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China’s demand for Swiss machinery booming

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Swiss companies exported machinery product in the value of CHF1.45 billion ($1.46 billion) to China and Hong Kong in the first six months of 2018, according to figures released by the Swiss Federal Customs Administration. This represents an increase of 10% compared to the first half of 2017.

Nicolas Musy, founder of the Swiss Centers China, said the Asian country’s thirst for automation has increased demand for high-quality machines from the Alpine nation.

 “Chinese manufacturers upgrade their equipment and automation becomes ever more important. Highest quality machines are in high demand – that is why China will remain a key market for Swiss machinery companies in the coming years,” he said in a statement published on Thursday.

Since 2016, Swiss machinery exports to China and Hong Kong have been on the rise.

The Chinese market (including Hong Kong) is the third biggest market for Swiss machinery products worldwide. The largest market remains Germany (CHF4.1billion), followed by the United States (CHF1.8 billion).

Switzerland exported CHF8.9 billion in goods to China and Hong Kong in the first half of 2018, with imports amounting to CHF7.4 billion, resulting in a trade surplus of CHF1.5 billion.

Swiss watches and precision instrument exports boomed in the first half of 2018 to a value of CHF4 billion. That figure represents a 17.5% increase compared to the same period the previous year.

“After the Swiss watch exports experienced a strong decline due to a Chinese anti-corruption campaign, the current rebound and growth is driven by a healthier consumption of a quickly growing middle class and a sophistication of the Chinese consumers,” explained Zhen Xiao, Managing Director of the Swiss Centers China.

The figures and analysis were presented in a statement issued by the Swiss Centers China, the largest cluster of Swiss enterprises in Asia.

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