Annual Review 2019

| 1 #AsiaGameChangers

Founded in 1956 by John D. gender equality, while making Rockefeller 3rd, Asia Society is a enormous contributions to society nonpartisan, nonprofit organization and social structures within their that works to address a range of home countries. The honorees include challenges facing Asia and the rest of Japan’s Yuriko Koike, the country’s the world. Asia Society has cultural first female defense minister and centers and public buildings in New first female governor of Tokyo, who York, , and Houston, has paved the way for other women and offices in Los Angeles, Manila, leaders in her country; Chhaya , Mumbai, San Francisco, Sharma, who led the investigation , , , Tokyo, and prosecution of several high-profile Washington, D.C., and Zurich. crimes in , and transformed police With an work and the roles of policewomen; Across the fields of arts, business, ’s Jane Jie Sun, the dynamic underlying culture, education, and policy, Asia and trailblazing leader of Ctrip, a Society provides insight, generates 25-billion-dollar travel company where interest ideas, and promotes collaboration more than half of the employees between Asia and the world. are women; and Faiza Saeed, the in strengthening presiding partner of Cravath, Swaine & Every year, Asia Society’s global Moore; Sana Mir, recognized as one of and increasing network nominates leaders who the best cricket players in history and are making a transformative and former captain of ’s national understanding positive difference for the future of team, who has championed women’s between East and Asia and the world, including artists participation in this male-dominated and arts professionals who have sport; Sheikha Hoor Al Qasimi of the West, I felt that made a significant contribution to , a pioneer in the the development of modern and art world who has tirelessly promoted one of the ways contemporary art in Asia. greater cultural understanding and exchange in the Middle East and to foster Asia Society Arts Game Changers around the world; and the Kung Fu 2019 honored by Asia Society Hong Nuns of India and Nepal, who have understanding Kong were Indonesian artist Christine harnessed their mastery of martial arts Ay Tjoe, Chinese artist Fang Lijun, to challenge patriarchal structures and was to increase Pakistani artist Imran Qureshi, empower girls and young women in respect, to and Natee Utarit from Thailand. the Himalayas and beyond. Asia Society Mumbai lauded Akbar increase mutual Padamsee, Gulammohammed Sheikh, and Vibha Galhotra from India, as well appreciation as the Chinese artist Yongliang. The 2019 Asia Game Changers are for the other’s women who have truly championed accomplishments. John D. Rockefeller 3rd

Founder of Asia Society Jack Ma I. M. Pei Indra Nooyi ASIA GAME LIFETIME ASIA GAME CHANGER ACHIEVEMENT CHANGER OF THE YEAR AWARD OF THE YEAR 2015 2017

2014 Manny 2016 His Highness 2018 Pacquiao the Aga Khan ASIA GAME LIFETIME CHANGER ACHIEVEMENT OF THE YEAR AWARD 2 | President’s Message

Dear reader,

2019 was another special year for Asia I wish to thank our institutional and Society Switzerland. We are thankful individual partners for their invaluable to our network of partners and support, our partner organizations for collaborators who helped us continue their constructive collaborations, our building bridges between Asia and members for their active engagement Switzerland in order to promote a and the Asia Society Switzerland team better understanding of Asian art, for their strong dedication and hard culture, policy and economies. Our work. 2019 program offered a non-political platform for insightful conversations, cultural exchanges, and shared views, and facilitated conversations with experts from around the world. We have invited leading members of Adrian T. Keller our global Asia Society network to President of the Board Zurich, experienced the Asian temple food culture with our senses and together with our curious audience, we explored unique elements of Asian art, ranging from contemporary art and manga comics, to historical paintings, sculptures or manuscripts. That is just to mention a few of this year’s highlights.

We have welcomed more than 250 new members who joined our member community this year. 17 Corporate Partners make our program possible with their financial support. These corporations are our foundation, and most of them have been with us since the very beginning. As many of them have strong ties with Asia, they understand the need and importance to create bridges of understanding.

As an organization, we strive to learn from one another, promote dialogue, and foster a culture of mutual understanding between our people and cultures in order to coexist and grow together. At Asia Society Switzerland, we believe it is important to touch upon the core values of Asian cultures, such as discipline, pride of innovation, respect, a strong entrepreneurial spirit and Asia’s ‘thrive to survive’ attitude and modesty.

| 3 Asia Society Switzerland’s Experts for 2019

For all of Asia Society programs we have the honor to welcome refreshing and thought-provoking speakers. In 2019, Asia Society Experts travelled from 39 locations to Zurich, Bern, and Geneva. By sharing their knowledge and expertise with our members and audience, they supported our mission of strengthening the bridges of understanding between Asia, Switzerland and the world.

