Polish Market No. 199/2013 Special Edition

INSIDE: POLISHH CHINESE RELATIONS TRADE AND INVESTMENTS IN CHINA

WOJCIECH KRYSTYAﾅイZUK

PRESIDENT OF MBL POLAND

Contents

199/2013

SPECIAL EDITION Polish-Chinese relations

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Ilona Antoniszyn-Klik, Deputy Minister of the Economy, for “Polish Market”, Building good economic relations with China

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Mr. Ambassador Xu Jian, Ambassador of PRC in Poland, 徐大使接受 Polish Market 杂志采访答问参考

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The visit by the President of Poland Bronisław Komorowski to China in December 2011

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Jagiello, President of the Board of Kopex SA, 30 Andrzej China as one of the key markets for Kopex Group

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FASING Group – driven by the future Bartosz Komasa, Trade with China and bilateral investments Mieczysław Struk, Marshal of Pomorskie Voivodeship, Pomorskie Provincea great potential to invest

Andrzej Pieczonka, First Counsellor, Trade and Investment Promotion Section, Consulate General of the Republic of Poland in Shanghai, The Chinese market is for resolute and determined entrepreneurs

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Alicja Adamczak, Ph.D., President of the Polish Patent Office, Protection of intellectual property is essential for the development of Polish-Chinese economic cooperation

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Mieczysław Twaróg, President of the Board, the Association of Polish Exporters, The Polish economic development strategy on fostering exports Polish Market round table

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Janusz Rodziewicz, President of the Association of Polish Butchers and Producers of Processed Meat, Even the best encounter problems

Polish Market round table

Opolskie - Fujian, Opolskie in the heart of Europe

Polish export

Polish-Chinese economy

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Jarosław Dąbrowski, the founder of and managing partner in Dąbrowski Finance, China – the promised land for Polish entrepreneurs?

Agata Geppert, Trade and investments in China

44 Maciej Bartoń, Ecology for exports Culture

46 Maciej Proliński, Crushing the wall…

Dariusz Tokarczuk, Managing Partner Gide Loyrette Nouel, Poland – worth investing Wojciech Krystyańczuk, President of MBL Poland, Passion, mission and challenges

Polish Market :: 199/2013

Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.)

PUBLISHED SIncE 1996 No. 199 / 2013 :: www.polishmarket.com.pl

SPECIAL EDITION

President: Krystyna Woźniak - Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Adress: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak - Trzosek Deputy Editor-in-Chief: Ewelina Janczylik - Foryś 2 :: polish market :: Special Edition /2013 redakcja@polishmarket.com.pl WOjCIECh MANAgINg DIrECTOr 3M IN POLAND

KrySTyAńCzuK PrESIDENT OF MBL POLAND

Polish Market wishes to extend warm thanks to Jiang Huijuan ( lorajiang@hotmail.com) and Yingnan Sun (yingnansun@gmail.com) for chinese translation.

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Editorial Polish-Chinese relations

“Go China” is a challenge that appeared in Polish economic debate a year ago and received an immediate feedback. But deriving potential and real benefits from the cooperation with the world’s second largest economy was not a new idea in Poland. For years Polish domestic market has been enriched by imports from China, and smart entrepreneurs strived to join the global trend of locating production in the Far East. However, in the first decade of the 21st century Poland was almost entirely focused on integration with the European market, and mastering its mechanisms and standards.

Many experts promote the view that it is the global financial crisis and recession on the European market, which is not only Poland’s but also China’s main economic partner, that spurred the two countries to boost their economic and political relations. Perhaps there is something true about that view, but only up to the point.

My observation is that over the past few years Poland has attained the stage of economic maturity at which it is able to shape relations even with the largest global partners. On the one hand - as a new EU member state - we were not involved in defining the EU policy towards China. On the other hand, our EU partners such as Germany and the United Kingdom taught us a lesson of how to be sovereign in shaping extra-European relations. I believe that Poland will prove to be an “apt pupil”.

Poland’s participation in the World Expo in Shanghai marked the beginning of this enhanced activity. A chain of significant events followed: President Komorowski’s visit to China, the Strategic Partnership Agreement, the establishment by the Chinese government of the Secretariat for Relations with Central and Eastern Europe as part of the “Go Global” strategy, Poland’s response in the form of the “Go China” program, the summit of Prime Ministers of Central and Eastern Europe in Warsaw with the participation of the head of China’s government. This political revival is accompanied by increasingly numerous business contacts, conferences, trade fairs and trainings. A mental and informational basis is building up for real transactions in the field of production, trade, R&D and tourism.

For “Polish Market” it is not the first project when it comes to Polish-Chinese relations. Our debut was at the Shanghai Expo, but since then we have repeatedly faced the challenge of Polish-Chinese relations. If we managed to be a good ambassador of Polish economy, science and culture in China, it is also thanks to support from a large group of individuals like Minister Olgierd Dziekoński from the President’s Chancellery, officials from the Ministry of Economy and the Embassy of China in Warsaw, and most of all our friends from the Opole University of Technology with its Rector, prof. Eng. Marek Tukiendorf and the Opole Confucius Institute. “Go China” is a good direction indeed. ::

“走向中国”是一年前在波兰经济研讨会上提出的一项具有挑战性的 计划，并且马上引起了反响。但这个想法并不是新创，波兰与世界第二大经 济体开展合作必然具备着巨大的潜力和利益。多年以来，从中国进口的商 品丰富了波兰的国内市场，同时一些明智的企业家也努力地加入到世界潮 流中来，把生产线设在远东地区。然而，在二十一世纪的前十个年头，波兰 几乎完全专注于融入欧洲市场，掌握欧洲市场的市场机制和标准。 许多专家倡导同一观点，即正是欧洲市场所经历的全球金融危机和经济 萧条促使了波兰和中国加强经济和政治联系，因为欧洲市场不仅是波兰也是 中国的主要的经济伙伴。这种观点也许部分正确，但也不尽然。据我的观察， 在过去的几年里，波兰经济已经成熟到了一定程度，有能力与全球最大的经济 伙伴们形成互动。一方面，作为新的欧盟成员国，我们未参与欧盟对中国政策 的制定；另一方面，像德国和英国这样的欧盟合作伙伴教会了我们如何自主地 处理欧盟以外的外交关系。我相信，波兰会证明自己是一个“灵活的学生”。 波兰参加了上海世博会，这标志着波兰在中国进一步行动的开始。在此 之后，一系列具有重大意义的事件接踵而来，其中包括：波兰总统科莫罗夫 斯基访华、波中战略伙伴合作协议的签署、作为“全球化”战略的一部分中国 政府中东欧关系秘书处的成立、与之相应的波兰“走向中国”计划、在华沙 举办的由中国政府首脑出席的中东欧国家总理峰会。这些活跃的政治活动伴 随着日益增多的商务往来、会议、展会以及各种培训。在生产、经贸、研发、旅 游等领域，能够在实际合作中得以共享的思想和信息基础正在逐步建立。 对《波兰市场》杂志而言，关于波中关系的报道并不是第一次。首次是 在上海世博会上的报道，而此后我们不断地在波中关系方面遇到挑战。如 果说我们通过努力成为了一名优秀的波兰经济、科学和文化的对华使者的 话，我们应该感谢很多人，包括波兰总统府国务秘书Olgierd Dziekoński、 波兰经济部和华沙中国大使馆的官员们，特别是奥波莱工业大学校长Marek Tukiendorf 教授以及奥波莱工业大学和奥波莱孔子学院的朋友们。 “走向 中国”确是一个正确的方向。 Krystyna Woźniak-Trzosek Editor-in-Chief President Rynek Polski Publishers Co. Ltd.

Special Edition /2013 :: polish market :: 3

Polish-Chinese relations

Building good economic relations with China Ilona Antoniszyn-Klik, Deputy Minister of the Economy, for “Polish Market” 波兰国家经济部副部长 Ilona Antoniszyn-Klik 在接受《波兰市场》采访时谈到：

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hina is Poland’s biggest trade partner in Asia both in terms of trade value and import volume.

In 2012 our turnover with China was nearly EUR15 billion. It is an enormous prospective market, and hence we should strive to involve our own companies in it. Increased exports to China is the key prerequisite here, all the more so that relations between our countries are already good.

I think that President Komorowski’s visit to China in December 2011 was a turning

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point in our mutual relations. Returning the gesture, Premier Wen Jiabao came to Poland in April 2012. These events raised the level of Polish-Chinese relations to a strategic partnership, which guarantees regular meetings and consultations between the nations’ representatives, and other benefits. I am convinced that entrepreneurs will be the first to take advantage of this, as such visits are always accompanied by trade missions and forums, which provide numerous opportunities to establish business contacts.

April 2012 was also the time of the “Poland – Central Europe – China” Economic Forum, featuring Prime Minister Donald Tusk and Premier Wen Jiabao, as well as Deputy Prime Minister and Minister of the Economy Waldemar Pawlak. A lot of vital statements were made during the forum. Premier Wen Jiabao announced, among other things, that China was planning to double its trade with Central and Eastern European Countries in the coming five years. He also pointed out that his country wanted to balance bilateral trade with Poland, the region’s largest importer of Chinese goods.

Expanding economic cooperation was also the primary objective of the Minister of the Economy’s visit to China in May 2012. One of the issues covered in the talks with Chinese trade experts was the establishment by the banks of a joint investment fund which would support business projects and the organisation of Chinese trade missions to Poland.

During a meeting with the Management Board of Huawei, the Deputy Prime Minister of Poland suggested that a new research centre for this company could be sited in our country. He also encouraged the Presidents of Lenovo, ZTE, Great Wall Motors, and NBE to invest in Poland.

Foreign visits by Government representatives are certainly crucial elements in the economic policies of both countries. However, actions that bring China closer to Polish entrepreneurs and encourage them to operate on our market are equally important.

With this in mind, in March 2012 the Ministry of the Economy launched the “Go China”

Polish-Chinese relations

website, which provides all the important information about operating on the Chinese market. We are also cooperating with the Ministries of Agriculture, Rural Development, Sports and Tourism, the Polish Information and Foreign Investment Agency, the Polish Agency for Enterprise Development and the Agricultural Market Agency. The website also publishes information from the Departments of Trade and Investment Promotion at the Consulate in Shanghai and the Embassy in Beijing.

Our Chinese partners are also acting towards increasing the imports of goods from Central and Eastern Europe, including Poland. In November 2012, within the framework of the “Global Purchasing Season” project, points which accepted the applications of foreign exporters with samples of goods, price quotations, etc were established in several of China’s major economic centres. Depending on the extent to which a given company is able to satisfy the demand of Chinese customers, the centres offer contracts. The project will be completed by the end of April 2013. We know that Polish companies have also decided to participate.

In October 2013 there will be another meeting regarding further activities to increase imports. It will be attended by experts from the Ministry of the Economy, who will study the programme and provide Polish companies with information about potential new opportunities.

We already have several models for building good economic relations with China. One of these was the opening in 2012, thanks to years-long efforts, of the Chinese market for pork imports from selected Polish companies.

Since then, 11 of our producers have got the green light. For the first time in many years, Polish agricultural and food exports to China have increased significantly, reaching nearly 5 % of all our exports last year.

The aspect which is still not as developed as it should be is investments. We need Chinese companies to establish their cuttingedge projects in Poland. Interest in our energy sector has been growing. For these reasons we are already planning a trade mission to China in the first half of 2013 to invite local companies to cooperate with us.

As I have already mentioned, the China is a huge and diverse country with great prospects for economic cooperation. I hope that “Polish Market” will be instrumental in making our Chinese partners more aware of the potential of Polish entrepreneurs and our country’s economy. ::

就贸易额和进口量而言，中国是波兰在亚洲的 最大的贸易伙伴。2012年我们与中国的年交易额 接近150亿欧元。可见中国是一个具有巨大潜力的 市场，因此我们必须努力让我们波兰的公司参与 其中。增加对中国的出口量是一个重要的先决条 件，更为重要的先决条件我们已经具备，那就是我 们两国已经建立了很好的友好关系。 我认为科莫罗夫斯基总统在2011年12月对中国 的访问是发展双边关系的一个重大突破，之后，温 家宝总理也在2012年4月对波兰进行了访问。这一 系列事件共同把波中关系推向了战略合作伙伴的 高度，确保了波中两国代表之间定期举行的会议 交流、咨询活动和其它多方面的利益。我相信企业 家们会首先利用这个契机，因为这些双边访问活动 通常带有经济目的，如随之举行的经济论坛，这些 活动为企业家们提供了很多建立商业联系的机会。 2012年4月还举行了“波兰-中欧-中国”经济论 坛，Donald Tusk总理、温家宝总理以及副总理兼 经济部部长Waldemar Pawlak 都出席了论坛。论 坛上代表们做了许多重要发言。温家宝总理宣布在 未来的五年内，除了其它的合作项目外，中国计划把 同中东欧国家的贸易量增加一倍。他还指出中国要 平衡同波兰的双边贸易，目前波兰是中东欧最大的 进口中国产品的国家。 扩大经济合作规模是2012年5月经济部长访问中 国的首要目的。在与中国贸易专家会谈中，双方探讨 了关于建立由银行联合投资的基金，来支持商业项 目和中国在波兰的贸易组织”这一问题。 在与华为公司管理委员会会谈期间，波兰副总 理建议该公司在波兰设立一个新的研究中心。他还 鼓励联想、中兴、长城汽车和博纳科技（NBE）公司 的总裁来波兰投资。 外国政府代表团的访问是影响两国经济政策 的关键因素。然而，拉近中国与波兰企业家的关 系，并鼓励他们在波兰市场进行运作也同等重要。

考虑到这一点，经济部于2012年3月推出了名为“ 走向中国”的网站，提供所有关于在中国市场运作 的重要信息。同时，我们还与农业和农村地区发展 部、体育和旅游部、波兰信息和外国投资局、波兰 企业发展局以及波兰农业市场局合作。该网站还 刊登了波兰在华的上海领事馆和北京大使馆的贸 易和投资促进部门提供的信息。 我们的中国合作伙伴也在提高从包括波兰在 内的中东欧国家的商品进口量。在2012年11月的“ 全球商品采购季”项目框架下，中国已经在几个主 要经济中心建立了外国出口商利用样品和报价等 进行申请的接收点。这些中心将根据这些公司能 够满足中国客户需求的程度来决定与哪些公司签 订合同。这一项目将于2013年4月底完工。波兰公 司已经决定参与此项目。 2013年10月将再次举行会议，主要讨论关于扩大 进口的进一步实施工作。经济部专家将出席此次会 议，研究规划的方案并阐述波兰公司新的潜在机会。 我们已经有了几个与中国建立良好经济关系的 典范。其中一个是经过多年的努力于2012年在中国 开始的对选定的波兰公司开放猪肉的进口市场。此 后，我们有11个生产商获得了许可。波兰农业和食 品向中国的出口量多年来首次有了明显提高，几乎 达到去年出口总量的5%。 投资方面却仍然不尽如人意。我们需要中国公 司来波兰设立他们的尖端项目。中国对我们能源部 门的兴趣一直在增长。基于以上原因，我们已经组 织了经济代表团，将于2013年上半年访问中国，邀 请当地公司与我们合作。 正如我所提到的，中国是一个庞大而多样化的 国家，具有十分广阔的经济合作前景。我希望《波 兰市场》杂志能让我们的中国合作伙伴更多地意 识到波兰企业家和我国经济的潜力。

Special Edition /2013 :: polish market :: 5

Polish-Chinese relations

徐大使接受 Polish Market 杂志采访答问参考

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What change did you anticipate in Poland-China relations after PM Wen Jiabao’s visit last year?​

您认为去年温家宝总理访波给中波关系带 来了哪些变化？ 去年四月，时任中国国务院总理温家宝访问 波兰，分别同波总统科莫罗夫斯基、众议长科 帕奇、参议长博鲁塞维奇和总理图斯克举行会 谈、会见，就中波、中欧关系和共同关心的国际 问题坦诚、深入交换看法，达成一系列重要共识。 双方领导人一致表示，坚持相互尊重、平等相 待，支持对方走自主选择的发展道路；同意建立 中波总理定期会晤机制，密切高层交往，增进政 治互信；成立中波政府间合作委员会和产业合作 指导委员会，推动双向投资和贸易平衡增长，争 取5年内实现双边贸易额翻一番，加强在基础设 施建设、新能源、高科技等领域的合作；中方邀 请50名波兰青年访问中国; 以北京-华沙开通直 航为契机，密切人员往来，拓展旅游合作。这些 举措在中国与中东欧国家关系中很多是开创性的， 为中波关系发展注入了新的强劲动力。 此次访问是中波关系中的重大事件，也是切 实加强两国高层交往的重要体现。这充分体现 了中国领导人对波兰及中波关系、中欧关系的 高度重视，表达了中波双方增进政治互信、加 强互利合作的强烈愿望，对全面深化两国战略 伙伴关系、开拓各领域务实合作起到了巨大的 推动作用。中国共产党第十八次全国代表大会 选举产生了新的中央领导集体，相信新一届中

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国领导人也将继续重视同波兰关系，推动两国 战略伙伴关系不断向前发展。 Last April, the then Chinese Premier Wen Jiabao visited Poland and met with Polish President Bronisław Komorowski, Prime Minister Donald Tusk, Sejm Speaker Ewa Kopacz and Senate Speaker Bogdan Borusewicz respectively. They exchanged ideas frankly and extensively on China-Poland and China-EU relationship as well as international issues of common interest and reached a lot of consensus.

They agreed that the two countries will continue to respect and treat each other equally and support each other’s choice of development path; establish a regular meeting mechanism between the two countries’ prime ministers so as to facilitate high level interaction and enhance political mutual trust; create an inter-governmental commission and a steering committee for industrial cooperation to promote two-way investment and balanced increase in trade, try to double our bilateral trade volume within five years, and strengthen cooperation in such areas as infrastructure, new energy, high technology and so on; invite 50 Polish youth to visit China; facilitate personnel exchange and expand tourism cooperation with the direct

flight between Beijing and Warsaw. Some of these measures are pioneering in central and eastern european countries, instilling new dynamic to China-Poland relationship.

This visit is a big event in our relationship, as well as important embodiment of strengthening our high- level exchange. This fully shows Chinese leaders’ high regard for Poland and China-Poland, China-EU relationship, demonstrates both sides’ strong desire to enhance political mutual trust and mutual beneficial cooperation, and plays a very important role in deepening our strategic partnership and pragmatic cooperation in all fields. The eighteenth National Congress of Chinese Communist Party elected the new central leading body in China. I believe that the newly elected Chinese leaders will continue to emphasize relationship with Poland and push for the development of our strategic partnership. pm

Which sectors may be promising for Polish investors in China?

对波兰投资者而言，中国哪些产业更具前景？ 中国正致力于调整经济结构，转变经济发展 方式。中国欢迎高科技行业、绿色产业、具有高 附加值的创新产业等行业的外国投资。同时，中 国处于深入城镇化进程中，希望波兰投资者对中

Polish-Chinese relations

国的西部地区、农村地区给予更多关注。另外，中 国政府出台了《外商投资产业指导目录》，列明了 具体的鼓励行业，若您需要，我们很乐意提供。 China is now engaged in adjusting the structure of its economy and transforming the patterns of development. The high- technology sector, green industries, more innovation industries with high added value will be welcomed. Besides, China is within the process of urbanization, Polish investors may pay more attention to the western part and rural areas of China. What’s more, the Chinese government has released the Catalogue of Industries for Guiding Foreign Investment which identified the specific industries encouraged for FDIs. It will be our pleasure to provide you if you need. pm

Which sectors may be more interesting for the Chinese investors?

