Poland gives profits to others – how the margin makes us just "Europe's worker"
Do you know what I wonder? Why does Poland, despite having enormous potential, still remain in the role of Europe’s assembly plant? We work hard, we have excellent specialists, but ultimately, global brands are not created here, and we do not dictate the terms. Someone might say: "Well, yes, we are a developing country, that’s normal." But is it really? Let’s look at China – just a few decades ago they were the "cheap hands of the world," and today? They produce their own smartphones, electric cars, develop artificial intelligence, and conquer markets. How did they do it? And could Poland follow a similar path?
What is margin and why is it key to development?
Let’s start with the basics. What is margin? It is simply the difference between production cost and selling price. The larger the margin, the more the company earns. In theory, it’s simple. But in practice? The Polish economy is based on low margins. This means we produce components, semi-finished products, subcontracting services – but we do not sell the final product under our own brand.
Let’s take the automotive industry as an example. In Poland, we have factories of Volkswagen, Fiat, Mercedes – we assemble cars, we make parts. But it’s the Germans, the French, or the Koreans who sell finished cars, earning 30-40% margin per unit, while we earn a fraction of that amount. And now let’s look at China – once they did the same, assembling for Western corporations. But today? We have BYD, NIO, Xiaomi, which produce their own electric vehicles and are starting to compete with Tesla.
The problem of low margins affects our entire economy. Let’s look at electronics, energy, even IT – many Polish companies do great things, but ultimately they end up as subcontractors for larger players. It’s like an employee on a salary, who earns but never builds a fortune because their work drives the wealth of the boss.
How did China stop being the world’s assembly plant?
Exactly. Since China got out of this trap, how did they do it? Three key things were involved: technology transfer, protection of their own market, and building their own brands.
1. Technology transfer
Western companies could not just enter China and sell their products there. They had to share technology with Chinese partners. This allowed the Chinese to learn, copy, and then develop their own solutions. An example? Huawei – once it supplied components for foreign telecoms, today it is one of the leaders in building 5G networks.
2. Strong industrial policy
China did not leave everything to the free market. The state pointed out key industries – automotive, electronics, energy – and began to actively support them. Companies received tax breaks, preferential loans, government contracts. In Poland? Often it’s the opposite – instead of supporting domestic companies, we are more willing to accept foreign investors who build factories here and pay low wages.
3. Building their own brands
Once "Made in China" was associated with cheapness. Today? Companies like Xiaomi, Lenovo, DJI, or BYD compete in global markets. China has stopped being just a factory – they have started to create their own products, and consequently – to capture the entire margin.
Where does Poland go wrong?
Well, what does Poland do? Instead of focusing on our own brands, we focus on assembly for others. It’s like we got great cards to play, but we keep playing defensively, waiting for someone else to make the first move.
Let’s look at the energy sector – we have the potential to develop our own renewable energy technologies, but for now, we buy panels and turbines from Germans and Chinese. Automotive? We have great engineers, but foreign companies dominate the market. Defense industry? We could be a leader in Central Europe, but we still invest too little in R&D.
How can Poland change its strategy?
We have several options.
1. Investing in Polish technologies and brands
If we want to be a global player, we must support our own companies. This does not mean closing ourselves off to foreign investors, but promoting our enterprises, just as China did. The government should support the development of Polish technologies in key sectors – IT, automotive, energy.
2. Poland as Europe’s logistics hub
We are in the middle of Europe – that’s a huge advantage. If we play this well, we can become the main transit point between East and West. Projects like the Central Communication Port (CPK) can help strengthen this position, but we must ensure that we derive real benefits from it, and not just serve as a "stop" for foreign companies.
3. Cooperation with Ukraine – a new opportunity for development
The reconstruction of Ukraine after the war is a gigantic business. If Poland plays this well, we can become a key supplier of technology, services, and infrastructure for our eastern neighbors. Cooperation in the defense, energy, or construction sectors can help us create new, strong Polish brands.
Poland must stop being an "employee on a salary"
To fully understand the problem, let’s imagine an average employee on a salary. They work to cover their basic needs – bills, food, housing. Often they do not have enough resources or time for development, investments, or building something of their own. They do not create assets that can generate income in the future, but focus on current survival. This means their financial situation is stable, but it does not lead to wealth accumulation.
Now let’s transfer this analogy to the macroeconomic level and Poland as a state. If a country focuses mainly on production for foreign companies, it acts as a subcontractor, not a capital owner. We have cheap labor, factories, but profits and decisions are controlled by foreign corporations. We do not build our own brands or technologies, we do not develop innovations on a large scale, we just perform tasks for wealthier economies. Poland, like an employee on a salary, allocates its resources to meet current needs instead of investing in its future.
True development begins when the state – just like an entrepreneur – creates its own products, innovations, and technologies. We must move from the role of subcontractor to that of creator and owner. This means investing in Polish companies, building strong brands, and developing strategic sectors such as military technologies, energy, or modern industry. Only then will we stop working for the wealth of others and start building our own.
Summary
If Poland truly wants to develop, we must change our mindset. We cannot be satisfied with the role of subcontractor for Germans, French, or Americans. We must create our own brands, technologies, innovations.
China has proven that it can be done. It’s not easy, it won’t happen overnight, but if we are consistent, in 20-30 years we could have our own global companies, our own technologies, and Poland could become not just an assembly plant, but a leader in Central and Eastern Europe.
In conclusion
Since Poland is often called the "China of Europe" due to its role in production and low labor costs, it is worth drawing the right conclusions from this. China did not stop at being just a cheap factory of the world – they invested in technology, the development of their own brands, and innovations. If we truly want to catch up with China, we must take a similar direction and build strong, globally competitive Polish companies.
