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38 June - July 2011

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2011 June - July 39

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CHAMBER NEWS

40 June - July 2011

Daimler AGExecutive Vice PresidentDaimler Northeast Asia Ltd.Chairman & CEOMr. Ulrich Walker

German Chamber BeijingExecutive DirectorDelegation of German Industry & Commerce BeijingDelegate & Chief Representative Ms. Alexandra Voss*

KPMG Huazhen Certified Public AccountantsPartner AuditMr. Andreas FeegeTreasurer

Lufthansa German Airlines General Manager Beijing, Chief RepresentativeMs. 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 DepartmentDr. Jörg Mull

Giesecke & Devrient (China) Information Technologies Co. Ltd. Managing DirectorDr. Roland Savoy

TUI China Travel Co. Ltd. CEOMr. Marcel Schneider

GMH – Holding China Chief Representative Mr. Jöran F. Treppschuh

BEIJ

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BEIJING PAGES

* All-China Board Member

Leading By Example

to the progressive Airbus in this regard, the learning was not over yet. With the trend toward local talent taking on leadership roles and succeeding expat managers in China, Steffen pointed out the importance of granting a degree of autonomy to what is still too often regarded as the Chinese “colony”.

The Eurocentrism of a company affects its China business, and the art of leadership development is a progressive learning curve for the European headquarters in Toulouse as well: it took a shift in perspective from the European side when it came to welcoming and training Chinese future leaders in Europe or adapting the leadership track assessment of Chinese talent from a distance. Using vivid imagery drawn from the Airbus experience, Steffen juxtaposed the “Chinese dragon” with the “Western dragon”, and the opposing Chinese and European perceptions of the regional counterpart’s status, illustrating that internationalization and integration had to go both ways in equal measure of an inside-out and an outside-in approach. The Airbus model shows how a global-scale leadership programme can be implemented on the local scale without compromising the corporation’s European origins and values.

Creating role modelsThe succeeding panel discussion took up the dynamics and impulses raised in Steffen’s presentation. Host Dr. Frank Gallo, Chief Leadership Consultant at Aon Hewitt Greater China, assembled a high-scale panel of leaders in their own right with Mr. Michael Zhang, Managing Director of Schüco China, Mr. Pierre Steffen, Mr. Eddy Henning, Director and Head of Corporate Banking Coverage China at Deutsche Bank, and Mr. Thomas Schmitz, Managing Director

Regardless of the economic, legal, political and social developments, Human Resources Management remains a steadfast concern to foreign companies in China, and alongside attraction and retention, Leadership tops the list of HR challenges. While economic, legal or political developments impacting business in the Middle Kingdom can’t be influenced, the role and impact of leadership development in a China business can be actively established and encouraged.

Exploring the multi-faceted aspects of Leadership to deduce models and processes for leadership development, the first Global Leadership Conference was called to life by the German Chamber of Commerce in Beijing with the partnering European Union, Swiss and Benelux Chambers of Commerce and inside industry support through the management consulting companies MTI and LMI. The presentations, workshops and panel discussions held at the Marriott Beijing Hotel Northeast compiled ways to transform the HR stumbling block ‘Leadership’ into a stepping stone for a successful leadership culture in the China activities of global corporations.

Shifting perspectiveFollowing introductory speeches by Dr. Florian Kessler of the German Chamber of Commerce and the day’s MC, Marc Fogel of MTI, Pierre Steffen stepped up to the corporate leadership challenge at the podium. The Senior Vice President of Customer Services & Operations at Airbus China guided the audience through Airbus’ strategic approach to shaping local talent for global success. The Airbus best practice in developing world class leaders in China demonstrated how successful local leadership development starts with a comprehensive global commitment. Even

Global Leadership Conference

2011 June - July 41

for GEA Westfalia Separator. An animated discussion ensued between the panelists and the audience representing foreign businesses in a range of industries and sectors . Questions, argumentations, views and projections touched on subjects as general leader-ship definitions, generational shifts, finding balance as a Chinese leader with western management training, maintaining consistent leadership schemes, leveling and managing reciprocal expectations, combining the global leadership plan with local exercises, evaluating the leadership investment outcome, motivating, training and retaining leadership, formalizing trust between the HQ abroad and the China entity, and last but not least the future roles of the classical expat and the new local leaders in global companies.

Establishing responsibilityIn two workshops , the par t i c ipants welcomed the opportunity to dive further into the engaging subject matter and contribute experiences and insights from their own respective China activities. Ms. Katrin Braun and Mr. Marc Fogel of MTI established through a case study how imperative it is for any organization to recognize that leadership is not just a responsibility of the HR department: a holistic approach is vital to successful leadership development and requires a continuous, consistent and comprehensive effort incorporating al l management levels. Mr. Andrej Schindhelm and his LMI colleague Mr. Alan Babington-Smith took the participants on a journey from A to B with change management. Offering their concept of an all-round Total Leader who produces total performance, they examined the versatile personal and professional

Event: Global Leadership Conference – Local Talents for your Global Success

Date:15th March 2011

Venue: Marriott Northeast Beijing

Speakers: Ms. Katrin Braun, Managing Director, MTI Management Consulting (Beijing); Dr. Frank Gallo, Chief Leadership Consultant, Aon Hewitt Greater China; Mr. Eddy Henning, Director and Head of Corporate Banking Coverage China, Deutsche Bank; Dr. Florian Kessler, Gen-eral Manager, Delegation of German Industry & Commerce, Beijing; Mr. Andrej Schindhelm, Managing Director, LMI Germany; Mr. Thomas Schmitz, Managing Director, GEO Westfalia Separator; Mr. Pierre Steffen, Senior Vice President, Airbus China; Mr. Matthias Zeuch, Vice President of Human Resources Sales & Financial Services Africa, Asia, Pacific Region, Daimler Northeast Asia; Mr. Michael Zhang, Managing Director, Schüco China.

c o m p o n e n t s o f s o l i d a n d e f f e c t i v e leadership. The LMI Team appealed to the participants that Leadership is first and foremost established within the individual and defined not as a position but an attitude.

Empowering through sharingIn his closing speech, Executive Vice President of HR, Sales and Financial Services at Daimler Northeast Asia Ltd. Mr. Matthias Zeuch offered a glimpse into the Daimler model for the successful internal and external engagement and empowerment of local talent. He emphasized a systematic leadership development from Day 1 to safeguard the early identification of local talent, and reaffirmed the crucial element of the HQ experience abroad. In l ine with managing expectations, Mr. Zeuch underlined the need for clear communication of what was changeable and what was not within the organization. Openness to the cultural differences along with an ongoing exchange of internal best practices across perceived and physical borders sets the tone for sharing between the China entity and the headquarters abroad, getting over the threat of a mutual “not invented here” mentality, and creating a platform for local talent to rise to the occasion of ensuring global success.

In the course of the day, numerous business cards and ideas were exchanged. The recur-rent central theme of leading by example also led through the Conference, and the event concluded with the hopes to continue setting examples for successful leadership deve lopment in China . Ta lent jo ins companies and leave managers – but more and more and rightfully so, local Chinese talent is joining global companies to become world-class leaders.

www.china.ahk.de

CHAMBER NEWS

42 June - July 2011

BEIJING PAGES

A Forum for Green Logistics

As part of the the global BVL Logistics Day event series, the BVL Regional Group Beijing together with its partner the German Chamber of Commerce Beijing and the Beijing Wuzi University organized the Green Logistics Forum at Beijing Wuzi University on April 14.

More than 100 professionals, managers, entrepreneurs, scholars, professors and students joined the event and discussed Green Logistics and Green Supply Chain Management.

The presentations showed the rapidly developing trend of Logistics toward environmental protection and conservation, the reduction of carbon dioxide and development and implementation of a Green Supply Chain

Logistics Day Beijing 2011

Event: Payment Risks of the Fast Growing Dragon

Date: 8th April 2011Venue: The Great Wall Sheraton Hotel

Speaker: Mr. Benjamin Gan | Deputy Regional Risk Manager, Risk, Greater China, Coface

Event: Day of Logistics 2011

Date: 14th April 2011Venue: Logistics Museum of Beijing Wuzi University

Speakers: Prof. Xu Jiang | Beijing Wuzi University; Prof. Zhou Deke | Tsinghua University; Mr. Tian Yu | TÜV Rheinland China, Mr. Matthieu Ma | Marketing Manager, CHEP China

Management. All links of the supply chain, for example transportation, production or warehousing, can help reduce the impact on the environment and help reduce carbon dioxide emissions, starting from as simple a choice as transportation: air, sea, rail or land, which all have a different emissions quota per ton.

