A History of Engagement

Switzerland was among the first western states to recognize the People’s Republic of China (PRC) in 1950. Since then, bilateral relations have deepened in all areas, especially after the PRC introduced policies that facilitated the opening up of the country for foreign investment during the early 1980s. The relations and engagements of our two countries now cover numerous fields including politics, human rights, trade and investment, finance, the labor market and employment, science and technology, education, the environment, and culture.

When the Swiss Federal Council decided to recognize the PRC in 1950, the decision was guided by a desire to enhance relations between Swiss businesses and citizens and their pre-existing contacts and engagements in trade, society, and diplomacy—relations that were first formed during the Qing Dynasty.

Switzerland and China are different in many ways: from the sizes of their population and territory to their political, societal, and economic systems. But on a person-to-person level, there has always been mutual interest in many issues. The Swiss and the Chinese have continuously contributed to each other’s development; learned each other’s languages, made friends, founded families, and traded and worked together. This is nicely illustrated in a new book published in 2023 by the Consulate General of Switzerland in Guangzhou, which paints a picture of the activities of Swiss citizens and companies residing in the Pearl River Delta over the past 100 years.

Throughout the last 40 years, as China has undergone a tremendous transformation, there has been a boost in interest from both Switzerland and Swiss companies, and they have actively taken part in this development. Some milestones that deserve particular mention include:

  • Establishing the first Joint Venture of a Chinese and Swiss company in 1980 (Schindler elevators)

  • The first western recognition of China as a market economy in 2007

  • The first European state to bring into force a Free Trade Agreement with China in 2014

As a next step, in 2016 Switzerland and China chose to categorize their relationship as an “innovative strategic partnership”. Finding additional ways to develop bilateral ties is at the core of the Sino-Swiss relationship. As such, the two countries decided to establish more than two dozen intergovernmental dialogues where strategic and technical discussions could take place. For the main Strategic Innovation Dialogue, exchange is coordinated on a ministerial level, which allows for all topics to be included. Two highlights of this renewed relationship with China worth mentioning were Chinese President Xi Jinping’s official visit to Switzerland in January 2017 and Swiss President Ueli Maurer’s official visit to Beijing in April 2019.

The Swiss government adopted its “China Strategy 2021–2024” in March 2021, which outlines Switzerland’s Foreign Policy Strategy with respect to the PRC. China is the only country where bilateral engagement constitutes such a high level of priority that it requires the attention of a specialized policy strategy by the Swiss government. It shows just how much importance the Swiss government attaches to its country’s relations with China.

Switzerland has continuously built up its diplomatic presence in China and today has an Embassy in Beijing, as well as Consulates in Shanghai, Hong Kong, Guangzhou, and Chengdu. The Consulate in Shanghai has been upgraded with a science office, known as “Swissnex”, to promote cooperation in science and education. Switzerland Global Enterprise is also present in China with a Swiss Business Hub integrated into the diplomatic network. Swiss companies are connected through a Swiss Chamber with Chapters in Beijing, Shanghai, Hong Kong, and Guangzhou. Furthermore, Switzerland Tourism is in China promoting Switzerland as an attractive travel destination in yet another network. And also Pro Helvetia runs a culture office in Shanghai.

In 2020, shortly before the global pandemic began, we celebrated the 70th anniversary of diplomatic relations. The Speaker of Swiss Parliament visited the PRC on January 17, the same day as the official recognition back in 1950. Today, we face the challenge of reactivating the positive relations we have built over the past 70 years following three years of very limited interaction. Almost 3000 Swiss citizens live in China today, a number that has considerably reduced as a result of the strict Covid policies. We hope to see a reconsolidation soon now.

Shared Commitment to Sustainable Growth

Trade and Investment

In 2010, China became Switzerland’s most important trading partner in Asia. And it has further consolidated this position as Switzerland’s third biggest trading partner after the USA and Germany—and higher than other large neighboring countries such as France or Italy.

Over the last 10 years, the value of goods that have found their way from Chinese manufacturers to Swiss homes and businesses has nearly doubled. At the same time, Swiss products exported to China have risen from a total value of roughly 7.4 billion Swiss francs in 2012 to a value of nearly 15.9 billion Swiss francs in 2022. It is evident that the Free Trade Agreement of 2014 has contributed substantially to this rise.

