Li calls for closer Sino-German business cooperation

Chinese premier Li Keqiang yesterday encouraged German enterprises to go for expansion of cooperation with Chinese counterparts for mutual benefit.

Li said at a welcome banquet hosted by German chancellor Angela Merkel that China would stick firmly to the policy of reform and opening-up. The two leaders held talks focused on furthering bilateral economic and trade cooperation.

Li said, China welcomed more investment from German enterprises and also encouraged Chinese companies to scale up their business in the European economic powerhouse.

Noting the transitional phase in Chinese economy, Li said that only through persistent upgrading, reform and innovation and further opening up market potential, China could achieve sustained and healthy development.

He said the Chinese government treated all companies registered in China equally whether they were Chinese or foreign enterprises, and offered them a level playing field.

The premier also urged foreign companies to localise their production and operation in China, noting that localisation would help them gain larger market shares.

Further, he pointed out, the Chinese government attached great importance to the protection of intellectual property rights, a task demanded by China's own development.

According to Li, it was China's strategic decision to pursue innovation-driven economic development adding that combining China's market with Germany's technologies would create huge impetus for the development of both countries.

Merkel and Keqiang also called for an end to the EU-China trade dispute at a joint press conference in Berlin yesterday.

The EU planned to impose anti-dumping duties of an average 47 per cent on 6 June on Chinese solar imports.

During Li's visit to Germany, the two leaders also talked about the solar dispute among other trade issues.

Yesterday, the two leaders expressed support for free trade, and Merkel said Germany would do what it could to prevent implementation of permanent import duties. According to Li prospective anti-dumping duties would "harm both sides" and he would like to see "both a two-way dialogue and consultation'' on finding a solution.

Li added that China hoped that the EU would not use protectionist trade measures for such small a cause.

The European Commission was planning to impose anti-dumping (AD) duties of 47 per cent on Chinese solar imports from 6 June and could override the objections of EU member states against the imposition of these provisional duties.

According to Germany's pv magazine, which cited a source close to the EU-China issue, a majority of the EU anti-dumping committee - between 14 and 17 of the 27 member state representatives was against the duties.