哪些产业对于中国投资者更有吸引力？ 波兰是欧盟成员国，它稳定增长的经济、独 特的地理位置，高质量而低成本的人力资源吸 引了很多中国企业。近来，能源行业、基础设施行 业和IT服务业颇受中国投资者青睐。我也认识到， 在机械制造、汽车零部件、航空、采矿、农食品等 行业上，两国合作的潜力也非常巨大。 Poland is an EU member, its stable growing economy, unique geographical location, high quality but lower cost of labour force have attracted many Chinese investors. Recently, the energy, infrastructure and IT services sectors have drawn more focus. I am also aware that high cooperation potential exists in the mechanical sector, car parts industry, aviation, mining industry and agricultural food sectors. pm

Do you think that Polish companies can be competitive in China?

您认为波兰公司在中国有竞争力吗？ 是的，就像“中波轮船”这样有半个世纪良 好业绩的企业一样，很多在中国经营的波兰公 司都非常有竞争力。我知道，中小企业对于波 兰的经济发展非常重要，政府采取了很多促进 中小企业发展的措施。它们中很多拥有尖端技 术，以此保证了核心竞争力。事实上，在中国的 波兰企业在工业锅炉、液压支架、输煤机械链 条等领域业绩突出。 Yes, many Polish companies are competitive in China, just as the CHIPOLBROK which has conducted successful business through more than a half century. I know that small and medium enterprises are very important to Poland and the government has adopted a series of policy measures to help them. Many such Polish companies own their top technology and know-how which ensure that they are embraced with core competitiveness. In fact, the Polish companies made good

achievements in manufacture of industrial boiler, hydraulic roof support, chains for coal conveyor machines. pm

How many Chinese companies are already investing in the Polish market?

有多少已在波兰投资的中国公司？ 根据波兰中央统计局的数据，在波兰有300 多家中国企业开展经营。根据我们的数据，中国 企业的总投资只有2.7亿美元。正如您所知，中波 已经提升为战略伙伴关系，因此，上述投资数据 太小，与两国关系和合作潜力不相符。随着我国 总理温家宝去年访问波兰，我们注意到赴波投 资呈现良好势头，我相信会有越来越多的投资 者来波兴业。 According to Polish GUS’s statistical data, there are more than 300 Chinese companies doing business in Poland. As to our statistical data, only USD 270 million in FDI has come from China. Therefore, this number is comparatively small. As you know, Poland and China have promoted our relations to strategic partnership. In the wake of our former Premier Wen Jiabao’s visit last year, we noticed the momentum of positive investment to Poland and it is expected more and more Chinese entrepreneurs will come to Poland.

计划。我高度认同波方观点：来自中国的外商 直接投资将很好地弥补波兰对华贸易赤字问题。 Surely the transformation, or development will be mutually beneficial to both countries. We are glad to see that during the last year, the bilateral trade turnover amounted to a new record of USD 14.3 billion. During the visit of Premier Wen Jiabao, he shared the same opinion with Prime Minister Tusk, that governments should promote bilateral trade and investment. The political leaders made the target to double the turnover of bilateral trade in 5 years and make effort toward trade balance.

I appreciate Poland’s “Go China” project implemented by several Polish goverment institutions. I agree with the views of Polish side that the FDI from China could compensate for the current trade deficit. pm

What products is China buying from Poland?

中方主要从波兰采购何种商品？ 根据中国海关统计，2012年，中国自波进口前 十大商品是铜及其制品、电子设备及零部件、机 械器具及零件、有机化学品、车辆及其零件附件、 家具、橡胶及其制品、钢铁制品、矿砂、光学、医 疗及外科仪器及设备。 pm How do you see the transformation in in目前，波对华出口额仅占波出口总额的１%，发 vestment and trade relation with Poland? 展潜力巨大。中国欢迎波兰企业积极开拓中国市 您如何看待与波兰投资、贸易的变化？ 场。去年，波兰猪肉产品正式获准对华出口就是 这种转型或称发展，必将使两国互惠互利。 一个较大的突破，希望波兰优质的农产品能进入 我欣然看到，2012年双边贸易额再创新高，达 中国的千家万户。 到143亿美元。在温家宝总理访问波兰期间，他 According to China’s customs statistics, 与图斯克总理达成共识，要提升中波投资和贸 the top ten products imported from Poland 易发展水平。两国政治领导人为双边贸易设定 are as follows: copper products, electronic 的目标是5年内翻一番，且向贸易平衡努力。我 equipment and parts, mechanical equipment 赞赏波方政府几个部门联合推出的“走向中国” and parts, organic chemicals, motor vehicles Special Edition /2013 :: polish market :: 7

Polish-Chinese relations

and auto parts, furniture, rubber products, steel or iron products, ore, optical, medical or surgical instruments and apparatus.

Currently, Poland’s exports to China only account for 1% of Poland’s total exports.

Much potential remains to be tapped. China welcomes Polish enterprises to actively explore the Chinese market. It is a great breakthrough that Poland’s pork products had been approved to be imported to China last year.

We hope Poland’s high quality agriculture products will enter numerous homes in China. pm

How does China view Poland’s economy?

中国如何看待波兰经济？ 我建议您修改问题为“中国大使如何看待波 兰经济”，这样我回答会更有信心。 波兰自上世纪90年代经济改革以来，一直 保持经济增长，特别是非常困难的2008、2009 年。过去三年来波兰维持较高GDP增速，所以波 兰在欧债危机背景下被称为“绿岛”。波兰有她 的优势，比如：广大的市场、高素质人才、较低 的劳动力成本、大量的欧盟援助基金等等。我 也注意到，最近波兰经济遇到一些挑战。与中 国一样，出口对于波兰宏观经济影响深远。欧 债危机减少了外部需求，出口下降。另外，波经 济也有诸如失业率较高、国内消费下降等问题。 我完全赞同政府出台的应对经济下行的措施，比 如降低利率、推出“波兰投资”项目、引入中小 企业鼓励措施等。在世界经济的艰难时刻，我 相信只有合作才是解决之道。中方愿与波兰团 结协作，共克时艰。 I suggest you change the question into “How does the ambassador view Poland’s economy”. Then I will be more confident to answer it.

Since the reform of the economy in the 1990s, Poland has maintained economic growth, including the very difficult period of 2008 and 2009. Within the past 3 years, Poland made good record in terms of GDP growth, explaining why Poland is called the “green island” in the context of Eurozone crisis. Poland has its advantages like a vast market, high quality human resources, lower cost of labour force, big amout of European funding and so on.

I also noticed that recently, Poland’s economy confronts with some challenges. Like China, exports impose profound influence to the macroeconomy. The Eurozone crisis decreased foreign demand, so the exports shrank. Besides, there are still high unemployment, subdued domestic comsumption and so on. I have noticed that Polish government’s policies to beat the economic downturn are effective, including a reduction of interest rates, adoption the Polish Investment Programme, introduction of Small and Medium companies’ promotion plan and so on.

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At the tough time for the world economy, I believe only cooperation could lead to better solutions. China is willing to conquer the crisis in team work with Poland. pm

What was the opinion in China about the visit of the Polish President in December 2011?

中国如何看待波兰总统2011年12月对中国 的访问？ 波兰总统科莫罗夫斯基于2011年对中国进 行国事访问，与中国领导人就深化双边关系及 共同关心的国际和地区问题坦诚、深入交换意 见，达成广泛共识。双方积极评价中波传统友 谊，一致认为拓展和深化中波关系符合两国人 民的共同愿望和根本利益，有助于维护世界和 平与发展，促进各国和谐共处。为此，双方决定 将双边关系提升为战略伙伴关系。 中国和波兰都是在各自地区具有重要影响 的国家，在国际事务中有许多共同利益。中波 战略伙伴关系的建立，意味着两国愿意通过对 话交流，进一步加强在中欧全面战略伙伴关系 框架内的合作，密切在联合国等国际组织及重 大国际问题上的沟通和协调，在确保自身发展 的同时，共同为促进中波、中欧关系发展以及 建设持久和平、共同繁荣的和谐世界作出贡献。 波兰总统选择在波担任欧盟轮值主席国期 间访问中国，凸显波方希望积极发展对华关系 的良好愿望和愿为中欧关系发展发挥建设性 作用的友好姿态。此次访问开启了中波关系的 新篇章，也是两国关系发展史上的里程碑事件。 相信在战略伙伴关系框架下，两国各领域务实 合作将继续稳步推进。 Mr. Bronisław Komorowski, the Polish President, paid a state visit to China on December, 2011. Leaders of both countries exchanged ideas frankly and extensively on deepening bilateral relations and

international and regional issues of mutual interest and reached a lot of consensus. Both sides positively assess China-Poland traditional friendship, agreeing that extending and deepening our relationship caters to both peoples’ desires and interests, helps to safeguard international peace and development and contribute to the harmonious co-existence of all nations. Therefore, both sides decided to enhance our bilateral relationship to the level of strategic partnership.

Both China an Poland are influential nations in their regions and we share a lot of common interest in international issues. The establishment of strategic partnership means that we are willing to reinforce cooperation within the framework of China-Europe Comprehensive Strategic Partnership, enhance communication in international organizations such as the United Nations and important international issues through dialogue and communication. We would jointly contribute to the development of China-Poland, China-EU relationship and the establishment of a harmonious world that enjoys eternal peace and shared prosperity.

The Polish President chose to visit China during Poland’s EU presidency. This shows Polish side’s good wish to develop our bilateral relationship and friendly gesture to play a constructive role in the development of China-Europe relations. This visit opens up a new page in our bilateral relationship and serves as a milestone in its development. I believe that our pragmatic cooperation in all fields will continue to move forward steadily in the framework of China-Poland strategic partnership. ::

Polish-Chinese relations

Behind the Great Wall The visit by the President of Poland Bronisław Komorowski to China in December 2011

“

Today, Poland is the holder of the Presidency of the European Union, and China is the world’s second economy, a country contributing to the great global policy. So, I think that it is in the interests of all to promote the Polish-Chinese relations to a higher level

”

“We can share with China our practical experience in transforming the State, which was extremely far from having democratic standards, into the rule of law.”stressed the President of Poland Bronisław Komorowski during a Christmas Eve interview for Polsat News in 2011.

The President, who on 22 December 2011 returned from several days’ visit to China, said the last visit of the President of Poland to China had taken place 14 years ago. “Since that time the world has changed, China has changed, Poland has changed, and also PolishChinese relations should change.” he added.

He explained that his visit was a chance to sign with the Chinese a declaration on strategic partnership. “A number of countries around the world have such contracts signed, seven in the European Union alone, so it’s not any exceptional distinction, but it means that we have just joined those countries in Europe which have such special relations with China, relations which give them political and economic benefits.” he said.

“

现在，波兰担任欧盟轮值主席国，而中国是世界第二大经济体，影 响着宏大的全球政策。因此我认为，促进波-中关系达到一个更高 的水平符合我们两国各自的利益。

also a significant sector of the business community and experienced persons in the economic life in China, thanks to economic forums with the participation of representatives of Polish business, could hear that Poland has a developing economy and that we have protected our country from the European financial crisis and that we have much to offer each other.” said Bronisław Komorowski.

The President, asked about the potential areas of interest in China for Poland, said that now “China is entering the new phase of investment outside China with massive savings and deposits in banks.”

“Therefore, the declarations of the most important people in China that aspirations to invest part of that money in Poland will be supported by the Chinese authorities have

”

become especially crucial. This is conclusive in this scenario.” he noted.

At the same time President Komorowski stressed that there were also declarations that the political authorities in China would support efforts to balance trade between Poland and China. He added that now it is very unfavourable for Poland, that is to say we import much more than we export.

Bronisław Komorowski added that two forums - economic, and investment in Shanghai and Beijing - were attended by about 100 people from the Polish business community and economic experts, some of whom have already entered into contracts with China.

“The most spectacular is the contract signed

by KGHM for the delivery of Polish copper worth billions of zlotys”, he said.

Bronisław Komorowski stressed that his task was to “make the Chinese aware that Poland is the twentieth economy in the world, and sixth or seventh in Europe, depending on the method of counting.”

“We made ​​it happen. The most important people in China, and

Bronisław Komorowski, President of Poland and Hu Jintao President of the People’s Republic of China from 2003 to 2013 Photos: Wojciech Grzedziński, President.pl

A meeting with

Prime Minister of China President of Poland Bronisław Komorowski on the last day of the official visit to China met Prime Minister of the China Wen Jiabao and Chairman of the Standing Committee of National People’s Congress Wu Bangguo. Ending the visit, the President concluded that it had helped to open up new vistas of cooperation between our countries.

The President participated in the Polish-Chinese Economic Forum, during which PLL LOT and Air China signed a letter of intent on

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Polish-Chinese relations

direct Warsaw-Beijing connections from June 2012. Bronisław Komorowski expressed his satisfaction with the signing of the letter.

“It has been promised that from the first days of June there will be a permanent connection between Warsaw and Beijing, and we all know that regular flight connections is a condition of good cooperation, both in the economic area and all others”, the President said.

Bronisław Komorowski also talked with KGHM Polska Miedź President Herbert Wirth and his Chinese partner from China Minmetals, Zhou Zhongshu. The President addressed the subject of a framework agreement for the years 2012-2016, concluded the day before, with a total value of about USD 3.5 billion.

KGHM is going to sell its main product to China, which is cathode copper, in the amount of 100 thousand tonnes per year.

Owing to this, the company will generate USD 700 million in revenue annually.

KGHM and China Minmetals also signed an agreement on organising business forums.

Bronisław Komorowski expressed his satisfaction with the signing of many important economic agreements by Poland and China.

At a press conference after the inauguration of the economic forum in the Chinese capital, the President noted with real pleasure that as a result of the agreement signed on 27 December 2011 with President Hu Jintao Poland had managed to improve Polish-Chinese relations to the level of strategic partnership.

According to Bronisław Komorowski, the good economic performance of Poland and China give encouragement to the countries to strengthen cooperation in the future. “This has been proved by the two forums - the investment forum in Shanghai and the economic one here in Beijing.”said the President.

“It is important that the course of these Polish-Chinese forums is fully accepted by the (Chinese) political authorities.” he noted.

He pointed out that the forum was attended by the Chinese Deputy Prime Minister Li Keqiang.

At the end the President emphasised that the signing of a number of contracts and letters of intent was the evidence of intensive economic cooperation and the potential options for the future.

Directly from the forum the President left for a meeting with the Chairman of the Standing Committee of the Chinese Parliament (National People’s Congress) Wu Bangguo, and then, with Prime Minister Wen Jiabao.

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Strategic partnership

President Bronisław Komorowski met in Beijing President of China Hu Jintao. The heads of State signed a joint declaration on strategic partnership between the two countries.

“I believe that the current visit will contribute significantly to the cooperation in various areas between our two countries and raise bilateral relations to a new level”, said Hu Jintao, greeting the Polish delegation.

Bronisław Komorowski thanked Hu Jintao for giving him a warm welcome in China.

“This is my first visit to China. I wish to say that, according to a Chinese saying that “it is better to see once than to hear a hundred times”, I see China as a country of tremendous growth.” said Bronisław Komorowski. “Today, Poland is the holder of the Presidency of the European Union, and China is the world’s second largest economy, a country contributing to the great global policy. So, I think that it is in the interests of all to promote the Polish-Chinese relations to a higher level”, he stressed.

The Investment Forum

At the Investment Forum in Shanghai, President Bronisław Komorowski encouraged Chinese businessmen to invest in Poland by advertising Poland as one of the fastest growing countries in the European Union in the current economic crisis.

At a meeting with the Chinese business community, which is - in the opinion of the President - an important area of change. Bronisław Komorowski presented seven reasons why it was worth being interested in Poland. “Just like the EU is the first partner for China, Poland among the 27 EU countries is the 6th largest economy.” stressed the President in a statement to the press.

“Poland in itself is a big market, and from the European perspective, a very big market. It also commands a strong position in political and economic terms. Poland should be seen as a gateway to the 500-million strong panEuropean market.” underscored President Komorowski.

“Second, Poland is a good brand when it comes to good external investment - we have very good reports, ranking Poland in the top positions in terms of investing in our country.” said the President.

“Third, Poland is a leader in economic growth in Europe, as China is in this region of the

world.” said Bronisław Komorowski, noting that economic growth in Poland has been undisturbed for more than 20 years, which distinguishes the country from all other EU countries. “Economic growth in the past year will be at the level of 4%, which in European terms is a great result”, he stressed.

As a fourth reason President Komorowski mentioned the activities of local governments, which have already put a lot of effort to attract outside investors, including those from China.

“Fifth, Poland has a stable financial and banking sector.” noted Bronisław Komorowski. “Sixth, the Poles are energetic by nature. This applies to different areas, including science and higher education, but it also has its source in the quality, which the Chinese certainly understand - hard work, putting in serious effort.” he added.

At the end, the President encouraged Chinese business people to buy Polish Treasury bonds.

“One reason why Chinese investors and also Chinese markets should try to better tap the important opportunity in store, that is Polish Government bonds, is that we are now approaching the end of our privatisation process”, pointed out the President. “Another reason being that Polish Treasury bonds are founded on a sound economy and a sound system of public finance.” added the President.

In addition, during the Forum Academic Incubators of Entrepreneurship (AIP) and Co-Way International Technology Transfer Centre, an agreement was concluded on the project Poland- China Business Link. The AIP’s Business Link project is an initiative that will provide assistance in the development of start-ups by establishing economic relationships with key global start-up centres in foreign markets. Signing this agreement is the launch of the first of the six agencies promoting Polish entrepreneurship in the world’s largest business centres. Other agencies will be launched in the United States and Korea.

Chinese PM Wen Jiabao’s visit to Poland in late April 2012 confirmed that Poland and China are getting closer to each other. During his three-day stay in Poland, the last stage of Mr Jiabao’s European tour, which along with Poland included, Iceland, Sweden, and Germany—the Chinese PM appeared at the PolishCentral Europe-China Forum in Warsaw, a gathering of over 1,400 business people and government officials from Central and Eastern Europe to underline the importance of the region in shaping the Chinese foreign policies. ::

Polish-Chinese relations

The Chinese market is for resolute and determined entrepreneurs Andrzej Pieczonka, First Counsellor, Trade and Investment Promotion Section, Consulate General of the Republic of Poland in Shanghai

field. Regional cooperation is also burgeoning, if only to mention - in the area covered by the Consulate General - Shanghai’s cooperation with the Pomorskie Province and the relations of the Jiangsu Province with the Małopolskie Province.

Entering into a strategic partnership with China and taking into account several Polish enterprises successfully functioning on the Chinese market we might see as a kind of El Dorado.

It doesn’t seem we can just yet... China has never been an El Dorado for Polish exporters, except for such sectors as the copper and mining-equipment industry. What’s best is still ahead of us. Gradually, some Polish products such as foods, jewellery, and handicrafts are making their way onto the Chinese market. A shift in lifestyle is happening in China. The internal market is very large and absorptive. The increase in internal consumption, in accordance with the current administration policy, is one of the drivers of economic growth. Until today, China was far from The Promised Land for Polish exporters, particularly those exporting consumer goods, but I’m convinced they can become this. Chinese society’s material progress, especially on the east coast, constitutes a great export opportunity for Polish goods. This would make Poland as a brand more recognisable and improve our export performance. The visibility of a given trade mark is what shapes the tastes of Chinese consumers and influences their shopping decisions. Polish goods and brands are still not sufficiently recognised in the country of Confucius. Our export profile that has been shaped over the last few decades pm

What is China’s view of Poland?

We have very good administrative and political relations between our countries today.

