China
Highlights of Trade and Investment in China-Finland Economic Relations
Finland’s expertise in technology and sustainability makes it a valuable partner for China, leading to a trade volume of EUR 12.5 billion in 2022. Finland’s exports include pulp and paper, while China offers affordable textiles and electronics, enhancing bilateral trade prospects.
Finland’s advanced expertise in technology, innovation, and sustainable solutions positions it as a valuable partner for China, which actively seeks Finnish insights in areas such as environmental protection, education, and reforms of state-owned enterprises. Notably, the trade volume between China and Finland reached EUR 12.5 billion (US$13.73 billion) in 2022, with China becoming Finland’s third-largest trading partner, as well as its largest trading partner in Asia for over two decades.
Finnish companies have made significant investments in China, capitalizing on emerging market opportunities and enhancing their global competitiveness. The two countries have further strengthened their collaboration through joint research initiatives in sectors like energy, information and communication technology (ICT), and nanotechnology, paving the way for new avenues of growth.
Finland is China’s third-largest trading partner in the Nordic region, while China has been Finland’s largest trading partner in Asia. Notably, Finland has maintained a trade surplus with China.
Bilateral trade between China and Finland is highly complementary. On one hand, Finland boasts world-class products and technologies in forestry, electronics, machinery manufacturing, and metal processing, with advanced expertise in information and communication, energy, and environmental technologies.
As China advances its modernization efforts and strives to build a resource-efficient and environmentally friendly society, there is a strong demand for Finland’s advanced products and high-tech solutions. On the other hand, China, as the largest developing country, offers high-quality and affordable textiles, clothing, audio-visual products, electronics, electrical appliances, and chemicals, which are well-received in Finland. Overall, the prospects for China-Finland bilateral trade remain broad.
The main categories of Finnish exports to China are pulp, paper, and electromechanical products. In 2023, 44 percent of Finland’s global fiber pulp exports were destined for China, highlighting China as one of Finland’s primary export markets for this product. However, the share of transportation equipment exports from Finland to China is lower than the global average, mainly because China has a competitive advantage in manufacturing transportation equipment, reducing its reliance on imports from Finland.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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