By Mabvuto Banda

LILONGWE, April 4 (Reuters) - China will provide $287 million in aid to Malawi during the next five years, a far cry from the $6 billion that had been touted when the two countries formally established diplomatic relations late last year.

Malawian President Bingu wa Mutharika announced the funding on Friday after returning from a state visit to China, praising Beijing for providing what he described as one of the largest aid packages received by the impoverished African nation.

"Malawi also plans to deepen trade and investment ties with China as part of a larger strategy to diversify our agriculture-dominated economy," he told a news conference in the capital Lilongwe.

Malawi, which was one of the last countries in Africa with diplomatic ties with Taiwan, cut relations with Taipei in late December and established links with China, an emerging economic power in Africa.

At the time Taiwanese officials said the island nation could not match a Chinese offer to provide some $6 billion in aid to Malawi.

But Malawian officials never said that was the amount they expected from China, though they confirmed that the prospect of increased aid was the main reason for breaking ties with Taiwan after 41 years.

China's government and its state-controlled companies have invested billions of dollars in Africa in a bid to tap natural resources for the Asian giant's growing economy and build Beijing's political influence in the developing world.

Malawi will use some of the Chinese funding to build a highway linking it with neighbouring Zambia and finish the construction of a government building in Lilongwe that was started by the Taiwanese.

China and Malawi have also signed an agreement allowing Malawian exports access to the Asian nation on a preferential tariff basis. (Editing by Paul Simao and Charles Dick)

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