Financing the Belt and Road Initiative
Opportunities and challenges for participating Swiss companies
The Belt and Road Initiative includes over 60 countries and is supposed to affect about two thirds of global population as well as one third of global GDP. In contrast, Switzerland is just a dwarf, yet with a prospering, export-oriented economy. What role can this country play in the initiative?
Gautschi, Tobias & Renner, Sabrina, 2018
Type of Thesis Bachelor Thesis
Client Swiss SME Research Center China (SSRCC)
Supervisor Freiburghaus, Teresa
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The Swiss SME Research Center China (SSRCC) supports Swiss SMEs which are interested in expanding their business to China. As a matter of fact, awareness of and interest in the Belt and Road Initiative among Swiss companies was found to be only limited. Due to the large scope and the mere importance of the initiative for the Chinese business environment, SSRCC wants to raise the attention of its clients and identify opportunities as well as challenges at an early stage. Therefore, an in-depth analysis of possibilities for Swiss companies to participate in related projects was requested.
General opportunities and challenges of participation in the Belt and Road Initiative were analyzed with information collected through a comprehensive desk research. Data sources such as academic journals, books, and websites represent the fundament of the analysis. In order to evaluate the possibilities for Swiss companies more specifically, interviews with experts from different industries and institutions in the field of international business in Asia were conducted. Based on the findings from primary and secondary data analyses, concrete recommendations for SSRCC were derived.
The thesis revealed that the Belt and Road Initiative consists of two waves of investments, both of which offer direct and indirect possibilities for Swiss companies of all sizes to participate in related projects. A cooperation with Swiss financial institutions seems to be possible and could provide Swiss companies with a competitive advantage. Nevertheless, a detailed analysis taking into account all risks and benefits of engagement needs to be conducted for each individual venture. As a result of low general interest in the initiative among Swiss companies, SSRCC is advised to actively inform its clients about possibilities of participation and raise their awareness of the risks and benefits included. Furthermore, as an early detection of opportunities can lead to substantial benefits for both SSRCC and its clients, keeping pace with up-to-date information was found to be of great importance.
Studyprogram: Business Administration International Management (Bachelor)
Keywords Belt and Road Initiative, China, Switzerland, Swiss companies, Business, Asia, Participation, Infrastructure, Construction, Import, Export, Benefits, Risks, Trade, Globalization, Economics, Politics
Confidentiality: vertraulich