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The Lion and the Dragon – Economic Relations between Finland and China

Author

Listed:
  • Kaitila, Ville
  • Kotilainen, Markku

Abstract

The study presents an up-to-date report on China’s economy and its international role, focusing on the economic relations between Finland and China. China’s economy today is so large and integrated with the rest of the world that changes in its growth, demand structure and international division of labour have a major impact on global economic development. For this reason, at the beginning of the report an analysis of China’s future trends and related risks is presented. Economic relations between Finland and China are assessed at the levels of the aggregate economy, industries and key enterprises. The main data used are statistics on foreign trade, direct investment and foreign subsidiaries. In addition to ordinary gross figures from foreign trade statistics, attention is also paid to intermediate and final product flows of foreign trade based on the World Input-Output database (WIOD). The value-added foreign trade statistics computed by the OECD and the WTO are used to evaluate the direct and indirect impacts of the production of different industries on the foreign trade between Finland and China. The key challenges in the future were assessed with the aid of a business survey. At the end of the report, a comprehensive summary is presented both in Finnish and in English.

Suggested Citation

  • Kaitila, Ville & Kotilainen, Markku, . "The Lion and the Dragon – Economic Relations between Finland and China," ETLA B, The Research Institute of the Finnish Economy, number 276.
    • Handle: RePEc:rif:bbooks:276
    as

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