Germany is China's largest economic and trade partner in Europe, the bilateral trade volume jumped to US$27.8 billion in 2002 from US$273 million in 1972.

In between January-April 2003, the bilateral trade volume reached US$11.95 billion, an increase of 50.5%, in which its import from Germany accounted for US$6.98 billion, an increase of 46.7%, whereas its export came to as high as US$497 million, an increase of 56.1%; the main products imported from Germany are: electromechanical equipment, vehicles, ships, transportation equipment, chemicals, optical instruments, medical instruments and so on. And the main products exported to Germany were: electrical equipment, mechanical equipment, textile raw materials and goods, chemical products, toys, etc.

Germany is among the countries which have provided China with the most aid for development. In 1985, the two governments signed Agreement on Financial cooperation. Up to April 2003, Germany committed itself to provide China with an amount of fund totaling 3.320 billion Euros devoted to financial cooperation, which is mainly centered on infrastructure, environmental protection, a forestation and a number of industrial projects.

In 1982, the Agreement on technological cooperation was signed between the two countries. Up to September 2002, the German side rendered an aid gratus to China of 480 million Euros for technological cooperation, and additional fund of 0.6 million Euros devoted to the grain aid project in Shandong Province. The aid projects, varying in form, range from technological cooperation, grain assistance and emergent assistance, an extra fund used as scholarship for students in need beyond the project, to subsidies for forums. In April 2003, the German Government decided to render an emergent aid of medical instruments worth 10 million Euros to China in an effort to fight SARS within the framework of the financial cooperation between the two countries.

Up to April 2003, Germany's direct invested projects in China were as many as 3295, involving a contracted amount of money worth US$15.1 billion and the actual input totaling US$8.62 billion. But in 2002, however, Germany's direct invested projects were 352, with contracted amount of money worth US$920 million, a decrease of 21% compared with the corresponding period of 2003, while the actually used money was US$930 million, a decrease of 23%, compared with the corresponding period of 2003, but still taking the first place in the European countries.

By the end of October 2002, German banks set up 15 representative offices and 7 branches in China. The Allianz Insurance Company, the biggest company in Europe, established its German Allianz-Volkswagen Insurance Company in Shanghai in October 1998. On the Chinese side, Bank of China, China Industrial and Commercial Bank and China Construction Bank set up their branches in Germany respectively.
Tourism. In July 2002, "Understanding Memorandum on Implementation of Touring to Germany by Groups of Chinese Citizens" was signed between China and Germany; and in February 2003, the first tour to Germany by a Chinese tourist group was made.



                                                                                     Cecilia Helland