In 2007, Switzerland was the first European country to recognize China`s full market economy. The free trade agreement between China and Switzerland reinforces this position and is seen by China as a major step forward in the pursuit of recognition of market economy status by its trading partners. In addition, the revolutionary free trade agreement serves as a model of economic cooperation with great timing, amid the anti-dumping tensions that have flared up between Beijing and Brussels. The free trade agreement between Switzerland and China came into force in July 2014. Below are publications, articles and articles from law firms and consulting firms that provide a general overview of the agreement. For more advice, please contact the companies listed below and the Swiss Business Hub. The free trade agreement also provides for measures that customs authorities must take to combat counterfeiting and piracy. The limits apply to trademark and copyright infringements, as well as patents and trademark infringements. In addition, the agreement sets standards for civil and criminal proceedings for the prosecution of offences and the recovery of damages. China`s concessions under the CSFTA in the area of financial services and insurance services – another important interest of Switzerland and the EU – are weak. In the area of insurance, there are no additional concessions to China`s accession protocol, although there is greater specificity in the provision of activities authorized by the Chinese branches of Swiss companies. With regard to financial services, additional concessions apply only to securities trading, allowing Swiss companies to act on behalf of qualified institutional investors (QDII) in China, provide advisory services and provide childcare abroad.
Swiss companies may also hold 49 per cent of joint ventures that carry out certain trade and subcontracting activities. In line with its commitments made by MFN WTO, the maximum participation of these joint ventures is 33%. Swiss joint ventures are also allowed to be subject to information, own-account trading and asset management transactions if they obtain the required authorisation. Sino-Swiss economic relations have accelerated since Deng Xiaoping`s economic reforms in the late 1970s.  Switzerland`s trade with China is not in deficit, as other industrialized countries trade with China. Two-way trade between the two countries is growing at an annual rate of 20-30%.  In 2007, Swiss exports were valued at 5.4 billion francs, or $5.36 billion.  China is now Switzerland`s largest trading partner in Asia, ahead of Japan.  The free trade agreement aims to increase the volume of trade between the two countries (trade volume in 2012: 18.1 billion francs) and to create new investment opportunities in both China and Switzerland. Although it is still too early to make a definitive assessment, the apparent impact of the CSFTA on trade between China and Switzerland has so far been modest at best. China and Switzerland do very little.
Their mutual trade intensity index, calculated by the World Bank`s WITS, shows that they both have a reciprocal value of less than 100, which means they do not perform well relative to their overall importance in world trade.