ARARAT - A delegation of Chinese officials from the People's Government of Ji'an City signed an historic Friendship City Agreement with the Ararat Rural City Council on Friday, paving the way for important new trade links.

The six officials arrived in Ararat in the early hours of Friday morning and signed the agreement at a brief ceremony at the Gum San Chinese Heritage Centre.

The signing builds upon Ararat's historic ties with China that pre-date European settlement in the region. Ararat lays claim to being the only city or town within Australia that was settled by Chinese people.

Ararat Rural City chief executive Steve Chapple said the ceremony was taking place less than a month after a Council delegation discussed the notion with their hosts during a trade visit to China.

''We are delighted that our friends have seized this opportunity to formalise what is already a warm and productive friendship,'' Mr Chapple said.

''Today marks the signing of a friendship Memorandum of Understanding that will result in the exchange of expertise and investment opportunities in agriculture, horticulture, environmental management, renewable energy, primary health care, wine and tourism.''

The Chinese delegation comprised Mayor of the People's Government of Ji'an City, Ms Wang Ping, Secretary General of the People's Government of Ji'an City, Mr Long Bozhou, Senior Consultant for the People's Government of Xingan County, Ji'an City, Mr Liu Xianqing, People's Government of Suichuan County, Ji'an City, County Mayor, Mr Xiao Zhihua, Director of the Reception Officer for the People's Government of Ji'an City, Ms Gu Yuanhong, and Vice Director of Foreign and Overseas Chinese Affairs Office of Ji'an City, Ms Xiao Li.

Following the official signing ceremony, Ararat Rural City councillors and staff took the delegation on a brief tour of the city, including a stopover at Montara Winery.

Mr Chapple said the delegation was unable to prolong its stay in Ararat due to commitments elsewhere in Australia and New Zealand.

''But we hope to be able to host our friends for a longer visit in the near future.''

Ararat Rural Council has a Sister City Relationship with Taishan in the Guangdong Province of China.