Beijing and Warsaw have launched a regular rail link, reviving the ancient Silk Road, to boost trade between China and the EU.
China and Poland are seeking to emulate the ancient Eurasian trade route, the “Silk Road“. This is why the first regular rail link between the two countries was established.
This project will not only strengthen trade between Beijing and Warsaw, but also between China and the EU, and is also part of the Chinese initiative “The Belt and Road”launched about ten years ago.
The newly established rail link allows products arriving in Warsaw from China to be efficiently unloaded and distributed locally and to other European markets.
This development underscores China’s strategic efforts to expand its business networks globally and offers Europe new ways to export products to the Asian country.
During a visit to Beijing last June, the Polish president Andrzej Duda had stressed the importance of such economic agreements with China.
Rebalancing the trade balance between the two continents
Magdalena Rybickadirector of theInstitute of Asian Studies of the Vistula Academy of Finance and Businessemphasizes that for the time being, “cargoes of household appliances and small equipment are transported. It highlights the potential of this route to support the export of Polish products to China, particularly in sectors such as agriculture, following recent trade agreements.”
For Poland, China is the second country in terms of economic and trade cooperation, but for China, the Polish market is insignificant for now.
Ms Rybicka explains that her country wants to balance a very unfavourable trade situation.
A business opportunity for European countries
Radosław Pyffelan expert on China’s international politics, discusses the broader implications of this rail connection for Europe: “We are looking at Euro 2024 and many companies sponsoring this event are Chinese companies. This shows us something interesting, namely that Chinese companies are intending to expand into the European market and that this is certainly a business opportunity..”
This rail link is both a signal of an increase in imports from China, but also a hope for increased exports to this country, for example in the field of electric cars.
Mr. Pyffel believes that Poland will not be at the center of this process, but it can be an important part of it. According to him, other countries such as Hungary, Italy and Spain will also try to attract investments from China.
The situation on the border between Poland and Belarus could be a problem
Euronews correspondent Magdalena Chodownik notes, however, that the situation at the border between Poland and Belarusthrough which this train passes, could have an impact on its proper functioning.
“Despite the controversy surrounding relations with China – which has relations with Russia – trade is tightening“, notes Magdalena Chodownik. “However, Poland’s tensions with Belarus could prove problematic – the Polish government does not rule out a complete border closure with its eastern neighbour if the migration crisis continues to grow.”
