The Carlyle Group has signed a memorandum of understanding with China’s second largest province, The Wall Street Journal reports.

Carlyle's agreement is with Shandong's Department of Foreign Trade & Economic Cooperation, a division responsible for connecting local companies to foreign investors and promoting the province's enterprises overseas. The agreement includes plans to help Chinese companies based in Shandong in their efforts to expand overseas. The coastal province of Shandong is a powerhouse in industries ranging from chemicals to household appliances to beer.

Carlyle hopes the memorandum of understanding will help it land more deals in China, a country where provincial governments play important roles in industry as shareholders, regulators and promoters of local companies.