China's participation is vital to the development of the world, said the visiting German Chancellor Gerhard Schroeder today while attending a discussion titled "Germany and China -- Marching Towards A Common Future".

Schroeder, who arrived here Tuesday evening for his second China visit this year, said that China played a significant role in dealing with the Asian financial crisis by maintaining a stable exchange rate of the RMB yuan.

Without China's effort, Asia would still be in financial crisis, he said.

Noting that China has made great progress in its legal system, the German chancellor suggested that more exchanges and dialogue should be initiated between Germany and China.

A number of topics were covered during the discussion including economic development, legal reform, human rights, environmental protection and world peace.

After the discussion, Schroeder presided over the opening ceremony of the German Information Room at the Shanghai Library. Books in the information room have been donated by the Goethe Institute of Germany.