China Brief November 2011 by Ryan Dutcher

w w w . A m c h a m c h i na . o r g

Your Feedback, Our Responses

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AmCham-China's 2011 Membership Satisfaction Survey Highlights

Inside: Highlights from the chamber's annual ball

Win with China 10 Years into the WTO

ent: Sustainable investm ow kn to what you need HR strategies for branding, recruiting and retaining

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WHO OUR MEMBERS ARE of respondents self-identified as corporate members

62%

self-identified as Chinese citizens

52%

RATED AS VALUABLE

joined to expand professional and social contacts

joined to increase access to events that could enhance their industry expertise and professional skills, and provide information to make them more competitive

joined to engage with the Chinese and US governments on policy issues

69%

respondents

networking

respondents

information

rated AmCham-China’s % China Brief monthly magazine, China Wire rated AmCham-China’s daily news summary, government advocacy and China Bulletin and White Paper weekly as valuable e-newsletter % as valuable

rated AmCham-China’s events as valuable

170

events

business visa program

40% have been AmCham-China members for seven or more years

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WHY YOU JOINED

self-identified as having a “senior/principal” level of decision making within their company

have been AmChamChina members for three years or less

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WHAT WE ARE DOING WELL

74%

N o . 9

73%

rated AmCham-China’s networking opportunities as valuable

respondents

events

advocacy

Chamber Urges China to Repeal Restrictions on International Law Firms

A statement by the American Chamber of Commerce in the People's Republic of China

respondents

government relations

WHERE YOU WOULD LIKE US TO IMPROVE

Your Chamber, Your Feedback, Our Responses

Highlights from AmCham-China’s 2011 Membership Satisfaction Survey, and where we go from here By China Brief

HR strategies for branding, recruiting and retaining

How to leverage human resources in China. By Matthew Bruno

Winning With China: 10 Years into the WTO

How manufacturing leads to new business partnerships By Richard P. Lavin

Vanishing Glaciers of the Himalayas

The gradual warming of the Himalayas could affect the lives of millions of people. Long-time China watcher Orville Schell explains how. By China Brief Insight

Maximizing Membership Sustainable Investment

How to address China’s top environment, social and governance challenges

At this time of year, AmCham-China is hosting many of our signature annual events. We recently celebrated our ninth

annual American Ball (enjoy pictures replete with boats, parrots and snakes on page 30) and be sure to read our back page

to learn how you can get involved with the charities chosen

By Adam Lane

to receive funds raised from this year’s Ball. The chamber’s Human Resources Conference is on November 4 (for HR

branding and retention tips see page 13), our Board of Governors election is in progress and we will hold our Appreciation Dinner for government officials on December 2.

We look forward to seeing you at these events, and your

feedback is valued and always welcome. AmCham-China recently conducted our 2011 Membership Satisfaction Survey to

better understand how we are doing and where we can im-

Castaways Moored! Highlights from the chamber's annual Ball

prove. In this issue China Brief shares the survey’s highlights as well as how you can maximize the benefits of your mem-

bership, get up to speed on the latest chamber developments, and find out where the chamber plans to go from here.

In the survey, many members showed an interest in learn-

ing more about products, services and best practices through the chamber. As a result, AmCham-China is introducing a new event platform, Member-to-Member, or M2M.

Now companies can tailor events around their products

and services, or their unique insights and resources. M2M events are sponsored by a single company to share the latest

The 2011 American Ball Charities

Who they are and how you can get involved

information about their offerings, technologies or expertise

with AmCham-China members. Please contact Connie Zhao: czhao@amchamchina.org for more information.

The new M2M event platform is a testament to collaborat-

ing with you—we want to ensure our programming is tailored to suit your needs. Please do keep the feedback coming! Your

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Chairman's Message China Brief Flashback Know Your Working Groups Tianjin Chapter’s Real Estate Committee Working Groups What they do and a listing of leadership Events A roundup of the chamber’s activities Special Events Ambassador Locke Tours Chamber’s Chapters AmCham-China Hosts “Invest USA” Forum Tianjin Chapter’s Fall Classic Golf Tournament American Ball 2011, Castaways Moored! New Members AmCham-China’s newest additions Member Spotlight Jolene Kinser

ideas, thoughts and suggestions help the chamber to chart our future course. See our website for staff contact information or

stop by our office anytime to share your input. We look forward to working with you and seeing you soon.

Megan Rhodes Editor

Article Submisson Policy:

China Brief actively seeks article submissions. We give strong preference to AmCham-China members. Full submission details are available on AmCham-China’s website www.amchamchina.org. Please send letters and submissions to: editor@amchamchina.org.

Editorial Staff

AmCham-China Leadership

VP, Communications

Matthew Wisla

AmCham-China is a member-led organization. The chamber’s success is rooted in the vision, hard work and dedication of its members, many of whom are leaders within their companies and the business community. AmCham-China is fortunate to have an exceptional group of members who contribute their talents and time to the organization. Through their efforts these volunteer leaders make it possible to provide the information and intelligence, business services, networking opportunities and events that benefit all members and the advocacy initiatives that help shape the business environment in China.

Communications Director

K.C. Swanson Editor

Megan Rhodes

At AmCham-China’s national level, the chairman, three vice chairs and ten governors comprise the organization’s Board of Governors. All voting members of AmCham-China are eligible to participate in an annual election to select the Board. Additionally, members at three AmCham-China Chapters from around the country (Central China (Wuhan), Dalian and Tianjin) each have their own local executive committee (EC). These ECs ensure that every Chapter has an agenda that is responsive to the needs of local AmCham-China members.

Creative manager

Zhang Hui Assistant Designer

Jin Peng Cover design

AmCham-China Board of Governors

Zhang Hui Contributors

Chairman

Jon Abramovic Barbara Chen O'Connell Rachel Dodsworth Ryan Dutcher Michelle Guo Julia Howe Mariel Montuori Britten Piedrasanta Elizabeth Rowland Caroline Sun Connie Zhao

Ted Dean Individual vice chairs

Michael Crain

Gregory Gilligan

Wang-Li Moser

Individual

APCO Worldwide

Intel China Ltd.

Matthew Estes

Barry Friedman

Jim Gradoville

Nina Hsu

BabyCare Ltd.

Wal-Mart China

Individual

LTI Associates

Ningke Peng

Malone Ma

George Huang

Lester Ross

Dow Chemical China

MetLife

Chubb Insurance

Timothy Stratford

David Wang

Wilmer Cutler Pickering Hale and Dorr LLP

Governors

For sponsorship information, please contact Christine Yu at (8610) 8519-0832 or e-mail: cyu@amchamchina.org Fenghua Advertising Co., Ltd. is a sponsorship coordinator for China Brief. (8622) 5885-2812

China Brief content does not necessarily reflect the opinions or positions of AmCham-China or its Board of Governors. ©2011, The American Chamber of Commerce the People’s Republic of China. All rights reserved.

Covington & Burling LLP Beijing Repr. Office

Boeing China

Chairman Emeritus

Treasurer

General Counsel

John D. Watkins, Jr.

Gus Kang

Nathan G. Bush

GE (China) Co., Ltd.

