Polish exports to other European countries are falling due to cheaper Chinese products. The problem already affects ten industries, including the production of furniture, batteries and machinery parts, says Polish economist Ignacy Morawski.
The expert writes on the Polish portal “Business Pulse”:
“From January to August 2024, Poland’s exports of goods, mainly to Germany, fell by 2.1%, while in China they increased by 8.7% in August. However, these are not all of our country’s problems. Employment in the manufacturing sector is down more than 1%, excluding the period of pandemic restrictions, the worst since the 2009 financial crisis. Labor costs in Poland are rising and the structure of international trade is changing.”
According to the economist, the industries that Poland lost the most due to the decrease in exports were: electric batteries, lighting equipment, vehicles, lifting equipment, electrical equipment for vehicles, bearings, gears, pumps and compressors, production of office supplies and workshop. goods, furniture, mattresses, air conditioners. In all of these industries, Chinese companies are increasing their share of sales in European markets.
“One of the reasons for the predominance of Chinese products in Europe is their low price, which they receive thanks to the support of the Chinese government.” – says Moravski.
This comes in the form of tax incentives (companies selling exports through e-commerce pay only 4% instead of 25%), the opening of industrial parks and subsidies for the construction of storage and logistics infrastructure. It is expected that by 2025 at least 30 industrial estates will have been built and up to 100 Chinese companies will operate there.
