China has the world’s largest population and during the last thirty years the country has implemented political and economical changes that have affected China to move towards a more western market economic direction. At first this development was going slow but during the last five years it has increased which today has made China the world’s greatest growing economy. China’s improved cooperation with the world is one reason for this growth which has led to a cumulative of the consumer market. This situation creates new opportunities for establishing Swedish companies on the market to meet the consumers demand.

The intention of this study is to find out which variables make it possible for Swedish companies to establish production on the Chinese market. Our intention is also to appoint which industries the Chinese market has a need for today. The purpose of the study is to provide an overview of the market in aspect of possibility for Swedish companies that consider an establishment of their production in China.

Four theories and two relations have been used as analytical tools in this study: planned and market economic, culture differences, swot-analysis and political and legal aspects. As a basis for the empirical study we have used an interview with a law office named DLA Nordic KB, information from The China Business Forum 2006 that we attended and reports written by the Swedish Trade Council.

The results of the empirical studies show that variables as Chinas development towards a more civil society and the cooperation with alliances as WTO, UN and EU makes it easier for companies to establish on the market. The expansion of the consumer market, the priority of the environmental issues and equal working conditions represent other variables that make it easier for an establishment on the Chinese market. Regarding the need of industries at the Chinese market we found ten industries that we consider have advantage among others: legal aspects, banking and financing, education, tourism, marketing and communication, information technology, establishment consulting, transportation, independent organisations and organisations that advocate natural assets.

Stockholm i juni 2006

___________________ ____________________

Nikoleta Raic Malin af Sillén