Dear Members and Friends

While you read this newsletter in Switzerland, the Golden Week holidays have just begun in China. Temperatures have dropped significantly in both places, ending a hot and dry summer. This has made it clear that we cannot continue as we have been doing for the past years and decades.

In many ways, real change is in the air: how we view energy, how it is generated and consumed, how it affects our individual lifestyles and the world in a holistic way. The pandemic has shown us that ever-increasing life expectancies are not guaranteed. We are observing changes in the European security landscape that seemed impossible just a few months ago. In addition, the economy is changing from a zero-interest rate environment to an inflationary one.

We are sure you would name a few more areas of change, be it the environment of European political parties or others. What is certain is that there is a lot to deal with and we have to focus on ourselves. It can be overwhelming at times.

In the meantime, there are also changes in China that should be observed. In recent speeches and statements, the Chinese government has subtly but clearly expressed that it wants to go its own way. Especially with regard to Russia's invasion of Ukraine, it is clear that China is not willing to be put into a box shaped by prejudice, but to develop and represent its own opinion. China does not side with Russia or the U.S., but calls for a halt to the war and respect for Ukraine's sovereignty. However, the Western media have not (yet) picked up on these different tones and see China and Russia as one bloc.

In our polarized world, China's communication does not go down well. You are for me or against me! What happens to the shades of gray and the differentiation of arguments? While we are not used to the new messages and wonder if this is simply the result of PR advice, we should pause in our thinking and consider the impact of the messages. Is this another change, how does it affect us, how do we deal with it?

It is certainly worthwhile the exercise, because in less than two weeks the 20th CPC Party Congress will begin, and our efforts will allow us to hear and understand the intentions of the world's second largest economy. The categories of change we mentioned above will all be affected, including you and your businesses and industries.

Therefore, our advice for October 2022 is to pause, observe, conclude, and act.

To this end, SCCC and its partners (Economiesuisse, Swiss Centers) are organizing a half-day event on October 24, 2022 to observe and understand the future course of the Chinese economy. Please register here for the event!

The next newsletter will be published in November. In the meantime, we wish you colorful month of October.

Kind regards

Xiào yí xiào, shínián shào.

Smile is the best cosmetic. (One laughter takes ten years off. / Laughter or smile keeps you young.)