New Zealand and China are looking at ways to encourage greater economic cooperation between the two countries, Prime Minister Helen Clark has said.

Chinese President Hu Jintao is to visit New Zealand this weekend and Clark expected some moves toward closer trade links, even if a free trade deal was not likely in the near future, the New Zealand Press Association (NZPA) reported Wednesday.

Clark was quoted by the NZPA as saying that China had other priorities at the moment, referring to Australian Prime Minister John Howard's remarks that talks now under way between Australia and China could lead to a free trade deal between the two nations.

"We are working along the same lines as the Australians. The Chinese are not indicating at this point that they are interested in putting the work into a free trade deal with either country," Clark said.

"But of course, given the immense potential of China, we need to stay very, very close linked with it and we will be looking for ways of discussing with President Hu when he is in New Zealand how we might step up the cooperation."

Clark said China has been experiencing large economic growth in recent years as it modernizes its economy in some areas.

China is New Zealand's fourth biggest trading partner and is likely to get a lot bigger as access to its 1.3 billion consumers increases, she said.

(Xinhua News Agency October 22, 2003)