Just a few years ago, Finland enjoyed a unique and enviable link with China in terms of tourism and, most crucially, trade.
The European geopolitical upheaval of the last few years brought about by the conflict between Russia and Ukraine has significantly impacted this once-growing trade relationship between China and Finland.
Finland Affected By Russian Sanctions
There was a time when Finland enjoyed a thriving trade route with China, thanks in part to its physical proximity to Russia.
All this changed in the aftermath of the Ukraine war starting. Trade and travel links between Russia and Finland have shifted significantly as Finland has aligned with European sanctions against Russia.
An Aeronautical Advantage
A key part of this strong relationship between Finland and China had to do with flight paths between the two nations.
Finland enjoyed a unique advantage compared to other European nations as flights out of the country could traverse Russian airspace, allowing for significantly shorter and more convenient flights to China.
Finland Was a Hub
These beneficial flight routes afforded by its geography made Finland a hub for business and tourism.
Direct, rapid routes were available from Helsinki to a number of Chinese cities. However, the commencement of the Russia-Ukraine conflict in 2022 quickly changed all that as flight paths out of the country had to be altered.
Lost Access to Russian Airspace
Finland fell in line with other European nations in imposing sanctions against Russia in the aftermath of the conflict with Ukraine.
Finland’s participation in these European sanctions against Russia led to them losing access to Russian airspace and no longer being able to offer these popular, rapid flight routes to China.
Redirected Flight Routes
Instead, flight paths from Finland to China have been redirected over Turkey. This has significantly increased travel times.
Flight times have increased by approximately three hours following this necessary redirecting of flights out of Finland. This has had a huge impact on Finnair, which has reduced the number of direct flights to China.
A Massive Reduction in Air Traffic
Finnair’s Helsinki to Zhengzhou routes, which were only established in 2020, have seen significant cuts, as have more established routes. The Helsinki to Shanghai route has experienced a 9% reduction in scheduled flights since 2019.
Six other direct routes from Helsinki to China have been halted entirely amidst a huge decline in demand.
A Lost Geographical Advantage
The geographical advantage once enjoyed by Finland, enabling them to offer rapid direct flights to China, has been completely negated by the lost access to Russian airspace.
Finland is also at the disadvantage of being excluded from a list of countries whose nationals can enjoy 15-day stays in China without the need for a visa.
Lost Railway Connectivity
Prior to the Russia-Ukraine conflict, Finland also had trains crossing the 1,340 km Finland-Russia border, providing a super efficient way to transport cargo from China to Finland.
However, following the conflict, Finland ceased train services to and from Russia. This has effectively cut off this hugely valuable trade route with China.
Massive Impact on Finland’s Trade
Railway cargo transport had been enjoying rapid growth prior to the Ukraine conflict. This growth has now been effectively cut. Indeed, overall trade between Finland and China has taken a massive hit.
Chinese customs data reveals a drop from $3.3 billion in trade during the first five months of 2023 to just $2.6 billion for the same period in 2024.
Future Prospects
The lost connectivity and new logistical challenges are part of the reasons for this downturn in trade between Finland and China, the country’s fifth-largest export market.
But Finland is still profiting from Chinese engagement where it can. The sale of Chinese-made electric vehicles has gained traction, and Chinese firms have shown interest in investing in Finland-based EV lithium battery production plants.
A Conflict With Wide-Reaching Consequences
The conflict between Russia and Ukraine is a geopolitical quagmire with far-reaching consequences across Europe that many may not realize.
European sanctions against Russia are wholly warranted, but many nations are feeling the consequences. This massive impact on Finland’s trade economy shows just how significant a player Russia is in the global marketplace, even indirectly.
