President Xi Jinping on Friday said that a sound and stable China-Germany relationship will serve both countries' interests, and called on Berlin to clear the path for more two-way investment.

During a phone conversation with German Chancellor Friedrich Merz, Xi said both countries should expand cooperation in cutting-edge fields such as artificial intelligence and quantum technology, according to Xinhua News Agency.

"The correct position of China-Germany and China-EU ties is as partners," Xi said, adding that "a stable and predictable policy environment is an important guarantor of bilateral cooperation".

He also told Merz that China "hopes the German side will provide more policy support and facilitation for bilateral investment cooperation, as well as a fair, transparent and non-discriminatory business environment for Chinese enterprises".

Both leaders emphasised the importance of economic relations between Germany and China, according to a statement from Merz's office.

Merz, who took office earlier this month, also told Xi about "the common efforts of Europe and the EU to bring about a quick ceasefire in Ukraine" and that he urged China to "support these efforts", according to the statement. (Additional reporting by AFP)