German-Sino Tension

"We have had better relations with China, that is unfortunately true," Steinmeier told journalists during a visit to Paris on Saturday, Nov. 17. "What is particularly worrying for us for the time being is that the visit by the German finance minister could not happen, while dialogues on human rights and the rule of law have been cancelled."

The recent spat of cancellations are the result of China's anger over a September meeting between the Dalai Lama and Chancellor Angela Merkel, senior foreign ministry officials told reporters in Berlin Saturday.

"It is a development that we cannot let remain as is," Steinmeier said, adding that it was in Germany's interest to "reestablish good relations with China."

Series of meetings cancelled

German diplomats also said they feared France would exploit Chinese displeasure with Merkel to win favor with China, according to a report to be published Monday in Germany's Der Speigel newsmagazine.

French industrial leaders are expected to attempt to win orders away from German companies when French President Nicolas Sarkozy visits Beijing this month. China is Germany's biggest trade partner in the Asia-Pacific region.

Other meetings with China that have fallen to the wayside include December discussions between Beijing and human rights organizations over the status of civil rights in the country.

Berlin had sought to play down the diplomatic row set off by the spiritual leader's visit in after China cancelled a trip to Beijing by Finance Minister Peer Steinbrück. The finance ministry in Berlin said Steinbrück's visit set for next month was called off due to his colleague's "very busy schedule."

A strategic dialogue between the German and Chinese foreign ministry secretaries, which dates back to 2006, has also been put on ice, Der Spiegel reported, quoting Germany's ambassador to China, Michael Schaefer.

Merkel not alone

Merkel, however, was not the only world leader to incur China's anger over a meeting with the Dalai Lama. Following his visit September to Berlin, the Tibetan spiritual leader also traveled to the United States where he met with US President George W. Bush and members of the US Congress.

Fallout from the Dalai Lama visits was also blamed for China's withdrawal from a planned meeting of world powers on the Iranian nuclear crisis in October, forcing its cancellation.

China, which has ruled Tibet since sending in troops in 1950, accuses the Dalai Lama of fuelling a separatist movement and regularly protests his meetings with the world's political and economic elite.