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Existing Sino-German partnership of overall co-operation, based on mutual trust, benefits and equality, can make new progress with concerted efforts, President Hu Jintao said Monday.

Chinese President Hu Jintao holds talk with German Chancellor Gerhard Schroeder in Beijing, December 1, 2003. [newsphoto.com.cn]

In separate meetings with German Chancellor Gerhard Schroeder, Hu and Premier Wen Jiabao highly valued the fast growth of bilateral relations in recent years.

Schroeder touched down in Beijing Monday morning, accompanied with dozens of senior officials and business leaders.

Schroeder, on his fifth trip to China since taking office in 1998, will also visit the southern province of Guangdong and the southwestern province of Sichuan.

Chinese analysts said that frequent high-level visits by the two countries have demonstrated strong willingness of all parties to push forward this relationship in an all-encompassing and in-depth manner.

Gu Junli, director of the Europe Research Centre of the Chinese Academy of Social Sciences, said that politically, the two sides had established mutual trust which built a solid basis for promoting closer ties with one another.

During Monday's meetings with Hu and Wen, Schroeder said that the German people would never forget China's persistent support for the reunification of Germany, and that they would firmly abide by the "one-China'' policy and insist on no arms sales to Taiwan, which received appreciation from the Chinese side.

Wen said that China hoped Germany would play a positive role in encouraging the European Union to grant China "complete market economy status'' and lift the EU's ban of arms sales to the Chinese mainland.

Economic and trade relations between the two countries have long been considered a success story.

Schroeder's first activity Monday in China was to attend an opening ceremony of the first Sino-German joint venture travel company.

The giant joint venture includes Germany's Touristik Union International (TUI) and China Travel Service Corp in addition to other partners. In keeping with China's commitment to the World Trade Organization (WTO), foreign investors have been allowed to hold shares in tour agencies in China by the end of 2003 and to set up wholly owned agencies by 2005.

The Sino-German travel venture, to be controlled by TUI, will be the first of its kind in China.

Schroeder and Wen witnessed the signing of 11 agreements on bilateral co-operation yesterday after their meeting.

"This indicates that the two economies are highly complementary to each other, and there is a great potential and broad prospects for bilateral co-operation,'' said Gu.

This time, more than 38 German business leaders, including Siemens AG chief executive Heinrich von Pierer, joined Schroeder's trip that will focus on fostering burgeoning economic ties with China.

"Economic partnership has been one of the outstanding features of bilateral relations,'' said Gu, adding that it is a good opportunity for both sides to promote tighter business ties and tap huge market potential as Germany is suffering an economic winter and China is ambitious in its "Go West'' strategy.

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