German Vice Chancellor and Finance Minister Olaf Scholz is expected in China on Thursday for talks on trade and fiscal policy.

The focus is also expected to be efforts to resolve the trade conflict between China and the United States in order to avoid a worldwide spiral of punitive tariffs.

Scholz plans to meet Vice Premier Liu He in Beijing during his first visit to China as vice chancellor.

Liu is the leading economic policymaker in the Chinese government and is also responsible for negotiating the trade dispute with the US. He is a close confidant of state and party leader Xi Jinping.

As part of the Sino-German financial dialogue, the signing of an agreement for cooperation between the banking authorities of both countries and an agreement for more cooperation in securities trading are also planned.

In addition, Scholz is scheduled to meet the head of the International Liaison Department of the Communist Party of China, Song Tao, on Thursday.

Among other things, Song plays an important mediating role in relations with North Korea.