German Chancellor Angela Merkel was given a formal military reception Monday by Chinese Prime Minister Li Keqiang, on the second day of her visit to China.

Cooperation between the two countries is broad-based and should deepen, Ms. Merkel said ahead of the talks with Mr. Li.

She was due to meet President Xi Jinping later on Monday.

The meetings come as several multimillion dollar business deals were signed with Chinese firms.

Ms. Merkel and Mr. Li witnessed the signing of a contract with European aircraft manufacturer EADS for 100 helicopters, worth over 400 million dollars.

German airline Lufthansa signed an agreement to establish a new joint venture with its Star Alliance partner Air China.

Ms. Merkel began her three-day trip in the south-western province of Sichuan by visiting a Volkswagen plant and meeting with children of migrant workers.

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