One of China's most senior politicians and governor of Guangdong province has signed a memorandum of understanding with the New South Wales Premier, aimed at strengthening trade ties between the two regions.
Almost 70 of China's biggest manufacturers are also in Sydney for a trade expo this week - all part of push from the Chinese goverment to transform its manufacturing industry.
Julia Calixto reports.
More than 2000 people - including nearly 900 Australian businesses - have met with one China's biggest Trade Delegations to vist Australia.
Headed by one of China's most senior politicians - and member of the government inner circle, the politburo Hu Chunhua.
"The close relationship between China and Australia can be traced back to 1972, when the two countries established a diplomatic relationship. There have been frequent exchanges among top leaders and all levels of government departments and the relationship has been strengthened over the years due to both sides."
Mr Hu - who is also the Premier of Guangdong province - wants to strengthen that relationship.
He has signed a Memorandum of Understanding with New South Wales Premier Mike Baird to strengthen trade ties between Guangzhou and New South Wales.
Guangzhou and Sydney have been sister cities since 1986 and the New South Wales government has a permanent trade office in Guangzhou.
Mr Baird says the two regions have been sister states for 35 years and now it's time to look to the future.
"It is an appropriate time to look for the next opportunities, the next place of focus as we grow our relationship. Guangdong is the economic powerhouse of China, just as New South Wales is the engine room of the Australian economy."
The Memorandum of Understanding includes a commitment to more direct flights between the two regions and enhancing cooperation in ports and shipping, tourism,agriculture, education and health care.
It follows a recent announcement by the Chinese government to upgrade its manfacturing capacity so it can catch up with production powerhouses like Germany.
Shi Jing Shun, the Coordinator of the Huizhou Trade Expo now in Sydney, says it's also about being able to compete with other developing countries.
"Cheaper labour costs are very inviting for international investors. I mean China has a very big market, a skilled workforce, you know, the largest, and a very professional way you know of handling international management."
Huizhou is located just outside Guangzhou, the capital of Guangdong Province.
Coca-Cola, Samsung, Sony and Toyota are among 32 Fortune 500 companies with operations there.
Australians Christine and Jim McKeown own a jewelry company and have been in outsourcing work from China for about a decade.
Ms McKeown says doing business in the country has changed dramatically over the years - with a greater focus on quality, not just quantity.
"China can do first class products, very safe products. They're still developing but it's a very important part of their development and it's being understood more clearly all the time in China."
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