The President of Wuzi University, Professor Wang Xudong expressed in his opening speech that the Day of Logistics was an excellent annual event providing an invaluable information and exchange platform on practices, strategies and ideas to both Chinese and German logistics experts.

During the forum, Professor Xu Jiang of Beijing Wuzi University, Mr. Tian Yu of TÜV

Rheinland and Dr. Zhou Deke from Tsinghua University delivered presentations on their studies of Green Logistics. After the Tea Break, Mr. Matthieu Ma from CHEP Group delivered a case study on the establishment of a green and sustainable supply chain through new business approaches as pallet pooling.

The presentations were followed by a panel discussion of academic and industry experts. German logistic managers from Schenker and Fablog shared their experiences of Green Logistic solutions in their daily work and discussed with academic experts and the audi-ence the future outlook for Green Logistic and ways of promoting Green Logistics effectively.

The event concluded with a tour of the Beijing Wuzi University Logistics workshop.

Payment Risks of the Fast Growing DragonThe Chinese Dragon is known for its insatiability…but what about its solvency? An Inter-Chamber Breakfast in cooperation with the French, Swiss, Swedish, Spanish and Benelux Chambers of Commerce and the Canadian Council sought to explore this question with the help of risk management expert Mr. Benjamin Gan of global credit insurance and trade receivables management provider Coface.

I n 2 0 1 0 , C o f a c e c o n d u c t e d t h e i r 8 t h annual Survey of Corporate Credit Risk Management in China. The objective was to understand the payment experiences of China based compa-nies and domestic trade trends and analyze trade risks in different sectors on the Chinese Mainland.

In a first overview, Mr. Gan characterized the wide range of companies covered by the survey by nature, location, main business activities, domestic annual revenue, years of establish-ment and sectors. He then presented the survey findings in detail through illustrative graphs and tables which showed that overall, the overdue situation in China has improved.

Inter-Chamber Breakfast

There are less overdue accounts in domestic sales, and the average overdue periods are shorter with a lower default risk of overdue accounts. As the two main reasons for default payments, chaotic management at customers’ companies and fraud and lack of morality were identified, while the main reason for financial difficulty experience was the impact of the rising raw materials prices. High-risk companies for overdues were identified as private owned companies followed by state-owned companies. A closer look at the individual sectors revealed the average credit terms, average overdue periods and the weight of credit sales increased.

Mr. Gan continued with a breakdown of the impact of the government’s stimulus package on individual sectors and their credit risks. He further highlighted the key functions of credit risk mitigation and credit management processes, tools, and customer credit evaluation.

Mr. Benjamin Gan also offered a look at the present with the 2011 perspectives for credit sales as a business development. The large and rapid appreciation of the Yuan Renminbi along

with tighter money and bank lending policies and the withdrawal of the federal stimulus package were projected as the top business concerns for 2011. As for the general perspec-tive on improvement of overdue accounts by the companies, a majority does not expect the overdue situation in China to improve within the next three years, and about a third of respondents do not expect any improvement at all. Despite the renewed confidence voiced by the respondent companies mainly based on the penetration into new markets and the resulting expansion of their customer base in a vibrant economy with consistently high output, 29 % of the surveyed companies continue to extend an average credit term of 90 days or more – still comparatively high to other countries.

With credit confidence and optimism about the overdue situation in China lacking, Mr. Gan pointed out, the establishment of a sound credit management procedure was critical.

2011 June - July 43

No Place for Bubbles

While the world continued to look onto China with anticipation and expectation of various proverbial bubbles to burst particularly when it comes to the prominent Real Estate Bubble, Dr. Florian Hackelberg of PwC and Attorney Mr. Philipp Senff of SJ Berwin took a look at the hard facts. After Ms. He Xin, Deputy Head of the Law & Business Department at the Delegation of German Industry & Commerce Beijing gave a quick overview over the issues at hand, Hackelberg provided the audience with a closer look at China's unique market characteristics.

He also took up the myth of unavailable cheap housing in China, demonstrating the importance of not directly comparing or even transferring between the German or U.S. real estate markets and the unique situation and circumstances of the Chinese real estate market. In terms of the regulatory situation, rental behavior, investment and loans options, ownership and property valuation, there are notable differences to the real estate environments abroad, but also in regards to China itself it is necessary to make regional distinctions before attempting generalizing conclusions on the Chinese real estate market

at a whole. “There is a bubble in some areas, but it is a controlled bubble,” Hackelberg summarized.

The legal perspective of Senff ’s practice experience reinforced the necessity to zoom in on geographic regions and submarkets for a comprehensive look at China’s real estate market. Detailing the legal framework concerning property, land use and building ownership rights, he further explored acquisition structures, financing options, foreign investment scenarios, approvals and certifications for construction projects along with contract options and warranty periods. Senff appealed to foreign investors in the Chinese market to “keep it clean and reduce hidden liabilities” in any legal matters of their investment activities.

The ensuing discussion between the speakers and the participants touched on opportunities and attracting factors for German companies on Chinese real estate ground, property acquisition transactions, construction quality development, the shift from WOFEs to a re-vival of joint-ventures with stronger-growing Chinese developers seeking foreign invest-

China Real Estate Market Insights and Legal Update

Event: China Real Estate Market Insights and Legal Update – How to cope with the bubble on the horizon?

Date: 24th March 2011Venue: German Chamber of Commerce, Beijing

Speakers: Dr. Florian Hackelberg | Senior Manager, PricewaterhouseCoopers; Mr. Philipp Senff | Attorney-at-Law, SJ Berwin LLP Shanghai

ment partners, and last but not least bridging the great divide of mindsets on the issue between the western long-term thinking and the “property flipping” prevalent in China.

CHAMBER NEWS

44 June - July 2011

BEIJING PAGES

German Day on Energy Efficient Building at the Annual Green Building ConferenceBuilding on its annually increasing relevance to the building and construction sector not only in China itself but China on a global scale, the 7th International Conference on Green and Energy-Efficient Building & New Technologies and Products Expo GEBC 2011 again asserted its leading role among the national line-up of international trade fairs in March. Organized by the Chinese Ministry of Housing, Urban & Rural Development MoHURD, the three-day conference and exhibition supported by various government offices and foreign institutions explored the theme “Reduce Carbon, Increase Quality – Green Buildings Improve City Life”.

Having joined forces in the development of a programmatic CDM project for new sectoral approaches along with a national carbon trade scheme in the new buildings sector in China were the Department of Environmental Technology and Services at the German Chamber of Commerce Beijing as project coordinator and their partners, the German Federal Ministry of Environment, Nature Conservation and Nuclear Safety (BMU), the Centres of Science and Technology of Construction (CSTC) of MoHURD, the Tsinghua University Research Center for International Environmental Policy, the engineering and research company BBS International, the project and policy consulting company Climate Focus and Beijing HOPA International Consulting. The pCDM project investigated the feasibility of calculation, financing and construction instruments and their implementation by MoHURD through a pilot application in the southeastern Chinese city of Xiamen, and the Green Building Conference provided a commensurate framework for the project’s official conclusion.

Dr. Florian Kessler opened the series of final presentations wrapping up the successful mu-tual outcome. Mr. Han Aixing summarized the tackled challenges of the project and ex-pressed his hope for further Sino-German cooperation at comparable level in the future. Dr. Silke Karcher concurred with Han Aixing on the unique advantage Sino-German coop-eration can provide through the combination of the German emission trading systems ex-perience with the Chinese knowledge of the on-site situation – a proven recipe for suc-cess. Dr. Karcher addressed the participants with a general appeal: technically, so much was already possible – now it was up to the policy makers to strengthen the political

frame-work in the sector. As a first overview, Prof. Dr. Oberheitmann offered a general outline of the final project report and highlighted some results of the implemented Programmes of Activity (PoA) relating to China’s new building sector. Mr. Zhai Guoliang went deeper into the subject matter of PoAs by illustrating their necessity and requirements and explaining the principals of pCDMs. He expressed how pCDMs can open sectors so far untouched by the conventional CMDs, including lamps, biogas, solar water heating, and industrial boilers. Ms. Karla Lieberg discussed the motivation for a carbon trading platform and offered proposals for carbon trading scheme modalities that are not only innovative but also applicable in the domestic building sector. She emphasized not only looking at new but existing buildings as well. Ms. Zhang Xiaoling reported on the application of pCDM in carbon emission rights trading mechanisms and the promotion of energy saving in the Chinese building sector. She also pointed out the challenges in the registration preparation and issuance.

