Karolina Anna Golisz
First, to understand the extent of Polish investment in China, it is crucial to take a close look at both goods and services in the Chinese market. Where are the most heavily exploited areas? What is the most popular business plan in China? These are basic questions foreigners ask themselves when trying to track down the hottest trends and avoid falling into no-room-for-business traps. While of course there is no one-size-fits-all solution or answer, this piece takes a closer look, and discusses Polish business opportunities in China.
Ask any Pole living in China what is the most popular Polish product around here, they would most likely say – dairy. According to the latest updates on XINHUA news portal, the EU is one of China’s biggest milk suppliers, with Poland accounting for 12.7% of this share. Polish governmental statistics show that, despite the pandemic, dairy export to China was still growing in the first half of 2020. Polish products seem to be so popular that some batches of dairy had to be shipped to China for ‘double eleven’ shopping festival to fill the demand. Let’s see if the same happens for double-twelve, taking place on 12 of December.
Speaking of shipping channels, it might come as a surprise that Poland actually has a rail cargo connection with China, which debuted in 2019. All that freight starts on the Chengdu-Lodz route and is operated by China Railway Express. Interestingly, the cost of shipment is comparable to sea fright. However, time-wise, rail fright proves to be much faster.
Polish Your Look
Turning to a different industry – Polish cosmetics are getting more recognition in China. They are being promoted to Chinese consumers during major events like the China International Import Expo (CIIE), but actually distributed mainly through e-commerce platforms. Of course, famous western brands are still the ones enjoying the heaviest demand, but Polish producers claim to benefit from a price advantage without harming quality. How such business will unfold, however, is most likely up to domestic distributors, and also clear governmental regulations regarding industry standards, as the cosmetic industry needs consumers’ trust in their brands to maintain value.
Made in Poland – Sold in China
As for services rendered by Polish living in China, one popular entrepreneurship plan remains import-export sourcing. For those not familiar with this industry, it basically means business brokerage between Polish and Chinese parties. This often involves identifying suppliers, doing due diligence on Chinese business partners, quality assessment of products, and general representation throughout business negotiations. This appears to be profitable, as many Polish-based entrepreneurs and companies attempt to establish their supply chains in China, even though they have no network, no assurance of the quality of service, or any knowledge of Chinese market.
What Else is There?
Finally, when talking about Polish business in China, we of course have to mention the Polish Investment and Trade Agency (PAIH), which maintains representative bodies in Shanghai and Chengdu. Among many other initiatives, it focuses on the promotion of Polish brands in China and assisting them during events like the CIIE.
Aside from the PAIH, there are other Sino-Polish private organizations specializing in trade between the two countries that organize themselves into “chambers” or “commerce chambers”. Poland being a part of the Belt and Road Initiative creates room for such business organizations.
If you want to learn more about FDIs opportunities in China for Polish and any other foreign businesses, do not hesitate to contact our team of lawyers and experts at DaWo.