The necessary basis favouring the intensification of economic cooperation has been created, although we still have a lot to do in this respect. An increase in activity is noticeable, as evidenced by the rising number of Chinese missions to Poland, and the increasing interest in exports to China among Polish companies. It was not without reason that in April 2012 Premier Wen Jiabao chose Warsaw as the venue to present his programme for Central Europe, the 12 Chinese propositions to promote and develop cooperation with Central and Southern European countries in terms of the economy, science, and culture. The Chinese generally adopt a regional approach in their foreign policy, and that is also how they see the whole of Central Europe. Poland has the potential to be a strong leader in this pm

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involves intermediate goods and machines, which are by definition only known to a small group of consumers. Currently, it is important to reach a wide group of end users for whom Poland is primarily the birthplace of Chopin and Maria Skłodowska-Curie and not an exporter of marketable goods. The participation of our country in Expo 2010 Shanghai took to China some knowledge about Poland and its economic potential. It was a massive success that really influenced the way Chinese people think about Poland. Over the six months of the Expo, the Polish pavilion was seen by 8.5 million Chinese visitors! However, if we want to stay in their memory, we need to put an even greater emphasis on promotion. These are tasks both for the immediate future and the years to come, especially now as the market competition is growing rapidly. More and more companies have to include the Chinese market in their export strategies.

You said that Polish food products are slowly becoming visible in China. In what other sectors and fields can we cooperate?

There are a few fields which exhibit a potential for cooperation. One of them is advanced technologies. China follows a precisely-defined, clear, and transparent path laid down in 5-year plans. Besides specifying the projected economic growth rate, the 2011-2015 socio-economic development plan for China also presents the prospective development directions for the country. A number of technological fields were singled out where China should definitely achieve the most rapid advancement. These include IT software, renewable energy, and, generally, environmental-protection measures (including municipal pm

Polish-Chinese relations

services), biotechnology and biopharmacy, alternative car drives, and advanced machine structures. I’ve only mentioned a few of the fields where close cooperation is possible. As we know, Polish diplomacy is implementing the Operational Programme Innoviative Economy measure 6.5.1 led by the Ministry of the Economy. With the participation of entrepreneurs, the Ministry has identified the fields that Poland will be promoting globally. In China we are focussing on the promotion of, mining equipment, food products, jewellery, cosmetics, yachts, and biotechnology. We are combining promotional measures to “cement” the reputation of the already-known industries with advertising new market products sought by Chinese customers (such as cosmetics for women). Also, the measures taken, within the framework of the “Go China” website, are meant to provide Polish entrepreneurs with the necessary information about the conditions for entering the Chinese market, so that we can convince them that China is not just a major global exporter but also a rapidly-developing market of several hundred million consumers.

China is a huge market, but also a huge competitor. The Polish global companies, the champions, are doing well on the Chinese market. However, when SME’s make a play for it, problems appear.

That’s true, but the cooperation of small and medium-sized enterprises is vital. They pm

dominate the structure of the Polish economy and they determine the level of our export activities on EU markets. In China, because of the distance, culture, business style, and different approach to the business category of “time”, the bar is set really high for small European companies. Numerous books and guides for them are appearing, describing how to cooperate with Chinese companies, but we have to remember that no one has ever learned how to do business properly from a book, even if it’s a very good one.

The Chinese market is very peculiar and you have to “touch” it to understand. Of course, we have to admit that such a survey of the Chinese market involves costs, which are considerable for SME’s. Polish companies usually meet their Chinese partners at trade fairs in Europe. A lot of contacts are established on- line. This, however, means that you have to figure out this partner later, get to know him better. As a Polish institution, we are taking actions to determine if a given company is formally registered and to find out its profile. Then you need to see this partner in action, you have to go there, talk to him, visit his office, and exchange opinions about cooperation. A reliable partner is the crucial precondition to achieve any success in China; it’s worth investing time and money to get to know him really well. Success in exports usually comes to those companies which have a stable financial position.

It’s engraved in the Chinese mentality that

they need to meet their business partners in person. Trade success is made by people, not labels. You have to establish a good rapport, meet, see each other, exchange views which sometimes have nothing to do with business, so that a certain confidence has the chance to appear. Without doubt, the Chinese market is for resolute and determined entrepreneurs.

China is a great place for those who are bent on success, but also organisationally and financially prepared to pursue long-term cooperation with a Chinese partner, who is far away both in geographical and cultural terms.

Success in China requires time. You need to be consistent and patient, which is often in stark contrast to what really happens when Polish entrepreneurs go to China for 2-3 days and want to “take care of all matters” as fast as possible. The problem is definitely also a cultural one, but first and foremost financial.

One solution is to take part in a programme provided by the Ministry of the Economy and some government agencies (PAIiIZ and PARP), in which you can obtain co-financing for your trade mission to China. This will enable you to establish first contacts, which are facilitated by our Consulate and other institutions. But from then on you are on your own. Nobody can replace the entrepreneur in his or her visit to China, during talks and at the signing of contracts -I hope that you’ll reach this stage. Some of the information I’ve mentioned here can be found on our website: www.shanghai.trade.gov.pl. ::

Shanghai

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Polish-Chinese relations

Protection of intellectual property is essential for the development of Polish-Chinese economic cooperation Alicja Adamczak, Ph.D., President of the Polish Patent Office

T

he visit of Polish President Bronisław Komorowski to China in December 2011 and the visit of Chinese Prime Minister Wen Jiabao to Poland in April 2012 marked a new stage in the building of a strategic partnership between the two countries. This is expected to strengthen Polish-Chinese cooperation in the field of investment, infrastructure and advanced technologies, as well as to promote sustainable bilateral trade and double it in the next few years.

But economic cooperation, particularly international, requires a number of conditions to be met, including an adequate legal, economic and organizational environment.

Its crucial element today is the protection of intellectual property. The implementation of legal solutions adopted in international treaties and conventions, as well as an effective enforcement of exclusive rights with available legal measures do increase security of transactions and help build trust while developing cooperation. Although the protection of intellectual property in China has a relatively short tradition - the first copyright law and industrial property law were enacted at the beginning of the 1980s - it is hard not to note that China has ever since come a long and successful way towards the construction of a modern system of intellectual property protection, harmonized with international standards. As evidenced by the statistics, an unprecedented number of over 650,000 patents were registered last year in China.

Consequently, the country has become the unquestioned leader, overtaking the United States, Japan, South Korea, as well as 38 European countries affiliated in the European Patent Organisation.

14 :: polish market :: Special Edition /2013

For several years, the Polish Patent Office has cooperated with Chinese partners, in particular with the State Intellectual Property Office of China (SIPO). Representatives of both offices have made study visits in order to exchange experience and develop joint activities to make it easier for businesses from both countries to use the industrial property protection systems. The cooperation agree-

ment between the Polish Patent Office and SIPO makes it possible not only to share expertise in the processing of patent applications and to use tools facilitating the conducting of patent research, but also carry out joint initiatives aimed directly at businesses in both countries. An example of such a project is the Visegrad Group international forum “Intellectual property and business. How to effectively conduct business and investment activity in the Chinese market,” organized

last October in Warsaw at the initiative of the Polish Patent Office and SIPO. Mechanisms, regulations, and practices related to the protection and enforcement of exclusive rights in China were a valuable message for our businesses and will undoubtedly contribute to deepening mutual economic relations and building the strategic partnership between the two governments. The event was extremely successful and will have its second edition organized jointly by the two offices in November in Beijing. The forum’s theme will be conducting innovative activities in the Visegrad Group countries by Chinese companies in cooperation with local partners. The aim of both offices is to make this forum a permanent item in the calendar of common events. This way, Poland would be another partner – after the European Patent Office, Japan, South Korea and Mongolia – for SIPO to organize bilateral conferences on the intellectual property protection.

It should be stressed that in the context of the position of the Chinese economy in the world, as well as the dynamic development of the Polish-Chinese economic relations one of the lines of action of the Polish Patent Office is to monitor important aspects of the intellectual property protection in foreign markets, including China, in close cooperation, of course, with the State Intellectual Property Office of China. The activities carried out so far, as well as those planned will certainly prompt devising solutions conducive to investments and economic cooperation being today the most dynamic element of the Polish-Chinese relations. ::

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Polish Market round table

Polish Market round table 《波兰市场》杂志圆桌会议

“Polish Market” together with Dąbrowski Finance once again organized a debate on the Polish-Chinese economic cooperation. The participants of the debate were: Olgierd Dziekoński, Secretary of State in the Chancellery of the President of Poland, Herbert Wirth, President of KGHM, Krzysztof Domarecki, President of the Supervisory Board of Selena, Wojciech Krystyańczuk, President of MBL Poland, Andrzej Szumowski, Vice President of Pernod Ricard Poland, Marek Tukiendorf, Rector of the Opole University of Technology and Dariusz Tokarczuk, Managing Partner at Gide Loyrette Nouel law firm. 《波兰市场》杂志（“Polish Market”）与《东布罗夫斯基财经》杂志（“Dabrowski Finance”）再就中波经济合 作组织了一场圆桌会议。参加会议的嘉宾有：波兰总统府国务秘书Olgierd Dziekoński、KGHM公司总裁Herbert Wirth、Selena公司总裁Krzysztof Domarecki、MBL波兰公司总裁Wojciech Krystyańczuk、Wyborowa公司总裁 Andrzej Szumowski、奥波莱工业大学校长Marek Tukiendorf以及Gide Loyrette Nouel律师事务所执行合伙人 Dariusz Tokarczuk。

The participants were welcomed to the workshop by Krystyna Woźniak-Trzosek (“Polish Market”) and Jaroslaw Dąbrowski (DF). 《波兰市场》杂志的Krystyna Wozniak-Trzosek和《东布罗夫斯基财经》杂志的Jaroslaw Dabrowski接待了参加辩论的嘉宾。

Krystyna WoźniakTrzosek, Editorin-Chief of “Polish Market”: The de-

bate topic is not accidental. We believe that it is worth discussing the PolishChinese cooperation in the context of the strengthening

16 :: polish market :: Special Edition /2013

of bilateral relations in recent years. It could be seen during the visit of President Bronisław Komorowski to China in December 2011 that was crowned with the signing of a strategic partnership agreement. Earlier this year, the Ministry of Economy announced the continuation of the “Go China” programme. We meet at a time that is also important for China, with an economic downturn on the one hand, and economic reforms (including a 5-year economic plan for 2011-2015) and power shift on the other hand. And what is the situation like in Poland? We managed to avoid recession thanks to favorable changes in the foreign trade structure. It is increasingly believed that foreign trade is and will be the Polish

economy driver. Let me stress that we will address today not only economic, but also cultural and social aspects of the bilateral cooperation. When asked why he buys rice and flowers, Confucius said: “I buy rice because it keeps me alive, and flowers are what makes life worth living.”

Krystyna Wozniak-Trzosek指出： 选择这样的讨论主题并不是偶然的。我们认为， 在近年来加强波中双边关系的背景下讨论波兰和 中国的合作十分必要。2011年12月，科莫罗夫斯基 总统访华期间，与中国签署了战略合作协议。今年 上半年，经济部宣布将继续其“走向中国”的计划。 我们这场讨论所安排的时间对中国来说也同样具 有重要意义，原因是一方面是经济下滑，另一方面 是经济改革（包括2011-2015的五年经济规划）和国 家领导人换届。波兰的状况又如何呢？多亏了外贸

Polish Market round table

结构的有效转变，我们避免了经济衰退。越来越 多的人认为，外贸会成为波兰经济发展的主要驱 动力。今天我要强调的是，外贸不仅促进了经济的 发展，还促进了文化和社会方面的双边合作。当孔 子被问到为什么买大米又买鲜花时，孔子说： “大米 能延续我的生命，而鲜花使生命具有了价值。”

Jarosław Dąbrowski, the founder and managing partner in Dąbrowski Finance,

for his part, referred to the report “Trade and Investment in China”: Unfortunately, facts make us realize where Poland’s economy is when it comes to Polish-Chinese relations. Although the situation is getting somewhat better, the place we hold in terms of the exports volume to China certainly does not reflect Poland’s economic potential. Sixth largest European economy, Poland ranks only fourteenth among exporters to China.

Polish exports to China are a mere about 1% of the total export volume. Our main export product to China is copper, which makes up as much as 33.5% of the trade volume. Let us be honest, it is good that KGHM blazes a trail for other Polish companies wishing to enter the Chinese market. However, in order to be able to better reflect Polish economic potential in China, our export structure needs to be more diversified in respect of highly processed goods. Food is today our main export asset on European markets, but sadly not in China. I am talking about food because without significant financial outlay and investment, both in engineering and in hightech industry, it is difficult to gain a strong foothold quickly. And with food it is possible to achieve fast growth. Obviously, this is just an example, but I think that there are many similar cases that give room to maneuver, to mark Polish presence on the Chinese market.

As for the trade balance, the current situation is very unfavourable for Poland. Polish imports from China are almost 10 times more than exports. Do pay attention to the enormous discrepancy between exports and imports. Reversing this proportions seems unlikely without an increase in Polish exports and support from the government. Polish companies do have great potential. The crisis has slowed the growth of imports, but basically not much has changed. Cheaper Chinese goods will find their way to the EU market unless we block them by imposing duties and fees.

In my opinion, the main objectives of Poland’s economic policy are increasing the export volume, improving its structure and striking the import-export balance. I think that it is an extremely important issue to examine by research institutions and a serious challenge for businesses, their owners and managers.

When it comes to access to capital, Polish companies are not as highly capitalized as German, American or Scandinavian ones.

Financing investments is not easy today, and therefore it is trade and not capital investments that can be a very interesting area for Polish companies. We will have to wait for significant Polish investments in China to materialize, Selena and Kopex being exceptions, not a trend. When it comes to the Chinese investment volume in Poland, it is expected to be growing, though not dramatically, because Poland is a convenient destination for China to pursue expansion in the EU. Huawei is a good example of it. We should simply make sure that these investments are beneficial for Poland. Let them be followed by job creation, new technologies implementation and respect for Polish law and business running rules. The case of will be then a one-off stumble rather than a rule.

Let us hope it will be so!

Jaroslaw Dabrowski的讲话主要涉及的是“中国 的贸易和投资”报告： 遗憾的是，当我们关注到波中关系时，才意识到 波兰的经济状况。尽管情况有所好转，但对中国的 出口量仍不足以反映出波兰的经济潜力。波兰虽然 在欧洲经济排名第六位，但其向中国的出口量却仅 排第十四位。 波兰对中国的出口只占总出口量的1%。我们出口 中国的主要产品是铜，占了出口总量的33.5%。坦白 地说，KGHM公司确实为其它想要打入中国市场的波 兰公司探索出了一条道路。然而，为了能够在中国更 好地体现波兰的经济潜力，在提供高质量产品的前 提下，我们的出口结构需要更加多元化。目前食品是 我们在欧洲市场的主要出口产品，但可惜的是在中 国情况则不然。我之所以谈到食品是因为如果没有 较大的财政支出和投资，想要在工程和高新技术产 业很快找到强大的立足点是很困难的。然而食品却 可以实现快速增长。虽然这只是一个例子，但我认 为类似可以改进并反映波兰在中国市场存在的例子 还会有很多。 至于贸易平衡问题，目前的情况对波兰很不利。 波兰从中国的进口量约是出口量的10倍。我们一定 要注意到这出口和进口之间的巨大差异。没有出口 的增长和政府的支持，扭转这一比例几乎是不可能 的。波兰公司固然还有很大的潜力。危机减缓了进 口的增长，但没有产生根本性变化。除非我们通过 征收关税和其它费用来加以阻止，否则中国的廉价 商品终将进入欧洲市场。 在我看来，波兰经济政策的主要目标是增加出 口、改善结构和实现进出口平衡，这对科研机构来

说是一个非常重要的课题，对企业、企业家和管理 者来说是一系列严峻的挑战。 谈及资本，波兰公司不像德国、美国以及斯堪 的纳维亚的公司那样高度资本化。资金投入在今天 看来并不是一件容易的事情，因此对波兰公司来说， 贸易是比投资更有吸引力的一个领域。我们必须等 待波兰在中国的重要投资结出硕果，Selena公司和 Kopex公司只是例外而不是方向。而中国在波兰的 投资总量虽不会大增，但预计还会有所增长，因为 波兰是中国在欧盟寻求扩展的一个便利的落脚点。 华为公司就是一个很好的例子。我们首先要确定 的是这些投资对波兰是有利的，要将他们纳入创 造就业，使用新技术，尊重波兰的法律和商业规 则的轨道。我们期待着会出现这样的结果！ The first to take the floor was Olgierd

Dziekoński, Minister in the Chancellery of the President of Poland:

The visit of the President of Poland Bronisław Komorowski to China in December 2011 was undoubtedly a turning point. Firstly, because the strategic partnership declaration was signed.

Recognition of Poland as a strategic political partner is of great importance. The subsequent visit of China’s Prime Minister Wen Jiabao came as a result of the enhancement of bilateral relations and the cooperation agenda released during his visit in Warsaw provides for Poland to be the focal point of China’s relations with Central and Eastern Europe.

It is worth noting that the measures proposed by Wen Jiabao start to crystallize slowly. A good example is the establishment of an investment cooperation fund between China and the countries of Central and Eastern Europe with the budget of USD 500 million in the first phase of its operations. The fund’s operator is China Exim Bank. It is the Chancellery of the President of Poland that arranged a meeting between the representatives of China Exim Bank and Bank Gospodarstwa Krajowego (BGK). As declared by the Chinese, the fund will be launched and registered in Luxembourg. However, we would like it to operate, in terms of management, from Poland. The question that arises in connection with the fund is how far it will be possible to apply, for specific investment projects, technologies that are simply best from the business point view rather than use solutions originating from one single country.

The second issue raised by the Chinese partners is a credit line. Wen Jiabao announced Special Edition /2013 :: polish market :: 17

Polish Market round table the opening of a special credit line worth USD 10 billion, part of which will be spent on loans on preferential terms to be used for joint projects in areas such as infrastructure, technology and green economy.

However, from the Polish point of view, as reported by Bank Gospodarstwa Krajowego and the Ministry of Finance, the project is less interesting because it is related to a single-country technologies, which does not seem to be a good solution for building symmetrical cooperation. I would like to point out one more thing. The Chinese side is obliged to make all the necessary effort to counter the trade balance, to bridge export-import gap.

The general political and financial framework has been outlined and it will work.

Now it is up to entrepreneurs to reach China with their businesses. And should there be any signs indicating that economic activity is disturbed, then the state institutions, including the Chancellery of the President, will intervene to launch appropriate procedures.

Pursuant to the regulation of the Council of Ministers, the Interdepartmental Team was established for the Coordination of the Development of the Strategic Partnership between the Republic of Poland and the Republic of China. The Team is chaired by the Deputy Foreign Minister Janusz Pomianowski. Its Vice Chair is Ilona Antoniszyn-Klik from the Ministry of the Economy. The Chancellery of the President is represented by myself. This initiative is important for stabilizing the Polish-Chinese economic relations.

