https://sputnikglobe.com/20230306/finland-seeks-to-reduce-economic-dependency-on-china-1108078729.html
Finland Seeks to Reduce Economic Dependency on China
Finland Seeks to Reduce Economic Dependency on China
Sputnik International
Half of the mobile phones and two-thirds of the laptops used in Finland are produced in China, which also happens to provide dozens of raw materials deemed "critical" by the EU.
2023-03-06T10:15+0000
2023-03-06T10:15+0000
2023-03-06T10:20+0000
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Finland is heavily reliant on China, and it is high time to tackle the situation and take a closer look at this dependency, the Finnish Foreign Ministry has stated.According to Nina Vaskunlahti, Finnish under-secretary of state for external economic relations, this analysis would yield a better understanding of the current situation and spark a genuine discussion about China and its impact on the Nordic nation's economy.For instance, half of the mobile phones used in Finland come from China, as do about two-thirds of all laptops and numerous other key goods, which puts a question mark over the sustainability of the Finnish economy. So far, it is estimated that more than 15,000 person-years depend on imports from China, with the impact on indirect employment being even greater through subcontracting chains."China is an important trade partner for Finland. About five percent of Finland's trade goes to China, exports amount to about 4 billion euros. We depend on China for critical raw materials and components," Vaskunlahti admitted, when speaking to Finnish media.In the future, the Nordic country's dependency on external sources will be reduced as much as possible and self-sufficiency will be beefed up, Vaskunlahti pledged further.So far, however, any disruption of imports from China would soon be reflected in commerce and industry, the Foreign Ministry itself acknowledged, citing eventual shortages of mobile phones, laptops, electronic devices, and batteries. It will not be possible to quickly pivot to alternative sources of imports especially if many countries were affected simultaneously by the disruptions, it said further.Reducing this massive dependence would also require alternative sources of raw materials. Of the 30 raw materials labeled critical by the EU Commission, 19 are mainly, if not exclusively found in China, while 14 critical minerals can be found in Finland. In Vaskunlahti's own words, thought has already been put into means of increasing the domestic production of key components in Finland.Lastly, she spotlighted the role of the green transition and the nation's commitment to reducing emissions, describing it as a "way for us to survive and build this world for future generations as well." According to Vaskunlahti, it is especially valid during times of economic crises, such as the one that ensued in Europe following the Russia-targeted sanctions, which exacerbated the already strained situation on the energy market and sent prices skyrocketing to exorbitant levels, fueling inflation."However, we must remain open to global trade and cooperation. We must remember that not all dependency is harmful," she concluded, putting an emphasis on the "mutual benefits" and the "untapped resources."During his tenure, President Trump embarked on an aggressive US trade policy involving unilateral trade tariffs on Chinese imports. Since then, numerous nations and alliances ranging from India to Germany and the EU at large have sounded the alarm over dangerous over-dependency on China and have been pursuing measures to get around it. These include everything from reshoring efforts and various perks for domestic industry to openly limiting Chinese companies market presence by way of bans, even though these moves were previously slammed as "paternalistic," "protectionist" and largely incompatible with the market economy.
https://sputnikglobe.com/20230301/china-slams-us-for-unilateral-trade-bullying-double-standards-1107909164.html
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chinese exports, finnish economy, critical raw materials, economic protectionism, economic dependency
chinese exports, finnish economy, critical raw materials, economic protectionism, economic dependency
Finland Seeks to Reduce Economic Dependency on China
10:15 GMT 06.03.2023 (Updated: 10:20 GMT 06.03.2023) Based on estimates, half of the mobile phones and two-thirds of the laptops used in Finland are produced in China, which also happens to be an essential source of dozens of key raw materials deemed "critical" by the European Commission.
Finland is heavily reliant on China, and it is high time to tackle the situation and take a closer look at this dependency, the Finnish Foreign Ministry has stated.
According to Nina Vaskunlahti, Finnish under-secretary of state for external economic relations, this analysis would yield a better understanding of the current situation and spark a genuine discussion about China and its impact on the Nordic nation's economy.
For instance, half of the mobile phones used in Finland come from China, as do about two-thirds of all laptops and numerous other key goods, which puts a question mark over the sustainability of the Finnish economy. So far, it is estimated that more than 15,000 person-years depend on imports from China, with the impact on indirect employment being even greater through subcontracting chains.
"China is an important trade partner for Finland. About five percent of Finland's trade goes to China, exports amount to about 4 billion euros. We depend on China for critical raw materials and components," Vaskunlahti admitted, when speaking to Finnish media.
In the future, the Nordic country's dependency on external sources will be reduced as much as possible and self-sufficiency will be beefed up, Vaskunlahti pledged further.
So far, however, any disruption of imports from China would soon be reflected in commerce and industry, the Foreign Ministry itself acknowledged, citing eventual shortages of mobile phones, laptops, electronic devices, and batteries. It will not be possible to quickly pivot to alternative sources of imports especially if many countries were affected simultaneously by the disruptions, it said further.
Reducing this massive dependence would also require alternative sources of raw materials. Of the 30 raw materials labeled critical by the EU Commission, 19 are mainly, if not exclusively found in China, while 14 critical minerals can be found in Finland. In Vaskunlahti's own words, thought has already been put into means of increasing the domestic production of key components in Finland.
Lastly, she spotlighted the role of the green transition and the nation's commitment to reducing emissions, describing it as a "way for us to survive and build this world for future generations as well." According to Vaskunlahti, it is especially valid during times of economic crises, such as the one that ensued in Europe following the
Russia-targeted sanctions, which exacerbated the already strained situation on the energy market and sent prices skyrocketing to exorbitant levels, fueling inflation.
"However, we must remain open to global trade and cooperation. We must remember that not all dependency is harmful," she concluded, putting an emphasis on the "mutual benefits" and the "untapped resources."
During his tenure, President Trump embarked on an
aggressive US trade policy involving unilateral trade tariffs on Chinese imports. Since then, numerous nations and alliances ranging from India to Germany and the EU at large have sounded the alarm over dangerous over-dependency on China and have been pursuing measures to
get around it. These include everything from reshoring efforts and various perks for domestic industry to openly limiting Chinese companies market presence by way of bans, even though these moves were previously slammed as "paternalistic," "protectionist" and largely incompatible with the market economy.
