On August 30, 2012, Premier Wen Jiabao met with German Chancellor Angela Merkel at the Great Hall of the People and co-chaired the second round of Sino-German Government Consultations. In a smaller meeting, the two prime ministers exchanged in-depth views on China-Germany relations, European debt crisis and other issues and reached important consensus. During the consultations, the two listened to the work reports resulting from the counterpart meetings of 23 related departments including foreign affairs, economy, science and technology, education and environmental protection. The two then offered guidance and made arrangement on bilateral cooperation in various areas for the next stage.

Wen said that in recent years China-Germany relations, by taking the opportunity of confronting the international financial crisis, have made important progress and entered into a new phase. The relationship between the two countries has exerted an extensive and positive influence. He noted that it is the strategic choice of the two countries to deepen bilateral cooperation. For that aim, it is in the fundamental interests of the two countries to set their eyes on the long-term prospect, strengthen communication and understanding, stick to the principle of mutual respect and mutual benefit and maintain a long-term, healthy and stable development of the bilateral relations.

Merkel said that Germany and China share a broad range of common interests, so it is of great significance for the two sides to maintain high-level exchanges of visits, keep close exchanges and coordination among various fields and ensure a remarkable growth in bilateral ties.

Merkel talked about the latest development of the EU debt issue and considerations for coping with the problem. She thanked China for its support and assistance to Europe. She admitted that despite some positive progress toward resolving the debt issue the situations in EU are still complicated. Germany, along with other European countries, is pushing ahead its internal reforms in order to reduce debts, enhance competitiveness and uphold euro stability and EU integration. Wen pointed out that the series of important measures initiated during the EU Summit are targeted at seeking both temporary and permanent solutions and define the direction and course for tackling the issue, but it will be a bumpy road ahead in execution. The prospect for solving the EU debt problem lies in the determination and actual effects of the reforms in relevant countries as well as in the willingness of Germany, France and other big players in EU and the European Union, the European Central Bank (ECB) and the International Monetary Fund (IMF) and in their timing to take actions. Wen remarked that the fundamental way out for EU is to find a balance between fiscal austerity and economic stimulation, of which the key is to remain confident. Governments should have confidence in their nations; financial institutions should have confidence in companies; companies should have confidence in the market; and consumers should have confidence in the future. At present, China-Germany cooperation and China-EU cooperation should focus on lifting confidence so that the people can see hope.

Wen said that China has all along maintained close relationship with Germany and institutions in EU and has taken specific actions to help solve the debt issue. Wen expected that EU can make substantive progress in implementing the series of measures initiated at the EU Summit, which will be conducive to boosting the confidence of the international community in its effort to solve the debt problem. China, after taking into account of risk prevention and management, will continue to invest in the national bond market in euro zone, strengthen communication and coordination with EU, ECB and IMF as well as major European countries so as to help the debt-ridden countries in euro zone to get out of difficulty.

The two prime ministers reached consensus on fighting against trade protectionism, settling trade frictions in areas like the photovoltaic industry through dialogue and consultation and avoiding resorting to anti-dumping and anti-subsidy measures. The two agreed that China, Germany and EU should give full play to their respective advantages, strengthen and deepen business-to-business cooperation in a common effort to explore the market and achieve common development.

The two prime ministers also sang high praise of the achievement made in various fields between the two countries since the first round of Sino-German Government Consultations. The two agreed that regular intergovernmental consultations help the departments of the two governments to develop a strategic and holistic understanding of the bilateral ties, to build closer coordination and cooperation and to work out and push forward cooperation at a higher level. During the current consultations, the two sides reached agreement on strengthening cooperation in advanced manufacturing, establishing Sino-German Advisory Committee on Economy, fostering a strategic partnership in renewable energies, exploring maritime and polar cooperation, launching Chinese and German Languages Year and other issues and would work out details together.

Wen Jiabao remarked that despite current international financial crisis and various challenges, China-Germany relations maintain a more solid base, their mutual interests are closer and their cooperation mechanism is more effective. This Sino-German Government Consultations, held on the occasion of the 40th anniversary of the establishment of diplomatic ties between the two countries, is an important link between the past and the future and has met the expected goals. Wen expressed his belief that China and Germany will become closer cooperation partners and wished that the bilateral ties will be better.

Merkel noted that the intergovernmental consultations between Germany and China serve as a forceful mechanism for promoting mutual understanding and cooperation for mutual benefit. She hoped that such consultations will continue to play a big role in pushing forward the strategic partnership between the two countries.

After the consultations, the two prime ministers attended the signing ceremony of cooperation agreements and met the press together. Earlier, Wen hosted a welcoming ceremony for Merkel in the North Hall of the Great Hall of the People.

Also at the welcoming ceremony were Song Hai, Vice-Chairman of China Democratic National Construction Association (CDNCA) Central Committee, Yang Jiechi, Minister of Foreign Affairs, Zhang Ping, Chairman of the National Development and Reform Commission, Yuan Guiren, Minister of Education, Wan Gang, Minister of Science and Technology, Miao Wei, Minister of Industry and Information Technology, Xie Xuren, Minister of Finance, Zhou Shengxian, Minister of Environmental Protection, Jiang Weixin, Minister of Housing and Urban-Rural Development, Zhou Xiaochuan, Governor of the People's Bank of China, Gao Hucheng, China International Trade Representative and Vice-Minister of Commerce, Zhang Mao, Vice-Minister of Health and Shi Mingde, China's ambassador to Germany.