China and Germany: A new special relationship?
China's relationship with Germany has evolved a lot in the past few years.
A strategic partnership in 2004 evolved into a "comprehensive" strategic partnership at the end of 2014.
Politically, Germany views China as a key partner and important elements of their bilateral trade negotiations include high-level coordination on policy, dynamic trade relations, investment, the environment, culture and science.
CNBC highlights the major trading connections between the two countries and how that could change over time.
China is one of Germany's largest trading partners in the world. According to data from the German Chamber of Commerce, bilateral trade reached a record high of 154 billion euros ($169.3 billion) in 2014. The report also shows that German exports to China have been growing strongly with a total of 5,200 German companies operating in China as of 2015.
While Germans have on many occasions complained of bureaucratic hurdles such as corruption in the Chinese system, the economic relations between the two countries has still grown over the years.
According to official data, German exports are dominated by automobiles and machinery, which together account for more than half of Germany's total exports to China. Other items such as electrical products, optical equipment and airplanes make it to the top five product categories totaling nearly 75 percent of the total export volume.
Meanwhile, electrical products and machinery dominate Chinese products exported to Germany.
According to data from the Federal Statistics Office of Germany, China was the largest trading partner for imports. In exports, China was ranked fifth after United States, France, the United Kingdom and the Netherlands.
Analysts have pointed out that trading relations between the two countries has steadily increased by an average of 14.2 percent annually, doubling nearly every five years.
"Despite China's economic slowdown as well as Germany's low GDP (gross domestic product) growth, trade volume hit another record, reaching 154 billion euros in 2014. Notably, German exports to China have been outperforming imports from China, reducing the current account deficit," according to the latest business consumer confidence survey conducted by the German Chamber of Commerce in China.
The survey conducted with nearly 500 German companies in China showed that they remain positive about future investment potential in the region despite market speculations of an economic slowdown.
Official government data show that foreign direct investment (FDI) into China from Germany continues to be strong and Germany has consistently been among China's top ten foreign investors. The FDI flows have nearly doubled from its value in 2010 to $2.1 billion in 2013. This level has since been maintained.