The bilateral relations between China and Switzerland have solidified a lot, especially over the last century. In the mid-17th century, traders and missionaries from Switzerland established relationships with the Chinese people. In 1912, Switzerland and the Republic of China developed a Swiss trading hub in Shanghai. In 1918, they signed a friendship treaty. Just one year after Mao Zedong’s proclamation of nationhood in 1949, Switzerland officially recognized the People’s Republic of China. Since then, bilateral agreements, such as the Agreement on the Promotion and Reciprocal Protection of Investments (1986, new agreement in force since 2010) and a Double Taxation Agreement (1990, new agreement signed in 2013), have augmented the economic relations between China and Switzerland. Switzerland’s foreign economic policy and market access is based on three main pillars: WTO membership, bilateral agreements with the EU, and Free Trade Agreements (FTAs) with partners from around the world. Having granted Beijing Market Economy Status (MES) in July 2007, the conclusion of the landmark Sino-Swiss Free Trade Agreement (FTA) in July 2014 further boosted the bilateral relations between these two countries to higher levels. The study being theoretical in nature has studied the existing academic literature and policy reports in an extensive way. The findings of the study indicates that Switzerland was attracted to China because of its market and the country’s status as a rising power. In contrast, China saw an FTA with Switzerland as a legitimate way to formally enter the European market. Under this agreement, Switzerland agreed to exempt tariffs on 99.7 per cent of Chinese exports to Switzerland. Similarly, China agreed to exempt tariffs on 84.2 per cent of Swiss exports to China, for a period not exceeding fifteen years.