A grand welcome for the German Chancellor in Beijing.
Angela Merkel is attempting to strengthen her country’s business ties in China during a four-day visit.
At least ten business deals have been signed, from green energy to truck production. Merkel’s delegation includes the bosses of top German companies.
Germany is China’s top trading partner within the European Union.
Wen Jiabao, the Chinese Premier, said: “China has huge foreign exchange reserves, and as a responsible investor, we always adhere to the principle of decentralised investment with our reserves. The European market has been, and is now one of the main markets for China’s foreign exchange reserves, and it will still be in the future.”
Issues also likely to come up during the visit include China’s moves to make its currency more flexible, the eurozone crisis and climate change.
It is reported both countries have agreed to set up a multi-million euro fund to encourage businesses to save energy and cut greenhouse gas emissions.