Switzerland Today
Dear Swiss Abroad,
We start the week with an in-depth, cross-border investigative report into the Chinese regime’s campaign to target critics living abroad, in which 42 media partners in 30 countries, including Swiss newspapers, took part.
Also, which Swiss cantons will be most affected by the US tariffs? One canton exports almost 42% of its goods to the US – and it’s not Basel City. Find out below!
Sunny regards from Bern,
This morning, the International Consortium of Investigative Journalists (ICIJ) and 42 media partners in 30 countries, including Swiss newspapers Tages-Anzeiger and 24 heures, published “China Targets”: a cross-border investigation into the Chinese regime’s campaign to target critics living abroad.
In Switzerland, a primary focus of the investigation looked into China’s influence within the United Nations, specifically the UN Human Rights Council in Geneva (UNHRC). “It is basically the only place where China can still be officially criticised by the international community,” writes the Tages-Anzeiger.
China is now the UN’s second-largest donor and has 106 accredited NGOs in the United Nations from mainland China. However, the investigation found that 59 of these NGOs are closely connected to the Chinese government – against the UN principle that NGOs should be independent. Of these, 46 are led by government officials, and ten receive primary funding from Beijing.
These “pseudo-NGOs”, as they are called in the report, are used to obstruct critics at the UNHRC. One Swiss researcher recalled arriving two hours early for a session on the re-education camps in China, only to find the space already “monopolised” by pro-Chinese NGOs, limiting critics’ access to the event.
The investigation also highlights how Beijing’s reach extends beyond the UN. China has the largest foreign diplomatic delegation in Switzerland, with 224 accredited staff – even more than the US, which has 183. According to Swiss intelligence services, this delegation includes numerous secret service agents involved in monitoring and intimidating dissidents.
Next week, the Swiss House of Representatives will decide on important aspects of taxation. The decisions could bring about a fundamental change in the Swiss tax system: in the future, all individuals could be taxed separately.
This means that married couples, even those with children, would no longer be regarded as an “economic community” and would have to complete two separate tax returns.
“Who has the most powerful lobby in Switzerland?” asks the Neue Zürcher Zeitung (NZZ). Unfortunately, dear Swiss Abroad, it is not you, but married pensioners. This group stands to benefit the most from the proposed reforms: while they make up only 14% of taxpayers, they would receive 35% of the tax relief that the proposed reform intends to bring forth.
Three groups are expected to be adversely affected: single individuals, both before and after retirement, and families where one parent earns most of the household income.
The potential US tariffs could impact some Swiss cantons more heavily than others. An overview by Blick analyses which cantons have the highest flow of goods to the US – and thus stand to be most affected.
It is not surprising that Basel City is Switzerland’s largest exporter to the US. According to 2023 figures from the Federal Office for Customs and Border Security, of the CHF84.6 billion ($102 billion) worth of Swiss goods exported in 2023, CHF16.1 billion came from Basel City, mainly from the pharmaceutical giants Roche and Novartis. Well over half of Swiss goods exported to the US are accounted for by the pharmaceutical industry.
However, a perhaps surprising canton is set to be particularly impacted: Nidwalden in central Switzerland. Thanks in large part to Pilatus Aircraft AG, which generates almost half its revenue from sales in the US, over 41% of all exports from Nidwalden went to the US in 2023. This makes the US market more important for Nidwalden than for any other canton by percentage. Neuchâtel follows, with almost 25% of its exports going to the US.
Steven Wood, founder of the New York investment firm GreenWood Investors and candidate for the board of directors of Swatch Group, says the watch company suffers from a “closed culture” and would benefit from bringing in new executives with fresh ideas.
“Swatch Group has disappointed its investors for years,” Wood told The Market by NZZ. Wood goes on to say that he has already approached Nick Hayek Jr., CEO of Swatch, and encouraged him to be more transparent towards investors. He believes the company must focus on creating a best-in-class customer experience and emphasising scarcity and exclusivity.
He highlights the fact that the high-end watch market (watches priced over CHF3,000 or $3,600) has grown by 6.5% annually – a market segment where Swatch should concentrate its efforts.
An argument against Wood’s candidacy is that he is not Swiss, nor does he have a background in Swiss industry. However, Wood counters that over 90% of Swatch Group’s revenues come from outside Switzerland. He also notes that the Swiss code of best practice calls for greater board diversity.
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
