Deeper ties urged to boost green technology

Despite geopolitical uncertainties and setbacks to free trade, China and Finland can further strengthen their cooperation in developing green technologies, which is conducive to sustainable growth globally, said government officials and senior executives of Chinese and Finnish companies.

They made the remarks during the 2024 Finland-China Business Summit held in Shanghai late last month where Finnish President Alexander Stubb was present as part of his four-day state visit to China from Oct 28.

According to Stubb, executives from 25 Finnish companies accompanied him during the latest visit. They signed 10 memorandums of understanding with governments and around 20 business agreements.

About 250 Finnish companies have set up operations in China, of which 130 are based in Shanghai. Finland is a trustworthy trade partner, as Finnish companies are straightforward, law-abiding and have much interest in expanding their businesses, said Stubb.

Expressing concern over protectionism, Stubb said that such language is being heard in a lot of countries and that there has been increasing talk of tariffs, impediments to trade or bringing value chains home.

However, Stubb stressed that "economic growth does not happen only inside borders".

"Without free trade, we will not have growth. And without growth, we will not have welfare." In the spirit of free trade, trust and cooperation, it is very important that Finnish and Chinese companies keep the channels open, he said.

While climate change has become one of the pressing tasks that the world has to address now, China and Finland can strengthen their cooperation to come up with more innovative solutions, he added.

Patrick Zhong, founding managing partner of Chinese private equity firm M31 Capital, one of the organizers of the summit, said Finnish companies have long valued sustainability and a clean environment. They have a deep understanding of the world, including economic cycles, markets, innovation and geopolitics.

On the other hand, Chinese companies are making due progress in sustainable development. Industry leaders in new energy, electric vehicles, energy storage and smart logistics have been actively advancing green transition within their industries, he said.

Zhong further said that sustainability is not only about the environment but also building sustainable business partnerships.

Kari Hietanen, executive vice-president of Finnish marine and energy solutions provider Wartsila, said that Chinese and Finnish companies can step up their cooperation in developing green technologies for the maritime industry.

In April, Wartsila said it will supply the methanol-fueled auxiliary engines for five new container vessels for COSCO Shipping Lines Co Ltd and seven new container vessels for Orient Overseas Container Line. This is the Chinese maritime sector's largest order to date for methanol-fueled vessels.

Meanwhile, Chinese companies have been making investments in solar energy technologies. Cooperation between the Chinese and Finnish counterparts will help to promote the world's green transition, said Hietanen.

Wang Haijun, chairman of Tsingshan Industry, said the company will look for cooperation opportunities in the new battery project of Finnish Minerals Group.

Zhang Chuanwei, chairman of Mingyang Smart Energy Group, lauded the innovation capabilities of Finnish companies. Chinese companies have formed long-term cooperative partnerships with Finnish companies in computer numerical control equipment.