As Sweden's largest trading partner in Asia, China makes up a significant portion of the global sales for many major Swedish companies. It’s also a manufacturing hub and is increasingly becoming a place for driving innovation.
For more than two decades, this survey has compiled responses from Swedish companies in the Chinese market across different sectors and sizes, supplementing them with in-depth interviews. There’s a slight majority in positive anticipations for 2025, with 55 per cent of respondents expecting an increase in revenue, and 51 per cent foresee an increase in profit.
China’s GDP met the government target for 2024, growing by five per cent. This was driven in large part by a record-high annual trade surplus of over USD 992 billion by a record trade surplus along with heavy investments in high-tech and sustainable industries, which have offset weak domestic demand as well as demographic and real estate pressures. Although it will be slower than in previous years, the economy in Mainland China is expected to continue growing until 2027, with opportunities for Swedish companies due to the market size and cost advantages in labour and production.
The ‘Swedish brand’ continues to be a valuable asset for companies aiming to establish and grow a presence in China. Many respondents noted benefits from associations with the Swedish brand, including Sweden’s reputation for fostering a positive working culture and providing work-life balance, which plays an important role in attracting talent in China.
While its carbon emissions and coal consumption are still rising, China is making significant strides in expanding renewable energy capacity, especially solar and wind, and increasing production of electric vehicles. And while Swedish companies in Mainland China still face challenges to their environmental efforts, they reported much less in 2025 than in previous years.
Download the full report for a complete overview of the survey results with a detailed analysis.
ABOUT THE SURVEY
To better understand the performance of Swedish companies in China – including the opportunities and challenges they face, as well as their perception of the Chinese market, Swedish companies in Mainland China are surveyed each year. The effort is a joint initiative by Team Sweden in Mainland China, which includes Business Sweden, the Swedish Chamber of Commerce, the Embassy of Sweden in Beijing, and the Consulate General of Sweden in Shanghai.
This year’s Business Climate Survey for Mainland China was conducted with the participation of 98 companies in Mainland China that are headquartered in Sweden, owned partially or fully by Swedish shareholders, part of a Swedish conglomerate, or have some other significant affiliations to Sweden.
Team Sweden in Mainland China is grateful to all participants who have contributed their valuable time and opinions in the survey or in-depth interviews. We hope that readers will find this report useful and instrumental in the success of Swedish businesses navigating the fast-changing geopolitical landscape and evolving Chinese market.
