Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Merkel urges China to open up markets

BEIJING, July 16 – German Chancellor Angela Merkel on Friday prodded 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, 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 dollars last year, up from 41 billion dollars 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 dollars last year, while trade in the other direction amounted to 36 billion dollars.

"Neither Germany nor China pursues a trade imbalance," Wen said 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 dollars in merchandise exported, according to World Trade Organization figures.

Germany exported 1.12 trillion dollars of goods in 2009.

Advertisement. Scroll to continue reading.

Merkel also said China still had not satisfied all the requirements for attaining market economy status in the eyes of Europe, a designation expected to lessen the occurrence of trade actions being taken against China.

She said Beijing still had to do more to ensure the protection of intellectual property rights and market access.

"From the standpoint of market access, we very much hope that Germany, in entering China\’s market, can receive equal treatment," she said.

However, Merkel described her talks with Wen as "friendly", while both sides they would work for an even closer trade relationship.

Among the agreements signed was one between Shanghai Electric Group of China and Siemens AG for the creation of a service joint venture for the steam and gas turbine power plant market.

China\’s official Xinhua news agency said the deal involved 3.5 billion dollars, but a statement from Siemens gave no figure.

The joint venture will "complement the business portfolio of Siemens in China", company president and CEO Peter Loescher said in the statement.

Foton Motor of China and Daimler-Benz AG also signed an agreement for a 50-50 joint venture to produce heavy trucks in China for the domestic and foreign markets.

Trucks under Foton\’s Auman brand will be produced using Daimler technology in diesel engines and exhaust systems, allowing the vehicles to meet strict European standards, a statement said, without giving financial details.

Advertisement. Scroll to continue reading.

Xinhua put the value of that deal at 938 million dollars.

The two countries signed a pact to create a 124-million-euro (160.2-million-dollar) \’green\’ fund to encourage emissions reductions and corporate energy-saving, Xinhua reported.

Wen repeated Beijing\’s intent to remain a long-term investor in the euro despite Europe\’s ongoing debt crisis.

"As a responsible, long-term investor, China has always upheld the principle of diversified investments," he said.

"The European market has been, is now, and will in the future be among the main markets for investment of China\’s foreign exchange reserves."

The debt crisis has forced European governments to bail out Greece and set up a 750-billion-euro loan package with the International Monetary Fund to help any other state that may need assistance.

China\’s foreign exchange reserves, already the world\’s largest, surged to a record 2.454 trillion dollars at the end of June, according to the central bank.

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.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...