Part 2 - AHK Greater China
Transcrição
Part 2 - AHK Greater China
CHAMBER NEWS CHAMBER NOTICES ALL CHINA Kong with more than 120 professionals. After graduation in Business Administration at the University of Tübingen and doctorate at RuhrUniversity Bochum, Germany, Dr. Ketterer has gained practical and profound experience in professional aspects for more than 16 years. His main focus lies in assurance (external and internal audit); prevention and forensic services, assets and inventory management; business consulting services including tax planning strategies and M&A projects. Young Professionals Membership The AHK is now offering a new kind of membership at its Beijing and Shanghai offices: Young Professionals under the age of 30, without company affiliation, can enjoy all the benefits as an AHK member at a special rate. For more information go to: http://china.ahk.de/en/chamber/shanghai/membership/member-types AHK Chief Representative gets Honourary Award Mr. Manfred Rothgänger, Delegate & Chief Representative Delegation of German Industry & Commerce Shanghai, has been awarded as Honourary Professor from the Chien-Shiung Institute of Technoloy in Taicang. In 2007 the AHK partnered with this institute and established the AHK-Chien-Shiung Vocational Training Centre, the first of its kind in China, to offer practical vocational education for skilled workers, in line with Germany’s dual system. Mr. Rothgänger has played a substantial part in the development of this AHK vocational training course as well as the adjustment of the academic and technical study courses in the past four years. BEIJING&TIANJIN Get Ready for the German Ball Beijing 2010! After the ball is before the ball: Preparations for the 10th German Ball on 13th November 2010 at the Kempinski Hotel Beijing have begun. Get involved now and support the event as a sponsor or partner. For more information please contact Magdalena Kempa at [email protected] SHANGHAI Two New Heads for Controlling Workshops Jens Peter Otto is an Assurance Partner of PricewaterhouseCoopers (PwC) based in Shanghai, seconded from PwC Germany since 2007. He leads the German Business Group in PwC China, comprised of professionals in Assurance, Tax and Advisory services. His professional qualifications include Wirtschaftspruefer (German CPA) and Steuerberater (German licensed Tax Advisor). His clients currently are subsidiaries and joint ventures of European, in particular German, multinational companies. Jens Peter also heads the China Business Group in PwC Germany, supporting the German member-firm of PwC in servicing Chinese companies, as well as servicing outbound investment from Germany into China. On a regular basis he gives lectures to post-graduate students at Tongji University, Shanghai. Dr. Thilo Ketterer, Wirtschaftsprüfer (German Public Auditor), has been with Rödl & Partner, a leading German-based international audit, tax and legal advisory firm, for more than six years in China. As Partner and one of the Managing Directors in China he is in charge of assurance, outsourcing, tax advisory and business consulting services provided by Rödl & Partner offices located in Shanghai, Beijing, Guangzhou and Hong- 42 August - September 2010 Ralph Dreher was leading the workshop from 2007 to date with extraordinary engagement and commitment. He enriched the German Chamber community with his energetic, outgoing and open-minded character. The German Chamber of Commerce is thankful for his contributions and wish him all the best for his endeavours in Japan. German Ball 2010 - Save the Date! The 13th German Ball will be held on 27th November 2010 at the Grand Hyatt Shanghai. Come and dance with us on the Orient Express. Ticket sale starts late September. For further information please contact Sebastian Zettelmeier: ' 021 5081-2266 ext. 1605 | * [email protected] Join our XING Group! GCC l Shanghai is paying tribute to web-savvy members and social networking trends. Become a member of the newly founded ‘German Chamber of Commerce in China - Shanghai Group’ to stay tuned on the latest news and happenings in and around Shanghai. Meet and interact with other members and systematically expand your virtual network. All just a click away at www.xing.com/net/gccshanghai/ Speakers Wanted Would you be interested in sharing your expertise with the community? Do you have a topic which you are passionate about and would like to present to business leaders in Shanghai? If so, you are welcome to contact our workshop leaders directly or send your topic suggestions to Jan Höpper at GCC l Shanghai. We are looking forward receiving your suggestions, enabling us to offer even more interesting workshops in the future. For further information please contact Jan Höpper: ' 021 5081-2266 ext. 1656 | * [email protected] SOUTH CHINA Oktoberfest 2010 in South China This years’ signature social event in South China, the Oktoberfest, will be held for the 6th consecutive time in Guangzhou in cooperation with China Hotel, A Marriott Hotel in front of Jinhan Exhibition Center from 8th-12th October. The Oktoberfest in Shenzhen established since 2006 in cooperation with the Crown Plaza Hotel will be held from 4th-7th November. The German Chamber of Commerce in South China is proud to provide its members with original German festival atmosphere and food & drinks in both cities and is guaranteeing lots of fun, dance, music and entertainment. Sponsorship opportunities are available now! Don't miss your chance, become a part of this truly German tradition and share it with colleagues, guests and friend. For sponsorship inquiries or further information, please contact Heidrun Buss: ' 020-8755 8203 | * [email protected] 2010 August - September 43 CHAMBER NEWS ALL CHINA PAGES Tapping into the Business Potential of Chengdu and Chongqing West China Workshops in Shanghai and Beijing After a successful kick-off event with German company representatives in Chengdu in May 2010 and several company visits and discussions in Chengdu and Chongqing, the AHK South China strived to inform the Headquarters in Shanghai and Beijing about business potentials and strategies for further market development in this region. For this purpose, the Chamber recently updated its 2008 study on western China in cooperation with the Germany Trade and Invest (GTAI) and was therefore able to present the latest news and developments to its audience. About 30 participants joined the West China Workshop in Shanghai and Beijing respectively. (from left) Mr. Erik Oortwijn, Mr. Dr. Roland Rohde, Ms. Alexandra Voss, Ms. Jutta Ludwig, Mr. Dirk Lange, Ms. Astrid Schröter This year marks the tenth anniversary of the Great Western Development Strategy (GWDS) launch, China’s first comprehensive funding programme to improve the situation of its hinterland. After a decade of regional development strategies, foreign invested companies still hesitate to make the move westward. The lack of qualified staff, modern infrastructure and professional government support presented a serious challenge for investors and, to a certain extent, still prevail today. However, when taking a closer look at the last two to three years, development in China has changed dramatically, especially in Sichuan Province with the main centre of activity in Chengdu and the municipality of Chongqing. The industrial cluster is becoming attractive as a location for more and more foreign companies. 25% of the RMB 4trn spending package on infrastructure and social welfare were earmarked for earthquake affected areas in Sichuan province in 2008. A big portion of the stimulus package to counter the effect of the global financial crisis in 2009 is distributed to West China as well. Moreover, with the collapse of the global demand for the coastal belt’s export products, the Chinese government have been forced to refocus on developing the domestic market and boosting private demand. Paying tribute to this development, under the umbrella of the German Chamber Networks (AHK) the Delegations of German Industry & Commerce and the German Chambers of Commerce in China are expanding its activities in West China, focussing on Chengdu and Chongqing. With the support of the German Federal Ministry of Economics, the office in South China has taken over the patronage of all related activities in this area since it’s the geographically closest office and has been present in Chengdu through a Liaison Manager since late-2008. 44 August - September 2010 Astrid Schröter presenting The Chamber ’s new Chengdu Liaison Manager Ms. Astrid Schröter started her presentation by stating some general facts and characteristics of the two provinces Sichuan and Chongqing. Dr. Roland Rohde, the author of the AHK-GTAI Western China Study then presented key findings of the study, explaining that salaries, rental fees and prices for electricity and water are lower than coastal regions on average. However, companies should keep in mind the additional logistics cost and overall supply chain challenges due to a lack of experience of local transportation companies. Afterwards, Ms. Schröter presented the ambitious infrastructure projects in Sichuan and Chongqing with massive investments in railways, roads, logistic centres, ports and airports. The Chongqing Free Port shall expand its capacity to 102 container and bulk cargo berths and a maximum annual capacity of 146mn tons by 2013. The port will then be able to cater to a greater capacity than any other inland port in China. Besides doubling the cargo capacity of Chengdu’s Shangliu Airport in 2009 to 400,000t, the fourth biggest air hub in China will be established in Jianyang airport north of Chengdu with planned 2mn tons of annual cargo capacity upon completion in 2015. Moreover, the Railway Bulk Logistics Centre in Chengdu will become the biggest hub in Asia with 26.3mn tons annual capacity by 2015. Subway construction and expansion of the high speed train to Chongqing is also under way. Additionally, the local government increases the quality of the power grid in order to Dr. Rohde presenting the new AHK-GTAI Westchina Survey www.china.ahk.de provide a stable supply of electricity. Despite overall improvement of infrastructure and investment climate, the Chinese central and local government offer specific tax advantages or abatement of rents for foreign invested companies operating in a promoted industry like automotive, chemical, logistics, hospitality, water treatment, and IT and electronics (Chongqing only). Currently, there are about 70 German companies situated in Chengdu and 30 in Chongqing. The AHK South China invited one company representative from each city to share individual experiences and provide hands-on advice on the living and working situation in Chongqing and Chengdu. Mr. Dirk Lange from Duravit (China) Sanitaryware Co. Ltd. explained the challenges for his logistics operations since the companies products are big, bulky, easy to break and need to be timely transported to the customers that are mainly located in coastal areas. He also dismantled some of the Shanghai and Beijing audience’s prejudices about Chongqing. In Beijing, Mr. Erik Oortwijn of Balluff Sensors (Chengdu) Co. Ltd. shared insights about his personal and professional decisions to move to Chengdu, and the positive experience with local government and employees. He could especially share facts about the educational situation and living conditions for families, having a wife and two kids of his own. When asked for their evaluation of the region’s future development, both Mr. Lange and Mr. Oortwijn agreed that Chengdu as well as Chongqing will be dynamic markets and great locations for catering to domestic demand. However, the region will certainly not overtake the development level of coastal regions, but might come very close. difficulties, differences and advantages of running a business in West China. With experience at his factory in Chongqing, Mr. Lange responded: “Its adventurous and you need China experience, but then you could have great success in this ambitious region of China.” We thank Mr. Lange and Mr. Oortwijn for their contribution to our Western China Workshop and for discussing and sharing their personal perspectives openly with the audience. HB Event: Westchina Workshop – Business potentials and strategies for market development in Sichuan and Chongqing Dates: 22nd June 2010 in Shanghai and 24th June 2010 in Beijing Venues: Sofitel Hyland Shanghai and Kempinski Hotel Lufthansa Center Beijing Speakers: Ms. Astrid Schröter | Chengdu Liaison Manager; Dr. Roland Rohde | Delegate for Hong Kong, South and West China, Germany Trade & Invest GmbH West China Representatives: Mr. Dirk Lange | Managing Director, Duravit (China) Sanitaryware Co. Ltd; Mr. Erik Oortwijn | General Manager, Balluff Sensors (Chengdu) Co. Ltd. Chair: Ms. Alexandra Voss | Delegate & Chief Representative | Delegation of German Industry & Commerce Guangzhou The AHK-GTAI West China Study 2010 will be available from August 2010 via [email protected] or www.gtai.de In closing remarks at the Shanghai event, Dr. Rohde inquired about 2010 August - September 45 CHAMBER NEWS BEIJING PAGES GCC BOARD Growing Fields Market Research Daimler AG Executive Vice President Daimler Northeast Asia Ltd. Chairman & CEO Mr. Ulrich Walker German Chamber Beijing Executive Director Delegation of German Industry & Commerce Beijing Delegate & Chief Representative Ms. Jutta Ludwig* KPMG Huazhen Certified Public Accountants Partner Audit Mr. Andreas Feege Treasurer Lufthansa German Airlines General Manager Beijing, Chief Representative Ms. Martina Grönegres Deutsche Bank (China) Co. Ltd. Director, Head of Corporate Banking Coverage, China Mr. Eddy Henning Volkswagen (China) Investment Co. Ltd. Executive Vice President, Finance Department Dr. Jörg Mull Giesecke & Devrient (China) Information Technologies Co. Ltd. Managing Director Dr. Roland Savoy TUI China Travel Co. Ltd. CEO BEIJING Mr. Marcel Schneider GMH – Holding China Chief Representative Mr. Jöran F. Treppschuh * All-China Board member 46 August - September 2010 After a year of planning, Executive Chamber Manager Katja Sassi-Bucsit was finally able to welcome Prof. Dr. Schellhase to the German Chamber on his most recent visit to the Middle Kingdom. Traveling from Germany three to four times a year, this time he was accompanied by a group of 23 students from his academic base, the University of Applied Sciences in Darmstadt, and on his way to Xi’an, where he also teaches. A Marketing expert and authority in his home country, he lectures, publishes, consults and presides in numerous academies, journals, businesses and marketing societies – but conducting market research in China, he said, was an entirely new territory. Dr. Shellhase’s presentation detailed the research project and related study he had conducted between 2005 and 2008 among German companies in China. This initial research was initiated by a worldwide customer satisfaction survey for a German machinery producer. His exploration of B2B market research activities of German companies in China, and how the intensity of market research impacted their target achievements, took him on a journey – including many taxi rides, he pointed out – between North and East China for personal interviews with 69 top level managers and CEOs of German companies. companies and offered recommendations for a culturally and circumstancially sensitive approach of the Chinese consumer in customer satisfaction surveys. While on the German side, market research companies failed to impress their German clients exploring the Chinese market simply because they tried to do their work from a distance without any local references whatsoever, the participants agreed that on the Chinese side, companies still greatly lacked awareness of this effective tool and often moved around blindly in a ’goldrush environment’. Although market research was gradually establishing itself in the B2C segments, the B2B field still provided a large uncharted market in itself for market research service providers in China with plenty of growing ground to benefit from. However, the professor had not come to lecture. Encouraging a lively dialogue with the expert audience members, Dr. Shellhase’s qualitative and quantitative study findings were complemented and expanded by the participants’ experiences and observations. The professional exchange concluded that although the extent of market research greatly depended on the market entry strategy and there was a measurable positive correlation between a high intensity of market research activities and high target achievements, China still provided challenging grounds. The accessibility of market information, particularly in highly specialised fields, was still subject to countless barriers, and the problematics of obtaining current and reliable figures from quality sources were evident. Not available to everyone and sometimes available for a fee, statistics struggle to even remotely represent the geographic, demographic, social and commercial vastness of the country. Industry and trade associations or clubs were pointed out as one promising contact point. One audience member related from personal experience that surveys conducted through foreign companies must be officially registered. Further discussion lobbied for the need to register foreign Prof. Dr. Schellhase Event: Market Research in China – A Challenge for German Companies Date: 13th May 2010 S p e a k e r : P r o f . D r. S c h e l l h a s e | Professor of Marketing at the Darmstadt University of Applied Sciences, Chairman of the academic advisor y board of Prof. Schellhase Consulting Ltd. www.china.ahk.de People Programs HR Roundtable Mr. Adam Livermore (left) and Mr. Michael Maeder (right) Following the successfull series of workshops about mandatory benefits and payroll processing held across China by Dezan Shira & Associates, the Beijing Chamber organised the same workshop focusing on risk and efficiency management of small and medium-sized enterprises operating in China. Michael Maeder of Direct HR presented the major challenges in the recruitment process and provided tools on how to involve compensation in the four recruitment stages: profiling, candidate identification, selection and onboarding. Adam Livermore of Dezan Shira & Associates covered the management of mandatory benefits and payroll processing. ment to a