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	Swiss Centers Summer Newsletter - July 2023 Dear Swiss Centers Members, Partners and Friends, While we embrace the hot summertime, Swiss Centers warmly welcome 6 new member companies who joined our cluster in 2023, namely Contexa, Wonder Pet Concept, SwissOxx, Virtuarch, Bartholet Maschinenbau, and Swatch Group, as well as NGL Group who renewed its membership at Swiss Centers. Among them, some are veterans with decades of experience of doing business in China, while some others are just at the beginning to explore this attractive but highly competitive market. This testifies the interest of Swiss businesses in China, as we reported earlier this year in the Swiss Business in China Survey 2023, the Swiss companies in China regained its confidence, reaching a historical high level at 7.2 out of 10. At the same time, Swiss businesses face many challenges in China, with quite a number of new ones coming to the top, such as “geopolitical tensions”, “changing group strategy towards China” and “the lack of understanding and support from Head Office”. This “gap of understanding” is becoming increasingly important, with nearly three years of restricted business travels and increasing trade and technology barriers. For the Swiss executives and entrepreneurs who need to handle their business in China, it is crucial to stay connected and understand as much as possible the realities of what is happening on the ground. For this purpose, we kindly invite you to join our Fact-Finding Mission to (re-)discover China in November 5-12, with a special focus on innovation. Hope to welcome you then (or earlier) in China! In the meantime, wish you all a great summertime! Zhen XIAO CEO
	Contents § New Members § Renewed Members § Fact Finding Mission: (Re)discover China § Swiss Business in China Survey 2023 § Events and Activities in Switzerland § Events and Activities in China § Follow Us


	New Members
			Contexa SA is a global leader in the engineering and production of automated dosing solutions for the perfume and aroma industries. Based in Geneva since 1999, Contexa is the inventor of the volumetric dosing technology and is recognised as the foremost innovative partner from laboratory to production.
			Wonder Pet Concept SA is with purposes as follows: the design, production, development, marketing of objects of all types that can improve the quality of life of domestic animals; the acquisition, import, export and marketing of any material necessary to achieve the goal; training in the field of animal protection and in all fields related to the activity; the company may also carry out for its own account or on behalf of third parties all commercial, financial, industrial and movable transactions in direct or indirect relation with its main purpose, in Switzerland and abroad, proceed to the opening of branches in Switzerland and abroad and participate in all companies or operations directly or indirectly related to its goal.
			SwissOxx is the new skincare brand created by the T&MC Industry SA group; Swiss company engaged since 1971 in the research and development of technologically advanced products, intended for the promotion of health and personal care. Our vision is to become a reference brand for modern consumers, attentive to the quality of formulas and with a strong attention to all aspects that lead to the shopping experience and loyalty Starting from a concept of quality assurance and product presentation with a luxury positioning, also paying attention to current issues of sustainability and anti-waste, with functional packaging and concentration of active ingredients for greater effectiveness, with the best quality price ratio, with an affordable price positioning, despite the high quality offer.
			For more than 20 years, Virtuarch has been providing construction and project management services at all stages of building development, covering Greater China and Asia. Our strong, talented team and practical approach enable us to complete creative projects within tight deadlines and financial budgets. Whatever we do: We always aim to "build a better future".
			Bartholet Maschinenbau AG, headquartered in Flums, Switzerland, is a leading international company in the fields of ropeway systems, amusement parks, mechanical engineering and lighting systems. A qualified team of more than 450 employees as well as a modern infrastructure guarantee a fast and customer- specific realization of complex projects. For more than 60 years Bartholet has been planning and building ropeways in mountain areas and increasingly also in urban areas. Innovative ideas and the development of new, trend-setting products enjoy a high priority at Bartholet.
			Swatch Group is a diversified multinational holding company active in the manufacture and sale of finished watches, jewelry, watch movements and components. It is the world’s largest watchmaking group and supplies nearly all the components required for the watches sold by its 17 individual brands and the multi-brand retail companies Tourbillon and Hour Passion. Its production companies supply movements and components to third-party watchmakers in Switzerland and around the world. Swatch Group is a key player in the manufacture and sale of electronic systems used in watchmaking and other industries. It is also a leader in the field of sports event timing.

