Dear Members and Friends

The term vaccine is one of the most cited words these days and weeks. In Switzerland, supplies seem to arrive at the vaccination centers; in other countries there are discussions about which vaccines are safe, how many doses can be exported (if any at all), how many people can – and more importantly – how many want to be vaccinated. In China, the elderly generation is now in the focus of the Chinese government’s vaccine campaign. A more international use of the vaccines developed by Chinese manufacturers is so far hampered by the lack of clinical trial data. Overall, a concerted and global effort to approach and fight the global pandemic cannot be observed. Political considerations and national interests dominate, interest-driven country groups emerge in all parts of the globe. This will prolong the pandemic and further increase human and economic costs.

Turning to the economy more specifically, there will still be hurdles business travelers will have to face when global business travel is expected to take off in the third quarter of the year. There is already a maze of regulations – and changes will be announced on short notice only. SCCC suggests to closely monitor the situation and regularly check the relevant official websites for travel rule changes. For regulations regarding travel activity to China, this is especially relevant.

We are aware that in the past few weeks more foreigners have been allowed to enter mainland China than during the past 14 months. However, we have also noted that other important regulatory changes are pending: for instance, substantial tax exemptions for foreigners will disappear by the end of 2021. This will significantly increase costs for companies and affect the willingness of foreigners to be stationed in China. Companies need to re-assess for how long and how many foreigners should be based in China. There are some geographical exemptions, mainly in the Greater Bay area, but this does not provide relief to companies that have non-moveable assets in other parts of China.

How can the localization of the workforce and the management work when control frameworks are hampered? When the access of internal audit teams is difficult or restricted, or when remote analytics of data is limited due to the Chinese Cyber Security Law, just to name two examples? These are significant challenges not only for SMEs but also for MNCs with several hundred or thousands of employees in China. Respective concerns are not only raised by our members, but also by organizations such as the European Chamber of Commerce and AmCham China.

In that regard, SCCC has issued a statement addressing the China strategy of the Swiss government, emphasizing the importance of trade – as trade creates communication channels that build trust. Trust is an asset hard to create and maintain, while it is quickly lost. A look at the media articles and comments from readers in both nations shows that we have to take great care of this asset. SCCC has consequently offered its support in implementing the strategy; the statement is posted on the SCCC website under Press Release.

As vaccination efforts in Switzerland make progress, we decided to host the postponed 40-year anniversary in combination with the 2021 AGM on June 25, 2021, at the Swiss Re Centre for Global Dialogue in Rüschlikon.

I wish you a beautiful spring season and warm weather, that makes it easier for all to respect social distancing.

With best regards,

Felix Sutter

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Bīngdòng sān chǐ, fēi yīrì zhī hán.

It takes more than one cold day for a river to freeze a meter deep. – Rome was not built in a day.