"China's exports of electric vehicles, lithium batteries and photovoltaic products have not only enriched global supply and alleviated inflationary pressure, but also contributed greatly to the response to climate change and green and low-carbon transformation," Xi told Scholz.
"(Germany and China) should be vigilant against rising protectionism, look at the issue of production capacity objectively and dialectically from a market-oriented and global perspective," Xi said.
Scholz, who is travelling with a raft of CEOs, has been cautious about pushing away China, an important market for Germany, saying the EU should not act out of protectionist self-interest. Still, competition between ought to be fair, he said in Shanghai on Monday.
"In other words, that there is no dumping, that there is no overproduction, that copyrights are not infringed," he said.
On Tuesday, when he also met China's Premier Li Qiang, he pressed the case for China to improve business conditions for German companies, guaranteeing equal market access, the protection of intellectual property and a reliable legal system.