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Economy tops agenda of Merkel's visit to China

(Xinhua) Updated: 2014-07-06 08:05

Business high on the agenda

Economy is widely regarded as the focus of Merkel's China trip, based on an emerging "economic symbiosis" between China and Germany.

Currently, Germany is China's largest trading partner in Europe. The opposite: China is Germany's most important trading partner in Asia and a crucial market for German export goods.

The enormous growth of Sino-German economic relations lies in the fact that the two countries have complementary economies, Heilmann noted.

"Germany provides China with products it needs for industrialization, for example machines, specialty chemicals and electronic goods; On the other hand, Chinese consumer goods with very reasonable prices are in high demand in Germany," he added.

The investment cooperation between China and Germany is no longer a "one-way street". More and more Chinese companies are active internationally and investing in Germany. Heilmann believed the competition for Chinese investment between European countries will intensify in the future.

On her visit to China, which will last until Tuesday, Merkel is accompanied by a large business delegation,including top executives of Volkswagen, Siemens, Airbus, Deutsche Bank. A series of economic agreements are expected to be signed.

On Sunday, Merkel will begin her trip in Chengdu, the capital of China's southwestern Sichuan province.

Berlin has had a general consulate there for ten years, given that Chengdu is regarded by German companies as a springboard to the relatively underdeveloped western parts of China. About 160 German companies are now active in the area, among them a Volkswagen factory which the chancellor is set to visit.

German media also noticed that the recently founded Sino-German Advisory Committee on Economy will meet in Beijing for the first time, in the presence of Merkel and her Chinese counterpart, Li Keqiang.

The committee's aim is to identify trade problems between the two countries and make specific policy recommendations, which will then be analyzed by the respective governments, Heilmann told media.

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