The south square of the National Exhibition and Convention Center in Shanghai, adorned with vibrant floral arrangements, welcomes guests on the eve of the 8th China International Import Expo (CIIE) on October 31, 2025. Photo: VCG

As Sweden steps into the spotlight as Country of Honor for the upcoming 8th China International Import Expo (CIIE), Ulf Pehrsson, chairperson of the Sweden-China Trade Council (SCTC), underscored the resilience of bilateral trade ties and Swedish firms' steadfast confidence in the Chinese market.

In a recent exclusive interview with the Global Times, the chamber leader noted that Sweden and China enjoy a broadly healthy trade and investment relationship, emphasizing Swedish companies' extensive, in-depth cooperation with Chinese companies and promising prospects for future collaboration.

"Many of our members have long-time experience operating in China and they are all convinced not only of the importance of being in China but are often expanding their engagement, not least in innovation and R&D," Pehrsson said.

As 2025 marks the 75th anniversary of diplomatic relations between Sweden and China, Sweden is set to make its debut as Guest Country of Honor at the 8th CIIE, the premier annual trade fair running in Shanghai from November 5 to 10.

Business Sweden will act as the Country Pavilion organizer. Swedish industry leaders such as SKF, Epiroc, and Scania, as well as "regular participants" such as Elekta and Ericsson, will gather to showcase the latest achievements in green technology, digitalization, and high-end manufacturing, according to a CIIE post on social media.

"It's of course fantastic that Sweden has been chosen as Country of Honor at this year's CIIE. Many of our member companies will be present, either as part of the Swedish Pavilion or as individual participants," Pehrsson told the Global Times.

The event will include a government delegation led by Swedish Minister for Rural Affairs and Infrastructure Peter Kullgren, according to the SCTC. "We hope that this year's Swedish presence at CIIE will send a strong message of the commitment of Swedish business to China," Pehrsson said.

Sweden was the first Western country to establish diplomatic relations with the People's Republic of China and the first to sign a bilateral investment protection agreement with China. 

China and Sweden maintain broad economic and trade ties across diverse sectors. For years, Sweden has ranked as China's top trading partner in Northern Europe, while China has held the same position for Sweden in Asia.

More than 10,000 Swedish companies are engaged in trade with China, with major firms such as IKEA, Ericsson, and Volvo deeply embedded in the Chinese market. The number of Swedish companies participating in last year's CIIE hit a record high, official data showed.

The chamber chairperson voiced confidence in the outlook for future business cooperation. "It would be not enough to simply highlight a few sectors with a promising potential for collaboration and growth, with such a broad engagement by Swedish businesses with and in China," Pehrsson said.

He identified the green transition as a particularly promising area, saying that the sector offers "excellent opportunities for deeper cooperation" since both Chinese and Swedish businesses are very advanced in this sector.

Both nations have decided to advance their green and tech collaboration. On April 1, 2025, China and Sweden agreed to establish a Working Group on Green Transition Investments, focusing on investment cooperation in green energy, green mobility, the circular economy, and sustainable urban development, according to the Ministry of Commerce.

The chamber head acknowledged some challenges Swedish companies face in China as natural, given their significant market presence. "Our members that are active in China face both opportunities as well as challenges, which is normal given such a broad and deep engagement in the Chinese market," Pehrsson said.

On challenges facing China-Europe trade ties, the SCTC reaffirmed its strong belief in free trade and open markets. "There are no winners in protectionism or trade wars. Our members would benefit from an open and transparent EU-China trade and investment relationship," Pehrsson said.

A joint commitment of both the EU and China to work toward creating an open bilateral trade and investment relationship would be well-received, he added.

The chamber leader further called on nations to protect and uphold the multilateral trading system. "The EU and China should both abstain from taking protectionist and discriminatory trade measures and commit to respecting WTO rules," he added.

High-level engagements continue to drive practical bilateral economic cooperation. On July 30, Vice Minister of Commerce and China's International Trade Representative Li Chenggang met with Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa in Stockholm. He welcomed Sweden's role as the Guest Country of Honor at this year's CIIE and encouraged Swedish companies to continue investing in and expanding their presence in China.

In March, Stockholm hosted a trade and investment matchmaking event. Vice Minister of Commerce Ling Ji called on both sides to deepen cooperation in technological innovation, seize opportunities arising from the green transition, and jointly open a new chapter in China-Sweden economic and trade relations.