Deals mark close relations between Germany and China


Video: German Chancellor meets Chinese Premier, major deals signed

 Germany has hammered out a series of major business deals with China, during Chancellor Angela Merke…
China-Gernany dealsInvestment quota for RMB program to strengthen Germany as yuan center
AT A GLANCE
Deals signed during Angela Merkel’s China visit
• Volkswagen aims to establish two plants in Qingdao and Tianjin with an investment of $2.7 billion.
• Airbus Group will sell 123 helicopters to Chinese companies for general aviation.
• Air China and Lufthansa are in talks that could lead the German and Chinese carriers to form a revenue-sharing joint venture.
• The two countries are planning a joint pilot project concerning Passive House, an energy-efficient method of construction, in Qingdao.
• China will take part as a partner country in the 2015 CeBIT, the world’s leading expo for information technology, in Hanover.

China and Germany will strengthen exchanges in the financial sector and upgrade longstanding cooperation in manufacturing with a slew of deals signed on Monday.

Beijing will grant Berlin an 80 billion yuan ($12.9 billion) quota under the Renminbi Qualified Foreign Institutional Investors plan to accelerate the internationalization of the Chinese currency, reinforcing Frankfurt’s status as a yuan clearing center in Europe, in addition to London and Paris.

A high-level financial dialogue will also be set up to boost financial cooperation, Premier Li Keqiang said at a news conference with visiting German Chancellor Angela Merkel.

President Xi Jinping told Merkel during their meeting, “The series of agreements you have signed during your visit to China will bring new impetus to bilateral ties.”

Xi suggests the two countries take bigger steps in their cooperation, with manufacturing industry as the core.

Merkel said Germany would improve its investment environment and attract more Chinese investors.

She is accompanied by a high-profile business delegation including executives from Siemens, Volkswagen, Airbus, Luft-hansa and Deutsche Bank.

Apart from the financial deal, the countries also signed deals on automobiles, aviation and telecommunications.

China approved London joining the RQFII plan in October, granting investors the right to use the yuan to buy up to 80 billion yuan worth of mainland stocks, bonds and money market instruments.

It later granted Paris the same quota in March.

Luxembourg is also lobbying Beijing for the same treatment after it signed an agreement with China’s central bank for yuan clearing arrangements on June 28.

Li Jianjun, a financial analyst at Bank of China’s International Finance Research Institute, said the competition for offshore yuan centers among major European cities is a healthy feature of cooperation.

“The renminbi is still at the initial stage of internationalization. We are expanding the offshore yuan pie and setting up a global network with overseas financial markets. Allowing qualified foreign institutional investors to use the yuan will benefit China and other countries,” Li said.

Chinese leaders are likely to take Frankfurt as a core center for renminbi clearing services in continental Europe, while establishing secondary yuan clearing sites in Paris and Luxembourg, Li said.

“We cannot cover a wide range and a large amount of renminbi-related businesses with only one center,” Li said. “With Frankfurt as a leading offshore yuan-trading city, we will create a nice layout for renminbi internationalization in Europe.”

In the first five months of 2014, Germany’s direct investment in China reached $810 million, or 30 percent of the $2.69 billion investment in China by all members of the EU, according to the Ministry of Commerce.

In 2013, two-way trade between the countries reached $161 billion, taking up almost one-third of total China-EU trade.

China is Germany’s largest trading partner in the Asia-Pacific region.

Merkel’s visit, her seventh trip to China, came only four months after the last meeting between leaders of the two nations. President Xi Jinping visited Germany in March.

Before flying to Beijing, Merkel stopped at Chengdu, capital of Sichuan province.

Merkel said she felt the dynamics and development of southwestern China in Chengdu, where urbanization is urgently needed to catch up with coastal cities.

“China’s vigor stays not only on the coastline but also in the central and west area,” she said.

Sebastian Heilmann, president of the Mercator Institute for China Studies, said in a recent interview with Deutsche Welle: “Germany provides China with products it needs for industrialization, for example ,machines, specialty chemicals and electronic goods. On the other hand, Chinese consumer goods with very reasonable prices are in high demand in Germany.”

Ren Baiming, a researcher at the Chinese Academy of International Trade and Economic Cooperation at the Ministry of Commerce, said Germany, as well as the European Union at large, need a driving force from the outside for growth, and the fast-growing Chinese market meets that need.

Wu Jiao contributed to this story. – By ZHAO YINAN and JIANG XUEQING (China Daily)
/Asia News Network

Related:

China, Germany pledge to boost cooperation, cement partnership

President Xi met with German Chancellor Merkel and pledged to cement the strategic partnership between the two countries.
China, Germany to promote ties to new progress
China, Germany closer as Merkel visits

Advertisements

2 Responses to “Deals mark close relations between Germany and China”

  1. rightways Says:

    Germany and Japan were allies and war criminals during WW2.

    WW2 ended after Russia firstly defeated Nazis Germany while Japan was subsequently defeated after suffered two atomic attacks by US and surrendered to China after 8 years war of resistance against Japan’s aggression.

    Germany repented, became friends to all, the #1 economy in Europe because its war criminals were completely eliminated, but Japan, the Nazis of the East is unrepentant, still troubles with China, managed to remain #2 economy in Asia because its right-winged politicians and war criminals were not completely eliminated but remain today.

    The history shows the rises of Britannica, German Nazism, Americana, Nipponica were thru wars and aggressions, but China rise is peaceful and internal, see the difference? China is now the #2 largest economy in the world, to overtake USA soon.

    Like

  2. rightways Says:

    German Chancellor Angela Merkel is one of the best leaders in the world compared to Japan’s PM Abe and US President Obama. She repented for German Nazi war criminals in War II (1889-1945) to become Europe #1 economy and friends to all including China, unlike Abe who never repent, still got problems with China. Japan still glorifies its war criminals despite defeated after suffered atomic attacks by America, surrendered after China’s 8 years resistance against Japan’s aggression,atrocities and militarism.

    Obama is a weak leader among American presidents as US economy imploded in 2008 still in limbo, the government shutdown, US is #1 cyber spying and hacking countries like German and China….. Obama cannot even handle Japan’s Abe, stirs up troubles everywhere: Iraq, Syria, North Africa/Middle East countries, Ukraine, East and South China Seas ….despite its mighty military powers.

    Like


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: