Swiss companies plan to increase their investments in China’s pharmaceutical,
financial, and manufacturing sectors, as economic ties between Beijing and Bern strengthen following an updated free trade agreement, China’s Ministry of Commerce announced on Saturday.
Business representatives accompanying Swiss President Guy Parmelin on his visit to Beijing identified pharmaceuticals, mechanical engineering, finance, the watchmaking industry, and the green transition as key areas for expanding investment and cooperation with Chinese partners.
These investment plans emerged following meetings held on Friday between President Parmelin, Chinese President Xi Jinping, and Minister of Commerce Wang Wentao.
According to state broadcaster China Central Television (CCTV), President Xi Jinping expressed China’s readiness to deepen cooperation with Switzerland in fields such as the digital industry, green energy storage, and artificial intelligence.
The Chinese leader also urged Switzerland to play a constructive role in strengthening Beijing’s trade relations with Europe.
The talks coincided with the signing of a protocol to update the bilateral free trade agreement, a move expected to broaden market access for companies from both nations.
Under the revised agreement, goods subject to zero tariffs will eventually account for more than 99% of the total volume of bilateral trade.
China will gradually phase out tariffs on a range of Swiss exports—including coffee, machine tools, and watches—which could enhance the competitiveness of Swiss manufacturers and consumer goods companies within the Chinese market.
In turn, Switzerland will offer more favorable tariff terms for certain Chinese agricultural and consumer products, including oilseeds, vegetable oils, and pet food. The agreement represents a further strengthening of trade relations between China and Switzerland, set against the backdrop of Beijing’s push for closer economic partnerships with European nations.
For Swiss companies, the expanded trade terms could open up opportunities for increased sales and investment within China’s substantial consumer and industrial markets.
Proposed investments in the pharmaceutical and machinery sectors also reflect the sustained interest of Swiss businesses in China’s healthcare and industrial industries.
The updated agreement complements the existing trade relationship between the two countries, with its tariff provisions set to take effect gradually as the revised arrangements are implemented.