Dear Members and Friends
The first steps taken towards a more normal situation have been encouraging; the number of new Covid-19-cases remains low and tracing is possible again. Health concerns seem to be reduced, as long as the countermeasures stay in place and are being followed by the public.
One big challenge now is the health of the economy. The pandemic’s consequences for the global economy are severe and they affect all global markets. We will feel the effects for months and years to come, and the Swiss economy is especially exposed due to its heavy reliance on exports.
Therefore, it is encouraging to hear that domestic consumption in China has picked up. Recent statements by Chinese President Xi Jinping during the «Two Sessions» put the emphasis on an economy driven more and more by Chinese domestic consumption and less by exports.
Signals picked up from the «Two Sessions», concluded on May 28, put the Swiss economy in a favorable position. China’s focus on domestic consumption and addressing inefficiencies in manufacturing and the energy sector provides opportunities for Swiss companies. The same is true for the country’s need to tackle gaps in life science and health care. Adding the neutrality of Switzerland to this mix leads to the conclusion that the Swiss economy may provide a substantial part of the foreign-supplied expertise and equipment required by mainland China. For companies which plan investments in China, now might be a good time to negotiate the terms.
Some normalization can also be expected with regard to traveling to China. Switzerland is among one of the first countries scheduled to resume direct flights to China. The exact dates will be published
on the SCCC website as soon as they are officially confirmed.
With China being further along the way in restarting the economy we continue to look for lessons to be learned. Webinars on that topic that have taken place recently and will be held in the coming weeks. Please check the SCCC website regularly.
On an SCCC internal matter, the lockdown calendar for Switzerland made it impossible to hold our AGM as scheduled on May 14, 2020. Therefore, we moved the AGM to Thursday, October 29, 2020. The Swiss China Summit, which we had to postpone for the same reason, will take place on the same day. More details will follow very soon.
Last, but not least, the recent developments pertaining to Hongkong are accompanied by a high degree of uncertainty. It is too early to draw conclusions regarding the economic impact of Beijing’s decision on Hongkong, and of the reactions by the Trump administration to Beijing's moves. We are assessing the situation carefully and will provide insights at the first possible opportunity.
Do not hesitate to contact us via email with questions. The chamber continues to be your partner in these trying times.
Best regards and stay healthy!
Best regards and stay healthy,
Felix Sutter
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