China remains central market for Swiss companies

(CONNECT) The study “The Swiss Business in China Survey 2025” conducted by the China Competence Center at HSG has examined the situation and expectations of Swiss companies doing business in China. The results recently published in a statement show that Swiss companies remain confident about China despite geopolitical challenges. At the same time, margin pressure, competition and geopolitical risks are increasing.

Despite difficult conditions, Swiss companies remain optimistic about the Chinese market and China remains an important investment destination for Swiss companies. In fact, around half of respondents rank China among their top three global markets for future investment.

At the same time, Chinese companies have become much stronger competitors, particularly in advanced manufacturing, electric vehicles, biotechnology and mechanical engineering. “Competition has intensified significantly and Chinese competitors are rapidly catching up in terms of innovation” is one of the results highlighted. Furthermore, China has transformed from a manufacturing hub to a global technology leader. China is particularly pioneering in electric vehicles, artificial intelligence and patents.

Swiss companies report rising expectations to produce locally in China. While the revenue expectations of Swiss companies are rising, profits remain the same. To secure their competitive advantage, Swiss companies must adapt more quickly and accelerate innovation.

In coordination with the Swiss Chinese Enterprises Association, the study also examined for the first time how Chinese companies with branches in Switzerland assess their involvement. They found that Switzerland is “valued as a strategic location for market entry and positioning in Europe”. The focus is on establishing a long-term presence rather than short-term profit maximization. Chinese companies are particularly interested in access to management expertise and know-how. ce/nta