Germany, China ink billions in deals

German Chancellor Angela Merkel’s recent visit to China has paid off in billions of dollars in deals for trucks and power equipment in China, AP reported. Notable contracts include a US$3.5 billion deal between Siemens AG (SI.NYSE, SIE.ETR) and Shanghai Electric Power Generation Equipment  to develop gas and steam turbines, and a US$936 million joint venture between Daimler AG (DAI.ETR) and Beiqi Foton Motor (600166.SH) to produce trucks. Relations were strained by Merkel’s decision to meet with the Dalai Lama three years ago, which German business leaders said damaged their ability to make deals in China. Merkel also met with Premier Wen Jiabao to discuss European Union recognition of China’s market status, which will help the country avoid EU anti-dumping tariffs. Merkel said that recognition of China’s status depends on improvements in intellectual property protection and market access for German firms in China.