Dear members and friends of SCCC

Recent news from across the big pond and the channel are soothing but not yet comforting for Chinese companies.

In the UK the Brexit can was kicked down the road for another 3 months. In addition, they will conduct an unpredictable election scheduled for December which may or may not break the Brexit impasse. Both developments maintain the level of uncertainty high and lead to more «wait and see».

As for US and China trade war, it seems that some restrictions for the Chinese would be eased, however, it is unclear when and by how much. Will the transfer restrictions on R&D from the US to China be lifted as well? Details will emerge after November 15 only. The current situation certainly makes it difficult for Chinese entrepreneurs to create a realistic budget for 2020 and beyond.

Why is this relevant for Switzerland?

It emphasizes the role that Switzerland can play for Chinese companies. Switzerland is one of the most innovative countries of the world.  Bringing R&D facilities to Switzerland will not only benefit from intellectual talents but also untangle from the technology transfer restrictions under US-China cross hairs.  In addition, Switzerland can offer Chinese companies OECD-compliant tax regulations for their international business activities. The Swiss Stock Exchange has signed the cross-listing agreement with the Shenzhen Stock Exchange in October. With the Shanghai Stock Exchange a similar agreement was signed in April. These agreements allow Chinese entrepreneurs to raise capital in Switzerland and to finance international operations without a capital transfer from China.

To sum it up, Switzerland is a base that provides the stability and investment security Chinese companies are looking for in these turbulent times.

Clearly this will further strengthen the economic ties between China and Switzerland. That is why SCCC is conducting a roadshow to Shanghai, Beijing and Shenzhen from November 14-20 in order to explain the role of Switzerland to leaders of Chinese companies.

November has arrived – a busy month before the year-end activities. We have organized highly interesting events for you. Make sure to register for the ones that are of most interest to you. I look especially forward to the Innovation Event at Bühler Group on November 5 as well as to the speech of Professor Yuan Ding, CEIBS Dean and Vice President, on November 29, 2019.

With best regards,

Felix Sutter

Shòu rén yǐ yú bùrú shòu rén yǐ yú

Give a man a fish and you feed him for one day. Teach a man to fish and you feed him for a lifetime.