New Chinese Premier Li Keqiang arrived in Switzerland Thursday, having chosen it as his first European destination on a multi-country tour. The two nations, which have a historically good relationship, recently agreed on a free trade pact.
Foreign Minister Didier Burkhalter greeted Li at Zurich airport on Thursday evening, and the Chinese minister will meet with Burkhalter, Economics Minister Johann Schneider-Ammann and Swiss President Ueli Maurer on Friday. Li and Schneider-Ammann are expected to sign a document of intent as part of the free trade agreement.
The location of the meetings has been kept secret in an effort to prevent protests like in 1999, when throngs of Tibetan protesters gathered in front of the Federal Palace to demand Tibet’s freedom from Chinese rule. The demonstrations led the visiting Chinese president at the time, Jiang Zemin, to declare the Swiss had «lost a good friend» and caused a subsequent cooling in relations between the countries.
A small group of Tibetan protesters gathered at Zurich airport upon Li’s arrival on Thursday.
Accelerating progress
In an open editorial in the prestigious Neue Zürcher Zeitung, Li wrote that his visit sends a «strong signal» that China «wants to »accelerate« the implementation of free trade between the two countries.
Switzerland was one of the first Western countries to establish diplomatic relations and to enter joint ventures with China, the Chinese prime minister pointed out.
With the free trade accord Switzerland would be the first continental European country and the first from the 20 largest world economies to reach an important free trade agreement with China. Experts have described the deal as the most important for Switzerland in 40 years.
China is already Switzerland’s third major trading partner behind the European Union and the United States. A free trade agreement would further reduce tariffs and tolls and other trade barriers.
Switzerland is also one of the few Western countries to have a positive balance of trade with China in 2011, Swiss exports were $14.7 billion (CHF14.3 billion) and imports were $7.4 billion.
Switzerland primarily exports watches, engineering, pharmaceutical and chemical products to China, while importing textiles and machinery.
Trade relations
The details of the agreement are not known, but important issues for Switzerland include market access for industry and intellectual property rights, while China wants to boost sales of its agricultural products in Switzerland.
The watch industry is one particular sector claiming attention. According to the Federation of the Swiss Watch Industry, 40 million fake watches are produced every year in the world – many of them in China. The turnover of Swiss watch counterfeiters amounts to about CHF1 billion ($1.03 billion).
Li stressed that he also wants to intensify the cooperation between both countries in the financial sector. The countries have been discussion whether Switzerland could be established as a centre for the offshore trade of the yuan.
He also asks for understanding and trust and makes a case for an even more active exchange between companies, people and government of both states. In his article Li also reiterated that China continues to promote economic growth, human rights and the implementation of the rule of law.
He added that »there may be certain differences between us because of different histories, cultures and development levels, but we can complement each other with our strenghts.«
A final round of talks on the deal between the two countries ended earlier this month at a technical level. The accord is still to be signed by the government pending approval by parliament.
Li’s stay in Switzerland from Thursday to Saturday crowns a series of visits and exchanges between the two countries. Swiss President Ueli Maurer has said he plans to visit China later this year.