Author: Ivan Zaccagnini, senior researcher in Technology and Geopolitics at the Center for Security Studies (CSS) at ETH Zurich
This report examines Sweden’s evolving position in the Indo-Pacific amid intensifying US-China competition, with a particular focus on Stockholm’s approach to China and Taiwan.
Sweden represents a compelling case study of how a mid-sized European state with deep economic ties to Beijing and a strong normative commitment to democracy navigates the competing pressures of great power rivalry. Structured around four pillars —defense, trade, technology and democracy — Sweden’s Indo-Pacific engagement has shifted markedly over the past decade, from benign economic interdependence with China towards growing strategic wariness, NATO membership, and deepening unofficial cooperation with Taiwan and like-minded regional partners. The report traces this transformation, analyses its domestic and international drivers, and draws broader implications for European policy as anticipated below:
- In this era of increased great power competition, middle powers may not be able to avoid taking sides, but they can manage how they do so;
- For Europe, the Indo-Pacific is not a separate theater. Instead, it is the primary convergence point for their current and future economic and security vulnerabilities, particularly regarding critical supply chains and trade flows among others;
- Taiwan stands as an indispensable strategic partner in the region due to its democratic values and key role in the semiconductor value chain, yet escalating tensions with China simultaneously make it a critical flashpoint for global economic and security risks;
- US transatlantic retrenchment strengthens the case for enhanced European diplomatic, economic, and military cooperation, includinging the Indo-Pacific. The strategic uncertainty left by the Trump administration must be met with greater European agency and deeper collaboration with like-minded partners.
