SCS New Members: Rahn AG and WDT ToolTech AG
The Swiss Center Shanghai warmly welcomes its latest members, Rahn AG, a premier international supplier of specialty chemicals focused on additives, oligomers, photoinitiators and reactive diluents, and WDT ToolTech AG, offering crimping, cutting, wire handling machines and hand tools.
We wish both companies all the best for their operations and of course look forward to being of support in their growth here in China.
SCS New Service Partner: C:lynk
We are happy to announce that the SCS will be working with C:lynk, an agency specialized in branding, design and advertisement. It offers full creative services for established and yet to be launched companies and brands, from strategy, conception to execution. With its offices in both Geneva and Shanghai, C:lynk provides the best from both practices and cultures, the Western experience in creativity and design, combined to the dynamism, enthusiasm and know-how of the East. C:lynk gladly offers our member companies 10% discount on all services, excluding any third-party costs.
All SCS accredited partners offer privileged services to our members. Among others, Adecco and Swiss International Airlines have recently established new partnership agreements with the Swiss Center Shanghai. The member companies are welcome to contact SCS to get more information.
SCS event: HR Lunch Briefing
SCS had the pleasure to welcome Mr Gordon FENG, Associate, Employment Law, from Paul Hastings LLP to discuss the new Social Insurance Law for expatriate employees in China that went into effect October 15th. Gorden Feng examined what it really means for the city’s international business community and how they can adapt to the new changes. Gordon looked at both the key points of the legislation itself and the accompanying implementation rules. His insights helped guests understand the legislation’s impact on foreign employers and employees in China in terms liability, contribution rates, and the potential benefits for employees.
With good feedback from the guests, SCS will get more active in organizing such events on topics that could be of interest to its members. Please feel free to get in touch with any topic suggestions.
SCS Press Release: Swiss Center Shanghai: a decade of record growth
The Swiss Center Shanghai (SCS, www.swisscenters.org), by far the largest cluster of Swiss enterprises in Asia, looks back at a decade of record growth since its founding in 2000, on the anniversary day of the 50 years diplomatic relations between Switzerland and China. “The Swiss Center Shanghai supported more than 100 Swiss companies in entering the Chinese market. 20 production companies and more than 30 offices and trading companies were successfully established”, outlines SCS General Manager Mr. Zhen Xiao. Among the SCS members and sponsors are not only multinational companies, but also the Swiss Cantons Jura, Neuchatel, Fribourg, Valais and Vaud. The cluster around the Center accounts for over 35’000sqm of industrial and commercial space occupied by Swiss companies. Besides office and workshop space and employee hosting, the SCS supports its members with government relations, step by step entry solutions, legal support, management services and a network of experts in China.
Prime example for a successful expansion to China: KUK Electronic AG
One of the first enterprises joining Swiss Center Shanghai was Appenzell based KUK Electronic, a leading manufacturer of coils and electronic assemblies, employing more than 300 people worldwide. In 2003, a 100-percent-owned affiliate of KUK was established in the SCS on request of a major multinational client making mobile phones. The subsidiary manufactures products for the markets in the Far East as well as for Europe and the US. “Due to the success of our China subsidiary, KUK has enjoyed in average 15% annual growth in revenue for the past eight years”, comments Sandy Zhang, CEO of KUK China. Today, KUK China operates with 100 employees in the SCS workshop. “The network and support of the Swiss Center Shanghai experts has been crucial to our business development in China, especially in dealing with the local authorities”, reports Sandy Zhang. “We have a positive view of the future development in China, and look forward to a further expansion in the coming years with the support of the SCS.”
“Swiss companies benefited enormously from China’s rise: The Swiss exports and positive trade balance multiplied three times in ten years”, explains SCS Managing Director Mr. Nicolas Musy. Goods in the value of more than 12.4 billion Swiss francs have been exported to China (incl. Hong Kong) in 2010, according to figures of the Swiss Federal Customs Administration.
Recently, China became the largest contributor to Swiss export growth in absolute terms – with a plus of 3.2 billion Swiss francs year-on-year in 2010. A similar amount is expected for 2011. Mr. Musy: “Switzerland also benefited from an ever-increasing positive trade balance with China during the decade, clearly showing that there is no delocalization from Switzerland to China. On the contrary increasingly positive trade creates more and more interesting jobs for the Swiss economy. This is also the experience of the Swiss Center: The production companies established through the Swiss Center sell more than 75% of their production in China.”
China has become the locomotive of Swiss exports since the 2009 crisis
In the first eight months of 2011, Swiss exports to the EU went down by -0.5%, while exports to China increased by 26.2%. “China’s market is coming of age for our quality products. The most interesting phase of China’s development is about to start for Swiss luxury and technology companies”, states Musy. China overtook France to become the fourth largest importer of Swiss goods. Only Germany (33.3 billion CHF), the USA (16.4 billion CHF) and Italy (13.2 billion CHF) import more. Goods in the value of 12 billion Swiss francs have been exported to China and Hong Kong in the first eight months of 2011. Mr. Musy: “Figures indicate clearly that while exports to the EU have not yet recovered to their pre-crisis numbers, China’s not only have, but have also more than compensated for the losses in exports to the EU since 2009.”
A green future: focus on clean-tech
For the first time, the Chinese Government issued binding targets to all its employees including environment and climate measurements. Mr. Musy: “Up to now, the administration was essentially rated on growth. In the next five years, among others, the country’s officials aim to reduce the amount of energy per unit of GDP by 16% and the amount of water used per output of industrial production by 30%!”
Among others, China’s government has established inter-ministry plans to become the leader in electric vehicles in this decade. 1 Mio electric vehicle a year shall be made by 2015 and 5 Mio a year by 2020. In the coming five years China is expected to spend USD 1 Trillion on clean technologies, both to ensure continued fast growth that the environment can sustain and to be a leader in what is widely expected to be the most interesting new business opportunities since the development of IT.
“This enormous need for green solutions opens a whole new set of opportunities for Swiss companies, which are in many clean-tech and energy related fields quite ahead. The SCS is planning to expand its next set of demonstration rooms and manufacturing facilities in specially constructed energy-efficient buildings together with Swiss partners to demonstrate the possibility of Swiss clean and sustainable technologies”, explains Xiao.
Swiss Center Shanghai wishes you a great holiday season and all the very best for 2012!
Best regards,
Zhen XIAO
General Manager
About Swiss Center Shanghai
Founded in 2000, SCS is by far the largest cluster of Swiss enterprises in China with a rich experience in business set-up and China operations management. SCS, a non-profit organization, not only offers instant workshop, machinery center, office and desk space, but also supports the companies with government relations and a broad network of experts. SCS and its partners served more than 200 companies in China – both SMEs and large enterprises. Among other, the SCS experts performed set-ups of 20 production companies and more than 30 offices and trading companies. For more information, please visit: www.swisscenters.org.
