According to Syntun (https://www.prnewswire.com/news/syntun-ltd./), within the 24-hour period on November 11, the Gross merchandise value of online retail platforms was 314.63 billion yuan. A total of 1.16 billion individual packages were purchased. I have to admit being one of the 900 million online consumers in China that day. China's online sales, especially Double 11 sales, continue to grow every year.

These types of consumer boosters are very much needed as the total private consumption in China is in decline. Private consumption accounted for 37.7 % of its Nominal GDP in December 2020, whereas it had been 39.1 % the previous year. China was the only major economy to expand in 2020, achieving GDP growth of 2.3%, as the authorities managed to stay on top of the country's COVID-19 outbreak relatively early. The International Monetary Fund anticipates that China's economy will grow by 8.1% in 2021 (while expecting 5.1% in the U.S., 4.2% in the euro area, and 3.1% in Japan). So far the recovery in China has been led largely by external demand and policymakers would like to focus more on consumption recovery (dual circulation). But to really increase spending, policymakers need to improve social welfare coverage so that households can reduce their precautionary savings. (https://www.spglobal.com/marketintelligence/en/).

Welfare and economic growth stability were some of the important messages of the Sixth Plenum held in Beijing November 8.-11.2021. According to Dezan Shira & Associates (https://www.china-briefing.com/news/) it’s expected that China will continue to focus on science and technology to move up the global value chain, but at the same time secure balanced levels of development through interventions in income policies, tax reforms, and “the third distribution” (encouraging charitable donations from higher-income groups and enterprises).

There are typically seven plenary sessions in every five-year Party Congress, with each generally serving a unique purpose. The sixth plenum usually focuses on ideology and party building, paving the way for the next leadership. Based on Dezan Shira & Associates analysis, this year's communique seemingly dispensed with much of that, focusing instead on the Party's achievements and enshrining Xi's place not only in the Party, but in history. On the first day of the plenum, the draft resolution was addressed by President Xi Jinping, also the party’s General Secretary, on behalf of the Politburo. In the party’s history, only Mao Zedong and Deng Xiaoping have enacted so-called historical resolutions, in 1945 and 1981 respectively. So, the adoption of the third resolution is interpreted as having elevated Xi to the same level as Mao and Deng. The resolution adopted on the Sixth Plenum paves the way for a legacy-defining third term for President Xi. In the closure of the Sixth Plenum, Xi was acknowledged as the “principal founder” of his namesake ideological thought, which will carry on the party’s goal of turning China into a “great modern socialist country” by 2049. Next year’s big meeting, the 20th Party Congress in October 2022, is definitely something to look forward to.

China’s focus on technology and innovation has favored many Finnish companies. One of them is our member company Planora, which entered the Chinese market in 2016 focusing on the utilization of advanced Finnish energy models. You can read more about it in our Guest writer section.

 

We are gradually heading towards the Christmas season. Although in China it means business as usual, it is important to also gather together and dedicate more time for family and friends.

On the behalf of the FBCB, I wish everyone a joyful and peaceful Christmas time.

Ulla Nurmenniemi

Executive Director

Headquartered in Oulu, Finland, Planora is the founding member of the Finnish Energy Club. Since its establishment in the 80s, Planora has been committed to energy technology and clean heating solutions. The company's business mainly operates in Scandinavian and Eastern European countries. Up to now, Planora has maintained good business relationships with more than 200 Finnish energy companies including Fortum, Helen, Vantaa Energia etc.

In 2016, Planora entered the Chinese market and signed a cooperation agreement with China District Heating Association, focusing on the utilization of advanced Finnish energy model to greatly develop clean energy technologies and projects in China. 

And earlier this October, Planora, in collaboration with Dalian University of Technology, Beijing District Heating Group Co.,Ltd etc, was entering the final list of China-Finland Innovation Project which was both approved by Business Finland and China’s MOST, meaning a Finnish Energy Model pilot will be implemented in China.

 

Planora's Business Areas:

Finnish Business Council Beijing is part of Team Finland in China, and an outstanding platform for all Finnish businesses in China. For those companies which need more visibility, we have launched a Premium Membership. It's an upgrade from normal membership, as you can see from the table below.

For those companies in Finland, who are planning to expand their businesses to China, or are in the early stage and don't have an office in China yet, we have a distant membership. It's called Proxy Membership. A very cost-effective way to make your company known to a large audience, and get essential contacts for your future.

See all membership options HERE