During Li's maiden official trip, bilateral relations with the four countries he visited were significantly strengthened.
The signing of the memorandum means Switzerland will soon become the first country in continental Europe to reach such an agreement with China.
What China-Switzerland FTA brings about?
China-Switzerland FTA to benefit both sides
Germany tour to enhance bilateral ties, China-EU ties
Premier Li Keqiang arrived in Zurich Thursday evening for an official visit to Switzerland, his first trip to Europe since he took office in March.
Li slams EU's trade policies against China
FTA would bring benefits to both nations
Full text of Li's article on German newspaper
Premier Li Keqiang and leaders from the European Union kicked off an annual meeting Thursday in Beijing to work out a blueprint for ties as the two sides prepare for talks on an investment protocol.
In advance of today's EU-China summit in Beijing, European leaders possibly have been studying the reform package agreed at the Third Plenum last week.
Chinese Premier described as "unprecedented" a plan for cooperation between China and Europe.