Zhang Yuanyuan, former Chinese ambassador to New Zealand, said the deal will encourage more Chinese traders, students and tourists to interact with the country.
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But first, both sides should "fully implement" the free trade agreements signed in 2008 that helped New Zealand survive the recent global financial crisis, he said.
Li said the Chinese government encourages capable and credible enterprises to invest in New Zealand and participate in infrastructure construction there, while Beijing also hopes Wellington will facilitate those enterprises by easing restrictions on the access of Chinese skilled workers and raw materials.
Zhang, the ambassador, said strengthening economic ties with China has been a top priority for New Zealand as an increasingly open China and richer Chinese people will need more products from the country such as milk and livestock.
Before his departure for China, Key said he hoped to restore the baby formula market's confidence in the country's products after the botulism scare of 2013.
Fonterra, New Zealand's largest exporter of baby formula, admitted last week to four charges that it failed to meet standards and notify officials soon enough after they discovered a problem.
During the meeting with Li, Key reassured his Chinese counterpart that his country would take strict measures to guarantee food safety.
Key is scheduled to meet President Xi Jinping on Wednesday and conclude his visit in Shanghai on Thursday.
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