Dear SCS member, partner and friends

The past months of 2011 were filled with exciting official exchanges between China and Switzerland: The Federal Councillor, Minister of Interior Affairs, Didier Burkhalter’s trip in China between April 21 and 27, 2011,  has successfully reinforced the Sino-Swiss collaboration on Science, Technology and Health. Furthermore, after official kick-off of Free Trade Agreement negotiation in end January at Davos, the first-round negotiations were successfully held on April 7 and 8, 2011 at Bern. A feasibility study published last year suggested that Switzerland’s gross domestic product (GDP) could be boosted by 0.23 per cent while firms could make annual savings of CHF 290 million per year if trade barriers were lifted.

In the past decade, the annual average growth rate of China’s export to Switzerland stood at 19% while that of Switzerland’s export to China was as high as 29%. After the financial crisis, bilateral trade rebounded remarkably in 2010, and the total value doubled to over $20 billion, and China (incl. Hong Kong) is the largest contributor to Swiss export growth, with 10 times faster growth rate than the Swiss Exports to the EU.

New SCS Member: Moevenpick Hotels and Resorts AG, Leister Technologies Ltd., Haug Kompressoren AG and Affolter Technologies SA

Swiss Center Shanghai has also taken a good momentum to expand the network and upgrade the services. We warmly welcome the latest member company to join SCS: Moevenpick Hotels and Resorts AG. We wish Moevenpick a great start in China and will be happy to support its business development to a fruitful success.

In the meantime, we are also very happy to announce the membership renewal from our existing members Leister Technologies Ltd, Haug Kompressoren AG and Affolter Technologies SA. We greatly appreciate the trust and support of our dearest members to further develop the Swiss Center Shanghai and we look forward to collaborating closely in the future.

SCS Service Partner: JC Mandarin Hotel Shanghai and Shangri-La Hotel Hangzhou

We are very happy to offer all employees and clients from SCS Member Companies favourable conditions at the JC Mandarin Hotel in Shanghai and at the Shangri la Hotel in Hangzhou. Please kindly contact us to make the reservation, Swiss Center Shanghai will be happy to provide you the corporate rates for the various room categories.
 

SCS Press Release: China`s rise boosts the Swiss economy

Swiss exports go east: Swiss companies exported goods in the value of 12.4 billion Swiss francs to China (incl. Hong Kong) in 2010, according to recent figures of the Swiss Federal Customs Administration. “That is a growth of 35% and 3.2 billion Swiss francs year-on-year. The Swiss export industry has not achieved such a success in any other market – China is the single largest contributor to Swiss export growth. Moreover, it is contributing 3 times more export growth than the rest of the BRIC markets combined”, analyses Nicolas Musy, Managing Director of the non-profit organization Swiss Center Shanghai (SCS). To draw a comparison with fully developed markets: In 2010, Swiss companies realized additional sales of 2.4 billion Swiss francs to Germany and 1.8 billion Swiss francs to the USA. “The exports to the EU went up by 3.6% – the exports to China grew ten times faster”, says Musy.

Swiss Center Shanghai, with 50 members, is by far the largest cluster of Swiss companies in Asia. SCS facilitates the market entry and development of Swiss firms with instant office and workshop space, legal support, government relations, management services and a broad network of experts. It allows companies to start an operation with minimal expenses per year, equivalent to hiring one more person in Switzerland.

Machinery, precision and watch companies profit
Two sectors are the main drivers of Swiss exports to China (incl. Hong-Kong): Machinery exports and watches & precision instruments exports add up to three quarters of the total. Watches, precision instruments and jewelry in the value of 5.8 billion Swiss francs have been exported in 2010 – an addition of 45% over 2009. Machinery exports grew by 46% – ten times faster than to the EU – to 3.5 billion Swiss francs.

Swiss Center Shanghai mostly supports machinery and industrial equipment producers, particularly with its Machinery Center allowing exporters to establish demonstration, application, training, and after sales service operations to support local customers.

Trade surplus creates high added value jobs in Switzerland
The fast growing Chinese market already imports 6.4% of all Swiss exported goods. Even more remarkable: Switzerland is one of the few countries regularly posting a positive trade balance with China. The trade surplus 2010 with China (incl. Hong Kong) was 5.5 billion Swiss francs. “A comparison with the overall Swiss trade surplus of 19.4 billion Swiss francs shows how important the Chinese market is becoming for Switzerland”, states Musy. “We can estimate that the Swiss export growth to China in 2010 created between 10’000 and 15’000 high added value jobs in Switzerland, which is not the case for most EU countries and the USA.”

Chinese companies discover Switzerland
“But not only do the booming exports to China contribute to the Swiss job market”, reports Zhen Xiao, General Manager of SCS. “Chinese companies also start to invest in Switzerland and create jobs there directly.” Swiss Center Shanghai is therefore newly active in finding Chinese companies who are interested to invest in the Swiss market and supporting them on their way to Switzerland. “Until now, around 40 Chinese companies have established their operations in Switzerland and created many specialized jobs. For example the innovative solar company Suntech Power – the world’s third largest solar company and the world’s largest producer of crystalline silicon photovoltaic modules – has started in Schaffhausen, and the two global leaders in telecom and network solutions, Huawei and ZTE, have setup in Bern”, explains Xiao.

Prospect for 2011: further growth expected
With the Chinese economy on the fast track, Swiss companies can continue to profit from the China boom in 2011 and the years to come. Musy: “On average, analysts expect that the Chinese market will grow around 9% annually in the decade starting this year. Precision instruments, machinery and watch companies have the greatest opportunity to further expand their sales with the right strategy, China know-how, and products that fit the local market. As the trade figures imply, it is high time for Swiss companies to push their business in China. The market is very competitive and particular; however with 10 years of experience, its network and track record, the Swiss Center Shanghai offers the necessary support and reduction of risks for a success.”
 

Swiss Center Shanghai wishes you all a successful Business and is looking forward to assisting you in the future.

Best regards,

Zhen XIAO                
General Manager
 

Michèle Haymoz
Operation Manager