Experts from America Experts from Europe

An Xiao Mina Boon Hui Tan Agatha Kratz Alessandro Curioni Andries Diener Clare Rewcastle Brown Dirk Schmidt Affi liate researcher, Vice President, Associate Director, IBM Fellow, Vice Partner, Asia Green Real Investigative journalist, Tenured Senior Berkman Klein Center Global Arts and Cultural Rhodium Group, France President Europe and Estate, President, Swiss- United Kingdom Lecturer and Senior for and Society, Programs and Director Director, IBM Research, Chinese Association, Researcher of China’s Harvard University, of Asia Society Museum, Switzerland Switzerland Political Economy, Trier U.S.A. U.S.A. University, Germany

Daniel H. Rosen Kaiser Kuo Jue Wang Kristin Shi-Kupfer Margit Molnar Markus Herrmann Matthieu Zellweger Partner, Rhodium Group, Co-Host, Sinica Podcast, Lecturer, Leiden Director, Research Head of China Desk, Director, Sinolytics, Photographer, U.S.A. U.S.A. University; Associate Area on Public Policy OECD Economics Switzerland Switzerland Fellow, Asia-Pacifi c and Society, Merics, Department, France Programme, Chatham Germany House, Netherlands

Petra Sigmund Philipp Hildebrand Ruth Kattumuri Sarah Kenderdine Theresa Fallon Deputy Director General Vice Chairman, Founder and Co-Director, Professor of Digital Founder and director, for East Asia, Southeast BlackRock, Switzerland India Observatory, Museology, École Centre for Europe Asia and the Pacifi c, Distinguished Policy polytechnique Asia Studies, Belgium Federal Foreign Offi ce, Fellow, School fédérale de Lausanne, Germany, Germany of Economics and Switzerland Political Science, United Kingdom

Uli Sigg Former Swiss Ambassador to China and world-renowned collector of Chinese contemporary art, Switzerland

Are we experiencing the highest to connect and empathize with Asia. life-expectancy of all time? Will we Increasing Asia Competence is at the soon live to be 100 years old? Are core of Asia Society Switzerland’s machines going to outsmart us? Will mission. I am proud and honored that climate change throw our ecosystem so many leading experts from around off balance? Is democracy retreating the world have taken time this year in the world? In short: What does our to join us, sharing their insights and future hold? We don’t know the answer experiences, allowing us to be part of to these questions, however we are a global conversation that is crucial certain that our future, the world’s for the future of Switzerland and the future, will become increasingly world. infl uenced by Asia. In comparison with our past, the future will be shaped by events in and ideas from the Asian region. Understanding the future thus requires Asia Competence: a holistic, sustained understanding of Nico Luchsinger Asian issues, paired with the ability Co-Executive Director

4 | Experts from Asia

Dirk Schmidt Ambassador Chan Bruno Maçães Bridget Welsh Carsten Hasbach Dan Wang Hao Jingfang Tenured Senior Writer and researcher, Heng Chee Former Portuguese Senior Research Director for Belt & Road, Technology analyst, Economist, China Ambassador-at-Large Minister and author, Associate, National Siemens, China Gavekal Dragonomics, Development Research Lecturer and Senior Spain Foundation, Researcher of China’s with the Ministry China Taiwan University, China science fi ction author Political Economy, Trier of Foreign Affairs, Senior Associate and social University, Germany Co-Chair, Asia Society, Fellow, Habibie entrepreneur, China Center, University Fellow, Charles Darwin University, Malaysia

Matthieu Zellweger Eric Durand James Crabtree Jamil Anderlini Jeong Kwan Joleen Liang Kin-Ming Liu Parag Khanna Photographer, Head Cyber Center of Author and journalist, Asia Editor, Financial Buddhist nun, starred Partner, Squirrel AI Independent public Strategy Advisor and Switzerland Competence, Swiss Re, Associate Professor of Times, Hong Kong in an episode of “Chef’s Learning, China affairs consultant, author, Singapore Switzerland Practice, Lee Kuan Yew Table”, South Korea Hong Kong School of Public Policy, Singapore

Theresa Fallon Tobias Dennehy Ronnie C. Chan Seema Paul Suhanya Raffel Zengxin Li Founder and director, Head of Global Belt & Chairman of Hang Lung Managing Director of Museum Director, M+, Editor of international Centre for Russia Europe Road Task Force Group Limited, Chairman The Nature Conservancy Hong Kong business news and Asia Studies, Belgium Siemens, Germany Emeritus of Asia Society India, India editorial board member, and Chairman of its Caixin Media, China Hong Kong Center, Hong Kong

Looking back on an exciting and network helps us develop our legacy eventful 2019, I would like to and we hope to welcome more thank our Corporate Partners for members in the years to come, so their continuous support, trust and they can experience what Asia Society generosity towards Asia Society Switzerland has to offer. Switzerland and for supporting us to grow our program and fulfi l our mission. We are very grateful to our over 800 members for their loyalty and interest in Asia Society Switzerland. With our increasing Katharina Viana-Bachmann network and program, we aim to be Co-Executive Director a ‘home’ for people who love Asia, who have lived there or have strong ties with the region. Finally, I would like to thank our staff and dedicated team of collaborators for their passion and constant support. Our unique

| 5 The World of Chinese Science Fiction The young author Hao Jingfang not only has a degree in physics and a PhD in economics, but in her award winning writing she has also made it her specialty to create fictional landscapes from social and political differences.

