Swiss companies continue to focus on China

The study “The Swiss Business in China Survey 2025”, conducted by the China Competence Center at the University of St.Gallen (HSG), examines the situation and expectations of Swiss companies doing business in China. It analyses investment intentions, competitive conditions, innovation dynamics and legal and regulatory frameworks.

The overall result shows that Swiss companies remain confident about China in the long term, even though margin pressure, competition and geopolitical risks are increasing.

Swiss companies in China

Regarding Swiss companies in the People's Republic of China, the following points are highlighted:

1. Swiss companies remain confident about China despite more difficult conditions.
   Despite geopolitical challenges, companies remain optimistic, especially with regard to the next five years (confidence index 7.24 out of 10 points), even though sales growth is weaker and profit margins are falling.
2. China remains an important investment destination for Swiss companies.
   Around half (51 %) of respondents rank China among their top three global markets for future investment. Only 10 % of companies plan to reduce some of their planned investments for geopolitical reasons, while 42 % intend to increase their investments – compared to 35 % in 2024.
3. Competition has intensified significantly and Chinese competitors are rapidly catching up in terms of innovation.
   Over the past three years, Chinese companies have become much stronger competitors, particularly in advanced manufacturing, electric vehicles, biotechnology and mechanical engineering. A key reason why 87 % of the companies surveyed see the “intensified competitive situation” as the most important external factor of change is that the technological gap is closing and local companies are now competing strongly in terms of product quality, branding and research and development.
4. The pressure to localise production is increasing.
   Swiss companies report rising expectations to produce locally in China, while they perceive the regulatory framework as more balanced overall.
5. China has become a large-scale innovation hub.
   Government policy, high spending on research and development, and programmes such as “Made in China 2025” have transformed China from a manufacturing hub to a global technology leader, particularly in electric vehicles, artificial intelligence and patents.
6. Revenue expectations are rising, but profits remain the same.
   43 % of respondents expect higher revenues in 2025, compared to 21 % who expect declines (balance +22 %), while only 29 % expect higher profits and 27 % expect lower profits (balance +2 %). This points to declining margins.

Chinese companies in Switzerland

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. The following assessments emerged: 

• Switzerland is valued as a strategic location for market entry and positioning in Europe.
• The focus is less on short-term profit maximisation and more on establishing a long-term presence.
• There is particular interest in access to management expertise and know-how, rather than physical production facilities.

The study partners include institutions such as the Swiss Chamber of Commerce, whose president, Robert M. Wiest, highlights the market opportunities arising from the traditionally high-quality products of Swiss companies. However, “a strong product alone is no longer enough for the Chinese market,” says Nicolas Musy, delegate of the board of directors of the Swiss Centers Group, the leading non-profit Chinese-Swiss public-private partnership supporting Swiss companies in China. “Swiss companies can only secure their competitive advantage if they accelerate innovation and adapt more quickly to the pace of their Chinese competitors.”

Krystyna Marty Lang, Swiss Ambassador to the People's Republic of China, comments on the robust framework conditions defined by the free trade agreement between China and Switzerland in the foreword to the study. She emphasises that, “the Swiss government remains committed to promoting trade and investment and contributing to an open and reliable framework for economic exchange.”

The China Competence Center at the University of St.Gallen is anchored in the Institute for International Management and Diversity Management (IIDM), acts as a bridge builder and focuses on research projects such as “The Swiss Business in China Survey” and on the sustainable value creation of Chinese elites, which shape the content of its executive education programmes.

The study “The Swiss Business in China Survey 2025” is available for download online.