candidate who requires mandatory benefit contributions. Usually, the cap for contributions is 300% of the city’s 'average social salary,' though the system varies in each city. Also, housing fund administration is complex, so companies and employees should agree on a precise method of payment and proportions before employment. Payroll management is a concern for all companies, as ensuring that payrolls are processed correctly and efficiently is critical. Many have considered outsourcing their payroll processing due to its many benefits, including increased transparency and control, increased confidentiality of payroll information, as well as greater accuracy and efficiency. China’s mandatory benefit administration is complicated as it includes pension, medical insurance, unemployment, maternity, work injury and housing funds, all of which are dependent on local and national laws. Due to the complicated nature of these laws, companies find that outsourcing payroll management is a more efficient and accurate solution. Another important topic Mr. Livermore c o v e re d w a s t h e u s e o f s e c o n d m e n t contracts, which are contracts between employers and human resources agents who hire out employees. Compared to direct employment, secondment contracts can be worthwhile to the ultimate employer, but only if the terms of the service contract are appropriate. However, smaller companies are usually unable to negotiate favorable terms. It is important for companies in China to understand the key aspects of these contracts as some of the terms may affect your business. For example, if an employee is dismissed in the absence of misconduct evidence, the employer may be obligated to pay the employee’s salary until the end of the term (minimum two years); in cases with open-ended term agreements, that may be until retirement. Furthermore, secondment contracts should only be used for 'non-core' staff—temporary, substitute and auxiliary job positions. Lastly, the use of secondment contracts leads to high staff turnover, which can be inefficient and costly. When considering mandatory benefits, employers should check before offering employ- For SMEs it can be cheaper, more efficient and less risky to enter into direct labour contracts, while outsourcing mandatory benefit management and payroll processing to a specialist company. Event: HR Roundtable: Manage Risk and Improve Efficiency in your People Program Date: 23rd June 2010 Speakers: Adam Livermore | Regional Manager, Dalian Office - Dezan Shira & Associates | Michael Maeder | Account Manager – Direct HR Event: HR Workshops: Mandatory Benefits, Compensation and Payroll Processing Date: 1st June 2010 in Shanghai, 2nd June 2010 in Hangzhou and 3rd June 2010 in Suzhou Speakers: Mr. Adam Livermore | Payroll Department Manager, Dezan Shira & Associates; Mr. Michael Maeder | Account Manager, Direct HR Chairs: Mr. Rolf Koehler | General Manager, Freudenberg Management; Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce l Shanghai 2010 August - September 47 CHAMBER NEWS BEIJING PAGES Sustaining Shores Production and R&D Relocation What happens in China does not always stay in China – Dr. Steffen Kinkel from the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe feared no repercussions for making a point out of that. After all, his objective was to examine the underlying trends, patterns, motives and strategies of German direct investments in China in connection with production and R&D relocations, and to deliver a set of factors allowing German companies to successfully stay in China. Through economic periods of heavy swells and ebbing tides on the offshoring movement, the diametric phenomenon of backshoring remains under rug swept – but with every fourth or fifth relocation decision being fully or partially reversed within two to four years and one backshoring occuring per every five relocating companies, it is for the first time at a relevant level in connection with offshoring to China. On the map he outlined both production and R&D sustainability for success in China, Kinkel also pinpointed clear landing stages on the way: a thorough definition and execution of the strategic role and goal of the new site, the management of qualitative measures as quality standards, reliable processes, the innovation ability and the flexibility in the fulfillment of customer demands. Urging companies to seize their local sourcing potential to the fullest, he advocated in-depth knowledge of local supply chains and ongoing efforts towards the integration into local value chains. He also emphasised the development of scenarios and monitoring of early indicators in preparation for dynamic local 48 August - September 2010 changes in combination with a Plan B and Plan C if local dynamics did not turn out as expected. As a further risk management strategy, he recommended the continuous supervision and coordination of innovation and know-how protection measures. Particularly the highly relevant case of integration into local supply chains stirred the gathered expert audience representing a variety of industries. An animated discussion touched on concerns and experiences in this matter. With positive recounts of this time and cost-consuming process involving a great deal of justification, demonstration and convincing of the company home base and management in Germany, the consensus was that this path was one success factor that was essential to pursue. Old business and industry China hands perceived the skepticism, hesitation and resistance received from the German side as major stumbling blocks to their personal localisation campaigns. Dr. Ulrike Tagscherer, Associate Professor at the Chinese Academy of Sciences, offered her perspective: “The topic of production and R&D relocation is of a particularly captivating political matter as it almost automatically raises concern about job losses in Germany. Relocations abroad and specifically to China generate even more of an outcry; there is an immense fear of innovation potential and power loss in the home country. The studies we have conducted in our Institute in cooperation with the industries however statistically refute any basis for these fears – quite the contrary: the relocation of R&D activities also contributes to and strengthens home. Of course, there are always individual cases of opposing examples, but the sum of these location shifts clearly conveys an overall positive experience.” Event: Success Factors for Sustaining Production and R&D in China – Perspectives for German Companies Date: 8th June 2010 Speaker: Dr. rer. pol. Steffen Kinkel| Head of Department Industry and Services Innovations, Fraunhofer Institute for Systems and Innovation Research (ISI), Karslruhe Chair: Katja Sassi-Bucsit | Executive Chamber Manager of * GCC Beijing Hanna Böhme | Managing Director, German Centre for Industry and Trade Beijing www.china.ahk.de Hessen Meets Tianjin A New Chapter of Regional Sino-German Business Cooperation During his China visit at the end of June, Hessen State Secretary Mr. Steffen Saebisch also made a two-day stopover in Tianjin. Accompanied by a delegation of the Hessen State Ministry of Economy, Transportation and Urban Development, members of the Hessen State Parliament and a group of entrepreneurs, the delegation’s focus of attention was a trilateral agreement for the extension of the ongoing Financial Sector Development Programme between the two countries. The three parties involved were the Tianjin municipality represented by Vice Mayor Mr. Cui Jindu, the German Technical Cooperation represented by Mr. Immanuel Gebhardt, and the German Federal Ministry for Economic Cooperation and Development represented by Mr. Steffen Saebisch. The Tianjin Assembly Hall serving as the perfect backdrop for this indicatory signing ceremony, a new chapter in the already successful cooperation between Germany and China was opened. To reinforce the business relations on both sides and proactively strengthen the fruitful cooperation between Germany and China in the financial sector, the delegation further met and held talks with representatives and officials of the Tianjin Property Rights Exchange and Tianjin Innovative Finance Investment Co. Ltd. At an excursion to the Tianjin Yu Jia Pu Financial District and the Tianjin Equity Exchange, the delegation was visibly impressed by the sheer enormity of the concept and Tianjin’s ambitions to secure its spot as a major financial hub in northern China. Event: Hessen State Delegation in Tianjin Date: 9th–10th June 2010 NEW MEMBERS BEIJING & TIANJIN Mr. Changyi Zhang Chief Representative Schmitz GmbH Beijing Office ' 010 6788 - 9286 * [email protected] Mr. Bernd Siegel CFO&MD Fuchs Lubricants (Yingkou), Ltd. ' 021 3912 - 2088 * [email protected] Mr. Dong Liu CEO Toennies Food Trading (Beijing) Co., Ltd. ' 010 1391 – 0155 - 808 * [email protected] www.toennies.cn Mr. Peijian Chen President & CEO Schenck Process (Tianjin) Industrial Technology Co., Ltd. ' 010 6481 - 7880 * peijian.chen@ schenckprocess.com.cn Ms. Dongmei Chen Head of Controlling Asia Continental Automotive Corporation (LYG) CD., Ltd Changchun Branch ' 0431 8468 - 4836 * [email protected] Mr. Johannes Mueller-Diesing ChinaContact ' 010 6590 - 6912 * [email protected] www.owc.de Dr. Kirk Mildner ' 010 8527 - 5171 * [email protected] TIANJIN Mr. Thomas Nothdurft Zollern (Tianjin) Machinery Co., Ltd. ' 022 6623 - 1860 * thomas.nothdurft@ zollern.cn For full contact information and company profiles of our new and existing members please visit www.german-company-directory.com 2010 August - September 49 CHAMBER NEWS Focus On IP TIANJIN PAGES Intellectual Property Rights Seminar With regard to China’s increasing competence and relevance in R&D and Hi-Tech Industry, the global management of intellectual p ro p e r t y i s b e c o m i n g a n i n c re a s i n g concern. By implementing a professional IP management strategy, western companies can considerably improve their competitive position and reach a higher added value in the Chinese markets. also have the authority to protect the IPR of European companies by confiscating infringing goods and imposing fines on infringers. Many China-based companies are, however, not aware of this practice, and decision makers do not know how to cooperate with Chinese Customs or appropriate authorities on the protection of their IP rights. Generally and technically speaking, China’s customs regulations ban the import or export from or to China of goods that infringe Intellectual Property Rights. China Customs To provide practical answers to European SMEs the German Chamber of Commerce in Tianjin, the EU-funded China IPR SME Helpdesk and the Tianjin chapter of the The German Connection August - September 2010 Event: How to protect your intellectual property through China customs Date: 20th May 2010 Speakers: Mr. David Pho | Events and Communications Manager, China IPR SME Helpdesk; Ms. Mai Lin | Associate, Rouse LLP Shanghai German Night at Drei Kronen 1308 Bierhaus The General Managers of German companies, business corporations and organisations in Tianjin are already familiar with each other – however the staff from one company are typically unfamiliar with their counterparts at other companies doing business in the same industry sector. Therefore German Chamber in Tianjin brought together HR, Sales, Project Managers and Assistants from all over the Beijing-Tianjin region to join in a social evening with German food and beer. 50 European Union Chamber of Commerce invited China Customs experts to meet and discuss the topic based on real-life cases. A programme including live music, lucky draw and lots of giveaways and the tranquil atmosphere of the Drei Kronen Biergarten along the Haihe-River contributed to making a truly great evening. Event: German Night at Drei Kronen Tianjin - Networking Abend im Biergarten Date: 18th May 2010 www.china.ahk.de 2010 August - September 51 CHAMBER NEWS BEIJING AROUND TOWN Networking Two Inter-Chamber networking events provided a good reason to connect before the summer holidays – while the weather did not honour what was supposed to be a ‘Summer’ Networking Evening and the event had to be relocated inside the Swissôtel Atrium, the sky was the limit and a rolling green lawn set the stage at the subsequent European Networking Night. The elegant Purple Jade Country Club provided a charming atmosphere for a leisurely gettogether on a warm summer night that left most wondering, “Are you sure this is Beijing and not New York or St. Tropez?” 52 August - September 2010 TIANJIN AROUND TOWN www.china.ahk.de JOOP! Living Prêt–à–habiter: JOOP! Living Store Opening at Easy Home Mall on 21st May with Kristian Markus, CEO of JOOP! Living, and Pierre Tsalkas of Hüpeden & Co. KG, Hamburg. World Cup Excitement This is a tribute to the loyal, hard-working AHK Football Fan Team – no efforts or consequences deterred the loyal supporters of Jogi Löw’s army, even at 2.30 am on a workday. © J. Michel Byrne 2010 August - September 53 CHAMBER NEWS SHANGHAI PAGES GCC BOARD Lufthansa German Airlines Managing Director Greater China Post Crisis China Analysis GC Roundtable Mr. Arved von zur Mühlen* Chairman SGL Carbon Far East Ltd. Managing Director Dr. Günter Hermann Vice Chairman Deutsche Bank (China) Co., Ltd. Director – Head of Corporate Banking and Coverage, MNC Mr. Andreas Odrian Treasurer German Chamber Shanghai Executive Director Delegation of German Industry & Commerce Shanghai Delegate & Chief Representative Mr. Manfred Rothgänger* Ernst & Young (China) Advisory Ltd. Partner and Head of GBC China Mr. Titus Freiherr von dem Bongart ProConTra Ltd. Chairman & Managing Director Mr. Thomas Dorn Nokia Siemens Networks (Shanghai) Ltd. President & CEO SHANGHAI Dr. Fan Zhijian POLYMAX (Shanghai) Trading Co., Ltd. Chairman of the Board Mr. Ulrich Mäder Management Engineers China Ltd. Managing Director Ms. Brigitte Wolff * All-China Board member 54 August - September 2010 From left: Mr. Frank Hollmann, Prof. Rolf Cremer, Mr. Ulrich Mäder, Mr. Jochen Homann and Mr. Manfred Rothgänger On the occasion of the visit of former German Prime Minister Horst Köhler to Shanghai, his economic delegation joined the German Chamber Roundtable in May to discuss recent issues of economic policies. German managers working in China exchanged their views with the delegation, who are also involved in foreign trade issues in Berlin. Secretary of State Mr. Jochen Homann provided insights into the delegation’s China visit as well as hot topics in Berlin. Focusing on consequences of the economic crisis, Mr. Homann relayed some preventative measures and elaborated on China’s role in relation to Germany and the world. During the crisis, China revealed itself as one of the strongest nations that will undoubtedly continue further growth in the future. In the mean time, the German government has enhanced talks on intensifying co-operations with the Chinese economy. Although recent developments, especially regarding the unemployment rate, have been quite positive, Mr. Homann still sees a lot of macro-economic risks. For example, there is a concern of increasing debt-burden of European countries. However, further analytical exploration of the situation is inevitable and required to develop future contingency plans. Mr. Homann sees a gap between some managerial and company risks and liabilities, which has lead to extreme excesses in the markets. Causes of the crisis, reactive measures and the recent Euro-depreciation were also discussed, yet opportunities of the Chinese markets were of central interest. The consensus was that there is great potential in the Chinese market, but also tough competition with local players. Chinese innovation, how- ever, is a potential threat to Germany as an innovation centre. China’s development has two vital tendencies: sustainable resources and energy management in booming cities. There may be great opportunities for German companies in these fields since they are well known for high-tech expertise, but the development of Chinese companies and solutions is also accelerating. Prof. Rolf Cremer contributes to the discussion Speaker Mr. Jochen Homann Event: GC Roundtable Date: 20th May 2010 Speaker: Mr. Jochen Homann | State Secretary, Federal Ministry of Economics and Technology Moderator: Mr. Frank Hollmann | China Correspondent Chair: Mr. Manfred Rothgänger | Delegate & Chief Representative, Delegation of German Industry and Commerce in Shanghai www.china.ahk.de Liability Risks for Decision Hangzhou Special Makers The Hangzhou Special in May had a specific focus on similarities and differences in management and supervision structures in Wholly Foreign Owned Enterprises (WFOEs) and Joint Ventures (JVs) in China. Attorney at Law, Mr. Philipp Senff of SJ Berwin LLP Shanghai, came to speak to this occasion. His presentation began by defining roles of key decision makers in a company such as the General Manager and Board of Directors and then covered the terms and situations in which each party may be held accountable. Some organisational aspects of companies can have an impact on the person’s liability for legal breaches. For example, a WFOE is the sole type of organisation with a Board of Shareholders (BoS) as the highest decision making body. Some examples of the power of the BoS include the appointment of the Members of the Board of Directors (BoD) and Board of Supervisors, the approval of reports of the BoD, the approval of the company’s proposed annual financial budgets and final accounts and the change of legal documentation. Contrary to the WFOE structure, an Equity Joint Venture (EJV)/ Cooperative Joint Venture (CJV) has a BoD that is appointed by its shareholders and acts as the highest decision making body of a Research Joint Venture (RJV)/CJV. A main task of the BoD in this structure is to issue resolutions, which are then executed by the General Manager. Articles of Association may specify the power of the BoD in both legal forms. In the second part of his presentation, Mr. Senff focused on the obligations of management and the Board of Directors, stating that the main problem in China is that general obligations and compliance with PRC laws are often situated in a grey area and uphold a lack of transparency. A difference between liability risks under company law, administrative liability risks under civil law and liability risks