Page 32 - bne magazine September 2020 russia melting

32 I Central Europe bne September 2020
US Secretary of State Michael Pompeo and Susan Pompeo arrive in the Czech Republic on August 11, 2020.
Pompeo ends CEE tour with defence deal with Poland but main focus was on countering Chinese influence
China and Russia. Speaking at a joint press conference with Prime Minister Andrej Babis, he commented: “I ... raised the importance of choosing
the right partner for building the new reactor at Dukovany Nuclear Power Plant. Partnering with Russian and Chinese state-owned companies will, in fact, undermine the Czech Republic’s national sovereignty.”
The extent to which Prague plans to follow the US line is unclear, however. Czechia was one of the top destinations for Chinese investment in the region, and warm ties developed between President Milos Zeman’s circle and Beijing, but the relationship later soured.
Chinese conglomerate CEFC China Energy had snapped up a diverse range of assets including Czech top-tier football club Slavia Prague, hotels and office buildings as part of a region- wide acquisition spree that ended abruptly when the company fell into financial difficulties. The debacle had political consequences in the Czech Republic, where CEFC’s connections
to top politicians had previously raised concerns.
Other high-profile flops include Chinese SHS Aviation’s short-lived investment
in Slovenia’s Maribor airport and the bankruptcy of Bulgarian car factory Litex Motors after it announced plans
to assemble cars from China’s Great Wall brand.
The ensuing backlash against Chinese influence in Czechia included a warning from cybersecurity agency NUKIB
that Huawei posed a security threat. The government went on to sign
a declaration with the US on suppliers of 5G technology including assessing them for undue foreign influence.
At the press conference with Pompeo, Babis commented: “Concerning China, I have been criticising China because they had not invested in the Czech Republic in the way I would imagine they should.”
After Pompeo’s visit, however, Babis told daily Mlada fronta Dnes that Czechia
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US Secretary of State Mike Pompeo ended his tour of four Central European states on August
15 with a defence cooperation deal
with Warsaw that paves the way for additional US troops to be stationed in Poland, as Washington moves some of its forces away from Germany to other states in the region.
For the most part, however, Pompeo’s trip – that took in Czechia, Slovenia
and Austria as well as Poland between August 11 and 15 – emphasised bringing Central European governments on board in the US’ diplomatic offensive against Chinese influence, specifically Chinese tech giant Huawei’s involvement in
5G networks.
The Central, Eastern and Southeast Europe regions have been targeted by Chinese investors along with other parts
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of the European continent and other world regions as Beijing rolls ahead with its multi-continental Belt and Road Initiative (BRI).
This has brought billions of euros into the region especially in areas such as energy and transport infrastructure, often where countries have struggled
to get financing from other sources. For several years now, major investments have been announced with much fanfare at the annual 16+1 forum bringing together China and states from across the region.
As the US pursues an aggressive trade war with China, however, countering Chinese influence in the region has become a priority for Washington.
Starting his tour in the Czech Republic, Pompeo went in hard against both