6 | | 7 Referring back to her early days as a writer, Hao Jingfang started reading literature magazines while studying physics; she wrote her first piece of work influenced by stories that represented real Chinese societies, such as Liu Cixin’s ‘The Rural Teacher’. In this story, the students were asked to learn about Newton’s three laws of motion. While they were questioning how valuable that lesson would be for their lives, aliens landed in the village, thinking to destroy the No book needed: Hao Jingfang reads a section of her novel from her smartphone. Earth if humans were not proven to be civilized. The aliens tested the kids, asking all kinds of questions, but the one topic they could answer about was Newton’s laws of motion. Eventually, the Earth was saved thanks Asia Society Switzerland hosted a the Western world, mainly thanks to their answers and it was seen as a talk with the award-winning, Chinese, to translation. Philipp Theisohn civilized place by the aliens. According science fiction writer and scientist Hao added that there is undoubtedly an to Hao Jingfang, Liu Cixin introduced Jingfang on June 18. Hao Jingfang Eastern European tradition in science the everyday life of Chinese people, immersed the audience in the world fiction, with notable pieces of work their households, their traditions, into of Chinese science fiction and talked engaging strongly with social-political modern storytelling in China, which about her novel ‘Stray Skies’ that movements. was important to both readers and was recently translated into German. writers and has since become an The novelist discussed her early established part of Chinese literature days as a writer and her sources of now. “Discussing China’s development inspiration, as well as how her writing through traditional stories is common,” relates to modern Chinese society. the writer added. The conversation was moderated by Philipp Theisohn, a literature and science fiction expert, who holds a chair for modern German literature If you read a For Hao Jingfang, social fiction writing at the University of Zurich’s German is seen as a “mental experiment.” department. novel you Attributing this approach to her always have to science background she focuses on logical actions, like in the process ask yourself, is of a laboratory experiment, and During the first part of the discussion, on imagination. “I want to discuss Hao Jingfang elaborated on the this something abstract concepts by making logical development of science fiction in references,” she adds. “For the China. According to her, “science which will get storytelling part, it is important to fiction was a relatively unexplored use emotions and imagination. It is topic in China until the early ‘90s and real somehow like if you want to build a world with it was used as an educational tool up no gravity, you need to imagine what until then, mainly to teach science or will it stay ‘antigravity’ feels like – referring to the to children.” The evolution started virtual? prominent elements of human nature about thirty years ago when Chinese and traits that remain the same no science fiction emerged in modern Philipp Theisohn matter the generation. She writes literature and gained international about ‘forgotten heroes’, everyday recognition and loyal followers in people who don’t get acknowledged

8 | I believe that Did you know? science fiction needs to remain Science fiction artistic, and in China still has a small following. appreciated for It is not comparable to the romance, love stories or to kung fu stories its artistic sense which still have the largest number of readers. However, there are and value. more and more science fiction Hao Jingfang readers now, as the educational by history books but who struggle level of Chinese people is rising every day, fighting for their families and more young people are keen on but cannot change their situations reading science fiction – an and fate. She stated: “They are worth writing about.” upward trend class. Different personal stories are that started in the 1990s. unfolding in this process, including a love story between two people from The plot of ‘Stray Skies’ involves different classes, both showing selfish a “cosmic Martian” world, a “real characteristics in the fight for survival. Earth” world, and their people, This reminds us of the realistic presenting different stories, touching elements in Hao Jingfang’s novels. upon personal issues and social structures in an effort to understand both environments. Reflecting on social issues, our speakers discussed modern-day inequality in China and the world. She says that “ is massively overpopulated and divided by class” and that “inequality does not affect only the current and future generations in China; it is also one of the most prominent problems of human society”. She refers to Walter Scheidel’s book on inequality, where it states that “the most effective way to destroy inequality is war and evolution. Inequality is a natural result in any liberal society and technological development will exaggerate that problem in the future and the division will be bigger”. In Hao Jingfang’s novelette ‘Folding Beijing’, which won the Hugo Award in 2016, the division Learn more about of society is based on three class Hao Jingfang and her levels structured by time and space, in passion for science which people fight to get to a higher fiction.

| 9 What Does Narendra Modi’s Victory Mean for India? After the election in the world’s largest democracy, Ruth Kattumuri from the London School of Economics and author and former Mumbai bureau chief for the Financial Times, James Crabtree, discussed the implications of the outcome.

