Angela Merkel said in a statement after arriving in Beijing that the trade war between the United States and China is taking a heavy toll on the global economy and that she hopes that it is resolved quickly.
The German economy was plagued with the fears of recession as the exports in the second quarter of the year reduced. Besides that, Europe’s largest economy reported dampening industrial performance amidst the trade tensions between the two largest economies in the world.
Merkel said that the European Union wishes to initiate a new phase in its relationship with China. On the other hand, President Donald Trump has urged American firms to produce more of their goods in the country itself and find alternatives to Chinese goods.
The German Chancellor has discussed an investment deal between China and Europe. This comes as the United States imposes a range of tariffs on Chinese goods worth billions of dollars. The US administration said that the duties were a response to the unfair trade practices of China. Allies of the US, including Germany, mostly agree to the criticism that China faces, but do not support the duties that have been imposed.
The German economy will welcome investment from China, Merkel said. Chinese Premier Li Keqiang said that Beijing hopes Germany will relax export rules on certain Chinese goods.
During the meeting between Li and Merkel, many companies made agreements. These include Airbus, which would be assembling A320 planes in China, and Allianz, which would be working in close connection with the Bank of China. Besides that, the German engineering group Voith said that it wished to collaborate on electric buses.
Various other agreements were signed including one between Siemens and China’s State Power Investment Corporation Limited (SPIC).