Title: Finnish Companies’ Business Prospects in China: A 2023 Overview

According to a 2023 report by the Finnish Ministry for Foreign Affairs, Finnish companies are reaping enormous benefits from their business activities in China. The report estimates that the total value of such transactions exceeds 20 billion euros annually, solidifying China’s position as a crucial trade partner for Finland.

Moreover, when it comes to foreign direct investments (FDIs), China holds the largest share in Finland among all EU nations. A research study by Lee-Makiyama reveals that 8% of all FDIs in Finland are held by China, a figure that is ten times higher than the EU average.

However, Finnish tech giant Nokia seems to be struggling in this dynamic marketplace. The company’s market share in China for base station and antenna sales has dwindled from 6.2 percent in 2019 to a mere 0.9 percent in 2023, according to confidential industry data obtained by POLITICO.

Strand suggests that Finland’s lenient stance towards Huawei was an attempt to secure a favorable position for Nokia in the Chinese market. Unfortunately, this strategy did not yield the desired results.

Meanwhile, there is a growing global trend of governments erecting barriers against the use of Chinese 5G equipment, driven by diplomatic efforts from Washington, D.C., and various European capitals.

Nonetheless, despite these obstacles that should ideally favor Huawei’s competitors like Nokia and Sweden’s Ericsson, the Shenzhen-based company remains a dominant force in the market. Recent figures from the London-based research firm Omdia indicate that Huawei comfortably maintains its leading position with approximately 31 percent of the global revenue market share. Europe’s Ericsson and Nokia trail behind with 24 percent and 20 percent market share, respectively.

With these global market dynamics, Finnish businesses need to strategize effectively to maintain their strong foothold in the lucrative Chinese market.