Oct 2024
While the 2022 and 2023 surveys tracked the unprecedented disruptions wreaked on Swiss businesses in China by the pandemic, its ensuing zero-COVID policy and abrupt re-opening, along with increasing international geopolitical tensions, The Swiss Business in China Survey 2024 provides rich new findings and insights on the postpandemic state of Swiss business in China.
Summary of Findings
The 2024 survey results may be summarized by the following key insights:
- Swiss companies have managed to weather the significant challenges of the last four years pretty well. Despite the fact that higher turnover was not matched by increased profitability, average sales growth has been positive for Swiss businesses in China.
- Survey responses on investment plans and business confidence point to continued positive views of China’s potential but a significantly more cautious approach, most probably as a result of persistent geopolitical risks and harder to achieve financial returns due to the economic slowdown.
- While the regulatory environment is seen as less of an issue, Swiss companies feel an increasing pressure to produce locally both to be locally competitive and to meet regulatory requirements.
- The already fierce competition is intensifying, particularly from local companies, due to the economic slowdown and idle capacity. Moreover,
local competitors are improving their technology, service and marketing capabilities.