Following a coffee and tea break, Mr. Wang Haoping continued the series with a case study on theoretical and methodological approaches in China’s building sector. Dr. Helmut Hohenstein illustrated challenges and needs of a holistic and integrated energy-efficient building approach by example of climate engineering technologies as insulation, heat recovery and ventilation, as well as renewable energy technologies, and compared the implications of China’s different climatic conditions for these two elements. Demonstrating on the Xiamen model the variety of aspects playing into the equation of greenhouse gas reduction including the often overlooked dehumidification, Dr. Hans-Peter Leimer’s speech touched on general constants as the regional climate and energy demands of various building types to variables as end-user behavior impacting the emission of greenhouse gases. Mr. Uwe Muenchow took up the materials challenge and demonstrated from his building materials perspective how essential the choice of the right building shell was in ensuring climate and energy-efficient building – this service, of course, courtesy of the German industry for more quality-conscious construction in the Middle Kingdom.

The wealth of ideas, future visions, successes and ensuing questions and inquiries raised by the morning presentations were carried well into the group buffet lunch, where over Chinese and western food, the fundamental

team work of both components methodology and technology was further discussed.

Observer Dr. Veit Steinle, General Director and Head of the Environmental Policy and Infrastructure Department of the German Federal Ministry of Transport, Building and Urban Development BMVBS, declared this year’s Green Building Conference a particular success in terms of the German presence and involvement, and voiced his hope to encourage an even larger number of German representatives and their Chinese partners to participate and cooperate in presentations and workshops in next year’s edition.

Event: BMU New Building Project Final Workshop “From pCDM to Carbon Trading – new Incen-tives for Energy Saving in the Building Sector in China”

Date: 29th March 2011Venue: Green Building Conference, Beijing International Convention Center

Speakers: Dr. Florian Kessler, General Manager, Delegation of German Industry and Commerce, Beijing; Mr. Han Aixing, Deputy Director, General Senior Engineer, Depar tment of Energy, Ef f ic iency in Buildings, Science & Technology, MoHURD; Dr. Silke Karcher, Head of EU Affairs and Bilateral Cooperation on Environment and Energy, German Federal Ministry of Environment, Nature Conservation and Nuclear Safety (BMU); Prof. Dr. Andreas Oberhe i t -mann, D i rec tor, Research Center for International Environmental Policy, Tsinghua University; Ms. Zhang Xiaoling, Head of Division of International Cooperation, Project Development Engineer, Science & Technology, MoHURD; Ms. Karla Lieberg, Chief Representative Climate Focus, Beijing Representative Office; Mr. Zhai Guoliang, KfW Carbon Fund, Beijing; Mr. Wang Haoping, Research Associate, CIM Integrated Expert, Research Center for International Environmental Policy, Department of Environmental Science and Engineering, Tsinghua University; Dr. Helmut Hohenstein, Managing Director, HOPA International, Beijing; Dr. Hans-Peter Leimer, Managing Director, BBS International; Mr. Uwe Muenchow, Executive Director, Baumit Building Materials, Shanghai, Chairman, ETICS Quality Alliance Group.

2011 June - July 45

GrowinG solutions for GrowinG concerns.

this year, the Board, team, Members and Partners

of the German Chamber of Commerce • Beijinghave renewed their commitment to exploring

sustainable solutions for a Greener china - our Annual theme in the Year

of the Green rabbit.

rabbit provided by aboutpixel.de/@H

eidrun Schindler

CHAMBER NEWS

46 June - July 2011

BEIJING PAGES

Financing Options for German SMEs in China

Job Fair “German Career Day”

Efficiently financing operations and growth can determine much of a company’s success or failure in today’s business world. Especially to small and medium-sized enterprises (SMEs), gaining access to customized financing solutions and realizing their successful application can be a daunting challenge. With over 4,200 German companies on the Chinese market and almost 80% of them being of SME characteristics (less than 500 employees and EUR 50mn annual turnover), the German Chamber Breakfast Seminar “Financing Options for German SMEs in China” was obviously not short on participants. Moderated by Mr. Eddy Henning, Director and Head of Corporate Banking Coverage China (Deutsche Bank) and board member of the German Chamber of Commerce, the panel of experts from three major providers of financing solutions shared its insights into the financing and leasing industry. Additionally, Mr. Axel Scholz (CEO, Siemens Finance and Leasing Ltd.), Mr. Qigan Lu (General Manager, Deutsche Leasing China) and Mr. Jan-Willem Sudmann (General Manager, Commerzbank China) answered questions from the audience and evaluated the future of financing for SMEs in China.

Asked about which problems continue to exist for SME companies, Mr. Sudmann named three particular areas: the tightly

The Job Fair “German Career Day” organized by the German Chamber of Commerce in Beijing on May 14th was very well received by both exhibitors and participants.

A total of thirty-two companies participated in the event; among them the two gold sponsors Hörmann China and Volkswagen Group China as well as other well-known companies such as BMW, Lufthansa and Siemens among many others.

Through this event, many companies benefitted from the opportunity to present

Chamber Breakfast Seminarregulated financial sector, the fact that all banks will share more or less the same view concerning the economic outlook or a business’ prospects, and finally the “huge amount of administrative requirements” that need to be passed before any bank will commit to a financing deal. Concerning the conditions under which banks are actually willing to lend money, he added that “whenever the company is willing to give a parental guarantee, it is much easier to go to an international bank.” As a rule of thumb, as soon as the company can offer substantial collaterals, it may consider a local Chinese bank as well. Mr. Axel Scholz noted that the separation between leasing and lending will become less clear in the future as more and more hybrid models of financing will be available. However, a comparison of tenures of the different vehicles shows that leasing can provide a viable alternative to loans when solutions for longer-term financing are needed, Mr. Henning added.

In summary of the panel’s discussion and outlook, Mr. Qigan Lu concluded that despite the many changes, privately run SMEs still do not have the full range of options that state-owned companies can chose from. They lack easy access to bank loans, public listing opportunities and the massive bargaining power. Leasing as an asset-based financing alternative can

Event: German Chamber Breakfast Seminar - Financing Options for German SMEs in China

Date: 20th April 2011Venue: Kempinski Hotel Beijing

Speakers: Mr. Axel Scholz | CEO and General Manager, Siemens Finance and Leasing, Ltd.; Mr. Lu Qigan | General Manager, Deutsche Leasing; Mr. Jan-Willem Sudmann | General Manager, Commerzbank; Mr. Eddy Henning | Director and Head of Corporate Banking China, Deutsche Bank

Event: Job Fair “German Career Day”

Date: 14th May 2011 Venue: Swissotel Beijing, Hong Kong Macau Center

facilitate both the sales financing and the investment financing for German SMEs in China. Thus, the ground for future discussion is provided and the topic is likely to remain a priority on the agenda of executives and financial management.

themselves as attractive employers and get in touch with suitable young professionals.

More than 400 candidates attended this year’s Job Fair. The young talents comprised Chinese returnees from Germany, Chinese university students and graduates from top universities as well as foreign professionals seeking to pursue their career in China.

The participants’ high turnout number was reflective of the great interest in German companies as employers. Many candidates could draw from linguistic and cultural

experiences made in Germany which they hoped to utilize in their future careers.

Preceding the Job Fair, the German Chamber organized a successful workshop for candidates to help job seekers with tips on resume writing and the interview process.

2011 June - July 47

www.china.ahk.deBEIJING AROUND TOWN

The Great Hilton Beijing Pancake Race 20118th March 2011, Hilton Beijing Every year, Beijing’s finest pancake tosser is crowned at the Hilton Hotel – this year again, the Hotel gave the starting signal to the 2011 edition of their Pancake Race. The lobby was trans-formed into a crafty and challenging obstacle course where con-testants navigated their way round while tossing a freshly made pancake. The winner of the madcap race was judged on speed, style, costume, number of complete tosses and as well of course – not to have dropped the pancake – crash helmets provided.