under criminal law must be distinguished. The legal basis for these risks can be found under article 149, 150 and 153 of the PRC Company Law, which states that all BoD members and Senior Officers are liable in these cases. The main requirements for a liability case are a breach of duty through the violation of PRC law, administrative regulations, or Article of Association. The main requirements for administrative liabilities are illegal activities of the legal representative, such as the conduct of business beyond business scope, fraud against authority or unauthorised withdrawing of funds from the company. The legal consequences depend on the form of liabilities and can be an admonition, fine, confiscation of property or custody up to 15 days. Event: Liability risks of the management and the Board of Directors in China Date: 11th May 2010 Speaker: Mr. Philipp Senff | German Attorney at Law, SJ Berwin LLP Shanghai Chair: Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce in China l Shanghai Enviro-Techno Trade Fair econet china participates in IFAT CHINA + EPTEE + CWS 2010 Dr. Fritz Holzwarth, Deputy Director General for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety speaking at the ‘Energy Efficiency in Water Supply and Wastewater Treatment’ workshop at the IFAT CHINA + EPTEE + CWS 2010 Germany was well represented at the International Trade Fair for Water, Sewage, Refuse, Recycling and Natural Energy Resources (IFAT CHINA + EPTEE + CWS 2010), as the only non-Asian country of the top five visitor regions among 84 other nations. Messe München International (MMI), the organiser of IFAT CHINA, and Shanghai ZM International Exhibition Co. Ltd, the organiser of China EPTEE + CWS, are credited for this astounding collaboration that yielded the biggest environmental technology trade fair in Shanghai. IFAT CHINA’s prominent international profile and EPTEE + CWS’ domestic importance complimented each other as 7,000 guests attended the event and took part in the many prestigious workshops, conferences and exhibitions that were featured. There was a strong demand for exhibition space at the event, yet all 839 participating companies managed to comfortably establish their presence in the Shanghai New International Expo Centre (SNIEC) – including a booth from the German Chamber’s econet department that attracted a steady flow of inquisitive visitors over the three days. The German Chamber’s econet also participated in a workshop to elaborate on possible measures for realising higher energy efficiency standards in China's water supply and waste water sector, titled ‘Energy Efficiency in Water Supply and Wastewater Treatment’. The workshop was organised by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety and featured presentations by several influential company representatives in the respective industry. During the workshop experts from Germany and China offered a firsthand look at state of the art energy-saving technologies in waste water treatment and water supply, while giving practical examples from Germany and China and drawing comparisons between the two countries. Specific key technologies like cuttingedge aeration control systems were also introduced, and their potentials and lifecycle costs were analysed. Event: IFAT CHINA + EPTEE + CWS 2010 Date: 5th-7th May 2010 2010 August - September 55 CHAMBER NEWS SHANGHAI PAGES A Bridge to China Dinner with the Delegation of Atlantik-Brücke The Board of the German Chamber of Commerce in Shanghai recently welcomed a delegation of 20 members from Atlantik-Brücke (Atlantic Bridge), a transatlantic institution established from decision makers of various fields as well as high ranking politicians. Former Finance Minister of Lower Saxony, Dr. Walther Leisler Kiep, who is also the Honorary Chairman and Chairman Emeritus of Atlantik-Brücke, led the delegation on its twelfth trip to China. Due to the diversity of the participants the evening brought forth a very lively discussion between the Chamber Board and the delegation members. Focus was put on the further development of German companies in China as well as what China already means to the world. Dr. Leisler Kiep remarked that each trip of Atlantik-Brücke to China is different since the country changes and develops so quickly. Atlantik-Brücke is located in Germany and mainly aims to promote a better cultural understanding between Germany and the USA. Next to the organisation of seminars, conferences and others, Atlantik-Brücke also conducts several study trips to other countries, guided by its Executive Vice-Chairman Dr. Beate Lindemann. Delegation members and guests Event: Dinner Reception Date: 17th May 2010 Speaker: Dr. Walther Leisler Kiep | Honorary Chairman and Chairman Emeritus, AtlantikBrücke e.V. Dr. Leisler Kiep Better Communication, More Sales Kunshan Roundtable During the latest Kunshan Roundtable participants talked about the topic ‘Communication with Headquarters in Germany’. The discussion concluded that in most cases a company’s global sales strategy lacks the integration of Chinese market knowledge, which is a result of insufficient and poor communication between colleagues located at the headquarters and those based in China. The participants pointed out that an adaptation of global sales strategies to the local demands would bring forth a profound successful strategy, more achievable goals and higher sale revenues. Further conversation steered towards strategy planning and it was noted that headquarters are often more lenient when the results are achieved. However, each experience deviates from one another. Companies that are in hand with Private Equity Societies require more complex reporting and attendants deemed that further alignment with headquarters must be developed in this respect. This may assist with comparative analysis of company figures to help determine the strong points and areas of improvement for each company. 56 August - September 2010 Chair: Mr. Arved von zur Mühlen, Chairman of the German Chamber of Commerce in China l Shanghai Joint Chamber Trade Fair The pursuit of one common goal enables parties to be formed, therefore the highest priority in this respect is to make the problem transparent and assign tasks to a group so it may be relieved. A candid relationship with the German colleagues at headquarters must serve as the foundation for this consolidation. Over 50 companies from different industries seized the opportunity to present themselves to spectators at the Joint Chamber Trade Fair held at the Shanghai Centre on 24th May 2010. The German Chamber of Commerce in Shanghai along with six other chambers from different European countries organised this special exhibition together. Participants also mentioned that it is vital to develop recognition of informal networks within the principal firm, as important decisions are often collectively made. Each case is dependent on the persons involved, but will progress through honest and direct communication. The idea behind it was that members of each chamber and other participants had the chance to meet each other during one day. Hence personal conversations and networking opportunities took place to deepen existing relationships and create new ties. The German Chamber is already looking forward to the next Joint Chamber Trade Fair with prospects of making it even more exciting and rewarding for both exhibitors and guests. Event: Kunshan Roundtable Date: 25th May 2010 Chair: Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce in China l Shanghai Event: Joint Chamber Trade Fair Date: 24th May 2010 Germany’s Image Workshop Construction The AHK had the honour to welcome renowned Professor Albert Speer as the speaker of the construction workshop held in front of a crowded audience in its premises in late May. The focus of his presentation was Shanghai and the World Expo, both of which Prof. Speer approached with familiarity and confidence. Being involved in preparations of the 2000 World Expo in Hannover, he was able to consult with the frequent Chinese visitors who sought his assistance with planning the 2010 World Expo in Shanghai. Professor Speer informed the listeners that the Shanghai World Expo was originally to be held in the outskirts of the city to prevent impact on existing development, but further consultation determined that it was much better to have the grounds in Pudong’s High Technology Park. This resulted in its transformation from an old run-down part of Shanghai into a dense and sustainable urban development that will last for centuries. Prof. Speer observed during his recent visit to the Expo that China’s great improvement in design is shown through its gardens and trees, the new Bund and the auto tunnel, noting that the quality of design in these areas are of world class. Then speaking of the German side of construction, he said there are chances and risks for companies in all fields, but Germans around the world have a positive image in many aspects: they are reliable, technology savvy and relatively easy to work with. These aspects should be used as a resource, but mostly Germans are not using them to their advantage. They are not doing enough to concentrate their efforts and political separations, which is a large contributor to the problem. As a final Expo remark, Prof. Speer mentioned that the Urban Planet was also German-made to a large extent and encouraged the participants to visit the site to see what has already been done and what will be done. The project is a product of German firms, sponsors, and knowledge and is truly something to be proud of. He also spoke about two large scale multi-function sustainable construction initiatives that were not realised because of technical, legal, and distribution differences. This lead to his concern of cooperation between companies that are attempting to realise a multi-function project, but fail to succeed due to an inability to work together. The discussion then turned to a focus on the new DGNB (German Sustainable Building Council), and Prof. Speer expressed that the current US counterpart, LEED (Leadership in Energy and Environmental Design), is lacking the sophistication to cover all areas of sustainable development. However, LEED has now been functioning worldwide for 20 years while Germany has been working for 20 years to develop a system too. It is now so complex that no one is adopting it except for a few business buildings. Yet, even though it is too complicated to be implemented in China, it should still have long-term benefits. Event: Germany’s Position for Sustainable Solutions in China Date: 25th May 2010 Speaker: Prof. Albert Speer | Albert Speer & Partner GmbH (AS&P) Chair: Ms. Magali Menant | Head of Department Building, Energy and Environment, econet china 2010 August - September 57 CHAMBER NEWS SHANGHAI PAGES Germany and China – Moving ahead together Chamber Meeting May At the May Chamber Meeting Dr. Wolfgang Roehr, Director of the task force ‘Germany and China’ at the German Foreign Office, presented the project ‘Germany and China – Moving ahead together’, an initiative by the Foreign Office in cooperation with the Goethe Institute, the AsiaPacific Committee of German Business and the Marketing für Deutschland GmbH, along with support from Allianz, BASF, Daimler, Deutsche Bank, DHL and Siemens. The project was held under the joint patronage of Germany’s former Federal President Horst Köhler and China’s President Hu Jintao. Dr. Roehr indulged the attendees with the project's aspirations, accomplishments and future implications of this three-year event series. With the goal of using mutual understanding as a tool for successful Sino-German cooperation, Dr. Roehr explained how the extensive event series has also helped to strengthen the image of Germany as a future-oriented, innovative country. His mesmerizing speech led to a very lively discussion between Dr. Roehr and the audience. The central theme of the three-year event was sustainable urbanisation, especially for China considering its rapid development instigates major social, economic, environmental and cultural challenges. Therefore the project required a broad time frame to allow more than 600 events to take place in various regions and cities across China. Are You Covered? Expatriates who plan to stay on a long-term basis in China should think about being adequately insured. Dipl.-Kfm. Werner John of Expatriates Insurance Consulting came to elaborate on Insurance for Expats during a two-day event series in Shanghai and Suzhou to the avail of a great number of participants. Most expats have little or no knowledge of insurance coverage in countries they are sent to. The company’s headquarters in Germany often dismisses to conduct or provide a necessary risk assessment to its employee prior to his/her assignment abroad. This leaves room for vulnerability due to negligence and helplessness. During the seminar, Mr. John gave the participants useful advice about social insurance security, health insurance, longterm care insurance, employer ’s mutual insurance associations, accident insurance and disability coverage. One of the main issues discussed was how to minimise the risk of incurring medical expenses by carefully 58 August - September 2010 Dr. Wolfgang Roehr Event: Chamber Meeting Date: 25th May 2010 Speaker: Dr. Wolfgang Roehr, Director of the task force ‘Germany and China’ at the German Foreign Office Dr. Thomas Awe, Konrad-Adenauer-Stiftung Chair: Mr. Arved von zur Mühlen Managing Director Greater China Lufthansa German Airlines, Chairman of the Board German Chamber of Commerce China l Shanghai Insurance Seminar reading policy information. Certain specifics to watch for in a health insurance policy are the coverage of return transport to Germany in urgent cases, accident coverage for the employee and family members. Furthermore there are differences between an expatriate contract, which requires the employee to contribute to social insurance in Germany, and a local contract where adequate private insurance is needed. In general, it is advisable for expats who are working in China to have foreign health insurance, a contingent right of the German health insurance and nursing insurance, accident coverage and disability insurance. In addition, Mr. John advises to have a good retirement provision, casualty insurance and good provision for dependants if necessary. Legal protection insurance and household insurance are less important in China. Mr. John has been an insurance agent since 1975 and has over 20 years of China experience. He has profound experience in assisting companies, individuals and other organisations such as the German Chamber of Commerce in China. Mr. John is willing to support anyone in need of proper insurance and can consult explicitly in regards to closing insurance contracts, risks, and specifics for your livelihood in China. Event: Special Seminar: Insurance Coverage for Expats in China Date: 9th June 2010 in Shanghai and 10th June 2010 in Suzhou Speaker: Dipl.-Kfm. Werner John | Senior Consultant, Expatriates Insurance Consulting Chairs: Mr. Jan Hoepper | Regional Manager Shanghai, German Chamber of Commerce in China l Shanghai and Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce in China l Shanghai www.china.ahk.de Taicang-Germany Gathering in Düsseldorf Following Taicang Day 2008 in Stuttgart and Taicang Day 2009 in Munich, Düsseldorf, the capital of the State of North RhineWestphalia (NRW) graciously hosted the third visit from Germany’s overseas thriving business partners in China. Around 100 guests from political and economic backgrounds participated in the event including Mr. Lu Liusheng, Vice Mayor of Taicang City. At the seminar, Mr. Lu Liusheng made a brief introduction concerning the up-to-date economic, social and investment environment in Taicang. Mr. Manfred Rothgänger, Chief Representative Delegation of German Industry & Commerce Shanghai also delivered a speech regarding the stable and steady development of German enterprises in Taicang and important economic and training programmes taking place. In November 2008, Taicang was designated as ‘Sino-German Enterprises Cooperation hub’ by the Chinese Ministry of Commerce and German Ministery of Economy and Technology. With numbers continually rising, more than 140 German companies have already settled down in Taicang. The event was considered an overall success as many enterprises expressed interest in visiting Taicang and investigating the investment conditions of the socalled hometown of Event: Taicang-Tag 2010 in Düsseldorf German Enterprises in China next to Date: 27th May 2010 Shanghai. Breakfast Seminar Workshop Automotive Mr. Hans-Georg Härter, CEO of ZF Friedrichshafen AG, spoke about the critical phases in the automotive industry during and after the economic crisis. Providing in-depth insight into his company’s fortunes during the critical times, the speaker identified an emergence of unforeseen challenges that the company has overcome. Today, Europe and the U.S. have not fully recovered from the crisis, but the Asia-Pacific region is heading to ward new peaks. China has especially shown immense growth in the past years and according to Mr. Härter the nation’s automobile market is on its way to becoming the greatest in the world. Confidence remains in the eventual recovery of other macroeconomic markets as well, but companies that have taken preventative measures from the beginning, particularly in relation to liquidity and a flexible employee structure, were equipped to cope with risks and challenges. As one of such, Mr. Härter sees his company even stronger today and wellpositioned for future growth as the world economy recovers. Event: Breakfast Seminar: Workshop Automotive Date: 11th June 2010 Speaker: Mr. Hans-Georg Härter | CEO ZF Friedrichshafen AG Chair: Dr. Marcus Hoffmann | Principal, Roland Berger Strategy Consultants (Shanghai) 2010 August - September 59 CHAMBER NEWS SHANGHAI PAGES China through the Lens of German Media Chamber Meeting June The guest speakers receive gifts from Mr. Arved von zur Mühlen Farewell to Dr. Albrecht von der Heyden and his wife German reports are known to pessimistically showcase economic and social activities in China. Although it is debatable whether good or bad news is more captivating for viewers, some Chinese attribute singlesided arguments and an ‘Anti-ChineseAlliance’ to the German and other western media channels. However, what they may not realise is that such negative reports are equally, if not more, harmful to German businessmen in China whose hometown stakeholders turn to local media for up-todate information. To delve deeper into the topic, several well-known journalists from German tier media came to share insights from their experiences. Furthermore, they elaborated on issues regarding topics of interests to their editorial offices in Germany, whether Chinese allegations of negative media portrayal are true or hypercritical and what the German journalists think about these impressions. It resulted in a lively discussion between the speakers and the audience, which disclosed that most assumptions of German reporting are misleading and untrue. During the Chamber Meeting the General Consul of German Consulate in Shanghai Dr. Albrecht von der Heyden and his wife bid all a farewell as they soon plan to leave Shanghai. Both thanked the German Chamber of Commerce and its members for the great times shared together. Dr. Frédéric Jörgens, Consul at the German Consulate Shanghai, then seized the opportunity to present the running campaign titled ‘A Piece of Germany’, targeted at identifying Germany’s ubiquitous presence at the 2010 World Expo as well as at various companies and locations. The stickers are distributed free of charge at the German Consulate and the German Chamber of Commerce in Shanghai. Mr. Thomas Dorn holding the campaign sticker for ‘A Piece of Germany’ Event: Chamber Meeting Date: 24th June 2010 Speakers: Ms. Johnny Erling | Die Welt, Peking; Dr. Astrid Freyeisen | ARDHörfunk, Shanghai; Mr. Matthias Kamp | Wirtschaftswoche, Peking; Mr. Janis Vougioukas | Stern, Shanghai Chair: Mr. Ar ved von zur Mühlen | Managing Director Greater China Lufthansa German Airlines, Chairman of the Board German Chamber of Commerce China l Shanghai; Mr. Frank Hollmann | Mainpost, Shanghai Sustaining Production and R&D in China – German Company Perspectives Special Seminar In cooperation with the Fraunhofer Institute for Systems and Innovation Research (ISI) the German Chamber of Commerce held a special seminar on China’s potential as a R&D location for German companies. Professor Kinkel, Head of Department Industry and Service Innovations, presented a survey recently conducted by his department. Speaker Dr. rer. pol. Steffen Kinkel 60 The survey interviewed various Ger- August - September 2010 man company headquarters regarding their activities and business plans in China. Its findings highlighted that the number of German companies relocating to China has grown steadily, but that there is also a noticeable amount of companies doing backshoring. Labour costs and market access are usually drivers for going to China; however, lack of quality and qualified personnel are often reasons for returning back to Germany. When looking at the production facilities of German companies, R&D activities in China are relatively low. According to the speaker, this is due to several influences: high investments are necessary, but risky; fear of insufficient IPprotection lingers; political disputes in the home country are resource intensive; and more attractive R&D locations exist in eastern Europe. Still, the speaker sees a potential increase of R&D activities in the future for China once the world economic crisis is overcome. In order to succeed with these activities, companies must make use of the local supply chain and impose a rigid intellectual property protection plan. Event: Special Seminar: Success factors for sustaining production and R&D in China – perspectives for German companies Date: 10th June 2010 Speaker: Dr. rer. pol. Steffen Kinkel Fraunhofer Institute for Systems and Innovation Research (ISI), Head of Department, Industry and Service Innovations Chair: Mr. Kurt Fasser | Senior Advisor, AHK Shanghai; General Manager, CON MOTO Consulting Group Shanghai Office www.china.ahk.de Risk behind the Growth Suzhou Special In his presentation Mr. Benjamin Ganat, Deputy Regional Manager Greater China at Coface Holding, a French company that provides worldwide credit insurance and credit management services, focused on the fifth credit crisis in 2009. Most emerging countries were able make it through the crisis and the BRIC States still show high growth, however industrialised countries experienced many consequences such as economic stagnancy and unemployment. In China, risk assessment is a central issue. Through statistics generated by Coface, Mr. Gan illustrated the major economic indicators in China that allowed the company to deduct various risk assessments. The first assessment showed resilience in 2009, thanks to the economic stimulus programme with a rebound expected in 2010. About 60% of respondents agreed that the government’s stimulus package has effectively helped their businesses. The top five sectors reported to have benefited from the government’s stimulus package include household electrics, construction, steel & metal, transportation and agriculture. The second assessment states that there is a risk of overcapacity and default within 2010. High-risk industries such as steel, construction, textiles and toys show a persistent weakness. The third assessment shows a strong financial position in China because of its current high account surplus and foreign exchange reserve. However, the banking risk remains high due to the expansion of credit that has accelerated significantly in 2009. The fourth risk assessment indicates that there are deficiencies in China’s business environment. The gap between rural and urban areas is growing, environmental problems emerge and there are quick and unexpected changes in regulations as well as a weakness in the financial and legal environment. contributing factors to this change. As a general view, more than 60% of respondents believe that the default situation of payment will improve by the end of 2010. Event: Suzhou Special: Corporate Payment Behaviour in China in 2009 Date: 26th May 2010 Speaker: Mr. Benjamin Gan | Deputy Regional Manager Greater China, Coface Chair: Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce in China l Shanghai A survey from 2009 containing information on the nature of interviewed companies’ business activities and their region as a whole was then introduced to help explain the status of corporate credit risk management in China. After that Mr. Gan mentioned the corporate credit management practices such as procedures, difficulties, high risk companies and responsible departments. He further showed a general analysis of China, which highlighted the potentially strong sectors for 2010 and others that should be closely watched. Potentially Strong Sectors in 2010: l Chemicals l Industrial machinery & electronics sector l Household electric/electronic appliances sector l Construction l Telecommunications l Pharmaceuticals Potentially Weak Sectors in 2010: Textile & Garment l Paper & printing l Steel & metals sector l The speaker’s main conclusion suggested that credit sales are becoming more and more popular in China and there is yet further opportunity for growth. The crisis in 2009 pursued less aggressive strategies in business; however, among offered credit sales, 56% more companies offered credit terms that were longer than 90 days in 2009, especially in comparison to 2008. Securing existing market shares and enhancing existing customer relationships are the main 2010 August - September 61 CHAMBER NEWS SHANGHAI PAGES Hiring and Retaining the Right Employees Taicang Workshop Foreign companies also tend to attract jobhoppers and people who are looking to build their resume. Therefore, an individual’s personality and loyalty must be a top condition for hiring. It takes a lot of effort to find the most suitable person, but this is the stage that is most important for determining whether the selected employees will remain in the company or not. Asia-Pacific Management Consulting, headquartered in Dusseldorf, has helped around 300 German companies (95% of their clientele, the other 5% being Austrian and Swiss) to develop and carry out strategic plans for staff retention in a work environment with high turnover like in China. Dr. Lin, President of the company, explained that Asia-Pacific Management Consulting currently generates around half of its revenue from China operations, where demands for recruitment services seem relatively high. He explained that recruiting quality staff is difficult, but keeping them is even harder. Companies often absorb heavy costs related to flights and training, but after the first year, around 14% of staff leave the company. Three years down the road, the typical Chinese office has only retained 10% of its acquired staff. Using a case study example, Dr. Lin explained how one company effectively amended its staff retention rate from 40% to 0% for 8 years. This operation was undoubtedly expensive as it required the proper incentives; therefore, he more often recommends altering the company’s staff retention rate by about 3-5%. According to current studies, one-third of staff leave their company due to insufficient pay. Not getting along with the supervisor or manager makes up another third of unsatisfied staff, and a displeasing work environment drives away the other third. More specific reasons include lack of teambuilding, lack of training, non-transparent company info/rules/policies, the location is too far from home, there is a better chance 62 August - September 2010 for career development elsewhere, insufficient contract renewals, not enough support from Germany, or their skill sets are better suited to another job. A lack of direct contact with management, or not seeing eye-to-eye with the CFO, HR manager, or GM assistant (GM right-hand-man/administrative person) were also repeatedly stated reasons. The hiring process is the next important step to ensure the employee will be retained. A company must compare with how competitors are handling bonuses, overtime and travel costs. This can make a big difference when compared to a regular salary. Employees should know exactly what they are making so they never have to wonder or question. At the end of the presentation, the speaker summarised his key messages and suggested a possible generic retention program. Most Chinese will not say why they are leaving a company because they do not want disharmony or to hinder their chance of returning to the company if needed. Therefore exit interviews are insufficient tools in determine the cause for their departure. Anonymous interviews with sincere interviewers can get more information. It’s important to talk to current and former employees. There should not be any conflicts of interest to the interviewee. One issue with having a staffing agency hire your employees is they will often find the person with the best education and background for the job. However, Dr. Lin’s strategy is not to hire graduates of well-known universities because the candidate will eventually want to move on to bigger companies. The HR department or recruitment staff must find a balance between skills, education and qualifications in order to retain the employee. Also, unstable personal circumstances contribute to retention rates, especially for those who live far away. Although the distance between one’s home and workplace may seem relatively close, factors such as increasing traffic can dramatically affect commute times and lead to dissatisfaction. Any miss-match between the employee and the company will never last and the best candidate is always the one most suited to the corporate culture. Dr. rer. pol. K.-H. Lin E v e n t : Ta i c a n g Wo r k s h o p : H u m a n Resources – How to make sure your best talents and employees will stay at your company Date: 11th June 2010 Speaker: Dr. rer. pol. K.-H. Lin | President of Asia-Pacific Management Consulting GmbH in Dusseldorf, Germany Chair: Mr. Sebastian Wegener | Regional Manager Jiangsu & Zhejiang Province, German Chamber of Commerce in China l Shanghai www.china.ahk.de Legal Entity Consolidation Participants of the TFL workshop came to witness a special presentation where Dr. Matthias Hoehne, Director M&A Project at Bayer MaterialScience in China, shared his experience in merging four legal entities into Bayer MaterialScience. The speaker first provided background of Bayer ’s development and production line in China, from its market entrance in 2001 up to the merger in 2010. He then examined the planning and strategy of the merger, with the goal of having Bayer MaterialScience as a solitary legal entity. To assist with the legal process, Bayer used a strategy of absorption rather than asset transfers. As a result, the merger became effective when the business license was issued to Bayer, at which point all assets, liabilities, contractual obligations, etc. of the ceding entities were assumed by Bayer MaterialScience. For the government approval – which is always a hot topic – Dr. Hoehne saw lobbying as a key driver to the merger ’s success. Effective lobbying was dependent on honest and consistent communication, looking for win-win solutions and persistence. Another success driver was the on-going preparation of required documents. When preparing for an official approval of a merger, one should get as much input as possible and continuously check that all required documents are provided. Indirect factors, such as the company reputation and future development potential, also played a role in the government approval process. When cooperating with Chinese authorities, the speaker identified compliance, integration and long-term sustainable orientation as key drivers. Due to the complexity of this merger, it was essential to have an on-going and trustworthy government relationship Workshop Tax, Finance and Law – meaning the company’s objectives and priorities had to be openly discussed with the respective authorities. Consequently, Dr. Hoehne advises to differentiate between objectives, priorities, critical factors and ‘niceto-haves’ internally, before speaking with the government. The practical concept behind Bayer’s merger relied on the Project Management Office (PMO) working full-time and reporting directly to the steering committee. A core team composed of all functional department heads also met with the PMO on a bi-weekly basis to discuss the project’s progress. Risk management also proved to be one of the most challenging and important steps in the merger process. In Bayer ’s case, the PMO identified potential risks, quantified them and formulated suitable responses. It is inevitable for risks to change; therefore they must be constantly monitored and accordingly adjusted. A solid risk analysis enables the company to focus on the most important risks and be more conscious of potential costs and scheduling. Following the preparation comes merger execution. Having prepared every step upfront, the involved team knew exactly what to do when the government issued the business license for the merger. In the end Dr. Hoehne gives a summary about the lessons learned, differentiating between internal and external success factors. A combination of project leadership a n d e x p e r t i s e f ro m e a c h f u n c t i o n a l department paved the way to internal success during the merger.The question and answer period yielded an elaborate discussion regarding how to go about working with government authorities and other specifics of Dr. Hoehne’s experience during the merger. Dr. Matthias Hoehne Event: Practical Aspects and Lessons learnt from BayerMaterialScience Legal Entity Consolidation Project Date: 31st May 2010 Speaker: Dr. Matthias Hoehne | Bayer MaterialScience Legal Entity Consolidation Project, Director Chair: Mr. Titus von dem Bongart | Ernst & Young, Partner 2010 August - September 63 CHAMBER NEWS SHANGHAI NEW MEMBERS NEW MEMBERS For full contact information and company profiles of our new and existing members please visit www.german-company-directory.com SHANGHAI Mr. Hartmut Ade Global Director Asia SAR Automation (Shanghai) Co. Ltd. Shanghai ' 021 6448-0576 * [email protected] www.sar.biz Mr. Bao Runjie General Manager RENNER Electronic & Equipment Co. Ltd. Shanghai ' 021 5289-6230 * [email protected] www.renner.com.cn Ms. Marianne Burghardt General Manager Schletter (Shanghai) Solar Technology Co. Ltd. Shanghai ' 139 1617-7604 * [email protected] www.schletter.cn Mr. Gabriel Carrier-Walker Business Development Manager / Project Manager Century 3 (Shanghai) Inc. | Shanghai ' 021 5216-2266 * [email protected] www.century3inc.com Ms. Wynonna Chen General Manager SAR Automation (Shanghai) Co. Ltd. Shanghai ' 021 6448-0576 * [email protected] www.sar.biz Mr. Toni Egger Executive vice President Asia TRUMPF Medical Systems Ltd. Shanghai Representative Office | Shanghai ' 021 6171-9172 * [email protected] www.trumpf-med.com Mr. Philipp Ewald Shanghai ' 021 5050-4567 * [email protected] www.stregis.com/shanghai Dr. Anthony Fan General Manager MAHLE Industrial Filter Systems (Shanghai) Co. Ltd. | Shanghai ' 021 5136-0623 * [email protected] www.mahle-industriefiltration.com Mr. Thomas Fuhrmann General Manager TUV Rheinland / CCIC (Qingdao) Co. Ltd. Qingdao, Shangdong ' 0532 8870-6655 ext. 150 * [email protected] Mr. Thomas Fulde Shanghai ' 139 1818-2195 * [email protected] Mr. Larry Gao General Manager Messer Cutting Systems (China) Ltd. Kunshan, Jiangsu ' 0512 5731-4949 * [email protected] www.messer-kunshan.com.cn 64 August - September 2010 Ms. Marion Geray Managing Director Technical Talents Ltd. | Shanghai ' 021 6806-8460 * [email protected] www.technicaltalents.de Mr. GONG Jian General Manager Endress+Hauser (Suzhou) Automation Instrumentation Co. Ltd. Suzhou, Jiangsu ' 0512 6258-9638 * [email protected] Dr. GOU Jianhui Managing Director of Schaeffler Group Greater China Schaeffler Trading (Shanghai) Co. Ltd. Shanghai ' 021 3957-6500 Schaeffler (China) Co. Ltd. Taicang ' 0512 5395-8000 / 7700 * [email protected] www.schaeffler.cn Mr. Peter Hoecklin President TRUMPF (China) Co. Ltd. Shanghai Branch Shanghai ' 021 6171-9000 * [email protected] www.trumpf.com Ms. HUANG Haibin General Manager Hohenstein Textile Consulting (Shanghai) Ltd. Shanghai ' 021 5237-1440 / 1442 * [email protected] www.hohenstein.cn Ms. Julia Kornacker Dortmund, Germany ' 0049 172 463-3733 * [email protected] Mr. Christian Lang