This article analyzes the development of paradiplomatic relations between subnational governments in China and Sweden. The empirical material comprises official documents, media reports, and interviews, and correspondence with local decision makers. Following steady growth in the 1990s and 2000s, the number of paradiplomatic agreements between the two countries declined dramatically at the end of the 2010s. To our knowledge, this extensive “local decoupling” is unprecedented, at least in the history of modern paradiplomacy between Europe and China. The decline can primarily be explained by three interrelated factors: worsening bilateral relations between Sweden and China, growing Swedish concern about the human rights situation in China, and the lack of activity in some of the cooperation projects. Rather than pursuing goals such as peacebuilding and economic benefit, generally described as the main drivers behind local governments’ international activities, several subnational governments in Sweden deemed it appropriate to terminate cooperation with their Chinese counterparts due to other concerns. This development demonstrates the usefulness of a more constructivist perspective of paradiplomacy.