A Chinese space laboratory will be set up in Luxembourg, after the two countries struck an agreement to cooperate on space exploration.
The Research Laboratory for Deep Space Exploration will be an independent legal entity that carries out scientific research and technology development, the government said.
It will initially employ five people.
The laboratory will contribute to the Luxembourg government's SpaceResources.lu initiative, which aims to explore the natural resources of space such as asteroids.
It will also research universal interplanetary communications network-related technology or advanced deep space communications technology.
The agreement to bring the laboratory to Luxembourg was struck between the Economy Ministry and the National Space Science Centre of the Chinese Academy of Space.
Luxembourg deputy prime minister and economy minister Étienne Schneider is visiting China this week.
Schneider also struck a broader memorandum of understanding between the Economy Ministry and the China National Space Administration that provides a framework for cooperation between Luxembourg and China in the exploration and use of outer space for peaceful purposes.
The areas of potential cooperation include, but are not limited to, economic, legal, regulatory and technological aspects of the utilisation of space resources, the government said.
The space industry in Luxembourg has boomed in recent years – and now accounts for almost 2% of GDP and employs more than 700 people.
Last year, Luxembourg became the first country in Europe to adopt a space exploration law which recognised space resources could be owned by private companies.