CHAMBER NEWS

48 June - July 2011

Understanding the core values of specific Intellectual Property assets is of particular importance when moving into a new market. Since IP forms such a large part of the corporate value, its management as a financial asset has become crucial to the success of the overall business in recent years.

To inform company representatives and decision makers of SMEs in the Beijing-Tianjin area on how to set up a strategic IP management approach together with the appropriate identification, evaluation and protection of corresponding IP assets, the China IPR SME Helpdesk in cooperation with the European Union Chamber of Commerce in China and supported by the German Chamber of Commerce, Tianjin, invited to the workshop “Managing Intellectual Property as a Business Asset” at the Westin Tianjin.

The workshop provided an understanding of how to conduct an intellectual property assessment, help determine the value of these assets, and identify further assets that a business can protect. Demonstrating how to identify individual intellectual property assets and prioritize them, the workshop also explored quick and cost effective measures that can be put into place to protect a business.

F o r m i n g a n e w p l a t f o r m f o r y o u n g professionals and entrepreneurs living and working in the Beijing-Tianjin region, the German Chamber Tianjin in cooperation with the American Chamber Tianjin Chapter, the European Union Chamber Tianjin and the Swiss Chamber kicked off with a Young Professionals Luncheon and the topic “Start your own business in China”.

With the focus on the Foreign Invested Partnership (FIP) enterprise structure which encourages foreign companies and individuals to directly invest in China, the Deputy Head of the Department for Law & Business at the Delegation of German Industry & Commerce in Beijing, Ms. He Xin, provided first-hand orientation on the corresponding administrative measures promulgated by the State Council, providing general guidance on how to implement and use this new investment tool for foreign investors.

Having successfully founded the number one FIP enterprise in Tianjin and at the same time nationwide the number five, Mr. Guido Greber, Founder and Managing Director of Guido Greber Management, Ltd., outlined the advantages and stumbling blocks in setting up a foreign invested partnership during the second part of the session.

TIANJIN PAGES

Managing Intellectual Property as a Business AssetIPR Workshop

Event: Managing Intellectual Property as a Business Asset

Date: 30th March 2011 at The Westin Tianjin

Speakers: Ms. Naomi Saunders, China IPR SME Helpdesk; Mr. Clifford Bog-Marks, Special Counsel, Bird & Bird, Beijing

Event: Start your own Business in China – based on a Foreign Invested Partnership (FIP)

Date: 31st March 2011

Speakers:Ms. He Xin | Deputy Head, Department Law & Business, Delegation of German Industry & Commerce, Beijing; Mr. Guido Greber | Founder and Managing Director, Guido Greber Management, Ltd., and Delegate of the Board of Directors | SwissCham Beijing in Tianjin

The vivid, intensive and fun session that inspired over 30 participants was a great success in broadening the platform for young professionals and entrepreneurs in the region and will make it hard to top for a follow-up event, though the German Chamber of Commerce in Tianjin and its partners are looking forward to the successful continuation and establishment of this Young Professionals series.

Going into BusinessYoung Professionals Luncheon

2011 June - July 49

www.china.ahk.deTIANJIN AROUND TOWN

Tianjin Concession Tour19th March 2011 On March 19th, the German Chamber of Commerce Tianjin in cooperation with the American Chamber and European Union Chamber invited to an informative tour of Tianjin’s historical buildings in the foreign concessions. The tour led through the former concession territories of Japan, France, Britain, Germany and the U.S., where participants could catch a glimpse of Tianjin’s older days.

Biz Socializer Inter-Chamber Networking Tianjin15th March 2011 | Astor HotelOnce again, Tianjin’s biggest networking event attracted people from Beijing, Tianjin and beyond. Making its first ever appearance at the famous Tianjin Astor Hotel, the attendants mingled below the glass roof of the Victorian Lounge and enjoyed an exquisite and atmo-spheric evening of relaxed after-work business networking.

2011 June - July 49

CHAMBER NEWS

50 June - July 2011

Self-made Entrepreneurs Share Personal Stories

SHANGHAI PAGESSH

AN

GH

AI

GCC BOARD

* All-China Board Member

SGL Carbon Far East Ltd. Managing Director Dr. Guenter HermannVice Chairman

Deutsche Bank (China) Co., Ltd.Director – Head of Corporate Banking and Coverage, MNCMr. Andreas OdrianTreasurer

German Chamber ShanghaiManaging DirectorDelegation of German Industry & Commerce ShanghaiChief RepresentativeMr. Jan Noether

Freudenberg Management (Shanghai) Co., Ltd.General ManagerMr. Rolf H. Köhler

ProConTra Ltd. Chairman & Managing DirectorMr. Thomas Dorn

Nokia Siemens Networks (Shanghai) Ltd.President & CEODr. Fan Zhijian

POLYMAX (Shanghai) Trading Co., Ltd. Chairman of the BoardMr. Ulrich Mäder

Management Engineers China Ltd. Managing Director Ms. Brigitte Wolff

Event: Wirtschaftsjunioren: Starting and Running a Successful Business as a Foreign Entrepreneur in China

Date: 24th March 2011

Speakers: Mr. Peter Hill | CPRW, CERW, Principal Consultant, P.H.I. Consulting; Mr. Alessandro Duina | Partner, The JLJ Group

Chair: Mr. Thomas Seifert | General Manager, avenit Software

Ernst & Young (China) Advisory Ltd.Partner and Head of GBC China Mr. Titus Freiherr von dem BongartChairman Wirtschaftsjunioren

The Wirtschaftsjunioren started the day early on 24th March 2011, gathering over breakfast for an entrepreneurship workshop. Two speakers shared their personal journeys as foreign entrepreneurs in China.

The first, Mr. Peter Hill, runs a career advising firm which he characterises as a “solo-preneurship” dream. His is a story of progressive organic growth. Born and raised in Hawaii, his taste for entrepreneurship slowly emerged as he started teaching English in Japan as a freelancer. Later, he entered the airlines industry as a flight attendant and ran a small business on the side, putting his writing skills to use and providing “Distinguished Resume Services”. His company took a turn in 2006, when successful businessman Mr. George Ing became his mentor. With his help, Mr. Hill rebranded his Resume Service into his current consultation company and entered the Shanghai market. During his speech, Mr. Hill highlighted the importance of word of mouth advertising (the source of 80% of his clients), and recommended the book “The One Minute Entrepreneur” by Mr. Ken Blanchard.

The second speaker, Mr. Alessandro Duina, is a strategy consultant who helps foreign companies come to China. When he first arrived in Shanghai, he had two intuitions: he did not want to go back to corporate, and he felt like he had the tools and methodology to run his own business , but d idn’ t know the territory. In his case, Mr. Duina was fortunate to find the right Chinese partner with similar goals and a matching personality type to fast-track his initiative in the China market. Mr. Duina warned the audience against ten entrepreneurial pitfalls: improper research, under estimating challenges, over estimating revenue and under estimating costs, under estimating the importance of cash f low, lacking commitment, choosing the wrong partners,

opting for a weak or wrong business model, lacking management or execution skills, the inability to understand local conditions, and the inability to cope with stress. He also offered his top ten advices: finding the right partner, minding the size of operation and office, remaining flexible, having a long-term vision but staying fluid, build and stay focused, build reputation over time through strong execution, know when to go for speed instead of perfection, stay humble and keep learning, stay positive and persistent, and create a balanced and sustainable system for yourself.

The speeches were followed by a vivid Q&A session, and participants continued to enjoy a delicious Western breakfast as they networked.

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Turning waste water into gold

www.china.ahk.de

Event: GC Roundtable: “Hochgeschwindig-keit” auf Rad und Schiene

Date: 24th March 2011

Speaker: Mr. Thomas Dorn | Chairman & Managing Director, ProConTra Trading Ltd.; Ms. Hongying Zhu | General Manager, Roll-ing Stock, Siemens Ltd.; Mr. David Schulte | Getzner Werkstoffe

Chair: Mr. Kurt Fasser | General Manager, ConMoto

Event: Suzhou Special Workshop: Water Treatment

Date: 16th March 2011

Speakers: Mr. Ian Burke | Managing Director, Kurion Technologies Ltd.; Mr. Uwe Hanschke Managing Director | Kurion Deutschland Ltd.; Mr. Matthias Fickenscher | Managing Partner, H2O GmbH Process Water Engineering

Chair: Mr. Georg Hofaecker | General Manager / CEO, PWO High Tech Metal Components (Suzhou) Co., Ltd.