At the same time, it is important to keep in mind that goods are just one part of the equation. Since the establishment of the Free Trade Agreement, trade in services between Switzerland and China has risen by more than 47%. Swiss foreign direct investment has continued its positive trajectory, gaining an additional five billion Swiss francs over the same period. Swiss companies have integrated China into their value chains and established hundreds of subsidiaries to manufacture goods for local consumption and export, as well as to conduct research and development and to offer maintenance, training, and other services. For Switzerland, openness to trade and access to international markets is the basis for economic growth and general welfare. This has been demonstrated by the growing number of Swiss companies trading in and with China. Today, practically every international company in Switzerland has important stakes in the Chinese market.

One recent development is the launch of the China–Switzerland Stock Connect program, which includes listings of the Global Depository Receipts of Chinese companies on the Zurich Stock Exchange. This may become an important form of cooperation with a view to also placing GDRs of Swiss companies on the stock markets in Shanghai and Shenzhen.

Sustainable Development

The United Nations’ 2030 Agenda for Sustainable Development states: “International trade is an engine for inclusive economic growth and poverty reduction and contributes to the promotion of sustainable development.” To fully harness its potential, international trade has to positively contribute toward sustainable development and enhanced policy coherence at a national and international level are key requirements. To help achieve this objective, Switzerland is committed to including provisions governing the social and environmental aspects of trade in all its free trade agreements, including the existing one it has with China. As part of this process, we believe Sino-Swiss economic relations can offer interesting perspectives and become even more relevant.

The past years have brought about many developments that impact not only the Sino-Swiss relationship, but the global community as a whole. China and Switzerland have both begun to see more clearly the effects of pollution, climate change, and other environmental risks, as well as rising tensions in international politics, accelerated digitization, and global health crises including the most recent COVID-19 pandemic.

Sustainability of business is an important topic that is already being addressed through Sino-Swiss relations. Switzerland was an early mover promoting projects that support China’s green transformation. Today, these projects focus on sustainable energy, zero emissions, and other topics that are managed by the International Cooperation Office at the Swiss Embassy.

Addressing developments in the markets toward more sustainable products requires corresponding changes in the world of business too. Many Swiss companies have made this step and today operate at the forefront, making product sustainability a key asset equal to quality, innovation, and price. They are responding to the greater interest of consumers in the conditions under which goods and services are produced, and governments strongly support this trend of responsible and sustainable business conduct.

Travel and Exchange

Switzerland is a beautiful country that prides itself on its natural environment and welcomes a large number of visitors as a result. Much like China, Switzerland believes that clear rivers, lush green hills, and snowy mountains are deserving of the utmost attention. We therefore use our high standards of environmental protection as a selling point for people to visit Switzerland, and we have received positive responses for this approach among the Chinese travel industry and the public.

Cooperation Through Science and Education

In 2003, the Sino-Swiss Science and Technology Cooperation program was established and today over 250 agreements between Chinese and Swiss public universities form the backbone of our scientific cooperation. One of many interesting projects is the research conducted by scientists from the Federal Institute of Technology in Lausanne (EPFL) and the Huazhong University of Science and Technology (HUST) on Perovskite solar cells. These high-performing solar cells have the potential to make solar energy more accessible and affordable, contributing to the future of cleaner energy.

Many Chinese students choose to study at internationally renowned Swiss universities. There are approximately 3000 Swiss university alumni in China who have actively organized themselves into a network of large chapters all across China, maintaining regular contact with Swiss institutions and companies. And many more have chosen to study in Switzerland, with around 3000 Chinese students entering the lecture halls of Swiss institutions every year.

Swiss students, albeit fewer, are likewise keen to discover China and have sought to do so even when pandemic measures made such endeavors almost impossible. Student contacts are crucial for creating a better understanding between countries and are essential for lively relations. It is therefore important that we can begin to grow the Swiss student population again in China now that travel restrictions are being lifted.

