The European debt crisis brought negative influences on the Czech economy in the year 2012. The Czech government's economic policies are featured with tax increase, public expenditure reduction and export expansion. Its political situation was not as stable as before due to the drag of the deteriorating economy, corruption scandals and a weak government. As to the European affairs, the Czech government insists on safeguarding its national interests. The relationships between the Czech Republic and China ran smoothly in the year. <<