In 2024, nearly 38 percent of Finland’s imported products considered vulnerable came from China, according to the Research Institute of the Finnish Economy.
As the era of globalisation is undergoing major changes, Finland and other Nordic countries are becoming increasingly vulnerable to international trade disruptions, according to a new report by the Research Institute of the Finnish Economy (Etla).
It said that the global economy is making a rapid shift to a geo-economic era defined by “increasing geopolitical tensions and rising protectionism”, according to a report abstract.
Geo-economics is the use of power politics by economic means rather than on traditional battlefields, according to the Finnish Institute of International Affairs (FIIA).
According to Etla’s report, the most critical disruption vulnerabilities facing Nordic countries are linked to China and the US.
It said that a major vulnerability Finland faces is its import of lithium-ion batteries from China. Nearly 38 percent of Finland’s imported products which are considered vulnerable came from China in 2024, according to the institute’s report.
“Strategic critical raw materials, essential for green and digital transitions, also exhibit pronounced concentration patterns, often relying heavily on non-European partners,” the report’s abstract read.
“While exports remain foundational, the threat of rising trade barriers poses an immediate risk to export destinations across the Atlantic and beyond. Large firms are the central actors in each Nordic country, both importing the majority of intermediate goods, but also vulnerable goods, and driving the bulk of exports,” it continued.
