As of: 30.10.2026, 06:30 (Zurich time). The signing is scheduled for today in Beijing; details may change.
What is happening today
Swiss President Guy Parmelin meets Chinese President Xi Jinping in Beijing today. Straight after the meeting, the two countries are due to sign an upgraded version of their free trade agreement, according to the Federal Department of Economic Affairs via Keystone-SDA. Parmelin's working visit runs until 1 November and includes the 10th Swiss-Chinese Economic Forum, with a business and science delegation travelling with him.
The original agreement has been in force since 1 July 2014. Talks on improving it started in September 2024 and were concluded on 20 August 2026 after five rounds. Switzerland was the first European country to finish such an upgrade with China.
The imbalance it fixes
Under the 2014 deal, almost all Chinese goods already enter Switzerland duty-free. The reverse was not true: only 53.6% of Swiss exports to China get duty-free access today, according to the SECO factsheet on the upgrade.
The new version changes that in two steps:
77.5% of Swiss exports become duty-free on the day the upgraded agreement enters into force.
99.8% become duty-free once transition periods of five to a maximum of ten years run out.
SECO estimates the extra tariff savings at about CHF 244 million a year, mainly for watches, machinery and pharmaceuticals.
Who wins: watches, pharma, machines, cheese
The sector numbers in the SECO factsheet show how big the jump is. Duty-free coverage rises to 100% in each of these groups:
Watches: from 1.0% today
Pharmaceuticals: from 29.1%
Chemicals: from 50.4%
Plastics: from 52.9%
Machinery: from 74.7%
Precision instruments: from 85.9%
On the food side, cheese and roasted coffee also become duty-free, but only after a ten-year phase-out. Chocolate, wine and baby food were already duty-free.
One important catch for watchmakers: China's luxury tax is not covered by the agreement, SECO notes. Removing the import duty helps, but an expensive Swiss watch sold in China will still carry that separate tax.
Beyond tariffs, the upgrade adds rules on services, digital trade, competition and investment, including market access for Swiss investors in China. A new chapter on trade and sustainable development brings binding commitments on environment and labour, which the federal economics department calls "an important step forward" (our translation). The SP and the Greens have demanded binding protection of human and labour rights, Keystone-SDA reports.
Why it matters now: tariffs from the US
China is Switzerland's most important trading partner after the EU and the US. In 2025, Switzerland exported goods worth about CHF 15.2 billion to China, excluding gold, and imported about CHF 18.3 billion, per SECO.
The timing stands out. Since 24 July 2026, the US has charged a variable additional tariff that brings most Swiss goods to a total of up to 12.5%, with some sectors facing separate duties, according to SECO. In August 2025, the rate had briefly been 39%. Industry group Swissmem has warned that the US rate on Swiss goods is 2.5 percentage points higher than on EU goods, according to US News.
Against that, the China deal is unusually open. Reuters calls it one of the most favourable trade deals Beijing has granted a European country. Swissmem's vice director Jean-Philippe Kohl called it "a very, very good outcome." According to the same Reuters report, some European diplomats worry Switzerland could become a Chinese bridgehead into Europe. The Swiss government says it does not expect the deal to affect goods trade with the EU or the US.
Nothing changes tomorrow
A signature is not the finish line. Both countries must approve the agreement first. In Switzerland, parliament has to vote on it, which takes at least a year according to SECO as reported by Handelsblatt via Leitgrad. The decision is also open to an optional referendum, with 50,000 signatures needed within 100 days. No date for entry into force has been set.
What it means if you hold francs
For exporters and their staff: a strong franc makes Swiss goods expensive abroad. Lower tariffs in China partly offset that for watchmakers, pharma and machine builders, but only from the date the deal takes effect and, for many products, step by step over up to ten years.
For shoppers in Switzerland: little changes. Chinese industrial goods are already duty-free here. Some Chinese fruit, vegetables and juices get lower duties within existing quotas.
For investors: SECO's CHF 244 million estimate is small next to a CHF 15 billion export flow. The deal improves conditions; it does not by itself change company earnings or the franc in the short term. Watch the parliamentary timetable and any referendum.
For the bigger picture: Switzerland is spreading its trade risk. With US tariffs still not settled in a binding agreement, a stable China channel matters to an export economy that earns much of its income abroad.
What to watch next
The published treaty texts, which SECO says will be released at signing.
The Federal Council's message to parliament and the debate timetable.
Whether a referendum is launched.
Progress on a legally binding trade agreement with the US.
General information only, not investment, tax or legal advice, and not a recommendation to buy or sell any financial instrument. Figures come from the sources linked above. Independent; not affiliated with any authority or company mentioned.
General information only, not investment advice. · Allgemeine Information, keine Anlageberatung. · Information générale, pas un conseil en placement. · Informazione generale, non consulenza in investimenti.