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of countries with which Poland has the largest trade deficit, China is ranked first. According to 2017 data major exports from Poland to China are: copper cathodes (USD 589 million – 25.6% of total export), parts of non-wood furniture (USD 46 million), styrene-butadiene rubber (USD 39 million), power converters (USD 35 million), clothes dryers (USD 33 million), whey (USD 27.5 million) and wooden furniture (USD 25.7 million). The same data shows that major imports from China to Poland are: parts for cameras, telephones, laptops and notebooks, video game consoles and other devices. Polish government is willing to solve the trade deficit problem by increasing Polish exports to China. More than 80 Polish companies from various sectors will participate in the China International Import Expo fair in Shanghai. It will be one of the largest business delegations present at CIIE. Promising areas of export cooperation with China are: agri-food products, green technologies and services, mining equipment, furniture, cosmetics, products of creative industries (incl. video games, interior design). The Polish government has introduced numerous export support programmes for Polish exporters interested in the Chinese market: • Go China – run by the Polish Investment and Trade Agency (PAIH) • Go Brand – sectoral export promotion programmes covering sectors of machinery and equipment, biotechnology, pharmaceuticals, food products, fashion and furniture – participation in trade events and purchasing consulting services. • General promotion programme (de minimis) for SMEs. In the next few years the Polish government is planning to explore and use business opportunities for Polish companies that exist in trade and investment relations with carefully selected western and central provinces of China, as well as in China's constantly growing e-commerce market. Poland is also a natural location for a railway hub, servicing freight flows between China and Europe. This country offers a favourable geographical location – at the intersection of
transport corridors, with the great potential to build a network of intermodal connections to Central Europe, Scandinavia and a large part of Germany. Poland also offers low labour costs, as well as developed logistics and storage infrastructure. The Polish logistics sector is well developed and Polish companies have the experience with the ChinaEU transport market, including experience of cooperation with partners from Germany, Belarus and Russia.
INVESTMENT COOPERATION CHINESE INVESTMENT IN POLAND According to National Bank of Poland data, the total Chinese direct investment inward position in Poland at the end of 2016 was USD 482 million (incl.: Mainland China, Hong Kong and Macau). According to different sources it may have reached even USD 1 billion. According to Statistics Poland data, at the end of 2016 there were 756 companies with Chinese capital operating in Poland, of which the majority (648) employed up to 9 people. 13 Chinese companies invested in Poland more than USD 1 million. Sectors where Chinese investors are present: electronics industry, engineering industry, packaging industry, sports equipment, logistics, aviation, BSS-SSC, financial services (and others.)
POLISH INVESTMENT IN CHINA According to National Bank of Poland data, the total Polish direct investment in China inward position at the end of 2016 was EUR 81 million. Sectors where Polish investors are present: engineering industry incl. mining equipment, chemical industry, aviation (and others.) The majority of Polish companies operate in China through a joint venture with a local partner. •
Poland-China Trade Relationship 2014–2017 (in USD m)
2014
2015
2016
2017
DYNAMICS 2016/2015
DYNAMICS 2017/2016
TURNOVER
25 752,8
24 842
25 919,6
29 331
4%
13%
EXPORTS
2 250,6
2 016,9
1 912,2
2305
-5%
21%
IMPORTS
23 502,2
22 825,1
24 007,4
27 026
5%
13%
BALANCE
-21 251,5
-20 808,2
-22 095,1
-24 721
*
*
Source: INSIGOS
10/2018 polish market
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