Merkel pushes trade ties

By Jiang Jie Source:Global Times Published: 2014-7-7 8:57:58

Chengdu stop to tap business potential in western China


German Chancellor Angela Merkel learns how to cook kung pao chicken, a famous local dish, at a restaurant in Chengdu in Southwest China's Sichuan Province on Sunday. Merkel, who is on a visit to China, showed her flair for public diplomacy by shopping at a popular local market. According to the Sichuan Daily, she toured the market for some 20 minutes and bought soybean paste and chili powder. Photo: CFP

German Chancellor Angela Merkel Sunday arrived in Beijing for political talks with Chinese leaders following a one-day visit to Chengdu, capital of Southwest China's Sichuan Province, to tap business potential for German firms in western China.

The first day of Merkel's three-day visit, during which she met local officials, visited a market and toured a factory operated by German car manufacturer Volkswagen, wrapped up with a dinner meeting with Premier Li Keqiang at the Diaoyutai State Guesthouse in Beijing.

China is a crucial market for Germany, the EU's largest economy. Chinese companies crave German technology, while millions of newly prosperous citizens are snapping up German goods ranging from luxury sedans to high-end home appliances.

Last year, Germany sold goods worth 67 billion euros ($91 billion) to China, its second-largest export market outside Europe after the US. Imports to Germany from China, meanwhile, topped 73 billion euros.

Among the companies represented in Merkel's delegation - and eyeing deals that could further cement bilateral ties -are Siemens, VW, Airbus, Lufthansa and Deutsche Bank, according to German media reports. The deals may include a joint venture between Lufthansa and Air China.

Germany's international broadcaster Deutsche Welle (DW) commented that, "How much China means to Germany is obvious given the number of trips Chancellor Merkel has made to the country: seven." The report added that no other European leader has met with the Chinese leadership as much as Merkel.

In March, Chinese President Xi Jinping visited Berlin. This spring it was Germany's turn, with both its foreign minister and economy minister traveling to Beijing. In the fall, a Chinese delegation led by Premier Li Keqiang will head to Berlin for intergovernmental talks.

Zhang Shengjun, a deputy director of the School of Political and International Studies at Beijing Normal University, said that Merkel's seventh visit shows that Germany recognizes China's contributions to the world, as well as the importance of bilateral economic cooperation.

Zhang said he couldn't rule out the possibility that Merkel's visit is aimed at aiding Germany in its competition with France and the UK for the Chinese market.

Ding Chun, director of the Center for European Studies at Fudan University, said that China needs urbanization and industrialization to develop its western regions, and that Germany has the edge in these sectors. "More in-depth cooperation can be expected in fields such as environmental protection, new energy and finance."

On Monday, Merkel will hold talks with Premier Li, who will receive her with a red-carpet welcome ceremony.

DW said that the recently founded Sino-German Advisory Committee on Economy, whose goal is to identify trade problems and offer policy recommendations, will meet in Beijing for the first time, in the presence of Merkel and Li.

Merkel will also meet President Xi in Beijing.

Close economic bonds between Beijing and Berlin will also help forge strong political ties, Zhang said.

Unlike the US or Japan, there are no  major geopolitical discrepancies between Germany and China. Therefore, it is easier for the two sides to reach consensus, Zhang noted, adding that China should place more emphasis on diplomatic ties with Europe.

According to Zhang, although there are some political barriers for the two countries, such as the Tibet question, they can be overcome.

Merkel angered Beijing in 2007 by meeting the Dalai Lama. But during this latest visit, press reports have noted that any discussion about human rights is likely to take place behind closed doors, an approach that German officials have argued can be more effective in China than finger-wagging reprimands.

Agencies contributed to this story



Posted in: Diplomacy

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