Trade with China: Federal Council rejoices, intelligence service warns

Switzerland's Federal Council is celebrating the conclusion of free trade agreement negotiations with China, projecting substantial economic advantages for Swiss exporters. The government anticipates that extensive tariff reductions will save businesses approximately 244 million Swiss francs annually. Notably, China has reportedly agreed to include a reference to human rights in the treaty's preamble, which the Swiss government views as a significant negotiation success.

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The optimized agreement strengthens legal certainty and predictability for companies and facilitates economic exchange.

However, a starkly different perspective has emerged from within the Swiss government itself. Just a week before the trade deal was finalized, the Director of the Intelligence Service (NDB), Serge Bavaud, presented to a parliamentary security committee. Bavaud detailed China's foreign influence operations, emphasizing the role of its economy and large corporations as leverage in international dealings. His presentation highlighted concerns such as supply chain dependencies, raw material reliance, espionage, and technology theft.

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Bavaud had essentially classified every economic contact with China as a potential risk.

According to participants, Bavaud characterized virtually every economic interaction with China as a potential risk. This assessment directly contrasts with the Federal Council's upbeat portrayal of the trade agreement. The divergence was noted during Bavaud's presentation, with parliamentarians raising the apparent contradiction between the intelligence service's warnings and the economic department's pursuit of the deal. The intelligence service, when contacted, offered a brief statement acknowledging its role in assessing threats and providing evaluations to decision-makers, without further public elaboration.

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We recognize and assess threats and make these assessments available to decision-makers in the federal government and cantons.