First of all, it aims at coordinating policies and creating a harmonized instrument of the Polish-Chinese cooperation. 首位 发言人 波 兰 总 统 府 国 务秘 书 Ol g ie r d Dziekoński指出： 2011年12月，科莫罗夫斯基总统对中国的访问 无疑是一个突破。首要的是波中签署了战略合作 伙伴协议。将波兰视为政治战略合作伙伴具有非 常重要的意义。随后，中国总理温家宝访问了波兰， 巩固了波中双边关系和合作，也提出了中国与包括 波兰在内的中东欧国家的12点合作方案。 值得注意的是，温家宝总理提出的措施已经 开始逐渐具体化。一个很好的例子便是在合作的 初期阶段建立一个预算5亿美元的中国与中东欧 国家投资合作基金，由中国进出口银行运营管理。 波兰总统府为此特意安排了中国进出口银行代表 和BGK银行代表的会晤。据中方所述，该基金将在 卢森堡注册建立。但是，我们希望基金的管理由波 兰运作。该基金还伴随着一个问题，就是对于具体 的投资项目来说，能有多大的可能去使用那些从商 业角度考量的最佳技术，而不是使用出自单独某个 国家的解决方案。 由中国合作伙伴提出的第二个问题是信用额度。 温家宝总理宣布设立一个价值100亿美元的特别信 用额度，其中一部分将作为基础设施、技术和绿色

18 :: polish market :: Special Edition /2013

经济等领域联合项目的优惠贷款。然而从波兰的角 度看，跟据BGK银行和财政部的报告，该项目并不是 很有吸引力。因为它只涉及到单独某国的技术，而 就对称合作而言，似乎并不是一个好的方案。我还 想多指出一条，中方有义务尽全力平衡贸易，也就是 说缩小进出口差距。 政治和经济的总体框架已经构建并将付诸实 践。现在，企业家到中国扩展业务并不是孤军奋战。 一旦出现任何经济活动受到干扰的迹象时，包括总 统府在内的国家机构将会启动相应的程序进行干 预。 根据部长会议的规定协调波兰和中国的战略伙 伴关系的跨部门团队已经建立。该团队的主席是外 交部副部长Janusz Pomianowski，副主席是经济 部的Ilona Antoniszyn-Klik，总统府将由我来代 表。这一举措对稳定波中经济关系非常重要。首先， 它的目的是协调政策，建立波中合作的协调工具。 The Ministry of the Economy released earlier this year the list of the most promising countries in terms of Polish exports. Surprisingly, the list did not include China, but countries such as Brazil, Algeria, Kazakhstan, Turkey and Canada. So should China continue to be considered a priority? That is the question we asked to President of KGHM Herbert Wirth who is the “Polish champion” when it comes to the Chinese market. 今年年初，经济部发布了波兰出口最有前景的 国家名单。令人惊讶的是，名单中有巴西、阿尔及 利亚、哈萨克斯坦、土耳其以及加拿大，却没有中 国。那么，中国是否应该继续被视为一个重要国家 呢？这个问题我们应该留给KGHM公司总裁Herbert Wirth。谈及中国市场，他是“波兰冠军”。

Herbert Wirth, President of KGHM:

Considering our products, especially cathode copper, China is a very important, and I must say, very stable partner for us. A partner that is predictable.

We should remember that China covers 40% of the global demand for copper, which makes it the world’s first consumer of this commodity.

Despite the economic downturn, mutual contacts are not at risk.

The most important is economic growth. If China makes it at around 7% or higher, then there is no point in being afraid of the shortage of demand for copper. However, we have not managed to meet all goals in China. What have we failed to do successfully in China?

To take up business outside the company we have in Shanghai. Another thing is that we have prepared an investment package for that company in Lower Silesia, including especially coking coal exploitation. We

look forward to receiving feedback and see if this offer is attractive. It is our second, after copper, important commodity.

Equally strategic in relations with our Chinese partners is science, and more specifically the research into coal gasification.

China has acquired some coal gasification technologies. And here, despite a number of concerns coming from different horizons, I think it is a good idea to take advantage of it. Of course, it would be necessary to adapt these technologies to Polish conditions, both environmentally and socially.

We actively participate in the promotion of Polish culture, especially music, but also Chinese music in Poland. KGHM cooperates with the Polish-Chinese Foundation and the Ludwig van Beethoven Association, which is chaired by Elżbieta Penderecka. This is the basis for good relations, because business is built on trust. We paid, together with China Minmetals Corporation, for the renovation of the Chinese Avenue in Łazienki Królewskie last year. The outlay for the revitalization amounted to approx. PLN 5 million.

One thing should be stressed: over the next few years China will maintain the leadership position and its copper consumption is likely to remain at a 40% level. Therefore, it is worth taking care of the Chinese market. In recent years, KGHM made an IPO at the Shanghai Futures Exchange (SHFE) with cathode copper being the only copper product registered at SHFE. It must be remembered that in order to register cathode copper KGHM was required to meet a number of prerequisites, such as obtaining a recommendation from the SHFE members.

Herbert Wirth指出: 关于我们的供货，特别是电解铜，我必须承认， 中国是一个非常重要和稳定的合作伙伴，而且是 个长期的伙伴。我们应该知道，中国对铜的需求 量占全球总量的40%，是全世界此类商品的第一大 消费国。尽管目前世界经济不景气，但双方的合作 并没有出现危机。 目前最重要的是经济增长。如果中国能保持经 济增长率在7%左右或者更高的话，那么我们就完 全不用担心铜的需求量过小。然而，我们还没有全 力地去实现所有的目标。要想在中国成功开展业务 我们还必须扩展公司在上海以外的业务。此外，我 们已经准备好了下西里西亚公司的投资计划，特别 是焦煤的开采。我们期接着反馈，看看这一计划是 否具有吸引力。毕竟，焦煤是我公司仅次于铜的第 二大重要商品。 与之具有同等战略意义的是和中国合作的 科研项目，更确切地说是煤的气化研究。中国已 经掌握了一些煤的气化技术。尽管此时此刻仍 有来自不同方面的疑虑，但我认为对这一点加以 利用是一个好主意。当然，还需要根据波兰的环 境和社会条件来改进这些技术。

Polish Market round table 我们积极地在中国推广波兰文化，尤其是波兰 音乐，同时也在波兰推广中国音乐。KGHM公司与波 兰-中国基金会和由Elzbieta Penderecka主席领 导的贝多芬协会开展了合作。这些都是良好的伙 伴关系，毕竟商业往来从信任开始。去年，我们与 中国五矿集团公司合作并支付了瓦金基公园中国 林荫路重建的费用，总支出约500万兹罗提。 还有一点需要强调的是：未来几年，中国将保持 领先地位，其铜的消费量可能一直维持在40%的水 平。因此，中国市场值得很好的维护。近年来，KGHM 公司在上海期货交易所（SHFE）以电解铜做了一个 IPO，成为在上海期货交易所注册的唯一铜产品。 为了注册电解铜，KGHM公司需要满足一些先决条 件，如获得上海期货交易所会员的推荐。 The characteristics of the Chinese market was given by Wojciech Krystyańczuk, President of MBL, a company that has many years of experience in China: MBL是一家在中国具有多年经验的公司，总裁 Wojciech Krystyańczuk对中国市场的特点概括 如下： The company I represent has been present in China for 15 years, which allows it to position itself as an expert on Far Eastern markets. The company’s peaked its operations between 2005 and 2006, and ever since has registered a steady dynamic development. The Asian market is a very important outlet for us, not least owing to the changes that it is undergoing.

Our decision to go in for business in China in 1998 was guided primarily by cost-efficiency. At that time cost in China were much lower than in Poland and other European countries. Wojciech Krystyańczuk pointed to social changes going on in China: Now, however, the Chinese market is evolving, and cost optimization is no longer a priority. The key issue has become to maintain a competitive advantage on the internal market. China’s production is comparable to that of some European countries. There are significant lifestyle changes going on in China currently that strongly affect economic developments, including our business. MBL is a manufacturer of rehabilitation equipment and electro-mechanical solutions used for rehabilitation purposes.

As we started our operations in China, most of our production was exported to Europe and Asian countries. In the years 2005-2006 the approach to care of the sick and the disabled in China has changed dramatically. In addition, there has been a significant improvement in the income situation of the

Chinese people. As a result, a large domestic demand emerged for the rehabilitation equipment. In the first place it was newly created private luxury hospitals that ordered our products. Today, more and more of our products can be seen directly on the streets. The local market as such is changing insofar as it undergoes transformation from the producer’s market into the final consumer’s market.

China will remain a key market for us for many years. The size of this market (1.3 billion people!) as well as the social and economic changes make it even more attractive for our products. Under current circumstances, no company can afford ignoring the Chinese partner or the Chinese market, which is becoming an increasingly important recipient of high quality goods. As a matter of fact, the transformation that China is currently going through is purely commercial. For many years the country has been admired for its history and ancient philosophy. Meanwhile, today’s generation draws far more attention to the brand of the product than to the philosophy of Confucius. This can be seen directly on the street or among our employees. Dynamic changes occurring on the Chinese market are definitely changing the way it is commonly perceived. Every entrepreneur intending to cooperate with Chinese partners should consider that. This applies especially to businesses that are interested in sales rather than in production.

It is hard not to agree with Wojciech Krystyańczuk. His view, supported by solid experience, is shared by analysts who say that China wants to revive the internal market rather that export. If it is the case, does it mean that a golden era has begun for companies seeking to export to China? 目前，我所代表的公司在中国已经有15年历史了， 可谓是远东市场的专家。2005和2006年，公司业务 达到顶峰，此后一直保持稳定的发展。亚洲是我们 重要的出口市场，不仅是归因于它目前正在经历的 变化。 1998年，我们公司决定到中国开展业务，主要 是因为当时中国的成本远远低于波兰和欧洲其他 国家。Krystyańczuk在谈到中国社会的变化时说： 随着中国市场的发展，成本效益已经失去优势了， 在中国国内市场保持竞争优势才是关键所在。现在， 中国产品已可以和一些欧洲国家的产品媲美。中国 生活方式的显著变化正影响着经济的发展，当然也 影响着我们的商业活动。MBL公司是一家康复设备 和康复设备机电设计的制造商。 当我们在中国开始业务之初，我们的大部分产 品都出口到欧洲和其他亚洲国家。2005-2006年期 间，中国照顾病人和残疾人士的方式已经发生了巨 大变化。另外，中国人的收入状况也有了明显改观。 因此，中国的国内市场显现出对大量康复设备的需 求。起初，只有新建的豪华私人医院订购我们的产 品。如今，我们的产品已经在普通市场上销售。中国

国内市场的快速发展，使它由生产者的市场最终转 变成了消费者的市场。 多年以后，中国仍将是我们公司重要的市场。13 亿人口的市场规模以及经济和社会的变化更吸引我 们发展在中国的业务。就目前的情况来看，任何一 家公司都不敢轻视中国合作伙伴和中国市场，因 为它越来越成为高品质商品的重要客户。事实上， 中国目前所经历的转型是纯粹的商业转型。多年 来，这个国家一直因其悠久的历史和古老的哲学而 备受仰慕。而今天的这一代人更关注商品品牌，而 不是孔子的哲学。这无论是在街头巷尾还是在我们 的员工中间都是显而易见的。中国市场发生的快速 变化无疑正改变着市场信息的传统获取方式。每一 位有意与中国伙伴合作的企业家都应好好考虑这一 点，尤其是那些打算将业务重点放在销售而非生产 方面的企业。 想不同意Wojciech Krystyańczuk的观点都很 难，他的观点源自他丰富的实践经验，得到了分析 家的认同：中国想要振兴的是国内市场，而不是出 口。如果是这样的话，那是不是意味着我们企业 向中国出口的黄金时期到来了呢？

Krzysztof Domarecki, President of the Supervisory Board of Selena:

In the industry I represent - construction materials – such an export is unlikely. Over the last 25 years a large number of local firms were set up in China that compete very well with each other both domestically and internationally. China’s imports of construction materials are very limited.

The main reason is high cost competitiveness of Chinese manufacturers, which makes China a major exporter of construction materials. Apart from some high-tech niche products, the cost of transport and tariff barriers cause that virtually no building materials are imported from Europe. Therefore, to be able to operate in the Chinese market, you should produce construction materials locally. The construction materials market is 90% made up of the Chinese products. Some large American or European companies are involved too.

The Chinese market is changing fast. The standard of living is growing and so are the labour costs. From the point of view of Selena’s strategy it is a very advantageous phenomenon. What makes our strength in China is technology and advanced products, and our competitive weakness is costs which are higher than our Chinese competitors’. In this sense, the growing affluence of the Chinese is a step in the right direction. The Chinese buy products made of quality materials, so not the cheapest.

Special Edition /2013 :: polish market :: 19

Polish Market round table The construction sector in China is highly correlated with GDP and the state’s credit policy. It is now in a slowdown phase. The Chinese market is bound to pick up and grow, though not at such a rate as it did in the first decade of 2000.

Let us remember that the world has entered the phase of promoting national products and economic patriotism. A great example is the United States, where companies are encouraged by the government to move their production back to the country. The campaign seems to bear fruit, and many U.S. companies close or limit their operations in China while transferring production to the United States or Mexico. The real scale of U.S. disinvestment in China is much higher than the media say.

Selena’s manufacturing facilities in China are primarily focused on the sale on the Chinese market, but they also develop exports in three areas: Asia, eastern Russia, as well as both Americas. Production in China and sales in the United States is still cheaper than the production in Europe and sales in the United States. However, some American customers prefer to buy Selena’s products from our plants in Europe. Why? Because American consumers value products “Made in Poland” much higher those “Made in China”. 在我所代表的建筑材料行业，向中国出口几乎 是不可能的。在过去的25年，大量的中国本地公司 成立，它们在国内和国际市场上都能充分地相互竞 争。中国极少进口建筑材料。 这其中的主要原因跟中国制造商竞争的成本太 高有关，这使得中国成为了建筑材料的主要出口国。 由于运输成本和关税高，除了一些高科技的小众产 品外，中国几乎没有从欧洲进口建筑材料。因此，为 了能在中国市场上较好运作，应在中国当地生产建 材。中国公司占据着90%的建材市场，一些大型的美 国和欧洲公司也有份额。 中国市场正在迅速变化，生活水平和劳动成本 正逐渐提高。从Selena公司的战略角度来看，这是 一个极为有利的现象。我们在中国的竞争优势是技 术和高端产品，而竞争的劣势是成本高于中国同行。 这样的话，中国的日益富裕是朝着有利于我们的方 向前进了一步。中国人将要购买优良材质的而不是 价格最低的产品。在中国，建筑行业和国内生产总 值以及国家的信贷政策息息相关。现在该行业正 处于缓慢发展阶段。中国市场还会反弹回升进入 增长，尽管增长速度不会像2000--2010年那么快。 众所周知，世界已经进入了促销国货和经济爱 国主义的阶段。美国就是一个很好的例子。美国政 府鼓励公司将产品生产转移至国内。这项政策已初 见成效，许多美国公司停止或限制其在中国的业务， 转而投向美国本地和墨西哥。美国在中国的真正撤 资规模远比媒体报道的要高。 Selena公司在中国生产的设备主要在中国市 场销售，也出口到亚洲、俄罗斯东部以及美洲。同 样是在美国销售，中国制造的产品仍然比欧洲制 造的要便宜一些。但是，一些美国客户更倾向于在

20 :: polish market :: Special Edition /2013

欧洲分公司购买Selena公司的产品。为什么呢？因 为美国消费者对“波兰制造”的商品比“中国制造” 的商品更加认可。 Interestingly, the President of MBL confirms that products “Made in China” rarely enjoy recognition. So perhaps it is worth envisaging the export of Polish products and services on a larger scale? What is important is that Poland is gaining momentum as a brand and this should be taken advantage of. Wyborowa SA is one of the most recognizable brands in China. 有趣的是，MBL公司总裁也证实了“中国制造” 的商品很少得到认可。我们也许可以大胆设想，在 不久的将来波兰也能大规模出口产品和服务。其实 重要的是波兰正在为作为一个品牌积蓄能量，这才 是要充分利用的优势。Wyborowa公司在中国就是最 被认可的品牌之一。

Andrzej Szumowski, Vice President of Pernod Ricard Poland:

Looking at the percentage share of Wódka Wyborowa, our flagship brand, in the Chinese market, we have good reason to be happy, because the share ranges from 15% to 20%. However, in volume terms, our standing is still far from being satisfactory. This is due to the potential of the Chinese market. Other players have been much more successful. For example, the French cognac brand Martelli is 50%, that is or about 10 million liters, marketed to China.

The same is true of Ballantines or Chivas whiskey brands. It should be noted that the more expensive the product is, the better it is sold. It is obviously owing to Chinese consumers’ systematically rising standard of living. Cultural issues are not without significance either. The Chinese are now at the point in which Russians were in the early 1990s, with their tendency to be ostentatious about wealth.

The Chinese are increasingly well-off and able to afford luxury imported products, including alcohols. China is a promising market also for Polish vodka. Additionally, the newly established definition of Polish vodka is likely to help distinguish our national drink and increase exports. I agree with Minister Olgierd Dziekoński that, as far as political aspect is concerned, a lot has already been done in Polish-Chinese relations. Political relations between the two countries are better than ever in the past.

Now it is time to perform economically. Polish exporters should open themselves to the

Chinese market. Neither the government nor the Polish diplomacy can do it for them.

What are the drawbacks? Certainly more can be done to promote the Polish economy in China. No programmes such as “Go China” will ever be successful unless the government and businesses join efforts to support them. Not only Beijing and Shanghai, but also the Chinese province should be given consideration. It is a huge outlet for Polish products and an important investment destination of Polish companies. It is worth remembering that in China county cities count 5 million residents.

The Polish diplomatic units responsible for business promotion should be given a boost.

A few workers in Beijing and Shanghai are definitely not enough to handle the Chinese market. A good form of promotion, cheap, effective and fast, is through culture and cuisine.

Wódka Wyborowa is one of the most recognizable Polish brands in China. This is because it is available on the shelf, that is closest to the customer and the consumer.

Personally, I think that there is not enough Polish food in China. Why, then, are Polish brands lacking in Chinese stores? It seems that the main reason is that Polish producers are unable to come to an agreement. In such a large-scale market that China is, even the largest Polish food producer is not able to meet the demand of the Chinese market. Polish producers and exporters should therefore come together and develop a joint strategy.

Andrzej Szumowski表示: 纵观我们波兰的 旗舰品牌Wyborowa伏特加酒在中国市场中所占的 份额，从15％到20％不等，我们有充分的理由感到 高兴。然而，就中国市场的潜力而言，其总占有量却 远远不能令人满意。相比之下，市场上的其他竞争者 则更成功。例如，法国的柯纳克白兰地品牌Martelli占据了市场的50％，共约一千万升销售给了中国。 同样成功的还有Ballantines和Chivas威士忌品牌。 值得注意的是，越贵的产品销售越好，这显然要归 功于中国消费者持续提高的生活水平，文化因素也 起了重要的作用。现在的中国人，就如同20世纪90 年代初的俄罗斯人，有着炫耀财富的倾向。 中国人越来越富裕，有能力购买包括高档白酒 在内的进口奢侈品。对波兰的伏特加酒而言，中国 有着广阔的市场前景。此外，新确立的波兰伏特加 的定义也有助于提升我们的国酒的知名度，并增加 出口。我同意Olgierd Dziekoński部长的话，波中 关系在政治层面已经有了很大发展，目前两国关系 比以往任何时候都好，正是发展两国经济合作的最 佳时机。波兰的出口商们应当把自己开放给中国市 场。在这点上，无论是政府还是波兰外交部门都不 能替代他们去做。 迄今为止，所做的工作有什么缺点吗？当然，为 促进波兰经济在中国的知名度，可以做的事情有 很多。只有政府和企业共同努力给予支持， “走向 中国”的计划才能够取得成功。不仅是北京和上 海，中国其它的省份也应该被考虑在内。中国是

Polish Market round table 波兰产品的一个巨大出口国，也是波兰公司的一个 重要的投资目的地。要提醒大家注意的是，中国的 县级城市就有5百万居民。 波兰负责商业推广的外交机构应获得更多的支 持。北京和上海的几个工作人员远不足以操控中国 市场。文化和美食是一种成本低、效率高和速度快 的促销模式。 Wyborowa伏特加是波兰在中国最认可的品牌之 一，它出现在商场的货架上，是最接近顾客和消费 者的商品。但我个人认为，中国市场上的波兰食品 远远不够。那么，为什么中国的商店里缺乏波兰的 品牌？看来最主要的原因是波兰的生产商和出口 商无法彼此达成一致。在中国这样一个巨型的市 场，波兰最大的食品生产商竟然无法满足中国市 场的需求。所以，波兰的生产商和出口商应该联 合在一起，制定一个共同的战略。 The Presidents of the companies operating in China have repeatedly pointed to the need to promote China in Poland, as well as to better understand the Chinese market and Chinese way of thinking. Professor Tukiendorf, the Rector of the Opole University of Technology, which is involved in the cooperation with the Confucius Institute, an institution set up to promote Chinese culture, reflected on the dynamics of interest in China. 在中国的波兰公司的经理们多次强调在波兰宣 传中国的需要性，强调需要更好地了解中国市场和 中国式思维模式。奥波莱工业大学的校长Tukiendorf教授曾参与了孔子学院的合作项目。孔子学院 是宣传中国文化的机构，反映了中国的利益动态。

Prof. Marek Tukiendorf, Rector of the Opole University of Technology:

I am involved in the Confuciu s In stitute project, which is sponsored by the Chinese government to the amount of USD 2.5 billion in 2013. The Confucius Institute is not only an education centre, but also a venue to learn about traditions and customs of the Middle Kingdom. The Confucius Institute in Opole aims to develop and strengthen academic, economic and cultural ties between Poland and China. The Opole centre is one of 300 such units in the world that form together an international network called Hanban (the Chinese National Office for Teaching Chinese as a Foreign Language) headquartered in Beijing. It is a good path to follow.

