Invest Beijing (hereinafter referred as IB): Generally speaking, what is the current situation of bilateral cooperation between Switzerland and China?
Commercial Counselor (hereinafter referred as CC): General speaking, the bilateral cooperation is good. The political exchange and economic cooperation between Switzerland and China are stable, and the bilateral dialogue has been good ever since. Yet there exist some disputes now, such as protection for intellectual property, fake products, both sides communicate with each other promptly and understand other¡¯s idea and stand. China is active in such field, for an example, the Minister of Commerce paid his visit to Switzerland when he attended the ¡°World Economic Forum¡± at Davos. That shows good relationship between our two countries. We highly appreciate the serious attitude of Chinese Government upon protection for intellectual property. Chinese Government is implementing legal enforcement to eliminate those enterprises which produce counter-feited products. Since those enterprises are not only manufacturing fake products of luxury consuming products of Switzerland, but other world-famous brand names and trademarks also. That is a critical harm towards healthy development of local market. We are quite clear that it is not easy at all to get rid of such illegal activity in a huge country, like China, and it needs great efforts in a long term and comprehensive attention, participation and support of the whole society, and it needs gradual build-up and improvement for legal system. Despite those annoying elements in Chinese market, it is encouraging that Chinese Government is so strongly against them. In summery, I think that it is just a small problem. In aspect of macro-economy, Chinese development is rational, and both internal and external demands are huge.
I am satisfied on bilateral cooperation between Switzerland and China. Chinese market, which is dynamic and with plenty of opportunities, has been abstracting enterprises from all over the world, including Swiss enterprises. Now there are many Swiss companies which are willing to enter into Chinese market. A worldwide heat of investment in China has been overwhelmed around the world. As a commercial diplomat working here, I have my own experiences. Frequently, Swiss enterprises would come to us for inquiry.
IB: What are the industrial characteristics of Swiss investment in China?
CC: The majority of Swiss investment in China is machinery, electronics manufacturing, chemical industry. As the investment climate in China is getting more and more matured, more banks and insurance companies will come. Generally speaking, Swiss enterprises are satisfied with their development in China, and moreover, they develop business cooperation with Chinese counterparts upon strategic consideration, either opening a representative office or establishing a factory. It is incredible to ignore Chinese market which is so huge. Neste is the flagship and symbol of Swiss investment in China. It has invested a huge amount of capital in China, and up to now, there are 12000-15000 Chinese employees working in Neste. Its main consumers are urban citizens, thus its headquarter is in Beijing. Regarding to the local situation of an integrity of chemical industrial chain, most of Swiss chemical enterprises have established their headquarters in Shanghai. Besides, two out of three major banks in Switzerland have already entered into China. Swiss Investment Bank is in Beijing and Swiss Union Bank is in Shanghai.
IB: Since the financial service industry is very strong and well developed in Switzerland, what is your suggestion on local development of financial industry in Beijing?
CC: First, the open degree and transparency of Chinese enterprises are inadequate. Usually, some Swiss enterprises come to our office for inquiry about credibility of their Chinese counterparts. Therefore, we often invite consulting firms to provide their specialized credibility report. In west countries, it is easy to get inquiry about the credibility status of an enterprise. But it is difficult to approach such information resources. You have to request a consulting firm to do such jobs. Besides, Chinese enterprises have done less than necessary in overseas propaganda and promotion campaigns. For instance, it is necessary to declare which enterprises are good and worthwhile to investment. Development of financial industry depends on government¡¯s efforts. Since, the opening of financial industry is attribute to the extent of the macro-economic climate. Chinese possess different ideas with foreigners. Chinese enterprises are reluctant to disclosure their actuality to others, so they are always trying to hide something. Certainly, we can understand that it is dangerous and out of control if the market is totally opened. It is a gradual process towards internationalization.
IB: What kind of experiences can China learn from Switzerland¡¯s development into the world financial center?
CC: In Switzerland, banking industry is private, including assets and investment management. Actually, it is a long process of development which is over several decades. Group effect would be shown if several world-famous banks are operating in one country. Usually, it provides a strong image that the banking industry is well developed and trustworthy. By the way, that is my person understanding. I am not an expert of banking.
IB: What is the impact of consuming taxation policy promulgated on April 1 towards Swiss enterprises?
CC: In Switzerland, the uniformed taxation is levied, either common commodities or luxury commodities. The newly promulgated taxation policy in China would impose some impact on Swiss products, especially watches. It might be that Chinese consumers will buy luxury watches in foreign markets, not in domestic market. Frankly speaking, we are not feeling good that luxury watches are listed in the new taxation catalogue since there are so many luxury items. In Switzerland, there is no prejudiced tariff levied upon the products of Lenovo, a huge multi-national corporation, yet they are really cheap. Off course, we understand that Chinese Government is trying to harmonize and smoothen social contradictions by way of taxation. China is aiming at harmonious society.
IB: What Olympic projects have Swiss enterprises participated?
CC: A Swiss enterprises has won the tender of designing of Bird Net, the National Stadium. The name of that enterprise is entitled as the designer of Bird Net. Some Swiss enterprises also participated in construction of some other Olympic venues.
IB: What is your vision on future development of Beijing Municipal according to the newly promulgated ¡°11th Five-Year-Plan¡± ?
CC: Since the promulgation of ¡°11th Five-Year-Plan¡±, the function of Beijing Municipal will be changed. Industrial development will be adjusted accordingly. We have full confidence of Beijing¡¯s future development and hope to participate in the process of urban construction and industrial development.
