Trump, China, and the European Union: What Scenarios Lie Ahead for Switzerland?

28.01.2025

Previous newsletter article, week 05:

The recent trade and technology policy moves by Donald Trump, combined with tensions between China and the European Union, have triggered global dynamics that significantly impact Switzerland. Due to its strategic position as a financial and technological hub, the Confederation now finds itself in a critical situation in the face of these shifts.

This emerging scenario calls for careful analysis, especially for those currently investing—or planning to invest—in digital infrastructure. While the United States takes a hard stance against China and the European Union seeks to strengthen its technological autonomy, Switzerland finds itself needing to balance relations with all three power blocs.

Trump has promoted massive investments in artificial intelligence and digital infrastructure to secure U.S. technological dominance. At the same time, China is channeling enormous resources into AI (have you heard of DeepSeek?) and digital infrastructure, aiming to lead the global tech race.

The European Union, still unclear on how it will respond to new U.S. measures, is likely to continue focusing on regulatory frameworks that ensure the ethical development of emerging technologies.

Switzerland thus stands at a strategic crossroads: should it passively align with European policies, or leverage its traditional neutrality to create a competitive advantage?
This decision will shape its position in the global digital economy and its long-term ability to attract investment and talent.

Political developments concerning the European Union’s energy policy and the supply of critical electronic components will inevitably affect Switzerland’s technology industry. Switzerland’s energy supply is certainly more complex than it may appear, but its power grid—based on a balanced mix of nuclear and hydropower—seems more resilient than that of neighboring countries.

In the fintech sector, Switzerland is already implementing interoperability protocols that enable integration with various international regulatory frameworks.
A notable example is the adoption of open and shared standards for cloud services, ensuring compatibility with open interfaces or European-level interoperability norms. This approach facilitates data transfer and alignment with European Union regulations.

Moreover, Switzerland is actively working toward the creation of cross-border datacenters, collaborating with international partners to promote digital self-determination and a digital space in which citizens play a central role in shaping social and economic digital ecosystems. This commitment aims to ensure interoperability across borders and avoid the emergence of new digital barriers.

Switzerland can also play a key role in developing international technical standards by leveraging its neutrality to facilitate convergence between U.S., Chinese, and European protocols—especially in critical areas such as AI protocol standardization, interoperability of quantum computing systems, and cybersecurity frameworks.

The current situation presents an opportunity for Switzerland to solidify its role as a technology hub by relying on the stability of its energy infrastructure and its capacity to mediate international technical standards.

The key will be maintaining a balance between technological autonomy and international integration, turning Swiss neutrality into a technical and operational advantage in the digital age.