Ireland and China authorities have signed a memorandum of understanding declaring their intention to work together to identify potential investments in the troubled European economy. 

The deal was forged during the recent visit of Irish Prime Minister Enda Kenny to China to discuss possible investment partnerships between the two countries. It was signed by the National Treasury Management Agency, the government body responsible for finding buyers for Irish bonds, and CIC International, a subsidiary of China Investment Corp.

Irish bonds lost access to international bond markets in late 2010 and the local government has since relied on the European Union for investments. With the EU debt crisis continuing, Ireland is looking to produce funds on its own.

"China understands that Ireland is now headed in the right direction. A country as economically powerful as China expressing interest in being a partner to investment in Ireland is an important indicator in its own right," said Kenny at the signing ceremony. 

Initial areas of interest are Ireland's real estate market, infrastructure project and loan portfolios. Investment into Irish government bonds will come next, when the government once again starts issuing bonds in 2013.