The huge size of the Chinese railway industry, its future growth and resulting b u s i n e s s o p p o r t u n i t i e s f o r G e r m a n manufacturers and suppliers were topic of the GC Roundtable March, moderated by Mr. Kurt Fasser. Mr. Thomas Dorn, one of the evening’s three speakers, introduced the matter by giving an overview about past developments and future plans of the railway industry in China. With a few numbers he conveyed an overall impression of the industry’s potential, hence railway system expansion of about 41.000km in conventional lines, 19.000km in double lines and 16.000km in special lines is being planned by the Ministry of Railway until 2015 (for comparison, the length of Germany’s railway network in 2008 was approximately 34.000km ).

The discussion that followed the initial presentation was then divided into three parts, the first tackling the area of rolling stock, where Ms. Hongying Zhu, General Manager of Rolling Stock, Siemens, gave a short speech with insight into a component manufacturer ’s exper iences . Second and third points were infrastructure and communication on track, with Mr. Schulte from Getzner Werkstoffe sharing his expertise regarding the former. He especially addressed problems generated by the rapidness of railway construction: a lack of quality of railbeds and therefore increased incidence of track subsidences as well as a

As a special event, the German Chamber organized a workshop on water treatment in cooperation with POW High Tech Metal Components in Suzhou in March. Mr. Burke and Mr. Hanschke from Kurion and Mr. Fickenscher from H2O GmbH came extra from Germany to Suzhou to give a presentation on how companies can actually profit from recycling their waste water.

B o t h , K u r i o n a n d H 2 O p r e s e n t e d participants with an interesting and most of all cost saving alternative to waste water treatment. H2O’s machines can be used to recycle waste water to avoid substantial destruction cost. Kurion, on the other hand, offers opportunities to filter raw material such as copper or nickel from waste water. After the presentation, participants then

Railway Transportation Moves – Especially Germans GC Roundtable

lack of quality of the rails itself, leading to higher abrasion of tracks and consequently also of train chassis.

During further progress of the evening questions about operating and lifecycle costs , profi tabi l i ty, maintenance and manufacturing details were being answered. Germans, which are experienced with the almost proverbial delay of trains in Germany will be surprised by the fact, that 97% of all high-speed trains are said to be punctual, in spite of the sheer size of the Chinese railway system and the above mentioned problems

Mr. Fasser summed up the evening stating that German technology is implemented in China into an operating model, from which a lot can be learned. Further innovations made in Germany might not be a big business there, but if being implemented in China have a chance of becoming a big success here.

had the opportunity to see the previously presented technology in operation, since PWO has one of H2O’s machines installed at their Suzhou plant.

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New Five-Year Plan Sets Course for China

The March Chamber Meeting was dedicated to mapping out the twelfth Five-Year Plan (2011-2015). After a short introduction by Dr. Wilfried Eckstein, Consul at the Cultural and Education Section of the German General Consulate Shanghai, about the further continuation of the project “Germany and China – Moving Ahead Together” the evening’s guest speaker, Director of McKinsey & Company, Dr. Jonathan Woetzel decoded the new Plan and described the impacts for industries.

According to Dr. Woetzel, China has seen spectacular evolution in the past three decades. In this process, the Five-Year Plans have transformed from plans to guidelines, reflecting the role changes of all levels of Chinese government. MNCs now need to grasp the central government’s guideline, but develop a tailor business plan at the local level and work with the local government to maximize local support. Essentially, Five-Year Plans provide rules of thumb for internal consumption and reaching targets ultimately depends on the local government’s accountability.

In the twelfth Five-Year Plan, the Chinese government addresses the imbalances in China’s development model. Moving forward, they want to realign economic development with environmental targets and social well-being, and manage six core issues for sustainable growth. These are to enhance international competitiveness, to distribute income equitability, to balance investment & consumption, to achieve sustainability, to boost job creation and to close the rural and regional investment gap.

Dr. Woetzel believes China will achieve a more balanced development by 2015 if the Plan is successfully implemented. The growth target is set at 7% but McKinsey projects 8-9%, down from 11.2% in the eleventh Five-Year period. The company also predicts private consumption will be

the leading engine of growth, increasing 33% of GDP in 2010 to 35% in 2015, and 42% in 2025. Western regions should outpace East regions on GDP growth in 2011-2015 by 1-2%. McKinsey also forecasts the contribution of the service sector in GDP to grow from 43% in 2010 to 47% in 2015, and 54% in 2025. In terms of sustainability, Dr. Woetzel believes China has the potential to reduce energy intensity by 25% by 2015, but the government has set a relatively conservative target of 16%.

When the impact of the twelfth Five-Year Plan on industries is evaluated, five groups emerge from the results. The first group encompasses “new strategic industries”, such as high-end equipment, IT hardware and new energy cars. These were singled out with the aim to leapfrog and achieve global leadership in technology and commercialisation. The second group can be called the “domestic consumption engine”, which includes consumer electronics, tourism and all key industries that will drive domestic consumption. The third group involves “structural reform”, such as commercial banking and real estate. These are fundamental to economic and social health and must be structurally reformed. The fourth group is about “innovation and upgrade” and includes industries such as shipbuilding and steel. These are mature manufacturing industries that must aim to close the gap with established global leaders through innovation and upgrade. Finally, the fifth group revolves around monopolistic state owned enterprises managing national infrastructure networks, responsible for delivering planned projects.

Dr. Woetzel concluded that China is in a shaping moment that is dynamic. Companies should get involved in the national dialogue because officials are willing to listen and take note. The Meeting ended with an engaged Q&A session.

Event: Chamber Meeting: The 12th Five-Year Plan

Date: 31st March 2011

Speaker: Dr. Jonathan Woetzel | Director, McKinsey & Company

Chair: Mr. Ro l f Koehler | Genera l Manager, Freudenberg Management (Shanghai) Co. Ltd.; Board member, German Chamber of Commerce China | Shanghai

CHAMBER NEWS

Trade Fair

The 12th German Chamber Trade Fair was held right before the Chamber Meeting. Member companies offered their services & products, covering everything from food & beverages, to computer and machinery manufacturers and consultants. Not only participants of the trade fair enjoyed this opportunity to network and socialize but also attendees of the Chamber Meeting who came extra an hour earlier.

Chamber Meeting

2011 June - July 53

www.china.ahk.de

Roland Berger Presenting His View on World Economy

In cooperation with the European Union Chamber of Commerce, the German Chamber of Commerce hosted an evening with Prof. Dr. Roland Berger, founder of Roland Berger Strategy Consultants, to talk about the world economy and the recent success of the German economic model.

Mr. Berger began his presentation by highlighting the importance of globalisation as the main driver for economic growth. Therefore the international community should do everything to prevent protectionism and currency wars and instead push for free trade. After a dip due to the economic crisis, labor markets, stock markets and global business climate have all developed positively and are almost back at pre-crisis levels. Despite the promising signs, there are still a couple of factors, like the current problems in the euro zone or macroeconomic imbalances that put the recovery in danger. In his following long-term economic outlook, Mr. Berger focused on current megatrends that will have a strong influence on future developments.

In the key part of his presentation, Mr. Berger introduced the strength of the German economic model and the key factors that have contributed to the strongest economic growth since reunification. Germany’s strong industrial sector, especially small and medium-sized companies operating in niche markets and its focus on exports have had a strong influence on its economic success. Furthermore, due to the German education and apprenticeship system the German workforce is well-educated and flexible. An excellent infrastructure and necessary reform over the past years are additional growth drivers. As a result not only the economy is growing; Germany’s competitiveness has increased, business climate is on an all-time high, consumer confidence has recovered and the German stock market outperforms other markets.

In the following Q&A session Mr. Berger extensively answered all the questions raised by the audience and offered his opinion not only on economic questions but also on his very own person. When asked, what kind of economic model would be best for China, Mr. Berger

Event: Joint Chamber Event: The World Economy and Applying European Economic Models to China

Date: 28th March 2011

Speaker: Prof. Dr. h.c. Roland Berger | Founder and Honorary Chairman, Roland Berger Strategy Consultants

Chair: Mr. Piter de Jong | Chairman Shanghai, VP, European Union Chamber of Commerce in China

clearly stated, that even though the German economic model might have proven to be successful for Germany, China should not adopt the German model or any other foreign model for that matter. Instead China should develop its very own economic model. Mr. Berger was also certain, that China will go its way. As an answer to the question of how long it will take until Chinese companies will start to compete in Western markets, Mr. Berger said that this is already the case. However, as competition usually leads to wealth this should not be seen as a threat but much rather an opportunity.

