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China / Politics

China and Germany expand cooperation

By Zhao Yinan in Beijing (chinadaily.com.cn) Updated: 2014-07-07 21:16

 

China and Germany expand cooperation

Chinese Premier Li Keqiang (R) and German Chancellor Angela Merkel meet the press after their talks in Beijing, capital of China, July 7, 2014. [Photo/Xinhua] 

Premier Li Keqiang met visiting German Chancellor Angela Merkel in Beijing on Monday, and the two countries signed several agreements – which represent part of their ambitious future plans.

China and Germany expect to strengthen cooperation in automobile, aviation, telecommunication and finance - as the world's two giant manufacturers are aiming for broader cooperation to tackle domestic economic challenges.

Volkswagen AG, which outsold General Motors Co. in China last year, is planning to open two new plants in China – at an estimated cost of $2.7 billion - to meet the growing demand of the world's largest auto market.

Chinese companies aim to buy 123 helicopters, as Airbus Group NV's helicopter division will be more involved in China's burgeoning general aviation industry, according to Xinhua News Agency. And Air China and Lufthansa are in talks that could lead the two carriers to form a revenue-sharing joint venture.

The two companies also hope to develop ecological cooperation involving a trial project at Qingdao Sino-German Ecopark, where ultra-low energy structure is being used to help reduce ecological footprints in the construction industry.

The telecommunications industry is expected to become a focus of cooperation between the two countries as China will participate as a "partner country" in the 2015 CeBIT - the world's largest and most influential computer expo - which will take place in Germany's city of Hanover.

China and Germany also aim to boost financial cooperation to support the real economy, as they plan to set up a high-level financial dialogue - and Beijing will grant a total 80 billion yuan of RQFII (RMB Qualified Foreign Institutional Investors) quota to accelerate RMB internationalization.

Li said China's economic growth accelerated in the second quarter from the previous three months, but added "we cannot lower our guard against downward pressure, and further modest government support measures will still be needed".

Two-way trade between China and Germany reached $161.6 billion in 2013, accounting for almost one-third of the total China-EU trade. China is Germany's largest trading partner in the Asia-Pacific region.

Merkel is on a four-day visit to China, accompanied by a high-profile business delegation including executives of Siemens, VW, Airbus, Lufthansa and Deutsche Bank. Experts said the two exporting powerhouses are making efforts to continuously improve their trade ties and cooperation in various sectors. Germany is eager to sell its products to the fast-growing Chinese market, and China is equally keen to learn from the experience of Germany to improve the country's economy.

Li spoke to reporters at a press conference after meeting with Merkel, and he stressed the importance of remembering history while exploring the future - as Monday marks the 77th anniversary of the start of the War of Resistance against Japanese Aggression.

Li said the Chinese people endured the Japanese aggression – but soon managed to overcome this period, and "lessons learned from the past can guide us in the future."

He also said countries can only "better explore the future and maintain world peace" when they remember their history "with a correct attitude."

 

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