Premier Li Keqiang meets with German Chancellor Angela Merkel at the Great Hall of the People in Beijing, Oct 29, 2015. [Photo/Xinhua]

BEIJING -- China and Germany agreed to cooperate more as German Chancellor Angela Merkel visited Beijing on Thursday.

In the morning, Premier Li Keqiang held a red-carpet ceremony to welcome Merkel, who is on her eighth visit to China since 2005 in the capacity of chancellor, and then held formal talks with her.

The two sides agreed to maintain frequent high-level contact, promote exchanges in various fields, improve coordination on major international affairs and seek more common interests in diplomacy and security.

The two also agreed to try to coordinate their economic strategies more, as China is pursuing similar programs to integrating conventional industry and information technology.

"We need to adopt advanced technology and concepts from Germany," Li said, stressing that China offers a big market for the European economic powerhouse.

This year has been designated the Year of China-Germany Innovation Cooperation. Both sides will aim to create new growth points in investment, financial cooperation and tech.

Li called on the two countries to cooperate more in innovative development and modern urbanization as China encourages entrepreneurship to promote growth.

He also urged them to use work together to transfer their excess industrial capacity to developing countries.

Merkel said she has confidence in China's economy, believing the transformation of China's growth mode will provide new opportunities for Germany-China cooperation.

The two government heads also touched on other hot economic topics including the Asian Infrastructure Investment Bank (AIIB), RMB internationalization as well as cooperation between China and the EU.

Germany is excited to participate in establishing the AIIB, supports the RMB's inclusion in the International Monetary Fund's special drawing rights basket and backs China's application for membership of the European Bank for Reconstruction and Development, said Merkel.

She said Germany hopes China and the EU will sign a bilateral investment agreement at an early date, noting it is a prerequisite for a later China-EU Free Trade Agreement.