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Reader's Digest, June 12th - 21st

BILATERAL RELATIONS Swiss Meat Processing Firms Obtain Licence to Export to Published by admin.ch, June 14th 2019 Federal Councillor Guy Parmelin, the head of the Federal Department of Economic Affairs, Education and Research EAER, met Vice Minister Zhang Jiwen from China’s General Administration of Customs during a working visit to Bern on June 14th. The meeting focused on exports of Swiss pork products to China and the deepening of technical cooperation. During his visit Vice Minister Zhang Jiwen announced the registration of five Swiss meat processing firms. Registration is a prerequisite for exporting pork products, popular delicacies in China. China is an interesting export destination for high- quality Swiss food products. In order to be able to export these products, they must meet the legal requirements of the importing country. Firms wishing to export therefore have to complete registration and inspection procedures. The successful registration of meat processing firms is the result of cooperation between the firms concerned, the Federal Food Safety and Veterinary Office FSVO, the cantonal executing authorities, the State Secretariat for Economic Affairs SECO, and the relevant Chinese authorities. This cooperation was intensified following the entry into force of the free trade agreement between Switzerland and China in 2014. Free trade agreements improve market access for Swiss products, which are also beneficial for foodstuffs and agricultural products.

SWISSTECH: Switzerland Showcases Value Creation through Innovation at CES ASIA 2019 Published by yahoo.com, June 13th 2019 CES Asia 2019, the largest consumer electronics show in Asia with over 46,000 visitors and 500 exhibiting companies, was held from June 11th to 13th at the Shanghai New International Expo Center (SNIEC). In the primely-located 300- square-meter #SWISSTECH Pavilion – the largest country pavilion at CES Asia 2019 – 22 leading Swiss startups from areas including IoT, Robotics, Drones, Virtual Reality (VR), Augmented Reality (AR), HealthTech, SportTech and Blockchain showcased their latest innovations. Outperforming the success of 2018 when four of the seven participating Swiss startups had claimed innovation awards, six of the 22 startups received innovation awards this year in categories such as Robotics, GreenTech, Health and AI. Once again, the pavilion was a symbol of Swiss excellence in technology and innovation. On June 11th, Bernardino Regazzoni, Swiss Ambassador to China, and Gary Shapiro, CEO of Consumer Technology Association which organizes CES, cut the ribbon to inaugurate the #SWISSTECH Pavilion and delivered an opening speech. “Switzerland remains as the world’s most innovative country for the eight years in a row. One reason behind this is the vision of Swiss entrepreneurs and pioneers such as those present here at CES ASIA,” Ambassador Regazzoni said, “In the next few days, you will experience the power and dynamism of China with over 1.4 billion potential consumers. The #SwissTech Pavilion will give you the unique access to experts, investors and entrepreneurs in China.” During his visit, Ambassador Regazzoni also met with the representatives of each startup and exchanged valuable perspectives on the latest technological developments.

BUSINESS NEWS Chinese Firm Buys Swiss Office Furniture Maker Published by opi.net, June 17th 2019 Switzerland-based office furniture company Lista Office Group (LO) was recently acquired by Chinese manufacturer Zhejiang Henglin Chair Industry (Henglin). LO said the sale forms part of its international expansion and growth strategy, with its Leinhard family owners having been looking for some time for a strategic partner. After talks with a number of companies from the US, Europe and Asia, they opted for the offer from Henglin, a firm established 20 years ago by the Wang family and now publicly listed on the Shanghai Stock Exchange. Henglin is a major exporter of office chairs and employs around 3,000 staff. It has reportedly been looking to develop its manufacturing infrastructure outside China in an attempt to minimise the impact of trade tariffs imposed by the US and now it has established a foothold in Europe. LO has two manufacturing sites in Switzerland, around 330 employees and annual sales estimated to be in the region of CHF100 million (USD 100 million). The company can trace its origins back to 1945 when young engineer and entrepreneur Alfred Lienhard started a garden furniture and steel products company. Leinhard’s granddaughter, Franziska Lienhard Nava, is currently the group’s chairwoman.