Special Event

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Credit Payment and Management Behaviour

Mr. Benjamin Gan, Deputy Regional Man-ager at Coface - Asia’s biggest credit insur-ance provider, presented results of their yearly survey about credit payment behav-ior and credit management experiences by companies in China. The poll took place between October and December 2010 and consolidated answers from 1071 companies - most of them private owned and from the manufacturing field but representing a mul-titude of industries, from machinery, textiles, transportation to cosmetics and more.

The presentation of the results was divided in four parts. The first part dealt with the topic of payment overdue. Here, the situ-ation improved significantly compared to 2008, although average overdue time is seen to shift towards prolongation which means to more than 60 days in duration. In more than half of the cases customer’s financial difficulties were the reason for payments not being done on time, closely followed by customer’s management chaos and lack of morality and fraud.

The analysis of the problems was followed by a closer look on possible counteractions – namely credit management as a tool to miti-gate credit risk. Among others, the survey identified the most important credit man-agement processes and tools. The third part of the presentation showed perspectives on these topics for 2011. Withdrawal of govern-ment stimulus policies and tighter monetary policies and bank lendings were named by companies as main factors affecting business performance this year. Together with a rising competition through strengthening Chinese domestic companies and a higher inflation, the industry’s negative opinion about future developments might not surprise: more than 40% of the survey participants believe the overdue situation to take three years or longer to improve compared to an additional

SHANGHAI PAGES

Event: Controlling Workshop: Payment Risks of the Fast-growing Dragon

Date: 13th April 2011

Speaker: Mr. Benjamin Gan | Deputy Re-gional Manager, Risk, Greater China, Coface

Chair: Mr. Jens-Peter Otto | Partner, PricewaterhouseCoopers

one-third believing it to never improve at all.

Both, speech and survey were summed up by a detailed breakdown of overdue related data into the industry sectors represented by the participants. In the final Q&A round, it was again highlighted that of all company types, state owned and most of all private owned companies have the highest overdue rates according to the study. This might suggest that, to avoid overdue problems altogether, much would speak for doing business preferably with Joint Ventures and WFOEs. It could pay off better - literally.

Following up on the successful Sino-German Job Fair series in Shanghai the AHK and German Industry & Commerce in Shanghai (GIC) par tnered with CAMPUS CHINA in Germany to organize the CHINESE TALENT DAYS on April 15th and 16th, 2011 in Cologne.

Germany remains a popular destination among Chinese students going abroad. With a number of almost 30,000 they are now representing the biggest group of foreign students in Germany. As they are perfectly suited to bridge the gap between German company headquarters and their subsidiaries in China, companies are increasingly trying to reach out to those students and graduates. The CHINESE TALENT DAYS provided those companies a chance to exclusively meet and interview Chinese students, graduates and young professionals. The huge response to this first-time event emphasized the necessity for such a platform. Around 50 German companies including multinationals like Audi, BASF, BMW, Bosch, Carl Zeiss, Continental, Daimler, Porsche, Skoda und Volkswagen as well as medium-sized enterprises who are internationally active, participated in the event and offered more than 800 vacant positions, both in

Controlling Workshop

Meeting Point Chinese Talent Days

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Even t : Au tomo t i ve Summi t : AUTO SHANGHAI 2011 – Challenges for the Automotive Industry in China

Date: 18th April 2011

Speakers: Mr. Klaus Bräunig | CEO, VDA (Association of the German Automotive Industry); Mr. Stefan Möbs | Deputy Consul, German General Consulate Shanghai ; Dr. - Ing . Ingo Ramesoh l |General Manager E lec tr ic Vehic le & Hybrid Technology, UAES (United Automotive Electronic Systems); Ms. Sonja Kurono | Managing Director, China Strategy Partners; Dr. Gerhard Nowak | Managing Director, Management Engineers China

Chair: Ms. Brigitte Wolff | Managing D i r e c t o r/Co-Owner, Managemen t Engineers China

Before the official start of the Auto Shanghai 2011 on April 21st, the German Chamber organized a special event in cooperation with the VDA, the Association of the German Automotive Industry on German Original Equipment Manufactures (OEMs) and suppliers in the Chinese automotive market.

After a brief introduction by Ms. Wolff, Board Member of the German Chamber of Commerce, Mr. Möbs, Deputy Consul General at the German General Consulate in Shanghai, addressed the participants and wished them a successful time in Shanghai and during the Auto Show. This was followed by Mr. Bräunig, CEO of VDA, who presented some highly interesting facts and figures about the German car industry and China. For the first time, in 2010 German OEMs produced more cars outside of Germany than at home. With 1.8mn cars produced, China has now become the new home market for German manufacturers. The participation of 28 German companies at the Auto Shanghai 2011 indicates that. Mr. Bräunig also stressed how important German small and medium-sized enterprises for the automotive industry are. Since these companies need to be a player on the Chinese market, the VDA supports them by setting up a joint booth at the Auto Shanghai helping them to compete in the Chinese market.

In his presentation Dr.-Ing. Ramesohl, General Manager Electric Vehicle & Hybrid Technology, United Automotive Electronic Systems, talked about the market potential of vehicles with electronic or hybrid engines in China. As there are more than 70mn of those vehicles in the country and more than 50% of the oil in China is imported, there will be a growing demand for these cars in the years to come. Despite numerous government support programme to boost sale of hybrid cars, UAES still faces high engineering costs but low sales volume in the Electric vehicle and Hybrid Technology sector.

Ms. Sonja Kurono, an expert in the automotive sector with several years of experience in Asia, talked about customer profiles in the Chinese automotive industry. With more than 22mn new driver’s licenses issued every year and despite the common believe, Ms. Kurono does not foresee a decreasing demand for cars any time soon. In the contrary, she expects increasing congestion in downtown areas which might turn into an issue. Having presented some compelling facts and statistics

Challenges for the Automo-tive Industry in China Automotive Workshop

about Chinese buyers she then pointed out ways for German OEMs to further strengthen their market share by adapting to Chinese buyers.

Dr. Nowak from Management Engineers identified in his presentation five challenges for the automotive industry in China: companies facing declining growth rates, challenges for the supply chain and for suppliers due to new production facilities of OEMs in the west, price competition and an increase in labor costs combined with a lack of skilled workers. Even though these challenges should not be taken lightly, they also provide a number of opportunities. According to Management Engineers, OEMs and suppliers may achieve optimisation potentials in the areas of production, supply chain and engineering.

In the following Q&A session all speakers were available for questions from the audience. Participants were especially interested in their predictions for future developments in the automotive industry.

Germany and China. In order to support them in finding the right talents an online job board and matchmaking tool were specifically developed for the event. HR personnel of participating companies could then search and contact potential candidates for interviews at the event in advance.

T h e i m m e d i a t e f e e d b a c k w a s exceptionally positive: more than 1,300 students and jobseekers followed the call and participating companies were impressed by their overall qualifications, preparation and self-presentation. Due to this overwhelming success, the second CHINESE TALENT DAYS are already in plan.

Event: Chinese Talent Days

Date: 15th–16th April 2011

Chair: AHK, German Industry & Commerce Greater China | Shanghai (GIC), CAMPUS CHINA in Germany

Meeting Point Chinese Talent Days

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German companies doing business in China are continuously under pressure to find and hire highly qualified personnel. Especially engineers are in high demand. As the pool for such personnel is limited and companies are increasingly aware of the necessity of employer branding to attract such talents ahead of time, the Delegation of German Industry & Commerce Shanghai (AHK), German Chamber of Commerce Shanghai and German Industry & Commerce Greater China | Shanghai (GIC) have established a series of Sino-German Job Fair Events in cooperation with other institutions.

6th Sino-German Job Fair

The German Chamber o f Commerce Shanghai, the GIC Shanghai and the German Centre Shanghai jointly hosted the 6th Sino-German Job Fair from March 18th to 19th 2011 - and attracted around 1400 participants. Both students and professionals spoke with 52 exhibiting German companies in order to find their dream job out of over 500 posted job offers. Universities with a curriculum featuring a strong German background and practical training such as Tongji, USST, and Jiaotong University were also presenting themselves during the fair. The participating companies were from larger, well-known multinational companies such as Continental Automotive Asia Pacific to small and medium-sized enterprises.

