Western Australia Premier Colin Barnett has signed an agreement with China's key economic planning body to promote bilateral business, trade and investment.
It is the first time the National Development and Reform Commission in China has endorsed such an agreement with a government at state rather than national level.
The commission reports directly to the State Council of the People's Republic of China.
The ABC reports the memorandum of understanding establishes a new working group which will bring Western Australia and Chinese officials together each year to identify opportunities for joint growth and development.
Exports from Western Australia make-up nearly three quarters of Australia's exports to China. 80% of China's investment in Australia is in WA.