This project is unique, important and relevant as it focuses and investigates a timely, emerging and important phenomenon. It is unique as no in-depth study has been conducted so far about Chinese FDI in Europe and the direct and indirect impact on the competitiveness of Switzerland and Swiss companies. This project is insofar important and relevant as in order to stay competitive in this turbulent global economy, the Swiss government, Swiss industry associations and Swiss multinationals as well as the country’s small- and medium-sized companies need to understand the motives, modes of entry and the direct as well as the indirect effects of Chinese FDI on their competitiveness.
This project investigates four broad research streams: (1) Why do Chinese firms invest in Europe and Switzerland? (2) How do they enter Europe and Switzerland? (3) What is the direct and indirect impact on competitiveness for Switzerland and Swiss companies? (4) What political, economic and social strategies and actions should Swiss government and Swiss companies adopt to deal effectively with Chinese FDI? Answering those questions will help the Swiss Government, Swiss industry association and Swiss firms to better understand and deal with the changing competitive landscape and the growing prominence of China, China’s economy in general and specifically Chinese firms.

The research design we selected is descriptive, explorative and causal, consisting of theory-testing (deductive approach) and theory creation (inductive approach). It will be based on quantitative and qualitative research, including an assessment of current trends and patterns of Chinese FDI in Europe and Switzerland over the last 20 years. We will conduct comparative analyses between countries and industries based on secondary data. Through site visits, interviews and surveys conducted in China to collect primary data, we intend to investigate the motives and modes of entry Chinese firms when entering Europe and Switzerland. The project will produce policy recommendations for the Swiss government, business recommendations for the Swiss industry associations and firms on how to compete or collaborate with Chinese firms in Europe, especially Switzerland.

This project is interdisciplinary, bridging business and political science. The primary outcome will be both scientific and academic, consisting of theoretical and empirical work, including a book, case studies, and journal articles together with two international workshops/conferences as well as will organize, various brown bags and business matching meetings between Chinese and Swiss firms.