Head of Service China Bombardier Railway Transportation Equipment (Shanghai) Co. Ltd. Shanghai ' 021 6160-1500 * christian.lang@ de.transport.bombardier.com www.bombardier.com Ms. Elena Lange General Manager SUN FORTUNE LIMITED Suzhou Representative Office Suzhou, Jiangsu ' 0512 6936-5969 * [email protected] www.nkd.com Mr. Matthias Lind Chairman Lind Food (Shanghai) Co. Ltd. Shanghai ' 021 6377-3166 * [email protected] www.lind.com.cn Mr. LIU Bin General Manager Bosig GmbH (Shanghai) Shanghai ' 021 5032-1536 / 1953 * [email protected] www.bosig.cn Mr. Andreas Loh General Manager DEKRA WIT (Hangzhou) Certification Co. Ltd. Hangzhou, Zhejiang ' 0571 8771-1500 * [email protected] www.dekra-wit.com Mr. Matthias Looks Shanghai ' 021 5882-2282 * [email protected] Mr. Michael Maeder Key Account Manager Direct HR Shanghai Shanghai ' 021 5090-3649 * [email protected] www.directhr.cn Mr. Tom Meyer General Manager Suzhou Lauterbach Technologies Co. Ltd. Suzhou, Jiangsu ' 0512 6265-8030 * [email protected] www.lauterbach.com Ms. Stubbe Anja Noemi Executive Director Unite (Shanghai) Co. Ltd. Shanghai ' 021 5133-0201 * [email protected] www.unite-sh.com Mr. Henry Pan Director Shanghai HangXin Real Estate Co. Ltd. (Singapore) Shanghai ' 021 5410-7077 * [email protected] www.xuhuiyuan.com Mr. Michael Qian CEO Tube Energy-saving Technology (Shanghai) Co. Ltd. Shanghai ' 021 3350-8666 * [email protected] www.tube-clima.com Mr. Jonathan Qu General Manager Leica Microsystems Ltd. Shanghai ' 021 6387-6606 * [email protected] www.leica-microsystems.com Mr. Paul Anton Schittek Shanghai ' 138 1814-2282 * [email protected] Mr. Detlef Schneider CEO Dong-Ping Ltd. Shanghai ' 021 6415-2588 * detlef.schneider@ sashas-shanghai.com www.sashas-shanghai.com Dr. Helmut Schoeneberger General Manager ebm-papst Electrics (Shanghai) Co. Ltd. Shanghai ' 021 5046-0183 * [email protected] www.ebmpapst.com.cn Mr. Jens Weidner Managing Director Jiashan Weide Construction Equipment Co. Ltd. Shanghai ' 021 5465-3699 * [email protected] Mr. Stefan Weiskopf Shanghai ' 021 2216-0300 [email protected] Mr. Andrew Parkin Chief Representative Asia Heller Machinery & Trading (Shanghai) Co. Ltd. Shanghai ' 021 5866-6188 * [email protected] www.heller.biz Mr. Berny Yang Chief Representative Mast Jägermeister AG Shanghai Representative Office Shanghai ' 021 6137-7888 * [email protected] www.jagemeister.com Dr. Holger Pitsch General Manager Nanjing Huade Spark Plug Co. Ltd. Nanjing, Jiangsu ' 025 8538-2601 * [email protected] www.nhsp-ld.com Prof. ZHAO Hai General Manager AUCOTEC Information Technology (Shanghai) Co. Ltd. Shanghai ' 021 6191-0761 www.aucotec.cn Mr. David Garth Preston CEO Boehringer Ingelheim International Trading (Shanghai) Co. Ltd. Shanghai ' 021 6863-9666 * david.preston@ boehringer-ingelheim.com Prof. Kristian Ziegenbein General Manager FTE automotive (Taicang) Co. Ltd. Taicang, Jiangsu ' 0512 5356-3358 * [email protected] COMPETENT. RELIABLE. POWERFUL. FAST. open the door for you But you still have to go inside... We can German Chamber of Commerce in China l Shanghai www.china.ahk.de/chamber/shanghai/ Yearly Sponsors 2010/11 2010 August - September 65 CHAMBER NEWS SHANGHAI AROUND TOWN Asparagus Dinner 14th May 2010 | Binjiang One True to the motto - spring time is asparagus time - around 60 people savoured an exquisite fivecourse asparagus dinner set with white wine and Paulaner Beer. Guests also found comfort in good conversation and the amazing view of the Bund. John Rabe Event 5th June 2010 | German Centre The German Centre hosted the screening of the film John Rabe, followed by a presentation from the icon’s grandson, Thomas Rabe. The event which was initiated by Thomas Dorn, former CEO of Vossloh Fastening Systems, attracted over 150 guests – many of which played extras in the film’s ballrooms scene that was shot in Shanghai. During his presentation, the young Rabe described his first visit to Nanjing in 2002 and emotional meetings with survivors who, as children, had been sheltered and protected by his grandfather. 66 August - September 2010 www.china.ahk.de Public Viewing June-July 2010 | Hofbräuhaus Pudong The 2010 Football World Cup was a great opportunity for all Germans to unite, watch the games and just having a good time together. The German Chamber in Shanghai was very pleased to celebrate this exciting occasion with the many soccer fans who sported their fashionable jerseys and flags. DFB 18th May 2010 | AHK, Binjiang One Former Players from the German football association ‘DFB’ visited the AHK premises where they met German soccer fans. Later on they chilled out at the Binjiang One snow bar where others had the opportunity to mingle with the ex-stars and chat about match highlights and experiences from ‘the good old days’. 2010 August - September 67 CHAMBER NEWS SOUTH CHINA PAGES GCC BOARD Berlin Delegation Visits Shenzhen MTU Maintenance Zhuhai Co., Ltd. President & CEO Mr. Holger Sindemann* Chairman Häfele GmbH & Co Kg, Rep. Office Shenzhen Managing Director Mr. Stefan Rosenbohm Treasurer German Chamber of Commerce • South China | Executive Director Delegation of German Industry & Commerce Guangzhou Delegate & Chief Representative Ms. Alexandra Voss* EWIKON Hotrunner Systems (Shenzhen) Co., Ltd. Managing Director Mr. Rüdiger W. Kümmerle Siemens Ltd., China Senior Vice President and General Manager Region South China Mr. Nong Keqiang C. Melchers GmbH & Co. KG Chief Representative Guangzhou & Chongqing SOUTH CHINA Ms. Renate Tietjen * All-China Board member 68 August - September 2010 German-Chinese Classic-Hip Hop group “Stützpunkt” On 2 nd June a business delegation from Berlin, led by H.E. Harald Wolf, Mayor of Berlin, Senator for Economics, Technology a n d Wo m e n ’ s I s s u e s , p a i d a v i s i t t o Shenzhen. Aims of the delegation’s stay were to introduce the City of Berlin as an ideal place for investment to Shenzhen’s local business community, and strengthen the ties between Berlin and Shenzhen companies with backgrounds in sectors such as energy, transport, mobility, water and creative industries. To promote Berlin’s strategic advantages over other investment locations and exchange industry information between enterprises, a business conference with the theme of ‘Business Know-How for Sustainable Urban Environments – Experiences from Berlin and Shenzhen’ was held in the Hotel Intercontinental Shenzhen on 3rd June. Over 200 representatives from German and Chinese companies, associations and institutes participated in this conference. Industry panel workshops followed the conference and matchmakings were arranged for the perfect business fit between companies. To round up the delegation trip, the participants enjoyed a cultural highlight at night: ‘Berlin – the place to be for music’, a show contributed by Sino-German inspired young classic-meetship-hop group, Stützpunkt. The delegation members also visited their potential Chinese partners in Guangzhou and Hong Kong on 4th June. Participants exchanging names and details Matchmaking and company introductions to establish first contacts Press conference held in Shenzhen Event: Business Delegation from Berlin Date: 4th-5th June 2010, Shenzhen and Pearl River Delta www.china.ahk.de Factory Tour Zhuhai Member companies gave insights into their factories After last year’s great success in Zhongshan, the German Chamber in Guangzhou decided to organise another factory tour for its members. This time, the tour took place in Zhuhai, where participants had an opportunity to visit two member companies. After picking up the attendees from the Zhuhai ferry terminal, as most came from other cities in the PRD, the first stop was at EPCOS (Zhuhai FTZ) Co. Ltd, a manufacturer of varistors, sensors and film capacitors. Mr. Karsten Löwe, the Executive Vice President, and Dr. Klaus Mörtl, Executive Vice President and responsible for ceramic components, gave a brief introduction of their company and product range. Afterwards, all 18 participants split into two groups headed by Mr. Löwe and Dr. Mörtl. The groups toured their production areas and received detailed explanations of processes. Participants then ventured to MTU Maintenance Zhuhai Co. Ltd, which specialises in the repairing and installation of aircraft engines. At MTU, Dr. Frank Bodenhage, the Director of Operations, went to great lengths to present his company and take the participants on an interesting and thorough tour of the premises. The Chamber would like to express its sincere gratitude to both EPCOS and MTU for being such welcoming hosts and sharing such interesting information. Group photo outside of EPCOS (FTU Zhuhai) Co., Ltd. One of the turbines produced at MTU Zhuhai Co. Ltd. Mr. Frank Bodenhage of MTU Maintenance Zhuhai Co. Ltd., is explaining participants the processes at his factory Event: Zhuhai Factory Tour Date: 25th May 2010 Chairs: Mr. Karsten Löwe & Dr. Klaus Mörtl | Executive Vice Presidents, Epcos (Zhuhai FTZ) Co., Ltd.; Dr. Frank Bodenhage | Director of Operations, MTU Maintenance Zhuhai Co. Ltd. German Company Manager Get-Together A business casual morning of business talk and golf balls The first GCC Event in western China was held in Chengdu on 22nd May with over 25 participants from German companies and political partner institutions. The Chamber team introduced upcoming activities in Sichuan and Chongqing and presented the outcome of their recent business confidence survey among German companies in Greater China. One key finding of the survey states that roughly 60% of respondents registered growth in 2009 and expanded their investments in spite of the financial crisis. Chengdu Liaison Manager Ms. Astrid Schröter officially introduced herself to the German community in Chengdu and highlighted the industry sectors and potential opportunities for German investment in western China. She pointed out the strongest sectors in western China in numbers – namely dominated by machinery, high-tech and industrial instruments at the moment. Participants networking and lounging on a beautiful day After a formal morning, the participants joined a professional golf trainer for a lesson on the perfect golf swing that was contested in a small tournament on the driving range. Afterwards participants refreshed during a western buffet and had the chance to socialise. The GCC thanks all who attended and is looking forward to more events and seminars soon in Chengdu and Chongqing. The champions of GCC • South China’s small golf tournament Event: German Company Manager Get-Together Chengdu Date: 22nd May 2010 | Swanlake Driving Range, Chengdu A professional golf trainer is showing how to master the perfect 1st swing Chair: Ms. Astrid Schröter | Liaison Manager Chengdu, GCC • South China 2010 August - September 69 CHAMBER NEWS SOUTH CHINA PAGES Focus on your Best Employees HR Roundtable Guangzhou Mr. Wolfgang Echtler of Dongguan Seibel Mold in discussion with the speaker As China has continued to grow in 2009 and many businesses are expanding their capacities, companies rely on their key employees for thriving and shaping its future successfully. Identifying, recruiting and retaining key employees is the foundation for successful business, and yet seems to be one of the biggest challenges for foreign companies in South China. During the latest HR Roundtable in Guangzhou Ms. Lena Wu from IKA Works Guangzhou and Mr. Tubbs Liang from Sirona Dental Systems Foshan shared tips and hands-on advises from their daily practice on how to successfully and efficiently manage the best and most important employees in their companies. They particularly highlighted the recruitment process and the need of HR to know more about the positions searched, the jargon, the technol- ogy and expectations of line managers for applicants. In this way, HR can meet their role as service provider to the company and considerably relieve workload of the management. Ms. Wu introduced tools and practices that worked best in her company like candidate referrals as an underestimated recruitment channel or group interviews in order to find out more about the candidate’s attitude, communication styles and team work capabilities. Afterwards, Mr. Liang presented an interesting comparison of different recruitment channels, how they are applied in his company and which channels are the best and cost effective when recruiting white or blue collar workers. The speaker also gave useful hints how best recruit in Guangzhou and Dongguan area. After a delicious dinner, participants used their chance to get into further discussions with the speakers, exchanged their views and added more useful advises from their personnel experience. Event: HR Roundtable – Recruiting and Retaining Key Employees Date: 30th June 2010 | Garden Hotel Guangzhou Speakers: Ms. Lena Wu | HR Manager, IKA Works Guangzhou; Mr. Tubbs Liang | HR & Admin Manager, Sirona Dental Systems Foshan Co. Ltd. Representative Offices – Still the right way to go? Legal & Tax Seminar Guangzhou & Shenzhen Ms. Regina Wang, GIC South China Investment & Legal Consultant takes notes of critical information With new legal restrictions and taxation laws for the Foreign Representative Office, a hot debate regarding the right go about business activities has emerged. In co-operation with Ernst&Young, PricewaterhouseCoopers and local law firm Wang Jing Co, the German Chamber Guangzhou invited its members to two events in Guangzhou and Shenzhen to focus on the major changes and impacts of these new laws. Mr. Zach Wortham highlighted the legal aspects of Representative Offices versus Wholly Owned Foreign Enterprises (WOFEs) and gave practical advice on how to comply with the authorities. Furthermore, he introduced case studies as practical examples of the diverse outcomes of the latest Representative Office court cases. Following up, Ms. Ingrid Qin highlighted the tax changes and legal changes in Guangzhou. Ms. Joanne Chu did the same accordingly to Shenzhen. They compared Representative Offices to WOFEs in regards 70 August - September 2010 to taxation, and highlighted that decisions on the legal form of a company should be assessed based on its size and activities. After the presentation the attendees had a chance to raise their questions and consult with the speakers on individual situations. Event: Legal Roundtable – Representative Office, still the right way to go? Date: 12th May 2010 in Guangzhou and 18th May 2010 in Shenzhen Speaker: Mr. Zach Wortham | Client Service Manager, Wang Jing & Co. Law Firm; Ms. Ingrid Qin | Director Tax Services PricewaterhouseCoopers; Ms. Joanne Chu | Tax Senior Manager, Ernst& Young www.china.ahk.de Shenzhen goes Plastic First Business Forum Held in Zhongshan An industry’s issues on the agenda Paying tributes to the fact that Shenzhen and parts of Dongguan have established themselves as a German cluster in the plastic industry, the first plastic roundtable was launched in the Pearl River Delta. A broad range of industry representatives covering machine building to producers of plastic parts joined to exchange ideas. Chaired by GCC board member Mr. Rüdiger Kümmerle at the newly opened Institute of Plastic Technology and Application (IPTA), which already houses several German companies related to the industry, participants discussed price developments for resources as well as problems in recruiting skilled labour. Companies pointed out the HR difficulties of this sector and used the opportunities to share their experience in training and retaining skilled labour. Problems in the resource market for vital goods such as POM have been an issue in the industry and companies discussed their supply chain management to see how they have been coping with the problem. Overall the first plastic roundtable proved to be a great success. The German Chamber in Guangzhou will continue to establish more events within certain industries throughout the year. Event: First Plastics Roundtable Meeting with the city’s officials proved to be a success Twelve representatives of German-owned companies in and around Zhongshan used the opportunity to discuss challenges companies are facing in the region with officials from the local government. Held at the German-owned Bellavista Restaurant, the meeting took place in a relaxed atmosphere. Key issues that companies expressed were problems dealing with customs, the lack of international schooling and environmental regulations that are not uniformly enforced. Another key concern was training staff on issues such as safety and health regulations. Companies shared their experiences with these topics and had an open discussion on how to tackle the challenges. Following the meeting company representatives enjoyed drinks and food at the restaurant while continuing discussions in a more informal setting. The German Chamber in Guangzhou plans to organise similar future events in Zhongshan and contribute to a better exchange between companies and local authorities. Event: Zhongshan Business Forum – Meeting with the local authorities Date: 13th May 2010 Chair: Max Zenglein | Regional Manager, GCC • South China Date: 27th May 2010 Chair: Mr. Rüdiger Kümmerle | Managing Director EWIKON Hotrunner Systems (Shenzhen) | GCC Board of Directors Member NEW MEMBERS SOUTH CHINA Mr. Marcus Knopp Managing Director LeitOn GmbH | Hong Kong ' 00852 9685-9509 * [email protected] Mr. Johannes Jaeger Founding Partner | Principal Designer Jaeger and Partner Architects Ltd. Shenzhen ' 0755-2690 8620 * [email protected] www.jaegerandpartner.com Mr. Thomas Rieger Operations Director Key Services China Co., Ltd. | Guangzhou ' 020 2283-8220 * [email protected] www.keygz.com Mr. Peter Lutter General Manager Finepower GmbH | Shenzhen ' 0049 8930-9075-823 * [email protected] www.finepower.com Celebrate South China’s original Oktoberfest Mr. John Benito De Valle General Manager 3PL Group. Hercules Logistics Forwarding Ltd. Shenzhen ' 0755 2380-7551 * [email protected] www.hercules-logistics.com Mr. Manfred Heidberg Managing Director Deguo Concept Co., Ltd. | Dongguan ' 0769 2318-9147 * [email protected] www.deguoconcept.com Mr. Michael Müller General Manager Vice-President China Machinery Co., Ltd. | Shenzhen ' 0755 8831-6907 * [email protected] www.kraussmaffei.com For full contact information and company profiles of our new and existing members please visit www.german-company-directory.com German Beer, Food & music! GUANGZHOU 8-12 Oc t | sHeNZHeN 4-7 NOV For sponsorship enquiries or further details, please contact [email protected] 2010 August - September 71 CHAMBER NEWS SOUTH CHINA AROUND TOWN Asparagus Dinner 3rd June 2010 | The Castle, German Restaurant and Beer Garden Celebrating the German Asparagus season the GCC • South China invited its members to a delicious three course dinner with authentic white asparagus from Germany, prepared by a German Chef. Participants enjoyed a warm summer night outside in the lovely beer garden. Foshan Interchamber Networking Drinks 17th May 2010 | White House Hotel, Foshan 130 people from ten different nations joined the first Interchamber event in Foshan that took place on 17th May at 1506 Creative City. The event was jointly organised by the GCC • South China, the French, Canadian and British Chamber, Deltabridges and local media. Family Pool Party 29th May 2010 | Sofitel Royal Lagoon, Dongguan A day full of splashes and fun, the GCC • South China and the French Chamber jointly held a family day & pool party at the beautiful facilities of Sofitel Royal Lagoon. The families enjoyed a day of water fun, treats, clowns, good food and good company. Soccer World Cup Events June 2010 | various locations, Pearl River Delta Paying tributes to the soccer craziness of this year’s World Cup in South Africa, the GCC • South China organised several soccer viewings across the Pearl River Delta to cheer with its members for ‘Schwarz-Rot-Gold’. 