China offers Swiss companies significant growth opportunities. Yet entering this market requires preparation: even with the free trade agreement, barriers and regulations remain. Exporters should be aware of the practical requirements and the risks that come with doing business in the People’s Republic.
China ranks third among Switzerland’s top export markets
For Swiss companies, China remains a highly profitable destination. In 2024, almost 10% of all Swiss exports went to the Chinese market, representing goods worth more than CHF 37 billion.
This makes China Switzerland’s third-largest export market, behind the United States and Germany. And the potential is far from exhausted. According to Swiss Global Enterprise (S-GE), several factors will continue to drive China’s appeal in 2025:
- Strong ongoing GDP growth.
- A vast market of more than one billion consumers.
- Increasing openness to foreign investment.
- An unparalleled supply chain, especially in manufacturing.
- Major public and private investment in R&D and innovative technologies.
The free trade agreement simplifies Swiss exports to China
Since the free trade agreement came into force in 2014, Swiss companies have enjoyed significantly better market access to China than many of their competitors from other industrialised countries. The deal gradually reduced – and in some cases eliminated – tariffs on a wide range of products.
According to federal data, the main beneficiaries so far have been firms in the pharmaceutical industry, mechanical, electrical and metal engineering (MEM), as well as watchmaking, jewellery, and gold exporters.
In autumn 2024, the Swiss and Chinese governments launched talks on expanding the agreement. These discussions focus on removing additional tariffs on industrial goods and simplifying the complex rules of origin. However, it is still uncertain how long the negotiations will take and what the chances of success are.
Requirements for exporting to China
Even with the free trade agreement in place, exporting goods to China remains complex. To ensure smooth customs clearance, companies must comply with several key requirements.
Advance customs declaration: goods must be registered in advance with Chinese customs via the China E-Port system. Deadlines vary by transport mode. For instance, container shipments by sea must be declared at least 24 hours before loading.
Certificate of origin: products covered by the free trade agreement require proof of Swiss origin to benefit from preferential tariffs.
Import licence and CCC certification: certain goods require an import licence. The Chinese Ministry of Commerce maintains a list of such products (available only in Chinese).
In addition, vehicles, safety equipment and electronic devices must undergo China Compulsory Certification (CCC) before being imported. The certification authority provides an updated list of all products subject to this requirement.
Detailed packing list: each shipment must include a document specifying the exact quantities, dimensions and details of the goods.
Mandatory information on the commercial invoice: beyond the standard details, invoices for exports to China must also include:
- the HS code and country of origin,
- the value of the goods (FOB value, CIF costs and CIF value),
- the port of destination,
- the reference numbers of the packing list and the contract,
- the exporter’s authorised signature.
To help exporters, Swiss Global Enterprise provides a comprehensive downloadable checklist.
Additional details on customs regulations for trade with China can also be found in the customs database. (Registration with S-GE is required for access.)
Key risks when exporting to China
While China offers strong growth prospects, exporters should be aware of several risks:
- The long-standing strategic and geopolitical rivalry with the United States, which has already led to sanctions and export bans on certain products such as semiconductors. Further escalation cannot be ruled out.
- Heavy reliance on imports for many critical technologies, making the economy vulnerable to deteriorating trade relations.
- High levels of corporate debt in China, which may weigh on growth.
- Strict regulations governing international payments, adding complexity to cross-border transactions.
- Longer payment delays: Coface data shows that in 2024, payments were made on average 65 days past due.
Coface’s Country Risk Report on China provides a clear overview of the current economic situation and sector-specific risk assessments.
How to safeguard your exports to China
As in any international trade, risk prevention is key. Trade credit insurance provides companies of all sizes with tailored protection against payment defaults by Chinese partners. It ensures comprehensive coverage in cases such as:
- political events or natural disasters,
- non payment and insolvency,
- disputes over the validity of receivables.
When payments are not made, pursuing claims in China is often challenging for foreign companies. Language barriers, very different legal systems and complex procedures all add to the difficulty.
This makes local expertise crucial. Coface has dedicated teams in China that support businesses in recovering outstanding debts, combining on-the-ground knowledge with direct access to the right institutions.
Contact us now for expert guidance to navigate the Chinese market and protect your exports.