Renewed Members

With more than 40 years of experience in formulating, manufacturing, and marketing innovative ecological solutions, NGL has established itself as one of the leaders in chemistry for precision cleaning and surface preparation in various industrial fields. Building on this success and with a commitment to environmental sustainability, NGL has developed extensive equipment and solutions for prefiltration, recycling of washing line waters, and treatment of residual waters.

Fact Finding Mission: (Re)discover China

We are delighted to invite you to a week of (re)discovery of China through a fact-finding mission which will take place from November 5 to 12, with a dual objective:

1. to (re)connect with China, whose borders have remained almost hermetically sealed for 3 years.

2. to discover a little-known aspect: the innovation capacities of companies based in China, both Chinese and foreign, and by extension Swiss.

Over 6 days and across 3 cities (Shanghai, Hangzhou and Shenzhen), participants will have the opportunity to update themselves on China's business ecosystem and visit a number of companies, including the Schindler campus in Shanghai, Alibaba Cloud in Hangzhou, and Tencent, BYD (which already produces more electric cars than Tesla) and Huawei in Shenzhen.

This trip is organized with the support of the Consulate General of Switzerland in Guangzhou, the Service of the Economy of the Canton of Neuchâtel (NECO), INNOVAUD, Geneva Chamber of Commerce Industry and Services (CICG), the Economy of Trust Foundation, Microcity, AIP (Association Industrielle et Patronale), Alp ICT, the UIG (Union Industrielle Genevoise), P&TS, China Integrated, Switzerland Global Enterprise, the Swiss-Chinese Association – French Speaking Region and CNBW China Netzwerk Baden-Württemberg.

Should you have an interest to join this mission or any further questions, please do not hesitate to contact our China Market Access Manager Romain Barrabas: romain.barrabas@swisscenters.org or 078/219.41.47.

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Swiss Business in China Survey 2023

Exclusive Press Release – Swiss companies in China: post-Covid confidence boost

The Swiss business community in China has regained its confidence: In the recent “Swiss
Business in China” survey, 62% of respondents expect higher or substantially higher
profits in 2023 compared to 2022.
The confidence level, at 7.2 out of 10, is not only significantly higher than in 2022, but also
stands out historically.
The strict zero-Covid measures have hurt Swiss companies in China: One fourth of
respondents stated that the measures have reduced their China sales by 30% or more.
Geopolitics have entered the business equation: Though Swiss companies see China as a
priority investment market at levels similar to before the pandemic, 42% of respondents are
postponing or canceling some investments in China due to international tensions.

Shanghai (May 25, 2023) – Decision makers of Swiss enterprises in China have regained their confidence
after the end of zero-Covid policies in the second largest economy of the world: In the recent “Swiss Business
in China” survey, 62% of respondents expect higher or substantially higher profits in China in 2023 compared
to the year before. “During the pre-pandemic years of 2019, 2018 and 2017, 48% of companies expected
higher profits when compared to the previous year. However, the proportion of Swiss firms expecting lower
profits increased to 13% in the 2023 survey while the three pre-pandemic years average was 7%,” states
Nicolas Musy, Delegate of the Board of the Swiss Centers Group, a non-profit organization that lowers the
Asian market entry hurdles for Swiss enterprises. “More importantly, the confidence now is higher than even
in the recent pre-pandemic years. We have developed the confidence index first in 2014. And we have to go
back to that year to reach a higher result than the post zero-COVID confidence level of 2023.”