72 August - September 2010 2010 August - September 73 COMMUNITY TRAINING & EDUCATION Beijing Training Highlights Training Calendar Date Training Beijing 1st September – 1st December 2nd September – 2nd December Intensive Spoken Chinese – Beginners Intensive Spoken Chinese – Elementary Level 7th September Six Thinking Hats 9th – 10th September Basic Management Skills 14th September Basic Leadership Training (Tianjin) 16th September Delivering Winning Presentations Shanghai 2nd– 3rd August Working Smart with MS PowerPoint 4th August Successful Design with MS PowerPoint 4th– 5th August Customs Management of Commodity Classification on Import and Export Cargo and the Analyze of its Processing Skill Relating to Technique* 5th– 6th August Basic Management Skills 7th– 8th August Effective Interview Skills for HR Managers in German Companies* Professional Receptionist Training 10th– 11th August 17th– 18th August Key Account Management* 20th August Supplier Quality 26th– 27th August Working Smart with MS Project 26th– 27th Procurement Executives 1st September Customs Formalities Planning and the Strategy of the Customs’ Check for Import and Export Enterprises* 7th– 8th September Customer Service Excellence 9th– 10th September Business Presentation Skills 9th– 10th September Working with MS Excel Macro & VBA 13th– 14th September Controlling for Controllers* 14th September Creative Problem Solving & Decision Making* 16th–17th September Finance Course for Non-Financial Managers 17th September Inventory Control & Warehouse Management South China 5th – 6th August 12th – 13th August 16th August 20th August Effective Selling Skills (Guangzhou) Facilitation Skills (Guangzhou) Partnering with Co-workers (Shenzhen) Solution Focused Coaching Skills For today›s Busy Managers (Guangzhou) 26th – 27th August Introduction to Leadership (for Emerging Leaders)(Zhuhai) 9th September Stress & EQ Management (Shenzhen) 10th September Inventory Control and Warehouse Management (Shenzhen) 9th – 10th September Presentation with Impact (Guangzhou) 14th September Essential Marketing Skills (Shenzhen) 16th – 17th September Build a Business that Works (Guangzhou) 24th – 25th September Project Management (Zhuhai) Intensive Spoken Chinese These courses are designed for motivated foreigners wishing to challenge themselves by learning a new language or improve their Chinese language skills and master standard situations with grace. The course covers everyday expressions and basic phrases. Basic Management Skills This training course equips you with proven supervisory techniques that you can put into action immediately. With the help of these management skills, you will be able to meet your new challenges with increased confidence, respect and power. You also will be more efficient, leaving more time to perform creative and strategic thinking. Shanghai Training Highlights Key Account Management This strategic planning approach goes beyond traditional selling. It reaches inside both seller and buyer organisations illustrating that Key Account Management is undoubtedly more complex than simple sales activities. Through this course you will learn the method and strategy of key account business development, management skills of key account sales groups, and explore key account concepts such as how to protect and grow business with key clients. Supplier Quality Selecting a competitive supplier who offers quality, engineering, service and price is an important part of any project. This seminar will help you understand quality supplier activities by giving you the necessary assessment skills based on QS9000, and by introducing quality tools. You will learn how to minimise quality risks with respect to suppliers and why it is so important to make continual improvements. Case studies will help you understand how to reduce quality risks and analyse and solve quality problems. South China Training Highlights Effective Selling Skills This training program will help increase your self-confidence and develop a positive attitude towards selling. It will assess and improve your selling and communication techniques, help you learn to convert objections into sales opportunities and achieve win-win sales and customer relationships. Build a Business that Works This workshop will show you how to prevent your business from making common mistakes. If your business is suffering from cash flow, team challenges, or if you feel 'overworked and underpaid', attending this seminar is a MUST. * new courses GCC members receive discounted rates on training courses. For further information please contact: Beijing Shanghai South China Ms. Jiang Ying ' 010 6539-6712 6 010 6539-6689 * [email protected] Ms. Zhang Yihui ' 021 6875-8536 ext.1658 6 010 6875-8573 ext.5658 * [email protected] Ms. Hu Lilian ' 020 8755-8209 6 020 8755-1889 * [email protected] 74 August - September 2010 www.china.ahk.de AHK Vocational Training Educates Skilled Workers China is booming and German companies are grabbing the opportunity to get their share. Over the past ten years many German enterprises have set up their facilities in the Yangtze Delta - with success. However, a major bottleneck for their further growth in China is a shortage of qualified staff. Especially production companies are facing problems of hiring qualified Mechanics, Electronic Technicians, Mechatronic Technicians, Toolmakers and Metal Cutters, amongst others. are already placed in a job. Their certificates were handed over in a graduation ceremony attended by the German Minister President of Lower Saxony David McAllister and his delegation in the Chien-Shiung Institute in Taicang end of June this year. Other high ranking politicians such as General Consul of German Consulate Shanghai Dr. Albrecht von der Heyden, Mr. Pu, Communist Party Chief Taicang or Mr. Wang, Mayor Taicang also participated. In an attempt to counteract this problem, the Delegation of German Industry & Commerce in China, Shanghai (AHK Shanghai), established the AHK-Chien-Shiung Vocational Training Centre in September 2007 in cooperation with the Chien-Shiung Institute of Technology in Taicang. The overall goal of the training centre is to offer a practical vocational education for skilled workers, in line with Germany’s dual system that offers vocational training in cooperation with German companies. The course covers the fields of Mechatronics and Industrial Mechanic and is thus practical and hands-on. It also enjoys close links with participating companies. Certificates to the three best students were handed over by Minister President McAllister who congratulated all graduates in his speech. This German project is the biggest of its kind within the vocational training of Mechatronics and Industrial Mechanic abroad. “The success of this first project is reflected in the increasing demand of other institutions to implement this vocational training course,” stated Manfred Rothgänger, Delegate and Chief Representative AHK Shanghai. “Most of the Chinese cities have realized that implementing vocational trainings based on Germany’s dual system provides them an additional advantage to attract more German companies to invest in their region. And on the other hand German companies are only able to grow if we offer them the educated skilled workers they urgently need for their production processes.” The AHK Shanghai, German Industry and Commerce Hannover (IHK Hanover, Germany), as well as a vocational school in Hanover supply professional technology support and training supervision. German experts in the fields of vocational training are also deployed on a long-term basis. Around 70 Mechatronics trainees and 30 Industrial Mechanics trainees are being educated on a 2:1 ratio of practice to theory. The first course of its kind in China has already proven to be a success since all 93 examinees passed the exam, got certified by the AHK and All courses start in September each year, last three years and have the AHK certification plus a Chinese certificate. Anybody can attend the course provided having achieved the Chinese high school diploma. The time to apply for the training programme starts now, and this is just the beginning. To satisfy this urgent need of qualified labor the AHK will establish another training centre in Wuxi, as an addition to the centre in Taicang. Contact: Wilhelm Dittrich, Expert of AHK at the Chien-Shiung Institute, * [email protected] Britta Buschfeld, Head of Department Recruitment&Training, * [email protected] 2010 August - September 75 COMMUNITY ENVIRONMENT Natural Energy with Side Effects Wind Energy & Smart Grids are Bound to Set New Standards In China the usage of wind energy is increasing. Even current expectations f o re s e e C h i n a t o o v e r t a k e a l l o t h e r countries by 2010 in regards to wind energy production and deployment. Currently being the third global leader behind the U.S. and Germany, China is already home to major wind manufacturers like Goldwind, Sinovel Wind or Dongfang. The estimated worth of the manufacturing industry is USD 8.59bn, and new regulations are allowing foreign investors to set up their own power plants and networks. China has great potential for transferring wind into energy, having a wind potential of 250 bio gwh/year (giga watt hours) on land and 750 bio gwh/year offshore. The current energy demand of the People`s Republic reaches around 950 GW and could be entirely satisfied by wind energy alone. This wind potential implies the possible amount of wind being transferred into energy. It is calculated based on the humidity and temperature changes, taking into account the earth’s rotation and total surface. Especially offshore holds a huge wind potential with strong winds over the sea. The energy hunger is growing and experts foresee a 5% increase in energy demand per year. Using the enormous wind potential could cover a large amount of this energy need. However, only 5.9GW have been efficiently used so far. South China’s Guangdong province, known for its trade and export, is a province with a 76 August - September 2010 particularly humid and windy climate. It is one of the provinces with the highest wind potential all over China. One of the main reasons for this is the frequent typhoons that are crossing South China. As a ploy to attract more investors in the field, the provincial government has made the tariffs in Guangdong particularly friendly towards renewable energies, especially in comparison to other provinces. Ambitions of the local authorities are striving to achieve 20% power coverage by wind energy until 2020. This will only be possible by huge investments and restructuring of current wind parks – which is the angle bringing German companies into the game. Known for cutting-edge technology in the field of wind parks, German know-how is highly sought after by Chinese corporations. Being the leader in wind energy and one of the first countries in the world to thoroughly implement wind technology as a source for energy generation, German manufacturers have a solid background and experience with the technology and market. For example, Siemens set up a plant near Shanghai in May last year, mainly catering to the domestic market, marking the importance of the local wind energy sector for German manufacturers. One of the biggest challenges is the lineentry of newly generated energy into the power network. A lot of the old power grids in China are simply not able to inline the power generated from wind energy properly into their network. Furthermore about 7% of all energy delivered is simply being lost during transmission because of thousands of kilometres of electrical lines being old and out of date, power grids that are not fitted for the new standards and only 72% of the installed wind energy capacity is connected to grids. Therefore, the new buzz word in this area and a solution for the industry is the ‘Smart grid technology’. A smart grid delivers electricity from suppliers to consumers using two-way digital technology to save energy, reduce cost and increase reliability and transparency. It overlays the electricity distribution grid with an information and net metring system. China is placing a lot of efforts and dedication into the process of updating the current standards of its power grids to smart grid standards. This expertise is based on information technology that combines energy from different sources into the power network, also improving its efficiency. Another obstacle for the development of wind energy is the comparatively high costs, which make government subsidies an existential question for the entire industry and thereby extremely dependent on governmental policies. Current plans of the government foresee annual investments of USD 10bn into the upgrading of different national power grids. The National Grid Plan for 2010 expects to cover China with fewer power grids, but therefore broader coverage through transmission lines. The longterm objective is to ensure China’s energy coverage with greener and more efficient energy generation. SN NEW BOOKS www.china.ahk.de China and the Credit Crisis: The Emergence of a New World Order John Wiley & Sons (Asia) Pte Ltd | Giles Chance 2010 | 228 pages ISBN-10: 0470825073, ISBN-13: 978-0470825075 China and the Credit Crisis analyses the role China had in the run-up of the global crisis. The author of the book, Giles Chance, is a visiting professor at the Peking University and a China veteran with almost two decades of experience in the country. In his book he delivers profound information about developments like China’s emergence to the WTO in 2001 and the economic boom that followed in the global economy. Furthermore, he provides a deep look into China’s progress as being the largest financier of the developed world and third largest economy globally. Its emergence helped creating the conditions for the debt excesses which caused the crash in 2008. The crisis could have been avoided or its impact at least limited if financial policymakers had better understood the nature and effects of China’s rapid ascendance. Throughout the book, Chance analyses China’s new role with respect to changes in global governance, the future role of the dollar, and the country’s relations with the United States, Asia and the emerging world. All in all China and the Credit Crisis examines the larger role that China will play in the recovery from the current credit crisis as well as in the post-crisis world. Between Fascination and Fear / Zwischen Faszination und Furcht Peter Lang | Prof. Dr. Dr. Andreas Tank | 2010 | 219 pages, German | ISBN 978-3631602683 For our German readership, author A n d r e a s Ta n k presents a practical yet intriguing tale that contests the equivalence of modernity and westernisation in China. Zwischen Faszination und Furcht takes its readers on a journey through the alluring, yet frightening, market entry process for foreign China investors and competitors. First establishing the cultural, economical and political background, the book ascends to the strategic planning, branding, advertising and sales processes of the China market. Throughout this endeavour, the author describes common mistakes of foreign players and weighs these against influences and business success factors from imperial times up to the present. From this comparison, the book deducts that certain decisive characteristics have remained unchanged over the years and that economic success is possible in China. Numerous illustrations accompany this market analysis, including some rare historical advertising motifs from the archives of multinational companies. Zwischen Faszination und Furcht is highly recommended among China-trade practitioners and contains statements from high-profile professionals with credible Sino-German experience. Before coming to China, author Dr. Andreas Tank, Marketing Director of the German heating technology company Viessmann in China, worked for several international companies among other positions in Germany, the USA, Canada and France. He also published a book in 2005 regarding success factors for market development, titled China-Marketing:Erfolgsfaktoren für die Marktbearbeitung. 