China and Russia have agreed to create a 10-square-kilometer free-trade zone along their border near the port city of Vladivostok.

China Business Weekly reported the free-trade zone located in China's northeast and Russia's Far East region will be created with an initial investment of one billion US dollars.

A Hong Kong-funded property developer is carrying out construction of the first phase of the project on the Chinese side of the trade zone.

No information was immediately available regarding the Russian part of the project.

The project is expected to take 10 years to complete and provide a platform for trade, tourism and entertainment while encouraging manufacturing within a high-technology park.