Huawei case: Economic retaliation not effective leverage on Warsaw

Huawei in Poland

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 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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