Under terms of a memorandum of understanding signed last week, they will work together on e-commerce and e-government, third generation mobile standards, mobile Internet applications, digital TV and broadband applications.
The agreement, which looks set to boost the UK's high-tech and telecoms trade with China, worth £120m annually, comes nine months after a visit to the region by UK trade and industry secretary Patricia Hewitt.
During the trip, Hewitt, who was then the UK's e-commerce minister, met Wu Jichuan, head of the ministry for information industries, China's telecommunications regulator for telecommunications and the Internet.
Commenting on the agreement, Hewitt said the UK and China were facing similar challenges, with both countries modernising their regulatory frameworks to take account of convergence, both promoting consumer confidence, and both seeking to develop a more coherent framework for cross-border e-commerce.
Early next month, the two countries will host a joint e-commerce and ICT seminar in Beijing.