Swiss synergy

Academics, lawyers and industry leaders from Switzerland have also pinned high hopes for an early FTA. Rudolf Minsch, an economist at the Swiss Business Federation, says the FTA will benefit both nations.

Minsch says the FTA will make it easier for Swiss multinationals to decide on their global supply chains and decide which parts have to be produced in which country.

"As to their being reintegrated into the whole supply chain, if there is such an agreement, it makes it much more easier," he says.

It will also be beneficial for Swiss companies as they can choose China as a transfer location for exports to other countries. Minsch feels that the FTA would be particularly beneficial to Swiss companies in sectors such as machinery, pharmaceuticals and watches.

"Industrial sectors from both nations will benefit from the joint and convenient services that the Chinese and Swiss financial sectors will offer. In the longer term, this is of strategic importance when one talks about the internationalization of the renminbi," Minsch says, adding that China can learn from Switzerland's strengths in banking and financial management.

Minsch says China's growth has been mostly spurred by government investment, and that private savings have had very little impact on growth.

If China is changing its development model to a domestic consumption drive, then financial services are an important tool to achieve the goals. "I am convinced that the FTA is crucial for the development of China in the next decade."

Kaven Leung, the North Asia chief executive of Zurich-based Bank Julius Baer & Co Ltd, says his bank has already signed an agreement with the Bank of China in Switzerland after BOC stopped its operations in Switzerland and transferred the operations of BOC (Suisse) SA to Julius Baer.

"The purpose of the partnership with BOC is to partner with one of the top players in China and to gain further access to one of the world's most important and fastest growing wealth markets," says Leung, adding that Julius Baer will be able to provide BOC's clients with international private banking services outside China.

Julius Baer clients who require domestic banking services in China, or those who need specific non-private banking products and services offered by BOC internationally, will benefit from the bank's arrangement with BOC.

"China is a compelling market with an abundance of wealth management opportunities for Julius Baer," Leung says.

According to Leung, Julius Baer chose Shanghai as its China base as it is the main financial and business center in China.

"We will leverage on this foundation to explore more opportunities within China," Leung says.