Finnish companies reduce reliance on China

Finnish companies reduce reliance on China

By 28 percent of thesurveyedsurveyed said China was significantly less important as a trade partner. According to the Chamber of Commerce of Finland, nine nine percent of export companies have already reduced their dependence on the country in critical operations and seven percent in all operations.

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

While firms in other regions of the world are preparing for a new trade paradigm, Finnish companies seem to be blindly holding on to hope of growth in China.

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

Päivi Pohjanheimo, the director of international affairs at the Finland Chamber of Commerce, said the Chinese economy was expected to rebound quickly after the country lifted its coronavirus restrictions.

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

98 percent of export companies believe that geopolitical uncertainty and the consequences will have an impact on their profitability. 12 per cent of thesurveyed respondents said the effects were substantial, 64 per cent moderate and 21 per cent minor.