10 | | 11 The stunning majority for the Bharatiya Ruth Kattumuri believes that Modi Janata Party (BJP) in the 2019 Indian regained the trust of the voters election was a massive political thanks to his consistent campaign, India is as achievement for its leadership: the his entrepreneurial approach and his prime minister, Narendra Modi, and agenda, which prioritized on three culturally the party’s president, Amit Shah. The key areas: leadership, audiences and BJP won the majority of votes within resources. Ruth said, “He is a good

29 states and 7 union territories communicator and he understands diverse as Europe. following a pre-election campaign the values of people from different prioritizing on national security issues, backgrounds and their aspirations.” More and more people are employment and a stronger growth Based on polls, 65% of the population embracing the country’s model for India. voted for further development, while young people asked for more A few days after the election, on May leadership. growing 27, Asia Society Switzerland invited Ruth Kattumuri, Co-Director of the James Crabtree evaluated the outcome India Observatory at the London not as positively: he compared start-up School of Economics and Political the 2014 election with this year’s Sciences, and James Crabtree, election. He stated that the first scene. author, former Mumbai bureau was a “hopeful” election with strong Ruth Kattumuri chief for the Financial Times and messaging around economic growth, Associate Professor of Practice at while this year’s election was focused the Lee Kuan Yew School of Public on national strength and, following the Policy in Singapore, to participate recent attacks in Kashmir, the need in a discussion reflecting upon the for higher security levels. For context result of this year’s elections. The he added, “Locals are able to see the discussion was moderated by Mark development and material prosperity. Dittli, founder and editor-in-chief at Modi is the politician who embodies The Market. that possibility.”

12 | The economic and demographic situation in India is indeed complex and easy answers are not on the table. In 2014, Modi promised that he India is the would create more jobs. So far, GST (Goods Service Tax) has enabled a largest democracy higher public fund, tax evasions have been finally addressed seriously, but in the world – still 1.5 million young people enter the it is a country job market every month. Described as “the Thatcher of India” but also as where people “the Putin of India”, back in 2014, Modi introduced structural reforms, freely express while also being open to different systems. Ruth Kattumuri believes that what they think ‘Start-up India’ can be a driving force in India’s workforce and innovative and what they direction, as there are lots of young entrepreneurs coming of age in the believe in. country. Ruth Kattumuri

Social inequality is one of the main challenges for Modi, as there is a need for equal access to resources. According to Ruth Kattumuri, an society and Modi cares about the opportunity lies in decentralization of constitution. In the end, we shouldn’t the development of “different sectors forget that there are great strengths in such as construction, textile industries, India’s systems too, to be developed.” India’s state and tourism.” Although India has created a new amount of wealth lately, is weak and faster than Russia or China, Modi still uncoordinated. needs to prioritize on inclusive growth. James Crabtree puts his bets on a It is democratic more service-oriented model: “The world does not need a whole other but it is not gigantic export-focused economy. Investing and focusing on the country’s very good promising service industry, like the IT sector, will help India take a share at delivering in the manufacturing element and approach China’s model.” things. James Crabtree As far as the quality of India’s administrative state is concerned, the government will have to fight to deal with tax issues and off-shore accounts, manage taxpayers and control non-salary jobs in the struggle for further transparency. On the positive side you can find a strong What else did former NGO community and civil society in FT correspondent India, and most communities co-exist. James Crabtree tell Ruth Kattumuri adds “India is a plural us?

| 13 A Growing Digital Divide? How do the U.S., Europe and China think about technology and its role in society? In a wide-ranging discussion, we explored the growing differences and what it means for the relationship between East and West.

14 | | 15 In China, technology has become an “There are both overestimations philosophy, and, although they let important component for national and underestimations and ongoing contradictions stand, people in Asia security, industrial policy and thinking,” Kristin Shi-Kupfer flags. use the power of data to connect with manufacturing, and it has created Back in the late 90’s, when internet each other. “We see that the internet a tech-related anxiety. According censorship started, there was another has become a sociable power,” to Kaiser Kuo, co-host of Sinica general narrative that is now reversed; she adds. As far as the different Podcast, it is interesting to look at that the internet companies in China approaches to the internet in China the relationship of East and West were incapable of innovation, that they and America is concerned, Kaiser in relation to technology and, more copied US models, and that America Kuo also makes a point on specifically, the ideas the Western was innovative because it was free. founder Mark Zuckerberg’s speech world has shaped about technology “Freedom was considered a necessary at , where practices in Asia. In the question of condition for innovation,” Kaiser Kuo he expressed his views on the new how technology and policy interact added. Chinese internet, and his frustration and what is happening in China, about Facebook in China. Kristin Kristin Shi-Kupfer, director, research When it comes to America’s thinking, Shi-Kupfer stated: “There are two area on Public Policy and Society at according to Kristin Shi-Kupfer, there competing visions: that one of the Merics, believes that we underestimate is still the question of how the thinking State having the national control and the ability to control and manipulate of an authoritarian regime can drive the one of free internet, as in America. the internet. Within the Chinese innovation. “A liberal democracy and Now we have to choose either the US leadership, there are certainly different education would certainly help people or the Chinese offer.” views in relation to access and think outside of the box,” she notes, privacy, and diversity is needed as “and this is how America thinks.” Evgeny Morozov believes that it is well as a different range of discourse. According to Evgeny Morozov, writer not just China that challenges the and researcher, the mindset of a other internet models. In Europe typical American is shaped around the we have new laws such as GDPR, modernization theory, based on the which governs how companies can development and education exposed to use private data. There are new the world in relation to the growth of legal mechanisms, and we should democracy and human rights. Media not accept what we have seen in also played a role in that story. This the digital world as the norm, as so is where we have to understand how far everything is shaped around the crucial the circulation of information is. expansion of the American model. According to Evgeny Morozov, “there is He added “We have to be careful not now a moral of development through to think that what humanity needs start-ups, who run the show, while the and what the US needs is the same. state is involved on setting a new legal Actually, the Chinese are pushing back and political direction.” “It is about against it and they have the guts to re-inventing new ways to proceed and challenge the existing model.” finding new ideological dynamics,” he added. Going further back to when this ideology started to take shape in the According to Kristin Shi-Kupfer, we US, our speakers touched upon the have the tendency to seek simplified origins of Silicon Valley and what its solutions, which is also a great purpose was. According to Evgeny Evgeny Morozov, writer and researcher strength of Asia and part of their

