Finland faces rising exposure to global trade disruption due to heavy reliance on imports from China, with lithium-ion batteries identified as a key point of concern, according to a new report published on Monday.
The Research Institute of the Finnish Economy said nearly 38 per cent of Finland’s imports classified as vulnerable came from China in 2024. The study forms part of a wider Nordic comparison examining how supply chains respond to geopolitical shifts and trade barriers.
The report states that Finland’s economy depends on international trade, with imported components forming a large share of industrial production. Intermediate goods accounted for 57 per cent of Finland’s total goods imports, the highest level among Nordic countries.
Researchers said this reliance creates exposure when supply chains face disruption. “If imports from one region or supplier stop, it is difficult to find replacements quickly,” said Jyrki Ali-Yrkkö, research director at Etla.
The study identifies China and the United States as the main sources of risk for Nordic economies. While most imports come from Europe, critical goods often originate from outside the region. In Finland’s case, the strongest dependency links to China.
Lithium-ion batteries stand out as a central vulnerability. These products support sectors such as electric transport and energy storage, both of which play a role in industrial and climate policy. The report notes that supply of such materials remains concentrated among a limited number of global producers.
The shift towards what researchers describe as a geo-economic environment has intensified these risks. The report links this shift to rising geopolitical tension, trade restrictions and efforts by countries to reduce reliance on foreign suppliers.
Finland’s position differs from some Nordic neighbours. The study finds that Norway and Denmark show the highest overall exposure to trade disruption, while Sweden and Iceland display stronger resilience. Finland falls between these groups but shows a distinct concentration of risk tied to China.
Large companies dominate Finland’s trade flows. Firms with more than 250 employees account for the majority of both imports and exports. This structure places significant responsibility on a limited number of actors within key supply chains.
The report also highlights dependence on raw materials required for green and digital transitions. These materials, often sourced from outside Europe, add to the concentration of risk in Finland’s import profile.
HT
