Dairy Queen says it will expand in China by opening at least 30 new stores by the end of next year.

It expects China to become its largest market in five years.

The Minnesota-based ice cream treat firm yesterday officially announced the opening of its first eight stores in Shanghai, where it operated on trial for half a year.

Minnesota Governor Tim Pawlenty, who is on a trade mission along with California Governor Arnold Schwarzenegger this week, visited the company's store in Beijing on Tuesday but could not do so in Shanghai yesterday due to a tight schedule.

DQ, whose US$3 billion global business is operated 99% via franchising, has signed a franchise deal with Shanghai-based RCS Group Co Ltd and Guangdong Foison to open 14 Dairy Queen locations in China.

DQ is seeking new partners in central China and plans to open at least 50 stores annually after next year.