20:01 2 June 2026
Cheap goods from China starting to destroy Polish industry
Poland is facing the same “China Shock 2.0” affecting Germany, according to an analysis inspired by economists Sander Tordoir and Brad Setser. Industries most exposed to rising Chinese imports have been in decline since 2023, with textile output down 20%, electrical equipment production down 26.5%, and furniture manufacturing largely stagnant. The author argues this is driven by structural distortions in China, including weak domestic consumption, industrial subsidies worth 4.4% of GDP, and an undervalued yuan. As Chinese firms gain global market share, Poland and the EU are urged to adopt a more active industrial policy.
Key recommendations include broader tariffs on strategic sectors, stricter local-content requirements for European manufacturing, and tighter conditions on Chinese investments, including technology transfer, local sourcing, and R&D commitments. The article argues that protecting industrial capacity today is cheaper than rebuilding it later.
(pb.pl)
