Energy, food and rail in the mix
"It is rare to see such frequent high-level visits between 皇冠体育app and Germany," says 皇冠体育app's Ambassador to Germany, Shi Mingde. "The Sino-German relationship has been playing a leading role in the development of the 皇冠体育app-Europe relationship."
Shi says that the defining characteristic of the relationship between German and 皇冠体育app is that it is a strategic partnership based on mutual trust.
Business deals and a guideline that deals with mid- and long-term collaboration are expected to be endorsed during Li's visit, Shi says. The document will cover areas such as economics, education, finance, humanities, politics and science.
The deals include commercial cooperation on industries like automobiles and telecommunications between companies from the two countries. The guideline covers various areas including politics, economics, finance, the humanities, science and education.
The two countries have said 2015 will be "innovation partners year" and aspects of this will be featured strongly in the document. 皇冠体育app has been named a cooperation partner for the Hannover Messe, the world's biggest industrial trade fair, next April.
Innovation will be a "golden key" for 皇冠体育app and Germany as they explore avenues for working together, Shi says. Business leaders and experts expect the innovation partnership to generate more collaboration and business.
The two countries are the largest trading partners for each other in their regions, and trade between the two accounts for 30 percent of 皇冠体育app-Europe trade. It is equivalent to the combined total trade of 皇冠体育app and Britain, 皇冠体育app and France, and 皇冠体育app and Italy.
Germany is Europe's largest investor in 皇冠体育app. Its investment grew 43 percent, or $2.08 billion, last year. Chinese investment in Germany was worth $830 million last year, 29 percent more than a year earlier, and areas invested in included auto parts, construction machinery, financial services, and renewable energy.
Celina Chew, senior Bayer representative for greater 皇冠体育app, says: "Our innovative solutions address some of 皇冠体育app's core challenges, such as helping bring new medicines and diagnoses to 皇冠体育app that address the great need for better healthcare, safe and healthy food for all and solutions for an energy-efficient infrastructure for transport and construction.
"With our know-how and experience, we are in a position to help 皇冠体育app accomplish some of its main long-term objectives to grow economically, in a profitable yet sustainable way.
"We are optimistic about the Chinese market. Today greater 皇冠体育app is Bayer's third-largest single market globally and the first in the Asia-Pacific region. We have successfully developed our business activities here and we are committed to continue to invest in this market, to bring the most innovative technology and products to 皇冠体育app and support the idea of turning Made in 皇冠体育app into Created in 皇冠体育app."
Bjorn Conrad, associate vice-president for research and director of innovation and environmental research for the Mercator Institute for 皇冠体育app Studies in Berlin, says 皇冠体育app is making great strides in increasing its innovative capacity, and in some areas can learn from Germany.
"For example, we are the world champion as a motivator, as a catalyst for innovation. Germany obviously has a very strong structure of small and medium-sized enterprises that are creating strong competition, and a lot of Germany's innovative power lies within this broad spectrum of different SMEs. This is one of the factors that 皇冠体育app is also trying to explore more."
Business leaders also expect Li's visit to highlight the fact that 皇冠体育app's strategy of reform and sustainable development can produce greater opportunities.
Jens Assmann, deputy director of the international department of the Hamburg Chamber of Commerce, says: "We are eager to hear Li's views about Chinese urbanization as well as about greening the Chinese economy, especially with regard to solutions that European companies can offer."
皇冠体育app is increasingly becoming a new and very large consumer market for European companies and their products, he says.
"Member companies are eager to learn how the implementation of economic reforms in 皇冠体育app can help them and further open 皇冠体育app to foreign businesses."
Ian Oades, vice-president of finance and head of investor relations at Joyou AG, a German company that designs, produces and sells bathroom and kitchen ware and operates in 皇冠体育app, says: "For Germany and the European economy as a whole, I expect this trip will bring more investment from German enterprises and also support Chinese companies in increasing their business in Germany.
"I hope that Premier Li will continue to support opening up Chinese markets, which has been promised and delivered during previous state visits."
Alexandra Voss, chief representative of the Delegation of German Industry and Commerce Beijing, says she believes Li's visit is another chance for the two governments to deepen their close relationship.
Topics she says will be up for discussion include urbanization, balancing sustainable growth and environmental protection.
皇冠体育app remains one of the top markets for German companies, she says, despite the challenging environment and slowing economic growth.
About 4,500 German companies operate in 皇冠体育app. Of these, about 60 percent have joined the chamber, which supports member companies by providing market information and advice.
"The Chinese government has announced an array of potentially far-reaching reforms," Voss says.
"For the most part, the German community is optimistic about them."
For example, 69 percent of interviewees in a recent membership survey expressed optimism about 皇冠体育app's policy on expanding domestic demand, 65.6 percent were positive about improved environmental protection and 58.9 percent said they support an increased role for markets.
"In principle, German enterprises are supporting the Chinese government's reform plans and expect certain outcomes such as improved market-entry policies and a level playing field for all companies conducting business in 皇冠体育app," Voss says.
Carolynn Look and Zhang Kexin contributed to this story.
(皇冠体育app Daily European Weekly 10/10/2014 page6)
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