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Win for German companies?

October 10, 2014

Premier Li Keqiang says China is prepared to make it easier for German companies to do business there after talks with Angela Merkel. However, he warned that China might not meet its growth target this year.

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Angela Merkel und Li Keqiang in Berlin
Image: Reuters/Hannibal Hanschke

The German and Chinese Cabinets met in Berlin on Friday for the third administration-level talks between the countries this year. Economic ties topped the agenda, as well as human rights and the situation in Hong Kong.

The meetings were expected to produce agreements on projects in multiple sectors, including scientific research, agriculture, education and energy.

Chancellor Angela Merkel urged China to ensure fair access to markets for German firms.

"I pointed out that we can imagine Chinese companies in Germany just as well as German companies in China, and we also spoke about fair market access conditions both on the Chinese market and for Chinese companies on the German market," Merkel said in a news conference with Premier Li Keqiang.

"Of course, I also made clear that for Germany fair conditions for open tenders, market access, patents, journalism and human rights are very important," Merkel added.

Li told the gathering that Beijing was ready to ease access to Chinese markets, where German companies often face red tape.

Rules for joint ventures have been "interrupted by considerable barriers," said Sigmar Gabriel, German vice-chancellor and economy minister.

"We want to be fair partners for Chinese investors. German companies expect the same," Gabriel told a forum for economic and technological cooperation on Friday.

Trade between the countries totaled roughly 140 billion euros ($177 billion) in 2013. Germany, for its part, ranks as China's sixth most important trade partner in the world and its most important in the EU.

China warning on growth

Li said that China might not meet its target of 7.5 percent economic growth this year, but said that admission should not be read into too much.

"It's okay if the ultimate rate of growth is a bit more or a bit less than the 7.5 percent target. I hope that the international media won't overinterpret a 0.1 or 0.2 percentage point variance," Li told the news conference.

"The Chinese economy has a lot of room for maneuver and potential for growth ... I am confident that it can grow at a middle to fast pace."

Hong Kong, human rights discussed

Merkel said she hoped for a peaceful resolution to ongoing pro-democracy protests in Hong Kong. It comes a day after the government there called off planned talks with demonstrators.

Last week, parts of Hong Kong were paralyzed by protesters demanding that Beijing give them more say in how the city's leader is elected.

Merkel said she hoped the demonstrations could remain "peaceful ... and that in the free exchange of ideas a solution can be found that the people in Hong Kong find satisfying."

Li stressed that the Chinese government would "protect the legitimate interests of all foreign investors in Hong Kong, including German investors."

On Saturday, the premier and his delegation are to travel to Hamburg, Germany's biggest port and second-largest city, to attend a summit dubbed "China meets Europe." More than 500 experts from China, Germany and elsewhere will discuss Sino-European relations.

jr/mkg (Reuters, AP, dpa)