My friend is New Zealand passort holder, travelling in Europe, can I apply China for him in Switzerland?

You can make the visa for him, he doesn't need special papers. He doesn't need to come to the embassy personally.

In principal, applicants should apply for China visa in the country where they reside or work. For special cases, they can apply for China visa in the near China embassy or consulate. The previous entry records to many countries of Europe can prove that he is travelling in Europe and he can't apply for China visa in his own country.