German Chancellor Angela Merkel has begun a three-day visit to China, first visiting Chengdu in Sichuan province, southwestern China, where more than 150 German companies have offices and manufacturing plants.

Accompanying Merkel is a large delegation of business executives who will have separate meetings with Chinese business groups to discuss expanding relationships. 

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In Beijing, the German businessmen will attend a joint business council, where significant issues will be discussed, including intellectual property rights, and fair market access for foreign companies in China.

Merkel will also hold dialogues with Premier Li Kequiang and President Xi Jinping, along with other important Chinese government officials, with trade issues high on the agenda. 

Germany looks at China as its second largest export market outside Europe after the United States.

In 2013, Germany exported goods worth $91 billion to China, while its imports from China came close to $99 billion.

The German trade organization GTAI earlier said German exports to China had increased by 9.8% during the first quarter of this year.  

German businesses look at China as important in the current marketing thrust toward Asia, with machinery and automobile manufacturers interested in tapping into the expanding Chinese middle class.

When Merkel meets with China's leaders, it is believed that preparations for the upcoming government-to-government talks will be discussed.

The talks are scheduled for October and will cover issues ranging from technological cooperation, and education and cultural exchange programs.

As Merkel embarks on the China visit, a senior intelligence official in Germany warned that Chinese government agencies may be targeting small and medium-scale businesses in Germany in their industrial espionage operations.

Hans Georg-Maasen, who heads the BfV domestic intelligence agency, said China's technical intelligence agency has substantial personnel and resources to carry out industrial intelligence outside of China's borders.

Tagsangela merkel, Chengdu