Chinese companies urged to invest more in Poland
Updated: 2013-04-12 07:32 By Li Jiabao ( China Daily)
0
Chinese companies are being urged to invest in Poland as the European nation is expected to serve as one of the access points to enter the European Union, Ukrainian and Russian markets, officials said on Thursday.
"So far, there's not much direct Chinese investment in Poland," Tadeusz Chomicki, Poland's ambassador to China, told a news briefing.
Recently some Chinese companies are showing strong interest in investing in Poland. They are primarily focusing on infrastructure construction, roads, railways and power plants. Also, some companies are seeking opportunities in new technology, and information technologies, he added.
He added that the country welcomes foreign investors, especially Chinese investors, in sectors such as infrastructure, renewable energy, bio-technology and finance.
The cumulative Chinese investment in Poland by 2011 was about 350 million euros ($457.87 million), and Polish investment in China was about 130 million euros, according to Kosciukiewicz.
"Poland is the only country in the European Union with more than 20 years of uninterrupted GDP growth," Chomicki said. "It is also recognized as one of the best destinations for foreign investment with a good investment environment and stimulus packages."
Kosciukiewicz added that Poland has 14 special economic zones, which grant foreign investors tax exemptions or reductions.
China and Poland established a strategic partnership in 2011, and "our bilateral relationship faces a rare historical opportunity," said Xu Jian, China's ambassador to the country.
The first China-Poland Regional Forum will convene in the Polish coastal city of Gdansk on April 22. The event is expected to attract more than 150 participants from more than 20 Chinese provinces and municipalities including Beijing, Shanghai and Shenzhen.
"As China urges its companies to go abroad, we should increase our investments in central and eastern European countries, especially Poland," said Li Jianping, vice-president of the Chinese People's Association for Friendship with Foreign Countries. "Enhancing regional or provincial cooperation between the two countries is a practical way to achieve this."
Sun Yuxi, head of the China-Poland Friendship Association and also a former Chinese ambassador to Poland, said that the number of Chinese workers in Poland rose to 30,000 in 2012 from 3,000 in 2010, while more than 20 major companies and 300 small and medium-sized enterprises registered businesses in Poland.
Chinese businesses in Poland are mainly centered on electronics, such as the production of TV sets and monitors, the electro-machinery industry, IT and construction machinery. Major investors include TCL Corp, Digital View, Nuctech, ZTE and Huawei, Kosciukiewicz said.
In February 2012, Guangxi Liu Gong Machinery Co Ltd took over Huta Stalowa Wola, a Polish road machinery maker, for about $100 million, marking China's biggest investment to date in Poland.
In addition, the Chengdu-Lodz direct rail route, connecting the inland metropolis and the central city in Poland, was put into use earlier this year and became the fastest railway freight route between China and Europe.
Kosciukiewicz added that Chinese companies do not yet have enough knowledge about Poland and EU policies.
"Sometimes when they go to Europe, they do business as they do in China. But that's not possible because of different regulations and policies," Chomicki added.
Poland Remains a Safe Haven for Investors -Rostowski
By Dow Jones Business News, April 11, 2013, 07:01:00 AM EDT
WARSAW--Poland remains a "safe haven" market for investors amid global financial turmoil, Finance Minister Jan Vincent Rostowski tweeted on his official account after the ministry sold 5 billion zlotys ($1.59 billion) in sovereign bonds Thursday.
The finance ministry sold PLN3.05 billion of its 10-year paper, due in 2023, at a 3.515% yield, the lowest ever, Mr. Rostowski said.
Poland also sold 1.98 billion zlotys of a 11-year floating rate note.
Polish treasury yields on the secondary market are at an all-time low as foreign investor demand has increased due to comparatively attractive yields paired with moderate risk.
Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com
(END) Dow Jones Newswires 04-11-130701ET Copyright (c) 2013 Dow Jones & Company, Inc.
Last edited:
