California and China have signed an agreement to look for ways to boost trade and investment.

But Brown told the American Chamber of Commerce in China Wednesday that he's not inclined to offer deep incentives to investors after having just resolved $27 billion budget deficit.

Chinese Vice Commerce Minister Wang Chao told Brown that a third of Chinese exports to the U.S. end up in or pass through California, and that China imports electronics, machinery, chemicals, fruit and other goods from the state.

The agreement signed Wednesday sets up a joint task force between California, China's Commerce Ministry and six Chinese provinces and regions to look for ways to expand investment and trade. Sectors identified for cooperation include infrastructure, environmental protection, agriculture and bio- and information technology.