Premier Li Keqiang and German Chancellor Angela Merkel speak with reporters at a news conference on Monday at the Great Hall of the People in Beijing . Wang Ye / Xinhua
Agreements include air services cooperation, new vehicle factories
China and Germany signed a series of trade and investment deals on Monday during a visit to Beijing by Chancellor Angela Merkel, including agreements on two new factories for Volkswagen AG and the sale of 123 helicopters by Airbus SAS.
The two countries are exporting giants - with Germany the European Union's biggest economy and China the world's second-largest - and Merkel aims to strengthen the economic relationship on her four-day visit, her seventh since taking office in 2005.
She was accompanied by executives from Siemens AG, Airbus, Deutsche Lufthansa AG and Deutsche Bank AG, among other companies, according to German media.
Merkel and Premier Li Keqiang oversaw the signing of a series of agreements on Monday.
According to a statement by Volkswagen, the German carmaker will build two new vehicle plants in the northern port city of Tianjin and Qingdao in the east as it invests 2 billion euros ($2.7 billion) along with Chinese auto manufacturer FAW Group Corp. >>>More
The new plants' production capacity will be finalized "based on market demand and relevant industrial policies", the company said in an e-mail to AFP.
Merkel toured a Volkswagen factory in the southwestern city of Chengdu on Sunday.
China has become Volkswagen's largest and most important market, the company said, adding the group sold more than 1.5 million vehicles in the country in the first five months of this year, including sales by its joint ventures FAW Volkswagen and Shanghai-Volkswagen.
European aerospace giant Airbus announced that its helicopter division has signed contracts to sell "a record" 123 aircraft over six years to three Chinese companies. >>>More
The helicopters - mainly light single-engine aircraft from the Ecureuil family and the light twin-engine EC135 - will be used for general aviation activities, it said in a statement. No financial details were provided.
"It is evident that China's relaxation of its low-altitude airspace regulations is enabling the country's burgeoning helicopter market to realize its potential," Airbus Helicopters Chief Executive Officer Guillaume Faury said in the statement.
Also on Monday, Lufthansa said it had signed a memorandum of understanding to form a joint venture with Air China Ltd. >>>More
The new partnership, which will come into force in October, will give passengers additional travel options and flight connections and allow Lufthansa "to have even better access to the second-largest aviation market after the United States", according to the German carrier.
China is a crucial mass market for Germany, with Chinese companies wanting its technology and millions of newly prosperous citizens craving German goods ranging from cars to luxury home appliances.
Germany last year sold goods worth 67 billion euros to China, its second-largest export market outside Europe after the US. Imports from China topped 73 billion euros.
Merkel later met President Xi Jinping, who said her country was an "important strategic partner".
"Germany is a country with sizable influence in the world," he said. "China places high importance on the development of our relationship."
He also wished Germany good luck in the ongoing 2014 FIFA World Cup soccer tournament in Brazil.
China still top choice for foreign investors
China's economic restructure will usher in a new era of German investment featuring automation, digitalization, environmental technology and renewable energy, according to the German Chamber of Commerce in China.
German businesses operating in China are performing robustly and remain relatively optimistic despite the economic slowdown, according to the Business Confidence Survey 2014 conducted by the chamber between May 12 and June 6.
German companies in China believed that economic conditions remain fairly stable compared with 2013 and they were "cautiously positive", the survey found.
The automotive sector in particular maintained a largely positive outlook.
A key point in the report was that, this year, there was a jump in the portion of companies expecting to exceed business targets compared with 2013. The survey suggested this indicated the Chinese economic slowdown was not as severe as anticipated. >>>More
Chinese investing big in Berlin
Chinese companies are making big investments in Germany, eyeing the country's advanced technology and management, a senior Chinese commerce official said.
"The value and the amount of Chinese investment in Germany are both rising quickly," said Meng Fanzhuang, mini ster counselor for commerce at the Chinese embassy in Germany.
Embassy figures show that about 2,300 Chinese companies are investing in German industries - such as finance, aviation , telecommunication and machinery - with a total investment of more than $4 billion.
Apart from setting up traditional trading firms, manufacturing bases and service companies, more Chinese investors are building research and development centers, bolstered by Germany's outstanding talent reserve and technologies, Meng said. >>>More
China, Germany to build yuan center
Beijing and Berlin agreed to launch an offshore yuan trading center on Friday as President Xi Jinping visited Germany on the third leg of his European tour.
The central banks from both countries - the Bundesbank and the People's Bank of China - signed a Memorandum of Understanding in Berlin to allow the clearing and settlement of yuan trades in Frankfurt.
The center, in Germany's financial capital, will be the first of its kind in the eurozone.
It forms part of a series of deals the two countries signed on Friday, which sources say could be worth billions of euros. China will also set up a consulate in Duesseldorf. >>>More
