Purpose: This thesis aims to research the business environments, entry modes and legal structure, and steps to establish an enterprise in China and Sweden, through the comparison and analysis to provide a clear portrayal and some recommendations for the SMEs who wants to establish the enterprise in China and Sweden, especially for Swedes who want to establish enterprises in China and Chinese who want to establish enterprises in Sweden.   Method: To clarify the characteristics and comparison of establish the enterprise in China and Sweden, this thesis will use inductive method. Meanwhile, a qualitative method is adopted to conduct the interviews for persuading the research.   Conclusion: Chinese and Swedish business environments are composed of different cultural, political, legal, and economic. The entity forms are also different. When determined to establish an enterprise in China and Sweden, it’s vital to know the business environment, choose the suitable entry mode and follow the local steps to establish the enterprise.