Deloitte Touche Tohmatsu

O'Melveny & Myers LLP

AmCham-China Chapter Executive Committees Dalian Chapter

Tianjin Chapter

Chairman

Central China Chapter

Tony Balow

Michael Hart

Intel

Jones Lang LaSalle (Tianjin)

Chairman

vice chair

Aloha Business Services

Preston Kuo

George Grosshans

Jayland Learning

LDI Tianjin- Tianjin MTI International School

vice chair

EC members

Tim Frosell Goodyear

Dorman Kwan PWC

Leif Rogers Bank of Jinzhou

Patrick Woock ETT Investments

Janie Corum

Qiqing Jiang

EC members

Cummins East Asia R&D Co.Ltd

Amy Chan

EC members

Renaissance Tianjin Hotel

Natalie Ebden International SOS (Tianjin Clinic)

Lucy Liu The Executive Centre Tianjin

Vincent Lo Deloitte Touche Tohmastsu CPA Ltd.

Hank Martin

Steve Carpenter Diamond Power

Jun Hu GE (China) Co., Ltd.

Herb Mittler Wuhan Yangtze International School

Scott Shaw LDi Training

Hank’s Sports Bar and Grill

Jon Reed Tianjin Custom Wood Processing Company, Ltd.

There are many opportunities to get involved with AmCham-China. Interested members are encouraged to contact the chamber’s volunteer leadership or professional staff, or one of the more than 40 working groups listed later in this magazine and on AmCham-China’s website (amchamchina.org).

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Your Platform for a Stronger Advocacy Voice

Ted Dean

AmCham-China Chairman

As our 20th anniversary year draws to a close, the members of AmCham-China can reflect on some important gains on the advocacy front in 2011. These are successes of the strong, effective government relations platform that we have built over the years. One of our more strategically valuable initiatives in recent years has been a push to expand the number of American Business in China White Paper (White Paper) follow-up meetings we hold with Chinese government officials. This year we have met with policymakers in over 20 Chinese government ministries and agencies, and in key provinces/regions and cities where our members have a strong or growing business presence. The meetings take place after we have first sent copies of the relevant White Paper chapter to participating officials, providing them with an outline of our members’ concerns related to a particular industry. Chamber members then join with our government relations team in face-to-face exchanges with key decision makers in their industry. We have found that White Paper meetings provide for frank and often productive discussions between regulators and businesspeople with practical operating experience in a given sector. More than meetings, our members look for progress. The chamber has consistently been among the strongest voices calling on Beijing to repeal policies that purport to promote indigenous innovation, though in practice often serve to discriminate against foreign companies. We were pleased to see some initial signs of progress in this area, with the central government’s announcement earlier this year that it would repeal three measures underpinning the policy. However, we will continue to monitor implementation to gauge the practical effect of the repeal and also to see how the shift is playing out at the provincial and local level. To be sure, our member companies continue to face new challenges in terms of government policies. One that has recently attracted a great deal of attention is the social insurance law, introduced earlier this year with little advance notice, which will substantially raise the effective tax burden for companies with foreign employees. The new financial obligations imposed by the law could be considerable for some employers. But an even more troubling issue is that at present, Chinese policymakers have not yet devised mechanisms to allow expats to actually collect on social insurance benefits. We are actively seeking to engage with both central and local government officials to make sure that our members' concerns are heard, and we will continue to press for practical solutions that would help to alleviate these problems. At the same time we have advocated for members' interests in Beijing, we have also been developing new contacts at the provincial and local level through our highly popular—and often sold-out—provincial investment trips. Our provincial trips, which typically last three to four days, offer a time-effective way for members operating there or considering business expansion to gain an overview of the business climate in fast-growing second-and third-tier cities, and just as important, to meet local government leaders there. This year the chamber organized visits to Sichuan, Zhejiang, Inner Mongolia and Fujian provinces/autonomous region. Looking towards Washington, the chamber has been a strong and consistent voice of opposition to the currency bill now before the US Congress. In the spring, AmCham-China lead a delegation of members to Washington on its annual DC Outreach trip. Meanwhile, we are also continuing to work closely with the US Embassy and have hosted a number of high-level US officials. Our highest-profile guest this year was US Vice President Joe Biden, who met with a select group of chamber members and discussed the local business environment with them during his visit in August. In May, we teamed with the US China Business Council to co-host one of the biggest visits by a Senate delegation in recent memory—a total of 10 Senators—at a lunch. And these are just some of the higher-profile events. We’ve also organized meetings with a growing stream of individual politicians from the US, including many state governors seeking to attract Chinese investment and cultivate closer commercial ties with China. Our ongoing efforts to develop long-term relationships in Beijing and Washington, DC have paid off as we have become a valued source representing the views of the business community to both sides in advance of bilateral talks (including the annual meeting of the Joint Commission on Commerce and Trade, coming up soon). In the future, we’ll work to deepen the gains we have already made in government relations. By presenting a unified front, we hope to magnify the voices of our individual member companies and do more to improve the business climate in China.

China Connect Video Interviews: In this special edition of China Connect, AmCham-China speaks with the Chairman of the USChina Economic and Security Review Commission William Reinsch. In the run-up to the Commission’s annual report to Congress on the national security implications of the US-China bilateral trade and economic relationship, Reinsch traveled to Beijing to meet with members of the business community. In this video interview, he shares some context for the report and discusses key issues affecting USChina relations.

In China Brief Flashback, we revisit the events and issues AmCham-China members experienced 10 years ago. Here are a few highlights from November 2001:

Talking Trash

Podcasts: Tom Orlik, author of Understanding China’s Economic Indicators, explains which numbers deserve attention, which merit skepticism, and how investors can get an early read on where the economy is heading. A surprising half of all students in one Minnesota public school district have enrolled in an innovative Chinese-language immersion program. School administrators weigh-in on why it’s a success. There’s speculation Beijing may soon overhaul a corporate structure that has allowed foreign investors ownership in Chinese Internet companies (which are technically off limits). Paul Gillis, who teaches accounting at Peking University, explains. Longtime China watcher Orville Schell, now at the Asia Society, discusses “Coal+Ice,” a new photography exhibit opening in Beijing that documents the rapid melting of the Himalayan glaciers.

Please see AmCham-China's "Multimedia" web page to access our podcasts and China Connect videos.

Find us at:

iTunes

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In the article, Husayn Anwar, a member of AmCham-China’s Environmental Health and Safety Forum (now known as the Environmental Industry Forum), cautioned that incinerators would do more harm than good without the proper equipment or management. China Brief's November Despite warnings from industry experts, 2001 cover story the article noted that China’s waste management approach was shifting from landfills to incinerators. Experts estimated that incinerated waste would account for 35 percent of managed waste by 2015.

The “White House Knock”

t AmCham-China’s 2001 annual meeting, outgoing chairman Tim Stratford discussed the Board’s priorities over the past year, including preparing for China’s entry into the WTO and expanding member services. In addition to welcoming the new Board of Governors and toasting the accomplishments of outgoing members, AmChamChina members performed several song and dance numbers at the Kerry Centre. Highlights included “Heard it though the Grapevine” and a creative twist on “Jailhouse Rock” titled “White House Knock.” The evening’s finale elicited audience participation with a performance of “WTO,” sung to the music of the Village People classic “YMCA.” To access the full China Brief archive, please go to: www.amchamchina. org/chinabrief.

