Trade Relations Between China And Poland-Challenges And Barriers For Polish Companies In China

Over the last two and half decades, the world has undergone through a rapid period of evolution, a phenomenon known as globalization. One of the key aspects of globalization is that countries and regions have become more integrated than ever before. This is evident in the current high level of social, political, cultural and economic integration across the world that was not there four decades ago. As such, great changes have occurred since 1990s in the economic relations between countries. This is evident in the contemporary economic relations between relations China and Poland. Although the economy of China started growing after the major economic policy reforms that were implemented in 1978, rapid economic growth started in 1990s (Ratajczyk,2013). The main cause of the rapid growth is the increased role played by China in the international trade over the last two and half decades. China has become one of the major players in the global trade network as a result of its economic policies that are export-oriented and that encourage investments in the foreign countries. Similarly, Poland has taken steps to seize the available opportunities in the global trade. In fact, Poland has taken steps that have made it one of the most attractive countries for investment in Europe (Ratajczyk,2013). Both China and Poland have established bilateral trade relations that have led to a tremendous increase in trade and investment activities between them over the last one and half decades. However, China seems to be benefiting more from the bilateral trade relations than Poland. This implies that there is need to explore how the two countries have been conducting their trade activities. The main aim of this study is to analyze the trade and investment relations between China and Poland and analyze difficulties Polish companies have to deal with to enter Chinese market.The purpose of this paper is to analyze the trade and investment relations between Poland and China. Based on the findings of the existing literature, the researcher aims to test the hypothesis that the trade relations favor China more than Poland. With regard to the nature of the study, the researcher adopts an exploratory research design and a desk-based research approach. Further, the researcher collects the data for the study from secondary sources. To achieve the purpose of the study, the researcher examines three elements of the Polish-Chinese trade relations. The first element is the data about Polish-Chinese trade (exports, imports and balance of payments) from 2004 to 2013. The second element is the main commodities that were traded between China and Poland in 2012. The third element is the cumulative FDI in the Polish-Chinese trade from 2004 to 2011. The findings derived from the research support the proposed hypothesis that the trade relations favour China more than Poland. The researcher concludes that Poland can achieve better trade balance with results if the government and other local institutions that support entrepreneurs facilitate export-oriented trade with China.If local government agencies and other institutions will be able to support Polish companies who are opened for export to China then Poland can achieve a better the trade balance The authors collected the findings of 38 companies answers, showing the main areas of cooperation and barriers and challenges Polish investors have to deal with to enter the Chinese market. The results show that Polish companies face many problems and need to be supported to improve and develop the trade relations.Thesis is divided into four parts. The first chapter includes the general introduction about People's Republic of China, which includes geography, political system information, and administrative divisions within the resident population structure. But also informations about agriculture, machinery industry, textile and metallurgical industries.Second Chapter is concentrated on formation of Polish-Chinese trade relations. This chapter is divided into three parts, the first two parts in two stages describes the number and structure of import and export commodities between the two countries. Here the author presents and compare results before and after Poland's accession to the EU. The third part of the above-mentioned Chapter is a discussion and conclusion of Polish-Chinese cooperation.Next, the third chapter focuses on the prospects for cooperation with the Polish companies in China. Here the author will present the findings of the nature and importance of China for Polish enterprises, detailing the characteristics and evaluation of business cooperation between Poland and ChinaFinally, the fourth chapter is about results of researching of problems appearing when working with the Chinese enterprises. The author analyzing all barriers the Polish companies face to enter the Chinese market and showing solutions to resolve all challenges.Research data used in the paper come from Poland's author of the survey results and business documents and archives. Particularly important bibliographies are:Andrzeja Bolesty, Chiny w okresie transformacji:reformy systemowe, polityka rozwojowa i panstwowa przedsiebiorstwa autorstwa and Kazimierz Starzyk, Przemiany gospodarcze Chinskiej Republiki Ludowej w procesie reform in order to obtain the latest information of China's political and economic situation, and data acquisition. Network sources:Ambasada Rzeczpospolitej Polskiej w Pekinie (Embassy of the Republic of Poland) and Departament Analiz i Prognoz Ministerstwa Gospodarki Rzeczpospolitej Polskiej site, the latest statistics.