Switzerland and China,Pioneering Partnership

By staff reporter SEBASTIAN ROUSSILLAT

SWITZERLAND was among the first countries to recognize the Peoples Republic of China. In January 1950， a telegram sent to the Chinese government announced that Switzerland would form a relationship with the new China. This year marks the 65th anniversary of diplomatic relations between the two countries.

“I think the Chinese have been greatly influenced by the fact that we were present very early in the nations modern history，” said Jean-Jacques de Dardel， Swiss ambassador to China， who has been in office for two years.“Switzerland enjoys a good reputation in China， so the relationship is intrinsically easier. This has also helped develop our cooperation，” he added.

Why did Switzerland choose to recognize a country that was not recognized by most major Western countries until 20 years later？ “Generally speaking， Switzerland is open and willing to broaden its horizons. Switzerland understands that social systems may differ， and governments may be different， but we are all part of the international community，” de Dardel said. A pioneering spirit is the key to China-Switzerland relations.

Pioneering Spirit

Since the 1960s， Switzerland and China have developed exchanges in culture and education. Throughout the 1970s， the two countries further enhanced their communication. Zurich hosted a Chinese exhibition in 1979 and became the first Western city to set up a sister-city relationship with a Chinese city， Kunming.

Switzerland and China also established an early dialogue on human rights at Chinas request.

Moreover， in the economic field， two nations have achieved many firsts. “In 1980， we established the first joint venture ever between a Chinese enterprise and a Western company，” the ambassador said. In 2007， Switzerland recognized Chinas market economy status. On July 1， 2014， the free trade agreement （FTA） signed by China and Switzerland came into force， the first FTA between China and a Western country.

Trade and Innovation

Sino-Swiss trade verifies the two nations mutual importance. “China is our third and fourth largest partner for imports and exports respectively. This year， Switzerland ranked 7th on Chinas supplier list，” Mr. de Dardel said.

Chinas economic development is steady and strong， and so is Switzerlands purchasing power. According to the ambassador， Swiss products attract Chinese consumers for their high quality. However， there is still an economic slowdown between the two nations. Trade cooperation between Switzerland and China is， traditionally， full of ups and downs.

“In 2009， our combined trading volume was about US$10 billion. The figure last year skyrocketed to about US$45 billion， an amazing growth rate. And that was before the implementation of the FTA. In 2013， we reached almost US $60 billion according to Chinese statistics. In general， our trade transactions are seeing a growing trend，” de Dardel said.

Switzerland， as the most innovative country in the world， is attractive to the Chinese. The two countries have carried out many exchanges， particularly in the area of development assistance， infrastructure， and innovation.“There are 1，000 Swiss companies in China， employing 200，000 people. These companies offer advanced Swiss technologies in various fields， such as infrastructure construction. Besides， we realize academic exchanges in different aspects， especially environmental protection， which is a strong point in Switzerland. We are helping China to build low-carbon cities. Chinese people are eager for innovation and strive to match Switzerlands achievements in this regard. They believe there are many things to exchange with and learn from us. They are interested in institutional innovation， and also encourage enterprises to cooperate with us，” de Dardel said.

FTA Stimulates Cooperation

The FTA between China and Switzerland was signed in July 2014. While official statistics are not yet available， de Dardel believes the agreement is bound to have positive effects. The influence of the FTA may not have an instant effect. Before the FTA， Chinese products were exported to Switzerland free of customs tariffs.

Some observers claim that the agreement allows inexpensive Chinese products to flood the European market， and that Switzerland will have a large slice of the pie of Chinas trade in Europe. According to de Dardel， European countries generally want to develop trade contacts with China， and China also wants a closer relationship with Europe. Switzerland offers preferential policies to Chinese private enterprises. The current challenge is to promote trade but not circumvent European regulations.“I do not believe that the intention of the Chinese is to circumvent any expenses； their interest is much more strategic and broad-minded，” de Dardel said.

“Signing an FTA with China does not mean that Switzerland will violate the regional regulations. Switzerland and the EU have strict rules， and this will not change，” he added.

The FTA， in addition to reducing tariffs and tariff provisions， allows exchanges in culture， the environment， and innovation. It is also coupled with a labor agreement， something often overlooked by most people. In fact， it is not a single agreement， but two agreements. These two agreements naturally constitute a contribution to bilateral relations， but also promote Chinas foreign relations.

The pioneering agreement has certainly helped other countries and organizations to take the plunge， Australia and South Korea having signed FTAs with China this year.

Potential Tourism Cooperation

Another huge demand of the Chinese is that of tourism. Switzerland is a popular destination for holidaymakers. Chinese people represent one fifth of foreign tourists in Switzerland. “Some 1.2 million Chinese tourists visit Switzerland annually， and we expect this figure to grow and grow，” the ambassador said.

Tourism cooperation between China and Switzerland is nothing new. Thirty years ago， China already showed great interest in Swiss expertise， hoping to learn how to develop tourism from Switzerland. “Historically， the Chinese have this outlook： The Swiss can help us in this area，” Jean-Jacques de Dardel said.

Another area related to tourism that attracts the Chinese is winter sports. With the candidacy of Beijing and Zhangjiakou for the next Winter Olympics， the Chinese will be increasingly interested in this field. Winter sports are booming in China， and Switzerland， a country known for snowy mountains and ski resorts， certainly has a lot of advice and expertise to offer， the ambassador concluded.