Search for: AmCham-China

ovember’s 2001 cover story, “China’s Growing Garbage Crisis,” highlighted the pervasive problem of dumping untreated waste. With a lack of adequate treatment and disposal facilities, the amount of hazardous waste in China exceeded the country’s capacity to dispose of it safely.

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Your Chamber, Your Feedback, Our Responses Highlights from AmCham-China’s 2011 Membership Satisfaction Survey

s a member-led organization, AmCham-China always welcomes feedback from our members. We conduct a regular formal survey to garner your insights on how we are

doing and to determine how we can best serve you in the future. Thank you to our 354 members who took the time to complete the survey this summer and provide this valuable feedback. Here are a few highlights from the 2011 results:

WHO OUR MEMBERS ARE of respondents self-identified as corporate members

62%

self-identified as Chinese citizens

52%

joined to increase access to events that could enhance their industry expertise and professional skills, and provide information to make them more competitive

have been AmChamChina members for three years or less

RATED AS VALUABLE

170 respondents

events

respondents

business visa program

40% have been AmCham-China members for seven or more years

joined to expand professional and social contacts

self-identified as having a “senior/principal” level of decision making within their company

joined to engage with the Chinese and US governments on policy issues

respondents

networking

respondents

information

69%

73%

rated AmCham-China’s events as valuable

rated AmCham-China’s networking opportunities as valuable

respondents

events

advocacy

respondents

government relations

WHERE YOU WOULD LIKE US TO IMPROVE * Respondents=write-in responses 1 0

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WHAT WE ARE DOING WELL

74%

WHY YOU JOINED

New Trends and Developments • Increasing preference for electronic versions of chamber publications including the American Business in China White Paper (White Paper). • Growing opportunities for new information sharing and networking opportunities for specific job functions at our member companies (read about our new event platform, M2M, below). • A reinvigorated Public Policy Development Committee (PPDC)—the in-house think tank for advocacy issues that also drives the chamber’s White Paper development—is now meeting on a monthly basis with 30-plus members in addition to representatives from the US embassy regularly in attendance.

How You Can Make the Most of your Membership Want to help your company succeed in China? Interested in supporting US-China relations? • 159 respondents find the White Paper to be AmCham-China’s most important government relations activity. • If you are interested in policy issues, stop by the next PPDC meeting. To get involved with the PPDC and the White Paper, email Elizabeth Rowland: erowland@amchamchina.org. • Join your industry’s working groups (please see page 24). • Join one of the chamber’s provincial trips, which offer excellent networking opportunities and critical on-the-ground insights for foreign companies considering investment and expansion beyond first-tier cities. Please email Breeze Wang: bwang@ amchamchina.org for more information.

Going Forward, We Plan To • Continue to enhance programming through targeted events with high-level expert speakers, and organize more events with Chinese experts and opinion leaders. • Develop more functional and industry specific events. • Re-energize forums and committees (we hosted a well-attended forum and committee Chairs and Co-chairs meeting on September 15, and outlined a plan for action—stay tuned for more to come!). • Deepen advocacy efforts on issues of concern to members, including the current social insurance tax law. • Request face-to-face meetings with key government contacts, and invite more government officials to speak with members. • Provide networking opportunities for members with central and provincial government officials. • Explore more ways to deliver electronic information. • Streamline and sharpen the White Paper process. • Launch a new event platform: Member-to-Member (M2M), which allows companies to sponsor events, sharing their latest information about offerings, technologies or expertise with AmCham-China members. We look forward to continuing to improve our advocacy, information, networking and business support services, working together to help you and your company succeed in China. And we always want to hear from you. Please call 8519-0800, email amcham@amchamchina.org, or speak to us the next time you stop by the chamber’s office or see a staff member at an event. N o v e m b e r

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Chamber Urges China to Repeal Restrictions on International Law Firms

A statement by the American Chamber of Commerce in the People's Republic of China

www.fotolia.com

ue to a number of severe restrictions, international law firms in China face significant challenges in Chinaâ&#x20AC;&#x2122;s legal market. While these policies are directed against international law firms, those hardest hit by these restrictions are Chinese lawyers, the Chinese legal system and clients of both international and domestic PRC firms. We urge the PRC government to revoke or amend these restrictions in order to open the market in accord with prevailing international practice. Under current regulations, lawyers qualified to provide advice on the laws of the PRC are not permitted to join international firms. If they do join, their Chinese law license which authorizes them to practice PRC law will be suspended during their tenure with the international firm. This regulatory restriction prevents Chinese citizens who have spent many years at university studying the Chinese legal system and passing the PRC bar exam from pursuing a career as a practicing

PRC lawyer and partner (owner) in any of the many international law firms from around the world. The ability to practice PRC law within an international firm would afford Chinese lawyers broader employment opportunities, allow them to gain experience in international best practices in how to best provide advice and assistance to clients, and enable them to provide more seamless and better advice to both foreign clients seeking to do business in China and to Chinese companies seeking to do business abroad. Thus, both foreign and Chinese clients stand to benefit significantly from a less protectionist regime. If PRC lawyers were free to shift from international to domestic firms and vice versa, the quality of legal services would be improved and best practices more widely shared among all firms, international and domestic. Chinese law would also become a more acceptable choice of law to govern contracts around the world as international firms become more familiar with PRC law. Currently, PRC law firms can hire foreign lawyers N o v e m b e r

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from many jurisdictions and have those lawyers provide legal advice on the law of their home countries. They can do so here in China or through overseas offices in global centers like New York or London. While we welcome the development and expansion of local firms, we also urge the PRC government to permit international firms to be able to do the same in China, both because it is in Chinaâ&#x20AC;&#x2122;s own interest and on the basis of fairness and reciprocity.

If PRC lawyers were free to shift from international to domestic firms and vice versa, the quality of legal services would be improved and best practices more widely shared among all firms, international and domestic. In addition to the regulations that restrict PRC lawyers from associating with international firms, other regulations further discriminate against international firms to the detriment of their clients, both foreign and domestic. For example, in several circumstances international law firms are prohibited from accompanying their clients in meetings with government officials or administrative proceedings, even though there are no restrictions on attendance by other professionals and advisors or by PRC lawyers. This is of special concern with respect to meetings before the Ministry of Commerce regarding anti-monopoly merger reviews, but has also been an issue with other PRC agencies and ministries. Further examples of discriminatory practices are the prohibition on the hiring of newly qualified lawyers by international firms, the long approval processes and mandatory waiting periods to establish a first office and to open additional ones and the restriction on individual partners being able to serve as the managing partner of multiple offices. With respect to legal services, Chinaâ&#x20AC;&#x2122;s regulations are far more restrictive and its market more closed than neighbors such as Japan and than the Hong Kong SAR, as well as major trading partners such as the US and the EU. To some extent, the challenges highlighted in this statement are the result of the enormous successes that have resulted from the partnerships forged between Chinese and foreign business in recent years. While this process has at times been very difficult, stronger integration has generally benefited all parties and a great deal of progress has been made in establishing a strong and sustainable rule of law in China. Further gains will result from liberalization of the legal profession to bring China in line with global trends. Not only would the law firms and individual lawyers benefit, but companies would receive better and more efficient advice, Chinese lawyers would prosper and become more influential on the international stage, Chinese law would gain more acceptance around the world, and Chinese society would benefit from better trained, more professional lawyers. For more information, jhowe@amchamchina.org 1 6

