Free trade agreements between China and Switzerland and China and Iceland took effect on July 1, marking a new dawn for business between the countries.

The agreements, which apply a zero-tariff policy to a wide range of merchandise, cover areas including government procurement, employment cooperation and intellectual property.

Under the agreement, 99.7 percent of imports from China to Switzerland will be exempted from customs duties, while 84.2 percent of Switzerland's exports will enjoy the same policy. Duties on China's exports including textiles, clothes, auto parts and metalware will be reduced substantially.

Trade between China and Switzerland increased 126 percent year on year to $59.5 billion in 2013. China is Switzerland's largest trade partner in Asia, while Switzerland is China's fifth largest trade partner in Europe.

Trade between China and Iceland stood at $220 million last year.