Swiss Ambassador to China Luo Zhiyi: Travel restrictions increase corporate investment concerns, and the Sino-Swiss FTA continues to promote bilateral cooperation

21st Century Business Herald reporter Shu Xiaoting and intern Zhang Yahan Beijing reported that on the evening of October 21, the fifth Sino-Swiss Business Award, which is held every two years, was held in Beijing. Speaking at the award ceremony, Swiss Ambassador to China Luo Zhiyi said: "Recent climate events and energy crises in China and other parts of the world demonstrate the importance of taking a sustainable development path. This year's Sino-Swiss Business Awards focus on sustainable development, which is timely and necessary. ”

Between the day's activities, Luo Zhiyi was interviewed by 21st Century Business Herald. The following is a transcript of the conversation.

<h4>China's business environment remains attractive</h4>

21st Century: This year's Sino-Swiss Business Awards focuses on "sustainable development". How do you understand this concept? How can companies practice "sustainable development"?

Luo Zhiyi: Sustainable development is a common challenge facing the world, including every country, society and enterprise. It's no surprise that this year's awards are themed around sustainability. To cope with the challenges posed by biodiversity or climate change, it is not enough to rely on the strength of governments, but relevant stakeholders and enterprises need to propose emission reduction solutions, propose technological solutions, and reflect environmental protection in the entire industrial chain and value chain, thus helping countries to achieve the goal of reducing carbon emissions.

21st Century: Since you have been Swiss ambassador to China for more than two years, can you talk about your impression of China and your evaluation of China's business environment?

Luo Zhiyi: For a big country like China, it is difficult to describe it with a single impression. In terms of business environment, Swiss trade with China and export data to China in 2020 are better than in 2019; in the first quarter of 2021, Swiss imports from China increased by 22%, and exports to China increased by 14%. Judging by the performance of the data, I think China's business environment remains attractive.

<h4>Travel restrictions during the pandemic have created investment concerns</h4>

21st Century: In the context of the ongoing global COVID-19 pandemic and the undesolved bottlenecks in the supply chain, what challenges do you see Swiss companies facing in China?

Luo Zhiyi: First of all, travel restrictions create investment concerns. Businesses are unlikely to make strategic decisions about whether to invest further based on video conferencing, but instead need to have face-to-face interactions with partners, so new investments may be held on hold. Second, the inspection of new products is blocked. For example, technicians in China need to travel to Switzerland to learn about the company's new products, and the current COVID-19 situation makes it more difficult to achieve.

It should be noted that SMEs are an important pillar of Swiss economic development, and the same is true for China. These companies are more vulnerable to the uncertainty of the COVID-19 pandemic.

"21st Century": This year marks the 71st anniversary of the establishment of diplomatic relations between China and Switzerland. What are the highlights of bilateral relations between the two countries? What are the prospects for the future?

Luo Zhiyi: I think China and Switzerland maintain good bilateral relations. Despite the impact of the COVID-19 pandemic, we celebrated the 70th anniversary of the establishment of diplomatic relations between China and Switzerland last year. Looking back at history, in 1980, Swiss companies and Chinese parties established the first Sino-foreign joint venture industrial enterprises; in 2013, China and Switzerland signed a free trade agreement. The agreement provides good support for trade exchanges between the two countries and continues to promote future bilateral cooperation.

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