Swiss synergy(3)

New frontiers

The grim economic situation in many European countries has continued to highlight the importance of strong Swiss-Chinese economic links, says Ueli Maurer, president of Switzerland.

"We will always be anchored in Europe, and the economic trends in Europe will always have a strong influence, but the trade with China is very valuable, and it gives us more stability. This is all the more important when things do not go well in Europe."

Switzerland's economic exchanges with China are set to increase rapidly in the future.

Exports from Switzerland to China increased by 18.4 percent in 2011, while imports from China rose by 2.3 percent. Even though trade with the Chinese mainland represents less than 5 percent of Switzerland's global trade (above 7 percent when including Hong Kong), this figure is steadily increasing.

Figures from the Swiss embassy in China show that Switzerland's direct investment in China has soared from 1.824 billion Swiss francs ($1.86 billion; 1.52 billion euros) in 2010 to 4.554 billion Swiss francs in 2011, raising the stock of investments to 12.559 billion Swiss francs.

At present about 400 Swiss companies are established in China with 900 branches, contributing to growth and job creation in China.

The multinationals from Switzerland can boast of continuous success as China's urbanization and industrialization gather pace.

Nandu Nandkishore, executive vice-president of Nestle SA, says over the past decade, the company's business in China has seen a two-digit growth, and in 2013, China will become Nestle's second biggest market after the US in terms of sales and revenues.

Nandkishore says the acquisition of Chinese food brand Yinlu and candy company Hsu Fu Chi in 2011 have greatly boosted Nestle's business in China.

"These two companies have good values, products, financial returns, brands and people, and so we have done quite well," Nandkishore says, adding that Nestle will invest more.

He says China's population is aging rapidly and his company will also focus on nutrition products for older people.

Joseph Hogan, chief executive officer of ABB Ltd, the Switzerland-based power and automation technology company, says the ultra-high voltage direct current (UHVDC) transmission is being increasingly deployed by China to efficiently transport large amounts of power across vast distances to areas of need with minimal loss.

UHVDC is a technological development of HVDC, pioneered by ABB nearly 60 years ago, and is the biggest leap in transmission capacity and efficiency in more than two decades.

Hogan says China is in the process of building up Smart Grids within its 12th Five-Year Plan (2011-15). There will be several ultra-high voltage projects every year and ABB is further improving its local capability in UHV and working closely with Chinese customers to jointly address new technical challenges.

Mario El-Khoury, CEO of Swiss Center for Electronics and Microtechnology, says his organization is eager to work with Chinese organizations to create a vehicle that will be used by Swiss and Chinese enterprises to create commercial links.

"This model has been successfully demonstrated in cooperation with other countries in Europe, and also in Brazil," El-Khoury says.

According to El-Khoury, CSEM's affiliate company in the United Arab Emirates is developing the use of thermal energy from waste heat, alone or in combination with solar energy, to develop competitive solutions for cooling, water desalination and generating electricity.

It also launched a specific photovoltaic division dedicated to the transfer of academic research results to the solar equipment industry.

"All these areas should be quite attractive in China when we talk about environmentally friendly technologies," El-Khoury says.

Michael Berg, senior scientist on drinking water quality at the Swiss Federal Institute of Aquatic Science and Technology, has been working with Chinese partners on monitoring water quality and wastewater treatment for years.

Berg says in the 1950s and 60s, Switzerland and Europe faced critical problems relating to surface water quality and they have gathered much experience in monitoring water quality.

"In China, financial means are available to improve waste water technology and there are great opportunities in bilateral cooperation," says Berg.