Switzerland’s Drone Ecosystem Seeks Opportunities in China Published by globaltimes.cn, June 17th 2019 Startups in the drone sector from Switzerland are looking for more business opportunities and partners after their initial cooperation with some distributors in China, which is yet to unleash huge potential through the skilled workforce. EBP, a family enterprise which focuses on river basin management, has set up a representative office in , South China's Province. The global company is applying drone technology to water pollution control. "Southern China's economy is very dynamic, and more flexibility and openness are offered in Shenzhen," Rao Fu, an environmental engineer with EBP, told the Global Times. "It's harder to access the water and the environment management market as they're strictly regulated by the government," Fu said, Shenzhen attracts many skilled workers or experts, it is an ideal city to build a brand in China, she added. Cao Likai, 29, a Tsinghua alumni, recently joined EBP's Shenzhen office, after attending a one-year exchange program in Switzerland as a water engineer. Fu finds China's opening-up policies will offer more promising business opportunities. "China is leading in several segments of the drone market, including engineering and production of drones. Switzerland's pioneering role in several niche segments, such as in the area of sensors and analytics, complements the strengths of China, creating unique opportunities for commercial and R&D collaboration," said Swiss Ambassador to China Bernardino Regazzoni, at Swiss Innovation Week 2019 on Friday in Beijing.

WISeKey Reinforces its Penetration in China Technology Market as its Root of Trust Gets Accredited by 360 Security Browser to Provide Trusted SSL Services in China Published by yahoo.com, June 12th 2019 WISeKey International Holding Ltd, a leading cybersecurity and IoT company today announced the recognition issued by 360 Security Browser, the Chinese lead Internet Browser, of its Trust Services and SSL Digital Certificates. WISeKey is a worldwide leader in Digital Identification, with over 20 years of expertise in PKI, IoT and Identity Management. WISeKey operates the OISTE Foundation Root of Trust (RoT). OISTE’s RoT providing a trust anchor for digital identities of individuals, businesses, governmental bodies and interconnected objects worldwide. The OISTE/WISeKey trust services are recognized by all operating systems (OS) and applications like internet browsers or email applications, to ensure the authenticity, confidentiality and integrity of on-line transactions. In order to protect the Internet of Things, the Root of Trust is also embedded in connected devices, to secure the interactions among objects and between objects and business applications. Now this ecosystem is further enriched by the accreditation of the RoT, issued by 360 Security Browser. 360 Security Browser is the leading internet browser solution in China, with an estimated user base superior to 400 Million active users, and a market penetration close to 70%, according to CNZZ. 360 Browser is produced by the company Qihoo 360 and has a strong focus on security, combining antivirus and other features to secure the internet connections.

CULTURE & SOCIETY Swiss Girl’s One-Year Experience in China Published by eastday.com, June 14th 2019 Lea Marie Hauswirth is a Swiss student who came to Shanghai last August to participate in the American Field Service (AFS) Intercultural Programs. For her, visiting China fulfilled her greatest dream and has given her memories she will cherish for the rest of her life. She studies in the Shanghai Pudong Foreign Affairs Services School and has been living in a local family’s home for ten months. It is the first time she has lived so far away from her home and also for so long, so she was a little nervous on her departure. However, after arriving the attraction of a new world made her rapidly forget all her fears. Since her first day in China, Lea realized the wideness of the cultural exchange. Soon after her arrival in Shanghai, she met her host family who were so generously welcoming to her. And, in fact, it was in those first days that she also met all the other exchange students coming from around the world, with whom she later made two cultural trips to Yunnan and Xi’an. School has been the biggest part of Lea’s exchange in China. There, she has learned the language, made Chinese friends, and experienced the daily life of Chinese students. At the beginning, she couldn’t understand anything in the classes, but after some months’ communication with the locals and her diligent work in studying Chinese, she has been able to follow and take part more and more in the class. This was of course very satisfying and motivating!

