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Page 40

EXPORT

POLAND – CHINA TRADE BALANCE

100 BILLION IN THE RED As you can see in the graphics below, the volume of Polish imports from China far outweighs that of exports to that country. What is the reason for this imbalance which spoils Poland's overall favourable trade statistics? How to reverse this trend? Should imports from China be curtailed through developing Poland’s own means of production? Can more goods be made in Poland which will appeal to the Chinese consumer, and which cannot easily be substituted by cheap products made in Asian countries? JM

P

olish officials and entrepreneurs who are looking for the Holy Grail of Polish exports keep trying to find the answers. At a time when almost any technology can be copied by talented engineers, scientists and biotechnologists, it is extremely difficult to offer Chinese consumers a product which can arouse their interest, while not being readily available in neighbouring countries. Other factors do not work in Polish entrepreneurs’ favour, either. China is culturally diverse, and features striking disparities in the purchasing power of various sectors of its population. Up to 100 million Chinese consumers can afford to buy high-quality products, but the vast majority can barely make ends meet, or at least has a long way to go before it will be able to join the middle class. In Poland, the image of China persists as a country of over one billion people with similar, low purchasing power. Even entrepreneurs fail to keep abreast of changes which occur in China. For over two decades, China has been at the forefront of the world’s fastest growing economies. It is undergoing numerous social, cultural and systemic metamorphoses. Add to this the complexity of Chinese legal regulations, which Polish businessmen often find baffling, for example the need to obtain export permints. Then there is the complicated geopolitical situation brought about by the trade war with the US, which has been going on for the past two years. All this makes it somewhat easier to understand why Polish exports to China are barely noticeable. It is thus interesting to examine the reasons why some Polish companies manage to successfully export their goods and commodities there. What is it • that they are doing right?

38  polish market 

POLISH OFFICIALS AND ENTREPRENEURS ARE LOOKING FOR THE HOLY GRAIL OF POLISH EXPORTS ABLE TO CONQUER THE CHINESE MARKET.

POLAND'S TRADE WITH CHINA POLISH EXPORTS TO CHINA • • • •

Base metals and products manufactured with their use Mechanical and electrical machinery and devices and parts Plastics and derived products Food exports from Poland to China are characterised by very high growth. In the first five months of 2019 they were up 76% on the corresponding period of 2018.

POLISH IMPORTS FROM CHINA • • •

Mechanical and electrical machinery and devices as well as parts, in particular multimedia equipment Textiles and clothing Industrial goods

EXPORTS VOLUME COMPARED TO IMPORTS 8% TRADE DEFICIT PLN -102,527.0 million

Source: compiled based on Statistics Poland (2018), Eurostat and KUKE data

Profile for Polish Market

Polish Market No.2-3 (293)/2020  

"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...

Polish Market No.2-3 (293)/2020  

"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...

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