This paper investigates the impact of import competition on labor market outcomes in Sweden, focusing on wages, employment, and labor productivity. We analyze a panel dataset spanning from 1992 to 2020 and employ various econometric methods, including long difference, fixed effects, and instrumental variables approaches, to examine the relationship between import competition and labor market outcome variables. Our main findings are that import competition from China is responsible for 1.74% of the decrease in Swedish manufacturing employment, 3.07% of the increase in value added and 3.86% of the industry-level average wages between 1992 and 2008. This indicate that Sweden's manufacturing market was not in a competitive state, and China's trade liberalization exposed the market to more competition, leading firms to downsize significantly and focus on increasing productivity to remain competitive.