China and Switzerland have agreed to a pact that will see the former cut import tariffs on Swiss watches by as much as 60 percent over the next 10 years.
Swiss watchmakers—especially the Swatch Group which gets 20 percent of its sales from China—are understandably excited as Chinese imports of Swiss-made watches have been falling rapidly in recent quarters due to Chinese President Xi Jinping’s campaign against corruption and "extravagant spending" associated with luxury items like expensive timepieces.
China and Switzerland signed a memorandum of understanding in late May. The tariff reductions are expected to being in July.
Switzerland will be the second European country after Iceland to sign a free-trade deal with China.