China-Germany Relations: Premier Li & Chancellor Merkel promote free trade in Berlin

World
Europe

02:24

China and Germany - standing together against protectionism. Chancellor Angela Merkel has met with Chinese Premier Li Keqiang in Berlin, with trade, investment and business deals, high on the agenda. The meeting comes at a time when China and the European Union are engaged in trade disputes with the United States. CGTN's Guy Henderson reports from Berlin.

Economic cooperation was top of the agenda. One of Germany's largest companies signed a deal that could see it open a factory in China without a local partner. That wasn't allowed until last month from restrictions on foreign ownership were eased. The message "keeping close ties pays off."

ANGELA MERKEL GERMAN CHANCELLOR "BASF's investment shows new possibilities for participation in China: it no longer has to be a joint venture. In auto mobile production there are also new possibilities to get more than a 50 percent participation which shows that China's market opening in these areas is not just words but that deeds follow."

But human rights was also part of that opening up, said Li Keqiang.

LI KEQIANG CHINESE PREMIER "Free trade is important for both sides and for the revival of the world economy. We have also addressed human rights issues and activities by civil society in China."

But it is an escalating trade war that worries both the Chinese and German leaders most. Chancellor Angela Merkel later told business leaders there were ways to lessen the effects.

ANGELA MERKEL GERMAN CHANCELLOR "I hope that the upcoming EU-China summit in China brings more progress such as in investment protection agreements. I also hope that Germany and China can make a contribution towards ensuring that the world does not end up blundering into a spiral of trade conflicts."

Conflicts that could hit the world's three largest exporters - China, America, and Germany - hardest of all.

GUY HENDERSON BERLIN "The German government shares some U.S. concerns about China's economic policies. But it also views Washington's chosen method of countering them as disastrous. And Beijing agrees. So now these two leaders are under pressure to show that their way - multilateralism -- works better than Donald Trump's. GH, CGTN, BERLIN."