Dear Members and Friends
The topics highlighted in the early
November letter remain largely the same during the last month. Some of the
announced measures have been received with a muted response, mainly financial
markets. What got a bit lost in those comments is the fact that the announced
measures are more targeting mid- to long-term impact rather than a short term
immediate effect. Which in turn highlights the goal to go for sustainable
changes rather than short cut measures.
In this month’s letter and also in
light of the COP26 conference, the topic of
green energy and innovation is the focal topic. In general, China is by now a very strong
supplier of green energy to the rest of the world as it is also one of the
largest markets for green energy worldwide.
China has been making significant
strides in green energy development as part of its commitment to combatting
climate change and achieving sustainability.
It has set ambitious targets to peak carbon
emissions by 2030 and achieve carbon neutrality by 2060 and the government has
incorporated green energy development into its Five-Year Plans.
China is the world's largest
investor in renewable energy, funnelling billions into the development of
solar, wind, hydro, and other renewable energy technologies and it is the
largest producer of solar panels and has the highest installed capacity of
solar photovoltaics (PV) in the world. The development of wind technology and
an increase in manufacturing capabilities have made China a global leader in
wind turbine production.
Well known is by now the progress
made in the electrical vehicle (EV) space and the fact that it is the largest
producer of EV.
By focusing on these various facets
of green energy development, China is positioning itself as a global leader in
the transition to a more sustainable and environmentally friendly energy
future. However, challenges remain, including balancing economic growth with
environmental sustainability and managing the social implications of
transitions from traditional industries.
This is clearly a positive
development, given that China remains one of the world's largest producers of
CO2. But it also brings challenges. There is the internal challenge of
balancing economic growth with environmental sustainability and managing the
social impact of the transition from traditional industries, as we face in
every country. Then there is the external challenge of overcapacity and how to deal with
it, including how to
approach other markets.
All in all, this is again a
situation in which Swiss companies, with their innovative strength and
creativity, can find interesting opportunities to further expand their market
share. At the same time, it is becoming more difficult to defend an existing
market position as competition in established markets increases. Further
innovation, for which Swiss companies are well known, will be the way forward.
Our traditional Christmas Apero will be held at SOHO on the 18th of December. Reserve your place today and join us for a toast to the end of the year and the New Year!
The next newsletter will be out in early January 2025.
Kind regards
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