The year 2012 is the year of German-Chinese relations. Forty years ago, both countries took up diplomatic ties. What was originally a timid, careful relationship characterized by cultural and societal differences, has now evolved into a stable economic and political relationship. Germany is China's closest European business partner. And the Chinese market is pivotal for German companies.

In the last few years, the first high-level German-Sino government meetings took place. Germany has only participated in such high-level meetings outside of Europe with Israel and India. This shows just how highly Beijing and Berlin value each other, says Eberhard Sandschneider, head of the German Council on Foreign Relations. "It is an institutional upgrade (in relations) that also shows the importance of economic and political ties for both sides."

German Chancellor Angela Merkel will start her trip to China on Thursday, February 2. She is due to meet Premier Wen Jiabao and President Hu Jintao in Beijing and give a speech atthe Chinese Academy of Social Sciences in Beijing before continuing on to the southern Chinese city of Guangzhou.

Euro crisis

At the core of the talks will be the world economy and the European debt crisis, according to the German Foreign Ministry. The expansion of bilateral ties is also on the agenda. According to German press agency dpa, the two sides will also discuss developments in North Korea and the international row over Iran's nuclear program.

As the EU fights to survive the euro crisis, it is turning to China for help. Gu Xuewu, professor of political science at Bonn University, thinks it is likely Merkel will ask for Chinese support for the euro. "Europe is not only experiencing a financial crisis, but also a crisis of confidence," Gu told Deutsche Welle, adding that many countries had trouble selling government bonds. Gu believes it would be beneficial to EU member states if the Chinese government bought more bonds.

Chinahas more than enough money to buy European bonds; with around $3.2 trillion, China's foreign reserves are the largest in the world. Yet it is not clear whether China will use that money to help the EU out of its crisis. Chinese Deputy Foreign Minister Fu Ying stifled such hopes in December when she announced that China would not use a large portion of its money to help European countries.

Iran

The Iranian nuclear program will also be a point of discussion during Merkel's visit to China; on January 23, the European Union decided to pass heavier sanctions against Iran. The new oil embargo will be effective from July 1. The EU has also decided to immediately freeze Iranian Central Bank accounts in Europe. The union is hoping other large importers of Iranian oil will get on board with the sanctions against Tehran. But China rejects sanctions against Iran, saying they are of no use.

Chinabuys more than a fifth of Iran's oil exports. According to Iranian sources, trade between the two countries grew by 55 percent in 2011. Gu Xuewu thus doubts that China will support Germany and the EU when it comes to sanctions. Beijing, he says, regards the restrictions more as a source of conflict than anything else "because Germany and the EU are set on upholding the Iranian oil embargo."

Human rights

When it comes to China's human rights record, recent developments are a cause for concern. Chinese authorities have stepped up their crackdown against dissidents. Not long ago there were massive demonstrations in Tibet in which two Tibetans were killed, according to official information provided by the Chinese government. Tibetan diasporas put the toll at at least five.

Regarding the current crackdown, Sandschneider does not believe any words of condemnation from the German chancellor will be of any benefit. "If she does talk about human rights, then she will only do it to appease the Germans because that is what they expect of her … but it won't change anything about rights in China.”

Anything having to do with the topic has fallen on deaf ears in the Chinese leadership in the past. While on a trip to the US in 2011, President Hu ignored a critical question posed by a journalist, pretending a technical problem prevented him from hearing it. And - as quite a coincidence - Wen Jiabao's earphones seemed to be temporarily broken during the speech about human rights.

Author: Christoph Ricking / sb
Editor: Darren Mara