The Swiss flag is one of only two square flags in the world.

At the heart of Europe high-tech Switzerland is well positioned to do business with China

Switzerland, while being a small, fiercely independent, neutral country, is often known for being picturesque, quiet, and unassuming. But it is not all that it seems at first glance - it is, in fact, much more.

A closer inspection reveals it to be a modern, global-thinking, high-tech powerhouse, one that is opening its doors to Chinese trade, culture and education.

It is hardly surprising that Switzerland is the only European country to have a positive trade balance with China: Swiss innovation in research and technical precision has helped it forge commercial relationships worldwide and now makes it a very competitive player in the Chinese market.

Switzerland and China also have many common interests including the desire to base economic growth on hard work, technology and education.

Both countries also have the ability, when working together, to tackle some of modern society's greatest problems in areas such as urban planning, climate change, and transportation.

During an official visit to Switzerland in early May, China's Foreign Minister Yang Jiechi joined the Swiss President Micheline Calmy-Rey in saying that Sino-Swiss relations were developing smoothly and that China had become Switzerland's largest trading partner in Asia.

Yang seemed keen to underscore that relationship as one of mutual respect and equality and said that the Chinese government places great importance on relations with Switzerland.

Calmy-Rey said she has often been told, when visiting China, that Switzerland is a very picturesque country. She said she agrees with this, but added, "It's certainly a picturesque country, but more important, we're a country with technology, innovation, and wide-ranging research skills. Switzerland has had the highest number of Nobel Prize winners in the world per capita, since 1950. The reality is that Switzerland is a very modern economy with great prospects for the future."

This modern reality of Switzerland is not just about its standing in the wider world, but also about welcoming the world, particularly China, to Switzerland.

Its central location in Europe and first-class infrastructure mean that there are many attractions for Chinese companies looking for a European hub.

Its job market is more flexible than those of its European neighbors and its universities produce highly skilled students, making it an attractive destination for Chinese investors.

Pascal Gentinetta, chairman of Eonomiesuisse, the country's largest economic umbrella organization, supported this by saying, "Switzerland is very flexible in labor market regulations, and our taxation is extremely favorable."

Special niche destination

This gateway to Europe is a choice destination for Chinese companies and investors. With the exception of its agricultural and food products, it has no restrictions on trade with members of the European Union (EU). Goods with a certificate of origin from one of the 31 EU member states and the European Free Trade Area (EFTA) - which Switzerland belongs to - can circulate freely without quotas and customs barriers.

Still, a European market is not the only thing Switzerland wants to offer China. According to its Federal Councilor Johann Schneider-Ammann, Switzerland can also attract China because it is a special niche destination.

"Switzerland is a leading country in various technology fields and the Chinese see this potential," Schneider-Ammann said, adding that, in spite of the cultural differences, the two countries share some important business characteristics.

"The Swiss share essential values with the Chinese in reliability, trust and precision."

These three qualities have driven technology and innovation growth for dozens of Swiss companies. Across China today, high-tech Swiss components are being used in the heavy industry, energy and transport sectors. One area where Switzerland is a world leader is in sustainable technology.

One example of a company that is helping to ensure that the country remains competitive in the midst of increasing concerns over resources and a changing global economy is Swisscleantech.

Its co-founder and president, Nick Beglinger, said he believes that population growth and the demand for a higher standard of living will force us to alter our approach to business and industrial production. And, as China's economy continues its spectacular growth, it may be able to learn a lot from the Swiss approach.

Areas of cooperation

Other areas of shared interest are urban development, architecture, and art. As China's great cities continue their construction boom, there is increased interest in other attitudes toward urban planning and architecture, such as those that Switzerland has provided.

Beijing's Olympic Stadium, known as the "Bird's Nest" was designed by the Swiss architectural firm Herzog & de Meuron.

As the Chinese approach to aesthetics grows, it is important to note that Chinese visitors to Switzerland are never far from fine art.

The city of Basel, for example, has one of the world's premier international shows for modern and contemporary artworks.

Art Basel has nearly 300 of the leading galleries from Asia, Africa, Europe and North and South America. This year's Art 42 Basel took place in June and had works of more than 2,500 artists on display.

Switzerland and Basel in particular have another strength that has resulted in growth and opportunity: Openness.

According to Guy Morin, president of the Canton of Basel, "When the global financial crisis hit, we became conscious of the fact that we had to be more open because we're an important export-oriented economy. Our results and our success are based on our relationships with the rest of the world."