Since the mid-1990s, Germany has been seen strengthening its relationship with Asian countries. The Sino-German relations in economy, politics, science and technology and culture have, in particular, developed in full swing. In January, 1994, the Foreign Ministry of Germany held a special conference, which was devoted to promoting the partnership relations with Asian countries so as to guarantee that German enterprises might benefit from the prosperity of Asian-Pacific economies. Participants of the meeting also pointed out that Germany paid respect to the Asian culture and its ways of economic development.

Thanks to joint efforts of both the Chinese and German sides, the bilateral relations and, in particular, economic and trade ties, have achieved tremendous progress. Now Germany is China's biggest trading partner in Europe. In 1972 when the two countries established diplomatic relations, the trade volume between the two countries was only US$270 million, but now the trade volume between the two countries accounts for one third of the total trade volume between China and the 15 countries of the EU, exceeding the total sum between China and Britain and France. In 2000, the trade volume between China and Germany made a historical high coming to US$19.7 billion.

Germany is also the No.1 country in Europe from which China imported the largest sum of high-tech projects. By now German enterprises have invested in 2,583 projects in China, with the contractual volume hitting US$12.9 billion. The large-scale projects with German investment are those relating to transportation, industrial equipments, telecommunications, chemical and energy industries. Among the big projects are the Shanghai maglev train project, the subways in Shanghai and Guangzhou, Shanghai Volkswagen Automotive Co., Ltd, the Changchun-based FAW-Volkswagen Automotive Co., Ltd, Yangzhou Asia Star Benz Co. In the mean time, China has purchased over 30 German-made ships by using German loan on liberal terms. Most of the large German companies have so far found a niche in the Chinese market and the small and medium companies in Germany are trying their best to go to China and find business opportunities.

The German business circle has shared it in common that China's eventual entry of the WTO will produce more business opportunities for both Chinese and foreign investors, and this, as a result, will exert profound influence on the global economy. Five big German companies, including Siemens, BASF AG and Volkswagen, have worked out new strategy in their development in China. According to the plan, these business giants will invest over 20 billion Marks (US$ 9.24 billion) in China, making China their manufacturing bases. Last March, the German chamber of commerce organized 12 high-ranking officials from several Sino-Germany joint ventures in China to tour four major industrial cities in Germany, introducing Chinese market and encouraging more German investment in China. During the "Asia-Pacific Week" in Berlin in middle September, some German enterprises sponsored a Sino-Europe Economic Forum especially discussing China's western development drive.

Great improvements have been achieved in Sino-German exchange in the fields of science, technology, education, and culture. Ever since the signing of the Agreement on Science and Technology Cooperation by the two governments in 1978, the two countries have benefited a lot from their scientific and technological cooperation through governmental and non-governmental channels. Education exchanges between Germany and China have also witnessed great improvement and development. Germany attracts the greatest number of Chinese students among the European countries. Eight German universities have established close relations with nearly 200 colleges and universities in China. The cultural exchange between the two countries came to its climax when the Asia-Pacific Week was held in Berlin, capital of Germany, this autumn.

Soon after the "September 11 terrorist attack" happening in the United States, Chancellor Schroeder and Chinese Premier Zhu Rongji exchanged views on the phone and the two leaders agreed to make more efforts in the international cooperation against terrorism. Germany shares wide consensus with China regarding the issue of anti-terrorism. Both countries stress that military actions should not play a key role in solving terrorism problem and that, instead, political, diplomatic and economic methods should be used to solve the problem. The two sides agree that UN should strengthen its role in working out long-term anti-terrorism plan and establishing a fair international rule so as to root out terrorism.

With the steady development of economic and trade relations between the two countries and German's firm stance on "one China" principle, the two countries will see a close and fruitful political cooperation in the foreseeable future.

(The author is a research fellow with China Institute of Contemporary International Relations)

(china.org.cn October 31, 2001)