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 …

CRRC Buys Vossloh Locomotive / CRRC kupuje dział lokomotyw Vossloh

Vossloh AG sold its Locomotives business unit to CRRC Zhuzhou Locomotive Co., Ltd., a subsidiary of the China Railway Rolling Stock Corporation Ltd. (CRRC). Upon the successful completion of the transaction Chinese company will become the owner of the largest supplier of diesel locomotives in Europe with 25 proc. market share.CRRC is one of the China’s national champions strongly supported by the Chinese state and the Communist Party of China. Stronger engagement in Europe will likely increase the competition with leading European manufacturers. CRRC expansion in Europe will increase competitive pressure on the Polish domestic enterprises and subsidiaries of foreign companies located in Poland. Read More …

Korean, Vietnamese and other top Asian markets more receptive to Polish exports than China.

Polski eksport do Chin Azja wartość dynamika skłonność do importu_1920_500

In 2018 China was by far the biggest buyer of the Polish goods in terms of value. China however occupied distant places among the top 10 Polish export Asian destinations in terms of the export dynamics, exports per capita and propensity to purchase Polish goods. Imports from Poland were much more attractive for Vietnamese, Korean, Taiwanese, Thai or Malaysian buyers than for the Chinese. Lower relative attractiveness of Polish goods in the Chinese market in comparison to other Asian markets is not a new phenomena and it draws several conclusions.

Bumpy year ahead in Polish relations with China

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The decoupling from China and alignment with US has been already a fact for more than a year.The growing rivalry between China and United States with Washington pressing its allies to align more closely their actions with the White House foreign policy will further draw Poland from Beijing, at least for several months. The economic cooperation with China will likely to be one of the victims of the Polish foreign policy. Read More …

Huawei case: Economic retaliation not effective leverage on Warsaw

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Espionage is actually a minor issue when compared to the problem of Huawei’s presence in Poland and steps Chinese authorities can take in response. Beijing will not retaliate to protect a Huawei mid-level manager, but it might if its top tech company is forced out of Poland. Huawei is China’s national champion and actions against the Shenzhen company are treated by Beijing as an act of unfriendliness to China. In its promotion of the global expansion of its tech brands, Beijing can retaliate if the Xi administration’s pet projects get into trouble. The Polish side’s accusations of posing a threat to national security can irk Beijing, as they debunk the cherished myth of Huawei and other Chinese giants as enterprises with purely commercial background and strategic goals. Huawei’s reputation can be harmed and its ability to penetrate foreign markets can be significantly limited. There are, however, fears in Poland that such a blunt move against Huawei could, if decisive actions are taken, worsen relations with China and bring economic losses. The key questions to be answered are: is Poland vulnerable? How much can Poland actually lose by supporting US and challenging Beijing over such issues as cybersecurity?Read More …

Polish cosmetics export to China within the cross border e-commerce framework

Costly and time consuming process of cosmetics registration combined with the requirement to conduct tests on animals were the main obstacles discouraging Polish cosmetic companies to enter Chinese market. Cross border e-commerce has created the great opportunity for Polish cosmetic industry to build the presence among Chinese consumers. Some brands such as Ziaja used this opportunity and Polish cosmetics e-commerce export to China started to take off. The new regulatory framework that had been established in 2016 and was planned to come into force on January 1st 2019 would significantly limit the window of opportunity to sell cosmetic trough the Chinese cross border e-commerce platforms. Fortunately the last minute changes of the regulatory framework implemented in the end of November seem to reverse the earlier changes and leave the channel of Chinese CBEC open for Polish cosmetics. However as the regulatory framework in China and rules interpretation is subject to dynamic changes Polish cosmetic companies wishing to offer their products directly to Chinese consumers will have to adopt more flexible approach and also use alternative channels to offer their products to the Chinese customers.

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Polish trade deficit with China in pharmaceuticals grows sharply

In the recent two years the imports of Chinese pharmaceutical products to Poland have recorded dramatic increase. The game changer in 2017 and 2018 was the dramatic increase in imports of medicaments. They marginalized the first aid kits as well as medical and pharmaceutical accessories, that had dominated the imports structure before. Growth of China’s pharmaceutical industry, rising exports and difficulties, that foreign companies face in the Chinese market increase the challenges for Polish pharmaceutical companies wishing to enter China. Those factors resulted in the increase of Poland’s trade deficit with China in pharmaceuticals in general and medicaments in particular. Pharmaceutical industry is promoted by the Polish government as one of champions of the Polish export. The sharp rise in both amount and quantity as well as a new structure of the pharmaceuticals imports from China is however important signal how the trade exchange between China and Poland has changed in recent years and how the China’s domestic industrial policies impact Poland as China’s trading partner.

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