Visitors look at a machine at the Schaeffler's stand at the 2016 Hanover industrial trade fair in Hanover, Germany, April 25, 2016. [Photo/Xinhua]

Speaking at the opening ceremony, Li Xiaosi, Chinese envoy to Germany, said the establishment of the alliance would enable the two sides to enhance their cooperation in smart production and structural transformation and upgrading of industries.

Li Yong, deputy director of Investment Promotion Agency of Ministry of Commerce of China, said that the structural reforms on the supply front are aimed at uplifting the quality of Chinese products and all-round upgrading of the industry.

The establishment of the alliance will further strengthen the city-to-city and corporate-to-corporate cooperations between the two countries, said Li.

Matthias Machnig, State Secretary at the Federal Ministry for Economic Affairs and Energy, maintained that the cooperation among German and Chinese companies on the regional levels is very important and the Sino-German Industrial City Alliance is expected to boost the cooperation.

The Alliance held an inaugural meeting at the Hanover Fair.