CONTENTS K Editorial . 2 K Legal & Tax Matters Tax Update for Representative Offices and more . 88–90 K Anniversaries Practicing Swiss Lawyers Visit China . 91 Greeting Messages . 3–13 Amended State Compensation Law. 92–96 Bilateral Visits. 14–18 Efficient Market Access in China: CCC . .97–101 60th Anniversary of Bilateral Relations. 19–24 Chronologie der Volksrepublik China. 25 K News from Members Successful HR Management in China . 102–105 K Government News Groudbreaking for Swiss Data Center . 105–106 Significant Deepening of Bilateral Relationships. 26 SERV Insurance: Retain Liquidity, . 108–109 Top Chinese Legislator Visits Switzerland . 27–28 Realise Export Transactions Expo 2010 Shanghai – Swiss Highlights . 28–29 Credit Suisse in Greater China . 110–112 New Consul General in Guangzhou, . 30–31 The China Strategy . 113–115 Hong Kong, Zurich Schaffner Brings EMC-Filters and Power. 116–119 Quality Products K Chamber Mattters FHNW Celebrates 10 Years Global Know-how. 120–122 In a Mood for Celebrations . 32–33 Health and Wellbeing – Take the Best Only . 123–124 Founding Members, Presidents and Chapters . 34–35 of the Chamber K Swiss Watches Chronology and Actual List of Board Members . 36–39 First Titoni Artist Watch Launched . 126–128 Switzerland Trade & Investment Promotion . 40–41 Time Stops for Swatch Founder. 128–129 Sintra Skeleton Automatic . .129 K Environment Swiss Watch Brands with Rich History. .130 Cleantech Initiative Switzerland . 42–44 Green Production & Lifestyle in Shanghai . 44–46 K Readings & Exhibitions The SCS Opened its Machinery Center. 46–47 East and West – Need of Understanding . 131–134 Rauer Ton . 135–137 K Annual Reports Awards for Cuisine Book “Foodscape” . 137–138 China . 48–66 Pop-up Switzerland at EXPO 2010 . .139 Yangtze River Delta Region. 68–73 Big Draft – Shanghai . 140–141 Hong Kong . 74–77 Exhibition “Albert Einstein” in China / . 142 Chinagarten Zürich K Hong Kong Matters Hong Kong Activities in Switzerland . 78–79 K Useful Addressses The 11th Hong Kong Forum . 80 Useful Contacts in China & Switzerland . 143–144 Hong Kong Repositions itself in China Trade . 81–82 SG Fafalen Co. Joins King & Wood . 82 K China Views China – Clear as a Crystal Ball . 83–84 Confidence Grows Among German Companies . 84–85 in China Government Bodies Overview . 86–87 Small and Medium Enterprises in China . 87–88 Impressum :>0:: */05,:, Information Swiss-Chinese Chamber of Commerce Advertising: */(4),9 Bulletin of the Swiss-Chinese Chamber Höschgasse 89 Conditions available on website 6- of Commerce CH-8008 Zurich, Switzerland www.sccc.ch *644,9*, Tel. 044 / 421 38 88 Circulation: Fax 044 / 421 38 89 Deadline for next issue: In print 1’500 Ex. and on website. e-mail: [email protected] 2/10 November 30 To the Members of the Chamber and of www.sccc.ch the Chapters in Geneva and Lugano; Disclaimer: among them the leading banks, trading Printing: The BULLETIN is a semester publica- companies, insurances and industrial werk zwei tion on Chinese information gathered firms. To Trade Organizations, Govern- Print + Medien Konstanz GmbH from various media and news services, ment Departments, leading Chambers of P. O. Box 2171 edited by the Swiss-Chinese Chamber of Commerce in Switzerland, Europe and CH-8280 Kreuzlingen Commerce and distributed to its mem- China. Switzerland bers and BULLETIN subscribers. The Tel. 0049/7531/999-1870 Chamber does not accept responsibility Responsible Editor: www.werkzwei-konstanz.de for accuracy of quotes or truthfulness of Susan Horváth, Executive Director content. BULLETIN 1 l 2010 1 EDITORIAL Farsighted Developments and Relations The year of the Tiger and of the World Expo 2010 in to speculators and increasing the minimum down pay- Shanghai is coming along with important anniversa- ments for homebuyers. Putting the development of the ries. First we celebrate 60 years of diplomatic relations real estate market back onto a healthy and sustainable between China and Switzerland, second we are looking track is not an easy job. But any claim that the problem back to 30 prosperous years of our Chamber and third, could lead to a total collapse of the Chinese economy our Executive Director Mrs Susan Horváth has dedi- is nothing but sensational and misleading. cated 15 years of work and passion to the Chamber by Recent complaints that conditions for foreign guiding it into the new millennium very successfully; investors in China are worsening do not hold water. making it the third largest bilateral Chamber in Swit- Latest statistics show foreign direct investment (FDI) zerland. Such anniversaries are always moments to in China increased in April for the ninth month, surg- mark a hold point and express gratitude to brilliant ing 25 percent year-on-year. FDI’s contribution to individuals. It was indeed farsighted to start diplomatic China’s economic growth is more than obvious. For- ties with China 60 years ago among the very first coun- eign-invested companies