China and Germany signed a series of trade and investment deals on Monday during a visit to China by Chancellor Angela Merkel, including agreements on two new Volkswagen factories and the sale of 123 Airbus helicopters.
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Merkel was accompanied by executives from Siemens, Airbus, Lufthansa and Deutsche Bank among other companies, according to German media.
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Chinese Premier Li Keqiang and Merkel oversaw the signing of a series of agreements on Monday.
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German auto maker Volkswagen and its Chinese partner First Automobile Works (FAW) on Monday signed a joint declaration affirming the construction of two new vehicle plants in China, which will be located in the coastal cities of Tianjin and Qingdao.
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The Tianjin plant, which will produce dual-clutch gearboxes for Volkswagen in China, is expected to be inaugurated toward the end of 2014.
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China has become Volkswagen's largest and most important market, said the company in a press release sent to the Global Times on Monday, confirming it will "substantially expand its capacity in China with its Chinese partners."
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Its two joint ventures, FAW Volkswagen and Shanghai Volkswagen, delivered about 1.51 million vehicles in the first five months this year, a 17.7 percent increase from the same period last year, Volkswagen said. Â
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"Volkswagen was the first [foreign auto company] to enter the Chinese market. For that reason it has benefited for the longest period of time, as China is its top regional market for car sales," said Li Lezeng, a professor at Shanghai's Tongji University.
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European aerospace giant Airbus announced that its helicopter division has signed contracts to sell a record 123 aircraft over up to six years to three Chinese companies.
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The helicopters - mainly light single-engine aircraft from the Ecureuil family and the light twin-engine EC135 - will be used for general aviation activities, it said in a statement.
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"It is evident that China's relaxation of its low-altitude airspace regulations is enabling the country's burgeoning helicopter market to realize its potential," Airbus Helicopters CEO Guillaume Faury said in the statement.
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Also on Monday, German airline group Lufthansa said it had signed a memorandum of understanding to form a joint venture with Air China.
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On the financial front, China granted an 80 billion CNY (13 billion USD) investment quota to Germany under the RMB Qualified Foreign Institutional Investors (RQFII) program.
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Since its rollout at the end of 2011, the program has allowed investors in Hong Kong, London, Singapore and France a new way to participate in the Chinese capital market, according to the State Administration of Foreign Exchange (SAFE).Â
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As of June 30, SAFE has approved 71 overseas asset managers with an investment quota of 250.3 billion CNY.
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Germany last year sold goods worth 67 billion EUR (91 billion USD) to China, its number-two export market outside Europe after the US. German imports from the Asian powerhouse, meanwhile, topped 73 billion EUR.
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Merkel later met President Xi Jinping, who said her country was an "important strategic partner."
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"Germany is a country with sizable influence in the world," he said. "China places high importance on the development of our relationship."
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He also wished Germany good luck in the World Cup in Brazil.Â