SYDNEY, June 26 (Xinhua) -- Papua New Guinea (PNG) Prime Minister Peter O'Neill said his week-long visit to China is successful and productive.

"We have many shared interests and challenges, and we need to work together," he told PNG media on Monday.

"Talks with President Xi Jinping and Premier Li Keqiang were very productive, and from this we have agreed on a number of issues that are very positive for PNG."

"Very importantly, PNG and China will elevate our formal level of bilateral engagement."

Almost four years since the two nations entered into a strategic partnership to boost trade and investment, China and PNG will now look to further strengthen bilateral ties and bolster their economic relationship.

"We can develop new initiatives and projects, fast-track significant agreements and facilitate new direct foreign investments at a much higher level," O'Neill said.

"A PNG-China Free Trade Agreement has the potential to stimulate a significant increase in trade, business and employment if it is done right."

With both parties now undergoing a joint feasibility study to negotiate the deal, O'Neill said PNG has become the first South Pacific nation to formally sign up to China's Belt and Road Initiative, stating that he expected to see immediate gains for his country.

"This will open market opportunities for PNG in China, as well further transshipment points around Asia and Europe."

Also discussed during a stop at the Shanghai Free Trade Zone, was the commencement of direct flights between Papua New Guinea and Shanghai, which are set to begin in September.

O'Neill believed the new flight path will open up even more opportunities for both countries.

Some of the areas the PNG government have identified as having massive potential for cooperation are sport, education and the environment.

"Climate change is a further issue where we share common interests and we must coordinate our efforts," O'Neill said. "Extreme weather and ecological change brought about by climate change is a real threat."

"We have to synchronize our efforts in global forums, including coordination to pursue action on the deliverables identified in the Paris Agreement."

After being given a tour of China's rich history of martial arts, the prime minister expressed interest in setting up more comprehensive tertiary education courses in fields like sports medicine and physical training.

"This is exactly what our young sports men and women need in PNG," O'Neill said.

"Such health promoting facilities and incentives like these may encourage our people to focus more on sports and less on unhealthy lifestyles affecting our communities."

With a lot of focus on PNG ahead of the upcoming APEC Economic Leaders' meeting in November, Chinese officials took the opportunity to offer any further assistance in preparation for the summit.

"At our meetings on Friday with President Xi and Premier Li, China has offered to provide X-ray security items for APEC and technical support to manage the International Convention Center," O'Neill said.

"China is also providing a number of vehicles, including buses, that will be used in APEC motorcades."