Switzerland 2014 (English & Chinese)

Dieter Gericke, Felix Dasser, Marcel Dietrich, Reto Heuberger and Martin Grod

Homburger

1. Why should Chinese businesses be interested in Switzerland?

• Switzerland was among the first non-communist countries to recognise the People's Republic of China in early 1950. Swiss companies have been among the first to invest in China. In 2013, the two countries signed a Free Trade Agreement (FTA) which is expected to enter into force in 2014.
• Internal stability, external neutrality and tradition of government non-interference.
• Independence (not part of the European Union), open market and own currency (Swiss Franc).
• Tradition of successful companies and entrepreneurship combined with innovation, top-notch technology and developed financial services.
• Business friendly and reliable civil law system with economic freedom and freedom of contract. Chinese civil law has partly been based on German and Swiss law.
• Swiss law is often used as a neutral, predictable and flexible law for international contracts with or without a Swiss angle. It is the number one substantive law in ICC arbitrations.
• Transparent legislation with no overregulation of business and markets.
• Cooperative authorities and no corruption.
• Reasonable tax rates.
• Excellent education and flexible labour market.
• Highly-developed place of arbitration and litigation.
• Numerous small and large companies from all over the world, including China, the US, the EU, Japan, Russia, India, Middle East, Latin America and Africa invest or list in Switzerland, acquire Swiss companies, use Swiss law for international agreements or choose Switzerland as a hub for their international activities or for dispute resolution.

2. To what extent is foreign involvement in M&A transactions in Switzerland regulated or restricted?