Just a couple weeks back we had an event with Plenum, an independent research firm covering the Chinese economy, financial markets, policies and politics. The founders are some of the best experts on the field now in China and the news they shared wasn't too good. Based on their estimation, the policy will remain in effect even after November 2022 when the Chinese Communist Party national congress convenes to elect its new leader. Another sign suggesting this is that China has pulled out from hosting the 2023 Asian Football Confederation (AFC) Asia Cup. Installing PCR testing kiosks across cities to test and monitor cases of infection also suggests that China may well be planning to live with the zero-COVID policy over the long term. It seems that gradually quarantine times are becoming shorter for inbound travelers, but based on China Daily article, cutting quarantine time should not be interpreted as a relaxation of precautions.

Despite the exceptional circumstances, students in China have taken the national college entrance exam (also known as Gaokao) in the beginning of June with a record number of 11.93 million registered students (China Global Times). The epidemic generation has been attending classes mostly online throughout high school due to the constant closure of onsite schooling, adding extra pressure on the students. At the other end of education, based on CNN, this year's 10.76 million college graduates are facing a shrinking job market. Youth unemployment in urban areas is at its highest. The government plans to offer tax incentives and loans for college graduates who start businesses serving the rural community. Similar benefits will be offered to existing small businesses in villages that hire college graduates, including fields such as housekeeping and elderly care. Decreased job opportunities are largely the result of localized COVID-19 outbreaks as well as some enterprises undergoing structural transformation. The return of Chinese students from abroad has also further aggravated competition.

In the middle of all these obstacles, there is still good news. Despite all problems with constant lockdowns, supply chain challenges, and interruptions in production, many Finnish companies face growing demand from customers and sales are still climbing up. China’s domestic market is big and prolonged uncertainty has forced many companies to adjust, becoming more agile. Good news were shared by FinnCham Board members at dinner hosted by Ambassador Mikkola.

For newcomers, there is a growing number of online matchmaking events and new technology competitions run by local governments and big Chinese companies. Last Sunday we participated Langfang International Economic and Trade Fair hosted by Ministry of Commerce and Hebei government, and two days later Jilin-Finland online Economic and Trade Fair organized by Business Finland together with Jilin government. Below you can find some of the ongoing competitions and opportunities. As our world is becoming increasingly virtual, surprisingly many China entry activities can be done online now.

Our June-July guest writer is Stora Enso, producing packaging for consumer products in China – including carton boxes, rigid boxes, corrugated boxes, paper bags, user manuals, and molded fiber. Their capacity is 1 billion pieces of packaging products annually! Stora Enso is a great example of an entrant in a more traditional industry that is doing well in China. Read from their story below what are the key factors for their success!

While starting our summer break, we still have some local events and our online language courses in July. The Chinese usually have their summer vacations in August, so we will also resume full activity in September.

On the behalf of FinnCham, I wish you all a relaxing Summer

Ulla Nurmenniemi

Executive Director

Our story in China begins when Stora Enso established eucalyptus plantations in Guangxi region, Southern China in 2002. Since 2016 Beihai Mill started operations. Today the market is requesting high quality materials for premium consumer packaging and places high value on food safety – and in recent years also growingly on the packaging sustainability.

Stora Enso is a Finland and Sweden based leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. Stora Enso has approximately 22,000 employees and total sales in 2021 were EUR 10.2 billion.

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. A very cost-effective way to make your company known to a large audience, and get essential contacts for your future.

Not a member yet: Join us HERE

FinnCham Beijing’s mission is to help Finnish companies to succeed in China