Greeted by Premier Li Keqiang, he received a 19-gun salute, inspected a guard of honour with a military band in tow and was honoured with a march-past before settling in for talks.
Mr Key said Mr Li had said to him it was a welcome for "a real friend and it's a sign of the way we value your visit here".
The PM said his host commented on the size of the contingent he had brought him. Mr Key told him it was a reflection of the relationship.
He said that what came through strongly in the meeting with Mr Li was the Premier's optimism that NZ would be added to the small group of countries whose currency can be converted directly into the yuan.
It makes life a lot simpler and less risky for exporters.
Mr Key raised the issue of human rights, but only to confirm the process in which the two countries deals with them - an annual dialogue - rather than raising issues specifically.
Among a suite of other measures agreed upon, the biggest change was the decision by Beijing to allow multiple entry over three years to business travellers from NZ, which will be a big relief to the growing number of Kiwis doing business in China.
At present, there is no multiple-entry visa; an entry permit has to be granted for each visit, at $140 a pop.
New Zealand has increased it current multiple-entry visa for Chinese doing business in New Zealand from one year to three years.
Among other measures, the two leaders agreed to work more closely to try to stem the flow of precursor chemicals used in the manufacture of illegal drugs such as methamphetamine.
Mr Key also briefed Mr Li on the joint United States-New Zealand proposal to establish the world's largest marine protected area in the Antarctic's Ross Sea, and the three countries are going to hold a special meeting to discuss the proposal in the next few weeks.
The Prime Minister said he raised the issue of North Korea and conveyed New Zealand's "deep concerns."
"We appreciate the significant steps China has taken on this issue in the past and as chair of the six-party talks, and more recently in supporting strengthened United Nations Security Council resolutions on North Korea's missile and nuclear testing."
