Niue's Premier, Young Vivian, says he has secured about one million New Zealand dollars in funding from China during an official visit to Beijing and other cities.
Mr Vivian says Niue's government is yet to decide how to use the money exactly but he says it will be towards major project funds.
He says possible areas for allocation are wharf construction, airport maintenance, as well as roading and electricity upgrades.
The Premier says the visit marked the first serious step in Niue's relationship with China in terms of what they can do as partners in trade, tourism and agriculture.
"We are very, very impressed with China, the speed and how things are moving, and the way in which people are getting on with their lives, and doing things for themselves. It's the fastest growing economy in the world, we were told and after the visit we believed it, every word of it."