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Parliament calls for a level playing field for Swiss investments in China. The Federal Council should speak plainly.
Whether the chemical company Syngenta or the football club GC – these and many other Swiss companies have been taken over by Chinese investors. This shopping spree startled Swiss politicians. Because investments from Switzerland to China are limited.
That should change now. The National Council today approved a proposal from the Council of States to ensure an even playing field between the two countries.
The current strategy
Switzerland is pursuing a two-pronged strategy in China: it is conducting a human rights dialogue with China, for example on the oppression of the Uyghurs. At the same time, it pursues an active trade policy and was the first European country to conclude a free trade agreement with China in 2014.
The agreement has contributed to China becoming Switzerland’s third most important trading partner. However, the Swiss economy, especially the SMEs, felt increasingly disadvantaged, supporters emphasized: Swiss companies could not buy and invest in China the same way China does in Switzerland.
The signs for this are good, emphasized Freiburg National Councilor Christine Buillard Marbach (Die Mitte): “The Federal Council and the administration also recognize that there has been progress in recent years and that China has also opened certain sectors to foreign investors.” Buillard Marbach cited the EU as an example. It has signed an investment agreement with China but has put ratification on hold.
Authorization required, but not full reciprocity
The Swiss parliament has already reacted earlier to the takeovers of Swiss companies by the Chinese. Foreign investments must be checked by an approval authority in the future.
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The best-known case: Chemchina took over the Swiss Syngenta group in 2017 for 43 billion dollars. Chemchina President Ren Jianxin on June 27, 2017 after announcing the acquisition in Basel.
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warning voices
That is why Laurent Wehrli, FDP national councilor from Vaud, found it hypocritical to limit China and at the same time to want to demand more freedom for Switzerland.
If there are further negotiations with China, Wehrli sees another danger. A rigid demand for reciprocity could result in Chinese companies being given the right to take over Swiss educational and healthcare facilities.
Parmelin: missing maneuvering mass
According to Wehrli, it is also tactically inappropriate to give the Federal Council a specific mandate for negotiations with China. SVP Economics Minister Guy Parmelin picked up this ball and said that having no maneuvering mass was counterproductive.
But the resistance did not find a majority. Both chambers of parliament are now forcing the Federal Council to ensure an even playing field with China.