Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

China threatened to harm Czech companies over Taiwan visit: letter

Published 02/19/2020, 12:47 AM
© Reuters.  China threatened to harm Czech companies over Taiwan visit: letter

By Raphael Satter and Nick Carey

(Reuters) - The Chinese government threatened to retaliate against leading Czech companies if a senior Czech official made good on a planned visit to Taiwan, according to a diplomatic message reviewed by Reuters.

The Jan. 10 letter, sent by China's embassy in Prague to the Czech president's office, suggested that automaker Skoda[VOWGK.UL], lender Home Credit Group, and musical instrument maker Petrof Pianos would suffer if late Czech lawmaker Jaroslav Kubera visited the self-ruled island as planned.

Chinese officials in Beijing did not immediately return a message seeking comment. Taiwan's foreign ministry said it would issue a statement later in the day.

The chairman of the Czech Republic's upper house of parliament, Kubera was the second-most senior official in the country after President Milos Zeman. His planned visit to Taiwan - which Beijing considers a breakaway province - had already raised concerns that China would retaliate against the Central European country's business community.

The debate was made moot when Kubera died unexpectedly on Jan. 20, ahead of the planned trip, but the letter reveals how explicit Beijing had been about who would suffer if the visit went forward.

The message - written in Czech - noted that Kubera's trip would be seen as a "serious breach" of the so-called one China policy, under which Beijing insists it is the sole representative of China.

The letter said that "China is the largest foreign market for many Czech companies like Skoda Auto, Home Credit Group, Klaviry Petrof and others."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Czech companies whose representatives visit Taiwan with Chairman Kubera will not be welcome in China or with the Chinese people," the letter continued. "Czech companies who have economic interests in China will have to pay for the visit to Taiwan by Chairman Kubera."

The Czech government has said in the past that it does adhere to the one-China policy.

Latest comments

They are really goid at threatning
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.