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What's the story behind the expression 'I'm Switzerland' that one uses when asked to pick between two sides?

Where did that originate?
And how is the expression perceived/taken by those who belong in the countries involved? Is it like a safe expression to use without hurting anyone? A joke maybe? Or was it meant to be offensive?
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It’s American saying and refers to their non involvement in war and is no insult.

being switzerland
"being switzerland" means being neutral in an argument or a discussion. derives from switzerland being neutral in the war.

https://www.urbandictionary.com/define.php?term=being%20switzerland
Casheyane · 31-35, F
@JustGoneNow Ah. Alright. So safe to use in stories. I know I can google, but I wanted straight answers from the actual citizens of the countries involved for more legit confirmation. Thanks!