The 2018 Swiss Business in China Survey is now available in digital format.

The results show that generally speaking, Swiss, international and Chinese companies are doing well in China. In fact, foreign companies continue to report fast increasing sales, despite the slowdown in China’s GDP growth. And again, over 50% of Swiss, EU and US companies expressed an intention to increase investments in China in 2018.

In terms of profitability, however, Swiss companies are stagnating (61% announce to be “profitable” or “very profitable”). This may in a sense explain why after a marked rebound in confidence last year, Swiss firms see the long term with less confidence than the immediate future. It is the first time this has happened since the survey is conducted. It is also noteworthy that, on the other hand, Chinese firms continue to expect better times over the long term.

However, foreign and particularly Swiss SMEs with their traditionally niche fields of activities are less affected by the domestic competition than larger enterprises.

Read more and download the complete survey in pdf, click 2018 Swiss Business in China Survey.

More previous reports:

2017 Swiss Business in China Survey

2016 Swiss Business in China Survey

2015 Swiss Business in China Survey

2014 Swiss Business in China Survey

2013 Swiss Business in China Survey

But to what extent has the FTA been utilized across industries? Does the FTA create more business revenue and bilateral trade? Most importantly, how can the FTA be further developed and improved?

With the aim of shedding light on this agreement, a research-based assessment of the Sino-Swiss FTA has been carried out. The research results was published on September 26, 2018, in the Sino-Swiss FTA 2018 Academic Evaluation Report.

Behind this work is a team of academics of the Sino-Swiss Competence Center (SSCC) from the University of St.Gallen (HSG), the University of International Business and Economics (UIBE), and Nanjing University. Swiss Centers China were delighted to have also been one of the research partners.

“In the current global environment where globalization has been sidelined, the challenges China and Switzerland face in the promotion of free markets will not lessen, au contraire. These forces however will only be an incentive for even stronger Sino-Swiss collaboration.” As Dr. Jean-Jacques de Dardel, Swiss Ambassador to China Embassy, put it, “The continuous honing of the Sino-Swiss FTA and its implementation, enhanced by the valuable data presented in this report, will be part of this effort.”

To access the report please click here: Sino-Swiss FTA – 2018 Academic Evaluation Report

One major event demonstrating the openness is the 1st China International Import Exposition (CIIE), to be held on November 5-10th 2018 in Shanghai. Its aim is to boost importation and provide platform for new and high-end products to access the Chinese market. Swiss Centers China is honored to be an official partner of CIIE, and to support the Swiss companies’ participation in this event.

With the growing middle-class and urbanization, Chinese market potential is yet to be exploited by many Swiss companies whose products and services that may have been considered too expensive for China. To support the further development of Swiss businesses in China, Swiss Centers is preparing a new facility in Shanghai Hongqiao CBD, ideally located in proximity to the airport and high-speed train station.

We invite you to find out more details in this newsletter, and happy to answer your inquires anytime and support your development in China!

View the newsletter here.

The key findings:

1. While Swiss exports in 2017 to key markets such as Germany, Italy and France did not yet rebound to their 2008 levels, the exports to China and Hong Kong grew by an astonishing 66% in the same period. Exports to the USA increased even higher, by +73%.
2. In 2017, China and Hong Kong bought watches and precision instruments in the value of 7.2 billion CHF from Switzerland, making China again the largest world market for Swiss products of this segment.
3. Swiss exports to China will certainly continue to increase: 72% of decision makers in China expect “higher” or “substantially higher” sales in 2018 compared to 2017, according to the 2018 Swiss Business in China Survey.

The comprehensive survey – the full results are going to be published in March 2018 – comprises responses from 108 Swiss enterprises. It is believed to be representative of the approximately 600 Swiss companies in China. Besides Swiss companies, the survey also includes responses from Chinese (440) and other foreign companies (70).

Download the full press release in English, German or French

The 2017 Swiss Business in China Survey is now available in digital and printed formats.

A printed copy is ready to order at 60RMB from admin@swisscenters.org.

Swiss managers in China are considerably more confident than a year ago: 68% expect “higher” or “substantially higher” sales in 2017 compared to 2016, while only 1% expects lower sales. As well 68% consider their companies “profitable” or “very profitable”, while only 14% announce a loss.

Hence, 61% of Swiss companies plan to increase their investments in China; and for 57% of Swiss companies, China is a top 3 priority for investments.

Read more about the survey findings in the press release here.

To download the complete survey in pdf, click here.

Worldwide Swiss exports gained 3.8% in 2016, with Germany (39.7 bio CHF, +8.3%) and the United States (31.4 bio CHF, + 14.6%) remaining the biggest markets for Swiss goods. China (including Hong Kong, 14.69 bio CHF) continues to be the third biggest market, followed by France (14 bio CHF, +0.8%) and Italy (12.7 bio CHF, -0.9%).

To read more, download the press release in English, French, or German

“Not only are sales expectations very high, but also profit expectations”, reports Nicolas Musy, Co-Founder and Delegate of the Board of Swiss Centers China. For 2016, 68% of managers of Swiss companies in China said their operations were ‘profitable’ or ‘very profitable’, while only 1% reported a substantial loss. For 2017, 48% expect higher profits while only 4.6% see lower profits.

To read more, download the press release in English, French, or German

Among many interesting events and delegations, one good example testifying the dynamism is the well-attended event “Swiss Incubator @ WEF Tianjin”. This event took place in late June, where the Swiss Center Tianjin was honoured to be part of the organisation and witnessing the interesting exchanges between Swiss innovative companies and Chinese entrepreneurs.

In the next months to come, a few more exciting events are waiting ahead both in Switzerland and in China – to learn more, download the Swiss Center September 2016 Newsletter

The 2016 China Business Survey offers an important perspective on the experiences of managers working within a slow growth period. As the survey results indicate, the slowing growth of the Chinese economy has not hindered the ambitions of businesses, over 50% of all companies surveyed stated an intention to increase investments in China in 2016. Furthermore, sales and profit expectations remain stable across the board despite China’s slowing economic growth.

In a continuing trend, Chinese private enterprises are seen as the greatest source of competition. However, foreign, and especially Swiss, companies succeed in this competitive market by differentiating through quality and maintaining positive brand images. Additionally, Chinese enterprises report much more of a challenge posed by innovation than foreign companies do. Oft-cited challenges related to human resources issues in China remain consistent with the exception that companies surveyed appear to be struggling less with retaining employees than in previous years. Overall, managers in China continue to find success and most intend on expansion in the coming year.

We hope that readers will find this survey insightful and useful for business. Please do not hesitate to get in touch with any questions about the topics covered.

For more details, please download here.

Download the PDF of the Swiss Business Survey 2015.