2010 August - September 77 COMMUNITY FOOD & RESTAURANTS special concoction was well received by Wei Zheng’s mother, who was pleased by its sweet and satisfying qualities. For the following 100 years, the doctor used this candy within the Imperial household to cure people of their chills or cough, until it leaked to the public. Nowadays, this medicine is still being produced and its ingredients have remained relatively unchanged since the Tang Dynasty; however it is now said to relieve coughs, clear sinuses and even help work up an appetite. For the older generation, pear candy is also associated with its colourful distributors from the streets of old Shanghai. It is said that the Shanghainese first witnessed such hawkers in the early 1920s, who mainly came from the Yangzhou area. The hawkers offered a great variety of the pear candy, but were most famous for their improvised jokes, ballads and tongue-twisters. Their improvisations spread from mouth to mouth and became the primary source of comedic relief during their time. One of the hawkers’ favourite skits involved poking fun at local police officials and when the officers questioned them, they would claim to be insane. As a result, the people of Shanghai called them ‘Xiao Re Hun’, meaning ‘the person who gets crazy from time to time’ in a Shanghainese dialect. Since the liberation of Shanghai, the government has attached great importance in developing the pear syrup candy and there are now around forty different sorts including ginger, mint, olive, dried shrimp and peanut. The previously mentioned name for the hawkers has also developed into a brand of modernday pear candy. Medicine in Disguise Pear candy is not something that parents should worry about giving to their children. It looks like candy. It tastes like candy. But apart from its name, pear candy is really medicine in disguise. Dating back about 1300 years to the Tang Dynasty period from 618-907 A.D, pear candy comes from a generation that was characterised by unprecedented strength and brilliance, with unprecedented intellectual progress. Many great poets, a rise of Confucianism and the use of paper money were brought forth and of course the beloved pear candy. This unique treat is sweet, healthy and inexpensive, which is why it is widely distributed and consumed as candy. But there is more than meets the eye to these individually wrapped delicacies. As the story goes, today’s infamous pear candy was invented in the Shanghai region when the mother of Prime Minister Wei Zheng became ill and was impartial to taking medicine. Her son asked one of the emperor’s doctors for a special remedy, who took herbal medicine, condensed it and mixed it with pear juice and sugar. The product of this 78 August - September 2010 The first pear candy store was established in 1855, during the reign of Emperor Xianfeng in the Qing Dynasty. But if you want to taste these little cubes of medicinal candy that contain just as many stories as ingredients, you can now find them in several small shops near the ancient Town God’s Temple. The Shanghai Pear Candy Store is the exclusive retailer for the candy and is located in the Yu Garden shopping centre, which is coincidentally only a few steps away from the Pear Garden where visitors can enjoy medicinal teas either inside the old theatre or atop an elegant roof terrace. 2010 August - September 79 COMMUNITY Health A Universal C Traditional Chinese Medicine and its Healing Promises You may know various Chinese therapeutic practices such as zhongyao herbal medicine, zhenjiu acupuncture, tuina manual therapies, qigong and taiji physical and mental health training, and various meditative breathing exercises. All of these practices are healing and have been derived from Traditional Chinese Medicine (TCM). They are credited by many as medicinal treatments, but others are still leery of the practice because it takes time to understand. TCM is now considered a complementary or alternative medical system in much of the western world, while remaining a primary form of care throughout most of Asia. The healing principles of TCM differ from the western anatomical model as it is more concerned with function, rather than dividing the physical body into parts. Much of the philosophy behind TCM is derived from the same bases as Taoism and Buddhism, reflecting the classical Chinese belief that the life and activity of individuals have an intimate relationship with the environment on all levels. This also coincides with the belief that the human body is a small universe with a complete set of sophisticated and interconnected systems that work in balance to maintain the healthy function of the human body. There are significant regional and philosophical differences between TCM practitioners and schools. However, the main concept is that of qi, which remains relatively consistent throughout all practice. The sources of the subtle life energy qi include prenatal and postnatal components such as nourishment and air. The qi circulates along certain pathways in the body, the so-called meridians, where the acupuncture points are found. Each meridian is related to the function of a specific organic system. Xue, the blood, jing, the sexual essence, shen the mind and jinye, all further liquid substances, form the five elementary substances. These have an effect on all inner organs. The two polar, yet interconnected forces in which the universal energy is released are known as the yin and the yang. For optimal 80 August - September 2010 health, a well-balanced level of these forces must be maintained. Each of these two principles can be either too weak or too strong at a particular point in the system, resulting in different pathological symptoms. Each yin contains yang in either a smaller or larger proportion and vice versa. The vital connection of the functional system forms a chain where each meridian with its acupuncture points is linked to one another. The interaction of this functional circuit of organs in relation to its qi is regulated according to the teachings of wuxing, the five element-dependent transformation phases. There are two different physiological and two pathological relations. These are found in the zang organs (yin character) with storage function, the fu organs (yang character) with a processing function, the structural and locomotor apparatus and the sensory organs, emotions and psychophysiological conditions. Five Elements Wood Wuxing mu Fire Zang Organs (Storing) Liver Heart Spleen Lungs Kidneys Fu Organs (Processing) Gall Bladder Small Intestines Stomach Large Intestine Urinary Bladder Tissues Tendons Vessels Muscles Skin/Hair Bones/Marrow 木 huo 火 Earth Metal tu jin 土 Water 金 shui Face Eyes Tongue Mouth Nose Ears Emotion Anger Joy/Shock Anxiety Worry/ Depression Fear 水 The meridian or pathway system called jingluo connects the circuit of organs. Damage occurs within the circuit due to one-sided influences, known as the six adverse external causes or liuxie: wind, cold, burning heat, humidity, summer heat and drought. The internal causes are qiqing, the seven emotions: joy, anger, sadness, pensiveness, grief, fear and fright. Aside from the aforementioned www.china.ahk.de Connection influences, there are situational disturbances such as dietary lapses, excessive sexual activity, over exertion, injuries, parasites, poisoning and congenital factors. The bagang, the eight basic principles, confirm whether or not an illness has outer or inner symptoms, is cold or hot, or shows emptiness or fullness. This information can determine if a yin or yang illness is present. Traditional Chinese Medicine has been modernised to some degree by transforming the plants and ingredients that correlate to the inadequate function of the body into soluble granules and tablets. Modern formulations in pills and sachets use 675 plant and fungi ingredients and about 25 from non-plant sources such as minerals, reptiles, bees, and earthworms. Investigation of the active ingredients in TCM is continuous; however some mainstream western-style drugs have already incorporated TCM ingredients, for example Artemisinin that is now widely used in the treatment of malaria. There is something to be said about the body’s response to the active ingredients in proven forms of effective Traditional Chinese Medicine. Maybe the universe is more connected than we think? About the Author: Prof. Dr. Dr. Thomas Heise Prof. Dr. Dr. Thomas Heise became a Professor of Western Medicine to learn the basic concepts of diagnosis and treatment of internal medicine and psychotherapy. He then travelled to China in 1985 as a Sinologist to study TCM for two years and practiced nature medicine in Germany for many years to follow. As the Chief Doctor of a hospital first in Germany and now in Shanghai, he continued his research and combined the results and technology from Russian space medicine with his own TCM practice, creating the ‘elektrobio Transcultural Nature Healing®’. Now he is cooperating with top level doctors in China to treat the body, mind and soul and invigorate the self-healing power to overcome health issues and strengthen the body for a vivacious future. About his Modernised TCM Practice In a space-medicine programme, the Russians developed a way to measure the skin resistance at acupuncture points. This has been purchased by Germans and connected to other nature healing methods like homeopathy, Bach remedies, Schuessler salts, cell therapies and bioresonance principles, but is now further applied using knowledge of measuring specific biofunctions & bioregulations via heart rate variability. This provides a basis for preventive medicine, which can predetermine approximately when a heart attack will occur or what kind of damage is taking place due to daily stress. 2010 August - September 81 COMMUNITY SPORTS Where the Grass is Greener China on Horseback – A Beijinger’s Tale On my first visit to the scruffy little horse club in a remote corner of Chang’an, Dongguan, I took a class, my horse bucked, I fell – and the teacher administered the animal a good beating as a consequence. On my second visit to the stable, it had relocated, and the once grungy Chang’an Horse Club had transformed into the upscale star-rated Camelot Country Club and Riding Resort. It was the masterpiece of owner and head coach Li Zhen Qiang, a Dongguan native, Olympic equestrian and China’s star showjumper. At the posh resort, we were taken on a full tour of the expansive deluxe premise – first to the Italian restaurant, then the gym, the spa, the entertainment area with a movie theatre, tennis courts, a pool, the conference centre and a lake with imported white swans. There was a look of surprise and dismay on the face of the guide when we carefully implied whether we could skip this part and just see the horses, for which we had come in the first place. But we could have never afforded the allinclusive annual membership anyway. A horse-lover in China exploring the local equestrian scene needs to be prepared for a range of emotions; it is a country in which the idea of a horse whisperer produces a healthy laugh and the animals are more often than not held under inappropriate conditions, but a one-hour riding class can still cost more than in Europe or even Hong Kong, easily reaching RMB 500 and over in Beijing. As other fields in China, modern horsemanship only looks back on a short history. “The interest in horses is driven greatly by status rather than the animal or sport itself,” a Dongguan friend and true horse lover, Liu Wen Quan, describes. “A horse is first and foremost considered a sophisticated sports tool for the exclusive upper class.” Liu is most likely the only person in Guangdong province who can ride a horse, smoke a cigarette and use a cell phone at the same time. He belongs to a small group of genuine horsemen who are starting from the hooves up in their mission to bring horses and the lifestyle connected to them closer to the people. 82 August - September 2010 Sometimes it is nice to have a place in the city that completely lets you forget that you are in Beijing. The Garden Stable just south of the Sun He River is one of those places. Friendly wandering puppies and kittens are playing in the sun, and an ornery threesome of geese is honking in defense of their territory, the little pond. The roofed patio invites to linger in one of the wicker chairs and enjoy a cup of tea while a horse whinnies from the stable and a skewbald pony is enjoying a coltish time out in the open paddock. Once you have made it here where the air is fresher and the grass is greener somewhere between Chaoyang and Shunyi, the thought of returning to the city results in a major internal conflict. A black Jeep Cherokee parked on the gravel lot indicates that Li Wei is around somewhere, puffing his signature pipe, checking up on things or discussing horse issues in fluent Hungarian with the young Hungarian Bakaigy, another indispensable fixture at the stable. Li is the soul of Garden Stable and a co-owner – unfortunately of several who do not share his vision of casual summer BBQ or Goulash evenings on the patio with other horse and nature lovers but are rather eyeing a second, more profitable ‘Camelot’. Li was 14 years old when he rode his bike to a horse ring south of the city, where one round on horseback cost five yuan. He bought three rounds, and with the remaining five yuan a snack and a drink. But it wasn’t until he arrived in the ‘hometown of horses’, as he dubs it, that he developed a true love and appreciation of horsemanship. When he turned 18, his father wanted him to see the world – and as far as his father, a Professor of Hungarian History and Language at the Beijing Foreign Language University, was concerned, the nicest spot in the world was Hungary. So Li attended university there and later worked as a translator for the Hungarian government – with every weekend spent on horseback. When he returned to China, his job prospects were bleak; he struggled selling high-quality German mortar for a while until he finally decided to join forces with fellow horse enthusiasts and establish a little club with 1.5ha of land, seven horses and five people. The club quickly outgrew its original location and is now split up between the Garden Stable with 25 horses, and the bigger sister club Yue He Wan a bit further up the road towards Jingmi with about 55 horses. The two clubs www.china.ahk.de count a total of 800 members, the youngest being a five year-old girl who is already a proud horse owner. Represented by Mercedes and Porsche Cayennes in its parking lot, the busier Yue He Wan features a shop and a little restaurant with a beer garden that bustles with parents, horse owners, kids, purebred Tibetan Mastiffs and horse caretakers. The Garden Club is the simpler, quieter, low-key place; a little sanctuary. Li lovingly modeled it in the spirit of the riding stables he knew from Europe. Though the majority of ‘hobby’ horses in China remain retired race horses from Macao and Hong Kong, which come with their own set of physical and mental handicaps (imagine a horse that will only go in one direction!), domestic horse lineages are gradually producing better breeds to employ in basic and beginner training. Still, those who can afford the purchase and maintenance of an Equine in the first place can often easily skip the import from the traditional nearby Russian or Mongolian horse sources and afford pedigree animals from France, Germany, Holland or Belgium. and education. We are desperate for professional coaches, properly trained specialised veterinarians, and the knowledge and technologies that already are long established in the West.” Yet, if it’s just about an expensive horse, then the point – the heart of it all – is missed, Li laments. When the owners arrive at the stable, they expect the horse to be readily prepared for riding; they will not do the grooming, bridling or saddling themselves. After class, they will dismount, and the horse is led back to the stable by a caretaker. However true horsemanship extends beyond the presentation in the ring, and Li sees his mission in passing that lifestyle on to the kids who come to his stable. In the future, he sees himself training a fresh new generation of riders who are not only technical talents in the saddle but know how to clean out the hooves, or can detect when the horse is in a bad mood. Although there is an on-site horse doc who treats the animals with acupuncture when needed, his experience was largely self-taught on military horses. Veterinaries are mainly trained for the meat processing industry, agriculture or food labs – from these backgrounds, they often also operate the myriads of small animal clinics around the country. Consequently Li’s big vision is the first big national horse hospital and accredited professional equestrian college and training centre based in Beijing…if the recently announced ambitious plan by a Dubai developer for a USD 4bn Horse City in Tianjin does not beat him to his dream. “With the short history of the sport in our country, the skills of Chinese riders are still far from noteworthy,” Li explains. “European equestrianism is to China what Chinese ping-pong is to the world, we are still at the very beginning and have a lot of catching up to do with a considerable need for training There is one last thing on his mind missing even in the little Garden of Eden that he created with the stable – that one special woman who takes him as he comes, pipe and foreign influence and all…and is willing to compete with the love of his life, ‘his’ horses. JNS 2010 August - September 83 COMMUNITY GIVING BACK Recipe prepares better Future For most people Shangri-La is the epitome for Tibetan culture - yaks and highlands. Located in the heart of Yunnan at an altitude of 4,000m, it holds a very special climate and atmosphere. However it is also one of the poorest regions in China’s south-western province of Yunnan. Many inhabitants still rely on old-fashioned farm work and have hardly any access to modern amenities, yet the Tibetan culture still has a large impact on people’s daily life and beliefs. Despite the economic situation, one might be surprised how well Shangri-La caters to its tourists. This historic old town is filled with bars, cafes, hostels and travel agencies. One of the many bars in Shangri-La belongs to Sunny, a friendly outgoing Swiss-Tibetan. His restaurant humbly serves the best Yak burger in town, yet there is more that meets the taste buds of every meat lover to this restaurant. Being raised in Switzerland, Sunny speaks fluent German and holds a degree from a university in Zurich. His mother always wanted him to stick to his roots and remember his Tibetan culture even though he was raised abroad. She longed to go back to her mother country for years and finally returned to Shangri-La in the ‘90s. When she returned, she found the community was lacking many things - most notably were the orphans without any homes or caretakers. Thus his mother decided to open an orphanage. Since then, she has managed to run a home for the parentless children, though often struggling at