Chinese state-controlled news source People Daily said that the Chinese government has signed an agreement with Sweden to provide loans worth 1 billion euros ($1.25 billion) to small- and medium-sized enterprises (SMEs) in the country, a step that analysts believe will offer win-win cooperation.

"Sweden's economy is performing better than some other European economies, so the financial risks will be fewer for the CDB in offering loans to the country," Wang Tianlong, an associate researcher at the Consulting Research Department of China Center for International Economic Exchanges, a government think tank, told the Global Times. 

China Development Bank (CDB) signed the deal with Sweden on bilateral scientific research and innovation development cooperation, but further details including how to use the loans and what the rate will be have not yet been decided.

Chinese Premier Wen Jiabao said during his April visit to Sweden that China planned to invest about 1 billion euros in the country.