And our reporter Wang Tongxuan now joins us live in Beijing for more on Merkel's visit.

Q1. Tongxuan, what's on Merkel's agenda during these three days?

Q2. We heard just now that Merkel is looking to further capitalize on increased Chinese investment in Germany. Tell us more about the topics to be discussed during the visit.

From sketches to small car models. Tsinghua graduate Li Yang joined the R and D department of Beijing-based Mercedes-Benz more than four years ago. Today designers like him are in high demand.

"As most of the products that we sell in China are locally produced we are increasing our R and D capabilities, so we can put them even faster into the right product for China," said Hubertus Troska, chairman & CEO of Daimler Greater China.

By the end of 2015, more than 500 highly qualified engineers and designers were working at this new R&D Center.

Total investment has reached over 100 million US dollars on its local passenger car R&D network in Beijing.

China is now the largest single passenger car market for Mercedes-Benz. More than 360-thousand cars were sold in the country in 2015, up 35 per cent on the previous year.

15 new or upgraded models have been launched locally and many more developed specifically for the Chinese market.

"A lot of innovative safety and automation technology will be available for this car and I am convinced Chinese customers will love these features because they are young and they are always very keen on new tech developments," Troska said.

In 2012, Daimler Greater China and Beijing's Tsinghua University established a joint Research Center for Sustainable Transportation.

"The cooperation between us and Daimler is not only limited to automobile technology but rather a longer term vision on how to develop a sustainable transportation system in the future. We conduct in-depth research on transportation policies and management," said Li Meng, deputy director of Tsinghua-Daimler Center for Sustainable Transportation.

The center is supporting future-oriented research projects specifically for China..such as active and passive safety systems, integrated traffic information services, as well as megacity traffic and regulation research.

Sustainable transport takes a broad approach looking at every aspect of transportation such as infrastructures, policies or technologies. At this lab, research into vehicle safety is carried out.

"Safety is part of the Mezedes Benz core brand value. We believe in accident-free driving, a lot of technology in needed. We believe specially a big country like number one market in the world for cars should be at the front for safety technologies and this is why we work very closely put our latest technology, our latest R and D capabilities into the project in China. so we will be ahead or at the forefront with safety technology that is the state of the art in China," said Troska.

Inspired by the Grand Prix racing car, W25, Li Yang calls his design Stream One, a racing model featuring an electric engine.

"Working here was my dream when I was a student. My dream now is to design a car with a Benz logo, hopefully in the not too distant future," said Li Yang.

The future is definitely looking bright for Li Yang...and for the automobile sector in China.