times. Financing has always been the biggest concern, though she has thus forth managed with little donations, her own savings from Switzerland and some government support. Part of the Tibetan culture is the parental responsibility concerning their children’s future. Usually parents ensure their children have an income and job, or will help them to find such stability once they reach the age of consent. Therefore being an orphan means possibly returning to the streets at a later age without proper support for further education or associations to get a job. This problem was striking for Sunny. He thought of ways to enable his brothers and sisters, as he amicably calls them, to provide themselves with a secure future. The solution was simple: With the increasing amount of tourists coming to visit Shangri-La every year the hospitality industry held big opportunities for new business and investments. Furthermore, it takes staff to run such a business. Combining both thoughts brought the conclusion – why not run a business that allows the orphans to gain proper work experience while making his own ends meet at the same time. Having no business background in China, or experience running a restaurant and bar, Sunny struggled with this concept in the beginning, but soon learned that this was a great way to help the children, his mother, and himself. The basic principle of social entrepreneurship transferred into practical experience. Since then his business has been growing. He now owns three restaurants and has plans for more businesses underway. After noticing how the restaurants gave the kids a chance to really specialise their skills, Sunny began considering applying the same concept to different business sectors, such as a mechanics shop for vehicle repairs. Another one of his latest projects is the creation of a new Shangri-La beer, which is set to be the new beer around bars in Yunnan and hopefully across China. Sunny hopes that the brewery will employ many more of his brothers and sisters, and that it will offer another industry option for them to develop their career paths. Spanish volunteer Nuria helping at the orphanage Sunny (centre) with his ‘brothers and sister’ German quality control for the new Shangri-La beer A German student has also lent a helping hand to kick off the brewery with German quality control and to also instil the best possible marketing concept. Sunny’s approach to social entrepreneurship is a new way of giving back to the community on a sustainable basis following the principle of ‘Hilfe zur Selbsthilfe’. His projects will have long lasting benefits for the individuals who are provided with jobs, the communities in which they are servicing, the German student who will derive lifelong value from this experience and many more. Let’s hope that this idea spreads to more communities in need, as there are many areas in China that could benefit from such endeavours. SN schanghai com d e u t s c h s p r a c h i g e "Beliebteste ChinaInformationsbörse" (ZEIT) "Viele Deutsche nutzen die Job- und Wohnungsbörse von schanghai.com" (ARD) "Wichtigste deutschsprachige Austauschplattform" (Deutscher Shanghai) 84 August - Club September 2010 c h i n a - p l a t t f o r m Your direct channel to Germans in China Efficient ad solutions from EUR 160/month Request our media-kit at [email protected] Monthly social night (Stammtisch): Aug. 28th and Sep. 25th RSVP at http://www.schanghai.com/stammtisch ART & CULTURE www.china.ahk.de With cooperation of the German TV channel ZDF, the latest comprehensive solo exhibit ‘The Dynasty of Colours’ of Xiaobai Su was featured in the elegant exhibition spaces of the Langen Foundation, near Neuss, Germany from 17th January – 24th May and can now be seen in his Shanghai studio. Through art, Xiaobai combines his ChineseGerman background, which he enhanced during his studies and work in Germany and China. Born in the Chinese city of Wuhan, Xiaobai journeyed to Beijing to study at the Central Academy of Fine Arts, where he first learned the craft of traditional Chinese painting. With his highly individual works, distinguished by their unusual conception and artistic perfection, Xiaobai made a name for himself in the Chinese art scene early in his artistic career. “Painting is a labour of physical effort and needs a fixed place to hold groups of painting tools,” said Xiaobai in regards to his workspace. In an artistic developmental stage of his life, Xiaobai spent over ten years nearly isolated at a former village school close to the west border of Germany to discover an artistic inspiration. “I resolutely left my familiar environment and a comfortable life for an entirely alien space,” said Xiaobai. “Fortunately, the place I went happened to Unravelling the Layers of Xiaobai Su A Chinese-German Artist be the best modern art academy in Europe.” The place he speaks of is the Düsseldorf Art Academy, which Xiaobai describes as a serene place where “the surroundings, light, quality of air, combination of colours and even the different smell of the turpentine in painting material, or the aisle of a teaching building form a particular shape or format.” colour. Xiaobai brushes layers of saturated, intensely coloured lacquers on canvas, hemp or wood. The colour protrudes threedimensionally, forming lines, patterns and a unique surface structure. This structure is intentionally deployed as an independent, artistic shaping element that enlightens his works with unusually tactile character. Before the Düsseldorf Art Academy, Xiaobai attended the prestigious Beijing Central Academy of Fine Arts, where he acquired knowledge of culture and possibility. After his transition to the academy in Düsseldorf, he then eliminated the possibilities and refined his individual abstract language of signs out of simple yet unmistakable forms. This school also introduced Xiaobai to various inspirational figures, whom enriched his artistic development. With his abstract non-representational paintings, Xiaobai strives for a universality that suspends cultural borders. The resulting paintings always hover between order, passion, harmony and dissonance. Despite utmost painterly precision, Xiaobai’s works elude definition. The viewer becomes aware of infinite possibilities for seeing and understanding. Although Xiaobai’s works are created on canvas and hung on walls, they are clearly set apart from the conventional sense of paintings. “Painting is to find the way of handling colours. The most direct route to soul vision,” explains Xiaobai of his unique perception. “What I want is just handling colours in the imaginable surface layer, no symbolisation or concept.” In his large works, a strict, formal structure joins with an expressive application of His works are displayed in art galleries, halls of parliament, banks and in private collection. However, the location of Xiaobai’s works is of lesser importance to him than the manner in which they are displayed. “I like to see my art presented in an open area where people can observe and discuss its qualities. I admit though that they are yet to be hung on my own walls,” tells Xiaobai. His artwork can be publicly viewed in his Shanghai gallery as well as at Galerie Renate Kammer in Hamburg, Germany or Lin & Keng Gallery in Taipei, Taiwan. ATD 2010 August - September 85 COMMUNITY TRAVEL Desert Days A Weekend in the Tengger Greater Inner Mongolia offers a landscape to suit any personality – from desert ranges to mountains and rocky roads over grasslands. It makes for a perfect adventure destination without having to venture too far from Beijing. And while there are numerous destinations exerting cultural and geographic wonders in China, these places often draw crowds that question whether you have even left the city. So let us venture to an area that stimulates visions of endless desolate landscape, the desert - or more specifically, the Inner Mongolian desert. Only two hours west of Beijing by plane rests the city of Yinchuan, the capital of the Ningxia Hui Autonomous Region, roughly mid-way between Xi’an and Mongolia. Planning an expedition before arrival is the best way to explore the desert landscape. Trip organisers will arrange for a local 86 August - September 2010 English-speaking guide and driver to deliver you from airport to hotel and then off into the abyss. Although travelling by tour group is not ideal for adrenaline craving adventure seekers, trekking through a desert can be challenging without relevant experience and knowledge. Then again, each trip is always as unique as the beholder. A hearty Chinese breakfast is the best foundation for any sort of excursion, including a venture to the Alashan (Alxa) plateau. Traversing the Yellow River and following a scant industrial backdrop, a fascinating mountainscape seemingly appears from nowhere. White flocks of sheep become visible at the foot of a severely weathered section of the Great Wall as you cross the border to Inner Mongolia, making your bumpy way to the edge of the Tengger desert where the daze begins. Daredevil Jeeps catapult their passengers in all directions as they ride through the transitioning sand dunes. Climbing up the dunes on foot is necessary to digg your toes into the sand, follow the busy scarabs around without going anywhere specific, make sand angels and then take pictures showcasing the collection of sand in every crevice of your being. When not galloping through the dunes try racing around on listless desert horses, kicking up some sand in a dune buggy, letting your legs dangle in a cool desert lake, conversing with animated camels, or www.china.ahk.de unravelling the mysteries of the desert, like learning the painful way why the nearby Mosquito Lake was named Mosquito Lake. Of course it is crucial to bring along your essential life supply for desert survival – water, water and more water. Your body demands hydration in such dry heat. Although the temperatures can be quite tolerable on an overcast weekend, you should also beware of sandstorms that can whip up entire walls of sand and lash against our cheeks with painful force. A stunning oasis amidst a sea of sand can be booked for accommodation at a tasteful ‘eco’ resort on the banks of Moon Lake. The resort features large bungalow homes as well as a little settlement of individual ghers that can be rented out for the night. The standard hotel package includes a two-man band in Mongolian costumes that magically materialises each time a new guest arrives. Yet aside from the occasional ensuing welcome ritual, the silence of the resort resembles a serene paradise. For those watching the pocketbook or wanting to be closer to nature, camping out in tents is another option. Campers can still take full advantage of the hotel facilities, such as equipment storage in the hotel lobby, without having to check in. This comes in handy when returning from excursions to change the sweaty desert attire, freshen up, or gather provisions for the next course of action. A table at the lovingly constructed wooden terrace area portrays a blue lake with waterbirds soaring above the thick green rows of reeds and a line of camels striding by on the yellow desert horizon, transporting you into a world far away from the China you thought you knew. The hotel makes a great vantage point for several activity and excursion options, whether you are travelling with friends, family, adrenaline-seeking extremists, eager trekkers or simply looking for a scheherazadian backdrop to kick back to with a good book. There are numerous tourist attractions to venture out to from here such as the well-known Swan Lake, or sacred Helan Mountain. No desert vacation is a real desert experience without a camel trek. While soaking in the beguiling landscape in the windstill moments, it becomes easier to gradually adapt to the rolling gait of the Bactrian digitigrades and acquire an appreciation for their large dark eyes, long eyelashes and wide cushion feet that carry souls amid the volatile dunes with amazing steadfastness and poise. Most find it difficult not to connect with the peculiar but admirable creatures that never complain, as they are so perfectly fit to the misanthropic environment – true desert hovercrafts and indeed quite endearing characters. A weekend in the desert can undoubtedly leave you exhausted, but none the less brimming with all the excitement and adventure you could have dreamed of for just a few days. Leaving you with one piece of advice for the flight back home – lean all the way back into the seat, whether it be first class or economy, and hold out a plastic bag to collect all the sand that will pour from every crevice of your body. The tour organizer was Winser Zhao of China Travel 2.0 (http://www. chinatravel20.com). You can reach him at [email protected] Avid Jeep driver and German Chamber member Peter Küsters regularly organizes his personal Jeep treks to China deserts that can be joined either by individual hardcore 4WD enthusiast from the community or the entire family depending on the destination, terrain and routes. You can contact him at [email protected] 2010 August - September 87 COMMUNITY THIS & THAT How well do you know China? In which province was this scenic shot taken and what crop is grown in such terraces? Check out our next issue for the answer and send us a photo from your own pool of China travel pictures, indicating the name and place of the motive. The best entry will be published with credits of the photographer in our next issue. Email your entry to [email protected] Solution 3/2010: The Old Bell Tower in the centre of the Ancient Town of Pingyao is known for its loud chime at 7.00 pm each night that can be heard from over 20km away. THE GREAT PEOPLE Sudoku masquerade Hard 7 3 1 5 8 5 6 4 2 7 3 3 5 3 7 3 8 6 1 2 3 4 2 4 1 2 5 9 1 6 1 7 8 5 SudokuShack.com http://www.flickr.com/puyecomic German Speaking Christian Community Beijing Date 5th September Time 10.00 am Place Service Huairou Ecumenical Pudong different places different places St. Peters Church St. Peters Church Ecumenical Protestant Protestant Catholic Catholic Summer Break: 4th July – 4th September An ecumenical service resumes church activities in Beijing on 5th September Shanghai 29th August 5th September 12th September 19th September 26th September 10.30 am 10.30 am 10.30 am 3.00 pm 3.00 pm Summer Break: 4th July – 28th August Contact: 88 by: PUYE Beijing: Dr. Karl-Heinz Schell – Protestant Pastor | ' 136 9363-1857 * [email protected] | www.egpeking.de Catholic Services | * [email protected] August - September 2010 Shanghai + Suzhou: Peter Kruse – Protestant Pastor | ' 139 1765-4475 Michael Bauer – Catholic Priest | ' 137 7431-0216 * [email protected] | www.dcgs.net 2010 August - September 89 COMMUNITY CHAMBER EVENTS CALENDAR Regular Events Chamber Calendar Date Event/Topic North China 23th August 10th September German Chamber Breakfast Welcome Back Party with German Embassy School Beijing East China 19th August 25th August 26th August 1th September 7th September 8th September 9th September 14th September 16th September 18th September 20th September GC Roundtable Begin Kunshan Beerfestival Chamber Meeting Members Day @ Kunshan Expo Roundtable Workshop Construction Junior Chamber Kickoff Panel Discussion Workshop Automotive Chamber Meeting Welcome Back Party Germany and China Day South China 25th August 26th August tbc August 14th September 15th September tbc tbc Legal Roundtable (Guangzhou) HR Roundtable (Shenzhen) Legal Roundtable (Shenzhen) GM Roundtable (Shenzhen) HR Roundtable (Guangzhou) Business Forum (Zhongshan) West China Workshop (Shenzhen) North China South China Praktikantenstammtisch every second Tuesday of the month at changing locations, 7.00pm German Stammtisch Shenzhen – every third Thursday of the month at Galleon Bar, InterContinental Shenzhen Tianjin Kammerstammtisch every last Wednesday of the month at two changing locations - Euro Place and Drei Kronen Young Professionals Stammtisch Shenzhen every last Thursday of the month Beijing Kammerstammtisch every third Monday of the month at Paulaner Bräuhaus, 7.00pm German Happy Hour Guangzhou – every last Tuesday of the month Young Professionals Stammtisch Guangzhou every second Thursday of the month East China Deutscher Stammtisch every second Tuesday of the month at Paulaner Bräuhaus Fenyang Road, 7.00pm Praktikantenstammtisch every third Wednesday of the month at Mural Bar, 7.30pm Event Highlights North China Throw a Ball on 13th November 2010 What will it be? A Ball in black or a Vaudeville night? A winter’s tale or a starlit night? Whatever the theme, this much shall be said: Again this year, much fun will be had! Save the date, save a Yuan, support our Ball and dance till dawn! For sponsorship opportunities please contact Ms. Magdalena Kempa at [email protected] South China West China Workshop in Shenzhen Due to the success of the West China Workshop series in Shanghai and Beijing in June 2010, GCC · South China in cooperation with GCC l Hong Kong are bringing this comprehensive information session to South China. The workshop on business potentials and market development in Sichuan and Chongqing will be held on Sept/Oct 2010 in Shenzhen. Our speakers are going to share the results of the brand new AHK-GTAI West China Survey and provide hands-on information on business and living conditions. Company representatives from Sichuan and Chongqing will add their individual perspective and are looking forward to exchange their experience and to lively discussions with the audience. East China Bräugaudi - The German tent at Kunshan International Beer Festival with Members Day on 3rd September Greater Shanghai’s biggest beer festival is back from 25th August - 5th September 2010 in Kunshan. As an established institution for many years now, the German tent ‘Bräugaudi’ offers a typical German beer tent atmosphere: authentic decoration, imported German food, a German band and freshly drafted German beer. Whether you’re hosting an office dinner, customer event, or employee day, take advantage of Bräugaudi’s relaxed atmosphere with fun, games and unparalleled entertainment. The German Chamber’s Members Day takes place on 3rd September at Bräugaudi with a limited amount of free tickets for our members! Contact Mr. Jan Höpper for tickets at [email protected] 90 August - September 2010 2010 August - September 91 COMMUNITY 92 August - September 2010