German Chancellor in China for Eurozone Debt Talks
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German Chancellor Angela Merkel visits China for the second time this year, a reflection of China’s growing clout as Europe’s leaders grapple with the impact of the eurozone debt crisis. German officials say energy and climate issues, trade ties and the euro will top the agenda.
German Chancellor Angela Merkel visits China for the second time this year, a reflection of China’s growing clout as Europe’s leaders grapple with the impact of the eurozone debt crisis. German officials say energy and climate issues, trade ties and the euro will top the agenda.
Merkel’s two-day visit includes meetings with her Chinese counterpart President Hu Jintao, as well as Li Keqiang, the country’s top economic official. Merkel is also expected to meet Xi Jinping, a Communist Party official who is widely due to take power in a once-a-decade leadership change over the coming year.
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The chancellor is accompanied by a large business delegation that includes top executives from Germany’s biggest firms including Siemens, Volkswagen and EADS, the parent industry of Airbus.
Bilateral trade between the two countries reached $180 billion last year, nearly double the levels five years ago. Both countries are hoping to boost that figure to $280 billion by 2015.
Nearly half of all exports from the European Union to China now come from Germany, with machines and luxury cars especially in demand.
The European Union is also the biggest destination for Chinese exports.
Underscoring Germany’s growing economic dependence on China, German officials say Merkel is seeking to expand trade with China amid the European slump, and will likely not press China on thorny issues such as human rights and patent protection.
Eberhard Sandschneider, director of the German Council of Foreign Relations, told the Wall Street Journal:
[quote] The theme is business as usual. Don’t expect much progress in terms of intellectual-property rights from this visit. [/quote]
At the same time, Merkel is expected to explain the current state of the euro crisis to a “curious Chinese leadership, and perhaps to seek Chinese investment in Europe’s bailout funds,” said the New York Times.
Chinese prime minister Wen Jiabao has on previous occassions indicated a willingness to invest in Europe’s bailout funds, and Merkel may seek further commitments on this front.
China has invested in European before, notably in Greek debt before a deal that forced bondholders to accept a reduction in the value of their holdings.
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