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1 CHINA EUROPE GROUP CHINA DRAGONS Ltd. 89 Focha street, Częstochowa, Poland tel.: fax: President Marcin Sołtysiak tel.: skype: marcin V-ce president Ping Liu tel.: skype: ping-een V-ce president Zbigniew Skrzypczyk tel.: skype:

2 China Europe Group China Dragons was established in order to assist the Government of China and Chinese companies to start activity in Europe and gain the European market (Gate to Europe). The investment was established in Poland, due to its central location, membership in the European Union, access to the UE funds for investments, the highest economic growth in the European Union, a very positive attitude of the Polish Government towards China and place of residence of three founders - 3 DRAGONS. The company is located in the Bank Palace.

3 Marcin Sołtysiak of commerce, member of the Economic Council at the President s office, constantly working s Diamonds, Reliable Company,

4 Issues. As an employers association it participates in the most important social and

5 Lech Wałęsa Bronisław Geremek

6 José Manuel Barroso

7 duction of Chinese investors and projects contractors (investments) both

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10 Providing a Chinese company s proxy to a delegated person that is to be a member Chinese companies documentation cannot be older than 14 days before the creation Chinese companies documentation needs to be translated into Polish by a sworn Determining the date of visit at a notary s office in order to constitute a company in

11 company at a notary s office. approximately one month from the time of conclusion of the contract at a notary s Receipt of container in Popów (central warehouse of the company) and unloading at

12 - - - Embassy of the People s Republic of China in the Republic of Poland

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15 2014 TRADING DIALOGUE CHINA POLAND EUROPEAN UNION The proposal of creating Exhibitions and Commercial Center of Chinese products for Europe CHINA EUROPE GROUP CHINA DRAGONS Ltd., 89 Focha street, Częstochowa, Poland tel. +48 (34) , fax. +48 (34)

16 According to Polish data, export to China in year 2010 amounted 1,5 billion USD and import to Poland amounted 13,6 billion USD. In Chinese export to Poland the most important group is products of electric and machinery industry (55%), textile merchandise (13%), toys and furniture (app. 6,5%) and metallurgical manufacture. Basic type of products sold in Poland are computers, telephones, accessories and computer parts, transformers. Demand for Chinese goods enjoys significant interest in Poland and in the European Union. Import of Chinese products is performed in a few methods. Beginner importers most often use external companies, which charges appropriate commission for the service. Costs of Chinese goods for European importers are growing significantly. Another option is direct import. The best method, from the view of an entrepreneur in Poland, is to find a supplier from China on the Internet (e.g. business platforms). Such solution however bears with communication difficulties and trade negotiations - many partners resigns because of lack of knowledge the Chinese market. An alternative for abovementioned methods is offered by the city of Czestochowa, which implements an innovative solution helping in trading imported goods from China. Meeting the expectations of the market in Czestochowa, there will be open an Exhibition Center, which Chinese producers could present their products, is being opened. The Exhibition Center is first of all an offer for Polish companies that before starting import from China, have not concluded business contacts with a foreigner partner. A decision of starting cooperation with a Chinese supplier is bound often with necessity of getting acquainted with significant part of legal regulation concerning customs and taxes. In some branches also with additional domestic regulations and European Union directives concerning technical conditions, safety standards or environmental rules. Additional factors, which should be taken into account before starting negotiations, are different forms and rules of payment used in domestic trade, as well as different conditions of trade agreements and longer delivery terms than these, when goods are bought from a domestic partner. What is more, communication difficulties in the matter of language barrier and significant differences in mentality and business culture should also be taken into account. All these aspects are a hampering factor for dynamic growth of business on the line China-Poland. The Exhibition Center has to minimize these barriers. It has to enable a direct meeting of Chinese and Polish potential partners. Moreover, provides a possibility to wide-profile view in each sector of products and choosing the best ones without necessity of going abroad. Success of cooperation with Chinese partners binds