16 | Morozov, there was a new industrial were to relate things to agendas of strategy around the internet and public global justice. “We should be open consumption, shaped during Barak and look closer on how the existing Obama’s presidency. This thinking systems can develop and how different was shaped by the historical efforts political systems should approach the of the US to serve the geopolitical internet,” he said. agenda of the States. This was further pushed during the Cold War and the In relation to these existing traditional 90’s, along with the move of the systems, Kaiser questions the venture capital. In 2017, there was changes happening in China and this realization that this strategy was how those changes are being no longer working and that was when implemented. According to Kristin America started having very active Shi-Kupfer, we underestimate the control of its technological backend. ability of authoritarian regimes to Kristin Shi-Kupfer of the Mercator Institute for The experts agreed that there is now conceptualize the Internet and link China Studies a change of narrative around internet it to the security apparatus in the policies, especially after American name of social security and harmony, ‘declinism’ and the financial crisis. for example look at Shenzhen and Tibet. In Europe there are active In relation to how Europe approaches discussions around the Internet and the topic, according to Kristin Shi- social security, questioning if Europe Kupfer “there is a reluctance to talk should allow the state to work on Chinese have about industrial policies.” Europe preventive policing, for example. “This seems to lean towards China for is a controversial topic, as of course a different support, aiming to obtain a more we want security but also freedom transparent system, and a more to express”, she said. In relation to attitude strategic government-led approach this ongoing thinking, according to and involvement. This issue of alliance Evgeny Morozov, “We tend to be towards is a constant challenge for Europe. In positive about the internet and what technology China, it is also important to consider it offers us, but we need to rethink the role of the private sector that on a deeper level what are the biases and futurity. seems to have more liberal attitudes and the manipulation linked to it. It’s and more global perspectives. not accidental that “in the US, people They “They make a real effort to shape need to accept ‘the internet package’ how money is distributed and they as presented to them, otherwise they embrace it. are taking important decisions for need to live in dark ages,” he adds. Kaiser Kuo the market and the economy on a This takes us to the issue of ethics daily basis,” Evgeny Morozov stated. and modern technology. “In China, the discursive force of technology was acknowledged and As general remarks on current its contribution to the improvement of perceptions and practices, Evgeny life,” he added. Morozov notes the need for more transparency: “We don’t know what As far as future ambitions are it costs to make a search, we concerned, according to Kaiser think it is free, but it is not certain. Kuo, the Chinese have a different Leaders manipulate the creation of attitude towards futurity. They knowledge, especially when it comes embrace technology to drive bright to the global economy and ethics, e.g. futures, while in the West, they are Energy companies and their approach being critical about this approach. to climate change.” According to Discussing about the terms ‘internet Kaiser Kuo, Chinese companies that centrism’ and ‘splinternet’ and the go global seem to care more and more new approaches to technology, about quality, while in Europe, the Evgeny Morozov notes that there German government tries to inform has never been a global internet, as current policies and mechanisms, it was mainly dominated by the US. in relation to 5G technologies for He argues that on a national level example. According to Kristin Shi- there are different legal norms and Kupfer, “there is more strategy and Read more about expectations on how we should use investment put on education and the “digital divide” the internet, and that is normal. Of research to help the shape of new between China and course, things could look wrong if we industrial policies.” the U.S.

| 17 “The Belt and Road is About Everything”

Rarely has a plan evoked as much debate, discussion, and speculation The Belt and Road Initiative creates a global infrastructure network as China’s “Belt and Road Initiative” Kirkenes (BRI). Is it the 21st Century’s Marshall China uses, acquires and builds railroads, ports and pipelines

