Finnish companies see China less important trade partner

Finnish companies see China less important trade partner

By 28 per cent of thesurveyedsurveyed, China was expected to become slightly or significantly less important trade partner. Finland's Chamber of Commerce said that nine percent of export companies have already reduced their dependence on the country in critical operations and seven percent in all operations.

Reducing'strategic dependences' on China is a stated goal of the government of Prime Minister Petteri Orpo.

Helsingin Sanomat wrote in its analysis that while companies in other parts of the world are preparing for a new trade paradigm, Finnish companies seem to be blindly holding on to hope of growth in China.

The Finland Chamber of Commerce reported last week that the corporate assessments have not changed significantly since the previous export-manager survey in May, despite continuing rhetoric about de-risking and de-coupling and warnings about a trade war amid heightened geopolitical tensions. The economy in China is in a state of collapse, with the real estate crisis causing the economy to collapse and the working-age population in decline.

The Finnish government's international affairs director, Päivi Pohjanheimo, said that the Chinese economy was expected to rebound quickly after the country lifted its coronavirus restrictions.

However, its strict policy on the coronavirus had a significant impact on business and consumer confidence. Especially in the wake of geopolitical tensions, China has deliberately reduced its dependence on the west, driving Western companies to other markets and prompting them to intentionally reduce their China risk, she said in a press release on 11 September.

The survey also revealed that 98 per cent of export firms believe that the geopolitical uncertainty and the associated disruptions will have an impact on their profitability. Twelve percent of thesurveyed respondents said that the effects would be substantial, 64 percent moderate and 21 percent minor.