Sino-Swiss FTA upgrade widens access to markets

The completion of negotiations to upgrade the China-Switzerland Free Trade Agreement will inject fresh momentum into bilateral trade and investment, reinforcing both countries' commitment to openness amid rising protectionism and global trade uncertainty, experts and business leaders said on Friday.

China and Switzerland concluded their negotiations to upgrade the FTA in Bern on Thursday, with Commerce Minister Wang Wentao and Swiss President Guy Parmelin signing a memorandum of understanding, according to a statement released by the Ministry of Commerce.

Parmelin, who also heads Switzerland's Department of Economic Affairs, Education and Research, said the move sends a positive signal for both sides to promote open cooperation and free trade and uphold a rules-based international economic and trade environment.

The two countries started negotiations in September 2024. After five rounds of talks, the upgraded agreement is set to provide a higher level of two-way opening-up in areas including trade in goods and services, rules for investment and trade, and the creation of new opportunities for bilateral economic and trade cooperation, said the ministry's statement.

Liu Zhiqin, a researcher specializing in international trade at Renmin University of China in Beijing, said the conclusion of the talks carries wider significance, showing that China and European economies can deepen mutually beneficial cooperation through dialogue and accommodate each other's concerns despite growing strains in the global trading system.

Li Siqi, an assistant professor of trade policy at the University of International Business and Economics in Beijing, said that Switzerland has long been at the forefront of Europe's economic engagement with China, with the upgraded agreement showing the willingness of both sides to share opportunities and expand the scope for mutual gains.

The China-Switzerland FTA was signed in July 2013 and took effect in July 2014. It was the first FTA China signed with a country in Europe. A decade after the agreement took effect, the value of Sino-Swiss trade increased 44 percent to reach $62.77 billion in 2024.

The value of annual trade averaged more than $50 billion between 2021 and 2025, with Swiss exports of watches, machinery, gold and organic chemicals posting notable growth, according to data from the Commerce Ministry.

Data from the General Administration of Customs shows bilateral trade value soared 159.8 percent year-on-year to $72.77 billion in the first seven months of 2026, driven by a 191.6 percent surge in China's imports from Switzerland.

According to the ministry statement, following the conclusion of the negotiations, China and Switzerland will complete their respective domestic procedures to facilitate the early signing of the upgrade protocol.

Business leaders in both countries said the upgraded FTA could provide a stronger foundation for companies to expand their operations and pursue new commercial opportunities in each other's markets.

Eric Bernard, CEO of the Swiss hearing care company Sonova, said the group will step up its localization efforts, expand its application of artificial intelligence and accelerate digital innovation in China, as the country plays an increasingly important role in its global growth strategy.

Optimism over the Chinese market is continuing to draw more foreign direct investment. Data released on Friday by the Commerce Ministry shows that FDI in high-tech industries leaped 32.7 percent year-on-year to 182.31 billion yuan ($27 billion) during the January to July period, accounting for 41.6 percent of the country's total FDI inflows.

During the same period, a total of 37,711 new foreign-invested enterprises were established across China, up 4.4 percent from a year earlier.

According to Ningbo Customs, Zhejiang Sanhe Kitchenware Co — a cookware manufacturer based in Ningbo, Zhejiang province — has expanded beyond its traditional export markets in Japan and the United States, making inroads this year into European markets, including Switzerland and Germany, with higher-end multifunctional products.

"We will step up investment in research and product development, deepen partnerships with premium brands and broaden our sales channels, as we seek to increase our share in the Swiss market," said Chen Yang, sales director of Sanhe Kitchenware.

zhongnan@chinadaily.com.cn