BEIJING -- China and Germany have struck a deal to promote investment and technology collaborations worth roughly $18.1 billion.
The agreement was made during a meeting between Chinese Premier Li Keqiang and German Chancellor Angela Merkel in Germany on Friday.
Li is in Germany on an official visit, together with with more than 70 executives of Chinese companies, including state-owned enterprises such as Beijing Automotive Works, Shanghai Automotive Industry and Baosteel Group. Li spoke personally with Merkel about expanding investment in China and the purchase of Chinese goods by German businesses.
The economic collaboration will cover roughly 20 items, such as cars and airplanes.
Germany's Volkswagen plans to spend 100 million euros ($127.2 million) to expand a factory in Xinjiang Uygur Autonomous Region in the far west of China. German and Chinese officials have also agreed to jointly develop state-of-the-art eco cars and standardize related core technologies, such as charging systems.
The deal is also expected to grant advanced technologies of leading German businesses to Chinese companies for such fields as energy conservation and environmental protection. All of this is expected to benefit German companies like Siemens, as it will open up opportunities in Chinese market and the enormous demand expected there
For aviation, Airbus has reached an agreement to push up production in China and sell more aircraft to Chinese airlines.
Germany's economic outlook is becoming more uncertain, with the key DAX stock market index recently hit its lowest level for the year.
The value of trade between Germany and China has grown by 60% in the past five years, reaching $161.6 billion in 2013.
Li is scheduled next to visit Russia and Italy to discuss other possible economic cooperation deals.