In the Two sessions last March, premier Li Keqiang announced China’s GDP growth for this year was set to 5,5% – the lowest official target in three decades. Reaching that seems impossible now. Fitch Ratings has cut its forecast for China’s 2022 GDP growth to 4.3%, while Goldman Sachs has cut its China GDP forecast all the way down to 4% (cnbc.com).

What does this all mean for Finnish business in China? The FinnChams, together with Team Finland China, as well as other countries’ Chambers (including the European Chamber of Commerce) have begun to conduct Flash Surveys to gain a better understanding of how our member companies are doing in this challenging situation, where companies are influenced strongly by both the Covid restrictions of China as well as the prolonged Russia-Ukraine war. Joerg Wuttke, President of EUCCC, stated that based on their survey 23% of their members are now considering shifting current or planned investments out of China. Finnish companies echoed a similar sentiment with 26% of member companies foreseeing a considerably worse investment outlook. And that was the case in April. The May survey results will be released in the company panel in June 7 in Team Finland China biannual meeting (see the event section). It will be interesting to hear how companies tackle the challenges, as the business environment has definitely not improved during May. But when it comes to China, we have seen miracles happen before. Although recovery is expected to be slow, far-sighted investors still believe in China’s huge potential and long-term sustainability. 

In June, we also will have an interesting hybrid event: China's Path After the Recent Lockdowns, insights shared by a well-known Chinese economist and researcher who is quoted frequently by the Financial Times, Wall Street Journal, and Bloomberg.

Given the current situation, is there still room and opportunities for newcomers in China? Despite all the risks, China remains a huge and attractive market. Carbon neutrality targets haven’t disappeared anywhere, and the big companies in China are looking at Finland to find smart solutions and potential joint R&D activities. EUCCC has also just published its Carbon neutrality Report, which you can download HERE. Innovative green sustainable solutions are welcome to China. There is still demand for smart healthcare solutions - especially in the early detection of diseases - and remote follow-up for different conditions. Pharmaceutical and biomedical innovations as well as new medicine are always welcome. There is also a high demand for educational cooperation with universities and vocational schools.

Most of these opportunities can be utilized without even coming to China physically. Of course physical meetings have their place, but in reality we can do the majority of our work remotely. Where to look for opportunities to start with? Join us as a distant or actual member and let us help. There are plenty of large companies in China approaching us for assistance in finding a cooperative partner or innovative solutions for which the Nordics are famous. In this newsletter we introduce VELUX, our member company from Denmark, which provides standards for sustainable, carbon neutral construction under its Active House brand. We are also happy to introduce Kemppi as our new Premium member.

June starts with Dragon Boat Festival. Hopefully after that business in Beijing can resume normally again. Meanwhile, check out our interesting events in June below. Definitely something for everyone!

Ulla Nurmenniemi

Executive Director

Velux is a Denmark-based global leader in “Active House” (AH) with a unique strategy for sustainability and carbon neutrality. The company has been in China for over 30 years now, actively bringing the concepts and best practices of AH into the country.

As a global pioneer in implementing a unique strategy of carbon neutrality tracing back to its founding, VELUX Group has embarked on an unprecedented journey towards 100% renewable electricity, zero-plastic packaging and historical emission capture. 

VELUX Group’s 2021 Sustainability Report outlines the progress made at the end of the first year of working to achieve our 2030 sustainability strategy. The report provides updates on all targets, including progress towards becoming carbon neutral in our own operations, halving CO2e emissions from our value chain and capturing the equivalent of the total carbon footprint of our company’s operations between 1941 at its founding and 2041 (historical scope 1 and 2 CO2e emissions).

“After a year of intense work, we have now realized the sheer scale of the task ahead of us. United Nations has called the 2020s the Decade of Action. We believe we no longer have time for just talking and planning. We need to see real leadership and a spirit of collaboration to act. At VELUX, we have started to take action and can already see the initial results but there is still much to do” says David Briggs, CEO of VELUX Group. We achieved limited assurance for our 2021 sustainability reporting and are working towards achieving the auditing level of reasonable assurance in the next few years. See our Sustainability Report 2021 highlights. Read the full Sustainability Report 2021. 

We have introduced ACTIVE HOUSE (AH) concept into China, an internationally recognized system of building standards. Adhering to a people-oriented approach, AH focuses on energy conservation, productivity and being environmentally friendly while improving the health and well-being of building residents. As a global leader for Active House, we have established Active House Academic Committee under the Architectural Society of China as a national platform to promote solutions and best practices for AH. We have created AH China Research Institute for low carbon building design. We have run AH Growth Academy to advocate healthy and active living with inspiration from Nordics.

Nowadays, as Chinese people become increasingly conscious about quality building for healthy living and working, and the low carbon and zero carbon of buildings become a must in China, we have set up the Active House Industry Alliance (AHIA), an industrial platform for knowledge sharing and project generation to facilitate collaboration among companies with shared objectives to build sustainable building together. Now we welcome you to join the AHIA!

FinnCham 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

The Premier Health Insurance Program of the FinnCham is provided exclusively for company members of FinnChams in China. Program is run by experienced international insurance broker – Oriental Benefit Group. The program offers companies with a comprehensive coverage and affordable rates. You can get the group insurance rates even if there's only one person in the company.

Who can join the Chamber’s Premier Health Insurance Plan?

Members of FinnCham China

Contact us for more information. FinnCham Representative at Oriental Benefit Group:

Zikai Liu, Managing Partner

Mobile: 18501718500

Email: zikai.liu@orientalbenefit.com