28 percent of respondents expected China to remain a slightly or significantly less important trading partner. Ninety-nine percent of export companies reported that they had already reduced their dependence on the country in critical operations and seven percent in all operations, according to the Chamber of Commerce.
Reducing “strategic dependencies” on China is a goal announced by the Prime Minister’s government Petteri Orpo (NCP).
Helsingin sanomat newspaper wrote in his analysis, that while companies in other parts of the world are preparing for a new trade paradigm, Finnish companies seem to be blindly clinging to the hope of China’s growth.
The Chamber of Commerce said last week that companies’ assessments have not changed dramatically since the last survey of export managers in May, despite continued rhetoric about de-risking and warnings of a trade war amid heightened geopolitical tensions. China’s economy is also faltering, the real estate crisis is reflected in the economy and the working-age population is decreasing.
Päivi PohjanheimoThe director of international affairs of the Chamber of Commerce reminded that China’s economy was expected to recover quickly after the country lifted strict coronavirus restrictions.
“However, China’s strict policy regarding the coronavirus left its mark on the trust of companies and consumers. Especially as a result of geopolitical tensions, China has also deliberately reduced its dependence on the West, pushing Western companies into other markets and deliberately getting them to reduce their China exposure,” he said in a press release on September 11.
According to the survey, 98 percent of export companies consider geopolitical uncertainty and the resulting disruptions to affect profitability. Of those who responded to the study, 12 percent assessed the effects as significant, 64 percent as moderate, and 21 percent as minor.
Aleksi Teivainen – HT
Source: The Nordic Page