The Swiss Business in China survey is published by the University of St. Gallen (HSG), the Swiss Centers
Group, and China Integrated in partnership with the Embassy of Switzerland in China, SwissCham China,
Swissnex, Economiesuisse, Switzerland Global Enterprise and the Swiss-Chinese Chamber of
Commerce. The comprehensive survey includes responses from 111 Swiss companies, both SMEs and large
enterprises, and is believed to be representative of the roughly 600 Swiss companies in China. (Download the
full survey HERE)

The survey features a metric to compare the confidence level of Swiss enterprises over the years. In the recent
survey, the confidence level of respondents reaches 7.2 on a scale from 0 (absolutely not confident) to 10
(extremely confident) when asked about the next year. The confidence about the next five years is equally
high (7.17). “After China’s reopening, the Swiss business confidence has rebounded. Swiss companies see
very positive opportunities for their businesses in China. This confidence level was recorded in the first quarter
of 2023 looking only at the business environment, though. This outlook is still less positive than in 2022 pre-lockdown when it reached its highest recorded level,” underlines Musy.

For any further information, we invite you to read the dedicated press release (in English, in French and in German)

Events and Activities in Switzerland

2023 Switzerland – Changzhou Intelligent Manufacturing Innovation Day on 25th May in Switzerland

On 25^th May, a doubly important event for the Swiss business community in China was held in Switzerland, attended by some 140 participants.

Important because our founder Nicolas Musy presented for the first time the results of the 2023 edition of our Swiss Business in China Survey, a unique study that highlights the challenges and points of competitiveness of the Swiss economy present in China. The comprehensive survey includes responses from 111 Swiss companies, both SMEs and large enterprises, and is believed to be representative of the roughly 600 Swiss companies in China.

It was also important to welcome the authorities of Changzhou, a city that should be known by the Swiss business community active in China in view of the important concentration of Swiss companies already established on its soil. Located near Shanghai, it's a strong international industrial base of precision machinery, pharma and medtech, new materials, advanced manufacturing, automobile and components.

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An exclusive business meeting on 9^th May in Switzerland

On May 9^th, we organized an Exclusive Business Meeting between the Director of its Free Trade Zone, accompanied by a large delegation and nearly 60 businessmen and women working for companies of all sizes and active in multiple fields, already established in China or considering expanding there.

Shanghai FTZ is the first and largest FTZ in China, home to more than 12'0000 foreign companies and has implemented numerous policies to ease company setup and business operations.

We have been established there since 2014 where we manage 4'000 m² of offices and host about 20 companies, including, Fraisa (Fraisa (Shanghai) Co., Ltd.), Mikron Tool, Microdia SA and TSCHUDIN AG.

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Scene of a high-level close-door meeting in Geneva

On May 4th in Geneva, Swiss Centers had the pleasure to organize a closed-door meeting between a dozen Swiss business leaders and a high-level political-economic delegation from Guangzhou Municipality and Huangpu District Committee. The welcome addresses were given by our CEO Zhen Xiao, our President Jean-Jacques de Dardel (online) and Michael Kleiner, Economic Development Officer at Geneva - Economic Development, Research and Innovation. This was followed by several speeches highlighting the various assets of Guangzhou in general and its dynamic Huangpu district in particular.

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Scene of the conference “China in 2023: a “new” normal? Impact and Outlook”

On 29^th March, at the China Europe International Business School (CEIBS) campus in Zurich, more than 100 people attended the half-day conference “China in 2023: a “new” normal? Impact and Outlook”, held just over 3 weeks after China’s annual parliamentary meetings – more commonly known as the 2 Sessions/Lianghui/两会.

Through the interventions of several handpicked experts, the objective was to take stock of China today and its evolution in the coming months and years, especially on topics of interest to Swiss companies doing business in this country.

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Scene of event on the theme “China Strategy for Swiss Businesses – what needs to change?”

On January 20^th, our annual business workshop took place with the goal to provide Swiss companies doing (or planning to do) business in China with concrete and useful tools. On the theme “China strategy for Swiss businesses – what needs to change?”, 51 people participated in this dense day, including a majority of c-level executives, representing 39 companies based all over Switzerland, from start-ups to multinationals, active in fields as varied as automation, intra logistic, energy efficiency, F&B, mobility, pharma, perfume, bedding medical, electronics, steam system, sensors, CNC machines, mechatronics or Swiss knife.

