karmazin [6] concludes that the policy of developing the “Chinese dream” is not based on a re-evaluation of old principles and values and their transformation into new ones, rather on a creative combination of old and new factors
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