China – one of the world's top economic giants would like to help in development of solar energy market in Poland. Why and how does it plan to do this? What problems occur on the way of this idea?
For few years exchange in trade between China and Poland has been growing rapidly. This is not the only field of cooperation between those two countries - number of investments made by Chinese entrepreneurs in Poland increases every year. China starts to appreciate Polish market and its possibilities.
What are the sectors of Polish market mostly favoured by Chinese? It is mainly RES, construction and engineering industry projects. There is already a couple of examples, how much investors from East can offer Polish companies (the case of Smithfield Foods, or Pinggao, which won auctions made by PSE).
Main idea and other forms of support
Not only does China invest in Poland, but also it proposes other solutions. We can mention at least Industrial and Commercial Bank of China, which would like to finance RES and generally – Polish energy sector.
Another idea is to invite Gdańsk Shipyard (Stocznia Gdańska) to cooperate in production of poles needed in wind power installations and to become a partner for one of two main Chinese wind energy companies (which are in world top 5 companies of this kind). Such a proposal was suggested by Szymon Ostrowski – president of ICBC in Poland. All these attempts to boost economic cooperation between two countries were a part of the idea to make Poland a Chinese gateway to Europe.
What can stop Chinese giant?
There is a huge problem which stops Chinese investments in Polish market – there are no laws concerning RES and consequently country has unstable situation in this matter. In our last article we describe what problems are connected with implementation of RES law and when we can expect them to be resolved. Both – ICBC and other companies can not afford to take such high risk in investments which could not brings them even return of their funds.
Another issue which should concern Poland is increasing innovation of its economy and development of researches. It should be more competitive, if it wants to cooperate with such partner as China. Otherwise – Poland can lose the opportunity of close and cost-effective cooperation with one of the biggest and fastest growing economies in the world.
We can expect that there will be still some investments in Polish economy made by China and trade exchange will increase. Funds for RES (and so important, according to Chinese possibilities – solar energy market) will not grow until law situation in Poland is able to provide secure ways of placement of funds for entrepreneurs from East.