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Angela Merket and Li Keqiang at a 2017 summit. Photo: EPA

Angela Merkel presses Chinese Premier Li Keqiang over economic reform

  • German leader tells Li that better market access and equal treatment for foreign firms are key to reaching EU-China investment deal
  • Chancellor also raises situation in Hong Kong, but no details of that conversation have been made public

German Chancellor Angela Merkel has pressed Chinese Premier Li Keqiang to commit to market reforms.

The German leader also raised the situation in Hong Kong and human rights issues and “cited the need for further steps regarding market access, reciprocity and equal treatment for foreign companies”, as talks on an EU-China investment deal continue, her spokesman Steffen Seibert said.

The deal is supposed to be agreed by the end of the year, and Seibert said the reforms “would be an important part” of reaching an “ambitious” agreement.

Meanwhile, Li told Merkel that China and Germany should expand market access and jointly maintain stable and safe industrial and supply chains.

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The two leaders also discussed the battle against Covid-19 during Thursday’s video conference call.

It was not clear what Merkel said to Li about Hong Kong, a topic that was not mentioned in Chinese state media reports.

Germany will take over the EU presidency for the second half of the year and Merkel said last week that China would be one of the priorities.

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German Foreign Minister Heiko Mass has also said that Germany wanted to develop “a robust EU strategy on China”.

The proposed investment agreement will be one of the main issues facing the German presidency, but disagreements over market access and the role of China’s state-owned enterprises remain one of the biggest hurdles to an agreement.

Merkel earlier announced that a summit planned for Leipzig in September, where President Xi Jinping would meet the EU heads of government, had been postponed due to the pandemic.

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The German leader’s discussions with the Chinese premier followed a phone conversation last Wednesday with Xi, who said China was ready to step up strategic cooperation with Germany and the European Union to uphold multilateralism and tackle global challenges.

The renewed engagement between the two countries comes as Beijing’s relationship with the US continues to deteriorate, while Germany’s ties to Washington have also come under increasing strain.

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Li said that China was willing to expand cooperation with Germany in pandemic prevention and called for joint efforts to defend multilateralism, according to Chinese broadcaster CGTN.

Li also said he hoped negotiations on the investment treaty could be concluded as soon as possible.

Helping to secure the investment treaty would be seen as an important political legacy for Merkel, but dealing with the economic disruption caused by the pandemic is now the top priority.

This article appeared in the South China Morning Post print edition as: German leader presses Beijing on market reforms
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