But the source of suspense and daily discussion topic for last weeks has been the case of Evergrande, the real estate giant from Guangdong. The company is struggling with debts roughly 5 times the amount of annual budget of Finland. The scale of this case would impact not only China but the global market as well. While many are expecting that to keep the course set during last few years the government would not bailout Evergrande, this development is surely one to watch during coming weeks as well.

A continuous focus has been China’s aim to be carbon neutral by 2060. This agenda is penetrating all aspects of business as well. The 14th 5-year plan, in support of the 2060 goal, set forth, among others, an aim to reduce energy consumption by 13, 5% per unit of GDP. But surprisingly the biggest talking point has been the increasing power shortage across the country. According to Trivium China several provinces including Zhejiang, Hunan and Guangdong have implemented industrial production halts to ensure sufficiency of electricity. For example, in Guangdong energy consumption increased 17% year on year between January and August. Power rationing has also spread to consumers especially in the northern provinces. There have been several reports on blackouts in residential areas causing traffic jams and other difficulties. Challenges for the power supply come from increasing demand, due economic recovery. In addition, insufficient fuel supply has caused a rise in prices forcing many power producers to lower production. In some localities changing weather conditions are impacting renewable energy production. As we are heading to winter power demand in the north will increase with heating. It remains to be seen whether China will compromise emission goals at least temporarily and once again turn to coal. (More on this in Trivium China Tipsheets https://triviumchina.com/tip-sheet-archive/) 

Last week the National Bureau of Statistics alongside with relevant ministries published last year’s numbers on science and technology spending. According to the statistics China’s R&D expenditure grew by 10% reaching RMB 2,4 Trillion. R&D expenditure has been growing faster than the GDP during last years nearing the levels OECD countries. This development can be seen as one measure supporting China’s quest to higher degree of self-sufficiency set forth in the 14FYP. However, there are more and more signs of this quest leading to China closing rather than opening up, which has been the direction after 1978 policy. European Union Chamber of Commerce in China points out this concern as a main focus in the recently released EUCCC Position Paper. You can read the whole Position Paper HERE.

As winter is coming, an increasing discussion evolves around the Beijing 2022 Winter Olympics. The games are some four months away but how will the Olympics be organized? What can be expected is a bubble arrangement much like in Tokyo this summer but details remain to be seen. Winter sports was very much on the agenda beginning of September at the World Wintersports Exhibition. This year the expo was organized in Shougang Park in Western Beijing. Opening ceremony and main forums took place in an old blast furnace providing a unique setting for the meetings. 

Another highlight of the month was the Beijing Design Week where the City of Helsinki was this year’s City of Honor. Visitors had a chance to experience real Finnish wooden design as the Helsinki pavilion was made from Finnish wood. The program included business seminars focusing on Sustainable Cities and Education.

And finally, just two days ago FBCB organized the monthly Afterwork with a special guest, Ambassador Leena-Kaisa Mikkola. Over 40 people joined us welcoming the new Ambassador to Beijing. Naturally, we are all looking forward to upcoming collaboration with her! More information on these and other events in September can be found below.

October will kickoff with a well-deserved Golden Week Holiday. On the 21st of October FBCB and member companies are invited to a visit to Shougang Park hosted by Shijinshan local government. In addition, the Nordic Career Fair will finally take place on 23rd of October. More information on these events next in this newsletter.

Before heading to the Golden Week Holiday check out the introduction of one of our newer members Ivana Helsinki by Larry Du in this month’s guest writer section.

With these words, an behalf of all of us in FBCB, I want to wish all our readers an excellent Golden Week Holiday!

Juha Tuominen

Chairman

Finnish Business Council Beijing

In May 2021, Finnish fashion brand Ivana Helsinki had a brand event at the Finnish ambassador’s residence and started a new chapter to China market. In the event, Ivana Helsinki launched the latest fashion silk scarves and home line products to China market.

Ivana Helsinki is a Finnish independent fashion, art, and film brand founded by Pirjo and Paola Suhonen in 1998. In 18 years, Ivana Helsinki has become one of Finland’s internationally best-known art and design brands. Ivana Helsinki is the only Nordic fashion label that has been included in the official calendar of both Paris and New York fashion weeks.

Talking about the design of Ivana Helsinki, Art is the starting point of all Ivana Helsinki’s design work. Everything begins with art– influenced by photography, music and personal memories. The inspiration behind Ivana Helsinki´s collections stems from strong emotions and lived moments. Ivana Helsinki designs are ageless investment pieces. timelessness is the core of Ivana Helsinki’s collection – including fashion, fabricated interior lines. Ivana Helsinki’s products are designed to last a lifetime. The brand creates durable and functional design items that are not based on trends. Products that don’t go out of style, but continue to look and feel modern year after year. Ivana Helsinki is a way to express oneself and beauty through style.

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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