Beijing: Chinese President Xi Jinping and Swiss President Guy Parmelin have welcomed an upgraded free trade agreement aimed at expanding Switzerland's access to the Chinese market, as both countries seek to strengthen economic cooperation amid growing global trade tensions.
The upgraded agreement will allow 99.8 per cent of Switzerland's current exports to enter China duty free, compared with around half under the existing arrangement. The development is expected to create new opportunities for Swiss businesses seeking to expand their presence in China.
The two leaders discussed the agreement during their meeting in Beijing on Friday. They presented the development as an important step towards strengthening bilateral economic relations and supporting international trade cooperation.
Xi said the agreement reflected political courage and a sense of responsibility in supporting open cooperation. He also expressed support for stronger economic relations between China and Europe, highlighting the importance of greater certainty in the global economy.
Parmelin welcomed the progress, describing the agreement as a positive milestone that responds to the practical needs of Swiss businesses and other stakeholders. He also expressed hope that the foreign ministers of both countries would hold their next strategic dialogue later in 2026.
The upgraded agreement follows negotiations that began in September 2024. Both governments announced the conclusion of the negotiations on August 20, 2026, after five rounds of discussions.
The revised arrangement covers several areas, including trade in goods and services, investment, digital trade, competition, rules of origin and trade facilitation. It also includes stronger provisions on environmental protection and labour rights.
The improved market access is expected to benefit several important Swiss export industries, including watchmaking, pharmaceuticals, chemicals, machinery and precision instruments. These sectors play an important role in the country's export economy and have significant commercial interests in China.
The agreement is also expected to create better opportunities for Swiss companies seeking to expand their presence in the Chinese market. However, it will still require domestic approval before its provisions can be implemented. Its tariff benefits should not be understood as an immediate removal of all trade barriers.
The revised agreement builds on the free trade agreement signed by China and Switzerland on July 6, 2013, which entered into force on July 1, 2014. That agreement was significant because it was China's first free trade agreement with a continental European country.
The two countries have continued to develop their economic and diplomatic relationship over the years. In 2016, they established an Innovative Strategic Partnership, providing a wider framework for cooperation in trade, technology and other areas.
The latest development comes at a time when international trade relations are facing increasing uncertainty. Several major economies have introduced tariffs and other protective measures, raising concerns about the future of global trade.
Switzerland has also faced difficulties in its trade relationship with the United States. US President Donald Trump imposed a 39 per cent tariff on Swiss exports before the two countries reached a provisional arrangement in November 2025 that reduced the rate to 15 per cent.
The improved trade arrangement with China could help Swiss businesses diversify their export markets and reduce their dependence on particular trading partners. However, negotiations began in 2024, before the US tariff measures introduced in 2025, meaning the agreement was not simply a response to Washington's trade policies.
The development also carries wider significance for China's relationship with Europe. Beijing has been seeking to strengthen economic partnerships with European countries while facing trade disagreements and political tensions with several Western governments.
Switzerland is not a member of the European Union and maintains an independent trade policy. Its agreement with China therefore represents a separate bilateral arrangement rather than an agreement covering the entire European market.
The revised deal has also raised questions about its possible impact on European trade. Some observers have expressed concern that Switzerland could serve as a route for Chinese products entering other European markets. However, Switzerland has rejected suggestions that the agreement will turn the country into a centre for re exporting Chinese goods.
The Swiss government has maintained that the revised arrangement does not provide new tariff advantages for Chinese industrial goods entering Switzerland.
The agreement comes amid continuing differences between the two countries over human rights and other sensitive issues. Switzerland and China held their 19th round of bilateral human rights dialogue in October 2026, demonstrating that economic cooperation continues alongside discussions on political and social concerns.
Parmelin's visit to China is scheduled to continue until November 1. His programme also includes meetings with senior Chinese officials responsible for commerce, education, science and technology, and labour affairs.
The visit highlights Switzerland's efforts to maintain strong economic and diplomatic relationships with major global powers while protecting its own commercial interests.
The upgraded free trade agreement marks another important stage in China and Switzerland's longstanding partnership. Its eventual impact will depend on the completion of domestic approval procedures, the implementation of its provisions and the ability of businesses in both countries to make use of the improved trading opportunities.