Swiss minister expects talk of market reforms

Johann SchneiderAmmann, Swiss economy minister

Premier Li Keqiang is likely to raise China's market reforms at the annual meeting of the World Economic Forum, according to Swiss Economy Minister Johann Schneider-Ammann. [Special coverage]

"I can imagine that Premier Li will mention the ambitious market reform program, which will also strengthen the competitiveness of Chinese firms by allowing more domestic and global competition," Schneider-Ammann told China Daily.

"As the world's second-largest economy, China also plays an important role in the further development of the global trade system," he said. "For a country with countless exporting businesses, a rules-based order, as provided by the WTO, is crucial, and China assumes its multinational responsibilities very judiciously."

He was speaking as Premier Li was set to attend the Davos forum on Wednesday. The forum, from Jan 21 to 24, will explore solutions to major global challenges under the theme "The New Global Context".

According to the World Economic Forum, more than 40 heads of state and governments will participate in the 280 sessions and workshops.

"The forum is an important platform for political and business leaders, providing them with an opportunity to address topical issues," Schneider-Ammann said. "The global economy faces some major challenges, as does the international political scene. I am confident that the annual meeting will once again contribute to seeking solutions and enhancing cooperation between partners."

Schneider-Ammann said he believes the annual meeting is a valuable event that allows Switzerland to foster contacts with partners, particularly China.

"Switzerland and China have, in fact, laid a solid foundation for growth in trade in recent decades," he said. "The most important cornerstone is the coming into force of the comprehensive China-Switzerland Free Trade Agreement on July 1 last year.

"Besides reducing the financial burden on exporters and importers in terms of tariffs, the agreement adds to legal certainty in trade between our two countries, and thus increases trust. And trust is the basis for sustained economic activity like investment. I therefore believe there are opportunities aplenty for Chinese and Swiss economic actors."

Economic relations between Switzerland and China have grown at a breathtaking pace during the past 40 years, since the first agreement on commerce.

"I am convinced that Switzerland and China have established the right conditions for their respective economies to grow," Schneider-Ammann said.

However, the minister also said that challenges remain.

"Right now the sharp appreciation of the franc poses a major challenge for the Swiss economy－particularly for the export industry," he said. "Some developments, such as those in the global or regional economy, are beyond our control, but some I can influence."

Global markets were left reeling on Thursday when Switzerland unexpectedly abandoned its currency ceiling against the euro. In one of the most damaging currency swings in the modern trading era, the Swiss franc soared in value, leaving investment banks across the world with big losses and hitting foreign exchange brokers particularly hard.

"Keeping the markets open, and resisting top-down interventionism and excessive bureaucracy, are some of the things I fight for," Schneider-Ammann said.