During the opening ceremony on the first day, Mr. Christian Sommer, Chairman of the German Centre, Mr. Christoph Angerbauer, General Manager of GIC Shanghai, and Ms. Anne Lersch, Manager for Employer Branding & Recruiting China at Continental Automotive, welcomed the participating students. They encouraged them to use this chance to build up first-hand contacts to the German industry in China for future employment opportunities. Again, the

The Chamber Meeting began with the usual in-troduction of new members in Shanghai. After that Mr. Titus von dem Bongart officially bid farewell to Mr. Peter Kreutzberger, who will be leaving Shanghai for his new role at the Ger-man Embassy in Beijing. In the past years he has been active as Vice Consul General at the German General Consulate Shanghai.

The speaker of the evening Mr. Ye Shaojun, an AREVA Representative in Shanghai, gave a status quo about the electricity demand in China. Being active in the nuclear business since more than 15 years, he now possesses profound knowledge and experiences in dif-ferent parts of this industry. Starting with outlining the middle and long term goals of the energy strategy study report (CAE) Mr. Ye Shaojun gave a rough overview on the present situation in China. Factors like GDP, population, industry structure and residential consumption will lead China to a demand of more than 10.000 TWh in the year 2050 which is a growth of 176%. To cover this need an en-ergy mix with a merge of renewable energies such as wind- and hydropower as well as nuclear energy and coal - which today covers about 80% of the demand - is planned. The re-

Focus: Chinese Studentsand Young Professionals

Electricity Development in China – Demand and Solution

overall feedback from the exhibitors was very positive. The companies particularly praised the high quality of the job seekers who were well prepared and presented themselves in a very professional manner. With 49% of the job seekers being invited for further interviews this job fair proved to be highly successful. Due to this positive result some of the companies already expressed their intention to participate in the next Sino-German Job Fair, which will be held from September 23rd to 24th, 2011.

Event: 6th Sino-German Job Fair

Date: 18th–19th March 2011

Speakers: Mr. Christoph Angerbauer | General Manager, German Industry & Commerce Greater China | Shanghai; Mr. Christian Sommer | Chairmain, German Centre Shanghai

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Coal is a major energy source in China, but the utilization of it brings along high pollution and has severe impact on the environment. Consequently, renewable energies should gain more attention. However, why is it, that China produces more than 90% of all photovoltaic (PV) cells and uses almost none? The discus-sion evolved around issues and questions related to the imbalance of the PV field. Mr. Henning Schulze from Q.Cells, one of the leading PV companies, was the guest and shared with the attendees his insights of that industry. As one of the main reason for the low usage of PV plants high costs in comparison with conventional energy sources were identified. Coal is available abundantly and the infrastructure for us-age already established, why should Chi-na shift away from something so cheap and easy. Incentives by the Chinese Gov-ernment for using PV modules do exist, e.g. lower interest rates for financing on the manufacturer’s side or on the buyer’s side subsidies for companies installing PV modules on their plants – but obviously, this is not enough to trigger an enduring interest in this technology in China.

Still, even without China, the worldwide PV market is of an attractive size. This potential naturally brought about the discussion of PV fakes made by Chinese and it has to be remarked that indeed big Chinese manufacturers – highly success-ful and competitive, even in quality – are now facing major issues of fakes threaten-ing their profit. With them starting to ac-tively combat their own national copycats, further developments in terms of general copyright and a rise in awareness for this topic can be speculated on in the future.

Electricity Development in China – Demand and Solution

The Future of the Photovoltaic Market

Event: Chamber Meeting

Date: 28th April 2011

Speaker: Mr. Ye Shaojun | AREVA Representative in Shanghai

Chair: Mr. Titus von dem Bongart | Partner and Head of GBC China, Ernst & Young (China) Advisory Ltd. / Chairman of the Board, German Chamber of Commerce in China l Shanghai

Event: GC Roundtable: Schmierlage im Solarstrom

Date: 25th April 2011

Speaker: Mr. Henning Schulze | Managing Director Greater China, Q.Cells

Chair: Mr. Kurt Fasser | General Manager, ConMoto

www.china.ahk.de

newable energy will start providing 30%-45% electricity between 2030 and 2050. The key role of coal energy will not change in the next years due to China’s significant resources of coal. However, the consequences are very se-vere and China has yet to find a proper long-term solution to combat the pollution. China is establishing new and large power plants located close to the coal mine, instead of us-ing small and old power plants.

Mr. Ye Shaojun talked in the second part of his speech about the nuclear market and situ-ation in China. Compared to other western countries the nuclear reissue is rather limited. The NDRC announced that the nuclear pow-er will reach 40 GW in 2020, which means an increase of 4%-5% from the total installed capacity. Taking the recent catastrophe in Ja-pan as an example Mr. Ye Shaojun explained which problems and challenges occurred and finally concluded that maintaining transpar-ency, safety and security in the nuclear busi-ness are essential and necessary.

After a lively Q&A session, guests had the op-portunity to exchange their experiences over a glass of wine in a relaxed atmosphere.

Chamber Meeting GC Roundtable

What else can be and was said about the future of PV? On the one hand, there is the fact, that Chinese companies became leading players in the PV market. However, accord-ing to official statements only a maximum of 3% of their turnover is invested in R&D, numbers of even less circulate. On the other hand, not only is a green consciousness in the general public nowhere to be seen but in comparison to Germany the amount of isolated houses is small, an end-user mar-ket size like the German one unlikely do develop. Questions about the future remain open, however, the evening and the discus-sion round was closed with a nice buffet and much networking among the guests.

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“Deutscher Stammtisch”12th April 2011 | Paulaner BräuhausThis time Stammtisch regulars met Chamber Board Member Mr. Ulrich Mäder with whom they engaged in deep conversations. Besides that they enjoyed typical German dishes and drinks.

German Club Explores Shanghai’s Architecture8th April 2011 | Puxi The German Club Shanghai (DCS) traced the Shanghai landmarks of Hungarian architect L.E. Hudec. As part of its recent travel activities, the DCS has explored many of the Hudec’s buildings around the city in search of the heritage the architect left. The viewing of a documentary featuring original film material shot by Hudec himself rounded off the Hudec-related activities of that day. The German Consul General, Dr. Wolfgang Röhr, and the Slovak Consul General, Mr. Pavol Sykorcin, were among the guests during this special event.

Happy Hour25th March 2011 | 789 BarThis year’s first Happy Hour took place on the 65th floor of the Le Meridien at the 789 Bar. With perfect weather conditions participants enjoyed a breathtaking 360° view of Shanghai. Guests were treated to a canapé buffet, an extensive offer of drinks and Einbecker Beer and DJ Scotty set the right mood with a mix of lounge music and house music as the night progressed. Happy Hour was supported by Einbecker, Jägermeister, LeMeridien’s 789 Bar as well as the German Centre and the German Club.

Tanz im May7th May 2011 | German CentreOver 400 guests danced the night away at the "Dance in May" in the transformed conference room of German Centre Shanghai. The Live Band "Hattinger Buam" from Austria, a sand artist and a laser dancer kept everyone cheering and the delicious buffet, Maibowle and Maibock strong beer kept revelers going well into the wee hours of the next morning.

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How to Protect Intellectual Property Rights in China?

In China, counterfeits are almost available everywhere. Even abroad, fake products are overflowing wholesale and retail traders, and the innocents are ignorant consumers. The market of counterfeits causes an enormous damage to the reputation of popular brands and lets their turnovers drop. There are some progresses against counterfeiting though, but enterprises and industries are facing increasing difficulties protecting their Intellectual Property Rights. How can they do that effectively?

