It's almost a coals to Newcastle situation.

A New Zealand production house has sold cartoons to China.

Kiwa Digital Limited is to deliver interactive cartoon stories to mobile devices there.

The deal was signed in Shanghai today, where Economic Development Minister Steven Joyce is on a trip to promote New Zealand business interests.

The company describes it as a breakthrough international publishing and licensing agreement, with a leading Chinese television company.

Bejing Kaku Media Co Ltd is considered in the Chinese industry as the top cartoon programmer in the country, with the widest coverage area, most audiences and greatest influence.

Established in 2004, it now covers a population base of 600 million, has the highest children’s audience rating in Beijing,and is in the top 16 sattelite TV stations in China.  This move into digital media is part of a diversification strategy that includes merchandise, retail stores, and theme parks.