Free trade: EU companies fear disadvantages due to Swiss agreement with China
Germany is warning about China's export surpluses, while Switzerland is betting on free trade. These contrasts in industrial policy can be risky for EU companies.
The Swiss government has signed a free trade agreement with China, which eliminates almost all tariffs on Swiss goods exported to China. The deal, signed by Swiss President Guy Parmelin and Chinese leader Xi Jinping, also guarantees equal treatment for Swiss companies investing in China. EU diplomats and industry insiders warn that the agreement could put EU companies at a competitive disadvantage, as Swiss companies will have better access to the Chinese market and cheaper imports of Chinese goods.
German President Frank-Walter Steinmeier, who was in Beijing on the same day, warned of the loss of European industry due to China's trade practices. The agreement may also create tensions between the EU and Switzerland, with the EU potentially pressuring Switzerland to adopt similar trade protection measures against China.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- Robert Habeck: "China has turned free trade into a trap" handelsblatt.com
