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The Warsaw Voice » Business » March 1, 2013
Business & Economy
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Chinese Investment Drive Targets Poland
March 1, 2013   
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The Chinese economy is still one of the fastest growing in the world. In the third quarter of last year, it grew a healthy 7.4 percent, yet this figure was the worst in three years and experts described it as a slowdown. In the final quarter, the Chinese economy picked up speed and grew 8 percent. China has large financial surpluses that cannot be wholly invested on the domestic market. Chinese investment abroad has been growing an average 12 percent a year.

According to consulting firm Deloitte, up to half of Chinese investment in Europe will be carried out in Central and Eastern Europe this year. A report by Deloitte shows that Chinese investment in Europe will total $40 billion. Up to half of this amount may be invested in Central and Eastern Europe. Five years ago Central and Eastern Europe accounted for only one in 10 Chinese investment projects in Europe. Chinese capital is attracted mostly by sectors such as energy and industry. A big step forward is Chinese banks entering the Polish market.

“China Exim Bank is very interested in entering Poland, both through an investment fund and by giving access to loans,” says banking expert Jarosław D±browski, CEO of D±browski Finance. This Chinese bank is responsible for disbursing a credit line announced by Chinese Prime Minister Wen Jiabao during his visit to Warsaw in April last year for use by 16 countries in Central Europe.

A total of $10 billion from China will be spent on investment projects related to infrastructure, energy, logistics and telecommunications in Central and Eastern Europe. Wen Jiabao proposed 12 joint projects that may improve the balance of China’s trade with Central Europe and Balkan countries. The first projects are expected in the coming months provided there are interesting proposals from the Polish side.

Any decisions on this issue will probably be made after a reshuffle of China’s top political leaders. In March, a convention of the Chinese Communist Party will take place, during which Xi Jinping will officially take over as secretary-general of the party and president of the country, and Li Keqiang will become the new prime minister. D±browski says the new Chinese leaders are likely to be as interested in doing business with Central and Eastern Europe as their predecessors and are unlikely to block the process started by Wen Jiabao.

Chinese companies have been active in Poland for years. One of the largest Chinese investors on the Polish market is Huawei, a telecommunications giant that produces telecommunications hardware and infrastructure. It employs over 500 workers in Poland. The company is beginning to successfully compete for orders from enterprises and public institutions in Europe.

According to experts, telecommunications and new technology are among the potential areas in which bilateral projects could be set up. Another such area may be transport infrastructure: roads, railways, and logistics. Yet another Polish sector that Chinese companies are interested in is energy. For instance, Chinese company Sinovel, the country’s largest producer of wind power equipment, is interested in expanding into Poland.

The Deloitte report says that further sectors in which Chinese companies are likely to become involved soon are consumer goods, transport and pharmaceuticals.

The Agricultural Property Agency owns:
- 1.7 million hectares of agricultural land; • 60,000 hectares of investment plots;
- world-class Arabian horse studs in Janów Podlaski and Michałów;
- 43 strategic breeding and farming companies
More info: www.anr.gov.pl
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