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Julia

Howe:

Winning with China:

10 Years into the WTO How manufacturing leads to new business partnerships By Richard P. Lavin

his December marks the tenth anniversary of China’s accession to the World Trade Organization (WTO). Over the past decade, China’s manufacturing industry has seen tremendous growth. The nation has become a manufacturing powerhouse in terms of both production volume and revenue, with eightfold revenue growth from RMB 48 billion in 2001 to RMB 400 billion in 2010. The Chinese government has now set its sights on the next set of goals: moving the industry up the value chain. In a bid to transform Chinese manufacturing from the largest to the strongest, the 12th Five-Year Plan calls for:

• upgrading manufacturing; • introducing technological innovations; and • promoting sustainable development of the industry. This ongoing transformation offers excellent business opportunities for manufacturing companies, including Caterpillar. Read on to learn how Caterpillar plans to play a role in the process, as a manufacturing leader known for its innovative products and long-term partnership with China.

1. Upgrading with China In examining China’s development in the past 10 years, it is clear that the business reforms that accompanied entry to the WTO were critical in the success of the manufacturing industry. Caterpillar benefited from the liberalization along with its Chinese manufacturing counterparts. With its China headquarters in Beijing, Caterpillar now employs a staff of more than 9,000 employees nationwide and has seven new manufacturing facilities under construction. However, maintaining this rapid growth is a challenge. The Chinese government’s solution is to promote the transformation and upgrade of the manufacturing industry through technological innovation. A new level of partnership will be necessary to ensure the strategy succeeds, and Caterpillar is committed to being China’s long-term partner. All we need is a level playing field.

Source: www.wto.org

Building a level playing field requires transparency in policies and regulations. Only then can companies be assured that they will reap the rewards for bringing their most cutting-edge technologies to China. It is critical for creating an environment where innovation and creativity thrive. It is also important that China maintain a commitment to opening up markets. As a case in point, we have noticed that more small and mid-range types of equipment are being moved to the “restricted” category in the updated draft of the 2007 version of Catalogue Guiding Foreign Investment. This has raised concerns about whether the scope of business may gradually be narrowed for international companies in China. We hope that this is not the intent of this update, because restricted markets do not breed the healthy competition required to maintain industry vitality (please see the construction equipment manufacturing chapter in the American Business in China White Paper for more details: www.amchamchina.org/ whitepaper). However, there is reason to be optimistic. A recent encouraging example is President Hu Jintao’s commitment to decouple government procurement and indigenous innovation. We look forward to the implementation of this policy. N o v e m b e r

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2. The Power of Partnerships Ten years into China’s accession to the WTO, economic development requires greater emphasis on innovation through partnerships. The manufacturing industry faces the challenge of upgrading production methods and moving up the value chain. Caterpillar is constantly developing and refining technologies to make its products better and to help its customers. In 2010, Caterpillar invested US $1.9 billion in research and development, which translates to substantial customer benefits. We are proud of how our contributions in technology transfer have helped in the development of the Chinese machinery industry. Our technology transfer agreements in 1987 marked a significant milestone for Caterpillar and for the development of the Chinese machinery and engine industries. We signed agreements with 12 state-owned Chinese companies in 10 provinces. In the past several years, Caterpillar has established cooperation with leading Chinese companies, Yuchai and AVIC Liyuan, to accelerate the development of remanufacturing and hydraulic components. Earlier this year, Caterpillar and Shaanxi Fast Gear Co., Ltd. formed a joint venture to manufacture drivetrain systems and other components for Caterpillar machinery to produce a full line of on-highway

WTO: FAST FACTS The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. Established on January 1, 1995 by the Uruguay Round negotiations, the WTO aims to help producers of goods and services, exporters and importers conduct their business.

WTO functions include: • Administering WTO trade agreements • Serving as a forum for trade negotiations • Handling trade disputes • Monitoring national trade policies • Offering technical assistance and training for developing countries • Cooperating with other international organizations The WTO has 153 members, representing more than 97 percent of the world’s population, and 30 observers, most seeking membership. The WTO is governed by a ministerial conference, meeting every two years; a general council, which implements the conference's policy decisions and is responsible for day-to-day administration; and a directorgeneral, who is appointed by the ministerial conference.

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automatic transmissions. These efforts are merely the latest in an ongoing Caterpillar strategy to develop partnerships with leading Chinese companies as we deploy our comprehensive business model.

3. Remanufacturing Sustainability As the WTO encourages trade and cooperation among nations, the best solutions for sustainable development will come through partnerships. Part of the 12th Five-Year Plan involves implementing energy conservation programs and reducing emissions. These are areas where it makes sense to partner with foreign firms with experience. The US and Europe have significant experience in leveraging technology to meet ever-rising emissions standards. In China, by working with a government-led alliance, Caterpillar introduced remanufacturing techniques that can reduce energy usage up to 85 percent compared with traditional manufacturing processes. Remanufacturing is now an encouraged area of investment in China. Caterpillar has fully cooperated with several provinces in sustainable development projects. In 2008, our subsidiary Solar Turbines worked with Shandong Jinneng to help it recycle coke glasses into much-needed energy. As a result, Jinneng became the first company outside the US to win the Environmental Protection Agency’s (EPA) International Combined Heat and Power (CHP) Award. The EPA estimates that this CHP system effectively reduces carbon dioxide emissions by 540,000 tons per year. Caterpillar is also an active member of the US-China Energy Cooperation Program (ECP), one of AmChamChina’s three cooperation programs, and it serves as the co-chair of the ECP’s Decentralized Power Generation & Combined Cooling, Heat & Power Working Group. This working group supports cities where natural gas is (or will soon be) available to achieve their energy conservation and emissions reduction goals by applying high-energy efficient systems. As a member of the WTO, China has undergone more development in the past 10 years than many could have anticipated or believed possible. Going forward, in the next 10 years, the most successful companies will be those that integrate sustainability into their core business. That is what we are doing at Caterpillar, and we are committed to helping our partners and customers in China do the same. Richard P. Lavin is the group president for Caterpillar Inc. To read about AmCham-China and the WTO over the past 10 years, please see: www.amchamchina.org/ wto To get involved with the ECP, please email: ecp@amchamchina.org

Now companies can have the chance to become AmCham-China’s EXCLUSIVE event sponsorship each month through the Center Stage Package. With the Center Stage Package, your company will be seen by AmCham-China’s exclusive audience through:

Banner in initial event announcements. Logo, banner and title sponsorship for one month in the Tracker e-mail ( times/month).

