Finland wary of China’s closer ties with Russia
Finland respects China’s choice to further engage with Russia, but the close business ties between the two countries are not regarded as a “positive thing”, a Finnish minister has told the Post.
In an exclusive interview in Doha, Development Cooperation and Foreign Trade Minister Ville Tavio said relations between the European Union and China “will get only better” despite Brussels’ move to de-risk from Beijing, but China’s leaders needed to build trust with EU business entities.
“We wish China to use its influence to Russia, to [ask] Russia to stop their aggression. So naturally, I would like to see China having a constructive dialogue with Russia about this illegal war,” Tavio said. “I have no objection if China can play the mediator role, but of course, negotiations are difficult … and the negotiations would be conducted between two parties anyhow, Russia and Ukraine.”
The interview came as President Xi Jinping welcomed Vladimir Putin to Beijing. Xi reaffirmed Beijing’s willingness to “play a constructive role” for peace, adding both Beijing and Moscow agreed that “a political settlement of the Ukraine crisis is the correct direction”.
China’s trade with Russia since the invasion has come under scrutiny, with Western leaders questioning Beijing’s proclaimed neutrality. China-Russia trade hit a record US$240 billion in 2023, more than double the US$108 billion of 2020, largely driven by Chinese imports of Russian oil and exports of cars, electronics and industrial equipment.
“We have sanctioned Russia, because of their breach of international law and the UN Charter. Of course, it would be the legally and morally right thing [for China] to do the same,” Tavio said.
“So I’m not naturally happy that China has continued to do business with Russia … from our perspective, that is not a positive thing.”
China is also facing pressure over accusations from the United States and the EU that it is flooding their markets with “overcapacity” in the new energy sector, especially with electric vehicles.
Tavio said he would not regard overcapacity as a “negative meaning for China”, but rather see it as “a natural flow of trade”.
While he expected China-EU trade relations to improve, he said both sides had demanded “equality” in trade talks.
The EU has had a trade deficit with China for at least a decade – its highest level was ¤397 billion (HK$3.3 trillion) in 2022. The deficit declined to ¤291 billion in 2023. Finland’s trade deficit with China last year was ¤3.4 billion.
As Brussels moves ahead with calls to reduce dependence on Chinese supply chains, Tavio said Finland would follow the EU’s common trade policy “with no doubt” as investors worried about China’s future after encountering Russia’s geopolitical shift.
“My message to the Chinese would be that when Finland has invested in Russia, and we have lost those investments, because of Russia’s behaviour, I think it is natural that China would only gain to keep on building the trust.”
As a key player in Arctic scientific exploration, Tavio said Finland would like to maintain cooperation with China under the Arctic Council framework, but China’s close relations with Russia would be an obstacle in the future.
“If China would decide to basically go hand in hand with Russia, it would probably make it difficult for [China] to cooperate,” he said.