Chinese President Xi Jinping, in talks with German Chancellor Olaf Scholz in Beijing on Tuesday, emphasized the "huge potential" for win-win cooperation between the world's second- and third-largest economies and urged vigilance against the rise of protectionism, the Chinese Foreign Ministry said.

The Chinese leader stressed the importance of adopting "an objective and dialectical view on the issue of capacity through a market and global perspective," the ministry said, referring to Western nations' concerns over Beijing's overproduction of items, including electric vehicles.

Xi claimed China's exports of EVs, lithium batteries and photovoltaic products have enriched global supply, eased inflationary pressure and made an important contribution to the worldwide response to climate change and low-carbon transition, the ministry said.

Combined photo shows Chinese President Xi Jinping (L) and German Chancellor Olaf Scholz. (Kyodo)

Noting that the supply chains of China and Germany are "deeply intertwined" and their markets are "highly interdependent," Xi sought cooperation not only in traditional areas such as automobiles, but also in emerging sectors, including green transition, digitization and artificial intelligence, the ministry added.

Some European countries and the United States have raised concerns over the Chinese government's support of its EVs and other green industries, alleging that it has led to reduced product prices.

The European Union is probing Beijing's subsidies for EVs exported to the region, potentially leading to countervailing tariffs.

The mutually beneficial bilateral cooperation is not a "risk" but a guarantee for the stability of their relations and an opportunity for the future, Xi was quoted as saying.

His comments came as some Western nations, including Germany, have pursued a policy of "de-risking" from China to reduce dependence on the Asian economy.

Scholz expressed opposition to protectionism and his country's willingness to promote sound EU-China ties as an important member of the regional bloc, the ministry said.

The German leader called for closer cooperation with China on climate protection, saying Beijing and Berlin "have a responsibility to protect global public goods." He also advocated a rules-based trading system, according to German news agency dpa.

The two leaders discussed Russia's war in Ukraine, with Xi calling for an international peace conference recognized by both Moscow and Kyiv and "ensures the equal participation of all parties." The president said China will maintain close communication with Germany on this matter, the ministry said.

Beijing has been boosting ties with Moscow in recent years, and its Russia-bound exports of dual-use goods that can be used for both civilian and military purposes have triggered concerns among Western nations.

Xi and Scholz also talked about the Palestinian-Israeli conflict and shared the view that it is important to prevent escalation and further deterioration of the situation, the Chinese ministry said.

The German chancellor later held talks with Chinese Premier Li Qiang.

On a three-day visit to China through Tuesday with a business delegation, the chancellor stopped in Chongqing and Shanghai before traveling to the capital. He last visited the Asian country in November 2022.

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