Despite current market uncertainty, Central Europe will remain an attractive business destination for Western investors. This is also true for emerging giants in Asia. Prior to the economic crisis, a number of Central European governments sought to diversify their trade relationships and lower export dependence on the EU-15. Consequently, growing Chinese and Indian business interest in the region, particularly in Poland, presents new opportunities for greater economic diversification as well as long-term growth prospects. This is key, since Asian economies are forecast to emerge as the leaders of the global recovery (while the EU-15 struggles with a lethargic recovery). Last year, Polish delegations traveled to China and India in an attempt to build foreign investment interest, stressing Poland’s competitive labor and operational costs, developing infrastructure and business law reforms.

Currently, both Chinese and Indian firms are vying to win lucrative road and infrastructure contracts in Poland. Moreover, this September Warsaw will host its inaugural LifeStyle Expo, a trade fair aimed at bringing together Chinese and Polish entrepreneurs to foster stronger business and trade relations. Indian investment is also increasing, specifically in the IT, manufacturing and biotech sectors.

As these new stakeholders increase their ties to Poland and other Central European economies, they bring additional influence on the future economic and political developments in the region. As evidenced by the overall lack of EU-wide coordinated response to the global recession, and the enduring appeal of economic nationalism in some Western member states, Poland has a clear interest in diversifying its pool of foreign investors and trading partners. Simultaneously, this will present new challenges for Western Europe and the United States. As the region’s primary investors, both can anticipate increased competition from emerging global Asian brands, especially as cash abundant economies like China continue to penetrate Central Europe’s markets with badly needed capital and business opportunities.