Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at Central University of Finance and Economics in Beijing. The article reflects the author's opinion, and not necessarily the views of CGTN.

China's Premier Li Qiang is on his first visit to Germany and France, which was taken as a signal to boost bilateral cooperation between China and Europe.

Why did the Premier choose Europe, specifically Germany and France, for his first overseas visit less than four months since taking office?

From the perspective of economy and trade cooperation, Germany has been China's largest trading partner in the European Union for many years. According to the German Federal Foreign Office and Investment Agency, China has been Germany's largest global trading partner for seven consecutive years as of the end of 2022.

In 2022 alone, the bilateral trade volume between China and Germany reached $227.63 billion, with Chinese exports amounting to $116.23 billion, a year-on-year increase of one percent. From January to March this year, the bilateral trade volume between China and Germany reached $51.44 billion.

The business cooperation has been deepening in recent years. In 2022, BMW, Volkswagen, BASF and other German big corporations expanded their business and increased their investment in China. For example, BMW Group claimed they are optimistic about the long-term development prospects of the Chinese market, saying it will continue to firmly establish itself in China and build a solid win-win relationship with Chinese partners.

Volkswagen has witnessed and deeply participated in the Chinese automotive industry's unprecedented growth, surpassing other markets at a record pace, and becoming the world's largest automotive market.

The first unit of the integrated base project invested by BASF Group in south China's Guangdong Province was officially put into operation this year. It is the largest single project invested by a German company in China. BASF Group stated that further developing the Chinese business is of strategic significance and economic value to BASF and that it will further promote the group's regional diversification. BASF is confident in participating in China's future development.

The steady progress of economic and trade cooperation between China and Germany is inseparable from the continuous and stable communication mechanisms established between the top leadership of the two countries.

Consultations always yield positive results. For example, during the 6th Round of China-Germany Inter-Governmental Consultation, both sides agreed to deepen cooperation in the fields of economy, trade, investment, automobile manufacturing, high technology, new energy, digital economy, and humanities, aiming to achieve mutual benefit and win-win outcomes. As expected during Premier Li's visit., the two countries have engaged in discussions on topics such as green economy, climate change, biodiversity, and electric vehicles.

France is the second stop of Li's trip. Since French President Emmanuel Macron's visit to China in April, bilateral relations have remained active.

During the 5th meeting of the Council of China-France Entrepreneurs in April, 36 companies from both sides signed 18 cooperation agreements in areas such as manufacturing, green industry, new energy, and innovation. According to the Ministry of Commerce, French investment in China increased by 429.7 percent year-on-year from January to May this year.

Beyond economic and trade cooperation, Beijing and Paris have also held numerous exchange activities in areas such as culture, technology, and industry.

China's relations with Germany and France have always been typical examples of China-Europe cooperation. The world expects that Premier Li's visit can result in a fruitful consensus between China and major European countries, which will undoubtedly stimulate the world economy. 

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