Dear Members and Friends

The first quarter of 2024 is behind us and soon the statistics will tell us how we fared in the first quarter of the year. Whether as individuals, business units, countries, or the world as a whole, we often measure our progress against key performance indicators (KPIs). However, it’s important to regularly review these KPIs to ensure that they are aligned with our goals, our measuring criteria, and the context in which they are being used.

During my recent three-week visit to mainland China in March, I saw first-hand the efforts being made to address the economic challenges facing Chinese industry and consumers. There’s a noticeable trend towards openness to cooperation with overseas partners and a growing willingness to understand European markets. However, financial and political constraints remain obstacles and discussions have become more nuanced and thoughtful. It may be time to revisit our China strategy, timelines, and KPIs, incorporating insights from recent trips or, even better, feedback from local management teams.

One of the KPIs I have had to reassess is access to China. One of the most challenging aspects of the last four years has been the inability to travel to mainland China or obtain visas to enter the country. However, this has changed dramatically. While planning a family holiday recently, I noticed that China has become more accessible to Swiss citizens than the USA. How can this be the case? Well, as of 14 March, it is now possible to travel to China without a visa for up to 15 days. On the other hand, travelling to the US requires a full declaration of your social media accounts and incurs significant fees for digitally issued permits. From a KPI perspective, access to China has become easier.

But does this increased accessibility mean easier access to the Chinese economy in the future? The Chinese government has implemented policy changes in the past, but these have primarily addressed specific issues rather than fundamentally changing the economic landscape. Centralized control remains crucial to managing the economy and achieving the growth targets set by the country’s leadership.

A single KPI may not change the overall picture significantly. However, it can provide insight into potential future developments or shifts in focus by decision-makers.

This underlines the importance of the SCCC planning its next fact-finding mission (FFM) in June, where we will explore opportunities and challenges in cities and provinces affected by recent policy directives, such as Chongqing, Liaoning, and Beijing. With falling airfares and short-stay visa-free travel, attending the FFM is easier than ever. Interested? For details and registration please use the following link HERE.

Preparations are underway for the AGM on 7 June, with breakout sessions covering a range of topics of interest. We look forward to seeing you there and ending the day with our legendary AGM network apéro.

We wish you a successful month of April. The next newsletter will be published in early May.

Kind regards

Bù dānɡ jiā，bù zhī chái mǐ ɡuì.

The head of the house knows the cost of firewood and rice. ( He who takes charge knows the responsibility. )