Relations with China toasted at Finlandia Hall
The deepening of economic relations between Finland and China and the 60 years of diplomatic relations between Finland and China were celebrated on 26 March at a banquet hosted by Minister for Foreign Trade and Development Väyrynen. A business delegation representing more than 150 Chinese companies raised their glasses to the toast. Chinese Vice President Xi Jinping hopes that cooperation will take tiger leaps forward this year.
In less than 30 years, China’s opening up and economic growth at world-record pace have already prompted the establishment of 260 Finnish companies in China. The value of investments totals 7 to 8 billion euros. The enormous World Expo 2010 that will open in Shanghai in May is expecting 70 million visitors. For Finland, participation in the Shanghai World Expo with its pavilion called ‘Kirnu’ (Giant’s Kettle) is the country’s largest single export promotion investment.
Seen against this background, it is not surprising that the great importance of trade relations figured prominently at the banquet hosted by Minister for Foreign Trade and Development Paavo Väyrynen on Friday, 26 March. At Finlandia Hall, toasts were made in honour of the 60 years of diplomatic relations between the two countries. The guest of honour was Vice President Xi Jinping, whose large business delegation of over 150 people showed that Finland attracts interest in China in the economic sense, too.
The dinner speeches underscored friendship and cooperation, and highlighted personal memories. Minister Väyrynen remembered that he had met Vice President Xi in 1979, when Xi had visited Finland as part of the delegation accompanying Geng Biao, then Vice Premier of the State Council. That visit by Vice Premier Geng Biao was the first time a representative of the Government of China ever visited Finland. Much has taken place since then, but much remains to be done. Minister Väyrynen pointed out that despite their long experience, both he and Vice President Xi are still young men.
On the first visit of a Finnish Foreign Minister to China, Väyrynen was accompanied by a delegation of five Finnish companies. The year then was 1984. In 2008 he visited the country again, this time as Minister for Foreign Trade and Development, and was accompanied by about 50 companies.
It is important to bring companies together, but states, too, have a role to play, Väyrynen stated. They must improve the investment environment and must otherwise create good preconditions for trade. An investment protection agreement already exists, and work on an agreement preventing double taxation is nearing completion. Väyrynen also praised his ongoing dialogue with the Chinese Minister of Commerce.
Though small in population, Finland has something to offer China.
“To our minds, we are a major power in high technology and education,” Väyrynen said.
“Forward with the courage of a tiger”
Vice President Xi also emphasized friendship and cooperation. Finland has been among the landmarks in the development of China’s foreign relations. In 1950, it was one of the first Western countries to enter into diplomatic relations with China. The foundation for the economic opening up following the Cultural Revolution was laid by the visits abroad made by Vice Premier Geng Biao in 1979. One of those visits was made to Finland. Despite the distance, cooperation has progressed and “strengthened over thousands of mountains and rivers,” as Vice President Xi put it. Meeting Minister Väyrynen again, 31 years later, was a pleasant surprise for him.
The exchange of visits between the two countries is brisk. Vice President Xi came to Finland at the invitation of President Tarja Halonen. Economic relations, too, are flourishing. According to Vice President Xi’s information, Finnish companies have 373 investment projects underway in China.
Vice President Xi hoped that the ongoing Year of the Tiger in the Chinese horoscope would spur relations forward “with a tiger’s might and courage.” The tiger symbolizes courage and forging ahead.
China needs the world and the world needs China. The rise of China is not a threat, it’s an opportunity, Xi stressed. Calculated by the gross national product per capita, China is still a developing country, ranking 104th in the World Bank comparison. Modernization still has a long road to travel, the Vice President continued.
In this Finland, too, has a role. Xi politely stated that China and Finland complement each other. China is particularly interested in Finnish expertise in the information and communications sector and in Finnish forestry, machinery and environmental know-how. The results Finns have achieved through their enterprising spirit and creativity are admired, and there is the wish to learn from them in the future as well.
Alongside friendship and cooperation, indirect reference was also made to assistance. Xi emphasized that during the economic distress following the financial crisis, last year China sent a trade and investment delegation to more than ten countries, which in his opinion showed that China acknowledges the country’s responsibility for the world’s economic development. Finland was one of these destinations.