China and Switzerland have completed negotiations to upgrade their free trade agreement, opening a new chapter in bilateral economic cooperation.

The two countries signed a memorandum of understanding on August 20, agreeing to sign the upgraded FTA protocol as soon as possible.

The original China-Switzerland Free Trade Agreement was signed in 2013 and took effect in 2014. It was China’s first comprehensive free trade agreement with a country in continental Europe.

Over the past decade, the agreement has helped boost bilateral trade and investment. Chinese customs data shows trade between the two countries grew by 44%, from $43.57 billion in 2014 to $62.77 billion in 2024. More than 1,000 Swiss companies are now operating in China, with actual investment exceeding $11 billion.

The upgraded agreement is expected to expand opportunities in goods and services trade, investment, digital trade and green development.

Further tariff reductions, improved rules of origin and trade facilitation measures are expected to help lower costs for businesses and make it easier for companies, particularly small and medium-sized enterprises, to access each other’s markets.

The upgrade comes as global trade faces growing uncertainty and protectionist pressures. The two countries' decision to deepen rules-based trade cooperation sends a signal in support of openness and free trade.

The agreement could also have significance for broader China-Europe economic ties, given Switzerland's central position in Europe and its role in the European Free Trade Association.

The formal signing of the upgraded protocol will pave the way for deeper China-Switzerland economic and trade cooperation in the years ahead.

(Tu Xinquan and Du Yingxin work for the China Institute for WTO Studies at the University of International Business and Economics in Beijing, China. CGTN reporter Li Shuang also contributed to the article.)