Dear Members and Friends

xīn nián kuài lè – 新年快乐

These were the magical words many of us exchanged over the past few weeks as we gathered with family, friends, and business associates to celebrate the start of the Chinese New Year, the Year of the Wooden Dragon. You have eaten well, had new haircuts, and worn new clothes. All of this is a reflection of the CNY traditions that have been followed for generations in Chinese communities around the world.

SCCC supported a message from Switzerland to the Chinese societies around the world. The internationally renowned light artist Gerry Hofstetter projected a Chinese Dragon (Loong) on the mountains above Davos. He created a powerful trailer of the projection making and the message behind it. SCCC humbly supported Gerry Hofstetter with cultural insights.

As mentioned in the last newsletter, the economic impact of the Chinese New Year is enormous. From 8 to 18 February, 474 million trips were recorded, a staggering 19% increase compared to 2019. In financial terms, this amounts to 632.7 billion RMB, an increase of 7.7% compared to 2019. The consumption figures are similarly impressive, with the food industry being the biggest beneficiary. Interestingly, cinema has emerged as a new trend with impressive ticket sales, despite the fact that films can be watched at home or on the move via broadband.

However, on a cautious note, a breakdown of the figures shows that while more people travelled, per capita revenue was 9.5% lower in 2024 than in 2019, according to the China Briefing newsletters.

Many of us see 2024 as a year of recovery, with CNY as the starting point. The numbers are not clear, there are good signs and there are signs of prudence. We will certainly see how the year unfolds in a few months’ time. It is clear that the Chinese government became aware of the risks of a weak economy and weak consumption. New laws have been introduced to protect private companies, and budgets have been increased to encourage foreign professionals and companies to travel to and invest in mainland China. Important government meetings will take place in early March, and measures are expected to be announced after the conclusion of these high-level events. The focus on stabilizing the property market will continue, with interest rates being cut and regional regulations being amended to create a more business-friendly environment.

As usual, the Chinese economy demands your full attention to understand the impact on your business in China, in Switzerland, and in other overseas markets. To this end, SCCC is organizing events in the weeks and months ahead to help you gain insight and interpret the signals you are receiving.

We wish you a successful March. The next newsletter will be published at the beginning of April, after the Easter holidays.

Kind regards

Shú néng shēng qiǎo.

Practice makes perfect.