We should make every effort to become a platform for mutual understanding and dialogue between our cultures.

心，在这里还可以学习到中国传统和习俗。奥波莱 孔子学院的目标是发展和加强波兰和中国之间的学 术、经济和文化交流。全世界有300多个像奥波莱 孔子学院这样的机构，这些机构构建在一起形成 了一个国际性的网络，即总部是设在北京的中国国 家对外汉语教学领导小组办公室（国家汉办）。这 是一个很好的交流渠道，我们应该努力来搭建这 个平台，以促进我们两种文化间的相互理解和对话。 So we know what cooperation between Poland and China looks like in the education field.

In 2010 the number of students grew to 1035 which is 3 times more and is expected to reach almost 2000 by the end of this year. Nearly 300 Rectors of Chinese and polish universities got together and worked hard to develop students exchange programmes, and programmes of exchange between our universities. But we have to remember how important in business is also law consulting.

Dariusz Tokarczuk, who represents Gide Loyrette Nouel Law Office say: Gide Loyrette

Nouel has been advising many clients in Asia, in all areas of business law, for nearly 30 years. In our Asian branches we employ more than 150 people, including 70 western, Chinese and Vietnamese lawyers working in Beijing, Shanghai, Hong Kong, Hanoi and Ho Chi Minh City. GLN’s integrated Asia team, led by Rebecca Silli, advises customers in English, Chinese, French legal issues. GLN’s expertise in Hong Kong covers diverse areas of corporate law, including mergers, acquisitions, foreign investment, infrastructure projects, as well as finance and banking.

我们了解了波兰和中国在教育领域的合作模 式。2010年在波兰学习汉语的学生人数增长到了 1035人，是以前的3倍多，我们预计到今年年底将达 到近2000名学生。中国和波兰的近300所大学的校 长们齐聚在一起，努力地开发学生交流项目和大学 间的交流项目。但是，我们必须牢记法律咨询在商 业合作中的重要性。 Gide Loyrette Nouel律师事务所的代表Dariusz Tokarczuk表示： Gide Loyrette Nouel律师事务所已经在商业法 的各个领域为许多在亚洲的客户提供了近30年的 服务。我们在亚洲分支机构的员工超过了150人，其 中包括70名来自西方国家、中国和越南的律师，这 些分支机构分布在北京、上海、香港、河内和胡志 明等城市。Gide Loyrette Nouel律师事务所的 亚洲团队由Rebecca Silli带领，为客户提供英语、 汉语和法语的法律咨询。其在香港的法律事务所 还提供并购、收购、外商投资、基础设施项目以及 融资等不同领域的法律咨询。 Although our guests represent different types of business, they argued that what is the most important in exports is our brand Poland! We have to promote Poland. But firstly we-polishhave to believe that: ”It’s good, because it’s Polish”. And then say it to the whole world. 虽然我们的来宾代表着不同类型的公司，大家 一致认为最重要的是出口我们波兰的品牌！我们必 须宣传波兰。但是，我们波兰人首先要自己相信： “ 因为它是波兰的，所以它是好的”，然后再将它传遍 世界。 ::

Chinese translation: Jiang Huijuan, lorajiang@hotmail.com Yingnan Sun, yingnansun@gmail.com

Marek Tukiendorf教授表示： 我参与了孔子学院的项目，中国政府在2013年对该 项目投资了2.5亿美元。孔子学院不仅是一个教育中 Special Edition /2013 :: polish market :: 21

Polish-Chinese economy

China – the promised land for Polish entrepreneurs?

Jarosław Dąbrowski, the founder of and managing partner in Dąbrowski Finance, talks to Ewelina Janczylik- Foryś.

the scale of this imbalance proves that Poland missed the early years when it came to the construction of a stable trade position in China, and yet the Chinese made the best of their trade opportunities in Poland. Today, what is really important is reducing this discrepancy, and the substitution of low-process goods, such as copper, which amounts to nearly 40% of Polish exports to China, with highly-processed goods and products, such as machinery and equipment, and consumer goods. Food is also a very important element whose current overall significance is small, but we know that food is and will be Poland’s chief export product.

Chinese furniture is usually made of rattan, bamboo, or of a peculiar material manufactured in China. Such imports are obvious there is no paradox here. Poland’s most important task is to increase exports to China; however, this will be impossible to achieve without the State’s support. Polish companies will always appear weaker than western companies due to the requirements of the Chinese market. In China, competition is very strong, both between domestic and foreign businesses. If Poland fails to help its business grow on the Chinese market, it will not be able to achieve great success there.

The priority areas of development in China are the IT sector and the space industry.

Where does this space trend come from?

I don’t see great opportunities in this field for Poland. We are fascinated by Polish technologies, but from the global-market point of view, and taking into account the technologies that are being developed by other developed economies, I don’t think we can conquer the Chinese market with this, unless we manage to fill some product and technology niche.

Why aren’t Polish exports growing as quickly in terms of value? Because Poland manufactures niche goods! We lack companies in the main areas of processed products, which create the dynamics and volumes of exports to China, such as cars, aviation equipment, and medical technologies. There are no companies in Poland that could be global technology leaders, with enough resources to win over this vast market. The only company that can be seen as a “global champion” is KGHM. However, the products manufactured by this company are not highly processed. In the machine and high-tech industries there is not a single Polish company that would be a strong player with the capacity to invest substantial financial resources in trade and production in China for several years. Polish exports to China should be composed of niche, pm

I found one thing in the report that puzzled me. Namely, in the “Top 5 products” section, exports are a duplicate of imports. And these are machines and electrical devices, furniture, bedclothes, and mattresses.

Yes, at the first glance this does look like a paradox. Usually, the machines and devices that we buy from China are less processed technologically than those which we send there. There are a number of technologically-advanced areas in Poland in certain market niches. These goods, machines, and devices are of high quality, and they could be exported to China. Today, their share in the total volume of trade with China is too small.

We do not sell products manufactured in the aviation industry, medical equipment, or advanced IT solutions. Despite the fact that these areas are developing in Poland in a very interesting manner, they do not play a vital role in trade. We should set ambitious goals for the Polish economy, and, if we cannot achieve them, then we will sell low-processed goods, like copper. When it comes to furniture, Polish products are modern, interestingly-designed, presentable, and positioned in the segment of reasonably-priced products. We should put more effort into their promotion. pm

Exports from Poland to China are running at the level of 1%, and imports to Poland from China at 10%. Will this ever balance out?

It is very likely that we will not balance out these values quickly. However, it is important whether the difference is 1 to 10 or 1 to 5. As a matter of fact, almost all countries in the world, excluding those dealing in raw materials, have a negative balance of trade with China. China in the contemporary globalised economy has build up a strong competitive advantage. This country is the “world’s factory.” It still pays off to manufacture in China, hence its competitive edge, which is reflected in its exports. Poland’s situation is not very different from the situation in other countries; however, this constitutes a serious imbalance from the point of view of Polish development ambitions and the possibilities of the development of the Polish economy. But let me repeat this, this imbalance is commonplace throughout the world. However, pm

22 :: polish market :: Special Edition /2013

Polish-Chinese economy

specialist, often high-quality, but moderately-priced products. Polish products have to be price-competitive to conquer the market, which doesn’t mean they should be cheaper, otherwise the Chinese will not associate them with quality.

What a paradox. In Poland, we do not associate Chinese products with top quality as well.

This is how it is. The Chinese and the Poles kick-started their free-market economies more than 20 years ago. Others, on the other hand, have been continually developing for almost 200 years. This makes a difference, and somewhat bring Poland and China closer. pm

So how did this happen that they are the 2nd powerhouse in the world, and we are where we are?

If we examine China in terms of GDP per capita, and average this out with the whole economic well-being, this is a moderatelywealthy country. China is not uniform. Its eastern coast is comparably wealthy with some EU countries; however, the centre and the west are poor lands. Despite this, China is a rapidly-developing State. There are three reasons for this. The first is economies of scale. This country is building an economy multiplied by 1.3 billion citizens. One cannot be indifferent to such a market. China currently prides itself on being the second largest economy in the world. What we will see in the future is the gradual increase in the wealth of the people of China. This is great news for Polish companies, especially those which offer interesting customer products – from LPP to Dr Irena Eris. This will be the direction for the future, because China will steadily shift from being “the world’s factory” to “the world’s consumer.” pm

And what about the other two reasons?

The second element is saturation with technologies. This is already happening, but we cannot equivocally state that China has become a high-tech country. While it is true that technologies are being developed, only some of them are proprietary. The rest is transferred from abroad. We have to acknowledge this without any doubts. A similar situation has occurred in Taiwan and Japan. Each Asian economy started by copying western technologies, to which it added its own engineering ideas. The Chinese are doing this too. In 10-15 years China will become an independent engineering leader.

The third reason involves geopolitics. The Chinese will build their status in Asia to become a hegemonist, the unquestionable pm

number 1. Using their economic, political, and military tools, they will keep this position and aspire to being a global superpower.

And thus we have obvious competition with the USA, Japan, and the EU over the dominant position in the economy of the 21st Century.

There is a lot at stake in this game, including the economy. Poland has to find a better spot for itself, and in doing so we cannot clash with China. On the contrary, we have to prepare ourselves for cooperation on partnership terms, both in trade and in investments.

Are we ready for this? Or maybe the situation is we don’t fully understand Chinese culture. Are we well-suited to such an expansion?

Undoubtedly, knowledge about China is limited in Poland. There are many stereotypes and wishful theories. We talk a lot about China, but there aren’t many people who understand this country. The Chinese are absolutely pragmatic. If you fail to recognise this you won’t do good business with the Chinese. An example of this can be the establishment of cooperation with Poland as a strategic partner.

I believe this choice was based on the political and economic stability of this new Member State of the EU, and on its geographical location. This is the way Poland was chosen.

No emotions, pure business.

We should recognise all the positive activities which have occurred in recent years in Polish-Chinese relations. The Polish Information and Foreign Investment Agency (PAIZ), the Polish Agency for Enterprise Development (PARP), and the Chancellery of the President, have been very active in taking us closer to the Chinese market. The number of economic missions which have taken place since the Expo in Shanghai is impressive. This is very important, as the Chinese market will grow rapidly in the immediate future, and create a consumer society. Yet the knowledge we possess now is insufficient from the point of view of medium-sized Polish companies with export ambitions. We need more technical support; otherwise, we won’t succeed in conquering China. pm

It appears to me that this is the first time the activities of State institutions have been noticed and appreciated...

We need to see some progress. I’ve been visiting China on a regular basis for three years. I have been there several times, and I can see the situation’s changing. After many years of stagnation in our relations, China has finally started to prioritise them. However, the diplomatic and promotional potential of Poland, which can help businesses pm

win over the Chinese market, seems insufficient compared with the potential of countries like Germany, Sweden, and Finland. The staggering success of Germany is facilitated by the work of several hundred experts and diplomats. And this is what Poland is lacking. If we were to achieve success, it would be only after creating a group of professionals aimed clearly at doubling or tripling exports to China in a couple of years. Perhaps it would be worth establishing an institution supporting exports, an institution that would purposefully and consequently support the promotion of exports from Poland. The third issue is finances. No Polish bank which is actually managed in Poland is present in China.

As we speak, there are two branches of Chinese banks present in Poland – The Bank of China and ICBC. Therefore, I think that this challenge is still to be taken up by our banker colleagues. I find the question whether if this is the right moment, or we should wait, a bit more inappropriate. Should we experience full synergy between enterprises, public institutions, and banks, the effects will follow.

To conclude, could you give some advice, based on your experience, to businesses interested in the Chinese direction?

I look with optimism at the growth of the Chinese market in the near future, and at the consumer market that is emerging there.

I think the strengths of the Polish economy, in both industry and consumption, and also the entrepreneurial spirit of Polish managers, can contribute to the growth in Polish exports to China. These exports will grow if Poland makes better use of financial and State institutions created to develop exports. In order to achieve sustained success in China, we need several things. Firstly, good reconnaissance. It is important to make use of the knowledge of external experts while relying on our own strengths. We need this potential to be objectively measured, and, should it be necessary, critically assess the potential and limitations of Polish companies on the Chinese market. What’s more, our activities need passion. Without it we won’t succeed on such a demanding market as the Chinese. When we meet restrictions, we need passion to overcome obstacles. Further, we need consequence and patience. MBL has been building its position in China for 12 years, and Selena for 6! Many Polish companies want to achieve spectacular success quickly. This is not possible. And, of course, money is the key. Without big money there is nothing to be found in China, unless you want to go sightseeing, which I recommend doing, as it is a beautiful country. :: pm

Special Edition /2013 :: polish market :: 23

Polish-Chinese economy

Trade and investments in China Agata Geppert

T

he Poland-Central-Europe-China Economic Forum, which featured around 1,400 businesses from China, Poland, and Central European States, took place in April 2012. The Prime Minister of China, Wen Jiabao, made a special appearance at that Forum. One of the declarations that he made was about doubling trade between China and the CEE States by 2015, and also launching an investment credit line in the amount of USD10 billion.

The balance of trade with China has been negative for many years, and what is even worse, this trend is getting stronger year after year. Exports to China are growing; however this growth is not as dynamic as that of imports from that country. Even worse, as much as one third of the export value comes from the sales of copper, a low-process raw material. The situation is similar regarding

have a shot at the Chinese market, which is the fastest-growing luxury-goods market in the world, and which is not fully saturated. What’s more, the Chinese think highly of the products manufactured in European countries, so Polish companies should not feel inferior to our European colleagues, and should intrepidly start to brand themselves in China. Such Polish brands as Wyborowa, Dr Irena Eris, and W. Kruk (whose products have already achieved the highest level of recognition on the Chinese market, i.e. imitations of Kruk’s jewellery have begun to be produced). Amber Foods Polska opened its first Polish restaurant, Sarmatia, in Foshan, in May, 2012.

When it comes to Polish direct investments in China, there are not many of them.

According to the Ministry of the Economy, in 2011, there were over 200 companies with Pol-

In 2011, there were over 500 companies with Chinese capital registered in Poland, 430 of which were small companies employing up to 9 people. Perhaps the best known “heartland” of Chinese companies is Wólka Kosowska located near Warsaw. In 1994, the Chinese Trade Centre was established there. The investor, GD Poland Investments Sp. z o.o., a company with Hong Kong, Polish, and Chinese capital, has invested in it over EUR150 million in total. Currently, the centre is located on nearly 40 hectares of land, with buildings with an area of 150 thousand square metres.

The centre encompasses over 1000 lessees of ca. 10 different nationalities. The most numerous group is the Chinese.

The largest Chinese investment in Poland in recent years was the purchase of part of the Huta Stalowa Wola (company) by Liu Gong in 2011. The transaction has been valued to

450

200

114.6

125

127.1

303.7

350 300 250

100

200

75

150

50

100

25

50

0

0

188.7

Source: the National Bank of Poland (NBP)

175

180.5

150

389.9

400

9 the majority of products exported from Poland to China – these are usually raw materials and semi-finished products; there are too few finished goods that are unique and could be sold to the Chinese consumer under their original Polish trademark.

Polish luxury products, such as alcohol, jewellery, confectionery, and cosmetics, could

24 :: polish market :: Special Edition /2013

ish capital registered on the Chinese market, and these were mostly small trading companies. Polish enterprises are reluctant to locate their production in China (among the brave there are, Selena and MBL), and would rather sign cooperation agreements and import finished products.

ca. USD70 million. However, the Chinese – and the Poles too – are very cautious when it comes to direct investments, and acquire enterprises usually when they want to gain access to their unique technologies. Regarding conquering new geographical markets, they first try to secure contracts from China, optionally through small branches. More often

Polish-Chinese economy

2000

1.2% 1.0%

1500

1000

0.8%

Value of exports from

0.6%

Poland

0.4%

to China and the

0.2%

percentage of total

0.0%

exports (USD million)

500

0

value of exports in USD million

5

% of total exports

7

6

9

8

10

11

% of total exports

CHINA

20 000

10.0% 8.0%

15 000

6.0% 10 000

Value of Polish imports from

4.0%

Source: the Central Statistical Office (GUS)

China and the

5 000

2.0%

0.0%

0

value of exports in USD million

5

percentage of total imports (USD million)

% of total exports

7

6 CHINA

9

8

10

11

% of total imports

Top 5 product groups exported to / imported from China (I-IIIQ 2012) Exports

Imports

Copper 33.4% Electric machines and appliances and their parts 10.2% Aircraft and their parts 4.9% Furniture, bedding, mattresses, racks, lamps, etc. 4.4% Cast-iron and steel products 3.9%

Electric machines and appliances 29.1% Clothes and clothing accessories (not knitwear) 5.0% Furniture, bedding, mattresses, racks, lamps, etc. 3.3% Clothes and clothing accessories (knitwear) 3.3% Toys, games and sports products 2.9% Special Edition /2013 :: polish market :: 25

Polish-Chinese economy

can we see Chinese entities entering Polish tenders – for example the Shanghai Electric Group, the largest Chinese manufacturer of equipment for the power industry and the general contractor for power units, which is currently applying for three contracts in Poland, the biggest of which is the construction of the Northern Power Plant for Kulczyk Investments. The value of the project amounts to PLN12 billion. The second contract amounts to PLN5 billion and includes the construction of a power unit in Wola near Pszczyna. It is a joint project with Kompania Węglowa. Finally, the third contract is a tender (currently

frozen) by Energa for the construction of a power unit in Ostrołęka (ca. PLN7 billion).

Among the Chinese companies present on the Polish market, we cannot forget about Huawei- a leading global supplier of IT solutions. The company launched its operations in Poland in 2004, and in 2008 the Warsaw branch of this company became the headquarters for 24 States in Central-Eastern Europe and Scandinavia.

Therefore it comes as no surprise that Chinese banks are following in the footsteps of Chinese enterprises, and through this implement their policy of keeping in touch with the

Bank of China The world’s No. 7 in capitalisation among banks (2011), and No. 9 in terms of Tier 1 Capital (2011)

The Bank of China is considered to be the oldest Chinese bank – it was founded in 1912 as the “successor” of the Government Bank of Imperial China. Up to 1948 it served as Central Bank. Later, after the end of the Chinese Civil War, it was split in two – the first part is still operating on the continent under the name of The Bank of China, and the other was transferred to Taiwan, together with the Kuomintang’s Government (where it is operating under the name of The Mega International Commercial Bank).

