As one of the world’s largest economies and manufacturing hubs, Mainland China continues to offer significant opportunities for Swedish companies. Advanced industrial ecosystems, integrated supply chains, strong infrastructure, and rapid technological development make China a strategically important market across multiple sectors.
At the same time, companies report a more demanding operating environment. Economic slowdown, geopolitical uncertainty, regulatory challenges, and intense price competition continue to affect competitiveness and operational performance. Concerns related to transparency, equal treatment, localisation requirements, and “buy domestic” policies also remain significant for many companies.
Cooperation between Sweden and China remains strong within sectors such as advanced manufacturing, energy, electrification, healthcare, mobility, maritime industries, and digital technologies. China’s continued investments in industrial upgrading, innovation, renewable energy, and advanced manufacturing continue to create opportunities for Swedish companies offering sustainable and high-value solutions.
Competitiveness in Mainland China is closely linked to cost efficiency, product development, localisation, digital capabilities, and long-term commitment. The Swedish brand continues to be associated with innovation, quality, sustainability, and reliability.
Mainland China is widely regarded as a strategically important market with strong manufacturing capabilities, advanced supply chains, and rapid innovation. However, companies also point to increasing local competition, regulatory complexity, and persistent geopolitical uncertainty as ongoing challenges.
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ABOUT THE SURVEY
To assess the opportunities and challenges faced by Swedish companies in international markets, Team Sweden conducts annual Business Climate Surveys across multiple markets worldwide. This year’s survey in Mainland China includes responses from 106 Swedish companies operating in the country. Industrial companies represent a significant share of respondents, while professional services and consumer companies also make up a considerable share. The majority of respondents have been active in Mainland China for more than five years.
We would like to extend our sincere appreciation to all participating companies and respondents who contributed to this report. Team Sweden in Mainland China hopes that the findings will serve as a basis for continued dialogue with Chinese authorities and other relevant stakeholders.
