Dear Members and Friends

In the last 12 months, terms such as Coronavirus, Covid-19 and pandemic have been used daily. They define how we look at the world today, at individual nations, and at the local and global economy. While the vaccinations have now started in Switzerland as well as globally, it is not clear how and when sanctions will be lifted. Discussions about the issuance of digital vaccine certificates have started; however, it will take some time to reach a global agreement regarding mutual recognition or verification. This might especially be the case for China-related travel.

It becomes increasingly clear that many of the pandemic sanctions in Europe and Asia will only be lifted in the third or fourth quarter of 2021. Australia, for example, announced that it will fully open its borders not before 2022. Other countries may follow with similar announcements. As we learned in the past few days, in the near future, we may face tighter measures to contain the virus for the remaining wintertime.

Business travels will remain a challenge for the next 12 months at least, including multiple tests and quarantine rules. As a result, travels need to be carefully planned and executed – and they may require longer periods of absence from the home base. This, in return, requires a more robust digitalization of the workplace and its tools. It also requires more efforts in obtaining information about the developing legal and compliance framework in China (see below).

It also becomes clear that ‘normal’ business relations with China will not return as quickly as expected and will remain difficult for the rest of this year. So-called ‘hybrid’ models will remain much longer in need and in use. This will require thorough reviews of existing business models in regard to future viability. At the same time, new business models become possible due to the wider use and acceptance of digital technologies.

At the chamber office as well as at board meetings we observe and discuss these challenges, and we seek solutions that will help you, our members, in this difficult situation. These discussions include the exchange with other chambers and industry associations to share experiences and possible solutions.

As a result of observing the situation in China, we would like to recommend to you the webinar of a member company about the newly published and already enacted Foreign Investment Security Review Measures (Decree No. 37, “SRM”). The National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”) jointly released the SRM on December 19, 2020, with the aim to effectively prevent and defuse national security risks while actively promoting foreign investment. The SRM came into force on January 18, 2021, and will have major and substantial impacts on foreign investment projects in certain areas of investment. (https://www.pwccn.com/en/events/webinar-china-foreign-investments-security-review-measures-jan2021-form.html)

I wish you all a healthy and prosperous February, which includes the Chinese New Year (CNY) festivities. In 2021, we will celebrate the CNY differently – no CNY concerts, and many will be away from family and friends. Let us use the digital tools at hand to stay connected and postpone the physical meetings for the time after the pandemic.

May you all have a good start into the year of the Golden Ox!

With best regards,

Felix Sutter

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Chī dé kǔzhōngkǔ, fāng wéi rénshàngrén.

Enduring deepening pain is how man ascends. – No pain, no gain.