In cooperat ion with the Br i t i sh and Australian Chamber of Commerce, Mr. Bob Youill, a highly qualified and experienced risk expert with over 30 years of senior-level experience in investigations and risk consulting, was invited as the guest speaker for that event. After giving an introduction into “Bump and Run” of Chinese traders and

MTU Maintenance Zhuhai Co. Ltd.President & CEOMr. Holger Sindemann* Chairman

Häfele GmbH & Co KG, Rep. Office ShenzhenManaging Director Mr. Stefan Rosenbohm Treasurer

EWIKON Hotrunner Systems (Shenzhen) Co. Ltd.Managing DirectorMr. Rüdiger W. Kümmerle

Siemens Ltd., ChinaSenior Vice President and General Manager Region South ChinaMr. Nong Keqiang

C. Melchers GmbH & Co. KGChief Representative Guangzhou & Chongqing Ms. Renate Tietjen

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Event: Networking with Universities

Date: 25th March in Guangzhou

Chair: Mr. Jens Hildebrandt | General Manager, GIC Guangzhou* All-China Board Member

German Companies Meet Universities in South ChinaEach year, more than 5mn Chinese graduates seek for a suitable job. The qualifications of these graduates differ from one another. As only approximately 20% of them are qualified for a job, it is difficult to filter them out of the large mass. Especially in times of human resources shortage in South China, companies have to solve this challenge in cooperating with universities. On 25th March, German companies had the opportunity to meet universities from South China at the Garden Hotel, Guangzhou. About nine companies have participated in this exclusive occasion, meeting representatives from five universities and getting to know them personally. On the other hand universities could evaluate the companies as employers in terms of their reputation. During a tea break and at the end participants had the chance to network and actively exchange information with each other.

Herrenknecht (Chengdu) Tunnelling Equipment Co. Ltd. General ManagerMr. Bai Kun Honorary Board Member Southwest China

Event: Brand Management Seminar – Designing and Implementing a Strategic Brand Identity Programme Going Beyond the Bump & Run Approach

Date: 23rd March in Guangzhou and Shenzhen

Chair: Ms. Heidrun Buss I Executive Chamber Manager; Mr. Max Zenglein | Regional Manager, GCC • South & Southwest China

how Chinese handle Intellectual Property officially he then showed the participants which strategies function best to protect Intellectual Property Rights. In the end, the participants were eager to share their experiences and discuss them with fellow participants.

Discussion about Intellectual Property Rights in the international context.

Representative of Sun Yat-Sen presents the graduate’s yearbook.

2011 June - July 61

Event: Visa Regulations and Procedures

Date: 30th March 2011 in Shenzhen

Speaker: Ms. Anja Schmidt | Vice Consul, German General Consulate in Guangzhou Chair: Mr. Max Zenglein | Regional Manager, GCC • South & Southwest China

Corporate Culture – Built to last

Visa for Business Trips to Germany

Building a corporate culture within any enterprise requires a long process and common understanding about where the institution is moving towards. Whereas the culture in each individual reflects a complex aggregation of different traits, such as language, religious beliefs, values or norms, a corporate culture strives to build a uniform “language” amongst management and staff. In recent years, companies worldwide embrace their mission statements – their philosophy – across borders to achieve similarity or even equality between their company’s branches.

Participants, who attended the April’s “Meet the Trainer” event at the GCC office in Guangzhou, learned about the different aspects of corporate culture. Mr. John Dorris, a consultant, coach and trainer to many well-known clients, introduced the group to this multifaceted topic through numerous case studies and diversified team work. He thoroughly explained the importance of this topic and the necessary means for its implementation in an enterprise. Mr. Dorris gave insightful advice to those interested in an implementation in their own company, e.g. mission statements can be bold missions

For the first time the GCC • South & Southwest China had the pleasure to host the event “Visa Regulations and Procedures” in Shenzhen. Obtaining visas for Chinese staff on business trips to Germany and the Schengen area is an essential concern of German business enterprises operating in South China. Thanks to the outstanding presentation by Ms. Anja Schmidt, the Vice Consul at the German General Consulate in Guangzhou, this seminar provided companies with first hand information on the regulations and procedures about how to apply for a Schengen business visa.

Ms. Anja Schmidt is in charge of the visa section since October 2010 and oversees and supervises all visa applications for Germany. In her presentation Ms. Schmidt gave a detailed overview on the visa demand in Guangdong, the regulations regarding the Schengen (business) visa. She also addressed the general application procedures at the Consulate in Guangdong. After her presentation, Ms. Schmidt was not only available to answer questions of the many participants but took care of specific

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Even t : Mee t t he Tra ine r o f Apr i l – Introduction to Corporate Culture

Date: 15th April in Guangzhou

Speaker: Mr. John Dorris |Founding Associate, Sino Associates Global Limited

Chair: Ms. Leonie Lin |Project Manager Recruitment & Training Services, GIC Greater China, Guangzhou

Ms. Anja Schmidt explains the requirements for a business visa application.

to stimulate progress but should not exceed five items. A corporate culture also roots in the beliefs of the management about their company’s long-term development and expresses the core purpose, values, and ideology of the institution.

By motivating the participants to be actively involved in team work, presentations and dynamic discussions, the multicultural group was eager to interact with each other and learn from each other throughout the workshop.

individual demands. The seminar ended with a vivid discussion on personal “visa-experiences” and some visa regulations in general.

Intercultural group interaction.

A vivid training by John Dorris.

CHAMBER NEWS

62 June - July 2011

Internal Training - A Plea for Using Your ResourcesHR Roundtable

Event: HR Roundtable – Conducting Training Utilizing Internal Resources

Date: 19th April in Shenzhen; 20th April in Guangzhou

Speakers: Ms. Angela Liu |HR Manager, Melitta; Ms. Lena Wu |HR Manager, IKA Works

Chair: Mr. Max Zenglein | Regional Manager, GCC l South & Southwest China; Mr. Jens Hildebrandt | General Manager, GIC Greater China, Guangzhou

Event: General Manager Roundtable Guangzhou

Date: 26th April 2011 in Guangzhou

Chair: Mr. Jens Hildebrandt | General Manager, GIC Guangzhou

First GM Roundtable in GuangzhouDid you ever think it is necessary to ban mobile phones from sensible or critical areas within your company? The experiences shared by one GM at the first General Manager Roundtable in Guangzhou made everybody think twice about internal security and data protection.

Ten GMs eagerly discussed this and other practical experiences and anecdotes while compiling a list of 2011’s hot topics and business challenges. Not only labour force shortages, accelerating wages and the increasing knowledge of legal rights by their employees were topics of high

interest. The GMs were also concerned about company internal data transfer and the protection of their Intellectual Property Rights. After determining what topics are crucial for the prospective GM Roundtables, the participants started with the most important one on the spot – money. The informal and confidential benchmark of salaries and related aspects fuelled extensive discussions.

We would like to thank the participants for their valuable input and for openly sharing best practices. The GCC • South & Southwest China hopes to successfully

i m p l e m e n t t h e G M R o u n d t a b l e i n Guangzhou as an eminent platform for GMs in the greater Guangzhou area to discuss issues faced in 2011 and beyond.

Training employees is a task that oftentimes becomes subordinated, especially when companies cannot see the results right away. Throughout discussions, the GCC’s HR Roundtables of April addressed the topic and evaluated the results of the first corporate training survey of 2011.

18 par t i c ipants took par t in the HR Roundtables, carefully listening to the presentation of Mr. Jens Hildebrandt, sharing the key findings of the survey, which reviewed training activities of the past year. The results showed that training is a useful management tool, mostly needed for recruits or when there are new techniques of a professional skill to learn. The survey also reflected the momentary needs for advanced management and conflict management skills.

Both speakers, Ms. Angela Liu in Shenzhen and Ms. Lena Wu in Guangzhou then stated their points of view by taking their companies as examples. The adjacent d iscuss ions addressed the d i fferent training measures of the attending HR Roundtable companies. Throughout both HR Roundtables it was pointed out that it is difficult to recognize and analyze the exact training needs and select the appropriate trainings. Additionally, measuring and evaluating the effectiveness of the training remains a challenge. Many companies, however, see advantages in both, external and internal trainings whereas internal trainings are easier to subsequently evaluate in the groups’ opinions.

SOUTH & SOUTHWEST CHINA PAGES

The group was eager to discuss training measures of their own companies. Mr. Jens Hildebrandt explaining the outcomes of the survey.

2011 June - July 63

SOUTH & SOUTHWEST CHINA AROUND TOWN

Inter Chamber Networking17th March 2011 I GuangzhouThe first Inter Chamber Networking of the year 2011 of the European, British, French and German Chamber of Commerce in Guangzhou took place in China Hotel, a Marriott Hotel. More than 50 guests joined and enjoyed the lounge like atmosphere with the cozy interior and a jazz band playing.

Stammtisch for Young Professionals and Students14th April 2011 I GuangzhouStammtisch meetings are a regular and common event all over Guangzhou, especially every second Thursday of the month. This time, young professionals and students met at Zebra Star. The occasion also attracted many new attendees.

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