GENERAL INTEREST Millionaires in Switzerland Still on the Rise Published by swissinfo.ch, June 20th 2019 Switzerland is home to the fourth-largest number of dollar millionaire households, according to a report by the Boston Consultancy Group (BCG). Worldwide, the number of such millionaires continues to rise. There are now some 500,000 millionaire households in Switzerland, BCG said, putting the Swiss in fourth place behind the US (around 15 million), China (1.3 million), and Japan (1.1 million). This marks a steady growth of riches in Switzerland: in 2016 the number of millionaire households was 358,500, according to another consultancy firm – seventh worldwide. Other reports have consistently shown that the numbers of “multi-millionaires” (with wealth of USD 5 million or more) are also rising, while Switzerland continues to enjoy the highest mean wealth of anywhere in the world.

INDUSTRIES ENGINEERING / MANUFACTURING

Zone Breaks Ground on New Healthcare Park Published by chinadaily.com.cn, June 19th 2019 Weifang Hi-Tech Industrial Development Zone celebrated the groundbreaking of a healthcare industrial park with a total investment of CNY 3.85 billion (USD 555.94 million) on June 12th. The industrial park, also known as the Small Town of Healthcare in the zone, is a joint project of consumer products manufacturing giant Procter & Gamble and Guangzhou- based personal care product maker Jofo Group. The annual industrial output value of the park is expected to reach 30 billion yuan upon completion, according to the zone's officials. "We have many people in Cincinnati that have been working on this project for many years," said Jeff Darner, chief engineer of P&G Group. "They are all excited that this project is going to take place in this wonderful facility." Zhao Minzhong, chairman of Jofo, said the zone's top-notched services and good business environment were keys to attracting the company to the zone. Jofo will build a joint research and development platform in the zone with P&G to strengthen new materials development. It will also build a nonwoven materials production line. Zhao said the industrial park also allows Jofo to strengthen its partnership with leading companies such as Switzerland's Oerlikon Group.

DKSH Partners with Renowned University to Open Joint Food Application Innovation Center In China Published by dksh.com, June 10th 2019 DKSH’s Business Unit Performance Materials, a leading ingredients and specialty chemicals distributor, and China’s Shanghai Institute of Technology (SIT) have signed a cooperation agreement for a joint, dedicated food application innovation center in Shanghai. The facility provides formulation advice, technical support, product development and benchmarking, multiple prototypes and quality checks. The center’s extensive equipment, combined with the in-house application and formulation expertise allows the wide range of DKSH additives and ingredients to be tailored to the customers’ demands of the beverage, dairy, confectionery and nutraceutical industries. By working with Chinese customers on new formulations and prototypes, DKSH enables faster time-to-market for the innovative ingredients developed by DKSH’s key clients. Ben Hopkins, Vice President, Global Food & Beverage Industry, DKSH said: “Today’s food and beverage market in China is extremely dynamic and clearly “premiumizing”, i.e. trying to appeal to consumers by underlining the superior quality and exclusivity of products. Therefore, innovation is key. We are pleased to start the cooperation with SIT to accelerate the technical support for our customers, in line with their fast-evolving needs.”

BANK / FINANCE / INSURANCE

Credit Suisse Gets Closer to Real Alibaba Trophy Published by nasdaq.com, June 12th 2019 Credit Suisse is getting closer to the real Alibaba prize. The internet giant has picked the Swiss bank, along with its part- owned Chinese peer China International Capital Corp, to lead a Hong Kong share sale worth up to USD 20 billion, according to sources familiar with the matter. Both institutions have largely steered clear of Alibaba rivals, suggesting their loyalty is being rewarded. They are now positioned to contest a bigger prize: USD150 billion Ant Financial's eventual initial public offering. Credit Suisse ranks above the rest. It hasn't worked on major Tencent-related acquisitions or equity capital raisings since Alibaba went public, according to Dealogic. It missed the 2018 blockbuster USD 4.2 billion float of Meituan Dianping, which the tech behemoth competes with in food delivery, and this year's IPO of Maoyan Entertainment, which, like Alibaba Pictures, sells cinema tickets. Taking e-commerce upstart Pinduoduo public was a notable blip, perhaps salvaged by its absence from a large follow-on offering. CICC has been almost as dedicated. Alibaba does, though, own almost 12% of its Hong Kong shares. Of course, some omissions may not have been voluntary, and strained relations between Washington and Beijing may have favoured non-U.S. rivals, especially for a Hong Kong listing.