Currently BOC is the second-largest creditor in China when it comes to the number of credits granted and the 7th-largest bank in the world in terms of market capitalisation. It has its branches on every continent, owing to which it is one of best-known Chinese banks.

Since 2006, the shares of The Bank of China have been listed on the stock exchanges in Hong Kong and Shanghai.

Agata Geppert Research & Analysis Manager at Dąbrowski Finance Started her career in 2008 at Bank DnB NORD. Graduated from Warsaw School of Economics, specialisation Finance and Accounting. An expert on the reforms of the Chinese banking system.

26 :: polish market :: Special Edition /2013

business developments. More or less at the same time, when Wen Jiabao was declaring the strengthening of Polish-Chinese relations, the two largest Chinese banks – The Bank of China and The Industrial and Commercial Bank of China – opened their branches in Warsaw. They will offer support to Chinese entrepreneurs entering or already functioning on the Polish market. ::

The Industrial and Commercial Bank of China

The world’s No. 1 in capitalisation among banks (2011), and No. 6 in terms of Tier 1 Capital (2011)

The Industrial and Commercial Bank of China was established in 1984 to become the fourth of the big four, and the only one established during the financial-sector reform (launched after 1978). The bank became responsible for approving short and medium-term investment loans. These functions were previously performed by The People’s Bank of China (the Central Bank of China). Already since its establishment ICBC has been the largest bank in China. The value of its assets in 1992 accounted for 31% of total bank assets in the country.

ICBC carried out 47% of the domestic transactions of the so-called specialised banks (all State commercial banks and other private and public commercial banks), except for the BOC. On 27 October 2006 ICBC made its debut on the Hong Kong and Shanghai stock exchanges, gathering a capital of USD21.9 billion, which was the world record for another 4 years (until the debut of the Agricultural Bank of China). IPO (in January 2006) was preceded by introducing three strategic investors to the bank: Goldman Sachs (USD2.6 billion), Allianz (EUR824.7 million) and American Express (USD200 million). Their goal was to improve ICBC’s credibility among foreign investors and to bring in western know-how to the bank.

Polish-Chinese economy

Poland – worth investing in Dariusz Tokarczuk, Managing Partner Gide Loyrette Nouel

P

oland remains one of the most favourable countries in Europe for foreign direct investment, largely due to its economic stability and continuing economic growth. This attractiveness is boosted further by the fact that Poland has the highest amount of European Union structural funds in 2007-2013, has negotiated a positive outcome with respect to the new EU budget perspective until 2020, and has various local incentives in place.

The Polish Government is promoting foreign investments as important contributors to the development of various economic sectors, in particular manufacturing, IT, telecommunications, transportation, banking, telecommunications and environmental protection.

In recent years, many regional outsourcing and R&D centres have been established in Poland due to this friendly economic climate, as well as the availability of cheap and well-educated human resources.

Foreign investors in Poland may obtain various investment incentives, including: government and national programmes designed to assist investment and employment, income tax exemptions in Special Economic Zones, real estate tax exemptions, preferential tax deductions for the purchase of new technologies, and technological parks offering infrastructure and R&D companies.

This is not to say that investors, including Chinese ones, do not encounter any barriers.

Quite often we hear that certain aspects of our investment incentives system, the labour regulations and tax law are considered as obstacles. For instance, in terms of governmental grants, investors have criticised the restriction on combining a government grant with other instruments of support, the very strict criteria for potentially applying for government grants, as well as limited budgets and long procedures. Regarding the Special Economic Zones, most negative opinions concern the time restrictions in their operation, as well as the exclusion of activities classified as financial, the inability to off-set losses, as well as the restrictive criteria of including private land to economic zones. Investors have also underlined the low competitiveness of the Polish Labour Code compared to the rest of Europe, calling for the need to increase the flexibility of solutions in respect of adjusting working time and its organisation to the actual needs of employers like for example the application of longer settlement periods, or the introduction of individual working time accounts. Another barrier is the tax system in Poland, especially the multitude of amendments to acts and conflicting interpretations of the tax authorities issued in similar cases.

For instance, investors have expressed doubts regarding taxation on employees’ travel to the employer’s facility, the tax on medical packages purchased by the employer for their employees, and on the possibility of establishing ‘VAT groups’.

Having said that, we still believe that Poland is an attractive market for foreign investments, and given the economic uncertainties that still remain both in America and Europe, it is clear that China is becoming an even more attractive potential partner for Poland. For obvious reasons, there are many more Chinese investments in Poland than Polish investments in China, and this will continue. This is not only due to differences in terms of the potential between the two countries, but also, as far as Polish investments in China are concerned, due to the fact that China is a difficult market where it is not enough to know the local legal and tax system to succeed. Polish investors struggle

to establish personal contacts and overcome language and cultural differences.

So far, the most significant Polish transaction in China was the conclusion of a contract for the delivery of copper between KGHM Polska Miedź and China Minmetals, a deal in which our firm was involved. There are also some minor examples of investments, made

by Kopex, Bioton, Amber Foods Poland and Polfa Łódź mainly in the energy, pharmaceuticals and natural resources sectors. Other companies, such as Spółdzielnia Mleczarska Mlekovita, a Polish producer of milk and dairy products and Konspol, a Polish producer of poultry, have announced intentions to open factories in China.

As our firm has offices both in Poland (Warsaw) and in China (Beijing, Shanghai and Hong-Kong), we are closely following what is happening in terms of business relations between China and Poland. We believe that we are very well-placed to assist Polish companies interested in investing in China, as well as Chinese investors attracted by the Polish market. ::

Special Edition /2013 :: polish market :: 27

Polish-Chinese economy

Passion, mission and challenges Wojciech Krystyańczuk, President of MBL Poland, talks to Ewelina Janczylik-Foryś.

Let’s start with a few words about MBL Poland…

MBL Poland is a component manufacturer and technological-solutions designer for the wheelchair sector. I can safely say that we are one of the world leaders in our field.

We cooperate with all the major companies in the business, in Western Europe, the United States, Canada and the whole of Asia. We are one of the few Polish companies operating on a global scale. The company was established in Denmark in the 1980s, then in Poland in 1992 and in China in 1998. In 2011 the management of the company was completely relocated to Poland, but manufacturing continued in both Poland and China.

Our company specialises in metal treatment, mostly steel, aluminium and titanium. The latter material is especially hard to treat; that’s why we’re even more proud of the fact that we’re one of the few European companies with the technology facilitating its application.

The current market trends suit our company – even though mass production is still located in China, production requiring complex technologies and the highest quality stays in Europe. Moreover, we are clearly seeing a return of some of the production to Europe, due to the better possibilities of maintaining control over each stage of the technological process. pm

Does it mean that the employees in Piotrków Trybunalski don’t have to worry about lack of work?

I won’t lie, currently we are recording the highest number of new projects in the history pm

28 :: polish market :: Special Edition /2013

of the company. Initially, a project begins in the R&D department. Next we create prototypes, which then are carefully tested and put into production. Additionally, we try to take advantage of the trend involving the return of production to Europe – up till now we have optimised manufacturing through the highest possible automation and decreasing the involvement of the human factor. Currently, we also intend to develop those parts of production that require operating, such as assembly lines, which show a huge demand in Europe.

Therefore, we are not afraid of losing orders.

Speaking of production in China, it is hard to avoid the subject of copying. Are you afraid of your products being copied by manufacturers in China?

Of course the copying of patterns is omnipresent. At each fair we find various products created following our project. However, our long history, supported by the application of advanced technologies and high quality, allows us to stay at the top, which means we don’t have to be afraid of copying. Especially because of the fact that a huge asset of our company is our comprehensive approach towards building a value chain. MBL isn’t concentrated on the production of one element, but it provides its customers with complete technological solutions composed of many perfectly fitting components. We provide ready-made wheels, brakes, frames – completely assembled and fitted together. A wide variety of assortments and the possibility of ordering a complete technological solution are very valued by our customers. Due to the fact that we produce individual components pm

ourselves, by using cutting-edge technologies we are in complete control over the whole technological process and we can guarantee the high quality of the final product.

Besides, you don’t want to copy just anything, but only the best solutions.

Copies are not a threat for us. Clients in our sector expect long-term cooperation. The manufacturers of copies usually create only the first series correctly, to lure the client in.

Afterwards, the quality drops, which is not something the customers in the United States or Western Europe can allow. The contractors from the United States expect us to certify each component separately. We are audited at least twice a year, and to pass it we are required to maintain a very high quality and show a high level of control over the technological process. The certification process in practice eliminates random suppliers from the market.

Additionally, the process of the co-creation of technological solutions along with the client, the assurance of supervision over the technological process and logistic cooperation mean the client receives the whole system, not only one of its elements. It only strengthens our bond with the customer, creating a unique system of cooperation.

At the same time, our location in the centre of Europe is very advantageous for our clients. For those from Europe, the guarantee of quality and delivery time plays the most important role. The quality of our products makes the MBL package very competitive.

The location in Poland additionally guarantees us a price advantage. It’s connected not pm

Polish-Chinese economy

only with labour costs, but also with the flexibility of the workforce, the possibility of acquiring new employees or the possibility of restructuring business centres. As a result, the final production cost remains considerably lower than in Western Europe.

Currently, we are observing the development of personal marketing, that is, adapting products to the clients’ individual needs. Does MBL offer products prepared for a specific client?

MBL’s policy has always been to assume an individual approach to a client. At first, we applied two methods for developing projects: the first method was to implement a ready solution proposed by the client; the second was to design from scratch and implement a technological solution according to the client’s concept. Currently, we are trying to cooperate with all our clients and take into account the expectations of the end user, not only concentrate on the technical aspect of the undertaking, as before. The synergy of the technological competence of MBL with the knowledge of the client about the end user and his needs allow us to create unique solutions. That method of implementing projects is what constitutes our advantage over the competition. pm

partial access to good-quality products was available even before. Today the brand pressure is not as strong as in China, where products are often bought to show off. Poles prefer investments in durable goods, household appliances or cars. When it comes to health, they don’t seek specialist advice for long and at the same time expect the State to provide free healthcare, especially in the case of serious disease or disability.

In China MBL products are generally popular. Is that also the case in Poland?

In Europe we are a provider of technological solutions for manufacturers of final wheelchair equipment. In Poland our products are available via our clients who export our rehabilitation equipment to Poland (mainly from Germany). Poland is one of the few countries where we haven’t established extensive cooperation with manufacturers. It is largely a result of the Polish healthcare and rehabilitation system - which is very unstable and unstructured, and the rehabilitation process is not considered a priority. Our solutions, while they are technologically perfect and increase the quality of the rehabilitation process, are considered to be too expensive to be refunded. pm

The West is highly developed, but development trends can be seen in other regions of the world.

We are currently seeing positive changes on many non-European markets. A perfect example is the Middle East or the quickly developing Brazil. MBL increasingly often cooperates with global clients, which is rarely seen in Poland. We managed to completely utilise confidence from the owners. Sadly, there are very few people in Poland open to new challenges and prepared for that type of work, so it wasn’t easy.

cannot be learned.

They can be developed by creating a suitable environment. Creativity is one of the key elements lacking in Polish employees. It would also be best to work on developing international imagination. If we want to function on the global market, we cannot be limited by time differences, other cultures or religion. We are searching for flexible, mobile people who won’t have a problem easily operating in completely diverse cultures, from China to the United States. Additionally, Poland lacks well-educated middletier management staff, who could take the weight of supervising the processes occurring in the company, especially with regard to the management of human resources. For that you need coaching and motivation skills, not only technical knowledge. This is exactly what our managers lack.

What decided then about relocating the management centre to Poland?

I believe that Poland needs global companies in order for the country to develop. MBL tries to find the best staff, train them and create the best environment for work and the development of creativity. It’s the only direction which will provide a better chance for the future. pm

pm

During the debate you pointed out the fact of the change of lifestyle in China.

Yes, definitely. China is developing rapidly and becoming a highly-consuming country.

Its residents more often expect high-quality products, guaranteed by a known brand. At the same time, the improving standards of living and openness towards cooperation with the West are changing the attitude of people towards the disabled as well as health and hygiene. Thanks to that our products more often reach the local Chinese market, newly-built luxury hotels and clinics, instead of being exported, as was the case previously.

You need to pay attention to the fact that for many years movement-impaired people were not welcome on the streets. There was also no infrastructure which would allow them to function in the outside world. However, it doesn’t mean that there were no disabled people. Currently, the situation has started to change, due to which the demand for our products has increased. pm

Is lifestyle in Poland changing as well?

Are the changes similar in both countries?

It is difficult to compare Poland and China in that regard. In Poland, the economic changes started over 20 years ago, while pm

Does MBL make use of the achievements of Polish scientists as part of its scientific potential?

We still have a bit to do in Poland when it comes to the field of innovation and creativity. Running a global company I have a lot to do with engineers from many countries. Our specialists are great, they can realise a given project and implement proposed solutions.

On the other hand, the specialists from other countries can create a project from scratch or even completely modify it. They are creative and limitless and that’s what creates the best technological solutions. pm

pm

Creativity and innovation are traits that

How would you encourage Polish companies to undertake global challenges?

It is necessary to strongly promote Poland on the international arena, as is the case with other countries. Currently, the only promotion of our country is done by athletes. In international ad spots we are presented as a folksy country, we promote agriculture and our local groceries. However, the football fans who came for the European Championships were surprised by our country, the existing infrastructure and its modernity. We lack the presentation of Poland as a country of new technologies, IT and digitalisation.

Extremely important for the development of Polish companies abroad is the help of State institutions and diplomatic posts. Which at this time is non-existent. pm

Does it mean that we can develop to be a leader in our region?

I believe so. Poland has a huge potential for development. Unfortunately, we also have a tendency to waste our chances. With the size of our country, a consuming internal market and an economic situation better than that others, we have a huge chance to become a leader of the region. It’s high time we proved it. :: pm

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Polish-Chinese economy

China as one of the key markets for Kopex Group

Important company data expressed in percentages: The share of exports in the income of Kopex Group in 2012 amounted to almost 38%. The income from exports in 2012 amounted to PLN 765.4 million.

Andrzej Jagiello, President of the Board of Kopex SA

K

nowledge of the local legal and tax system is not enough to achieve success in China. It is necessary to have personal contacts and knowledge of their customs and behaviour. In China, people don’t trust a company - they trust a person.

How a company representative is perceived extends to the image of the whole company.

That is why to build trust with a Chinese partner, it is necessary to maintain continuous contact. The Chinese also view contact with the same person as important. That is how you build the credibility of a company. There is no business without friendship. Lack of knowledge of the language is also often a barrier which needs to be and can be overcome. You also need to sacrifice some time to maintain relations with local and central authorities.

Trust and positive human relations are ways to succeed on the Chinese market. Building relations with the Chinese is long and hard, but worth investing in. Kopex has strengthened its position on the said market over 35 years and is currently reaping the benefits of the undertakings begun previously. A new Kopex Service Centre was opened in August 2012 in Taiyuan, Shanxi province, that along

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with the Shandong Tagao Company is creating greater possibilities for maintaining permanent relations with Chinese contractors and as expected - will successfully lead to an increased share in the market. Through such undertakings, Kopex attempts to show that it treats its Chinese contractors seriously, is

Kopex at the Shanxi Expo 2012

interested in this province, and, by offering its solutions on a given market, approaches the client by placing its representative on this market, thereby not leaving the client on its own. These are standards that the Chinese expect from a partner that treats business seriously. This is also why Kopex presents

Polish-Chinese economy

itself at numerous fairs organised in China.

At the Shanxi Expo 2012, Kopex was the only Polish company that had the opportunity to present its package. Participation in this fair is just an additional confirmation of the policy pursued by the Kopex Group - we want to grow on this market and engage in local events. The Shanxi Province - the location of the fair and the Kopex office – is third in China in terms of economic growth and is the biggest coal production base in the country.

Coal production in this province amounts to 600 million tonnes, which is approx. 10 times the amount of coal produced in Poland. Moreover, the prices of coal in this province show less downward trends than other provinces and the consolidation process of the mines, which is being controlled and implemented centrally, is well developed, probably to the highest level in the country. The consolidation process is centrally enforced for the purpose of increasing safety in the mines small and unprofitable mines, are taken over by large companies - both private and stateowned. For the large part it derives from the fact that many mines, mostly the small ones, have not installed complete longwall systems. One of the goals of opening the Kopex office in Shanxi is to attempt to increase the involvement of longwall systems (especially of mechanised longwall systems) in coal mining. To this day, approx. 30% of all Chinese mines still extract coal without the use of automatic longwall systems.

China has both private and state- owned mines. Kopex cooperates with both private and State partners. Currently, we are conducting advanced talks with a private partner who operates several mines and has a capital of approx. PLN 500 million.

All purchases in China must be conducted through the tender procedure. That is why a tender company, being a licensed State company, always calls for a tender. The substantive and technical accuracy is assessed by the representatives of the company that wishes to buy the given equipment. In general, price plays a key role. However, what is the most important is to meet the technical requirements, which are significantly higher for foreign manufacturers than their domestic counterparts. When making decisions about a contractor, the Chinese always pay attention to the balance for the last 3 years, recently-completed contracts and references. The tender documents must be prepared and filed according to the model and procedure adopted by the Chinese Ministry of Foreign Commerce and cannot deviate from

them even in the slightest. There are template models of contracts, the only variable being the technical parameters of the object of the contract. Therefore, each tender is a big challenge for a company. State institutions of the People’s Republic of China do not intervene in the contracts - it is the companies that decide what they wish to buy.

Currently, Kopex is conducting advanced talks concerning the sale of a KSW-1500EU longwall coal-cutting machine with an electric downdrive for very steep foundations - it will be the first Kopex Machinery coal-cutting machine that is specially-designed for use in such conditions (an inclination of up to 43 degrees). During the technical talks conducted last year and this year the company proved that it is capable of meeting the technical requirements of the Chinese party.

The Kopex Group is participating in the fairs where the Chinese declare the need for foreign solutions - that is for equipment that is more expensive than the Chinese equivalent, but also less faulty, more durable and longlasting as well as guarantees the effectiveness of mining. The choice of new companies,

including the Kopex Group, is decided by the discouragement of a Chinese contractor in regard to a given domestic or foreign partner, usually due to the faultiness of the supplied equipment or the long waiting period for spare parts. Therefore, in order to successfully expand on the Chinese market, the Kopex Group runs an on-site repair service, spare parts storage and continuously expands its infrastructure. The creation of spare parts storages is of paramount importance and the fast reaction time is a vital factor in providing services on a level expected by the partner. A lot of it depends on people - mutual understanding plays a vital role in the expansion on this market.

“You need to show that you are devoted, that you want to not only supply, but also be there to serve and support your customers. If someone is there one day, but gone the other, he has small chances of succeeding on that market”, in these words Krzysztof Pawlik, Director of the foreign commerce office responsible for the trade management of the Chinese market, summarised the Chinese market. ::

The KSW 1500 EU longwall shearer

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Polish-Chinese economy

FASING Group – driven by the future

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apital Group FASING Plc. with the seat in Katowice, Poland is the biggest in Central Europe and one of the biggest producers of chain assemblies in the world. Its products find the application mainly in coal extraction sector but also it produces chains for fishing, energy, cement, sugar and timber industries. The Group is dealing in strategic centers of each industry all over the world.

Its products are applied by over 2000 users worldwide.

With its 100 years of tradition of professional work, FASING draws on its experience from technology as well as the abilities and skills of its employees. FASING’s success combines professionalism of its employees with awareness of the need of continuous investments in machinery park as well as high quality staff. This process is a long-term and continuous policy of the Group.

Nowadays the company develops rapidly.

Over 30% increase of the production rate is noted every year.

