TRADE CONCERNS
China-EU trade was top of the agenda. On Monday, Chinese President Xi Jinping said he hoped Germany and the EU would view competition and cooperation objectively and solve China-EU trade disputes. He called on Germany and the EU to carry out their obligations in the Article 15 of the protocol on China's accession to the WTO as scheduled.
In his one-hour meeting with Merkel, Li said it is the responsibility of all WTO members to defend the international trade system. China-EU trade with its massive employment opportunities is essential to both sides, he said.
He encouraged the EU to bear in mind the overall situation of China-EU cooperation and long-term development, address Article 15 and drop the Surrogate Country approach as scheduled.
In accordance with Article 15 of the accession protocol signed when China joined the WTO in 2001, the Surrogate Country approach expires on December 11, 2016. Yet there are voices in Europe that China is yet to meet the standard set by the EU for market economy status, and that the EU should continue with its use of a non-standard approach in anti-dumping investigations against China.
"The crux of the issue is to honor an agreement," said Li when meeting the press with Merkel.
China has kept the promises made when entering the WTO, and the EU and other parties need to keep theirs, said Li.
"I believe that both China and the EU have the wisdom to handle the issue," Li told reporters.
Merkel, for her part, said Germany clearly understood the obligations of Article 15. She said Germany expects the European Commission to consult with China on the issue as soon as possible, to seek a solution that both accords with WTO rules and will solve trade disputes.
On the issue of Chinese enterprises' mergers and acquisitions in Germany, Li said China and Germany are supportive and open on all legal, mutually beneficial cooperation, in line with market rules and international practice.
China's development is a process of continual opening up to the outside world, Li said.
"We will take more measures to expand opening up and create an equal, transparent and attractive investment environment for investors from home and abroad, including German businesses," the premier said.
China supports Chinese businesses in finding German partners to explore international markets, said Li.
Merkel said her government is open to Chinese enterprises' investment in Germany, calling for more mutual investment.
MARITIME ISSUE
The joint statement said the two sides insist on maintaining maritime order on the basis of international law including the UN Convention on the Law of the Sea (UNCLOS) and on freedom of navigation and overflight as stipulated in the UNCLOS. It is in both sides' interests to keep order and regional stability.
Both sides support peaceful settlement of territorial disputes and maritime interest issues in accordance with international law, regional consensus and bilateral agreements, and welcome trust-building measures conducive to easing a tense situation.
