At the invitation of Chinese Premier Wen Jiabao, Chancellor Angela Merkel of the Federal Republic of Germany paid an official visit to China from Feb. 2 to 4.This is Merkel's fifth trip to China since she took office in 2005. It was the first visit outside of Europe this year for a leader of one of the major European powers. It was also the first visit to China of a high-level foreign official since the Lunar New Year. There is strong symbolic significance in the timing of the visit, highlighting the importance both China and Germany have attached to expanding bilateral relations, as well as the special role each plays in the other's development strategy.

Chancellor Merkel's visit to China had three main purposes.

To promote China's participation in the "rescue" of the euro and Europe out its debt crisis

Looking back to last year, Germany's economy demonstrated that it had withstood the European debt crisis. According to the country's statistics office, Germany's economy grew by a sprightly 3%. With Europe's other major powers in decline, Germany has become the continent's undisputed leader. However, due to its "inability" to bear the sole brunt of any rescue, Germany hopes to ease the pressure it faces by ensuring China's participation in the "rescue" work.

To strengthen economic and trade cooperation with China, expand German export channels, and further promote Sino-German ties

Affected by the deepening debt crisis, Germany's export industry suffered heavy losses. It is clear that the current trend is one of economic slowdown. Therefore, Germany is certain to focus its gaze on emerging markets and to further strengthen economic and trade exchanges with China.

To seek cooperation in regional and global hot issues

Germany has long been viewed by the international community as an "economic giant and political dwarf." In recent years, Germany has made strides to step out of the shadow of history and fully engage with international affairs by taking the initiative in matters of diplomacy. Prior to the visit, it was expected that Chancellor Merkel would use this opportunity to exchange views and seek cooperation with China, and encourage China to exert more influence.

The visit has yielded three positive results.

The elimination of doubt

First of all, Chancellor Merkel has worked hard to eliminate Chinese doubts regarding the debt crisis and has promoted China's involvement in the rescue plan from indirect sources. In fact, the direct purpose of Merkel's visit was not, as earlier media reports speculated, to persuade China to invest its huge foreign exchange reserve in helping the euro. She admitted that the eurozone sovereign debt crisis is rooted in Europe's structural defects. Her belief is that the key to solving the crisis lies in the ability of debtor countries to improve their competitiveness and economic growth. Currently, what the euro needs most is an external environment which allows the eurozone to regain its upward momentum. Therefore, it is vitally important to restore global confidence, and especially that of China and other emerging economies, in the European market.

What Chancellor Merkel seeks in China is not money but "confidence". The facts indicate that, on this issue, Chancellor Merkel has achieved a positive result. Both Chinese President Hu Jintao and Premier Wen Jiabao have expressed confidence in the euro, and promised greater participation in resolving the European debt problems through the International Monetary Fund (IMF), European Financial Stability Fund (EFSF) and the European Stability Mechanism (ESM) as well as other channels.

The enhancement of Sino-German economic and trade relations

Economic and trade cooperation is of great importance to Sino-German relations. For Germany, trade with China is a vital channel to protect exports and promote economic growth. Over the years, cooperation between the two countries has been largely concentrated in traditional areas such as the machinery, automobile and chemical industries, and there remains much scope for development. On this visit, Chancellor Merkel led a large trade delegation and attended the Sino-German Economic Forum in Guangzhou. These facts suggest that the promotion of economic and trade cooperation is still Germany's main aim where China is concerned. To this end, leaders from both countries have expressed their willingness to strengthen cooperation in new areas such as high-tech, new energy, energy saving and environmental protection, as well as cooperation between SMEs.

The resolution of differences through consensus

Both sides have played down their differences to explore solutions to major issues on an equal footing. Sino-German relations have not always been smooth. Human rights, the RMB exchange rate and intellectual property protection are all issues which have come between the two countries. Fortunately, in recent years, leaders from both countries have been able to play down these differences and make pragmatic decisions based on overall interests. Chancellor Merkel did raise these issues during her recent visit; however it came across as more of a "response" to the issues rather than a set of accusations leveled against China. She put more emphasis on seeking consensus through dialogue and the exchange of ideas. Chancellor Merkel's attitude is further evidence that Sino-German relations have improved greatly over time.

In recent years, Sino-German relations have entered a healthy track, and made positive progress. The three positive results I have mentioned prove that Sino-German relations have never been better. This year marks the 40th anniversary of the establishment of diplomatic relations between the two countries and both will be sure to take this chance to take bilateral relations to an even higher level.

(This article was first published in Chinese and translated by Li Huiru)

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