In the following years FASING wants not only to continue this strategy, but also strengthen it by: • further improvement of the Group’s companies; • implementing the best policies as well as implementing advanced methods of constant measurement of actions and reports, which should lead to cost reduction; • supplying environment friendly products which quality is a result of close partnership and wise contacts with clients and suppliers; • applying new generation machines and tools worth 12,5 million EUR capital spending;

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• implementing the Innovative Products Program Further grow of export sales to Commonwealth of Independent States, China, India and South America markets.

FASING is the leading exporter of round link and flat link chains and scraper conveyors accessories. FASING presence on global markets has been built and supported by its representatives through their participation in international fairs and exhibitions on many continents and also thanks to product promotion and constant product range extension. Goods manufactured by FASING Capital Group are used in 33 countries around the world and the Company has 60 regular customers abroad. Worldwide success of FASING Capital Group is a result of high product quality proven by numerous certificates including renowned lifting chain manufacturer. It also gained certificates of approval for use its products on Czech, Russian, Ukrainian and Chinese market. FASING product share in market is continuously growing in such countries as : China, USA and Australia.

In the Group’s strategy there is a place for new forms of cooperation with the strategic partners on the Asian markets. Advanced works are conducted as it comes to entering the Shanghai Stock Exchange by Shandong Liangda Fasing Round Link Chains Co., Ltd. There are chances to create the production venture in Vietnam and India as well.

China is an especially important region as on the one hand is one of the biggest mining market for FASING, on the other hand it is as well a field of investments for the Group. FASING has been present on Chinese

market since 2006. It has a complex sales network, that is continuously developing.

Every year sales on this market increase about 20%. In 2012 we have noticed 30% increase in comparison with the previous year.

The examples of wider recognition of FASING brand on Chinese market are new business contacts and trade relations, especially with the company which is the part of one of the biggest mining equipment producers in the world– China Coal Technology & Engineering Group Corp.

Since 2012 the company has noticed the bigger interest from the Chinese companies as well as European organizations that are dedicated to develop Polish-Chinese relations.

It may be stated, that FASING is more recognized and its rank and position on the market is strong and stable. Very good recognition is also received by the joint project – special edition of “New Miner” newspaper, that is distributed by the company on the occasion of significant trade shows, special industrial events in China. FASING not only works of its trade position wise, but it is also engaged in promotion projects about Polish perspectives and abilities in global mining. As long-term targets, the Group intends even stronger engagement and continuation of developing Polish-Chinese investments on this market. ::

www.fasing.pl

Polish-Chinese economy

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Polish-Chinese economy

Trade with China and bilateral investments Bartosz Komasa

Trade

China is Poland’s largest trade partner in Asia in terms of total trade value and volume of imports. It is with China, of all the countries in the world, that Poland has the highest trade deficit. Poland’s situation in trade with China is disadvantageous both in terms of exports and balance.

According to data from the Central Statistical Office (GUS), in 2012 exports to China increased by 1%, reaching EUR1.359 billion, and imports grew by 3%, reaching EUR13.603 billion. Trade with China rose by 2.5% to the level of EUR14.962 billion. Poland’s trade deficit with China was EUR346 million higher and amounted to EUR12.244 billion (source: the Ministry of the Economy).

In terms of Poland’s imports, China was third, remaining behind Germany and Russia (no change), and the proportion of imports from China in all imports rose from 8.8% to 9%.

In 2012 exports to China accounted only for 1.0% of all Polish exports (no change), earning it twenty-second place (one-place drop).

Currently, there are noticeable signs of a revival, with more and more Polish companies finding Chinese partners. In 2012 exports to China came from 1963 companies registered in Poland (200 companies more than before), and the number of importers from China was 20,824 (an increase of about 500 companies).

Between 2006 and 2012 exports from Poland to China rose more than two-fold (similar to imports from China to Poland). Polish exports to China are several times higher than exports to Japan, Korea, Hong Kong and Taiwan. In January 2013 exports from Poland to China reached EUR144.5 million (a 47% increase) and imports amounted to EUR1.217 billion (an 11% increase).

As for primary products, in 2012 42% of exports were base-metal goods (mainly copper).

The exports structure to China improved – the proportion of highly-processed goods (machines, vehicles, precision goods) increased from 23.4% to 29%. The exports of agricultural and food sector goods rose for the first time in years, from 2% to 5%. This resulted

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mainly from the approval received by Polish pork to be distributed on the Chinese market. In 2013 this percentage should grow, due to the better recognition of Polish products in China, but also thanks to the increasingly-bold steps taken by Polish producers who are looking outside the EU. A revival in exports will also result from the improved economic situation in Germany, which receives one quarter of all Polish goods sold abroad. Some Polish food products purchased by German partners are re-exported to China. Too bad. Polish companies could avoid Western agents. Unfortunately, they have a very well-established, solid brand in China and long-term contracts already negotiated. Polish producers, however, should work on building direct relations with consumers in China and creating a good brand and image for Polish products.

Polish companies should show patience in contacts with Chinese partners. We should remember that Chinese distributors can choose suppliers from all over the world. In the case of the dairy sector, like for example powdered milk, they import high-quality goods from Australia, New Zealand, and the United States.

Prices are attractive because of the small distances, and preferential customs policy. Imports from Europe are looked at primarily as a way to diversify supplies and reduce the risks of becoming dependent on one partner. Such a solution proves effective in the case of natural disasters (such as a drought in Australia). Polish producers should remain humble even if they are aware of the great demand on the Chinese market. Quoting high prices, taking advantage of sudden (temporary) demand from Chinese producers for a certain product and counting on quick profits has led more than one Polish company astray. Margins should be calculated reasonably, with long-term cooperation and the market’s scale and potential in mind. The Chinese partner will appreciate this. The experience of other companies indicates that this is the way to achieve success.

In imports from China broken down into goods categories, over half are composed of

electromechanical industry goods (53.8%).

Other important categories include textiles (12%) and miscellaneous goods – including mainly toys (7.1%). Polish entrepreneurs value Chinese suppliers. The clients of our bank

Bartosz Komasa He has dealt with Polish-Chinese economic relations for 10 years now. He started his career with providing services to Polish companies at the Economic and Trade Department of the Polish Embassy in Beijing.

From 2004 to 2012, he worked for the Polish Information and Foreign Investment Agency (PAIiIZ) where he was responsible for providing services to Asian investors, especially those from China, Japan and South Korea. He specializes in training in the area of cultural differences and foreign investment.

Bartosz Komasa also advises Polish businesses cooperating with Asian companies, especially Chinese ones. He is also a former vice-president of the Forum of Young Diplomats, now a member of the Programme Council, a lecturer at the European Academy of Diplomacy and an expert for the Association of Employers and Entrepreneurs (ZPiP).

He is also a consultant for the Taiwan External Trade Development Council (TAITRA) in Poland.

In February 2012, Bartosz Komasa started work for the first subsidiary of a Chinese bank in Poland - Bank of China. He assumed the post of relationship manager and deals with market development.

Polish-Chinese economy

are satisfied with their cooperation, declaring that they always get the commissioned goods as specified in the order and on time.

When a problem appears, the solution is discussed in advance. The majority of Chinese partners are honest, reliable and more and more professional when it comes to international corporate standards, the understanding of legal requirements and trade procedures. They are also flexible in solving conflicts and negotiating payment conditions.

in the companies which are already operating on the Polish and European markets, and have local experience, and a well-explored outlet. Chinese companies are interested in joint-ventures in the machine, automotive and food sectors.

By the end of 2010, the level of Polish foreign direct investments in China had reached USD112 million. Polish companies operating on the Chinese market include Fasing, Selena, Rafako, Kopex, and Bioton. Polish enterprises

are looking for investment cooperation in the mining, pharmaceutical, construction chemicals, clothing, and food industries.

Since recently Chinese Law has allowed wholly-owned enterprises to be established by foreign entities. In spite of this, it is still recommended to cooperate with a partner, who will help with going through legal procedures, facilitate networking in the business environment, and manage contacts with contracting parties and local officials. ::

Investments

Chinese investments in Poland are trailing far behind European and American. In 2010 USD10 million-worth of FDI flowed into Poland. It is estimated that by the end of 2010 the total value of capital invested in Poland

by Chinese companies was USD328 million (EUR246 million). Chinese production facilities in Poland are mainly electronics producers. The takeover in 2012 of the Huta Stalowa Wola company by the Liu Gong company was a significant event. There will be more and more such mergers and acquisitions Poland. The Chinese prefer taking over shares ADVERTISEMENT

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Polish-Chinese economy

Pomorskie Voivodeshipa great potential to invest Interview with Mieczysław Struk, Marshal of Pomorskie Voivodeship In January, two projects carried out by the Office of the Marshal of Pomorskie Voivodeship, were honored with the prestigious title of Innovator awarded by the Adam Smith Center for the best local government’s projects.

We received awards in two categories: for the best infrastructural project and for the best promotional project. Once again did we prove that by implementing sometimes risky projects Pomorskie Region sets trends for the administration throughout the country. The best infrastructural project was the one implemented under JESSICA, a repayable instrument aimed at funding infrastructural projects that meet both public and commercial objectives. The message it conveys is the promotion of public-private partnership and greater involvement of private entrepreneurs in urban development. Funds are provided in the form of loans at a rate lower than the market price and the loan period is up to 20 years. Pomorskie Voivodeship allocated more than PLN 236 million for the implementation of the project. The winner in the category of the best promotional project is the Pomorskie Province Integrated Tourist Information System (ZSIT). The project covered revitalization of the historic Highland Gate in Gdańsk and its conversion into the Pomorskie Tourist Information Center. The regional tourism website pomorskie.travel was created. It is available in 245 touch kiosks throughout the region. ZSIT has also won the Digital Signage Trends 2012 award. Both projects were carried out under the Regional Operational Programme for Pomorskie Voivodeship 2007-2013. pm

How does the Pomeranian Special Economic Zone influence the innovation development and how does it serve local people?

Originally the Pomeranian Special Economic Zone was supposed to be a small area set up in order to revitalize the site of an pm

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unfinished nuclear power plant in Żarnowiec and to mitigate hardships of the economic transition suffered by the municipality of Tczew. Fifteen years since its establishment the zone has developed beyond our expectations. The economic zone covers four provinces and ranks among Poland’s best in terms of investment results. Its activities led to the creation of the Gdańsk Science and Technology Park and the Baltic Port of New Technologies in Gdynia. The Gdańsk Science and Technology Park offers companies modern office, laboratory and production space, where high technologies and successful businesses grow. An important driver of innovation in Pomorskie Region is the Tricity’s regular cooperation with universities and research institutions from all over Poland, which enables the transfer of knowledge and technology between universities and the business community. Pomorskie Voivodeships local government also supports young scientists, namely through the scholarship programme “InnoDoktorant” pursued for the last 5 years and intended for those who study disciplines that contribute to strengthening the region’s competitiveness. Pomorskie Region is also involved in the EU co-financed DISKE project, which is aimed at coordinating cooperation between the science and technology parks, local governments, universities and businesses in the Baltic region. The Baltic Port of New Technologies has a great potential too, as it is a unique project on a European or even world scale. The site of the former Gdynia Shipyard is being modernized and, once fitted out with new infrastructure, it will become an ideal location for logistics, production, BPO and R&D centrs, as well as for representative offices of international companies. pm

Owing to the Pomeranian Special Economic Zone, an increase was reported in the number of investment and jobs.

Are these Polish or foreign projects? Do

Chinese companies invest in Pomorskie Voivodeship?

Investors established in the Pomeranian Special Economic Zone include both Polish and foreign companies with the countries of origin such as: the Netherlands, Japan, the United States, Germany, France, the United Kingdom, Germany, Belgium, Finland, Canada, and Italy. The Chinese are not present yet, but I hope that this will change following the Poland-China Forum, as well as thanks to the contacts made by the Pomeranian Special Economic Zone with the city of Zhuhai. Let us remember that the economic zone has been chosen by Polish government as an area dedicated to Chinese investment in Poland.

1st Regional Forum Poland - China will be held on April 21-22 in Gdańsk. The location was chosen not without reason. Pomerania has a long tradition of contacts with Chinese cities; the partnership agreement with Shanghai was signed in 1985.

Our cooperation with China dates back to 1951 when the first foreign joint venture company –the Chinese - Polish Marine Company SA Chipolbrok was formed with offices in Gdynia and Shanghai. Then, in 1985, the then Province of Gdańsk had signed with Shanghai a regional cooperation agreement that was confirmed in 2005 by the Pomorskie Province. The largest in the province cities (Gdańsk, Sopot, Gdynia, Słupsk and Starogard Gdański) actively cooperate with China. Our companies successfully operate on the Chinese market, backed up by our economic representative office in Beijing. 1st Regional Forum Poland - China marks a further stage of cooperation. It is also important to note that the forum emerged as a result of Polish-Chinese intergovernmental arrangements, including in particular the strategic cooperation agreement signed by President Bronisław Komorowski during his visit to China in 2011, in which I also took part. :: pm

Polish-Chinese relations

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Opolskie - Fujian Opolskie in the heart of Europe

Wanhua Kędzierzyn-Koźle

The Opolskie Province is located in the south-western part of Poland. It directly borders with the Czech Republic. Opolskie is one of the Provinces demonstrating strong support for foreign investments.

The first investment by a company from the People’s Republic of China in the Opolskie Province was made by Wanhua and consisted of taking over the shares of BorsodChem Zrt., a Hungarian producer of isocyanates.

Wanhua Industrial Group (Wanhua), as a strategic investor, acquired full control over BorsodChem on 1 February 2011 by exercising a call option which was made available as part of the financial restructuring of BorsodChem in June 2010. Wanhua finally acquired all the shares owned by the previous majority owners of the Company - the funds managed by Permira and Vienna Capital Partners (VCP). The plant in Kędzierzyn-Koźle manufactures carbochemical and petrochemical products used in the chemical industry. The company’s activity focuses mainly on manufacturing aromatic hydrocarbons.

The assets of the Province • Transit connection and access to the markets of Western and Eastern Europe • 0.726 billion consumers • The dynamic development of higher education (engineering) • Modern and efficient agriculture • Diversified structure of regional economy • Potential for the processing industry development • Highly-developed work culture and quality • Well-developed rail, road and river transport • 2 international airports an hour’s trip from Opole (Wrocław and Katowice) • Natural resources – the possibility of specialisation in the sectors supporting the construction industry • Location near the border between Poland and the Czech Republic and The Pradziad and Silesia Euroregion.

The partnership of the regions

More information on www.borsodchem.pl

Tax exemptions – Special Economic Zones

On 9 September 2012 in Xiamen, Fujian Province, China, the letter of intent was officially signed between the Opolskie Province and the Fujian Province. The Marshal of the Province emphasised that the next step towards the development of cooperation between Opolskie and China should be a visit by representatives of the Opolskie Region business circles in China, as a good starting point for successful business cooperation. “We believe that this cooperation will prove beneficial for both parties. The validity, significance, and need for such actions can be supported by the success of interregional cooperation between the Fujian Province and Rhineland-Palatinate,” stated the Marshal.

“I am also looking forward to the future implementation of trilateral projects between China, Germany, and Poland. It should be emphasised that it was Kurt Beck, the former Minister-President of Rhineland-Palatinate, who encouraged the authorities of both regions to establish a partnership cooperation. As now can be seen, these attempts ended in success. During their stay in China the Opolskie Province representatives also participated in the 16th China International Fair for Investment and Trade and in the 9th China International Friendship Cities Conference. Both during the talks and meetings held at the fair future projects were discussed, particularly in the area of the economy, but also cultural exchange and education.

Among other things, we would like to develop contacts between universities and we will encourage the Opole universities to invite Chinese students”.

Special Economic Zone (SEZ) is part of Polish territory which is administered separately, allocated for the running of businesses on preferential terms In an SEZ the entrepreneur can obtain the following privileges • tax exemption (CIT or PIT) - income tax exemption • a site fully prepared for development by the investor at a competitive price • free assistance in dealing with formalities in connection with the investment • exemption from property tax (on the territory of certain communes).

The maximum permitted level depends on the Province: 50 % up to 70% (available in Opolskie) The SEZ area in Opolskie amounts to 936 ha, 645 ha of which are undeveloped areas. The areas are covered by the Wałbrzych, Katowice and Starachowice Economic Zones.

Among the major investments in the region are Johnson Controls, Kraft, Schattdecor, Donaldson, IFM, Kronospan, and Marcegaglia. These companies represent such sectors as the automotive industry, the food industry, household appliances and interior design. Companies investing in the zones within the Opolskie Voivodeship commited to creating over 6 thousand jobs, and their investment expenditures amount to nearly EUR1 billion.

The range of services offered by the Investor and Exporter Assistance Centre include the sales proposals of manufacturing plants, warehouses and logistics bases and the construction of facilities according to the investor’s requirements by developer companies.

More information on www.investinopolskie.pl

Polish export

The Polish economic development strategy on fostering exports Mieczysław Twaróg, President of the Board, the Association of Polish Exporters

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he Association of Polish Exporters (SEP) devotes a lot of attention to analysing and evaluating the opinions of exporters regarding their activities in crisis circumstances, with which we are dealing now. The opinions of entrepreneurs are dominated by the trend for constructive initiatives to overcome economic difficulties. It is about looking for implementation solutions – and this is being done by the Association of Polish Exporters, which gathers more than 3,000 exporters from all industries and regions of this country and cooperates with over 5,000 companies. Meetings, and especially the annual programme congresses and conferences of SEP, allow us to discuss the circumstances of Polish exports in 200-300-member assemblies. Statements worked out during such meetings are immediately handed over to the central Government administration, that is the Ministry of the Economy, the Ministry of Foreign Affairs, and other institutions. Such an occasion to meet was the 10th Anniversary Congress of Polish Exporters on 19 November 2012

dedicated to the current circumstances and the prospects of Polish export activities in the conditions of global economic crisis. A joint decision was made on the measures that need to be taken to conquer the menace and step onto the path of export growth, this year and in those to come. The Programme Conference of the Association of Polish Exporters, to be held on 17 June 2013, will be a similar opportunity. Based on these opinions and the statements of the vital sector of the economy – on the initiative of the Association of Polish Exporters – by the end of 2008 “The Polish Economic Development Strategy on Fostering Exports until 2020” was developed in cooperation with the Institute for Market, Consumption and Business-Cycle Research.

It is the subject of work in the Ministries of the Economy and Agriculture and in the Ministries of Foreign Affairs. It is the first strategy of its type, even though the community has voiced the need for such a document for a long time. There is no need to explain that exports are some of the main drivers of economic growth, in addition to internal demand. It is so in Poland and other countries.

