China is one of Finland’s biggest trading partners. This study examines our bilateral trade in the light of figures and statistics. It discusses exports and imports as well as investments and Finnish subsidiaries in China. Raw materials, medicines and semiconductors are highlighted as special themes. The study sheds light on the complex reality behind monetary and trade flows and provides a background for public debate on Finland’s dependence on China. The report is part of a series of publications that aim at strengthening Finland’s resilience.

An appendix to the report is an analysis, which the Ministry for Foreign Affairs and the Ministry of Economic Affairs and Employment commissioned from Statistics Finland. (That report is only available in Finnish, and linked to the original Finnish version of this report).

Trade dependence is often a two-way dependence that is profitable for both parties. Attempting to eliminate all dependencies is not realistic or desirable in a world of trade interdependencies. A dependence may become a disadvantage when trade is disrupted temporarily or for a longer term. The importance of risk diversification is highlighted in such situations.

It is practically impossible to form a complete picture of trade dependencies, as it is not always possible to trace the origin of goods completely in a world of global subcontracting chains. While the substitutability of certain goods flows is a key question when examining dependencies, it is also a complex matter that would require more in-depth sector-specific research. However, the available data allows research to identify patterns of development in trade dependencies. The conclusions on the theme are summarised at the end of the report.

The study was coordinated by the Ministry for Foreign Affairs. The Ministry of Economic Affairs and Employment, Bank of Finland Institute for Emerging Economies (BOFIT), Statistics Finland, Confederation of Finnish Industries, National Emergency Supply Agency, Finnish Customs, Technology Industries of Finland, and Pharma Industry Finland contributed to the work.