New chapter in bilateral ties

China-Germany relations enjoy sound and steady growth, have gone beyond bilateral scope and got global significance

Premier Wen Jiabao and German Chancellor Angela Merkel will co-chair the second round of China-Germany governmental consultations in Beijing on Aug 30. It will be the German Chancellor's sixth visit to China in her seven years in office, and her second this year at the invitation of Premier Wen. Both the Chinese Premier and the German Chancellor will be heading a team of around 10 government ministers and vice-ministers in their discussion of ways to boost cooperation between China and Germany, as well as China and Europe.

The consultations mechanism, the first of its kind between China and a major Western country, is a creative move in China's relations with Germany and other Western countries. It ranks at the top in terms of the level, scale and scope among more than 40 dialogue mechanisms between China and Germany. Its launch represented another major upgrade of bilateral relations and a boost to exchange and cooperation in various areas since the two countries forged strategic partnership.

Despite the long distance and differences in history, culture, political system and phase of economic development, China-Germany relations keep making headway and accomplishments. It is the result of the evolving world economy, and conforms to the development needs of both sides.

The growth of China-Germany relations is closely linked with global economic developments. Since the outbreak of the international financial crisis, major economies in the world have seen anemic growth, leading to arrays of uncertainties and destabilizing factors for the prospect of growth around the globe. Trade protectionism is on the rise while some European countries are pounded by sovereign debt problems. In this context, China and Germany, both as major economies and world's manufacturing and exporting giants, have been working together to address the crisis. Their efforts have in turn boosted the bilateral cooperation in business and other fields. It has been instrumental for both economies to meet challenges and enhance economic growth, and, at the same time, beaconed positive messages of free trade, anti-protectionism and cooperation to shore up the world economy. China-Germany cooperation has generated positive influences on China-EU relations and the world at large, attracting great attention worldwide. There is still a long way to go before the crisis is over and unexpected situations may still crop up from time to time. Nevertheless, guided by the spirit of working side by side in meeting challenges, China and Germany have seen themselves more closely interconnected, and their mutual understanding and trust deepening constantly. This bilateral relationship, enjoying sustained, sound and steady growth, has gone beyond a bilateral scope and acquired global significance.

China-Germany relations would not have come this far if not for the strong complementarities between the two economies. China has abundant labor resources and rapidly growing emerging sectors, while Germany is leading the world in innovation, science and technology. There is a natural partnership in division of labor between China's labor intensive and emerging industries and Germany's technology-intensive sectors. China's strengths in textile and home appliances and Germany's competitiveness in automobiles and machinery cater to each other's needs. Germany is an export-oriented economy, while China has the largest market in the world. China is the most important overseas market for key German automobile, machinery, electronics and chemical sectors and Germany's largest trading partner outside the EU. Germany, in turn, is also China's top trading partner inside the EU and the No.1 source of technology transfer and investment. Strong complementarities have provided enormous scope of cooperation for the two countries and tangible benefits for their peoples.

China-Germany relations have been growing on a solid foundation that the two sides have built together. This year marks the 40th anniversary of the establishment of diplomatic relations. Over the past four decades, the two countries have been actively engaged in wide-ranging and all-dimensional cooperation at various levels, based on the principles of mutual respect, equality, mutual benefit and common development, and produced great results. Bilateral trade grew from $ 274 million 40 years ago to $169.2 billion in 2011, making up 30 percent of China-EU trade. It is encouraging to see that the success of events such as "Germany and China - Move Ahead Together" and Chinese Culture Year in Germany have substantially increased people-to-people interactions, deepened cultural exchanges and strengthened popular support for China-Germany friendship.

The growing of China-Germany cooperation necessitates the governmental consultations mechanism. The first round of the consultations was co-chaired by Premier Wen Jiabao and Chancellor Angela Merkel and participated in by nearly 30 ministers and vice-ministers from 15 Chinese departments and agencies and 10 German federal agencies in Berlin in June 2011. It produced fruitful results. The two sides signed a number of documents and business contracts and identified priority cooperation areas and projects such as strategic cooperation in electric vehicles, vocational education cooperation alliance, a special loan for SMEs cooperation, a standardization cooperation committee, Chinese Culture Year, a life science innovation platform, an innovative policy platform, building efficiency and medical and health care. Cooperation in these areas is being carried out with visible results, speaking volumes for the quality and level of China-Germany relations.

The second round of China-Germany governmental consultations to be held in China will continue to play an important role in planning for and guiding the relations between the two countries, charting the road ahead from where bilateral cooperation stands. The two governments, bearing in mind the long-term interests, will discuss ways to cooperate in strategic emerging industries, further increase trade and mutual investment, step up policy dialogue and coordination in the financial sector, deepen exchanges and cooperation in infrastructure, renewable energy, agriculture, social security and other priority areas and enhance youth, media and cultural exchanges. The two sides will also have candid and in-depth exchange of views on major international issues in an effort to jointly promote world peace and development.

Both China and Germany are important players in the world arena. Germany is a major country in Europe, and relations with Germany are part and parcel of China's overall relations with Europe. China-Germany governmental consultations mechanism has not only provided a broad and efficient platform for practical cooperation and boosted China-Germany strategic partnership, but also set the direction for the long-term growth of China-EU relations. In the global context, this mechanism offers a new way for major emerging countries to work with Western industrialized countries.

We are confident about the success of the second round of China-Germany governmental consultations and the future of China-Germany relations. We wish to work with Germany to seize opportunities, tap cooperation potentials and work for a better future for China-Germany and China-EU relations and contribute to world peace, development, prosperity and stability.

The author is China's vice-minister of Foreign Affairs.

(China Daily 08/29/2012 page8)