New Zealand is about to become the first developed country to set up a free trade area with China.

At a meeting with visiting New Zealand Minister for Trade Negotiations Jim Sutton, Chinese Vice-Premier Wu Yi said China is willing to speed up negotiations by actively addressing issues of mutual concern.

"I hope New Zealand will become the first developed country to establish a free trade area with China," Wu said, adding there was no strict timetable for the talks.

China and New Zealand started negotiations in December, and have held three rounds of talks on trade, service and investment. The next round will be held in Beijing in mid-July.

Wu, who negotiated China's entry into the World Trade Organization (WTO), said China will push forward the free trade agreement (FTA) issue with the principles of equality and mutual benefit in mind.

Sutton said the goal was to achieve a high-quality agreement rather than a fast one.

So far New Zealand has accomplished "three firsts" in its relations with China.

It was the first developed country to sign a bilateral WTO accession agreement; to recognize China's full market economy status; and to open talks on free trade with China. Spectators are now eyeing the possibility of the first free trade deal.

The New Zealand minister, who headed a delegation representing more than 20 leading dairy and farming technology companies, also took part in the first meeting of the China-New Zealand Joint Ministerial Commission on June 6.

Fan Ying, an FTA expert with China Foreign Affairs University, said there were no major obstacles blocking the negotiation process. The only thorny issue was tariffs, she said.

"If New Zealand lowers its demands on China, and China shows more flexibility on the issue, I believe the talks will succeed soon," she said.

Strong relations and complementary economic activities already provided a solid basis for talks, she said.

In the past decade China and New Zealand have witnessed double-digit trade growth. Two-way trade reached US$2.5 billion last year, double that in 2001.

China was the fourth largest trading partner and export market for New Zealand.