China and Switzerland have reached a new trade agreement, under which China will exempt import tariffs on 99.8% of the current value of Swiss exports, covering key goods such as watches, pharmaceuticals, and high-precision instruments. Swiss investors will also gain greater access to the Chinese market. The agreement marks a significant upgrade in trade relations between the two countries and supports shares of Swiss companies with business tied to the Chinese market, especially luxury goods makers such as Swatch Group and Richemont. China is currently Switzerland's third-largest trading partner after the European Union and the United States, with bilateral trade last year worth about 34 billion Swiss francs, or around 43 billion dollars. The new agreement also adds provisions on labor rights and the environment in a chapter on sustainability, and for the first time China has agreed to reference the Universal Declaration of Human Rights within a free trade agreement. The two countries plan to formally sign the new agreement by the end of 2026.
Compagnie Financière Richemont SAChina exempts tariffs on 99.8% of Swiss exports, boosting Richemont's luxury goods sales in China.
The Swatch Group AGChina exempts tariffs on 99.8% of Swiss exports, boosting Swatch Group's watch sales in China.
