Berliner Boersenzeitung - China's Xi urges 'strategic' ties in talks with Germany's Scholz

"China and Germany are both major countries with significant influence," Xi told Scholz on the sidelines of the G20 summit, according to Beijing's state news agency Xinhua.

"The two countries need to view and develop bilateral relations from a long-term and strategic perspective," Xi said.

Scholz last met Xi in April in Beijing, where he pressed China's president to use his influence on Russia to end the war in Ukraine.

A German government source in Berlin last week told AFP the two leaders would discuss the wars in Ukraine and the Middle East, China-Germany relations and conditions for global fair trade.

Chinese state media said Xi had expressed a desire to "consolidate the China-Germany comprehensive strategic partnership."

And he said Beijing was "willing to continue writing the story of mutual cooperation, and make our world a peaceful, harmonious and prosperous family," Xinhua reported.

China was the largest trading partner last year for Germany, Europe's biggest economy, which is expected to shrink for a second year in a row.

German industry has been hit by elevated energy prices in the wake of Russia's full-scale invasion of Ukraine, and by rising competition from Chinese manufacturers.

The challenges have been particularly acute for Germany's car manufacturers, who have made huge profits in China but now face local competition, particularly in the growing market for electric vehicles.

On Tuesday, Xi told Scholz that China would "continue to provide broad market opportunities for German companies," state media said.

"China regards Germany as an important partner in advancing Chinese modernization," he said.

The importance of China for the German economy has led Scholz to try and chart a middle course during his time in office.

The German leader has not matched the harsh trade rhetoric coming out of Washington and some European capitals, instead seeking to be a critical partner to Beijing.

The meeting could be Scholz's last with Xi, as Germany heads towards new elections in February.

Scholz's Social Democrats currently trail in the polls, well behind the conservative CDU-CSU bloc. If confirmed on election day, such a result would likely see Scholz depart as chancellor.

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(L.Kaufmann--BBZ)