FDI outflow from China to Poland – two decades of Chinese FDI in Poland

Abstract

The aim of the chapter is to characterise the evolution of Chinese foreign direct investment (FDI) in Poland since the beginning of 2000s till 2018 in terms of motivation and industrial structure. In addition, it presents the localisation of Chinese companies in Poland, their ownership and employment. The methodology used is statistical analysis of FDI flows and stocks provided by the National Bank of Poland (NBP) and Organization of Economic Cooperation and Development (OECD), and analysis of the data on Chinese multinational corporations (MNCs) from the Orbis database compiled by the Bureau van Dijk and COIG. The findings show that motivation that initially was related with market and efficiency-seeking, employing mostly greenfield entry mode, has been extended with strategic asset-seeking motive, reflected in acquisitions of Polish firms in the periods 2009-2014 and 2015-2018. Another characteristic of Chinese firms recently entering Poland is the fact that their presence is a result of Chinese MNCs’ acquisitions of firms located in third countries, mostly Germany. This is an effect of Chinese MNCs entry into European value chains. The industrial structure of Chinese MNCs in Poland also evolved from assembly of electronics, to manufacturing of parts and components for automotive sector, utilities, and services. Chinese firms are mostly located in key industrial regions in Poland, namely mazowieckie, dolnoslaskie, malopolskie, and slaskie voivodships. The ten biggest Chinese employers have workforce between 372 and 2103 persons and are mostly from automotive and electronics sectors.