Helsinki, 3 March 2023 (TDI): Ministry of Foreign Affairs of Finland coordinated a report on trade dependence between Finland and China. The report is a collection of important information and figures to support the discussion of Finland’s dependence on China.
The report showed most imports from China in Commerce sector, whereas exports to China pivoted on large industrial companies. It showed a strong link to imports from China.
Any disruption in imports from China would likely have an immense implication on Finland’s commerce and industrial setup. The repercussions include shortages of cell phones, laptops, electronic devices, and batteries.
The reports showed huge reliance on Chinese imports and bleak prospects for Finland to move to alternative sources of imports, given that all counties are equally affected by import disruption.
Nina Vaskunlahti, Finn Under-Secretary of State for International Trade at the Ministry for Foreign Affairs, stated that reports clearly showed import dependency on China. However, she called dependency mutually beneficial.
She further stated that statistics can not ascertain the indirect interdependencies in subcontracting chains. She further encouraged Finnish companies to continue to access diverse supply chains for potential commercial disruption.
Simultaneously, there are untapped avenues for Finland’s export to China. Large companies make up two-thirds of exports to China.
The volume of business from Finnish subsidiaries operating in China is massive. The companies have major investments in Finland too as exports to China are bankable.
It is also estimated above 15,000 Finnish people depend on Chinese imports. The indirect employment impact is even greater through subcontracting chains.
Until now, China has not invested much in Finnish basic infrastructure or critical infrastructure. The Bank of Finland Institute for Emerging Economies has ascribed a moderate link between Finland’s financial sphere and China.
The industrial and societal green transition in Finland and Europe depends heavily on the availability of raw materials from China. The situation adds to the strategic dependence as defined by the European Union.
The report has been coordinated and contributed by the Ministry for Foreign Affairs, the Ministry of Economic Affairs and Employment, & the Bank of Finland Institute for Emerging Economies (BOFIT).
Also, Statistics Finland, the Confederation of Finnish Industries, the National Emergency Supply Agency, the Finnish Customs, Technology Industries of Finland, and Pharma Industry Finland contributed to the work.