Germany, China ink deals on trade

BEIJING:German Chancellor Angela Merkel on Friday urged China to ease access to its markets, as the world's top two exporting nations signed a series of deals reportedly worth several billion dollars.

After meeting Premier Wen Jiabao and overseeing the signing of the agreements covering trade, energy and culture, Ms. Merkel said she had emphasised German wishes for greater openness in the world's third-largest economy.

“Chinese companies, like those of many other countries, enjoy very good access to the German market. We hope that German enterprises can enjoy the same access to the Chinese market,” she told reporters.

Trade between the export powerhouses has grown rapidly — to $91 billion last year, up from $41 billion in 2001, according to Chinese data.

However, in the past few years, the trade balance has tipped decisively in China's favour, with Chinese exports to Germany totalling $55 billion last year, while trade in the other direction amounted to $36 billion.

“Neither Germany nor China pursues a trade imbalance,” said Mr. Wen during a joint press conference after their talks. “We hope that trade can be balanced and orderly.”

China overtook Germany last year to become the world's top exporter, with some $1.2 trillion in merchandise exported, according to World Trade Organisation figures.

Germany exported $1.12 trillion of goods in 2009.

Ms. Merkel described her talks with Mr. Wen as “friendly”, while both sides they would work for an even closer trade relationship.

Mr. Wen repeated Beijing's intent to remain a “long-term investor” in the euro despite Europe's ongoing debt crisis, saying the continent will remain among “the main markets for investment of China's foreign exchange reserves”.

China's foreign exchange reserves, the world's largest, hit a record $2.454 trillion at the end of June.

Ms. Merkel met President Hu Jintao later in the day. During her trip to China, which comes on the heels of a visit to Russia, she is also due to visit Xian, home to China's ancient terracotta army. — AFP