It is China's strategic decision to pursue innovation-driven economic development, the premier said, adding that combining China's market with Germany's technologies will create huge impetus for both countries' development.
Li urged the two sides to view bilateral ties from a strategic perspective and deal with their problems properly.
Noting that the European debt issue is yet to be fully resolved, Li voiced his hope that Europe could overcome difficulties and stabilize the eurozone economy as soon as possible.
China-Germany cooperation, boasting decades of successful experiences, has become the frontrunner of China-Europe cooperation, he said, calling on the two sides to create new bright spots in bilateral cooperation and further advance China-Germany and China-EU relations.
For her part, Merkel said that China and Germany are each other's important trading partner and their economies each have their own advantages.
Against the backdrop of a grim global economic situation, she added, the two countries should tap further into their cooperation potential, and build a more favorable environment for bilateral business cooperation, so as to bring more benefits to the two peoples.
Germany is the last leg of Li's ongoing foreign trip, which has already taken him to India, Pakistan and Switzerland.