Exposure at the registration area of most events that take place during the sponsored month · A table with sponsorship signage · Option to have a pull-up banner · Option to have brochures or other printed pieces

24,000/month RMB20,000/month

RMB

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EXCLUSIVELY

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For Non-Member For Member

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For more information about the Center Stage Package, please contact Christine Yu at (8610) 8519-0832 or cyu@amchamchina.org

INTER VIEW

Vanishing Glaciers of the Himalayas By China Brief

series of striking photos, now on display at the Three Shadows Photography Art Centre in Beijing, document the dramatic melting of Himalayan glaciers over the past century. The images are part of a broader exhibit of documentary photography—“Coal+ Ice,” sponsored by the Asia Society—that documents the environmentally devastating results of the heavy use of coal worldwide. The show, which includes the work of 30 photographers from around the world, will run from September 24 to November 28. We spoke with the exhibit’s executive producer, Orville Schell, about the environmental impact that melting glaciers will have in China. Schell, who directs

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the Asia Society’s Center on US-China Relations, warns that the gradual warming of the Himalayas could disrupt water flows, agriculture and life for the millions of people who live downstream.

Q Can you tell us a little about the photos of glaciers in the exhibit, how they were taken and what they show us? A I had a friend with whom I’d made several documentary films, a mountaineer named David Breashears. He’d started, just in a very cursory way, to notice in his many trips to the Himalayas —Pakistan, Nepal, Tibet, Bhutan—that the glaciers he first encountered 25 years ago were changing. So he began to do matched photographs. He would take

photos of glaciers, mostly taken by Europeans from 75 or 100 years ago, and he would go back to exactly the same place at the same time of year, wait for the clouds to disappear, and reshoot the glacier. So what people will see in the photograph show at Three Shadows are these comparisons [displayed] on a huge screen that must be 60 to 80 feet long. You’ll see these huge white [areas from images of] the glacier 75 to 100 years ago and then what it looks like now, and you’ll see the comparative loss of ice mass. So this is having and will have a very profound effect on the flows of all the major river systems of Asia, because each of the rivers—the Indus, Amu Darya, Brahmaputra, Ganges, Salween, Sutlej, Yangtze, Mekong, Yellow River—all rise in

In China Brief’s “Artist Spotlight,” we partner with one of Beijing’s galleries to feature a selected artist’s work that lends a new perspective on an article from the magazine.

November's Artist Spotlight This month’s featured artist (see bottom photo) is photographer and mountaineer David Breashears. His photographs of melting Himalayan glaciers are currently alongside archival photographs taken over the past century by some of the world’s greatest mountain photographers. The comparison reveals the alarming loss of ice at an unprecedented rate. See www.glacierworks.org to learn more.

Gallery Statement

These two pieces are currently exhibited at the Three Shadows Photography Art Centre in Beijing as part of their Coal+Ice documentary photography exhibition, which features the work of 30 photographers from China, the US, Malaysia, Russia, Hungary, Poland, Norway, Germany and the UK. See www.threeshadows.cn for more information. West Rongbuk Glacier Courtesy of Royal Geographical Society, 1921 (top picture) West Rongbuk Glacier Courtesy of GlacierWorks, 2008

the Tibetan plateau. And in certain seasons they all depend on glaciers melting at exactly the right time and kicking in flow to keep the rivers in a state of balance. But with this disturbance the rivers are being disrupted. First we’re getting floods—to wit, [the massive flooding in] Pakistan two years ago. Then we’ll get droughts. This is of great consequence to an enormous number of people.

Q You have pointed out something many people may not be aware of—that the effects of global warming are especially acute at high altitudes. A What happens is these greenhouse gases go into the atmosphere from the burning of fossil fuels like coal. The higher the altitude, the more the temperature increases for very complex reasons. This means that the effects of climate change, while they’re serious at low altitudes, are very serious at high altitudes. When you hear a figure of a one percent average increase in global temperatures, that means in some places, you’re getting a four- or five-degree increase and in other places you may get no increase. This is why the Himalayas, the frozen

reservoir of Asia, are both extremely sensitive in terms of climate and temperature fluctuations, and also extremely important to these river systems.

Q Many Chinese live along some of the

major rivers you’ve mentioned, so more floods or droughts would likely have a severe impact in China. Given those risks, what’s your assessment of Beijing’s response to global warming so far?

A [Over the past five years], I would have to say there’s been an extraordinarily rapid absorption of both the science and the threat that climate change poses both to China and the world. Whereas in the US, because of all sorts of political and religious static, there’s great resistance to recognizing just how threatening this phenomenon is. So I think China in many ways has come farther and is actually doing a lot of things. However, the sad fact in the world in general, China included, is that the gross increment of development, which involves more electricity and the burning of more coal, still is increasing aggregate amounts of greenhouse gas emissions. [This is true] even though per

unit of production, particularly in China, the amount of greenhouse gases is being reduced through all sorts of green technologies—wind, solar, nuclear, thermal and energy savings. So it’s a paradox. On the one hand China is exemplary in certain ways. But on the other hand, because it has a great need to develop, it’s still producing more greenhouse gases. It’s hopeful in that there is a response of some consequence, but if you look at it globally it’s not so hopeful. The US and China are the two big players. If they don’t get together, there literally is no possibility for any kind of a solution. It doesn’t matter what anyone else does. If the US and China can’t get a handle on this question of fossil fuel consumption and the sequestration or diminishing of greenhouse gas emissions, we’re going to see a rapidly warming planet, and all the consequences we know very well flow forth from that, including the melting of the ice systems in the Himalayas. To hear this and other podcasts covering business and economics in China, please visit the AmCham-China website or search “AmCham-China” to subscribe to us on iTunes. N o v e m b e r

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What Investors Need to Know How to address China’s top environment, social and governance challenges By Adam Lane with nationwide networks that may struggle to implement effective internal control mechanisms. The most common problems include financial fraud, bribery and the misuse of company funds. The traditional Chinese practice of giving expensive gifts to business associates is also a primary source of corruption in the country. Companies need to have clear standards and policies governing this practice.

here are several factors that make the investment climate in China different than in other countries, and these need to be carefully considered by investors. They include: • Strong relationships between companies and local government agencies that report to provincial authorities rather than to central government agencies. • Difficulties in managing staff and enforcing codes of ethics amid high staff turnover and a scarcity of experienced professionals. • Weak enforcement of regulations, which is often related to the close relationships between businesses and local governments. • Low fines for regulatory violations, and attempts to use financial influence or government relationships to hide information from the media at local levels. BSR’s environment, social, and governance (ESG) news screener helps investors identify high- and low-performing companies based on ESG factors and provides a good overview of some of the major ESG issues facing Chinese companies. Our analysis reveals some important insights for investors who want to better understand how Chinese companies are performing and responding to ESG issues.

Company spotlight

Earlier this year, Sinopec’s Guangdong branch was involved in a “luxuryliquor” scandal which started when

Editor’s note:

China Brief is pleased to introduce a new partnership with BSR (Business for Social Responsibility). BSR works with its global network of more than 250 member companies to develop sustainable business strategies and solutions through consulting and research.

