China and Papua New Guinea established diplomatic relations on October 12, 1976. Since then, the development of the relations between the two countries has been smooth in the main. The first Chinese non-resident ambassador assumed office in October 1977 and the Chinese Embassy in Papua New Guinea was officially opened in November 1980. The Chinese resident ambassador took office in June 1983. Papua New Guinea set up its embassy in Beijing in April 1988 and accredited a resident ambassador.

The Chinese leaders who have visited Papua New Guinea include: Mr. Hu Yaobang, Secretary-general of CPC (April 1985), Mr. Li Xiannian, Vice Premier (May 1980), Mr. Qian Qichen, Vice Premier and Foreign Minster (July 1996), Mr. Zhu Xuefan, Vice Chairman of the Standing Committee of the National People's Congress (NPC) (December 1982), Mr. Tian Jiyun, Vice Chairman of the Standing Committee of the NPC (April 1994); Mr. Wang Hanbin, Vice Chairman of the Standing Committee of the NPC (October 1996); Mr. Zhang Wenkang, Chinese Government Envoy and Minister of Health (September 2000); Mr. Wang Guangya,  Vice Minister of Foreign Affairs (March 2001); Mr. Sun Zhenyu, Vice Minister of Foreing Trade and Economic Cooperation (MOFTEC) (March 2001); Mr. Li Ruihuan, Chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) (November 2001).

The leaders of Papua New Guinea who have visited China are: Hon. Serei Eri, Governor General (May 1991), Hon. Michael Somare, Prime Minister (October 1976), Hon. Rabbie Namaliu, Prime Minister (April 1991), Hon. Bill Skate, Prime Minister (December 1998), Hon. Dennis Young, Speaker (March 1989), Hon. Bill Skate, Speaker (August 1993), Hon. John Pundari, Speaker (May 1998), Hon. Julius Chan, Deputy Prime Minister (October 1978, April 1990, January 1993, July 1994), Hon. Iambakey Okuk, Deputy Prime Minister (May 1981), Hon. Paias Wingti, Deputy Prime Minister (February 1985), Hon. Peter Waieng, Minister of Defense (May 1999), Hon. Michael Somare, Foreign Minister (October 1999); Mr. Narokobi, Speaker (May 2000); Sir John Kaputin, Minister of Foreign Affairs (August 2000);  Hon. Kilroy Genia, Minister of Defense (July, 2001); Hon. Michael Ogio, Deputy Prime Minister (September, 2001).

In December 1992, Mr. Gabriel Dusava, Secretary of the Ministry of Foreign Affair of Papua New Guinea, visited China and signed with Mr. Liu Huaqiu, Vice Foreign Minister, Memorandum of Understanding on Institutionalizing Consultations between Officials of the Foreign Ministry of Papua New Guinea and the Ministry of Foreign Affairs of the People's Republic of China, and the two sides held the first consultation. The two parties decided that such consultations between the officials of the two foreign ministries should be held once a year in principle and alternately in the capitals of the two countries. The 8th consultations were held in Beijing in May 2001.

In 1988, the city of Jinan established sister-city relations with Port Moresby, capital of Papua New Guinea. In June 1998, Shandong Province established sister-province relations with East Sepik Province. In May 2000, Fujian Province established sister-province relations with Eastern Highlands Province.