There are three superpowers in the global economy: China, the European Union, and the United States. Measured by purchasing power parity, these three together account for half of the world economy. Particularly noteworthy is China’s rapid rise as an economic superpower during this century. Two decades ago, China represented nine percent of the world economy. Last year, its share had already risen to 20 percent. When adjusted for purchasing power, China became the world’s largest economy already ten years ago.
China’s rapid economic growth is also reflected in Finland’s foreign trade. In 2005, the value of trade between our two countries amounted to €4.4 billion. Last year, it had already increased to €10.5 billion. It should, however, be noted that Finland’s trade with the United States has grown at almost the same pace.
The most striking difference is that, among countries outside Europe, China is Finland’s most important source of imports, whereas the United States is our most important export market. Overall, in 2025 the United States was still a larger trading partner for Finland than China, but the ranking between the two countries may change during this decade following the tariffs imposed by the United States on the EU. Nevertheless, Finnish customs statistics for January–February of this year do not yet indicate any decline in our trade with the United States — quite the contrary — our trade with the United States continues to grow.
However, when examining Finland’s foreign trade with the superpowers, the European Union should not be overlooked. In 2025, nearly 60 percent of Finland’s foreign trade took place with another EU member state. In other words, the European Union is by far a larger trading partner for Finland than China and the United States combined. This fact is often forgotten both by our political decision-makers and by the citizens who elect them.
Finland’s Foreign Trade with China and the United States
Source: Finnish Customs.
The structure of Finland’s foreign trade with China and the United States may come as a surprise. Many still think that Finland imports raw materials from China and exports products with a higher degree of processing. In reality, the situation is exactly the opposite. Machinery and equipment account for more than half of Finland’s imports from China. Correspondingly, pulp is Finland’s most significant export product to China, accounting for one-third of exports.
Many may also be surprised that Finland’s second most important import product from the United States is energy, which can be classified as a raw material. In 2025, energy accounted for one-quarter of Finland’s total imports from the United States. American oil covered nearly 10 percent of Finland’s total oil imports last year. The corresponding shares for coal and gases were nearly 30 percent and more than 40 percent, respectively. In turn, the export of cruise ships to the United States is extremely important for Finland. Without cruise ship exports, Finland’s exports to the United States would have declined by approximately 15 percent in 2025.
In terms of corporate investment, the United States is many times more important to Finland than China, both as a source and as a destination of investment. Nor do I believe this situation is likely to change in the foreseeable future. Even here, however, it should not be forgotten that the majority (60–70 percent) of Finnish corporate investments are either directed to or originate from the European Union.
The situation regarding foreign tourism to Finland is almost identical. Last year, Americans recorded nearly one million overnight stays in Finland, which is double the number recorded by Chinese visitors. On the other hand, it should not be forgotten that EU citizens accounted for well over half of all foreign overnight stays in Finland.
The European Union forms the foundation of Finland’s external economic relations, which is why the future of the European Union is the cornerstone of our prosperity. At the same time, among countries outside Europe, China is Finland’s most important supplier and the United States our most important export market. However, the escalation of the trade war between the superpowers may directly and indirectly erode the foundations of Finland’s foreign trade and, consequently, our prosperity. Since Finland cannot influence the decisions made by the leadership of China and the United States, our focus should remain on the overall development of the European Union and on the Union’s new trade agreements.
The central message of this text is the following: Despite the immense economic power wielded by China and the United States on the global stage, for us Europeans the success of the European Union is nothing less than a vital necessity. China and the United States may represent vast economic opportunities, yet for Europeans a strong, prosperous, and well-functioning European Union is indispensable to our future. For this very reason, every European must be prepared to “do their part” to ensure that the European Union continues to stand as a guarantor of prosperity, stability, and democratic values for all who cherish freedom, openness, and the rule of law.
Kari Liuhto
Professor, Director
Centrum Balticum Foundation
Finland
