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Despite the global recession hurting China the Asian economic giant remains committed to its trade deal with New Zealand and wants to take the relationship between the two countries to a new level, Prime Minister John Key said.
Key made his first visit to Beijing's Great Hall of the People on Tuesday night (NZ time) for a meeting with President Hu Jintao.
China has recorded staggering economic growth over the last two decades, but even it has been hit by the global recession.
With the world economy in recession many countries are flirting with erecting trade barriers, but Key said President Hu had reassured him that China was committed to ensuring the trade deal came into force as scheduled.
Since the deal, trade between the two countries has grown rapidly with exports to China increasing by 35% and imports from China growing by 12%.
"He believed we were facing quite difficult economic times and he noted the impact of that on China. I think he was reasonably sobering in his comment that the international impact of the recession was having an impact on China. But was hopeful that the foundation stones had been laid through the FTA and that would provide great opportunities in the future," Key said.
"He certainly said we had a very warm relationship and he wanted to see that relationship taken to another level".
Key said it was a warm and friendly meeting in which the Chinese leader is optimistic about the future relationship.
While China's growth rates have been pegged back as the rest of the world spirals into economic decline, unlike other countries it is still recording growth in consumer demand and increases in industrial output.
New Zealand's agricultural exports into China are also growing despite fears it might have been hit by non-economic issues.
Key said Fonterra's role in the contaminated milk scandal had been noted as a "regrettable incident", which the two countries could now put behind them.
Key continues his visit to Beijing to sign an agreement on tourism and give a speech at Peking University, before meeting with Premier Wen Jiabao.
On Thursday he travels to Shanghai for a series of business focused events before going to the Boao Forum in Sanya over the weekend.
The forum is China's regional economic forum which many regional leaders and business people attend.
Key will be hoping that this leg of his first foray into Asia as prime minister will go more smoothly than the first.
He had been hoping to attend the East Asian Summit last weekend, but got no further than Bangkok airport as anti-government protesters invaded the venue and forced its cancellation.
