China and Switzerland signed a free trade agreement (FTA) in Beijing on July 6, capping over two years of negotiations. It is the first free trade pact inked between China and a country in continental Europe.

Once the FTA goes into effect, as much as 99.7 percent of Chinese exports to Switzerland will be immediately exempted from tariffs, while 84.2 percent of Swiss exports to China will eventually receive zero tariff treatment.

The deal is also expected to set new rules in the areas of environment, labor, intellectual property and government procurement, said Chinese Minister of Commerce Gao Hucheng.

Schneider-Ammann, head of the Swiss Federal Department of Economic Affairs, said the FTA will inject vitality into bilateral economic and trade ties.

Under the deal, Swiss enterprises' access to the Chinese market will be better protected on the basis of existing laws, said Schneider-Ammann.

China is Switzerland's largest trading partner in Asia, while Switzerland is China's eighth largest trading partner in Europe, according to China's Ministry of Commerce.