The canary that fell silent. finland's gestalt shift on chinese investments

Abstract

For a mixture of historical, economic and security policy reasons Finland can be regarded as a least likely case with regard to apprehensiveness over Chinese investments. Within the EU, Finland has had the highest relative trade dependence on China. Since 2016, Finland is also one of the EU member states that have attracted the most Chinese investment in absolute terms. Finland, which is not a NATO member, has unproblematic relations with China and an open economy that up until a few years ago welcomed Chinese investments. The country also has an unusually long unbroken tradition of domestic legislation regarding foreign investments, which since 1992 can be characterised as liberal. However, during the last two years, there has been a drastic change in views on Chinese investments, both among the policy elite and in the public debate. This change can be regarded as a veritable gestalt shift. As a corollary, a need for a better overview of Chinese investments has been identified. Information exchange and coordination between various governmental departments has been improved in several ways. Simultaneously, cooperation and information exchange between relevant Nordic authorities regarding relevant legislation and praxis has also deepened. Although the 2009 Stoltenberg recommendations did not encompass cooperation on foreign investments, this can be seen as a natural leg in intensified Nordic security cooperation.