Germany`s Chancellor Angela Merkel flies to the Far East in her second visit in half a year to China this Thursday, attempting to bolster the ties between the world`s top two exporters and of course shed more light on debt-troubled nations sharing the single currency.
According to German officials, Merkel and Chinese Premier Jen Jiabo will engage on many issues, from Energy, climate and cultural links, even to heightened unrest in Syria, but major talks will be reassuring Chinese leaders about the stability of the euro zone.
Merkel, joined with some 20 top executives from her country`s largest corporations such as EADS, Siemens and Volkswagen, will also try to reassure Chinese leaders that Germany is standing up for the euro region where investment still has a grounds of safety.
A senior aid to Merkel told reports on Tuesday that Germany needs to convince China like it did with many countries that "euro investments are still stable and secure," however Chinese investors still lack confidence after incurring substantial losses on their Greek debt holdings.
To back her commitment to shore up the fragile euro zone, Merkel will be taking seven ministers with her during this trip. Merkel will attend a dinner on Thursday night with China`s central bank chief, Finance minister and the head of its $480 billion sovereign wealth fund.
Today on Wednesday, the German Chancellor is set to meet the Italian Prime minister Mario Monti for another round of talks on the euro zone crisis in Berlin and ahead of an Italian debt sale on Thursday that could show whether investors are still attracted to Italy`s medium-to-long-term bonds.
Monti is expected to call on the German Chancellor to show her support to the bond-buying plan to push Spain and Italy`s borrowings costs closer to Germany`s benchmark. He also might argue about the Bundesbank`s opposition to the ECB plan.
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