Trade, Investment and M&A in Switzerland – Key Factors for Chinese Enterprises

Introduction

Switzerland has become a major jurisdiction for Chinese enterprises that are looking for Direct Investments in Europe, establishing European Headquarters and R&D-Centers, and acquiring European high-class know-how.

The number of Chinese-controlled, considerably sized companies or branches in Switzerland have increased tenfold in the last decade.

We have identified eight key factors which we believe make Switzerland a prime choice for Chinese Foreign Direct Investment in Europe that we are going to introduce to you in this brochure:

(I) Switzerland is economically integrated in the EU; (II) Switzerland is the first and only Continental European country that has concluded a free trade agreement with China; (III) Switzerland has excellent high-technology industries; (IV) Switzerland has excellent conditions for Chinese European headquarters; (V) Switzerland treats foreign investors almost as domestic investors; (VI) Switzerland imposes no restrictions on cross-border movement of capital; (VII) Switzerland offers very competitive tax rates in Europe; and (VIII) the New Sino-Swiss and the Hong Kong-Swiss double taxation treaties offer preferable conditions for investments into Switzerland from China and Hong Kong.

In addition, we introduce to you the Swiss M&A options for Chinese investors and company law in a nutshell.

We wish you much enjoyment in reading and discovering! 

Lukas Zuest (Counsel, Head China Desk) and Christoph Niederer (Partner, Head Tax)