Poland signs strategic partnership deal with China

By bne IntelliNews June 20, 2016

Poland and China signed a “universal strategic partnership agreement” on the first day of a visit by Chinese leader Xi Jinping on June 20.

The agreement comes on top of several smaller deals Polish companies signed with Chinese peers. Like most of its Central & Eastern European neighbours, Poland is pushing to raise relations with China as it eyes Beijings huge investment war chest and seeks to boost trade and reduce its massive trade deficit with the eastern giant.

The value of Polish exports to China was just €1.8bn in 2015, more or less equal to value of Polish sales to Sweden in just one month. Imports from China, however, were worth over €20bn in 2015.

Warsaw is also looking to attract more Chinese investment, which made up only 0.2% of foreign direct investment – worth €391mn - according to 2014 data from the National Bank of Poland. Poland suggested in February that it is eyeing an issue of yuan-denominated bonds to meet interest from Chinese investors. Hungary became the first Central European country to issue a dim sum bond in April.

China, meanwhile, is building an enhanced presence in Poland and other CEE countries as part of its 'Belt and Road Initiative'. In November, Beijing signed a memorandum with Bulgaria, the Czech Republic, Poland, Serbia and Slovakia to promote the initiative, which seeks cooperation among countries throughout Asia, Europe and Africa.

Politically, Beijing is seeking a more favourable climate in the European Union – treating Poland and other CEE countries as a gateway – ahead of the EU’s decision on granting China market economy status. China also hopes to provoke support for its stance on the territorial disputes in the South China Sea, the Polish Institute of International Affairs noted recently.

“I hope that Poland will become China’s veritable gateway to Europe, not only in symbolic but also in economic terms, and that joint investment projects will be launched,” Polish President Andrzej Duda told a press conference following signing of the strategic partnership.

 

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Polish government offers temporary olive branch in parliament standoff

Polish media were temporarily readmitted to parliament under the old lax rules on January 5. The ruling party Law and Justice (PiS) had sought to place restrictions on reporting in December, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss