In this study we examine Poland’s position as a business partner for China and Poland’s attractiveness to China as an investment destination.
China’s rise as an economic power and a source of outbound investment is well established. However, Poland appeared on Chinese corporations’ radar only recently. Despite this, our research shows that the Chinese executives who have invested in Poland consider the country an attractive location and have had favourable experiences in a number of ways. Some of the main advantages to investing in Poland:
China is now the world’s second-largest economy and looks set to continue its fast development. China’s outbound foreign direct investment is growing rapidly. By 2009 it accounted for more than 9% of global OFDI flows. While Chinese companies tend to invest mainly in greenfield ventures, M&A transactions are growing more popular.
At the same time, Poland’s economy is considered one of the most attractive in the European Union (EU). With the largest economy to have joined the EU in the last decade, the country is attracting strong interest from foreign investors. Its large and growing number of middle-income consumers, its highly skilled, low-cost labour force and its central location at the crossroads of key European markets combined with the promise of a coming wave of infrastructure investments make the country an enticing proposition for foreign investors. Poland has been a leading economic performer in the region. It is the only economy in the whole of Europe to have shown positive growth in every year since 1992. The Polish government and the EU are facilitating foreign investors through continued liberalisation of markets, privatisation of assets, improvement of infrastructure, and investment incentive programmes such as special economic zones (SEZs).
In the past, foreign direct investment from China into Poland was very limited. However, since 2010 there has been burgeoning interest from Chinese companies. Greenfield projects of prior years are now accompanied by the Chinese companies that have taken a growing interest in the Polish government’s extensive privatisation programmes. Based on recent deal flows and given the extensive and high-level participation in recent investors’ conferences organized by the Polish Information and Foreign Investment Agency, we expect Chinese investment into Poland to expand strongly going forward.