accounted for 56 percent of tries to do so. In 1980, at the time nobody really could China’s exports in 2009 and directly employed 45 forecast the tremendous economic wake up of China, million people. In fact, the government has just Dr Uli Sigg and some other enthusiasts have jointly announced a number of preferential policies to attract laid the foundation of our Chamber. During the years foreign investments in renewable energy, high-tech- of its existence, the Chamber has always contributed nology and service sectors in central and western to the development of the bilateral economic relations parts of the country. It is important to notice that the between Switzerland and China. On behalf of the incentives for future FDI’s will be set accordingly. entire Board, I would like to express my sincere thanks The world’s third largest economy expanded at a to all the dedicated people who have contributed sig- 10.3-percent year-on-year rate in the second quarter, nificant efforts to the Sino-Swiss bilateral economic slower than the 11.9-percent growth in the first quarter relations. These anniversaries also provide the oppor- and the 10.7-percent growth in last quarter of 2009, tunity to appreciate the tremendous support we have according to the National Bureau of Statistics (NBS). received from our Chinese friends, the Embassy in Many economists welcomed the economy’s cooling, Berne and the Consulate General in Zurich. The great saying the slower growth is more sustainable. The support and trust received from the official China has moderation in growth, which government expected, always been a most important pillar of our Chamber. will help accelerate the transformation of the economic growth pattern and prevent economic overheating. Besides celebrating we shall keep focus on recent eco- China’s own leadership has stressed the need to “rebal- nomic developments in China and facilitate towards a ance”, away from an invest-and-export growth model better understanding of the economic outlook. to one based more on domestic consumer spending. Since the financial crisis in the second half of 2008, That would produce healthier, long-term sustainable the Chinese government implemented a dynamic growth. This strategic direction is rather logical. financial policy and heavily invested in infrastructure. It successfully drove China’s economic growth and It is a challenging task to keep the Chinese economy contributed to the global economic growth as well. on a healthy track given its fast growth rates and con- Most developing countries are facing the economic stantly changing dynamics. China’s policy makers bottleneck of a backward infrastructure. The Chinese should just carry on with what they have always been government has set a good example for other develop- doing: identifying and forestalling any potential risks ing countries with its highly efficient investment in to the world’s fastest growing economy. After all, a infrastructure. The World Bank has called this “Best growing, strong and healthy Chinese economy will Practice” and encourages other nations also to invest not only benefit its own people, but is in the best inter- more in infrastructure. ests of the world at large, also of the Swiss corpora- The Chinese economy was the first of the world’s tions engaged with business in China. I am looking major economies to bounce back from the lowest point forward to another 60 years of excellent bilateral ties of the global financial crisis and has maintained a good between Switzerland and China and certainly to the growth momentum since the beginning of this year. No next 30 prosperous years of our Chamber. one would deny that real estate prices in China have risen too fast during the past few years, especially in some major cities, posing a major threat to the coun- try’s macroeconomic stability. The government has announced tough measures in the past few weeks to Kurt Haerri rein in speculative property buying in the housing mar- President Swiss-Chinese Chamber of Commerce ket, including discouraging banks from granting loans Senior Vice President Schindler Elevator Co. Ltd. 2 BULLETIN 1 l 2010 ANNIVERSARIES Chamber Marks 30th Anniversary The idea of founding a Sino-Swiss Chamber of Commerce matured in early 1980, when Deng Xiaoping’s economic reforms started to yield the first encouraging results. At the time, I was engaged in negotiations for the very first Sino-foreign industrial joint ven- ture, involving Schindler elevators. Although at that time, transferring money and new technologies to Chinese enterprises was considered foolish by most Western companies, I was convinced that many other Swiss companies would start planning investments in China. I felt the need for an institution providing a forum for discussion and a competent source of information and advice for these potential investors. My idea was enthusias- tically endorsed by some prominent industrialists, bankers and lawyers.