But precisely because of that you have to take special care of this “driver”- and in all spheres – from the Government and Ministries to local administration units. Of course exporters themselves need no extra persuasion. They just need favourable conditions – and a development policy that fosters exports, and, in the long run, their strategy should focus on just that. To act in this country’s interests and meet exporters’ needs it has to answer at least two questions: “Which industries should be developed with exports in mind?” and “What geographical directions will be preferred in the near future?” The predominant trend of “knowing-all” - all industries and directions - is good neither for policy nor exports. What it definitely does is disperse the funds for assistance, especially those earmarked for promotion, which are small anyway. The suggestions included in the

strategy referred to contain answers to these questions. Priority industries include the automotive, electronic, aviation, biotechnology and ICT sectors, and business and R&D services, as well as the agricultural and food sector. The geographical priorities involved in the strategy are the single European market, the eastern neighbours – Russia, Ukraine, and Belarus, – and also the Chinese, Indian, Indonesian, Malaysian, Japanese, and American markets, plus Thailand, Saudi Arabia, Algeria, Morocco, South Africa, Brazil, Argentina, Mexico, and Chile. Exporters point out, and our association agrees with them, that there is a need to effect systemic changes and solutions in the entire policy of fostering exports, including promotional support and other means of affecting the growth of exports. I will mention only a few. When it comes to a policy fostering exports – a threepartite institutional structure is proposed in the form of an Export Development Council in the Ministry of the Economy, which is a forum for the monitoring, programming, coordinating and supervising of the policy for economic development for fostering exports – the Export Development Agency, reporting to the Minister of the Economy, and the Polish Eximbank – a public institution managing export transactions based on BGK and KUKE S.A. As for financial instruments – we could supplement KUKE S.A.’s package with the underwriting of credits for financing Polish investments abroad. New instruments for promotional support are proposed, regarding outstanding products, mainly innovative, on selected markets, and promising products in high-tech sectors. With regard to other measures for impacting on the development of exports, there are measures proposed covering the rational interest-rate policy of the Monetary Policy Council; the simplification of procedures to increase access to credits and export transactions for Polish companies; adopting measures for indirect suppor by using EU funds within the framework of Special Edition /2013 :: polish market :: 39

Polish export

the Innovative Economy Operational Programme for 2007-2013 and the improvement of the business environment in respect of the conditions for launching business activity, tax formalities, obtaining permits, employment conditions, the supervision system and the activities of foreign enterprises. There is also one more important aspect of promotional measures on foreign markets – supporting activities on the part of the economic and trade services of Polish diplomatic outposts. It is particularly helpful and useful for small and medium-sized companies and those that wish to start their first cooperation with partners on a specific market. The extent and quality of information held by the Trade and Investment Promotion Sections and Economic Sections is good, and technically valuable. The opinions of Polish exporters on their activities are positive, as exemplified by the economic and trade centres in Shanghai, Moscow, Kiev, France, and Portugal. Many centres, especially the Trade and Investment Promotion Sections, require more staff and financing, particularly in the priority countries. The Ministries managing these centres should look more closely at this problem and the conclusions will come. They should also investigate the results of the economisation of the diplomatic services, especially when it comes to the professionalism of staff. Finally, I would like to strongly stress, and I got this from talking to numerous exporters, that there is justified confidence in our abilities to develop the economy and its export sector. Poland has a huge and attractive potential for exporting goods, and its exceeding EUR140 billion and its 33% share of

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GDP proves this. Our exports are varied and respond to demand and requirements as to the quality and technical specification of foreign customers. It is no coincidence that about 70% of our exports go to EU markets. This is true of mechanical and electrical devices, cars and other vehicles, chemical products and metallurgical products, and also agricultural and food products, textile products, furniture, and wood. Even in the current crisis in importing countries, the demand for many product lines, like for example for food products is still fair. What’s more, the zloty to euro and dollar exchange rates may become an additional stimulus for exports. This fact also contributed to a 30% decrease in manpower costs, which is an incentive to invest in our country. In the current crisis some foreign companies are planning to launch production facilities and investment projects in Poland. These will also generate exports. So, if the economic development strategy on fostering exports assumes a doubling of the value of Polish exports by 2020, considering all the conditions and factors presented, it is a realistic task. The supporting of exporters’ activities by the Association of Polish Exporters, in cooperation with Government, national and Local-Government authorities, contributes to this. Particularly worth stressing are the excellent Polish-Chinese international relations, which, because of the Chinese economic potential, hold great prospects for the development of mutually-profitable economic cooperation and trade.

The Association of Polish Exporters focusses its activities on the needs of exporters in terms of information, promotion, and

support instruments. The distinctive feature of the Association is that it began as an initiative of entrepreneurs.

The Association’s mission is to initiate and implement new systemic solutions aimed at transforming the Polish economy into one that strongly supports exports and innovation.

Its strategic goal is to focus on measures to improve the economic conditions of companies for the optimal development of exports.

The Association’s priorities include actions in the fields of monitoring and enhancing export support instruments, promoting exports, organising business missions and assisting exporters in finding business contacts and foreign customers.

The Association of Polish Exporters supports both SME’s and major companies producing for exports.

The activities of the Association are supported by the Centre for Export Promotion, the Polish Export Promotion Portal, Polish Market, Polexpo Exhibitions, Targi Kielce, the Export Credit Insurance Corporation (KUKE SA), and Bank Gospodarstwa Krajowego (BGK). The activities are also supported by fruitful cooperation between the Ministries of the Economy, Agriculture and Rural Development, and Foreign Affairs and the Agricultural Market Agency. The Association also collaborates with both chambers of Parliament, and the Marshals and Province Governors of all the regions. This enables the Association to present the demands and suggestions of its members, particularly with regard to enhancing systemic solutions to improve the operating conditions of companies producing for exports. ::

Polish-Chinese relations

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Polish export

Even the best encounter problems Meat and its products have become Polish flagship exports.

The results are amazing: since 2004 meat exports increased more than three fold, and poultry meat more than twelve fold! Even now, in a period of economic downturn, a doubledigit growth in meat exports continues in most markets.

Interview with Janusz Rodziewicz, President of the Association of Polish Butchers and Producers of Processed Meat.

It is probably a good time for the 90th anniversary of the oldest organization of the Polish meat industry, isn’t it?

I can confirm this from the perspective of the Association which has about 200 members, mainly medium-sized meat processing plants, most of which combine slaughter and processing. It is because the ideal we strive to achieve in this industry is the technological chain “from the feed to the table”. pm

Probably enhanced by quality control systems at each stage?

It is obvious, but increasingly more attention is paid to the promotion of our products.

This year, we have completed the second EU programme in this field and we have already got a positive decision of the European Commission as to our participation in the next promotional programme directed at Russia, China and the United Arab Emirates. It is a three-year programme worth PLN 20 million, basically continuing the previous activities.

This goes in line with our belief that the effectiveness of promotion depends to a large extent on the consistency and perseverance.

This is especially true of the customers from the East, who take a long time to get used to and appreciate a new product, but then you can count on their impressive loyalty.

I think that export permits for poultry and pork that we have recently received in China and in Ukraine are for many producers a tangible success of these promotional programmes. Still, we want to make the meat exports expand further. pm

pm

One of the main problems facing Polish meat exports is that meat processing

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plants are dispersed and have difficulty in crossing a critical-mass point when it comes to the size of supplies. Is it easier to solve this problem when being a member of the Association?

We use a number of ways to solve such problems. For example, we managed to obtain that export permits are granted also to cold stores that are able to integrate several plants which alone would not be in a position to handle a large order. After this solution proved to be effective in exports to Korea, I hope it will be so with exports to China too. The Association serves as an initiator here, but the logistics falls within the capacity of individual companies.

It is important to maintain the stability of supplies, and we can do it. Despite a falling pig population, the volume of pork exports has been sustained. It is easier to achieve that with poultry and beef, because in this case we have a sufficient volume of domestic production.

As you can see the export success has many fathers - both producers and processing plants, and all those bodies that provide them with organizational and promotional support, including the Polish missions abroad we work closely with.

Won’t the recent decision of the Constitutional Court regarding the non-compliance of the ritual slaughter with the Polish Constitution undermine the stability of supplies?

We were persuaded that the EU legislation prevails in this respect and that it is the EU that decides on such matters. Yet, it turned out that it falls with the competence pm

of national legislations, and that amendments must be made to the Polish law to make ritual slaughter possible, something we are lobbying for.

It seems that this virtually eliminates kosher or halal production in Poland, doesn’t it?

At the moment, a clear and final interpretation have not been provided yet. The vacatio legis usually lasts quite a long period, and here it is very short and, on top of that, it comes at a bad time with foreign contracts being already concluded. In 2011, Poland exported 265 thousand tonnes of beef worth over EUR 800 million, 30% of which came from ritual slaughter. Of 1.4 million tonnes of poultry 500 thousand tonnes was exported, 10% of which was slaughtered according to the religious requirements. Ritual slaughter is done by several plants that hold special licenses. Yet, we have to remember that ritual slaughter is not only for the purpose of exports, but also to cater various religious groups. It further implies a problem of Jewish (and, to a smaller extent, Islamic) tourism to worship centres in Poland. pm

So all those who want to come to Auschwitz, Lelów or Leżajsk must be told “take food with you”?

I am almost sure that together other meat producers and processors as well as the Ministry of Agriculture we will manage to sort out this problem quickly. :: pm

Polish-Chinese relations

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Polish export

Ecology for exports Maciej Bartoń

P

olish exports have been constantly growing. According to the estimates of the Institute of Agricultural and Food Economics, the value of Polish exports of food and agricultural products might exceed EUR18.2 billion. According to the “Global Connections” report prepared by the Oxford Economics analysts for HSBC Bank, in the next few years Poland will hold second position in terms of exports in Europe. The favourable changes in exports are already a point of envy for other European countries. Currently the total value of exported goods amounts to EUR140 billion, and the value of revenues from exports is to increase by another 5.8% by the end of this year. The Oxford Economics analysts identified China as one of the most promising export directions for Poland. The Regional Forum Poland-China, which will be held on 21-22 April 2013 in Gdańsk, will be a perfect opportunity to establish new trade contacts. Meetings between representatives of companies from both countries will constitute an important part of the Gdańsk Forum.

Polish food is famous in the world for its high quality. Organic food is a special jewel among Polish foods. This type of food is the essence of Polish tradition, culture, and tastes.

Currently the value of the organic food market in Poland is estimated at EUR150 million, which is a small amount compared to other Western countries, but two years ago this estimate amounted to EUR50 million.

As indicated by the projections, the organic food market will be growing further at the previous rate.

Each year exports of Polish organic food are growing. When seeking partners for trade cooperation, it is worth turning to associations gathering many producers of organic food. One of the associations known for its intensive efforts for Polish organic agriculture is the Polish Ecology Association, with the primary goal to develop and promote the Polish organic food market, also through active participation in national and international fairs, including the largest event associated with organic food – the Biofach Fair. The product range of the Polish Ecology Association is very

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diverse and includes bread, cakes, flour and groats, juices, frozen products, jams, dairy products, meat and cured meat products.

Attention should be paid to the original and outstanding nature of the products offered by the Association.

It gathers producers from the whole of Poland, who, through their products, show the characteristic features and the distinctness of the regions which they come from. Moreover, each producer belonging to the Association takes care of controlling the quality of the products offered.

One of the producers dealing with food processing who is a member of the Association is the Runoland Company, whose activities involve the processing of forest undergrowth products. Due to their taste, the company’s products have won the appreciation of consumers from the United States and Canada, and thus half the products are exported. The material for the products comes from the pristine forests of Lower Silesia, free of chemical pollution. The Runoland Company builds upon traditional production methods; the leading products of the company include dried fruit, mushrooms, herbs and fruit and vegetable preserves. Dried mushrooms are the essence of the Polish forest, and even a sprinkle is enough to give a dish a unique taste.

Another company with an appealing product range is Biofood. This processing plant deals with the production of fruit juices, fruit and vegetable juices, nectars, fruit and vegetable preserves, and cucumbers pickled in vinegar. For each of the products the appropriate technology is developed, enabling the preservation of the valuable ingredients contained in fresh fruit and vegetables. The Biofood Company received one of its first awards in 1998 in Copenhagen, and since then has been regularly granted awards at various fairs and festivals. In May 2010 the strawberry-flavoured Biosmoothie received the Best of Organic 2010 main prize in the contest for the best organic product organised

by EkoConectv. Biojuices, that is juices produced with the application of milk fermentation, are an interesting item in the company’s

product range. Drinking juices produced in such a way has a positive impact on intestinal microflora and decreases the risk of contracting intestinal cancer. The company exports its products to France, Russia, the United States, and the Netherlands.

Among the members of the Polish Ecology Association is also Symbio, a strong player on the organic products market. This dynamically-developing company in 2008 made its debut on the stock exchange. Symbio does not restrict its activities to the domestic market, but also actively engages in the exporting of its products. The materials are obtained in various places in the world, which makes the product range rich and diversified. Symbio offers groats, flour, cakes, pasta, juices, preserves and dried tropical fruit. The rich product range of the company includes organic frozen fruit and vegetables, which Symbio supplies to the leading producers of baby food.

The Polish Ecology Association could not exist without Polish producers of sausage, which are among the flagship Polish food products. In Poland there are very few producers of organic cured meat products.

Among them is the Jasiołka Meat Processing Plant, which has been a member of the Polish Ecology Association since its foundation. The company combines care for tradition and ecological innovation, and produces organic cured meat products on the basis of long-standing recipes. Among the products worth mentioning is Kiełbasa Pradziada (great-grandfather’s sausage) with ham and liver, which has delighted gourmands for years. The Jasiołka Meat Processing Plant also produces innovative organic cured meat ripening with the use of milk acid bacteria.

These products are characterised by long storage life, and a unique taste and aroma.

The above-mentioned companies are just a few among 20 companies belonging to the prestigious Polish Ecology Association. The full product range of the companies is available on www.polskaekologia.org. Polish organic food offers not only a great value for money, but also makes it possible to make healthy choices and discover unique tastes. :: www.polskaekologia.org

Polish-Chinese relations

Perfect in every detail

Zak∏ady Graficzne TAURUS Roszkowscy Sp. z o.o., Kazimierów, ul. Zastawie 12, 05-074 Halinów, tel./fax: (0-22) 783 66 82, 783 60 00, 760 41 64, 760 41 68, 0667 635 241 e-mail: biuro@drukarniataurus.com.pl, taurus@data.pl; www.drukarniataurus.pl

SKLEP INTERNETOWY: www.sklep.drukarniataurus.pl Special Edition /2013 :: polish market :: 45

Culture

Crushing the wall…

The exhibition “Behind the Great Wall. Chinese Art from the Collection of the National Museum in Warsaw” is the first presentation of Chinese art in the halls of the National Museum with such a broad scope. Featuring over five thousand pieces, it makes up an important part of the Oriental Art Collection held by the Warsaw Museum and is the biggest collection of its type in Poland. We can admire the exhibition until 12 May 2013. This, however, is not the end of our efforts to discover together, through culture... “Behind the Great Wall” marks the beginning of intensive cooperation between the Polish National Museums and our Chinese counterpart. “Prof. Maria Poprzęcka is currently preparing a major exhibition of Polish art from the collections of the National Museums in Warsaw, Kraków, and Poznań, which we will be showing in the National Museum of China in Beijing in 2015. Two years later we are expecting a return visit,” announced Piotr Rypson, Deputy Director for Research at the National Museum in Warsaw.

W

hat can we already see in Warsaw? Paintings, calligraphy, coloured-wood engraving and stamping, ceramics, bronze, nephrite, lacquer and glass items, and sculptures in wood, ivory, and stone, as well as furniture and fabrics. This collection is kept in the museum’s storeroom, and, although as early as in the 1980s small fragments of the collection appeared in temporary exhibitions in Warsaw and other cities, it is only thanks to this exhibition that the public can admire such a wide and varied range of those items.

“We have a unique opportunity to see, for the first time in such a broad selection and range, the collection of Chinese art – one of our largest. We would like to peek behind the Great Wall from the title and get to know more about Chinese art, show how varied and rich it is and present its formal and technical diversity. We are also showing practical and decorative objects connected with daily life and religious rituals,” said Prof. Tadeusz Majda, Curator of the Oriental Art Collection of the National Museum in Warsaw and one of the exhibition commissioners.

The majority of exhibits come from the Ming (1368-1644) and Qing (1644-1911) periods and from the 20th Century. Our Polish collection has been growing, thanks to donations and new purchases.

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“One of the exhibition’s objectives is to present the collectors of Oriental art, and in this case, Chinese. Chinese art collections in Europe were the domain of private collectors.

We want to present the history of collecting Far Eastern art in Europe,” added Prof. Tadeusz Majda.

The collection began with a set of china bequeathed by Leopold Méyet and handed over to the Warsaw museum in 1915. The list of the most important donors also definitely includes Ignacy Jan Paderewski. In his testament, this outstanding Polish composer, musician, and statesman, who in 1919 was Prime Minister and Minister of Foreign Affairs of the Republic of Poland, bequeathed to the National Museum his extensive collection of handicraft, metal goods decorated with cloisonné and painted enamel. These include censers, ritual vessels, vases, and small goods decorated with archaic patterns or covered with ornamentation depicting Chinese symbols and beliefs.

Buddhist and Taoist deities, representatives of Confucianism and folk beliefs, were some of the most important motifs used by wood engravers in China. Such representations make up the major part of Witold Jabłoński’s collection. This veteran Polish sinologist went on a long trip to central and western China in 1930-1932. During this exotic journey he visited nearly 15

“Grapevine with fruits” - signed Empress Cixi (1835-1908), Qing Period, early 20th C. Vertical scroll, ink and watercolour on silk, source: organiser.

Maciej Proliński

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Special Edition /2013 :: polish market :: 47

Culture

“Dancing Beauty with a Sparrow”, Mianzhu, Sichuan Province, 1930-1932, coloured-wood engraving, source: organiser.

wood-engraving centres, bringing more than 700 engravings to Poland.

Landscapes, which are very numerous in the exhibition, include a collection of landscapes painted in the “blue-green style”. Paintings of this type refer back to the aesthetics of early Chinese landscapes, and thanks to its decorative features they have met with widespread recognition among European collectors. Besides painted scrolls, there are also Chinese paintings in other, smaller forms, such as square or rectangular cards from albums. Many paintings feature inscriptions (text written by the painter, often rendered in exquisite calligraphy), signatures, and stamps of the artist or collectors.

The exhibition is accompanied by an educational programme, under which the museum will be organising a series of lectures by, among others, Marcin Jacoby, PhD (“Silk and Ink. A Journey Through the Chinese Paintings from the Collection of the National Museum in Warsaw”), Albert Borowiecki (“Chinese Inventions that Changed The World”), Sylwia Witkowska (“European Explorers in

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One of the exhibition halls, source: organiser.

China”) and Kamila Wiatr (“Golden Lines – The Canon of Beauty in Imperial China”). Visitors can participate in Chinese calligraphy classes, play traditional Chinese games – with sticks, quizzes, and board games, and build a “Great Wall” of hand-decorated bricks inside the museum.

Remember that this Spring exhibition in Warsaw is also an important prelude to other artistic meetings between the two countries. There was a time when Polish museums had no access to foreign institutions. Today, we have agreements for major Polish exhibitions in Saint Petersburg and Beijing. This is the fruit of many years of work and of gradually opening the doors for the promotion of Polish culture in this field. Beijing’s opening up to Polish art (the National Museum of China, with nearly 200 thousand sq. m is the world’s largest museum in terms of area) is a consequence of last year’s Protocol on cultural cooperation between Bogdan Zdrojewski, Minister of Culture and National Heritage of the Republic of Poland, and Sun Yuxi –Minister of Culture of the People’s Republic of China in the years 2012-2015.

The diplomatic document prepared and negotiated by the Polish Ministry of Culture and National Heritage lists the commitments of both parties to support direct cooperation between institutions of culture and artists’ associations, organise cultural seasons and film weeks, and cooperate towards mutual growth, the protection of cultural heritage and historic monuments and cultural objects. On the Polish side, contacts with Chinese institutions will be coordinated by, among others, the Adam Mickiewicz

Institute, the National Heritage Board of Poland, the National Institute of Museology and Collections Protection, and the International Cultural Centre in Kraków. Work aimed at the protection, preservation and promotion of cultural heritage will also continue within the framework of the Asia-Europe Meeting platform.

Platter decorated with a composition depicting blooming lotus flowers, ducks, fish, a crab, and insects – Qing Period, 18th C., source: organiser.

These are reassuring declarations, which can lead to a fascinating and innovative programme, expertly presenting the achievements of our nations in the cultural sphere. It is worth remembering that culture is one of the best instruments of public diplomacy. ::