China reaches out to Germany under 'free trade' banner

Leaders vow cooperation on self-driving cars as Trump's auto tariffs loom

0525N Merkel-Li for N08 (AP)

Angela Merkel met with Chinese Premier Li Keqiang on her 11th trip to China as German chancellor.

TETSUSHI TAKAHASHI and JUN ISHIKAWA, Nikkei staff writers

BEIJING/BERLIN -- China and Germany will increase cooperation on autonomous driving, Premier Li Keqiang and Chancellor Angela Merkel agreed at a Thursday meeting in Beijing that took place against a backdrop of trade tensions with the U.S.

China "welcomes investment by German automakers working to produce autonomous vehicles," Li said at a joint news conference.

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