BYD’s new success in Europe / Nowy sukces BYD w Europie

BYD

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 …

EU-Singapore trade agreement and its impact on Poland / Umowa handlowa UE-Singapur i jej wpływ na Polskę

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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 …

Poland in Human Rights Council and persecution of Uyghurs in China / Polska w Radzie Praw Człowieka ONZ a prześladowania Ujgurów w Chinach

Polska w Radzie Praw Człowieka ONZ a prześladowania Ujgurów w Chinach

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 …

PayPal in China – opportunity for Polish SME / PayPal w Chinach szansą dla polskich MŚP

PayPal

At the end of September PayPal received approval from the People’s Bank of China to buy a 70% controlling stake in a domestic payments firm GoPay – Guofubao Information Technology. PayPal is the first foreign firm to enter China’s payment services market. GoPay is a minor player and PayPal will face giant fintech ecosystem that Ant Financial and Tencent have already built. Alipay and WeChat Pay dominate China’s digital payment market with joint 90% share. Competing with Chinese giants in the area of domestic payments can be difficult but PayPal as a well recognized platform both in China and abroad can use its position to snatch the cross-border payment services from the competitors.Polish small and medium companies (SME) face multiple challenges while trying to export to China. Using PayPal services in China for many Polish businesses can be much easier than using services provided by Chinese companies or global players and helpful in the diversification of the sales channels.Read More …

Polsteam’s Chinese dilemma / Chiński dylemat PŻM

Polsteam

On September 21 media outlets reported, that two months earlier in the internal Bulletin Paweł Brzeziński, the administrative commissioner of the polish shipping company Polsteam, bluntly criticized the government’s project of building in Polish shipyards two modern RoPax ferries. Brzeziński complained, that project of timely building in Polish shipyards is unrealistic given financial resources provided and existing infrastructure. He suggested placing orders abroad and altought the location of production was not named China was one of the obvious choices. Current Polish government have been promising revival Polish shipyards. The declarations however hit the tough economic realities and little progress has been made so far. The revival of Polish shipbuilding industry needs time and significant financial resources, while management of PŻM needs cost and time effective solution to compete with foreign operators to avoid being pushed out of market. Ordering vessels in China is a viable option. Three years have been lost for industry and now ministry and PŻM management face difficult choice. Read More …

New Confucius Institute branch in Warsaw / Nowy Instytut Konfucjusza w Warszawie

On September 23 Warsaw Institute of Technology announced the establishment of the Confucius Institute in cooperation with Jiaotong University. The operations of the new branch will cover not only providing Chinese language courses, organizing workshops and other cultural or social events but will also include business consulting services and workshops in the Chinese economy, law, and business environment. The activities of the CI raise growing anxiety among scholars, think tank analysts, politicians and public opinion in many democratic countries. While in many countries CI is in retreat or under growing pressure in Poland their branches thrive. The increased presence of the CI or other Chinese state and CPC sponsored or supported organizations in Poland and growing number of their activities greatly facilitate the Chinese official and often misleading narrative on China’s state foreign policy and domestic situation to gain prominence in the public discourse. Being offered financial support from the Chinese side Polish scholars and think tank analysts often choose to be silent on issues considered as sensitive by CPC officials. Read More …

US succesful push for global postal fees reform / Sukces USA w walce o zmianę systemu międzynarodowych opłat pocztowych

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On September 25 Universal Postal Union (UPU) agreed to reform its fee structure under a proposal by the United States and averted the United States leaving the organization. The agreement was clinched in negotiations among 34 countries including China. From January 2021 US would be allowed to begin imposing “self-declared rates” for distributing foreign mail in the US territory regardless of the general UPU rates. Chinese online platforms e.g. AliExpress offer extremely cheap or even free of charge shipments of products to many countries while shipments to China are much more expensive. The difference is in fess paid by different countries for mail or parcel delivery within the territory of another UPU member. The higher cost of sending items to China puts foreign sellers mainly from the SME sector at great disadvantage comparing to their Chinese peers. In Europe Nordic countries are among the sharpest critics of the current rate system Business associations from various European countries have recently again requested actions from the EU officials to reform the UPU system due to its distortive impact on competition. Read More …

Chinese medical tourism zone as an opportunity for Polish exporters / Chińska strefa turystyki medycznej szansą dla polskich eksporterów

Boao

Chinese National Development and Reform Commission announced this week new set of regulations supporting the further development of the Boao Lecheng International Medical Tourism Pilot Zone. They support the development of the medical services targeting affluent domestic and foreign customers and also facilitate the import of required equipment and pharmaceuticals. For foreign companies exporting to the zone provides the easier way to enter the Chinese market. Streamlined registration procedures take a couple of months instead of 3-5 years and allow for use of foreign documentation in the registration process. Time and money consuming registration procedures discourage Polish drug companies from entering Chinese markets. Export to the zone could provide good export testing opportunity. Gaining customers in the zone could be a valuable step in entering the Chinese market. Read More …

Chinese Yifan to buy major stake in Bioton / Yifan zakupi znaczny pakiet akcji Biotonu

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On 3 September Yifan Pharmaceutical Co., Ltd announced its intent to indirectly acquire 31,7% shares in the Polish recombinant human insulin maker Bioton S.A. Bioton is the pharmacetical company listed on the Warsaw Stock Exchange and specialized in insulin and hormone based drugs. Yifan is the Chinese pharmaceutical company specialized in macromolecule biological drugs and listed on the Shenzhen SE. Yifan seeks growth opportunities both in China and abroad by targeting diabetes drugs as the key segment. In 2018 it acquired the drug developer Summitbioteck and its three insulin analogues. Chinese company needed the facility to have the drugs developed and manufactured. Bioton seemed to be a perfect match. Acquisition of Bioton shares will significantly strenghten Yifan’s control over supply chain. Bioton has recently lost its insuline distributor in China and needs stable orders, funding and access to markets. Yifan is one of the several industry investors seeking recently the manufacturing base and market opportunities in Poland. Cooperation with Yifan is an opportunity for recovery of Polish insulin exports to China. Read More …

EU extends anti-dumping duties on Chinese bicycles / UE nakłada kolejne cła antydumpingowe na chińskie rowery

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On August 29 European Commission imposed the definitive anti-dumping duties on imports of bicycles originating in the PRC. General duty rate is 48,5% with several companies granted lower or 0% rates. In spite of the previous duties imposed in 2013, the Chinese imports to EU have increased around 50% comparing to 2014. China has huge spare manufacturing capacity of 36 mln bicycles annually, that can be directed at the EU market. EU industry is still fragile and faces major challenges such as falling profitability and productivity, worsening cash flows, utilization of the recent investments. Unimpeded and unchecked inflow of the dumped Chinese imports would be harmful for industry stability and development. There are around 90 manufacturers with 4 500 employee in Poland producing annual output over 1,2 mln pcs of various types and applications. The majority of bicycles manufactured in Poland is exported. Allowing the free access of unfair Chinese competition to the EU would have serious impact not only on the domestic sales but mainly on the Polish exports. It could also hamper the growth of the foreign investments. Read More …