BEIJING, March 18 (Xinhua) -- Chinese Premier Li Keqiang and visiting New Zealand Prime Minister John Key announced the beginning of direct trading between the RMB and NZ dollar in Beijing on Tuesday.

Li said direct trading would help both countries to reduce costs for currency exchange and facilitate bilateral trade and financial cooperation.

In their talks at the Great Hall of the People, Li hoped New Zealand would continue to support Chinese financial institutions to set up branches in the country, and promote the use of RMB for New Zealand enterprises.

Key, on his fourth trip to China since taking office in 2008, vowed joint efforts to promote RMB-NZ dollar direct trading. He hoped the opportunity would help further expand bilateral cooperation in trade, investment, finance, education, tourism and other fields.

Li told Key China paid close attention to food safety, asking New Zealand to export more high-quality agricultural products to China and maintain strict quality controls.

In return, Key said his country fully understood Chinese customers' concerns over food safety, vowing to take stricter measures to ensure the quality of food that is exported to China.

As China is to host the 2014 APEC summit in the fall, Li called on enhanced coordination with New Zealand to promote progress of the conference, and boost regional economic integration.

The Chinese government encourages competitive and reliable companies to invest in New Zealand, Li said, urging the country to ease restrictions so Chinese technical labors and raw materials can enter.

Key is on a three-day working visit to China as Li's guest.