Labour market leaders say China syndrome has been misunderstood
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A group of Finnish labour market leaders have said that the so-called China syndrome is largely misunderstood in Finland.
"China is examined excessively in terms of threats. From Finland’s point of view it also offers many opportunities", said one of the members of the group, Lauri Ihalainen, chairman of the Central Organisation of Finnish Trade Unions (SAK) in Beijing on Tuesday.
The labour market leaders are in China on a one-week visit led by Esko Aho, President of the Finnish National Fund for Research and Development (SITRA).
Another Finnish delegation, involved in drafting a report on Finland in the world economy, is also in China. The group was formed at the initiative of Prime Minister Matti Vanhanen.
Both delegations, comprising a total of 25 people, are examining how Finland can prevail in the upheavals of the world economy.
During their trip the groups will visit companies and meet with Chinese officials in the capital Beijing and the commercial centre Shanghai.
The concept of the China syndrome in Finnish public debate generally refers to the transfer of production to China, to take advantage of low labour costs in the country.
On Tuesday the delegations met with representatives of Finnish companies operating in China and learned that cheap labour is often not the primary reason for a company to set up shop in China.
Many companies establish operations in China hoping to find customers for their products.
"China is a growing market area. If internationally competitive companies are to stay on top, they must come to China", said Anne Brunila, director-general of the Ministry of Finance, the head of the Prime Minister’s fact-finding group.
Members of the delegations also largely agreed that Finnish investments in China do not directly lead to job losses in Finland, and that success in China can actually increase jobs at home.
The SAK’s Lauri Ihalainen noted that foreign companies in China benefit from the trampling of workers’ rights in China. However, he added that to his knowledge, Finnish companies have dealt with their Chinese workers better than many others have.
Finland cannot compete with Chinese wages, where factory workers can be hired for EUR 50 a month.
"Finland will prevail if it invests in education, research, product development, and in marketing and productisation", said Risto Piekka, chairman of the Confederation of Unions for Academic Professionals (AKAVA).
Members of the two delegations point out that challenges faced by Finland in economic globalisation do not come from China alone. Other areas include India, Russia, and the new members of the European Union.
Helsingin Sanomat
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| 8.9.2004 - TODAY |
 Labour market leaders say China syndrome has been misunderstood |
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