Do you know what I wonder? Why does Poland, despite having enormous potential, still remain in the role of Europe’s assembly plant? We work hard, we have excellent specialists, but ultimately, global brands are not created here, and we do not dictate the terms. Someone might say: "Well, yes, we are a developing country, that’s normal." But is it really? Let’s look at China – just a few decades ago they were the "cheap hands of the world," and today? They produce their own smartphones, electric cars, develop artificial intelligence, and conquer markets. How did they do it? And could Poland follow a similar path?
What is margin and why is it key to development?
Let’s start with the basics. What is margin? It is simply the difference between production cost and selling price. The larger the margin, the more the company earns. In theory, it’s simple. But in practice? The Polish economy is based on low margins. This means we produce components, semi-finished products, subcontracting services – but we do not sell the final product under our own brand.
Let’s take the automotive industry as an example. In Poland, we have factories of Volkswagen, Fiat, Mercedes – we assemble cars, we make parts. But it’s the Germans, the French, or the Koreans who sell finished cars, earning 30-40% margin per unit, while we earn a fraction of that amount. And now let’s look at China – once they did the same, assembling for Western corporations. But today? We have BYD, NIO, Xiaomi, which produce their own electric vehicles and are starting to compete with Tesla.
The problem of low margins affects our entire economy. Let’s look at electronics, energy, even IT – many Polish companies do great things, but ultimately they end up as subcontractors for larger players. It’s like an employee on a salary, who earns but never builds a fortune because their work drives the wealth of the boss.
How did China stop being the world’s assembly plant?
Exactly. Since China got out of this trap, how did they do it? Three key things were involved: technology transfer, protection of their own market, and building their own brands.
1. Technology transfer
Western companies could not just enter China and sell their products there. They had to share technology with Chinese partners. This allowed the Chinese to learn, copy, and then develop their own solutions. An example? Huawei – once it supplied components for foreign telecoms, today it is one of the leaders in building 5G networks.
2. Strong industrial policy
China did not leave everything to the free market. The state pointed out key industries – automotive, electronics, energy – and began to actively support them. Companies received tax breaks, preferential loans, government contracts. In Poland? Often it’s the opposite – instead of supporting domestic companies, we are more willing to accept foreign investors who build factories here and pay low wages.
3. Building their own brands
Once "Made in China" was associated with cheapness. Today? Companies like Xiaomi, Lenovo, DJI, or BYD compete in global markets. China has stopped being just a factory – they have started to create their own products, and consequently – to capture the entire margin.
Where does Poland go wrong?
Well, what does Poland do? Instead of focusing on our own brands, we focus on assembly for others. It’s like we got great cards to play, but we keep playing defensively, waiting for someone else to make the first move.
Let’s look at the energy sector – we have the potential to develop our own renewable energy technologies, but for now, we buy panels and turbines from Germans and Chinese. Automotive? We have great engineers, but foreign companies dominate the market. Defense industry? We could be a leader in Central Europe, but we still invest too little in R&D.
How can Poland change its strategy?
We have several options.
1. Investing in Polish technologies and brands
If we want to be a global player, we must support our own companies. This does not mean closing ourselves off to foreign investors, but promoting our enterprises, just as China did. The government should support the development of Polish technologies in key sectors – IT, automotive, energy.
2. Poland as Europe’s logistics hub
We are in the middle of Europe – that’s a huge advantage. If we play this well, we can become the main transit point between East and West. Projects like the Central Communication Port (CPK) can help strengthen this position, but we must ensure that we derive real benefits from it, and not just serve as a "stop" for foreign companies.
3. Cooperation with Ukraine – a new opportunity for development
The reconstruction of Ukraine after the war is a gigantic business. If Poland plays this well, we can become a key supplier of technology, services, and infrastructure for our eastern neighbors. Cooperation in the defense, energy, or construction sectors can help us create new, strong Polish brands.
Poland must stop being an "employee on a salary"
To fully understand the problem, let’s imagine an average employee on a salary. They work to cover their basic needs – bills, food, housing. Often they do not have enough resources or time for development, investments, or building something of their own. They do not create assets that can generate income in the future, but focus on current survival. This means their financial situation is stable, but it does not lead to wealth accumulation.
Now let’s transfer this analogy to the macroeconomic level and Poland as a state. If a country focuses mainly on production for foreign companies, it acts as a subcontractor, not a capital owner. We have cheap labor, factories, but profits and decisions are controlled by foreign corporations. We do not build our own brands or technologies, we do not develop innovations on a large scale, we just perform tasks for wealthier economies. Poland, like an employee on a salary, allocates its resources to meet current needs instead of investing in its future.
True development begins when the state – just like an entrepreneur – creates its own products, innovations, and technologies. We must move from the role of subcontractor to that of creator and owner. This means investing in Polish companies, building strong brands, and developing strategic sectors such as military technologies, energy, or modern industry. Only then will we stop working for the wealth of others and start building our own.
Summary
If Poland truly wants to develop, we must change our mindset. We cannot be satisfied with the role of subcontractor for Germans, French, or Americans. We must create our own brands, technologies, innovations.
China has proven that it can be done. It’s not easy, it won’t happen overnight, but if we are consistent, in 20-30 years we could have our own global companies, our own technologies, and Poland could become not just an assembly plant, but a leader in Central and Eastern Europe.
In conclusion
Since Poland is often called the "China of Europe" due to its role in production and low labor costs, it is worth drawing the right conclusions from this. China did not stop at being just a cheap factory of the world – they invested in technology, the development of their own brands, and innovations. If we truly want to catch up with China, we must take a similar direction and build strong, globally competitive Polish companies.
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