Switzerland is also happy to cooperate with China on vocational and professional education and training (VPET). Common projects in this area can help address current and future challenges, such as youth unemployment and talent development. Like in Switzerland, Swiss companies in China are in the driver’s seat when it comes to implementing VPET. Companies such as ABB, George Fischer, Schindler, and many more have been cooperating with Chinese vocational schools on a variety of projects over the past years. In the area of teacher training, the Swiss Federal University for Vocational Education and Training holds regular training sessions together with Chinese stakeholders on the national and provincial level. A special achievement thanks to cooperation in this area was the recent “White Book on VPET” issued by the Sino-Swiss Chambers of Commerce.

Neutrality as a Core Swiss Value

China is playing an increasingly important role in international diplomacy, and so regular, high-level exchanges are very important to Switzerland. Since the establishment of bilateral relations in 1950, Switzerland and China have built a number of mechanisms to support exchange. We cultivate high-level contacts with China, not only in the dialogues described above, but also through consultations in international forums, including the sidelines of the World Economic Forum, multilateral contexts, or other informal settings organized in cooperation with think tanks. It is a Swiss principle to address all our issues of concern with our Chinese partners, such as trade policies or human rights, in multilateral and bilateral contexts.

Especially in times of geopolitical tension and polarization, Switzerland believes in the rule of law, international law, multilateral mechanisms, and promoting dialogue on all levels. The Swiss have a proud tradition of bringing different sides together in peaceful dialogue and acting as a bridge in seemly impossible situations. Fostering international dialogue remains a central and highly visible part of Swiss foreign policy. Based on its neutral position, Switzerland takes no sides in any geopolitical bloc, but always advocates respect for international law and universal rights. On the one hand, adhering to the law of neutrality means that we do not take part in military conflicts. On the other hand, the policy of neutrality means Switzerland is actively engaged in promoting peace and stability. Fully in line with the slogan of our current UN Security Council membership, we stand behind the notion that our country constitutes “A PLUS for Peace”. Being a member of the Security Council also opens new space for discussion and cooperation with the Chinese delegation representing the PRC during the two years of our term.

Neutrality does not mean that we do not stand up for what we believe in. Quite the opposite: Switzerland advocates a strong rules-based international order and an effective multilateral system committed to international law, human rights, the rule of law, and the promotion of democracy. In a conflict, and if requested by the parties, Switzerland is always ready to offer good offices. As a host state for many UN organizations, Switzerland also has a great interest in strengthening Geneva as a platform for equitable multilateral diplomacy.

To better understand this nuance between the law of neutrality and a policy of neutrality, one may look at the international armed conflict between Russia and Ukraine. Russia’s military aggression against Ukraine is a serious violation of several of the most fundamental norms of international law. To credibly stand by our promise to be a force for peace and stability, actions had to be taken, such as following the EU’s approach of imposing sanctions against Russia. The Swiss government used its political room to maneuver within the bounds that the law of neutrality allowed and adopted sanctions that were already levied by the EU. Yet, Switzerland has not allowed any exports of Swiss-made armaments to any of the warring parties—either directly or by third countries.

The Future of Sino-Swiss Relations

The ties between Switzerland and China have proven to be very fruitful and stable, guided by a pioneering spirit and pragmatism. Switzerland also has a strong stance in defending its interests and values. We strongly believe in open dialogue as a tool and offer cooperation on bilateral and multilateral issues. These dialogues have been negatively impacted in recent years due to limited travel, but we hope they will now fully resume and gain further substance.

Switzerland and China have better trade and engagement with each other today than ever before. These strong relations go back for decades and are now complimented with promising new prospects, such as cooperation in finance and a focus on sustainability.

On political issues, Switzerland will always strive to remain a credible advocate for multilateralism, peace, stability, and respect for universal rights. Given these factors, China will continue to find a partner in Switzerland that will respectfully, sincerely, and openly work toward mutual understanding and strive to lay the groundwork toward better cooperation. China and Switzerland have a lot to offer each other in the coming years of international cooperation. Trust and mutual understanding are key. Therefore, we need to keep fostering exchanges, whether at a political level including on topics such as human rights or an economic, academic or cultural one. This exchange creates an advantageous environment for the Sino-Swiss relationship to reach new milestones.

The coming years will bring landmark events, such as the 10th anniversary of the Free Trade Agreement coming into force (2024), the 75th anniversary of Diplomatic Relations (2025), and the 10th anniversary of the Founding of the Innovative Strategic Partnership (2026). These will be opportune moments to reflect on what we have achieved and to consider the milestones that lie ahead.