Through the Australian Academy of Technological Sciences and Engineering and at the invitation of the China State Science and Technology Commission, selected Chinese research institutes and universities involved in clay research were visited during May 1994, to explore potential areas for collaboration. Chinese industrial research on clays and clay modification were mostly concentrated on smectite and palygorskite group clay minerals Opportunities exist for collaboration on the development of modified clays for use in petroleum catalysts and in water treatment. Exchange of personnel between MESA and Shandong Bureau of Mineral Resources were explored in a series of meetings. benefits to the State are most likely to be in the long term. Future negotiations should aim at more equitable cost sharing between the two organisations in supporting exchange personnel.