Plan? A Machiavellian scheme to Akureyri

extend China’s infl uence in the region? Arkhangelsk Or simply a propped-up marketing slogan? The answer, as we have

learned through conversations with Yekaterinburg Kazan Krasnoyarsk Moscow numerous experts throughout this Klaipéda Novosibirsk Rotterdam Antwerp Berlin Minsk Irkutsk year is: yes. London Astana Dunkirk Warsaw Le Havre Nuremberg Ulan Bator Montoir-de-Bretagne Strasbourg Budapest Daqing Jiamusi As with any much-hyped phenomenon, Yuzhne Alashankou Harbin Planned / Venice Almaty Bilbao Aktau Port Ürümqi Hunchun Existing under construction Vado Sofia Uzen we get a better understanding if we Marseille Ambarli Vladivostok Istanbul Baku Rason Madrid Tashkent Railroads Kars Beijing Chongjin Valencia Ankara go back to the basics and ask: What, Piraeus Dandong Lanzhou Cherchell Tanger Qingdao Oil pipeline really, is the Belt and Road Initiative? Malta Tehran Mashhad Busan Casablanca Ashdod Lianyungang Isfahan Xi'an Baghdad For starters, it is not really an initiative. Chengdu Wuhan Shanghai Gas pipeline Ningbo Suez Dammam Chongqing Tobias Dennehy, Head of the Belt and Gwadar Fuzhou It is not a project or even really, a plan. Medina Kunming Port Dhaka Quanzhou Road Task Force at Siemens Karachi Guangzhou Riyadh Abu Dhabi Calcutta It is an umbrella term for a variety of Payra Beihai Zhanjian Mecca Sittwe Haikou Nouakchott Silk Road Economic Belt very different ambitions and ideas. Kyaukphyu Vientiane Ndiago Massawa Dakar Djibouti Aden Maritime Silk Road To Western observers, this variety is Bamako Kaduna Laem Chabang Addis Ababa Conakry Sihanoukville Lagos Abuja baffl ing and sometimes, even amusing. Colombo Economic Corridor Hambantota Abijan Juba Malé Lomé Kuala Lumpur Aboadze Tema Kuantan Depending on whom you ask, it covers Kribi Malacca Singapore AIIB member states São Tomé everything from transport and logistics Libreville Lamu Bujumbura Mombasa to tourism and e-commerce to even, Bagamoyo Jakarta Dar es Salam Luau yes, online dating. Mtwara Darwin Lobito Kapiri Mposhi

But there is an underlying logic to Beira Walvis Bay

these seemingly random projects. To Maputo understand it, Bruno Maçães, author

of the book Belt and Road: A Chinese Newcastle World Order and keynote speaker at our BRI conference, held in April Melbourne

in collaboration with Credit Suisse, © merics, May 2018 suggested to start in Khorgos. Source: Mercator Institute for China Studies Khorgos was until recently an (MERICS), Berlin unknown town in China’s Northwest. at the Kazakhstan border. Now it argued Bruno Maçães. Instead, it is features one of the world’s largest dry about global supply chains and market ports, where goods are moved from access. Or simply: “It’s about trade, domestic trains, to trains destined for not trains.” The terminology makes It’s about Central Asia – and Europe. According that clear: The “belt”, which refers to Bruno Maçães, the port is not to the land part of the BRI, indicates trade – Khorgos’ most important feature. that the goal is not just to move goods It is the visa-free special economic from A to B, but to develop markets not trains. zone, built across the border between and economies in-between. Bruno Maçães, former Portuguese China and Kazakhstan. Minister and author Why would China do that? Bruno That’s because the BRI is not simply Maçães argues that it is all part about infrastructure and transport, of China’s desire to “upgrade” its

18 | The Belt and Road Initiative creates a global infrastructure network Kirkenes China uses, acquires and builds railroads, ports and pipelines

Akureyri

Arkhangelsk

Yekaterinburg Kazan Krasnoyarsk Moscow Klaipéda Hamburg Novosibirsk Rotterdam Antwerp Berlin Minsk Irkutsk London Astana Dunkirk Warsaw Le Havre Paris Nuremberg Ulan Bator Montoir-de-Bretagne Strasbourg Budapest Daqing Jiamusi Yuzhne Alashankou Harbin Planned / Venice Almaty Bilbao Aktau Port Ürümqi Hunchun Existing under construction Vado Sofia Uzen Marseille Ambarli Vladivostok Istanbul Baku Rason Madrid Tashkent Railroads Kars Beijing Chongjin Valencia Ankara Piraeus Dandong Lanzhou Cherchell Tanger Qingdao Oil pipeline Malta Tehran Mashhad Busan Casablanca Ashdod Lianyungang Isfahan Xi'an Baghdad Chengdu Wuhan Shanghai Gas pipeline Agatha Kratz of Rhodium Group Ningbo Suez Dammam Chongqing Gwadar Fuzhou Medina Kunming Port Dhaka Quanzhou Karachi Guangzhou Riyadh Abu Dhabi Calcutta Payra Beihai Zhanjian invest an additional $460 billion in Mecca Sittwe Haikou Nouakchott Silk Road Economic Belt Kyaukphyu Vientiane infrastructure – per year. As Agatha Ndiago Massawa Dakar Djibouti Aden Maritime Silk Road Bamako Kaduna Laem Chabang Kratz of Rhodium Group pointed Addis Ababa Conakry Sihanoukville Lagos Abuja Colombo Economic Corridor out at our conference, Chinese Hambantota Abijan Juba Malé Lomé Kuala Lumpur Aboadze Tema Kuantan Kribi Malacca policy banks alone have invested Singapore AIIB member states São Tomé Libreville Lamu $270 billion in projects since BRI Bujumbura Mombasa Bagamoyo Jakarta was announced. (How much has Dar es Salam Luau Mtwara Darwin been invested in BRI projects is Lobito Kapiri Mposhi hard to estimate – mainly because Beira there is no clear defi nition of what a Walvis Bay

