Xi tabled a five-point proposal on boosting the sustained, steady and healthy development of the Chinese-German relationship:

-- Maintain close contacts and deepen mutual political trust. Xi urged the two sides to enhance communication and cooperation through various channels and to further increase mutual understanding and political trust in line with the principle of respecting and accommodating each other's core interests.

-- Deepen bilateral trade and economic cooperation, and jointly tackle the international financial crisis. Xi said two Chinese trade and investment delegations have made their way to Germany, and that he hoped the German side would also take substantial measures to support and boost bilateral trade and investment, especially in the cooperation of high-tech areas. 

-- Enhance cooperation on climate change, new energy and environment protection.

-- Strengthen exchanges and cooperation in areas including culture, education, press and tourism so that the Chinese-German friendship could be more deeply rooted among the people of the two countries. Xi said the Chinese side, as the Guest of Honor for the Frankfurt Book Fair, is ready to stage various events to better introduce the Chinese culture to the German people.

-- Enhance international cooperation to promote world peace and development. The Chinese government supports Germany to play a bigger role in international organizations like the UN, he said. China is also willing to keep communication and coordination with the German side on major international issues like reform of the international financial system, climate change, food and energy security, so as to jointly contribute to world peace and development, he added.

Merkel, who hosted a grand welcoming ceremony in honor of Xi, agreed to Xi's five-point proposal.

She said the newly-elected German government will continue to give priority to the Germany-China relations and is willing to work with China to enhance bilateral cooperation.

Merkel extended congratulations on the 60th anniversary of the founding of the People's Republic of China, and hailed China's economic achievements and the stimulus package adopted to boost domestic demands since last year.

Merkel noted that these measures have positive contributions to the recovery of the global economy.

Chinese Vice President Xi Jinping (L) presents two books written by former Chinese leader Jiang Zemin to German Chancellor Angela Merkel at the start of their meeting in the Chancellery in Berlin, capital of Germany, Oct. 12, 2009.[Lan Hongguang/Xinhua]

Prior to the meeting, Xi presented to Merkel with two English-version books on energy and information technology written by former Chinese President Jiang Zemin.

Xi arrived in Germany on Saturday morning for the second leg of his five-nation Europe tour.

Later on Tuesday, Xi will attend the opening ceremony of the Frankfurt Book Fair.