Geopolitical Shocks Impact Nordic Supply Chains: Finland's Dependence on China Ranks Highest Among Five Nations
According to the latest study by the Research Institute of the Finnish Economy (ETLA), among the five Nordic countries, Finland has the highest dependence on imports from China, facing geopolitical risks especially in its lithium-ion battery supply chain. The study points out that excessive reliance on specific countries exacerbates risks amidst an unstable global environment.
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- 📰 Published: April 29, 2026 at 17:32
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Central News Agency
(Central News Agency reporter Wu Chi-lin, Helsinki 29th special report) The latest study by the Research Institute of the Finnish Economy (ETLA) indicates that while the five Nordic countries are all small, open economies highly dependent on external trade, their hedging capabilities against geopolitical shocks vary. Finland's reliance on imports from China is the highest among the Nordic countries, with the supply gap risk for lithium-ion batteries being the highest.
This study, jointly completed by ETLA, Statistics Denmark, and other Nordic statistical agencies, was funded by the Nordic Council of Ministers. Its purpose was to assess the five countries' ability to respond to disruptions in critical import materials and to track the extent of each country's supply chain risk exposure.
The study shows that Denmark and Sweden are most concerned about risks from import disruptions from the United States, while Finland and Iceland's exposure pressure is concentrated in China. Norway's import gaps are more dispersed, with no single concentrated trend. In terms of resilience, Sweden and Iceland performed the strongest, Norway and Denmark were the most vulnerable, and Finland was in the middle.
Among the goods Finland imports from abroad, 57% are intermediate goods. These are not finished products sold directly to consumers but rather inputs or components used by factories to process and assemble final products, such as steel, semiconductors, or electronic components. This proportion is the highest among the five Nordic countries.
Among these, lithium-ion batteries and their components represent Finland's most concentrated risk. In 2024, nearly 38% of Finland's high-risk imports in this category came from China, far exceeding Sweden's 17% and Denmark's 11%.
ETLA Research Director Jyrki Ali-Yrkkö pointed out that if a situation arises in a specific region or supplier, it would be extremely difficult for Finland to find alternative sources in a short period. He said that over-reliance on a single supplier country is inherently a risk, and with the unstable global situation, it is even more necessary for countries to continuously monitor supply chain dynamics.
Ali-Yrkkö directly stated to the Finnish News Agency (STT) that trade is no longer just business; geopolitical struggles permeate every supply chain. He believes that the view commonly held a few years ago that "economic and trade exchanges can maintain world peace" now seems untenable. Former US President Trump's tariff offensive and China's export controls on rare earths are typical examples of countries treating trade as a bargaining chip.
Ali-Yrkkö also highlighted the untapped complementary potential among Nordic countries, noting that currently, the five countries on average only purchase about 21% of their intermediate products from Nordic partners. He believes that the possibility of expanding intra-regional procurement should be explored in depth. However, he admitted that not all gaps can be complemented; "For example, for lithium batteries, there is currently no stable source of supply in the Nordic region at all."
Globalization was once seen as an irreversible wave, but now it shows signs of receding. Ali-Yrkkö described geoeconomics as being on the rise but does not believe the situation is at an impasse, saying, "This game of chess is not endless; it will eventually be corrected and de-escalated over time." (Editor: Chang Chih-hsuan) 1150429
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(Central News Agency reporter Wu Chi-lin, Helsinki 29th special report) The latest study by the Research Institute of the Finnish Economy (ETLA) indicates that while the five Nordic countries are all small, open economies highly dependent on external trade, their hedging capabilities against geopolitical shocks vary. Finland's reliance on imports from China is the highest among the Nordic countries, with the supply gap risk for lithium-ion batteries being the highest.
This study, jointly completed by ETLA, Statistics Denmark, and other Nordic statistical agencies, was funded by the Nordic Council of Ministers. Its purpose was to assess the five countries' ability to respond to disruptions in critical import materials and to track the extent of each country's supply chain risk exposure.
The study shows that Denmark and Sweden are most concerned about risks from import disruptions from the United States, while Finland and Iceland's exposure pressure is concentrated in China. Norway's import gaps are more dispersed, with no single concentrated trend. In terms of resilience, Sweden and Iceland performed the strongest, Norway and Denmark were the most vulnerable, and Finland was in the middle.
Among the goods Finland imports from abroad, 57% are intermediate goods. These are not finished products sold directly to consumers but rather inputs or components used by factories to process and assemble final products, such as steel, semiconductors, or electronic components. This proportion is the highest among the five Nordic countries.
Among these, lithium-ion batteries and their components represent Finland's most concentrated risk. In 2024, nearly 38% of Finland's high-risk imports in this category came from China, far exceeding Sweden's 17% and Denmark's 11%.
ETLA Research Director Jyrki Ali-Yrkkö pointed out that if a situation arises in a specific region or supplier, it would be extremely difficult for Finland to find alternative sources in a short period. He said that over-reliance on a single supplier country is inherently a risk, and with the unstable global situation, it is even more necessary for countries to continuously monitor supply chain dynamics.
Ali-Yrkkö directly stated to the Finnish News Agency (STT) that trade is no longer just business; geopolitical struggles permeate every supply chain. He believes that the view commonly held a few years ago that "economic and trade exchanges can maintain world peace" now seems untenable. Former US President Trump's tariff offensive and China's export controls on rare earths are typical examples of countries treating trade as a bargaining chip.
Ali-Yrkkö also highlighted the untapped complementary potential among Nordic countries, noting that currently, the five countries on average only purchase about 21% of their intermediate products from Nordic partners. He believes that the possibility of expanding intra-regional procurement should be explored in depth. However, he admitted that not all gaps can be complemented; "For example, for lithium batteries, there is currently no stable source of supply in the Nordic region at all."
Globalization was once seen as an irreversible wave, but now it shows signs of receding. Ali-Yrkkö described geoeconomics as being on the rise but does not believe the situation is at an impasse, saying, "This game of chess is not endless; it will eventually be corrected and de-escalated over time." (Editor: Chang Chih-hsuan) 1150429
Choose to stand with facts; your every sponsorship is a force for protecting press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted or used without authorization.