Abstract
China has emerged as a key development partner for Southeast Asia. In this chapter, how China’s position has evolved over the past two decades is examined, and what that means for Sweden going forward with new aid and trade policies. The chapter show how China has emphasised economic cooperation and prioritised infrastructure funding as the basis for development. China has simultaneously become the leading trade partner for Southeast Asia, and Chinese companies have begun to invest more as well. Sweden, as a much smaller donor, trade partner and investor, cannot compete with China but can provide development support in targeted sectors and aim for synergies between aid and trade.