German chancellor Angela Merkel has arrived in China for an official visit. It's her fourth visit to China since taking office. Her meetings during this trip, will focus on bilateral trade.
There's no doubt, this relationship is an important one.
China is Germany's largest trade partner in Asia. And Germany is China's biggest trade partner in Europe.
In 2008, the trade volume reached 115 billion U.S. dollars, more than the total trade volume between China and the UK, France and Italy.
Even during the economic crisis, trade between China and Germany was a quarter of the total China-Europe trade volume.
In 2010, it's expected to increase to pre-crisis levels.
Eberhard Sandschneider, Director of Research of The German Council on Foreign Relations said "German companies have invested a lot in China's market, this will bring an increase in trade volume for both countries."
Even more so, because Germany has the largest economy in Europe.
Eberhard Sandschneider said "The Germany-China relationship is a core relationship in the EU. Germany is China's most important trade partner in EU and China means a large market for Germany. At the same time, the relationship between the two countries acts as a model for all 27 countries in the European Union. Though every country has its own policies towards China."
China is now keen to develop its green energy technology. And Germany can help in that sector.
Trade cooperation projects on that front would benefit both countries.