Visiting Chinese President Xi Jinping and German Chancellor Angela Merkel decided Friday to lift bilateral relations to a comprehensive strategic partnership.

In talks with Merkel in the afternoon, Xi said the coming years will be a crucial period for both China's and Germany's reform and development, and for the two countries to grow and achieve progress together.

China and Germany are not only economic partners but also political partners and strategic cooperation partners, Xi said, adding that it is a step of great significance that the two sides establish a comprehensive strategic partnership and start mapping out medium- to long-term action plans for developing bilateral ties.

China, he said, is willing to work with Germany to plan and design bilateral cooperation in various fields and build a bright future for China-Germany ties.

To that end, Xi suggested the two sides to be politically trustworthy friends, maintain regular high-level exchanges, strengthen communication on major issues and enhance strategic mutual trust.

Both sides should make full use of the some 60 cooperation mechanisms between them, including the strategic dialogue mechanism, while enhancing contacts between governments, political parties, parliaments, as well as think tanks of the two countries, Xi said, adding that efforts are also needed to intensify cooperation in such areas as diplomacy, law enforcement and counter-terrorism.

The two countries can also conduct dialogue on issues including human rights on the basis of equality and mutual respect, Xi said.

On economic cooperation, Xi suggested both sides to achieve a qualitative leap.

As the timing and condition for deepening strategic cooperation have been ripe, he urged both countries to expand two-way investment and trade, carry out more strategic projects of large scale, and undertake joint development and production.

More endeavors can be put on cooperation of smart manufacturing, internet of things, and the new generation of information technology, as well as collaboration on aeronautics and astronautics, maritime and polar matters, the Chinese leader said.

According to Xi, China supports the construction of a China-Germany agricultural center, and the two sides can hold regular high-level fiscal and financial dialogues.

Xi also pointed out that China welcomes the establishment of an RMB clearing and settlement mechanism in Frankfurt, as well as Germany's active participation in building the Silk Road economic belt.

Meanwhile, Xi suggested the two countries to strengthen cultural exchanges, continue to hold major cultural events in each other's country and establish a high-level mechanism for bilateral cultural exchanges.

Both sides should also strengthen education, tourism cooperation and collaboration between local governments, promote people-to-people exchanges and facilitate the exchange of personnel between the two countries, Xi noted.

At the same time, Xi suggested China and Germany to maintain effective communication in international affairs, jointly promote diplomatic solutions to regional hotspot issues.

Both sides should strengthen coordination and cooperation within the United Nations, the Group of 20 and other multilateral mechanisms so as to jointly cope with global challenges, promote the reform of the international system and improve global governance.

Meanwhile, both countries should commit themselves to deepening the China-European Union (EU) comprehensive strategic partnership, safeguarding and promoting a free trade system, and pushing for an early harvest of the negotiations on EU-China investment pact, Xi said, adding that the two countries should work for an early launch of joint feasibility study of the China-EU free trade zone, and settlement of China-EU trade and investment disputes through dialogue and consultation.

For her part, Merkel lauded the continuing high-level development of bilateral ties, the positive exchanges in all areas and facets, as well as the strong economic cooperation between the two countries.

Germany understands the many challenges that China faces, and supports China's stability and development, she said, adding that her country is willing to promote political dialogues and people-to-people exchanges with China, and deepen mutual understanding and mutual trust.

Merkel noted that Germany is also ready to expand cooperation with China in such areas as economy and trade, investment, finance, energy and environmental protection.

Earlier Friday, Xi arrived in Germany for a state visit. It is the third leg of his ongoing four-nation European trip, which also includes the Netherlands, France and Belgium.