‘Glass half full’ rating for Swiss-Chinese trade deal
Chinese President Xi Jinping is currently in Europe promoting his signature Belt and Road trade project. There are no plans to stop off in Switzerland. There’s no point, since the two countries have had close economic ties for a while. Exactly 20 years ago, however, the friendship turned sour.
This content was published on
3 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
Switzerland was one of the first Western countries to recognise officially the People’s Republic of China not long after its establishment in 1949.
But on March 25, 1999, this special relationship took a distinct turn for the worse. Arriving at parliament in Bern during an official visit to Switzerland, then-Chinese president Jiang Zemin struggled to contain his anger at the sight and sound of pro-Tibetan protestors. “Switzerland has lost a friend,” he declared.
External Content
Since that memorable diplomatic hiccup, things have returned to normal between the two countries – to the point that Switzerland has been calledExternal link a sort of “bridgehead” in China’s search for influence in Europe.
In April 2016, Johann Schneider-Ammann, who held the rotating Swiss presidency that year, travelled to Beijing. Less than a year later, President Xi visited Switzerland to attend the annual meeting of the World Economic Forum in Davos.
Switzerland has also strengthened financial ties with China over the years. In December 2018, UBS became the first foreign bank to gain majority control of a financial institution on mainland China by increasing its stake in the UBS Securities joint venture to 51%.
China has invested massively in the West, and Switzerland is no exception. More than 80 Swiss companies are now in Chinese hands, with a total value of CHF46 billion. The $43.3- billion takeover of agrochemical giant Syngenta by the China National Chemical Corporation (ChemChina) in 2016 is the biggest acquisition ever by a Chinese company.
However, China’s economic influence has also provoked criticism and resistance, notably from some members of Swiss parliament who recently asked the government to look into introducing investment controls on Chinese companies.
Popular Stories
More
Culture
Documentary portrays Swiss teenagers forced to return to parents’ homeland
French cross-border workers in Switzerland fear “discriminatory” unemployment reform
This content was published on
In the French region around Geneva, cross-border workers are protesting proposals to cut unemployment benefits for those working in Switzerland.
Swan infected with bird flu in central Switzerland
This content was published on
Switzerland has reported its first bird flu case of the season. A swan found dead in central Switzerland tested positive for the H5N1 virus.
Swiss researchers identify gene variants linked to cancer progression
This content was published on
ETH Zurich researchers explored genetic mutations’ effects on cell function and their role in cancer development and treatment using CRISPR/Cas techniques.
Explosion at Swiss company Givaudan’s US plant leaves two dead
This content was published on
Swiss flavour and fragrance maker Givaudan reported that an explosion at its Kentucky plant resulted in two deaths and several injuries.
Swisscom’s Vodafone Italia takeover cleared by Italian telecoms authority
This content was published on
Swisscom is one step closer to its planned acquisition of Vodafone Italia, as the Italian communications regulator has approved the €8 billion deal.
Swiss parliamentary committee proposes foreign aid cuts and military funding boost
This content was published on
A committee of the Swiss House of Representatives has proposed increasing funds for the military and agriculture while reducing foreign aid and asylum.
Swiss Rolex Submariner watches reach nearly $50 billion in total market value
This content was published on
The total market value of all Rolex Submariner watches ever made is nearly $50 billion, based on newly released production data.
Swiss Jew wrongfully detained due to prosecutor’s ‘bias’
This content was published on
A Jewish Swiss man was detained after the prosecutor argued he might flee to Israel. The Federal Court said this implies bias due to his Jewish faith.
US reportedly scrutinises Russian accounts UBS took over from Credit Suisse
This content was published on
The US is investigating Russian clients acquired by UBS during its takeover of Credit Suisse, according to three sources familiar with the matter.
WTO plans to reappoint Okonjo-Iweala before Trump swears in
This content was published on
Some member states of the World Trade Organization may seek to reappoint Director-General Ngozi Okonjo-Iweala, according to a document released on Tuesday.
This content was published on
In a statement the government said the deal would “improve access to each country’s markets for goods and services and legal certainty with regard to protecting intellectual property and bilateral economic exchanges in general”. It will also remove customs duties in most areas of bilateral trade. The bilateral free trade agreement was signed by Economics…
This content was published on
A feasibility study suggests that Swiss gross domestic product (GDP) could be boosted by 0.23 per cent and industry could make annual savings of around SFr290 million ($297 million) as trade barriers are lifted. Encouraged by the positive findings of the study, which suggested mutual benefits for both partners, the Swiss cabinet on Friday officially…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.