Switzerland has scrutinized the five most important countries in its Asia G20 strategy. However, only the Middle Kingdom is of any great importance.
Switzerland wants to diversify its partnerships outside of Europe, and Asia will play a central role in the global economic and security architecture in the future.
It therefore makes sense to analyze those individual countries more closely to see what is of interest.
Economic growth only in China
The Federal Council therefore adopted an Asia-G20 strategy for the first time.
This reflects Switzerland’s interests vis-à-vis China, India, Indonesia, Japan and South Korea.
However, anyone looking at the detailed report of that strategy – up to 2028 – will see that practically only the Middle Kingdom plays a real role.
Economic development shows upward trends in the gross domestic product of both India and Indonesia.
But everything is dominated by China, and Japan and South Korea are falling.
Beijing is also the main actor in other areas outside of just their economy.
EU as regional competition
Switzerland’s foreign trade with Asian countries can also be reduced to a single denominator.
It is China and it’s done – all other trade relations have stagnated about the same or declined since 2010. Although Switzerland boasts in the report that it has negotiated free trade agreements with all of these countries.
Even with countries such as South Korea, Switzerland notes that the free trade agreement between EFTA and South Korea – which came into force in 2006 – is now showing signs of fatigue.
This is due to more advantageous free trade agreements between South Korea and the European Union (EU). Seoul does not currently consider updating the agreement with EFTA to be of a priority.
Balancing act with Taipei
Switzerland sees great opportunities with China by expanding its economic, financial and scientific relations with China while at the same time nurturing a balanced and secure framework for cooperation.
The Federal Council wants to optimize the free trade agreement between Switzerland and China in order to improve market access and strengthen provisions in areas of labour and the environment.
Switzerland will continue to focus on pragmatic cooperation with Taiwan (Chinese Taipei) in the form of technical exchanges in the areas of business, science and culture, without antagonizing Beijing.
muula.ch recently reported on Switzerland’s balancing act with Taipei.
Don’t upset the others
Even if there are certain opportunities for individual Swiss companies in Japan, India, Indonesia and South Korea, it is clear that only China is important for Switzerland as a whole.
If Switzerland had negotiated a better free trade agreement a good 10 years ago that did not provide for so many exceptions and eternally-long transition periods, economic relations would probably have been even better right now, and both countries would have benefited more.
In its Asia-G20 strategy, the Federal Council nicely glosses over the fact that only China is actually of interest – but Switzerland does not want to spoil things with the others.
As we all know, every little detail helps a lot.
23.07.2025/kut./ena.
