BERLIN - The first China-Germany inter-government consultations set for Tuesday will play an important role in deepening cooperation and promoting bilateral ties, observers of the two countries said.

Chinese Premier Wen Jiabao, who is on a three-nation Europe trip, will co-chair the consultations with German Chancellor Angela Merkel.

Eberhard Sandschneider, director of the Research Institute of the German Council on Foreign Relations (DGAP) told Xinhua the establishment of the government consultation mechanism is certainly another important step forward in the process of deepening bilateral exchanges between Germany and China.

"There are already several mechanisms of this kind, but for such a high level, it seems to me that it will be very useful that can help clean up differences on opinion and interest," he said.

Sandschneider said that Germany and China, as the world's two largest exporting countries, have common interest in maintaining a stable global economy.

"I am therefore confident that the (economic) issue will play an important role in the government consultation, and both sides will strive very hard to do what is necessary from their perspectives to help stabilize the macroeconomic situation," he said.

Gu Xuewu, director of the Center for Global Studies at University of Bonn, said China and Germany, as two "big winners" of globalization,  share quite a lot in global strategic interests, such as curbing trade protectionism, ensuring the stability of euro and reducing the risk of disruption to the global supply chain.

Gu said that China-Germany government consultation mechanism will play an invaluable role in reducing interference on bilateral cooperation, like differences on Intellectual Property Rights protection, market access and human rights.

Germany needs China's investment to help Europe deal with the ongoing debt crisis, while China needs Germany's technology to boost its own high-tech industry, he added.

Economic, financial, technological and high-educational cooperation will be the mainstream and most potential cooperation areas, he added.

Mei Zhaorong, former Chinese ambassador to the Federal Republic of Germany and now chief of the World Development Institute of the Research Center under China's State Council, said the consultation shows the bilateral relations are stepping forward these years.

Mei said it is undeniable that the two sides are still in disagreement on some issues due to different cultural traditions, economic and social systems, and development levels.

The key is how to properly handle these differences. If the two sides uphold the principle of mutual respect and benefit, the consultation mechanism will achieve good results, he said.

"I believe the consultations will further enhance mutual understanding and reduce prejudice and misunderstanding," said Mei.