German Chancellor Angela Merkel was given a formal military reception Monday by Chinese Prime Minister Li Keqiang, on the second day of her visit to China.
Cooperation between the two countries is broad-based and should deepen, Ms. Merkel said ahead of the talks with Mr. Li.
She was due to meet President Xi Jinping later on Monday.
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The meetings come as several multimillion dollar business deals were signed with Chinese firms.
Ms. Merkel and Mr. Li witnessed the signing of a contract with European aircraft manufacturer EADS for 100 helicopters, worth over 400 million dollars.
German airline Lufthansa signed an agreement to establish a new joint venture with its Star Alliance partner Air China.
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Ms. Merkel began her three-day trip in the south-western province of Sichuan by visiting a Volkswagen plant and meeting with children of migrant workers.