Dear Members and Friends
A quarter of 2023 has already passed, the
"Two Sessions" have taken place, and the Chinese government has been
named, confirmed, and has begun its work. Visitors from China have started to
arrive, and many of you have had meetings with Chinese delegations. From our
conversations with Swiss companies and entrepreneurs, we have learned that many
have already visited China or are planning to do so in the coming weeks and
months.
Are we back to normal? Talking to business
people in both countries, we learned that the economy has recovered, but not to
the level and speed that many had hoped for. The media report stacks of empty
containers in Chinese ports and logistics costs that are still falling each
month. Others report normal to quite busy operations. Clearly, the Chinese
economy is ramping up and not yet back to normal in all areas.
Why is this? At our conference on 29 March,
we looked at the current situation. Here are some thoughts and takeaways from
the presentations, speeches and discussions that took place:
The combined effect of new government
bodies, a new super-regulator for the financial industry, a trend to move
operations out of China due to supply chain risks and sanctions caused by
geopolitical tensions, oversupply in the property market and finally a weak
global economy are all having an impact on domestic and foreign investment.
Entrepreneurs and companies are questioning whether long-term investment in
machinery is in the best interests of shareholders in such an unpredictable
situation, as the industry may look different in 2-3 years' time.
Both the Chinese and Swiss ambassadors
emphasised in their messages to the audience that the new Chinese government
was delivering pro-business messages in and after its inaugural talks and
speeches. This is intended to build trust onshore and offshore. The annual
gathering of foreign business leaders at the BOAO Forum has also been used to
build trust, and the same can be expected during the upcoming visits of
European leaders to Beijing.
April is likely to see a flurry of
high-level meetings and state visits in China, with noteworthy messages being
given and received. All with the aim of supporting the Chinese government's
vision of a multipolar world that distinguishes China from Russia and Europe
from the US, and thus provides China with diplomatic space to advance its
global agenda.
We will monitor this space and provide you
with insights and updates through newsletters, webinars and events that are
timed to provide the best value to you, our members. The next such event is the
Swiss-Chinese Life Sciences Forum on 4 May in Basel, which is timely as new
regulations in this industry have led to many discussions and strategic
challenges.
On the travel front, we can report that all
types of visas, including tourist visas, are being reissued and that visas
issued before February 2020 are valid again, as long as they have not expired.
Flights from Switzerland to Shanghai and Beijing have resumed, but not yet with
the same regularity as in 2019.
The next newsletter will be published in
May 2023 with an update on mainland China's economy. Until then, we wish you a
happy Easter and spring.
Kind regards
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