Sustainable Investment in China

By Lindsey Lim

ustainable investing refers to an approach that factors environmental, social and governance (ESG) issues into investment decisions. It considers both the investor's financial needs and an investment’s impact on society. In many cases, investors who adopt this approach will encourage companies to improve their practices on ESG issues. On a global basis, increasing numbers of investors are committed to implementing the UN Principles for Responsible Investment (UNPRI) — a set of six principles that help guide decision-making around ESG issues. Some investors

Lack of Governance Corruption is a major challenge for business in China, particularly for financial services and energy companies 2 2

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invoices were posted on a Chinese online forum revealing that RMB 1.68 million (US $258,000) had been spent on liquor. Sinopec launched an investigation and suspended the Guangdong branch’s general manager for six days after the news broke. The general manager was later removed from Sinopec Guangdong and fined RMB 131,100. During the investigation, Sinopec refused to answer journalists’ questions, and it was reported that Sinopec Guangdong required all departments to trace the leak in order to punish the whistleblower. This scandal demonstrates how the spread of the Internet and social media is putting increased pressure on companies to maintain high standards. The rise of social media has made it

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employ sustainable investing criteria from the standpoint of better managing risks, and thus improving financial performance. Others want to seize business opportunities in the fast-changing environmental and social landscapes or to ensure that their investment practices are in line with particular ethical values. A 2009 BSR study funded by the International Finance Corporation concluded that, while sustainable investment practices in China are still relatively undeveloped, there have been encouraging signs of progress from stock exchange regulators and some pioneering mutual funds and private equity firms.

Company spotlight

harder for companies to hide illegal practices, with companies now facing greater “headline” risks. Companies are now expected to respond quickly and honestly to reports (or rumors) of corruption. In the end, media reports revealed Sinopec’s ill-advised move to punish internal whistleblowers. Investors should take concrete steps to help companies strengthen their internal controls, review corporate whistleblower policies to ensure that they provide adequate protection and provide feedback if the policies fall short.

Substandard Product Quality Substandard products continually make it onto the market, indicating widespread failures in quality control. The problem affects a wide range of industries, including energy, consumer products, health care, agriculture and industrial machinery. Product quality risks can be minimized with strategies for rigorous sampling and testing across the entire supply chain.

China can further leverage the role of sustainable investment to the benefit of the economy and the country. A better understanding of ESG issues among mainstream investors would increase their expectations for corporate transparency, improve corporate governance, and ultimately, support more successful companies. The market would reward innovative companies that address critical sustainability challenges. With the right incentives and commitments from government—and backing from more investors—sustainable investment could flourish. For more information and updates on sustainable investment in China, subscribe to BSR’s quarterly Sustainable Investment in China newsletter: www.bsr. org Lindsey Lim is an Associate at BSR.

In April, following consumer complaints and a company investigation, Sinopec Henan’s #93 grade ethanol gasoline was found to contain too much manganese. The company attributed the error to insufficient quality controls and operational problems at Anyang Oil Limited’s storehouse. Sinopec Henan relieved the parties responsible from their duties and offered compensation to motorists whose cars were damaged. Moreover, the company invited government bureaus, consumer groups and technicians to serve as independent witnesses to confirm the accuracy of complaints, carrying out vehicle repairs and other tasks related to the compensation program. Sinopec’s response was exemplary from a customer service perspective, yet is also typical of a response focused only on the short term. There is no evidence that Sinopec fully understands the underlying causes of the problem and has sought to prevent this—or similar— problems from occurring in the future. From an investor perspective, Sinopec should be asked to publicly provide a supply chain strategy, with details of the measures they took to resolve the problem and regular reports on their performance moving forward.

WasteWater Pollution The challenge of waste and water pollution in China among manufacturers is two-fold: too many companies not only pollute, but also often refuse to clean up pollution when it has been discovered. Local governments and civil society groups are increasingly placing pressure on companies that do not respond to calls for action. Provincial environmental offices have warning lists and blacklists of companies that violate environmental standards, and local governments have jurisdiction to impose fines and close down operations. However, blacklisted companies have the opportunity to rectify their problems by undergoing a series of inspections in order to be removed from the blacklist.

In February 2011, 24 NGOs called on Chenming Paper to stop illegally dumping sewage. This incident followed in the wake of 21 previous environmental violations by the company since 2004. The company did not respond to the NGOs’ statement and the company’s spokesperson did not respond when journalists called. Investors can dramatically reduce their chances of encountering such problems if they examine a company’s environmental track record before making an investment. In addition to contacting provincial environmental offices, investors can use the Institute of Public and Environmental Affairs’ website to identify companies with poor environmental performance. This website contains a database that tracks water and air-standards violations by manufacturers in more than 300 cities in China.

The Role of Sustainable Investors To ensure that companies properly address ESG issues, investors should: • Pay close attention to local news reports of companies that are fined for violating standards. Problems identified at local levels may indicate wider problems throughout the corporation, even if they are not picked up by national media. • Actively follow a given company’s response to ESG-related accusations, and work with other investors to influence company actions. • Make clear to corporate leadership that they are closely monitoring warning lists and blacklists. • Proactively track social media for ESG-related news reports. • Work with NGOs active on ESG issues in order to identify poor-performing companies. • Visit local branches of portfolio companies and develop a relationship with managers through face-toface meetings. By effectively and consistently engaging with their portfolio companies, investors can play an important role in addressing ESG challenges in China. Adam Lane is a Manager at BSR. N o v e m b e r

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A m C h a m - C h i n a I n Ac t i o n – W o r k i n g G r o u p

AmCham-China Cooperation Programs

Know Your Working Groups

Please see www.amchamchina.org/cooperationprograms to learn more.

US-China Aviation Cooperation Program 11 Pat Power, FAA Marc Allen, Boeing (China) Co., Ltd. US-China Energy Cooperation Program 15 ECP@amchamchina.org

The Tianjin Chapter’s Real Estate Committee

Forum Chairs Amcham-China staff

Michael Hart, Tianjin Chapter chairman, explaining the city's spike in residential property prices

The Tianjin Chapter’s Real Estate Committee provides members with the latest updates on China’s real estate market, in addition to key development trends in the Greater Tianjin area. The committee is also active in advocating for the preservation of historical buildings and offers opportunities to learn more about the city’s colonial architecture. Tianjin’s real estate committee often hosts dialogues and informative events on issues ranging from Tianjin’s urban planning to the city’s changing landscape. Committee chair Michael Hart, managing director of Jones Lang LaSalle, recently delivered a “Tianjin Property Update” at the top floor of the Tianjin World Financial Center, one of the city’s newest landmarks. For more information on this event, please tune in to Hart's podcast, available online at: www.amchamchina.org/podcasts and also on iTunes. Your participation is welcomed. For more information on how to get involved in the committee, please contact Amanda He: amandahe@amchamchina.org.

