1、 BUSINESS CLIMATE SURVEY FOR SWEDISH COMPANIES IN MAINLAND CHINA 2025 A REPORT FROM TEAM SWEDEN IN MAINLAND CHINA FOREWORD 3 FOREWORD This years Business Climate Survey once again captures the voices of Swedish companies operating in China,offering valuable insights into their experiences,challenges

2、,and expectations.The global economic and trade landscape remains highly uncertain,and while some developments have occurred since the survey responses were collected,the findings remain a timely reflection of the business sentiment on the ground.According to the companies surveyed,the Chinese marke

3、t continues to present a complex mix of opportunities and challenges.Many firms report persistent difficulties ranging from regulatory hurdles to intensified local competition and rising pressure from buy domestic policies.At the same time,many respondents highlighted the importance of maintaining a

4、 presence in China to access its vast market potential and stay close to the rapid pace of innovation.Overall,the perceived business climate has reached its lowest point since the survey began over two decades ago.While 55 per cent of companies still expect revenue growth in 2025,only one-third plan

5、 to increase their investments.This cautious outlook reflects broader concerns,including overcapacity in several sectors,deflationary pressures,low consumer confidence and an increasingly uneven playing field particularly when it comes to public procurement and local content requirements.Despite the

6、se headwinds,there are also pockets of growth.Swedish companies in sectors such as maritime,chemicals,advanced materials,and manufacturing upgrades continue to perform relatively well.Another bright spot to note is that the Sweden brand is perceived more positively compared to one year ago.Larger mu