Located in central Sweden, Dalarna is in a Gulf Stream area where the climate is quite mild. Its forest coverage rate exceeds over 50% . Dalarna Province has very convenient traffic and is rich in mineral resources. The iron ore exports are an important source of income for Sweden. In addition, timber, steel and tourism are the major economies here. Dalarna invests greatly in environmental protection, like ecological treatment in agriculture and forestry, purification and ash retreat in hydrology, rubbish treatment and so on. Public welfare services of Dalarna are very developed and electronics and environmental protection industries have great potential as well. In April, 2004, the Mayor of Chengdu signed an agreement with the Governor of Dalarna Province on the establishment of friendly cooperative relationship between Chengdu, China and Dalarna, Sweden.