The tone of this year's two sessions reflects an even tougher global and national economic and social environment than in 2015. Prime Minister Li Keqiang's government work report, while stressing a number of positive developments, is a sober assessment of China's challenges on the road to achieving a moderately prosperous society in 2020.

I applaud the Chinese government's commitment to further reform and opening-up in a tougher environment. This is needed and should quickly be backed up by action.

The sharp slowdown in some industries, especially in energy and heavy industry, but difficulties as well in the financial sector have given rise to doubts over whether China's pace of market reforms can be sustained.

Market reforms are about more competition, with a level playing field especially for private companies - both Chinese and foreign.

On further opening up, it will be equally important that the Chinese market be opened further to foreign investments and trade from Germany's perspective.

One important field where both China and Europe can make progress this year is on a Comprehensive Agreement on Investment, which could pave the way for starting the process toward a free trade agreement. Opening up can only work in the long run if it is implemented equally in both directions.

I welcome the government's emphasis on economic and social development.

With regard to some planned legislation in the fields of cyber security and NGOs, it will be important that the right balance is struck between security interests as well as China's interests in remaining open to the outside world and in deepening cooperation.

Germany wants to step up its partnership with China in its technological, economic and social modernization drive. This requires an open mind and fewer barriers.

The author is German Ambassador to China

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