Today, Sino-Swiss cooperation is measured by the academic, scientific and trade exchanges between the two countries, and is likely to intensify during the impending Olympic Games. Dante Martinelli, Ambassador of Switzerland in China, was interviewed recently by Beijing Review, and opined that his country would widen the scope of its partnership with China, notably by launching a vast cultural program.

Beijing Review: Switzerland is one of the few Western countries that has recorded a trade surplus with China. China exports mainly textile products, tools, toys and sports equipment to Switzerland, whereas the latter exports processing machines as well as chemical and pharmaceutical products worldwide. What factors would you say have contributed to Switzerland's positive trade balance?

Dante Martinelli: The machine industry, along with the pharmaceutical and chemical industries, has traditionally been the pillar of the Swiss economy. Switzerland was the first country in continental Europe to enter industrialization. Due to Switzerland's lack of natural resources, the industry was forced to seek revenues in value-added processing at an early stage. Over time, this developed into high-precision and high-quality manufacturing, giving many Swiss companies the cutting edge -- for example, 60 percent of all textiles in airplanes are made in a small city in Switzerland. This specialization requires a highly skilled workforce -- therefore, Switzerland attributes high importance to the quality of both academic and vocational education.

What are the main forthcoming Swiss investment projects in China?

I do not have information on the latest investment plans of large Swiss companies, but it's a fact that the largest Swiss companies, such as Nestlé, the large banks like UBS and Credit Suisse, cement producer Holcim, and the large pharmaceutical companies such as Novartis, are all present in China and are setting up more and more important operations. Besides these, the Swiss SMEs are also investing in China.

How would you assess the general evolution of the investment environment in China?

China is of course an attractive country for foreign investment, and Switzerland is among the top 15 investor countries. Swiss companies came to China very early -- the first joint-venture between a Western and a Chinese company was established by Swiss elevator manufacturer Schindler. Over 300 Swiss companies with 600 offices are now present in China, employing more than 55,000 people. After the multinationals and large companies, more and more small- and medium-sized enterprises are establishing themselves in China. With the country's accession to the WTO, the legal environment for investment has definitely improved over the past few years, although certain problems are still pertinent, such as intellectual property rights protection.

On the economic front, in which sectors does Switzerland intend to consolidate its cooperation with China?

In banking and finance, which have been traditionally strong in Switzerland, we are expanding our presence in China, following the opening of the market. But Switzerland would also like to promote its environmental technology and know-how in China, where demand is growing and the need to protect the environment is a priority.

Bern was recently elected as the best city in Switzerland for Chinese companies to invest. Moreover, China now encourages national companies to invest outside of Chinese territory, instead of relying solely on foreign investment to further develop its economy. How do you see this metamorphosis?

That Chinese companies are venturing abroad is, I think, a symbol of China's rising economic strengths, but also a natural step in their development. You have to be close to the local market if you want to enlarge your share. Switzerland welcomes investment from China and would be happy to see more Chinese companies establish branches there. My country offers many advantages for setting up branches or regional headquarters. Not only does it can offer a highly developed infrastructure and a favourable location in the heart of Europe, companies also find a highly skilled workforce and enjoy comparably low taxes. The online sourcing portal Alibaba is a recent example of a Chinese company that has set up its European headquarters in Switzerland.

Two prominent Swiss architects, Jacques Herzog and Pierre de Meuron, recently completed the Bird's Nest in Beijing; they are renowned for their bold architectural innovation as well as for the technical feat implicit in the construction of such a building. Do you believe that there is some kind of Swiss touch common to the designs of such buildings around the world?

It gives me great pleasure that two Swiss architects were chosen to design and build the Bird's Nest. They stand for a generation of modern Swiss architects who have made a name for themselves internationally.

I don't think one could say there is a typical Swiss style in the works of contemporary architects from Switzerland, but it is true that many of them have earned a reputation internationally. Again, their success can be traced to the quality of education. The three schools of architecture in Switzerland -- the Swiss Federal Institutes of Technology in Zurich and Lausanne, and the University of Italian-speaking Switzerland in Mendrisio -- are centers of excellence in their field. They carry on a Swiss tradition in architecture going back to the 15th century.

Prior to the opening of the Beijing Olympics, numerous artistic events will create a preamble to a larger cultural program, "China 2008-2010". Could you please specify this event?

"China 2008-2010", a program directed by Pro Helvetia, the Swiss Arts Council, is aiming at fostering the cultural exchange between Switzerland and China. Its approach focuses on enabling in-depth experiences. It will enable Swiss and Chinese artists to work together and jointly produce a piece of art or a performance, thus establishing long-term links between Swiss and Chinese artists. The program will allow both the Swiss to come to China as well as the Chinese to go to Switzerland.

The Swiss community in China is growing all the time, and recently exceeded 3,000 citizens. Why do you think the Swiss are passionate about China?

The growth of the Swiss community in China is, of course, closely linked to the country's rapid economic expansion. More and more Swiss companies are establishing a presence here. Another factor is that general interest for China is rising fast in Switzerland. The number of students in Chinese courses is growing, and many young people are looking for opportunities for an internship or assignment in China.

The Beijing Olympic Games will definitely spawn a lot of opportunities for both China and Switzerland. How do you think China can avoid any possible glitches? Are the Swiss companies ready to make the most of this planetary sports event?

The Olympics as the largest international sports event constitute a challenge to any host city. A crucial factor for the success of the Games will be whether traffic can be managed smoothly, whether the control of air pollution is achieved, and whether there will be a festive atmosphere.

Switzerland will be present with a National House during the Olympics -- the House of Switzerland, which will be open to the public, and I sincerely invite everybody to visit us there. For those who want to experience my country, the House of Switzerland will be the next best thing to actually travelling to Switzerland.

Several private companies will present themselves inside this House of Switzerland as sponsors of the project.