Merkel visit leads to new optimism

China will expand opening-up, to benefit Germany and world: Xi

German Chancellor Angela Merkel’s visit to China is set to bring fresh opportunities for the world’s second- and fourth-largest economies to revive their businesses and economies, which have been hurt by the China-US trade war and global uncertainties, analysts said.

Chinese President Xi Jinping said Friday that China will match its words with deeds to expand opening-up, when meeting with Merkel in Beijing on Friday, the Xinhua News Agency reported.

“The Chinese market is large enough and will grow larger as China develops,” said Xi, noting that China’s greater opening-up is gradually extending from the manufacturing sector to financial and service sectors, which will bring more new opportunities to Germany and the rest of the world.

China has been rolling out measures in recent years to open up its market, and German enterprises tend to benefit most from such moves, said Cui Hongjian, director of EU Studies at the China Institute of International Studies.

“It’s also equally impor

tant ta for Germany to widen its market to Chinese merger investment. i and acquisition German firms targets are always of Chinese favorable capital,” ta Cui told the Global Times Friday.

Merkel also met with Chinese Premier Li Keqiang on Friday morning. During their meetin ing, Merkel said Germany is open to Chinese in investment and welcomes Chinese investment, an and has pushed for a European investment deal w with China, Reuters reported.

Data from China’s Ministry of Commerce sh showed that China invested $1.01 billion in Germ many from January-July, up 27.6 percent year-onye year. Investment from Germany in China grew 6 62.7 percent year-on-year to $1.17 billion.

Li said China hopes Germany would accept more Chinese companies and loosen export co controls on certain goods.

Merkel said the trade war between China and th the US affects the whole world and hopes it will b be resolved soon, according to reports.

Germany’s economy has been dragged down by global uncertainties and the trade war, which h have taken a toll on its manufacturing sector and it its exports.

Facing with such situation, Germany needs a ““good prescription” to cure its economy, which might face a recession. China can be a key partner in economic and trade ties, said Chen Fengyin ing, a research fellow at the China Institutes of C Contemporary International Relations.

Chen noted that the newly emerging high te technologies represented by artificial intellige gence, autonomous driving, 5G networks and d digital economy can be the areas for China and G Germany to strengthen their cooperation.

“On those fronts, China has seized a leading p position in the world, and its experience can h help Germany,” said Chen.

UUnderstanding HK situation

Li and Merkel also talked about the recent tu tumultuous situation of Hong Kong.

Li said that the Chinese government unswervin ingly safeguards “one country, two systems” and “H “Hong Kong people administering Hong Kong,” ac according to Hong Kong media. Li is the most se senior Chinese official to speak publically on the H Hong Kong issue so far.

Li said Beijing supports the Hong Kong go government’s efforts “to end the violence and ch chaos in accordance with the law, and to return to order, which is to safeguard Hong Kong’s lo long-term prosperity and stability.”

Merkel said political dialogue – not violence – is the path toward a resolution.

Merkel talking about the Hong Kong situati tion was not intended to exert pressure on the C Chinese government, but more like to respond to pressure from domestic and international fo forces, said Sun Keqing, a research fellow at the China Institutes of Contemporary International Relations.

Germany’s policies toward China used to be more ideology-based, but in recent years, they have become more pragmatic, as the two share m more and more mutual interests, said Shi Mingd gde, former Chinese ambassador to Germany.

German and the European Union leaders u understand that Hong Kong is China’s domesti tic affairs and bottom line, because they know C China will never entertain any interference in its ow own affairs, said Sun.