Penglai, a fairyland-like prefecture in Yantai, East China's Shandong province, established a sister relationship with Australia's Barossa, one of the world's finest wine producing regions, on March 25.

Yang Shengyan, mayor of Penglai, and Scotty Milne, vice head of the Barossa region, took part in the signing ceremony.

Yang said that Penglai has established many friendly and cooperative sister relationships in the world and this agreement is proof that its relationship with the Australian wine region numbers among them and has entered a new development stage.

He also said that the two sides should take this opportunity to enhance exchanges, trust and cooperation, adding that they can complement each other with their respective advantages in industrial development to strengthen economy and trade, science and technology and education.

Milne said that Penglai is a vibrant and dynamic tourism city with a great deal in common with Barossa, especially in tourism and wine production, notwithstanding their wide geographical separation. He expressed the belief that mutual trade and economic cooperation would bring both sides great progress.

Located on the northwest corner of the Shandong Peninsula on the southern coast of the Bohai Sea, Penglai is a county-level city of Yantai, Shandong province. Tourism is the mainstay of its economy, bringing more than two million tourists annually, while wine-making is its second largest industry.

Barossa in South Australia is one of the world's finest wine growing regions, renowned as well for its food, cultural experiences and easy-going lifestyle.