ETLA, Finland’s business backed economic think tank has claimed that despite the Chinese economy slowing down slightly, growth in Finnish-Chinese economic relations has significant and viable potential.
“The Lion and the Dragon” is the name that has been given to the relations between the two countries and in recent years there has been a wide probe into the relationship.
With respect to Finnish exports to China, 2017 could be water shed year as the Finnish economy appears to have recovered following the economic debacle and setback after the crash of Nokia mobile phone business, indicates the published report.
Compared to other Western countries and economies, the pace of growth of the Chinese economy is still faster despite the fact that the growth in the Chinese economic has slowed down in comparison to previous years. This has the potential to positively contribute to the increase in bilateral trade and investment.
1.76 billion euros (2.07 billion U.S. dollars was the total value of the Finnish exports to China during the first half of 2017. And in terms of the total value of the Finnish goods exported to China, 2017 could turn out to be a record year if the second half of 2017 is equally as good as the first half, the researchers predict. The value in 2016 was 2.85 billion euros.
Both in terms of know-how and in resources, Finland and China play a mutually complementary role, believes the writers. ITC, clean tech and forest industry arete areas of Finish expertise that the Chines are interested in, the report notes.
Following the debacle of the collapse of Nokia mobile phone production and business, there had been a sharp decline in Finnish service exports and investments to China and the writers of the report also claim that Finland has since recovered from the shock.
There was fast decline in 2010 in Finnish service exports to China before the trade reached a value of one billion euros. The selling off of Nokia mobile phone production to Microsoft was the reason of the fall at that time. ETLA now concludes. Additionally, in four years, the direct Finnish investments to China plummeted to zero from about four billion euros per annum at the same time and for the same reason.
Last year, Finnish exports of service has grown to reached a figure of 1.2 billion euros after 2014. The Chinese tourism to Finland has been included as a sales of services by Finland to China in the report.
There are number of subsidiaries of Finnish companies in China and their importance was underlined by the researchers. “The role of subsidiaries is larger than that of exports,” they say.
In 2011, about 12 percent of the turnover of Finnish subsidiaries abroad was contributed by Finnish subsidiaries in China. But with the decline of Nokia, that figure was reduced to a half.
(Adapted from News.xinhuanet.com)