The upcoming ASEM (Asian-Europe Meeting) Economic Ministers' Meeting will help promote trade relations between Germany and China, according to a German diplomat in Beijing.
China has risen to be Germany's second largest trading partner outside the European Union after the United States, said Holger Green, head of the German Embassy Economic Mission in Beijing, in a recent interview with Xinhua.
Germany-China trade has developed tremendously in the last 25 years since China began its reform and opening up policy.
"We mostly saw double-digit growth of bilateral trade in recent years," said Green, adding that the German-Chinese trade had a lot of potential and the high growth rate was expected to continue.
Statistics from the Chinese Customs showed that total trade volume between China and Germany reached a record high of US$27.8 billion in 2002, up 18.2 percent over the year before.
The structure of Sino-German trade has also undergone great change. Green said China's exports to Germany were mainly raw materials, semi-finished goods and food products two decades ago, but now 90 percent of Germany's imports from China were finished goods, mostly electronic and electronic products, apparel, machinery, and toys.
Meanwhile, most of Germany's exports to China are high-tech products, including electronic products, machinery, cars and car parts. Germany's advanced technology can help China improve its technical level and thereby produce better products.
"Germany is pleased to see an increasing influx of investment into China as China is being rapidly integrated into the global economy," said Green. German investment in China has focused on the auto industry, machinery, telecommunications and the chemical industry.
Some German companies such as Volkwagen and Siemens already enjoy a long-standing reputation for investment in China. German chemical giants BASF and Bayer are also implementing huge investments of several billion euros in Nanjing and Shanghai in east China. Many small and medium-sized German companies are also coming to China.
China has become the biggest market for many German companies and more German companies sell at least 20 percent of their products to China, said Green.
Though some business negotiations had been put off by the severe acute respiratory syndrome outbreak in China this year, Green believed the impact of the epidemic was only temporary.
"I am sure these delayed backlogs can be caught up with in a relatively short period of time," said Green.
"Production and exports were only very marginally affected. I believe, therefore, that we will not see bilateral trade shrink this year but increase further," he said.
The fifth ASEM Economic Ministers' Meeting, to be held in Dalian during July 22-24, is set to promote economic cooperation between Asia and Europe.
"It will be a good opportunity for Asian and European countries to discuss the latest global economic developments, including the influence of SARS on the economy, and the economic impacts of the Iraq War," Green said.
(Xinhua News Agency July 20, 2003)
