In the first 11 months of the last year, 1247 out of 7346 large scale enterprises recorded losses, 52 enterprises more than in 2018. The profitability of pharmaceutical enterprises decreased. To offset losses some companies started selling off their assets. This situation is a result of the recently implemented by the Chinese authorities procurement of drugs with target quantity policies (带量采购政策). The program’s goal is to drive down prices of off-patent drugs, encourage domestic companies to provide generic drugs at the lowest possible price and to free up state funds to pay for advanced, novel cutting-edge therapies for Chinese patients. However the new system also results in profit erosion and can discourage innovative enterprises to invest in new drugs as they finance research and development from profits derived from off-patent or generic drugs. Polish drug exporters to China can face more challenges as the competition grows both the generic drugs and patented drugs market. o successfully compete in the Chinese market Polish exporters need to dramatically increase their competitiveness in novel, patented drugs or at least in modified advanced generic drugs. Read More …

On December 18 the Chinese News Network published an article on the reform of the Polish judicial system undertaken by the Law and Justice government and the argument made by the Supreme Court of Poland, that the reforms can lead to Poland’s exit from the EU. Chinese media outlets including Global Times, China Daily and many others have reported the news drawing the content form the article by the Chinese News Network. The Chinese media coverage missed several important elements and it resulted in creating the distorted picture of the situation. The political opposition statements, public opinion strong critical voices and protests were not reported. There was also no backgrounder explaining to the Chinese reader how the PiS planned and already partially implemented reforms of the judicial system actually endangers the rule of law in Poland. Read More …

On December 13 The Embassy of the Republic of Poland in Tokyo and The Japan Institute for Overseas Investment (JOI) signed a business cooperation agreement extending the agreement from 2008 when The Embassy of the Republic of Poland in Tokyo became a special member of JOI. The agreement has been inked in a very favorable moment for polish entrepreneurs and economy with EUJEPA and Infrastructure cooperation pact entering into force. JOI works closely with Japan Bank for International Cooperation (JBIC) – founder of JOI, who gathers more than 200 most valuable Japanese financial, construction, manufacturing, trading and energy companies. JOI includes major Japanese investors in Poland like Toyota Motors or Hitachi. It brings a major change in presenting and communicating the latest information on Polish economy and investment possibilities. From now they will be distributed to the JOI members by JOI.
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On December 9 the Chinese company BYD announced that three days earlier it has reached a deal with the Keolis Nederland BV, a dutch subsidiary of global public transport provider on the delivery of 259 electric buses. The growing demand for emission-free public transport in Europe is an opportunity for Chinese electric buses manufacturers. BYD is the direct competitor for the Polish electric bus manufacturer Solaris. In 2019 both Solaris and BYD companies scored a number of contracts in Europe. BYD tried to compete with Solaris in Poland. In 2016 BYD competed with Solaris in the bid for 20 electric busues in Cracow. Both comanies competed again in November 2018 for the much bigger contract for 130 electric buses for Warsaw.The expansion of BYD in Europe can have an impact on Solaris sales and expansion. It should also be noted, that other Chinese bus companies such as Yutong have already entered the European market. BYD’s success can also pave the way to more orders for other Chinese manufacturers. Read More …

On November 14 Council of the European Union released a decision on the conclusion of the Free Trade Agreement between the European Union and the Republic of Singapore that will come into force on November 21. Singapore is EU top trade partner in ASEAN with trade value in goods and services over 100 bln EUR and interesting market with wealthy middle class. Singapore is vibrant regional trade and investment hub that can serve as the gateway to ASEAN countries and other regional markets. Implementation of the new trade and investment agreements with ASEAN countries can be a good alternative for EU companies to trade or investing in China and can increase strategically important diversification and decrease EU dependence on China in the Asia Pacific region.The agreement can boost Polish export in other groups of products and export of services. Singapore is a regional trade hub and can serve a showcase for Polish exporters e.g. of food and agricultural products wishing to enter other ASEAN markets such as Malaysia and Indonesia. Read More …

On October 1st, 2019 the Polish Minister of Foreign Affairs Jacek Czaputowicz nominated Paweł Milewski as the Polish Ambassador to Japan. The bilateral relations between Poland and Japan could be described as model ones in terms of a volatile international environment.. In the recent four years, two meaningful and important agreements between the countries have been signed. In 2015 Poland and Japan signed The Working Holiday Program and in 2017 the 2017-2020 Action Plan for the implementation of the Strategic Partnership between Poland and Japan was signed. Paweł Milewski inherited a stable (in terms of international relations) environment to extend and intensify Polish actions and bilateral cooperation. His abilities to break through and lobbying within structures of Polish MOFA can turn out very helpful. New mbassador can also play a major role as a skillful initiator and leader in developing new areas for cooperation. Read More …

On 17 October, the UN General Assembly voted to elect Poland to the UN Human Rights Council for the 2020-2022 term. HRC produces the Universal Periodic Review (UPR) of the human rights records of all UN Member States. HRC can also issue resolutions condemning human rights abuses and calling states for change. On July 9 2019 twenty-two countries at the United Nations’ top human rights body issued a joint statement urging China to end its mass arbitrary detentions and related violations against Muslims in the Xinjiang region. In response to the letter China mobilized almost forty like-minded countries including Russia, Myanmar, to sign the letter supporting its actions in Xinjiang. The current composition of the HRC packed with authoritarian regimes or countries with poor human rights record strongly undermines the Council’s mandate and ability to perform its basic duties. Poland along with other CEE countries, with exception of Baltics states, have been so far rather silent on the Chinese actions in Xinjiang.Poland as a newly elected member should support the voices calling China to end ethnic cleansing, use the HRC forum to criticize Chinese actions and to join the relevant international initiatives. Read More …