Investing.com — Swiss companies are planning to increase investments in China’s pharmaceutical, financial and manufacturing sectors as Beijing and Bern strengthen economic ties through an upgraded free-trade agreement, China’s Commerce Ministry said Saturday.
Business representatives accompanying Swiss President Guy Parmelin on his visit to Beijing identified pharmaceuticals, machinery manufacturing, finance, watches and the green transition as areas for expanded investment and cooperation with Chinese partners.
The investment plans emerged following Parmelin’s meetings with Chinese President Xi Jinping and Commerce Minister Wang Wentao on Friday.
Xi expressed China’s willingness to strengthen cooperation with Switzerland in digital industries, green energy storage and artificial intelligence, according to state broadcaster China Central Television.
The Chinese leader also urged Switzerland to play a constructive role in strengthening Beijing’s trade relations with Europe.
The discussions coincided with the signing of a protocol upgrading the bilateral free-trade agreement, which is expected to expand market access for businesses in both countries.
Under the revised agreement, products benefiting from zero tariffs will eventually account for more than 99% of the total value of bilateral trade.
China will gradually eliminate tariffs on several Swiss exports, including coffee, machine tools and watches, potentially improving the competitiveness of Swiss manufacturers and consumer goods producers in the Chinese market.
Switzerland will also provide more favorable tariff treatment for selected Chinese agricultural and consumer products, including oilseeds, vegetable oils and pet food.
The agreement represents a further strengthening of commercial relations between China and Switzerland as Beijing seeks closer economic partnerships with European countries.
For Swiss companies, the expanded trade arrangements could create opportunities to increase sales and investment in China’s large consumer and industrial markets.
The proposed investments in pharmaceuticals and machinery manufacturing also reflect continued interest among Swiss businesses in China’s healthcare and industrial sectors.
The upgraded agreement builds on existing trade relations between the two countries, with its tariff provisions set to take effect gradually as the revised arrangements are implemented.
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