Maputo BRI project is.) Over 150 countries, including Italy and Switzerland,

Newcastle have signed declarations with China about participating in the Melbourne BRI. Overall, the project has been

© merics, May 2018 the subject of intense debate – in itself a success for something that is as much about PR, as it is about economy in the face of a shrinking The Belt and Road is about all these infrastructure. working population, rising living things together, and much more. standards and increased competition More recently, the criticism has from other (Asian) countries. The myth of the “debt trap” grown louder. This is partly due If China moves towards higher value to increased skepticism of China manufacturing, it will have to rely When Chinese President Xi Jinping and its global ambitions. “I equate more on globally integrated value formally announced BRI in two the BRI to a Rorschach test: chains. It also will need guaranteed speeches in 2013 (its English one’s perceptions of the BRI are access to global markets – and name back then was still “One indicative of one’s sentiments in times of trade wars, that Belt One Road”), the feedback was towards China,” argued Daniel increasingly means being predominately positive on a global Russel, Vice President at Asia geopolitically engaged. Also and level. The BRI was seen as an effort Society’s Policy Institute in New perhaps most importantly, it requires to address the infrastructure gap in York. Some of the BRI projects the ability to set technological Asia. The Asian Development Bank have also faced strong pushback. standards globally. estimates that the region would need to For example, Sri Lanka used

| 19 Bruno Maçães, former Portuguese politician, political scientist, business strategist, and author.

Chinese loans to build a new port Towards more multilateralism? and businesses to shape individual in Hambantota, which was barely projects, but also procurement used. To serve the mounting debt, the The mounting criticism has led some procedures or environmental country had to lease the port for 99 observers to speculate about the standards. In a recent report, the years – to China. “2018 was a horrible end of BRI. All experts we spoke to Asia Policy Institute made 12 year for BRI,” said Agatha Kratz. considered that fanciful: The BRI is recommendations for BRI, including a key pillar of China’s strategy. It is standardized contracts, a transparent Hambantota is often cited as an enshrined in its constitution, and it e-procurement process, and tougher example of a “debt trap”: A host is here to stay. But the path that the environmental standards. country builds infrastructure it does BRI is taking is not pre-ordained, and not need, and then becomes beholden some elements can be changed, such At our conference, Tobias Dennehy of to China and its geopolitical ambitions. as for the initiative and projects to be Siemens explained how the company “But the reality is more complicated,” sustainable in the long run. “There is managed to actively approach Chinese points out Agatha Kratz. According to a steep learning curve in the Chinese banks and companies with ideas a Rhodium Group study, it is much administration,” noted Zengxin Li, for Belt and Road projects it has more common for Chinese investors to international editor at Caixin, a developed in collaboration with host have to write-off their investments in business magazine, at our conference. countries. “The Made in Switzerland BRI projects. or Made in Germany label is sought This creates an opening for after,” noted Tobias Dennehy. But There is, perhaps, a more instructive governments, international institutions exerting this kind of influence in a case for BRI troubles is Malaysia: more strategic way, requires better The unexpected ousting of Prime collaboration between businesses and Minister Najib Razak led first to the governments. And most importantly, ending and then the resizing of a it requires accepting the BRI and large rail project under the BRI flag. The BRI is China’s growing influence as a long- Along the way, new Prime Minister term reality. Mahathir Mohamad, accused China of like a Rorschach “neocolonialism”, and alleged massive Read our full Belt corruption under his predecessor. test. and Road coverage, Hence, the episode exemplified the Daniel Russel, Vice President, including the risks of the often-opaque procurement Asia Society Policy Institute. ASPI report and processes in BRI projects. recommendations, on our website:

20 | Become an Asia Society Member

Foster openness and curiosity and contribute to an intercultural exchange. Because Asia matters.

| 21 Acknowledgements

We would like to express our deepest gratitude and appreciation to our corporate partners and donors. Their invaluable support helps fund our programming and efforts to develop deeper connections between Switzerland and Asia.

