Electronic component maker Rakon says it is on track to open its factory in China by May next year.
The company is one of the world's leading producers of the crystals and oscillators used in GPS systems and some mobile phones, and already has a presence in Beijing, Shanghai and Shenzhen.
Rakon managing director Brent Robinson says the company has enjoyed strong support from Sichuan authorities to build its new manufacturing in the city of Chengdu.
Mr Robinson says a recent visit from Chinese Vice-President Xi Jinping, who was in Auckland last week, is further assurance that Rakon's plans for Chengdu will stay on track.
He says Rakon is yet to benefit from New Zealand's free-trade deal with China because its trade has never been subject to high tariffs.