The German chancellor, Angela Merkel, went ahead with an informal meeting with the exiled Tibetan spiritual leader the Dalai Lama on Sunday, despite China cancelling a meeting between a German minister and Chinese officials in an apparent expression of disapproval.

China had issued a warning to Berlin this week saying that if the meeting at Ms Merkel’s chancellery went ahead, it was in danger of damaging relations between the two countries.

Ms Merkel ignored her advisers who told her to cancel the meeting rather than incur the wrath of Beijing, which could damage the two countries' thriving business relationship.

On Sunday, China cancelled a meeting in Munich planned between the justice minister, Brigitte Zypries, and Beijing officials to discuss legal affairs. The move was widely interpreted as a sign of tension.