Perspectives for development of China-EU relations in the infrastructure investment sector: a case study of COVEC’s investment in Poland

Journal of Political Risk, Vol. 5, No. 8, August 2017

By Paulina Kanarek

In 2009 China Overseas Engineering Group (COVEC) was the first Chinese company to win a public works contract in a member state of the European Union. Two years later COVEC decided to withdraw from Poland and its failure to construct a section of the A2 motorway between Warsaw and Łódź brought up questions regarding access to the EU’s public procurement market by third countries.

This research explores the implications of COVEC’s investment for bilateral relations between China and Poland. Through analysis of this particular case study of the unsuccessful entrance to the EU infrastructure market, this work attempts to uncover whether the fault lies in the communication gap between European and Chinese actors and zero-sum mentality or it is a case of policy failure.

This study will reveal the particular model of operations that the Chinese companies try to pursue in Europe, basing on their previous experiences in the African construction market. By showing that the model which relies on offering the lowest bid and then renegotiating the contract cannot work due to the European Union’s legal framework and Polish domestic laws, this evidence-based research will argue that COVEC’s investment was a classic example of project management failure.

Furthermore, this research aims at casting light on the broader context of the political economy of China’s relations with the European Union. Following the national interest while adhering to its obligations as a member state of the EU, Poland serves as a good example to show the complexity of relations between the PRC and highly fragmented EU.

Through qualitative research, including elite interviews, this work intends to fill in the gap in academic research on China’s relations with the Central and Eastern European states, assessing whether there is space for progress in China-EU relations in the infrastructure investment sector.
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DUP’s Ascent in Westminister and Renewed Political Instability In Belfast

Journal of Political Risk, Vol. 5, No. 7, August 2017

By Arindrajit Basu

As the United Kingdom attempts to recover from the fall-out of Theresa May’s failed gamble via an artificial ‘confidence and supply’[i] arrangement with the Democratic Unionist Party from Northern Ireland, we must consider what this billion pound deal[ii] means for the immediate future of the ‘troubled’ devolved Parliament in Stormont.

United Kingdom Prime Minister Theresa May meets with Arlene Foster, head of the Democratic Unionist Party.

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Serbia’s EU bid and the Kosovo dialogue

A Serbian police officer guards a mass grave site in the village of Rudnica, 280 kilometers (170 miles) south of Belgrade, Serbia, Thursday, April 17, 2014. The mass grave is believed to contain at least 250 bodies of Albanian victims killed during the Kosovo war. (AP Photo/Darko Vojinovic)

A Serbian police officer guards a mass grave site in the village of Rudnica, 280 kilometers (170 miles) south of Belgrade, Serbia, Thursday, April 17, 2014. The mass grave is believed to contain at least 250 bodies of Albanian victims killed during the Kosovo war. (AP Photographer: Darko Vojinovic)

Journal of Political Risk, Vol. 2, No. 4, April 2014.

By Raquel Montes Torralba

With Serbia seeking to join the European Union (EU), as did Croatia in July 2013, European officials have advanced a pre-condition to be resolution of major disputes with Kosovo. In April 2014, Serbia and Kosovo celebrate the first anniversary of an agreement meant to normalize relations. Positive developments include the March 2014 election of a pro-EU majority in Serbia’s parliament, local elections in North Kosovo held in a generally peaceful manner, as well as progress on technical issues such as border control and police transfer. Nevertheless, the political context for 2014 could be derailed by upcoming general elections in Kosovo, the creation of a Kosovo Army, and establishment of a war crimes court for Kosovo’s ethnic Albanian rebels. More particularly, all these factors could impact the creation of a Community of Serb Municipalities, the keystone of the Serbia-Kosovo Agreement. Continue reading