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Ms. Angela Merkel, the German Chancellor, has travelled to Beijing on June 13, 2016 to negotiate transparent rules that will ensure a legal threshold for foreign investors in China, since the current rules in China are restrictive regarding foreign investments in this country.
Ms. Merkel is working to build bilateral relations with China, since a stronger relationship with the Chinese Government would help facilitate relations in various fields, such as foreign investments and credit. During Ms. Merkel visit, China and Germany have signed more than twenty agreements on Intergovernmental fiscal policy and electric transportation cooperation, underlining the will of both countries to expand their participation on each other’s economy.
Although the recognition of China as market economy status still is a sensitive topic for both countries, Ms. Merkel visit to China will help improve the rules for foreign investments in China and may also increase German investments in the country, as one of China’s biggest foreign investors, German investments are focused on high-tech industries and modern manufacturing.