Icelandic writer Steinunn Sigurdardottir, whose works contain traces of influence from the 8th century Chinese poet Li Bai, was surprised to find Huangshan Mountain looks just like a Chinese ink-wash painting.

"The moment I saw it, I realized that classical Chinese paintings are not highly abstract, as I was told. They are, in fact, realistic," Sigurdardottir says.

The Thief of Time author was recounting her "first-time adventure" in China with a writers' delegation from Iceland and other Nordic countries for the 2011 Asian and Nordic Poetry Festival.

The five-day event was held in late October in Beijing and Huangshan, Anhui province, to celebrate the 40th anniversary of the establishment of diplomatic relations between China and Iceland.

Chinese poets and scholars were amazed to discover the two countries had similar literary and linguistic traditions - although Icelandic literature is a rarity in China.

In both countries, poetry from ancient times has a wider appeal and is better appreciated than contemporary works, says Hu Xudong, a Peking University writer and translator.

Poets face the same challenges of carrying on the old and bringing in the new, Hu adds.

"In a country where a large number of readers value the knowledge and experience of old poems, contemporary poets are caught between tradition and originality," Xu says.

"But we should note that tradition is activated and alive only when contemporary poets apply it to new expression," he adds.

Sigurdardottir says her birthplace Reykjavik - the UNESCO City of Literature - is a place where taxi drivers read passages from medieval manuscripts. The consistency of the Icelandic language makes Sagas and Edda an endless resource for writers.

As to China's contemporary poetry, Sigurdardottir notes that it is "a totally different scene from what I've known", adding she's been reading Li Bai and Du Fu, in English, since the early 1970s.

"Chinese poets are sensitive and full of original ideas," she says. "I would like to make my own contribution to giving them a more global readership."

As an Icelandic writer who has achieved international fame, she believes her writing benefits from her overseas experiences. "It's really helpful for writers to know about other countries and their literature."

Icelandic translator Hjorleifur Sveinbjornsson, who was a Peking University student from 1977 to 1981, has rendered and introduced Chinese classics to his country.

Sveinbjornsson says there have been no huge changes in the Chinese language over the centuries.

"It's really interesting to see sparks fly during literary exchanges between countries from one of the world's largest language areas and one of the smallest," Sigurdardottir concludes.