Chinese Premier Wen Jiabao talked with German Chancellor Angela Merkel by phone Friday on a range of issues, including bilateral relations and the sovereignty debt crisis haunting Europe.

Merkel extended her greetings to the Chinese people for the Lunar New Year, which falls on Feb. 3. Wen thanked her and asked her to convey his cordial greetings and best wishes to the Germans.

The two leaders agreed that Sino-Germany relations had made important progress in the past year, especially the upgrading of ties as a strategic partnership and the launch of a government consultation mechanism.

Bilateral trade had reached a new high in the past year, which boosted the momentum of the two economies and enhanced the confidence of expanding economic and trade cooperation between China and Europe, they said.

Wen said China would continuously back Europe with practical action to tackle the debt crisis, and expected Germany to play a key role in and exert great influence on it.

The support reflected the spirit of the China-EU comprehensive strategic partnership and was conducive to the steady recovery and growth of the world economy, he said.

Wen said he hoped that, in 2011, China and Germany, and China and Europe, would keep close contacts, make joint efforts and go with the trend of progressiveness and transformation to make a greater contribution to world peace and development.

Merkel expressed her gratitude for the support China had offered to Europe over the debt crisis.

China's support had strengthened Europe's confidence in overcoming the crisis, and Europe would be united to overcome the difficulties with their own efforts, she said.

Merkel said Germany was willing to continue to closely cooperate with China and advance both the Germany-China relationship and Europe-China relations.