Achieving a target of $30 billion in two-way trade between New Zealand and China by 2020 is about to get easier, according to Trade Minister Todd McClay.

The government has agreed to a negotiating mandate to upgrade the existing China Free Trade Agreement.

Currently two-way trade between New Zealand and China is worth $24b, with focus on education, tourism and goods export.

"Trade means jobs - we know 8500 jobs are created in New Zealand from every billion dollars of exports," Mr McClay said on Thursday.

"Upgrading the China FTA will increase trade and deliver more jobs in every region and every city of the country."

The agreement includes deals on dairy, forestry and wood processing exports, and online and digital trade.