Chinese Greenfield Investment in V4



Visegrád 4



Greenfield investment
vs. brownfield investment

>

Chinese investments in V4 vs. Europe



Chinese greenfield investments in V4
Breakdown of FDI into greenfield and M&A
(Percent of GDP)

CZECH REPUBLIC
2016 visit of Xi Jinping in Prague - investment memorandum and agreements
CEFC acquisitions
Stable greenfield investment growth in electronics, engineering sectors
Reasons for investments:
strategic location
excellent connectivity
well-skilled labour force (and cheap)

Changhong Europe Electric
LCD and LED TV manufacturer
Nymburk, 2005
Production of 1 million LCD TV´s per year
Employs 400 people

Shanghai Maling Aquarius
Food producer
Teplice, 2008
Should employ 150 people, produce 10 000 tonnes of canned food per year
Reality: only 20 employees, production less than 15% of the planned capacity
Cause of failure: trademark dispute

Huawei & ZTE
Cooperate with local mobile phone operators,sale of mobile phones and smartphones
Employ 350 people
Huawei plans to invest over 360 million USD, employ 4000 people within five years

HUNGARY



Company
Sector
Year
Total Value (estimate, EUR million)
Result
Yanfeng Automotive Interiors
Automotive
2004
25
Success
Huawei
ITC
2005
300
Success
ZTE
ITC
2005
15
Success
Livan Biodegradable Product
Biotechnology
2007
18
Failed
Lenovo-Flextronics
ITC
2009
NA
Success
Shanghai Construction Group
Cargo Airport
2009
NA
Failed
Orient Solar
Solar panels
2011
NA
Failed
BYD
Electric buses
2016
20
Success

BYD - Build Your Dreams



Green City Solution



[USEMAP]



POLAND
Why Poland?


WHAT POLAND WANTS X WHAT CHINA WANTS
Top recipients of Chinese greenfield FDI, by Member State, 2015-2016:





SLOVAKIA
-complicated foreign policy towards China
-no Chinese investments prior 2007 in general
-not a typical developed country with desired technology or brands
-not a developing country rich on primary materials
-a small country
-landlocked geographical position
-shortest border with western countries...
Why not?







http://ies.cass.cn/english/chinare/cere/201411/t20141105_2464733.shtml
https://sinopsis.cz/en/chinese-fdi-in-poland-still-just-wishful-thinking
https://polandin.com/37446245/chinese-company-to-invest-usd-45-mln-in-poland-to-build-factory
http://westdollar.com/sbdm/finance/a/20181117987250276.html
http://chinaplus.cri.cn/news/business/12/20180820/172809.html
http://en.thholding.com.cn/2017-10/18/c_107229.htm
http://www.chinadaily.com.cn/a/201809/29/WS5baf33d5a310eff3032804bf.html
http://www.xinhuanet.com/english/2017-10/16/c_136681761.htm
http://europe.chinadaily.com.cn/a/201809/29/WS5baf33d5a310eff3032804bf_2.html
http://chinaplus.cri.cn/news/business/12/20180820/172809.html
https://presov.korzar.sme.sk/c/7995693/cinsky-investor-otvoril-v-kruzlove-zavod-na-vyrobu-obuvi.htm
l
https://www.researchgate.net/profile/Rudolf_Fuerst/publication/322068573_The_Czech_Republic_Receivi
ng_the_First_Relevant_Chinese_Investments/links/5a4242fdaca272d29458f0c2/The-Czech-Republic-Receivi
ng-the-First-Relevant-Chinese-Investments.pdf
https://finweb.hnonline.sk/ekonomika/804882-cinsky-gigant-stavia-v-presove-svoju-jedinu-fabriku-v-e
urope
https://byznys.ihned.cz/c1-65734600-cinsky-huawei-bude-v-cesku-investovat-pres-8-5-miliardy-korun-m
a-plan-vytvorit-az-4000-pracovnich-mist
https://teplicky.denik.cz/podnikani/krachujici-hrobcicka-konzervarna-shanghai-maling-ma-noveho-maji
tele-20170703.html