The current economic situation in China and its impact on the Czech Republic

Abstract

Summary Nowadays, many companies try to enter to the international sector and to extend here their activity. Their international cooperation is an integral part of the action; it is necessary to know the cultural differences. Therefore it is important to understand the social development including the Social Progress Index and the secondary analysis of an economic situation in China; and its subsequent impact on the economy not only in the Czech Republic based on evaluation of Czech-Chinese business relations. China was in the last five years the male rotor of the world economic growth and became a significant importer of commodities. Last year, the Chinese economic growth rate slowed down, which could have negative consequences on other economies. This is also the possible reason for some Czech companies leaving the Chinese market; they transfer their production parts back to Europe or India. A presumption of high living standard, which all countries of the world and their inhabitants want to achieve, is according to the current paradigm of economic science the economic growth. The economy does not take pace in a vertical line, but at the horizontal level as the meaning of sharing in the net among the individuals. And the cooperation does not take place in the horizontal line but in the vertical line, which essentially changes the way of people's working.