TECHNOLOGY PROWESS: Finnish construction material suppliers showcase energy-efficient building technology at an international exhibition in Beijing (CFP)

Mauri Pekkarinen (CHEN RAN)

More than six decades after the establishment of diplomatic relations, China and Finland are finding new opportunities in the environmental business. Finland's cutting-edge energy efficiency and renewable energy technologies could help China achieve its environmental protection goals, said Mauri Pekkarinen, Finland's Minister of Economic Affairs in a recent interview with Beijing Review reporter Chen Ran in Helsinki. Edited excerpts follow:

Beijing Review: What is your overall opinion on the economic ties between China and Finland over the past six decades?

Mauri Pekkarinen: Finland was among the first Western countries to recognize the People's Republic of China on January 13, 1950, and the two countries established diplomatic relations on October 28 of the same year. Since the beginning of the relationship, our economic ties have been excellent. The fact that Finland was the first capitalistic country in the world to sign a bilateral trade agreement with China, in 1953, serves as testimony to this. Due to this history, we have a strong base for bilateral trade and cooperation in general.

Since the 1950s, we have signed many cooperation agreements. In the energy and environmental fields, my ministry has signed two significant memorandums of understanding (MOUs) with Chinese ministries in recent years: an MOU on environmental cooperation with the Chinese National Development and Reform Commission (NDRC) in 2007 and an MOU for cooperation on ecological zones with the Chinese Ministry of Commerce (MOFCOM) in 2009.

In 2010, we held the first eco-working group meetings with both of these ministries. I am very pleased to note that the cooperation is reaching a very concrete level. Both working groups are also open for company representatives.

There was a serious drop in the Sino-Finnish trade volume in 2009 under the impact of the world financial crisis. What role does Sino-Finnish trade play in the Finnish economy? What measures will Finland take to help get it back on track?

China is our biggest trade partner in Asia. After 2009's hiccup in trade, I am happy to see that our exports to China clearly increased in 2010. Our exports to China have increased in all important merchandise groups, except phone appliances. The paper machine industry especially boosted our exports to China. The total export value in the first half of 2010 was 1.4 billion euros ($1.8 billion) while the import value was 1.9 billion euros ($2.5 billion). Our main import products from China are different kinds of machines and devices. One growing business cooperation field where I see great potential for win-win results is the environmental business. As I mentioned earlier, my ministry has environmental cooperation with two Chinese ministries and the working groups form a platform for concrete business cooperation.

I believe strongly in the opportunities in the environmental and clean technology sectors. I would be disappointed if the value of exports to China does not increase by 20 percent annually during the next 10 years.