Chinese President Hu Jintao Sunday made a five-point proposal aiming to boost ties between China and Sweden.

Hu, who is on a state visit to Sweden, and Swedish Prime Minister Fredrik Reinfeldt held official talks Sunday morning.

On political relations, Hu urged China and Sweden, an important nation in northern Europe and a major member of the European Union, to increase political dialogue, deepen understanding and enhance mutual trust.

Economically, he suggested that the two countries enhance cooperation in such fields as telecommunications, environmental protection, energy saving and bio-pharmacy.

"China welcomes investment by Swedish enterprises in China, in particular, their participation in China's drive to develop its vast western areas and revitalize the old industrial base in northeast China," he said.

"We appreciate Sweden for its adherence to a free trade policy and its readiness to grant China a full market economy status," he said.

Hu also urged steps to increase bilateral cooperation in culture, education, tourism and sports and encourage two-way exchanges between young people, local governments and media.

On international affairs, the two countries should make bilateral cooperation closer and exchange views on reforms of the United Nations, sustainable development, poverty eradication, climate change and promotion of free trade, he said.

He finally urged both sides to "increase understanding, expand consensus, and narrow down differences for promoting cooperation."

Hu is the first Chinese head of state to visit Sweden in 57 years since the two countries established diplomatic relations. "The Swedish side attaches great importance to the visit," said Reinfeldt.

He agreed with Hu on his comments on Sino-Swedish ties and believed that the two countries should strengthen high-level exchanges and consultations.

On the China-EU relations, Hu said that China hopes the EU will play an active and constructive role in the international affairs and also expects Sweden, an EU member, to continue to play its role in advancing China-EU relations.

Reinfeldt told Hu that Sweden will hold the rotating EU presidency in 2009 and will be willing to contribute to the growth of EU-China relations.