China is actively seeking out investment opportunities in Poland. Ma Changlin, economic and trade counselor at the Chinese embassy in Warsaw, said China “is interested in using the region as a springboard to the rest of the European Union.” Poland’s highly educated and affordable workforce, poor roadways and dynamic social population has attracted substantial Chinese foreign direct investment (FDI) from China. Chinese companies invested 70 million euros in 2007 (approximately $92 million at current exchange rates). China is forecasted to invest up to 500 million euros by the end of this year. Such investment would create 3,230 jobs in Poland.
Poland’s most attractive investment sectors include public infrastructure, education, electronics and chemicals. Many companies are purchasing real estate and competing for public infrastructure contracts, as Poland and Ukraine rapid work towards prearping to c0-host the 2012 European Cup. Last year, a Chinese consortium won the contract to build two sections of a highway from Lodz to Warsaw. While not a monetarily large deal, it was the first time that a non-Polish or non-European company received a contract that will be partly financed by the European Union.
Warsaw Business Journal reports that a Chinese electronics company is negotiating the construction of a factory in southwestern Poland that would create 2,000-3,000 jobs, according to Rzeczpospolita reports. “More and more companies [from China] are considering investing in Poland, which they did not take into account two years ago,” said Sławomir Majman, head of the Polish Information and Foreign Investment Agency.
Initially, “some Polish companies were not happy,” about the foreign direct investment from China, said Henryka Bochniarz, president of the Polish Confederation of Private Employers. “They said the Chinese were subsidized by the Chinese government. But frankly, as long as they meet the procurement rules, you can’t exclude them.”
Trade flows have also changed. “China used to mainly export textiles, shoes and tea to Poland,” said Tomasz Ostaszewicz, director of the bilateral economic cooperation department at the Polish Economy Ministry. “Now China is our main supplier of electronic goods.”
Copyright © 2010 The Filutowski Law Firm, PLLC. Attorney Alexandra Filutowski is on the Board of Directors with the Polish American Chamber of Commerce, Pacific Northwest. This post is intended for general information purposes only and should not be construed as legal advice or legal opinions on any specific facts or circumstances. An attorney-client relationship is not created or continued by reading this post. If you would like further information regarding the matters discussed herein, please contact Alexandra Filutowski.
