Sweden recognized the People’s Republic of China on January 14, 1950, and established diplomatic relations with China on May 9 of the same year, becoming the first Western country to do so. In the same year, the two nations exchanged ambassadors, with Geng Biao serving as China’s first Ambassador to Sweden. Following the establishment of diplomatic ties, China-Sweden relations developed steadily, with increasing exchanges and cooperation across political, economic, cultural, and other fields at multiple levels, all of which yielded significant outcomes.

In recent years, Sino-Swedish relations have maintained stable development overall. King Carl XVI Gustaf of Sweden conducted a state visit to China in 2006 and has visited China multiple times since then. Swedish Prime Minister Fredrik Reinfeldt and Stefan Löfven each made two visits to China respectively. Chinese President Hu Jintao made a state visit to Sweden in 2007. Chinese Vice President Xi Jinping officially visited Sweden in 2010. Chinese Premier Wen Jiabao of the State Council made an official visit to Sweden in 2012.

Since the establishment of diplomatic relations between China and Sweden, bilateral economic and trade relations have achieved significant growth. In 1957, the two countries signed an intergovernmental trade agreement. The Joint Economic and Trade Committee mechanism has convened 20 meetings to date.

In recent years, economic and trade cooperation between the two countries has maintained stable development. China and Sweden are each other's largest trading partners in Asia and Northern Europe respectively. In 2024, the bilateral trade volume reached US$18.89 billion, marking a year-on-year increase of 0.2%. Two-way investment activities remain dynamic.

By the end of 2024, 32 pairs of provinces/cities have established friendly relations between China and Sweden.