BACKGROUND: China, Germany deals total 15 billion dollars

Jun 28, 2011, 13:03 GMT

Berlin - Germany and China moved Tuesday to strengthen ties between the two global economic powerhouses with the signing of a slew of major contracts estimated to be worth 15 billion dollars.

At a press conference in Berlin, Chinese Prime Minister Wen Jiabao and German Chancellor Angela Merkel oversaw the signing of a series of government cooperation accords and major business deals.

This includes one of biggest contracts ever for the European aerospace group Airbus and two deals aimed at the development of electric cars in China, which is the world's biggest auto market.

Under the Airbus contract, ICBC Financial Leasing Co, the leasing offshoot of China's biggest bank, Industrial & Commercial Bank of China Ltd agreed to purchase 62 Airbus A320 aircraft, which together have a list price of about 5.6 billion euros.

Wen has been on a two-day visit to Germany as part of three-nation trip to Europe.

The batch of contracts include steps aimed at improving investment between the two nations, which are the world's two leading exporters.

As well, the two governments agreed to measures to harmonize industry standards between the countries and to continue to foster the development of the rule of law in China.

Under the agreements, Beijing and Berlin are also boosting co-operation in the fields of professional training and the agricultural business.

Germany is also to assist in promoting energy efficiency in buildings in China.

The German electronics group Siemens also signed an agreement with the Chinese authorities to

But it was China's automotive sector that was the major focus of the contracts signed off during Wen's visit.

Europe's biggest carmaker Volkswagen signed two separate agreements aimed at the development of electric cars in China's booming auto market.

In addition, Daimler signed an accord for an engine plant and a research centre. Daimler is the manufacturer of luxury Mercedes Benz vehicles.

The two nations also agreed to moves aimed at developing methods for recycling motor vehicle batteries.

Read more about China