17 with long-lasting strengthening of business contacts and often needs constant presence in China. This is also an opportunity to participate in many displays, symposiums, conferences and seminars bringing nearer the topic of Chinese and Polish exchange. Czestochowa is 13th city concerning population (240 thousand inhabitants) and 12th concerning area (160km2) situated in southern-central Poland. Czestochowa is an important transport junction CENTRAL POLAND. It is a city of aged history and tradition with basilica and monastery of Jasna Gora (2-3 mln pilgrims every year) main center of religious cult and pilgrimage in Poland but not only. Czestochowa is a city of enterprising people with strongly developed sector of industry, services, trade and craftsmanship. It is also center of sport, culture and science with constant growing academic center. Czestochowa is a leader of Czestochowa Industrial Area, third largest in Silesian Region the area is located 50 km from Upper Silesian Industrial Region. In the city approximately 26 thousand companies are run. Their main representative in Regional Industrial and Trade Chamber in Czestochowa which unite the biggest companies in region. Investment terrains in Czestochowa belong to Katowice Special Economic Zone. Main initiator of development and economic investments is Agency of Regional Development in Czestochowa. The above mentioned entities, leading by City Hall are willing a support the initiative of Exhibition Center in a priority way. The initiative is in accordance with Strategy of City Development Czestochowa The goal of the entrepreneur is development of trade exchange between China and Poland. For these purpose Czestochowa has got an area, which can be developed, of perfect localization in the vicinity of airfield with possibility to land for small passenger airplanes. The airstrip Czestochowa Rudniki has paved runway 08/26, 2000 m of length and 60 m of width, circles roads, hangars, magazines, fuel base, air traffic control tower, aero - club building with cafe and large grassy area with campsite. There is close a railway siding and trafo station as well. Additional advantage is closeness of main domestic road (DK1), which connects main cities (north- south): Gdansk, Warsaw, Lodz with Silesia. The road lies in a corridor of planned highway A1 connecting north and south of Europe. Closest airports are located in Katowice (approx. 60 km) and Cracow (150 km). These airports can accept passengers airplanes

18 already. Localization of the Exhibition Center guarantees perfect connection for domestic as well as foreign companies, PL and CHRL companies. The Exhibition Center assumes maximum flexibility of using the multifunctional hall. The hall is divided into boxes independently for each branch. Each box can have an individual size. Use is adjusted to users needs it is possible to organize constant exhibitions, as well as other activities, which accompany exhibition events. On the area Center would be located parking for single cars, buses and airplanes too. In the complex a proper technical and service infrastructure is situated a restaurant, bar, cloak room, scene and warehouse. Additionally the city has got wide offer of hotel and gastronomical base, which consists of 30 hotels and over 150 gastronomical places serving dishes from all over the world. The Center will serve as a tool for joining representatives of various companies from the following branches: automotive, petrochemical, fuel, construction, electro technical energetic, touristic, machinery, means of transport and agriculture. Main goals of the entrepreneur are: Realization of modern marketing forms of exhibition centers, whose aim is growth of sales and development of business relations, Providing possibility to organize specialized exhibition, mainly by presenting products and companies on individual stands, Providing universality of exhibition infrastructure, enabling wide diversity of organized exhibitions, adjusting form, scale and shape of exhibition stands - matching the requirements of the exhibitor, Organizing spectacular technological events concerning innovation in processes and production, such as exhibitions, presentations, happenings and branch events with experts. Multifunctional object serves not only entrepreneurs from all over the world, but also many other social groups: universities, educational establishments and from more overall point of

19 view residents of the city of Czestochowa. The Exhibition Center has got its impact on development of companies and residents of region, and simultaneously influences growth of competitiveness of Czestochowa a and Silesian economy. This Center will be designed to be able to approach a Chinese products by the Polish and rest of European. Exhibitions and Commercial Center will let to buy products by interested without necessity of visiting China. Exhibitions and Commercial Center has to ensure the Chinese entities a full of support for the: Space for product displays, Advices- legal, accounting, taxes, customs, marketing, during setting up the business, Cargo logistics- for the supply the goods, passengers transport from the airport to centre city, Infrastructure for air transport- using airport RUDNIKI located on the Exhibitions and Commercial Center area, Intermediate transport- the transport by small airplane to the big passangers airports, Banking allows obtaining the financing for acquisition of Chinese products transactions, Other services regarding full-service providers ChRL and receivers UE. ADVANTAGES OF THE EXHIBITION CENTER 1. Meet the expectations of Europeans and facilitate purchases of Chinese products in Europe - simplification of contacts between Chinese and Polish entrepreneurs, 2. Sharing knowledge about market and business, 3. Access to information, technology and capital, 4. Possibility of promotional activities on wide scale, 5. Modern audiovisual equipment, 6. Simultaneous translation equipment, 7. Consultancy for entrepreneurs on legal and administrative matters, 8. Minimizing risk bound with importing wrong goods,

20 9. Access to infrastructure and equipment enabling loading and unloading of goods, 10. Vicinity of Upper Silesian Industrial Region, largest in Poland, guarantees significant share in number of customers, 11. Organizing access to European market for Chinese companies import of goods to the European Union, 12. Organizing access to Chinese market for Polish companies export of goods to China, 13. Dialog between China and Poland SAMPLE VISUALS OF EXHIBITIONS AND COMERCIAL CENTER

21 The conception projects of Exhibitions and Congress Center of Podkarpackie Voivodeship Fot. RARR China Europe Group China Dragons Management is representative of many units and local government organization which have appropriate infrastructure and devices to create this kind investments. Infrastructure for the air transport - Rudniki Airport