How western SMEs from well developed economies can survive in emerging markets are according to scholarly literature overlooked and there has been an ongoing call for papers and further studies in relation to the context of the factor ‘knowledge’ in the internationalization process of SMEs, where research on the internationalization of SMEs from developed economies to emerging markets have been highly requested. Further the factor of ‘knowledge acquisition’ for internationalization from developed economies to emerging markets are not very extensive and been rather overlooked by scholarly literature. With that being said, this study aims to contribute to the scarce scholarly literature in regards to knowledge and knowledge acquisition of western SMEs entering emerging markets, where the purpose of the study is to identify and describe market and internationalization knowledge that can be beneficial for Swedish SMEs expanding to the industrial Chinese market. This research has been conducted following a qualitative method, through conducted semi structured interviews with four selected Swedish SMEs who have experience in doing business in the Chinese business market. The result of this study propose that it is important for Swedish SMEs to obtain both Internationalization knowledge and Market Knowledge, prior to their expansion to the Chinese market. This in order to both be able to capitalize on the opportunities in the Chinese market and further avoid the potential risks and challenges. In term of internationalization knowledge, Swedish SMEs are beneficial through obtaining international experience prior to their expansion to China. This can be done through either internal knowledge acquisition based on experience or with the help of external expertise. Moreover, market knowledge, opportunities, and risks in relation to the targeted market is considerations SMEs are suggested to consider while doing their internationalization. Regarding market knowledge, Swedish SMEs can be beneficial through acquiring various types knowledges about the Chinese business market. The market knowledges that this study found beneficial for Swedish SMEs were knowledge in regards of, market risks and opportunities, governmental aspects, culture and language and lastly the aspect of relationship.