The United Nations ranks Sweden as the country with the least inequality between rich and poor citizens and some of the greatest access to welfare benefits. The UN also places it very high on the human development index, which looks at the incomes, educations and health of the citizens of various countries.

Dennis Pamlin, CEO of 21st Century Frontier, a consultancy based in Stockholm, said urbanization in China is expected to bring about 300 million people into Chinese cities over 20 years. He said so large a migration should not be managed using old methods.

China has also invested large amounts of money into building low-cost residences for medium and low-income families while taking steps to control housing prices.

"We need to set up a new platform to let China and Sweden learn from each other," Pamlin said.

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