"The door is open to a friend," says Prague Mayor Adriana Krnacova as she offers President Xi Jinping the keys to the city, China Daily reported.
The cordial welcome for President Xi comes amid China's agreement with the Czech Republic to strengthen diplomatic ties and strategic partnership last Tuesday.
It is considered as the first state visit by a Chinese president since diplomatic ties were established with the former Czechoslovakia almost seven decades ago.
Xi and his Czech counterpart, Milos Zeman, signed nine documents solidifying the partnership between both countries. The agreements covered fields such as electronic business and investment.
Zeman visited Beijing in Sept. 2015 to attend the commemoration of the 70th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression (1937-45).
"The strategic partnership has laid a political foundation for future development of our relations," said Xi.
The timing of the agreement coincides with China's Belt and Road Initiative. For the Czech Republic, this represents a strategy to further expand its market and its investments.
Zeman told reporters on Tuesday that the Czech-headquartered automobile company Skoda will invest 60 billion crowns ($2.48 billion) in China to build factories.
Zeman has praised the visit, stating that the agreement could bring nearly $4 billion in fresh Chinese capital by the end of 2016.
The two nations will aim to foster cooperation in infrastructure, financing and high-technology and sign deals on large nuclear energy projects.
"I hope the Czech Republic will become the gateway for China to enter the European Union," said Zeman.
China is the Czech Republic's largest trading partner outside the EU, with annual bilateral trade worth over $21 billion. In addition, the two countries have agreed to establish a renminbi clearing center in the Czech Republic.
According to Ma Junchi, a researcher with European Studies at the Chinese Academy of Social Sciences, Xi's visit comes as the two nations have experienced the fastest economic development since diplomatic ties were established.