Asked by the Neue Zuercher Zeitung paper if the neutral country would adopt EU sanctions against China in that case, State Secretariat for Economic Affairs (SECO) Director Marie-Gabrielle Ineichen-Fleisch said: "I strongly believe that we would adopt such sanctions."

"However, sanctions in the case of China would be far more drastic (than sanctions against Russia) because the economic relations are much more important. Therefore, there would probably be greater discussions in the EU and the United States as well as in Switzerland than there were in Russia. But I hope it will never come to that."

China has been stepping up military activity around Taiwan seeking to pressure the democratically elected government there to accept Chinese sovereignty.

Taiwan's government says only the island's 23 million people can decide their future, and while it wants peace, it will defend itself if attacked.

Ms Ineichen-Fleisch defended Switzerland's record on adopting EU sanctions against Russian individuals and companies over Russia's invasion of Ukraine in February, which Moscow describes as a "special military operation".

Pressure has mounted on Switzerland -- a popular destination for Moscow's elite and a holding place for Russian wealth -- to more quickly identify and freeze assets of hundreds of sanctioned Russians.

As of this month Switzerland has frozen 6.7 billion Swiss francs ($A10 billion) worth of Russian financial assets and 15 properties, and Ms Ineichen-Fleisch said this figure was unlikely to change much.

"We at SECO have no indication that there are many assets of sanctioned persons that have not yet been found," she said.

Australian Associated Press