1 Summary and introduction The rise of China is one of the greatest global changes since the fall of the Berlin Wall. Today, China has a global presence and growing influence, which presents a number of new implications for Sweden and the EU. China’s development presents both opportunities and challenges that concern an increasing number of the Government’s policy areas. How China develops, and how its ties to the rest of the world develop, will have repercussions for Sweden and for developments in Europe. The economy and trade are affected, along with foreign, security and defence policy, the environment and climate, Sweden as an innovation and knowledge nation, Sweden’s neighbourhood, and multilateral cooperation. The Government’s approach to China is holistic, taking the benefit to Swedish society as its focal point while safeguarding Sweden’s security in all relevant areas. This approach is based on the 2016 EU Strategy on China and describes how it is implemented nationally. It is of key importance to Sweden that the EU pursues a common and clear policy on China. It is through the EU that Sweden can achieve the greatest impact. Joint action at the EU level on, for example, trade policy, environment and climate issues and respect for human rights is a strength. Our policy towards China is therefore formulated together with other EU Member States and in close dialogue with other like-minded countries. The Government adheres to the EU Strategy, which establishes that we must stay true to our own values and interests in our relations with China. This Communication outlines the Government’s views on China’s development and the repercussions this development has for Sweden. It considers a number of areas that are crucial to Sweden, based on the opportunities and challenges that have arisen and on Sweden’s interests. It describes bilateral relations between Sweden and China. Enhanced action on matters relating to China requires strengthened knowledge and increased dialogue between government agencies, business and civil society. The Communication concludes that engagement will require investment in knowledge-enhancing measures. The Government will thus begin work on establishing a national knowledge centre on China. 2 China today China today is a major power. It is a permanent member of the United Nations Security Council and has the second-largest defence spending in the world. It is the world’s largest trading nation, and the largest trading partner of the most other countries. Its interests and influence extend to all four corners of the globe, and concern more and more areas of international cooperation. Since China opened up in 1978, the country has undergone very extensive economic development. At that time, the centrally controlled economy had stagnated, development was low, and China was isolated and 3