Today sustainability is a broadly discussed concept all over the globe due to the threat of climate change driven by human activities. Therefore, collective efforts are needed to raise awareness to conserve environmental health and sustainability, and sustainable development is to be prioritized in all organizations. Sweden demonstrates a high commitment to developing sustainability in practice through the collective effort of Swedish society. China is Sweden’s largest international trade partner in Asia. This thesis explores the strategies, facilitators, and challenges for Swedish firms pursuing sustainability goals while collaborating with Chinese partners. A single case study on a SwedishMNC, IKEA is presented to conduct the thesis. IKEA demonstrates the strategy of sustainable collaboration with Chinese partners. The analysis determines that close collaboration to co-create value, regular audits, and balancing the three aspects of sustainable development, economic, social, and environmental, are needed for a Swedish firm to pursue its sustainability goals while collaborating with Chinese partners.