Just this Thursday, an announcement from Credit Suisse completely detonated the entire Western financial community. In the announcement, Credit Suisse acknowledged "significant procedural deficiencies" in its latest financial report and urged Swiss banks to provide it with the necessary financial support. In contrast to the fact that the SNB, the number one shareholder of Credit Suisse, refused to help.
While global public opinion is hotly discussing whether the successive thunderstorms of major Western financial institutions will repeat the mistakes of 2008, Switzerland, which is at the center of the whirlpool, instead of seeking assistance from the United States, came to China for help. On the day of Credit Suisse's announcement, the official website of our Ministry of Foreign Affairs updated a piece of information, although the location of this news is not conspicuous, but it has still received widespread attention. Hua Chunying, Assistant Minister of Foreign Affairs of China, met with visiting Director General of the Asia-Pacific Department of the Swiss Ministry of Foreign Affairs on the same day, and the two sides exchanged views on issues of mutual concern.
Credit Suisse Bank
On the same day, the official website of the Swiss Embassy in China posted on Weibo that as a country that has always adhered to dialogue and openness, Switzerland has established lasting and strong bilateral relations with many countries around the world, especially with China. If we look at Switzerland's statement alone, the other side's tone seems to be basically consistent with China's diplomatic stance, but the Internet has a memory, and Switzerland's position and means on China-related issues in recent years are still vividly remembered.
In 2019, Hong Kong was in turmoil due to the interference of external forces, and Switzerland, as a permanently neutral country, ignored the basic facts and grossly interfered in China's internal affairs; In 2020, Switzerland continued to point fingers at the election work in Hong Kong, and expressed so-called "concerns" in line with the propaganda pace of the United States; In 2021, the Swiss Federal Council brazenly adopted the first China strategy document in the country's history, systematically smearing, slandering and even slandering China; In 2022, after the outbreak of the "Pelosi incident", senior Swiss officials threatened to take economic sanctions far more than Russia against China once the Chinese mainland activated the armed unification. In just a few months, the clamor of senior Swiss officials still echoes in cyberspace, but the real world Switzerland runs to China to talk about "dialogue".
Credit Suisse's thunderstorm is no accident
This makes one have to sigh: drama needs logic, but reality does not. In fact, Switzerland sent diplomats to China to negotiate, not so much to let China help, but to convince the majority shareholder of Credit Suisse, the National Bank of Saudi Arabia, to provide more liquidity. The SNB publicly admitted in January this year that the original dividend plan had been cancelled due to a loss of $142.5 billion in 2022, and it was at this point in time that the SNB and the Federal Reserve conducted a ten-billion-dollar currency swap to fill the dollar hole of Credit Suisse.
Compared with the United States, which is difficult to protect itself, and the Swiss National Bank, which has "no surplus food", Saudi National Bank, as the number one shareholder, happens to hold trillions of dollars in foreign exchange reserves, which is the most suitable as a "firefighter". Given China's previous success in mediating the reconciliation of the century between Saudi Arabia and Iran, Switzerland sees us as a "mediator" and hopes that we can use our influence to persuade the Saudi government to "put out the fire." However, it is the United States, which is insecure on its own, that is the creator of this crisis.
The United States is once again at the center of this financial crisis
Switzerland's calculation is shocking, but they seem to forget that when Switzerland cooperated with the United States and froze the overseas assets of the Russian central bank, the fig leaf put on Switzerland as a "permanently neutral country" has been ripped off by themselves. Whether Credit Suisse can turn the corner next, we will wait and see.