German Chancellor Angela Merkel's official visit to China included talks with President Xi Jinping and Premier Li Keqiang. That's come as China-Germany ties have developed well in recent years, particularly in such areas as technological cooperation with companies like the global design start-up, NIO, known for its smartly designed premium electric cars. CGTN's Natalie Carney has more from Germany's auto manufacturing capital, Munich. 

The fastest electric car in the market. The EP9, an electric car with 1,360 horsepower, able to reach 160 mph in 7.1 seconds along with the ES8, a more practical family sized car launched last December to the Chinese market have established NIO as a premium electric car developer.

NIO is a new China-based company, but has quickly been building headquarters and staff around the world.

Chris Tomasson is the Vice President of Design at NIOs design HQ in Munich Germany.

Chris Tomasson Vice President of Design NIO "Munich was really chosen for our design centre of excellence, cause we know automotive design, particularly in Europe and Germany is very well regarded the world over. When we set up the studio here we knew we could attract a lot of key talent. The quality, the execution was going to be just perfect for the type of product we wanted to do."

The decision to open an office in Germany also serves NIO's main consumers in China where over 700,000 electric vehicles were sold last year.

Hui Zhang NIO Managing Director Germany "I think there is some reason why Chinese like German product and German industry. First of all German products have a very good reputation worldwide, which gives automatically confidence to the Chinese consumers. And secondly, I think between German and China, both governments are more concentrating on industry and economic exchange with each other."

This is proving especially true as the US threatens trade policies that are could upset the global economy. 

Natalie Carney Munich, Germany " 'Chinese made' was once synonymous with fast, mass-produced goods…but that is all changing. More and more Chinese companies such as NIO are looking West for design and technology cooperation in line with the governments 'Made in China 2025' strategy, which aims to associate the "Made in China" brand with innovation, quality and efficiency." 

Germany is the most popular investment destination for Chinese companies in Europe.

In 2016, China spent more than ten billion euros on company investments and takeovers in Germany, mostly in the automotive, robotics, energy systems and biomedicine sectors.

Yet there is concern that this could lead to a considerable Chinese advantage as they add improved design and quality to their ability to affordably mass-produce.

 Hui Zhang NIO Managing Director Germany "Compared to the International the new ES8 is still very price competitive. Our car price has a big price advantage."

As well, many European companies claim restrictive investment policies in China make it difficult for them to operate there.

In the meantime, China's recent decision to reduce import tariffs on automobiles and their parts is being seen by some as a nod towards further opening up the Chinese market. Natalie Carney, CGTN, Munich, Germany.