Papua New Guinea's Prime Minister says PNG and China have agreed to try and establish a free trade agreement.
Peter O'Neill visited China last week and told the Post Courier a PNG-China Free Trade Agreement can stimulate significant increases in trade, business and employment.
He said every trade agreement between countries is complicated and must deliver clear benefits for all parties.
Mr O'Neill said PNG and China will now advance their discussions through a joint feasibility study.
He says PNG welcomes the One Belt and Road Initiative developed under President Xi's leadership, saying it will open market opportunities for PNG in China, and further afield to Asia and Europe.
Mr O'Neill said the two countries have also agreed to push for what he calls 'reform' at the United Nations Security Council and to co-ordinate efforts towards tackling climate change.