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WELLINGTON, Aug. 10 (Xinhua) -- New Zealand Revenue Minister Judith Collins has welcomed a second round of negotiations between China and New Zealand tax officials aimed at updating the current double tax agreement signed between the two countries in 1986.

"The aim is to agree a new treaty, adopting modern treaty language and concepts, including agreed measures to deal with base erosion and profit shifting," Collins said in a statement.

It is "vital to ensure our double tax agreement with China is up to date and follows best practices," Collins said.

Double tax agreements are an important facilitator of trade and investment between countries because they ensure businesses do not get taxed twice, providing greater certainty for both taxpayers and tax administrators about how cross-border investment income will be taxed and reducing compliance costs and lowering tax on some income, Collins said.

China is New Zealand's largest trading partner in goods and second largest overall including trade in services.