7 speakers shared their expertise, analysis and knowledge in their respective fields: Nicolas Musy, Clarisse von Wunschheim, Felix Sutter, Tomas C K, Fedor Poskriakov and Jean-Jacques de Dardel. A special thanks to the Swiss Ambassador in China Juerg Burri for opening this day with an enthusiastic speech and underlining that 2023 will certainly be "a busy year"!

Then, to provide a concrete and specific perspective to the elements discussed at the beginning of the day, OM Pharma (Pascal Schumacher), Sonceboz (Arthur RAFFARD) et KUK Group (Andreas Wild) explained their own experience and questions related to their China strategy. This allowed all participants to compare their approaches and reflect on their challenges arising from the new unfolding situation in China.

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	Events and Activities in China
	Swiss Centers Cluster at CIIE 2023 The Swiss Centers Pavilion at 6^th China International Import Expo (CIIE) is under continuous recruitment. Since the 1^st China International Import Expo (CIIE), China International Import Expo has been successfully held for 5 editions. As the official exhibition organization of CIIE in Switzerland, Swiss Centers has helped Swiss enterprises to participate in the exhibition for four consecutive years and has jointly participated in the food and consumer goods exhibition areas, with a cumulative exhibition area of more than 1,500 square meters. Swiss Centers and China International Import Expo (CIIE) joined hands to "advance" and introduced many famous Swiss brands, which accelerated the exchanges between China and Switzerland in economy, culture and trade. In the 6^th edition of China International Import Expo (CIIE), the Swiss Centers continued to organize a joint booth, and Swiss enterprises are welcomed to sign up for the exhibition. Read more Swiss Ambassador visited Swiss Centers office in Shanghai On March 24^th, we had the honor to receive an official visit from the Swiss Ambassador to China Juerg Burri, accompanied by the Consul General of Switzerland in Shanghai Sacha Bachmann and the Head of the Economic, Financial and Commercial Section Martin Matter. They were received by Nicolas Musy, founder and delegate of the Swiss Centers Board and Yulia JIN 金玉, our Deputy General Manager. It was an opportunity for us to present our core business for more than two decades, namely the concrete support to Swiss companies, mostly SMEs, to develop their business in China at their own pace through a wide range of services and thanks to the expertise of our staff. Thus, we have accompanied nearly 450 Swiss companies in this process, from the resolution of a customs problem to the establishment of their legal structure. Read more The 6^th edition of Sino-Swiss Free Trade Agreement Roundtable On February 16^th, the 6^th edition of the roundtable dedicated to the Sino-Swiss Free Trade Agreement (SSFTA) took place right next to Swiss Centers office in Shanghai Waigaoqiao Free Trade Zone. This event, which is above all practical and solution-oriented, aims at allowing Swiss companies to share with the Swiss and Chinese authorities (represented respectively by the Swiss Consulate and the Shanghai Customs) the specific issues they encounter in the application and use of the SSFTA. The goal is then to provide an explanation to understand the reasons for the issues that were presented and sometimes to provide a solution to resolve them. Read more Swiss Centers at the 12^th edition of Sino-Swiss Economic Forum in Beijing At the successful 12^th edition of Sino-Swiss Economic Forum on 19^th January 2023, Swiss Centers proudly had the privilege to take part in two distinct areas: First, during the panel discussion of "Reskilling, Reforming, Rebranding: government and companies initiatives", Amy Cho of SSAA (Swiss Nobleness Art Academy) announced the 1st edition of the SINO SWISS Dance Ambassador Competition (SSDA) of which we are the partner, firmly believing in the quality of this operation allowing to create a new bridge in the already very dense relations between Switzerland and China. As the co-organizer, Swiss Centers was interviewed by Beijing Radio and Television Station (BRTV) and Tencent Video to present this exciting project. In a completely different field, we also participated in this event as in-kind sponsors. Representing the Morand (Distillerie Louis Morand & Cie SA) and Yves Kübler distilleries, we gave the participants the opportunity to (re)discover these famous Valais eau de vie made with Williams pear and Luizet apricot and the iconic absinthe from the canton of Neuchâtel. In addition to a tasting, it was a chance for the participants to learn more about these two famous companies with a history of more than a hundred years, but which have only been on the Chinese market for a year. Read more