Merkel's visit often comes with a strong economic focus. Germany is looking to further capitalize on the increased Chinese investment.
For some at this cutting-edge design expo China's economic slowdown is great news. A maturing Chinese market needs higher-end products-and German knowhow is in demand. German architectural firm 'Co-Ordination' saw the opportunity early-it opened an office in Shanghai in 2009 - a move that's more than paid off.
"Beyond the European market, China is very exciting and versatile for us to be engaged in design and design-based projects. In addition to the economical issues, our curiosity in China plays a big role, too. We want to explore a new market, a new country, a new culture," said Jochen Gringmuth, CEO of Co-Ordination.
While German companies are making gradual inroads in China-capital is moving a lot more swiftly in the opposite direction.
Chinese investment in Germany has rapidly increased over the last decade or so from near zero. And unlike many other parts of Europe, it's remained stable despite some sluggish economic growth here. China's interest appears mainly driven by an increasing demand for products of the highest quality.
Chinese investments are also diversifying in German companies-large and small.
"We have these relatively small companies, very specialized, producing high-end, technologically refined products, that are very competitive worldwide. And I think the competitive edge of the small and medium-sized companies, as well as the larger companies, is very competitive to Chinese investors," said Benno Bunse, CEO of Germany Gov't. Trade & Invest Agency.
This is the German Chancellor's ninth visit to China.