BEIJING - German Ambassador to China Michael Clauss said in a recent interview with Xinhua that innovation will be the main topic of discussion for an expected visit by German Chancellor Angela Merkel to China later this year.

"China has the 'Made in China 2025' strategy and Germany has the 'German Industry 4.0' project," said Clauss. "The two countries could cooperate in this field and help raise China's industrial manufacturing to a new level."

This year is the Year of China-Germany Innovation Cooperation. "Industry 4.0" is part of Germany's industrial strategy to integrate information technology and conventional manufacturing.

"Made in China 2025" is a ten-year national plan to upgrade China from a manufacturing giant into a world manufacturing power.

Clauss said huge potential for cooperation remains for Chinese and German businesses as more of them seek international partnerships.

"Both foreign companies operating in China and Chinese enterprises could improve productivity through cooperation and competition," he said, adding that he hopes the Chinese government will send more signals on welcoming foreign businesses and opening the Chinese market.

Claus said he is not pessimistic about China's current economic slowdown or the recent stock market turmoil.

"I believe China's current economic transformation is a difficult process," he said. "But I don't think the Chinese economy will make a 'hard landing.'"