China is an important export market for Finland. This report presents findings of a recent comprehensive study on Finland’s export-oriented China business and its key developments over the past two decades.
The China business of Finnish companies have had a positive effect on the operations of the parent companies in Finland. However, over the past two decades, Finland has lost market share of the added value consumed by China, and the export of Finnish goods and services to China has not developed as positively as in the countries compared. During the same period, the focus of Finland's goods exports has shifted from machinery and equipment to raw materials and intermediate products. The future prospects of exports are overshadowed by geopolitical risks, rising protectionism and the slowdown in China's economic growth.
The purpose of this report is to provide a comprehensive picture of Finland's trade and exports with China, to present recommendations for export promotion as well as to identify key tools for monitoring Finland's export-oriented trade with China in the future.