BEIJING - Chinese Premier Wen Jiabao held talks and co-chaired the second round of Chinese-German intergovernmental consultations with German Chancellor Angela Merkel in Beijing on Thursday, expressing his confidence in China-Germany cooperation and the future of bilateral ties.

During the consultations, Wen said China and Germany have maintained close coordination to implement a consensus reached during the first round of Chinese-German intergovernmental consultations held in Berlin in June last year.

Both sides have scored progresses in fields including electric automobiles, small enterprises and vocational education, while expanding mutual investment, Wen said.

"These results are hard won as they have been accomplished under unfavorable international economic circumstances," according to the premier. "Therefore, the significance exceeds the range of the two countries."

As important global economies and strategic partners, China and Germany need to make efforts to lift the confidence of the international community in order to jointly face the challenges of the international financial crisis and the European debt crisis, Wen urged.

He said he and Merkel had communicated on deepening China-Germany ties and reached a new strategic consensus during the smaller group meeting.

"China-Germany ties enjoy broad prospects and will reach a new height," he said.

This year marks the 40th anniversary of the establishment of diplomatic relations between China and Germany, said Wen. "This round of consultations is the last round between the incumbent government and the German side, and this forms a connecting link for future cooperation," he said.

Wen expressed hope that both sides can make new proposals, take new measures and set up new goals for bilateral cooperation in the larger group meetings later.

"I have full confidence in China-Germany cooperation and the future of bilateral ties," the premier added.

Later this afternoon, Chinese President Hu Jintao, top legislator Wu Bangguo, Vice-President Xi Jinping and Vice-Premier Li Keqiang will meet Merkel.

The German chancellor arrived in Beijing on Thursday morning, kicking off a two-day official visit to China. This is her sixth visit to China since she took office in 2005 and the second within this year.