Please see www.amchamchina.org for more infromation about AmCham-China's forums and committees. Aerospace 4 Information Technology/Telecom 1 John Bruns, Boeing (China) Co., Ltd. Max D. Klein, USITO Kevin Wu, Textron Manufacturing and Sourcing 3 Agriculture 1 Harold Lang, Terex (China) Investment Co., Ltd. Michael Boddington, Boddington Consulting Dwight Nordstrom, PRI Management & Consulting Ltd. Kevin Eblen, Monsanto Manufacturing (Tianjin Chapter) 10 Beijing 4 Scott Taylor, Individual Michael Dardzinski, Reed Smith Marketing, Advertising and Public Relations 1 John Holden, Hill & Knowlton (China) Public Relations William Moss, Motorola Co., Ltd. David Zeke Yusah, Lenovo Business Process Outsourcing 1 Media and Entertainment 2 Julie Liu, Cummins China Mathew Robert Alderson, Harris Moure PLLC, Beijing Michael Liu, Compupacific International Inc. Arturo Casares, Mexico Guajillo Entertainment SA DE Gabrielle Sanders, Convergys Software Service CV Beijing Representative Office (Beijing) Co., Ltd. James Dyson, Weber Shandwick Clean Technology 1 Oil, Energy and Power 1 Robert Jones, Ecolinx Greg Ray, Independent Project Analysis, Inc. Emiel van Sambeek, Azure International Zhiyong Zhao, Hess China Oil and Gas Beijing Cosmetics 2 Provincial & Regional Development 14 Carol Shen, Estee Lauder (Shanghai) Commercial Co., Ltd. Emory Williams, SureBlock Company Environmental Industry 1 Lily Yang, Schneider Electric Daniel Li, Albemarle (Shanghai) Chemical Co. Real Estate and Development Industry 1 Michael Nicholls, Otek Australia Pty. Ltd. Eric Hirsch, Jones Lang LaSalle Financial Services 3 Jin Yong, CB Richard Ellis Kim Woodard, InterChina Consulting Real Estate (Tianjin Chapter) 10 5 Food Micheal Hart, Jones Lang LaSalle Owen Ma, PepsiCo, Inc. Retail and Distribution Industry 1 Healthcare Industry 5 Matthew Estes, BabyCare Ltd. Jimmy Ip, Edwards Lifesciences World Trade Barry Friedman, Wal-Mart (Shanghai) Co., Ltd. Small Business 6 & 7 Roberta Lipson, Chindex International, Inc. Anthony Goh, US-Pacific Rim International, Inc. Human Resources 3 & 7 Standards 3 Alan Babington-Smith, LMI China (Shanghai) Inc. John Larkin, LTI Associates Jim Leininger, Towers Watson Fei Liu, ASTM International China Office Insurance 3 Tax 8 Lester Ross, Wilmer Hale Wendy Guo, PriceWaterhouse Coopers Sufang Cui, Principal Life Insurance Company Brett Norwood, Deloitte Touche Tohmatsu CPA Ltd. Intellectual Property Rights 12 Tourism Industry 2 Mark Cohen, Fordham University Law School Jamie Lee, Individual

Committee Chairs

Amcham-China staff

American Community and Culture 2 Kathy Chi, Golden Richland Business Consultants Anthony Goh, US - Pacific Rim International, Inc Business Sustainability 6 & 2 Andy Andreasen, Shanghai AIAL Information Consulting Co., Ltd. Kaying Lau, Individual Chinese Government Affairs 13 Wan Li, Cummins Customs & Trade 8 Xiaoping Jiang, Flextronics (China) Election 6 David Diebold, David Diebold & Associates (HK) Ltd. Beijing Golf Program 1 Hans Lootiens, Renaissance Beijing Capital Hotel Su Cheng Harris-Simpson, SCHS Asia Legal 12 Timothy Stratford, Covington & Burling LLP Beijing Rep. Office Hank Wang, Garvey Schubert Barer

Support Staff:

1, Sujing Wang (sjwang@amchamchina.org) 2, Julie Leng (jleng@amchamchina.org) 3, Nancy Xu (nxu@amchamchina.org) 4, Cindy Du (cdu@amchamchina.org) 5, Victoria Qu (vqu@amchamchina.org) 6, Mariel Montuori (mmontuori@amchamchina.org) 7, Jonathan Abramovic (jabramovic@amchamchina.org) 8, Elizabeth Rowland (erowland@amchamchina.org)

Members listening to the latest property updates on the top floor of Tianjin's World Financial Center

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US-China Healthcare Cooperation Program Jun Zhou, jzhou@amchamchina.org Export Compliance Working Group 8 Marc Allen, Boeing (China) Co., Ltd. Chris Szymanski, SMIC Co.

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Golf (Tianjin Chapter) 10 Hank Martin, Hank's Sports Bar & Grill Public Policy Development 8 Patrick Chovanec, Individual US Government Relations 8 James McGregor, APCO Worldwide Inc. Visas 6 Gary Chodorow, Frederick W. Hong Law Offices Beijing Darlene Macneill, Deloitte Touche Tohmatsu CPA Ltd. Women’s Professional 6 Su Cheng Harris-Simpson, SCHS Asia Nina Hsu, LTI Associates Women’s Professional (Tianjin Chapter) 16 Lucy Liu, TEC Tianjin Jennifer Zhang, Deloitte Tianjin Work Safety 7 Harold Lang, Terex (China) Investment Co., Ltd. Desmond Soh, Oshkosh Corporation (Beijing) Young Professionals 6 Jeremy Huff, NBA China

09, Nancy Cooke (ncooke@amchamchina.org) 10, Amanda He (amandahe@amchamchina.org) 11, Grace Li (gli@amchamchina.org) 12, Julia Howe (jhowe@amchamchina.org) 13, Michelle Guo (mguo@amchamchina.org) 14, Breeze Wang (bwang@amchamchina.org) 15, ECP@amchamchina.org 16, Anna Li (ali@amchamchina.org)

A m C h a m - C h i n a I n Ac t i o n – e v e n t s

Developments in the US and Global Economies

Ambassador Locke in his earlier capacity as US Secretary of Commerce—one of the signatories to the 2009 bilateral MOUs, in which five separate agencies of the US and Chinese governments formally recognized ECP. The roundtable included presentations followed by a candid dialogue on how to promote clean energy business, generate jobs and growth, protect IPR and facilitate investment in both countries. The evening closed with all pledging their support of ECP in achieving mutual clean energy and business generation objectives.

Connie zhao

your stage in life. Mr. Schlindwein noted investment strategy is contingent upon four life metrics: acquisition, growth, preservation and deployment. Where you are in these four cycles plays a significant role in how you should execute your investment approach.

Cosmetics Forum meets with AQSIQ

David Dollar on the latest economic developments

In a lunchtime, off-the-record address, David Dollar, US Treasury Department’s economic and financial emissary to China, briefed AmCham-China members at the Kempinski Hotel Beijing on the latest developments in the US economy and prospects for the coming year. In the wake of the financial crisis and the collapse of the real estate bubble, Dollar noted the American economy will undergo a period of fundamental adjustments, in terms of both labor and capital, before resuming a course of strong sustainable growth. Dollar also analyzed the growth outlook for consumption, government spending, business investment and exports. He commented on the potential risks to the global economy posed by the European debt crisis and discussed China’s role in helping support global demand.

Manage Your Wealth in Today’s Economy

Opportunities, Risk and Return in Real Estate Given price increases in the real estate market, how can developers protect quality while maintaining cost efficiency? “This is a very unique time for China’s real-estate market,” noted Mark Cho, director and head of RREEF Real Estate. During a presentation before AmChamChina members and guests at the Park Hyatt Hotel, Mr. Cho emphasized the potential for a high-quality, investment-grade market in Beijing. He detailed the different investment vehicles available to support future real estate ventures in China.