HOSPITALITY / TOURISM / RETAILS

Omega Launches Pop-Up on Tmall Luxury Pavilion Published by alizila.com, June 17th 2019 Swiss watchmaker Omega is reaching out to Chinese customers via e-commerce for the first time, launching a virtual pop-up store on the Tmall Luxury Pavilion, Alibaba Group’s dedicated site for luxury and premium brands. From June 15th to August 7th, Omega will use the pop-up to hold pre-sales for its new “Seamaster Aqua Terra Beijing 2022” limited- edition wristwatch exclusively for Pavilion shoppers, giving them a chance to buy the watch before it hits brick-and-mortar stores across China on August 7th. Omega has created just 2,022 of the watches in tribute to the next Olympic Winter Games, to be held in Beijing, as well as to celebrate its long-standing role as the Official Timekeeper of the Olympic Games. Omega’s pop-up launch comes as Alibaba’s 6.18 Shopping Festival is seeing the highest participation from luxury and premium brands yet, with all 113 brands on Tmall Luxury Pavilion taking part in the midyear sales event, according to Tmall’s luxury division. The division oversees luxury strategies across Alibaba Group, including the Pavilion.

La Prairie Steps Up Chinese Focus in Pudong Published by moodiedavittreport.com, June 12th 2019 Swiss luxury skincare brand La Prairie is enjoying spectacular and sustained success in China and with Chinese travellers. The brand’s visibility is being underscored strongly with this White Caviar outpost with China Duty Free Group and Sunrise Duty Free at Shanghai Pudong Airport Terminal 1. Look out too for our special eZine on CDF-Sunrise Duty Free’s eight-strong beauty boutique cluster at Beijing Capital International Airport 2, which includes La Prairie.

LEGAL / TAX / CONSULTING / SERVICES

Aargau Plans Center for Technology Transfer Published by s-ge.com, June 12th 2019 The Paul Scherrer Institute, the University of Applied Sciences and Arts Northwestern Switzerland, Swiss Nanoscience and the canton of Aargau intend to tap the potential of neutron and X-ray technology for industry. They are planning to establish the ANAXAM technology transfer center. The planned technology transfer center Analytics with Neutrons and X-Rays for Advanced Manufacturing (ANAXAM) will bridge the gap between research and industrial production, the State Chancellery of the canton of Aargau explained in a press release. At the core of ANAXAM are the neutron and X-ray analytics developed by the Paul Scherrer Institute (PSI). According to the press release, these can be applied to many areas of advanced manufacturing, to improve rail insulators or highly complex material analyses, for example.

Swiss Transport Industry Inspires Chinese Managers Published by fhnw.ch, June 6th 2019 Transport specialists from the northern Chinese province of Heilongjiang visited Switzerland as part of a leadership programme at the University of Applied Sciences Northwestern Switzerland FHNW. They gained insight into leading Swiss logistics and mobility companies. “If God came to earth, he would work in China and go on holiday in Switzerland,” said Dong Lingsan, a Chinese logistics entrepreneur, laughing heartily. He travelled through Switzerland for three weeks as part of a delegation of Chinese business people and visited state-of-the-art logistics companies. The Chinese participants work in the logistics sector and were very interested in exchanging ideas with their Swiss colleagues. At the same time, China is at least 232 times larger than Switzerland and transport routes have a different meaning there. In terms of product quality, Chinese manufacturers cannot keep pace with Switzerland. However, Swiss business people could learn a thing or two from Chinese working culture. While his hosts are very hospitable and courteous, he feels that they are a touch more conservative and much more cautious than his domestic partners. Although fewer mistakes are made in Switzerland, it also takes longer to bring new products to market.

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