Dear SCCC members
The commercial interest Chinese investors and Chinese consumers show in Swiss products is remarkable – sometimes we ask ourselves why one of the largest economies in the world fosters and cares about privileged ties to an economically and politically successful, but geographically tiny country. China opens up a renminbi exchange platform in Zurich, enters the first ever free trade agreement with our country, and invests in the chemical and the pharmaceutical sectors in Basel while these Swiss groups expand their research campus into China. What will happen next? Is the Swiss commercial landscape being used as a guinea pig? This could mean that after a quick learning phase by the buyers, the majority of our export goods would be produced at lower costs in China.
I am not convinced that such a scenario will unfold – and if so, then only in industries where we show a lack of innovation. We have been exporting Swiss watches for over 100 years, and the demand in the Chinese market is still increasing. Indicators show clearly that our pharma as well as our food industries have a bright future in China. The reasons for this do not lie only in better know-how and in better research – but also in superior reliability. Sensitive products like drinks or baby food from Chinese producers sometimes have difficulties to make Chinese consumers happy. Instead, they express a clear interest to buy products from corruption-free, systematically supervised and hence reliable producers. Furthermore, quite a number of these consumers have the funds to pay a higher price for clean food or high-quality drugs today.
Overall, this is good news, not because Swiss exports are safe forever – but because global trade patterns apparently do foster global trading standards. This is true not only regarding
production costs, but also with respect to moral aspirations. Global trade provides global choice, also in China with its open market policy.
I wish you all the best for the coming months and hope to meet you at one of our upcoming SCCC events!
Best regards,
Thomas Christ
Swiss Communications Minister Doris Leuthard has expressed concern about potential acquisitions by Chinese firms of 'strategically sensitive' companies in Switzerland.
