Zhang Chengliang / China Daily

The visit by China's Premier Wen Jiabao to the Hanover Messe in Germany on April 23 and his other meetings with the country's political and business leaders will have enhanced economic and trade relations between the two countries.

In fact, German relations have always played a very important role in China's foreign policy, there being no direct conflict of interest on geopolitical and historical issues between the two countries. What's more, China is very optimistic about the future development of relations with the European Union.

However, when German Chancellor Angela Merkel took office in 2005, Sino-German relations went through a tense period. There was a shift in German foreign policy, and she took a pro-American stance, putting Russia off side, keeping China at a distance and rallying together countries regarded as sharing her country's values. At times this "value diplomacy" brought Sino-German relations to all-time lows. But after the 2008 financial crisis, Chinese and German leaders again found the space to cooperate, expanding mutual interests and quickly brought the relationship back into equilibrium. So what are the prospects for Sino-German relations now?

Economics will remain the foundation stone on which further development of the relationship will be built.

Germany is China's largest trading partner in the EU and one of China's source countries for introducing investment and technology. Despite Europe's debt crisis, economic and trade relations between China and Germany have not only not weakened, but have become stronger. It is expected that by 2017 Germany will still be China's most important trading partner in Europe. And recently, leaders from China and Germany agreed on a goal for the value of bilateral trade: $300 billion (227 billion euros) over the next five years.

And during the global financial crisis, China's reaction has enhanced its economic influence internationally. During the financial crisis, the volume of China's overseas investment ranked fifth in the world, and its purchasing power in the European market has continued to grow. Last year many Chinese enterprises invested in and set up companies in Germany, and China has now overtaken the US with the most companies invested in Germany.

Since the 2008 financial crisis, the traditional role of many countries on the geopolitical map has changed dramatically. China now holds the capital that Europe and the US can only dream of, giving it great room for maneuver. This capital will not be realized by buying eurozone government bonds only, but also by buying shares in European companies that ultimately flow into Europe. This will open up the road for Chinese enterprises to obtain more advanced technologies and extend their market share in Europe.

Germany has advanced technology in many areas, so more Chinese enterprises and Chinese investment funds will flow into German companies. For example, Lenovo recently bought a German computer manufacturing company, Medion, and Xuzhou Construction Machinery Group bought Fluitronics. All these moves are just a beginning. In the economic sphere, this form of bilateral relations will continue to deepen.

In response to the global financial crisis, China and Germany have extensive common interests, and both sides need to work together to further consolidate and deepen economic and trade relations. During the European debt crisis, Beijing has been a constant supporter of the euro. It has $3 trillion in foreign exchange reserves, and the proportion of its euro investments will continue to increase. For example, China has bought government bonds of Greece and Ireland. During talks between Wen and Merkel in Berlin, he suggested that Germany loosen its restrictions on exports to China. If Germany is willing to take the initiative both sides can benefit.

The two countries complement one another in many fields, so the ground is already prepared for more fruitful relations.

China and Germany fit well together economically. Economic and technological cooperation is a prominent feature of the Sino-German relationship and highlights the leverage in Sino-German relations. While Germany needs China's markets and resources, China needs German capital, technology and its market, which is of great importance to China's economy and industrial upgrades.

During Merkel's visit to China in February she also expressed the hope that China and the EU would deepen economic cooperation, promoting economic growth in Europe driven by Chinese market.

Now the German economy is depressed, many Chinese companies are providing it with investment capital and employment opportunities. For example, Sany acquired the renowned German enterprise Putzmeister to establish a manufacturing plant in Germany. On the one hand, it has provided industrial investment to Germany, and on the other it has learnt Germany's advanced technology in this way, which has laid the foundation to further explore the international market.

In this era of globalization, economic, technological, political and cultural exchanges have become more frequent, and countries have become increasingly closely related to one another. What that means in the case of China and Germany is that they have developed into their biggest trading partners in the respective continents. In addition, the exchanges of culture, education, science and technology, even in the military field between China and Germany are also very close. Mutual trust among China and Germany's non-governmental interaction is also high. And Sino-German relations do not carry the kinds of problems born of history.

But in the ideological field, such as with Tibet and human rights issues, there has been friction. But when Merkel came to China in February, addressing the issue of Tibet and human rights, she had softened her tone and came across as more sincere and humble, and did not seek to impose her country's values on China. In her speech she said: "China and Germany have different views in these areas; there is a need for dialogue and exchange and mutual understanding, which is much better than mutual accusations and criticism."

So China and Germany have essentially ridden out the ups and downs of recent years, and the future is bright.

The degree of interdependence between the two countries is high, which is also a good sign, but differences in history, culture, and values cannot be ignored, and it is possible that disagreements and friction will arise. The way of overcoming this is for both sides to be frank and to lay aside their prejudices.

The author is a chartered financial risk manager and a professor at Chinese-German College, Tongji University, in Shanghai. The views do not necessarily reflect those of China Daily.