Corporate Leaders Corporate Supporters

Acqupart Holding

In-kind Partners

Diethelm Keller Holding (Offi ce Space) Homburger AG (Legal Services) KPMG AG, Switzerland (Audit Service) Andrés Luther, Senior Partner at Hirzel.Naef.Schmid. Konsulenten (Communications) PricewaterhouseCoopers AG, Switzerland (Accounting and Tax Service) Corporate Partners Individual Donors

Martin Bisang Members of the Board of Dominik Keller Asia Society Switzerland Unotec Holding Jürg Schaeppi

Asia Society Switzerland Advisory Board

Dr. Jeffrey Bohn Dr. Albert Lutz Head of Swiss Re Institute, Swiss Re Management Ltd Director, Museum Rietberg

Stefan P. Butz Nicolas Oltramare Chief Executive Offi cer, DKSH Urs Rohner Daniel Daeniker Chairman of the Board of Directors, Credit Suisse Group AG Senior Partner, Homburger AG Jürg Schaeppi Markus U. Diethelm Group General Counsel and Member of the Group Executive Board, Herbert Scheidt UBS Group AG Chairman of the Board of Directors, Vontobel

Andreas Feller Prof. Dr. Gerhard Schmitt Head Private Banking Zurich, Eastern Switzerland & UHNWI, Bank Professor of Information Architecture, ETH Zurich, Director, Julius Baer & Co. Ltd Singapore-ETH Centre, Singapore

Stephan Howeg Prof. Dr. Christian Schwarzenegger Chief Marketing & Communications Offi cer, The Adecco Group Vice President, Faculty Affairs and Scientifi c Information, University of Zurich

22 | Foundation Board

Adrian T. Keller, President Chairman of DKSH and Vice Chairman of Diethelm Keller Holding Ltd, a family holding company, and anchor shareholder of DKSH, a listed MES company in Asia. Since 2000, he is Vice Chairman of Diethelm Keller Holding Ltd, and earlier a Board Member of the predecessor company. In addition to holding various family business related Board seats, Adrian Keller is Vice Chairman of Bergos Berenberg Bank AG and is Chairman of Baur & Cie, a private real estate company. Among his pro bono involvements, he is a Trustee of Asia Society (Global) and a member of the Executive Board of the Swiss American Foundation.

Raymond J. Baer, Vice President Honorary Chairman of the Board at Julius Baer Group. He held various executive positions within the Julius Baer Group Ltd abroad and in Switzerland, lastly as Head of Private Banking Business Line, and Member of the Group Executive Board. He is a former Chairman of the Board of Directors of the Julius Baer Group and a former Board Member as well as a former Member of the Committee of the Governing Board of the Swiss Bankers Association.

Patrick Balkanyi Partner at PwC Switzerland. He is in charge of the PwC TMT practice (Technology, Media and Telecommunication) in Switzerland. Besides he is member of the Executive Board of the Commission of Swiss GAAP FER. He lived for a couple of years in Hong Kong before he moved back to Switzerland.

Esther Heer-Zacek Committee Member of the Friends of Hong Kong Museum of Art, Non-Executive Director of the Sovereign Art Foundation and a member of the TATE Asia Pacifi c Acquisition Committee. Esther Heer-Zacek is the former Deputy Chief Executive Offi cer of BSI Bank Ltd Asia and a Member of the BSI Group Advisory Board. She was responsible for building BSI North Asia as the group strengthened its presence in the region.

Annette Schoemmel Founder of XanaduAlpha, an alternative-data investment vehicle in Zurich. Founding partner and Managing Director at global strategist arthesia AG, and founding partner and Managing Director of Babaluba AG, an industrialist group that invests in and starts companies that are positioned on the fault lines of future developments.

Dr. Uli Sigg Former Swiss Ambassador to China, North Korea and Mongolia, Vice Chairman of the Board of Ringier, and Member of the Advisory Board of China Development Bank, of the International Council of the Museum of Modern Art (MoMA) in New York, and of the International Advisory Council of Tate Gallery in London. He is the world’s foremost collector of contemporary Chinese art.

Dr. Peter F. Weibel President of UZH Foundation, the Foundation of the University of Zurich, since 2012. Former Chief Executive Offi cer of PricewaterhouseCoopers Switzerland and former Member of the Board and the Audit Committee of Credit Suisse Group. He also serves on the Senior Advisory Council of the Swiss- American Chamber of Commerce.

Eunice Zehnder-Lai Member of the Board of the Geberit Group, Member of the Board of DKSH, and Member of the Board of Julius Baer Group. Previously, she worked in the fi nance industry for 20 years for LGT Capital Partners, Goldman Sachs and Merrill Lynch, spanning the areas of asset management, private wealth management, and corporate fi nance in New York, London, Hong Kong and Zurich. | 23 Impressum

Text CCI Comms: ccicomms.com Asia Society Switzerland

Editing CCI Comms: ccicomms.com

Graphic Design Design Creation: designcreation.ch

Pictures André Hengst: on-eyes-photography.ch Sarah Urech: sarah-urech.ch Asia Society

Print Schneider Druck AG: schneiderdruckag.ch

Address Asia Society Switzerland Muhlebachstrasse 20 CH-8032 Zurich [email protected] asiasociety.org/switzerland