German Chancellor Angela Merkel called on Beijing to uphold the rule of law and create a level playing field for foreign companies as she began her three-day visit to China on Sunday. This is Merkel's ninth visit to China since assuming office in 2005.

Speaking to students at Beijing University on Sunday, Merkel underscored the importance of independent judiciary for strengthening social stability in the society.       

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"This means the judiciary decides according to the laws and legislation of the country independently of politics, and everyone is equal before the law. That means court procedures and rulings have to be transparent," the German chancellor said. "If interpreted in this way, rule of law strengthens the trust of citizens in state institutions and its decisions. And thereby also strengths the social stability of a country."  

Merkel's critical statement was directly aimed at China's communist government, which has been constantly accused of interfering in judicial processes. However, experts say that President Xi has taken many positive steps to improve the country's judicial system in order to quell street protests.

The German chancellor and Chinese Premier Li Keqiang on Sunday also agreed to hold future discussions on controversial law-banning NGO's from receiving finance and engaging in political activities. The discussion on the issue would be held through foreign ministries and other organizations.  

On the issue of foreign firms, Merkel urged Beijing to shed their policy of trade protectionism and allow foreign companies to operate more openly in the Chinese market.

"As we see it, a legal framework for companies also has to be designed in such a way that foreign companies enjoy the same rights and privileges as domestic companies, for example as regards public tenders, the effective protection of brands and patents and data," she said.  

Trade experts have been criticizing China not only for non-implementation of economic reforms, but also for introducing a slew of tough regulations for foreign firms. Experts claim that these regulations have made it further difficult for foreign companies to operate in the Chinese market.    

Merkel also raised the issue of China's excessive steel dumping in the international markets, which has taken a toll on profits of several major steel companies in the international markets. "We have to ensure that we have a level playing field," Merkel said on the steel overcapacity issue.

She added that no one wants to see a prolonged trade war between the European Union and China, stressing that the issue of steel dumping needs to be solved through proper negotiations.

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