In an agreement signed Monday with China's Ministry of Finance, the German government promised to donate 7 million euros to be used for AIDS prevention and treatment in China's economically less-advantaged western areas, a ministry spokesman said.

An additional 42.35 million euros will be made available by Germany as government loans to support the construction of hospitals and disease control centers in west China.

The spokesman said the Chinese government has enhanced its capability of fighting against AIDS thanks to cooperation with other countries.

China has absorbed preferential funds and advanced medical technology and management from overseas, he said.

The German government has so far either donated or loaned a total of 176.7 million euros for China's medical and health care work, he said.