Mr Wallace said much can be gained through trade links

The comment came from Enterprise Minister Jim Wallace, who is in China to promote Scotland.

Perth-based Bio-Rad (Europe) expects a five-fold increase this year in the number of neo-natal testing kits it supplies to China.

Axis-Shield, from Dundee, will use its products in diabetes research with the Chinese ministry of health.

Mr Wallace said China represented a land of opportunity for Scotland because of the size of its population.

In China we are focusing intensively on exporting knowledge and other key Scottish assets Jim Wallace Enterprise Minister

The birth rate in the country stands at 17 million per annum and it has an estimated 40 million diabetic patients. The latter number is increasing by one million annually.

Mr Wallace said: "The opportunities are greater still when it comes to areas such as the life sciences, where Scotland is a world leader.

"These two Tayside companies are a shining example of what is possible if you develop a good relationship with the Chinese.

New partnership

"The scale of the Chinese market means that the rewards can be great, but it requires a quality product, hard work and confidence to reap those rewards."

Mr Wallace said Scotland had been at the forefront of key health research breakthroughs, such as the discovery of antibiotics and the development of the first cloned mammal.

He added: "In China we are focusing intensively on exporting knowledge and other key Scottish assets to important markets such as Beijing and Shanghai.