Dear Members and Friends
Last week, on Wednesday 1st March, the
meteorological spring began and with it we all expect the temperatures to rise
in Switzerland. Not that we have had a hard winter so far, but the rise in
energy prices has put a strain on the budgets of many, both consumers and
producers.
On the geopolitical front, the winter
continues and efforts to thaw relations were dealt a blow in February. For
2023, the Chinese proverb "life is a struggle" seems to ring true
once again.
How do we deal with a situation where we
want spring and a lighter load on our minds, but the reality is bleak? We
believe that a Swiss proverb provides a guide to the solution: "Every
mountain is and can be climbed in small steps". A steady pace and focus on
the goal will allow us to ease the situation, but it will require sweat,
compromise and effort from all stakeholders. Two situations come to mind:
We have now passed the peak of the pandemic
in China. What is still lacking is access to easy travel options from
Switzerland to China. Having received numerous Chinese delegations since the
CNY, using a back to normal fully operational visa section at the Swiss Embassy
in Beijing with no testing requirements, we are still waiting for the Chinese
government to lift the PCR testing requirements (negative PCR or antigen test
48h before departure) and the return of tourist visa. The existing visa
categories for China all require a letter of invitation and detailed
information, causing applicants to search for previous visas in now outdated
passports, etc. It is therefore not surprising that international flights to
and from China are still at 10 percent of pre-pandemic levels.
For many goods, China is the only sourcing
option and will remain so for some time. This is in spite of the supply chain
diversification that has been set in motion since 2020. Some stakeholders in
the Swiss ecosystem are unaware of these facts when addressing the wider
public. While it is understandable that in an election year political platforms
are used to differentiate and increase chances of being elected, economic facts
and realities should be understood and addressed constructively when suggesting
change.
These are two examples of how stakeholders
can make a difference in these challenging times by taking action within their
spheres of influence to create constructive dialogue and action.
In the next few weeks, we will see the 'Two
Conferences' take place. The outcome will be the naming of a new government that
will rule China for the next 5 years and influence the global economy with its
deliberations and decisions. There are many good reasons to watch and analyse
these events. The SCCC will soon announce the date and venue of a half-day
event to explain the implications of these developments for the Swiss economy.
The next newsletter will be published in
April 2023 with further updates on the mainland China economy. Until then, we
wish you a healthy and prosperous March.
Kind regards
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