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Gazeta Wyborcza - Poland | Tuesday, June 21, 2011

Setback for China's Europe plans

The southern Polish steel mill Huta Stalowa Wola (HSW) has cancelled a supply agreement with the Chinese construction machine manufacturer Liu-Gong. That is no doubt due to the dispute over the Chinese construction firm Covec, which recently cancelled a deal to build the A2 motorway, the liberal daily Gazeta Wyborcza surmises: "Developments in the agreement with the steel mill will show if Beijing decides to play down Covec's problems as a business mishap, and if business ties with Poland cool down in return. ... In fact the construction of the A2 motorway could have opened the door to the EU for the Chinese. Now however the disputes over the motorway and HSW could once more slam it shut. But that only goes for Poland, because the Chinese will certainly find other ways into the European market."

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