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Preparations for concluding the agreement have lasted more than two years and there are multiple benefits that can arise from the agreement for Estonia, Saar said according to spokespeople for the Estonian Ministry of Culture.

"The Chinese film industry needs European filming locations. Estonia has internationally renowned film professionals, we have state-of-the-art post-production facilities. All this Estonia can offer to its Chinese partners," the Estonian minister said, adding that the agreement also makes it simpler to screen the films of both countries at film festivals in the other country.

The Chinese deputy minister said Estonia is the 14th country globally that China has decided to sign this kind of agreement with. He described the accord as marking the start of a new era in cultural relations between the two countries and said that the Chinese film industry has seen rapid development in the past decade, just like the film industry of Estonia. The vice minister said China now expects Estonian films to screen at the well-known Beijing, Shanghai and Silk Road film festivals.

The agreement signed on Friday is valid for four years and is automatically extended for another period of the same length if neither side wishes the opposite.

The 2006 film "Jade Warrior," which also involved Finland and Netherlands as partners, is the only joint film production of Estonia and China so far.

Estonia has previously concluded agreements on cinematographic cooperation with Russia and Israel, as well as a cooperation memorandum on the same with South Korea. It has concluded an agreement on audiovisual cooperation with Canada, whereas cooperation with the other EU member states is taking place in accordance with the European Convention on Cinematographic Co-production.