ECP Roundtable with US Ambassador

Key Points: • Current real estate policy mandates that developers make payments for land projects within one year of purchase. For the most part, developers are required to make a 60 percent down payment on an acquisition. • Auctioned land that is untouched for over one year is viewed unfavorably by the government. Hoarding property may make it harder to acquire more land in future auctions.

In celebration of its second anniversary, ECP hosted a special closed-door, off-therecord roundtable with Ambassador Gary Locke. The roundtable was immediately followed by a reception, where everyone was joined by former National Development and Reform Commission Vice Chairman, Zhang Guobao. Mr. Zhang is a strong supporter of ECP and—along with

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Timothy A. Schlindwein, founder and managing principal for Schlindwein Associates, outlined key wealth management issues with AmCham-China members and guests.

AmCham-China’s Cosmetics Forum held a meeting with the Food and Manufacturing Supervision Division of the regulator known as the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). Led by Patrick Wang, AmCham-China’s vice president of government affairs, the chamber delegation included 10 executives from major cosmetics companies. The visiting group was warmly received by Deputy Division Chief Ma Chunliang, who was accompanied by division chiefs from related departments. Members of the chamber delegation discussed the latest issues concerning their companies and offered input on upcoming government plans. The event is expected to lead to future collaborations.

Key Points: • Theoretically, investment should be strictly statistical. From a practical perspective, humans often make decisions driven by personal bias. • The three wealth planning challenges are: regulation, taxation and inflation. • Diversification is essential. In today’s extremely volatile market, it is essential to understand your portfolio. How you invest depends upon your goals and

Will Latta, Executive Committe member of the US-China Energy Cooperation Program (ECP) presenting at the roundtable with Ambassador Locke

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Capital for real estate projects has dwindled due to recent policy tightening. This has not significantly impacted large Chinese developers, but the shift has put small- and medium-sized developers under some pressure. The market is currently undergoing a correction, allowing for a cooldown in property prices. But once things stabilize, small-and medium-sized developers may look forward to a more welcoming capital environment.

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Amcham-China staff

the current state of manufacturing in China. The major challenges confronting manufacturers in China include rapid increases in the costs of labor, materials and logistics. How do you maximize workforce efficiency in order to remain competitive? Mr. Mitchell introduced the concept of OLE, a common measure of productivity and tool to improve the overall effectiveness of the labor force by focusing on activities within each shift, not just overall productivity or production plans. In order to maintain and increase profit margins, OLE uses availability, performance, and quality levers to boost efficiency.

Hubei Dialogue with US Companies AmCham-China, Central China Chapter and US Embassy officials welcoming Ambassador Locke to Wuhan

Maximizing Labor Effectiveness

Central China Chapter Central China Chapter Hosts New US Ambassador AmCham-China, Central China Chapter hosted an exclusive lunch briefing with the US Ambassador to China, Gary Locke, attended by more than 60 members and guests at the Wuhan Jinjiang International Hotel.

Hunter Guan, a member of the Central China Chapter’s Executive Committee, recently opened an event on maximizing labor effectiveness at the Zhuangyang building in Wuhan’s Economic and Technological Development Zone. He introduced the Manufacturing Forum’s David Mitchell, general manager of Kronos Greater China. Key Points: • Manufacturers face major challenges due to increasing costs and must maximize the effectiveness of their labor to remain competitive. • Overall Labor Effectiveness (OLE) is a tool to promote and measure productivity within each shift.

Key Points: • The event was held in honor of US Ambassador Gary Locke’s first visit to Wuhan since assuming his post. • Ambassador Locke shared his thoughts about his new post and his vision for the evolving US-China relationship.

Mr. Mitchell opened the discussion with

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Key Points: • Speakers from the US and China spoke on investment opportunities in their respective countries. US speakers introduced the “Select USA” program. • The dialogue, which was a key event during USA Week in Wuhan, was attended by US Ambassador Gary Locke. Amcham-China staff

Ambassador Locke spoke about the importance of the US and Chinese bilateral trade talks and the shared goals of open and competitive markets free from protectionism. He also highlighted the need for Chinese direct investment in the US. The event, hosted by AmChamChina’s Chair of the Central China Executive Committee Janie Corum and AmCham-China President Christian Murck, was also attended by Consulate General of the United States in Wuhan Diane Sovereign, among other embassy officials.

US Ambassador to China Gary Locke and the Vice Governor of Hubei Province, Tian Chenzhong, gave opening remarks at a recent dialogue between Hubei government officials and US companies. Justin Zhu (partner, Deloitte), Ryan Hou (vice mayor, Columbus, Ohio) and Punyu Ho (executive director, Schlindwein Associates) introduced US investment opportunities and the Foreign Commercial Service’s “Select USA” program. Three Chinese speakers from the cities of Jingzhou and Jingmen and from Dongfeng Cummins Engine Co., Ltd. introduced investment opportunities in Hubei.

Central China Chapter members learning how to maximize labor effectiveness

Over 100 members of the foreign business community and officials from the Chinese government attended the USA-Hubei Business and Investment Forum co-hosted by AmCham-China, Central China Chapter and Hubei Commerce Department at the Wuhan Wuchang Westin Hotel. The forum was the key commerciallyfocused event during Wuhan’s USA Week.

A m C h a m - C h i n a I n Ac t i o n – S p e c i a l e v e n t

Ambassador Locke in Dalian (left), in Beijing and with Central China members in Wuhan

Ambassador Locke Tours Chamber’s Chapters Locke meets with AmCham-China members across China By Caroline Sun

Photos from AmCham-China staff

ince arriving in China in August, US ambassador to China Gary Locke has visited AmCham-China members in Beijing, Dalian and Central China (Wuhan) through a number of events hosted by AmCham-China and its regional chapters. During the World Economic Forum, the Dalian chapter hosted Locke at a breakfast event, where he spoke with members representing US companies about the challenges and benefits of doing business in China. In Beijing, AmCham-China joined with the US-China Business Council to co-host Locke’s first economic speech at a lunch event. In introductory remarks before the talk, AmCham-China Chairman Ted Dean addressed an audience of 300 business people and executives, noting the chamber is “eager to work with the ambassador…to support a stable economic relationship between the US and China and drive economic growth in both countries.” Later that week, Locke traveled to Wuhan to attend the USA-Hubei Business and Investment Forum, co-hosted by AmCham-China, Central China chapter and the Hubei Commerce Department. At this key event during USA Week, over 100 members of the foreign business community and Chinese government met to discuss commerce and investment opportunities. The next day, over 60 members and guests welcomed Locke to a luncheon in honor of his first visit to Wuhan since becoming ambassador. The event was hosted by Janie Corum, chair of the Central China chapter executive committee, and Christian Murck, president of AmCham-China. Most recently, Locke attended AmCham-China’s annual American Ball. He also has met with the cham-

ber’s three public-private partnerships: the US-China Energy Cooperation Program, the US-China Healthcare Cooperation Program and the US-China Aviation Cooperation Program. AmCham-China looks forward to continuing such exchanges with the Ambassador.

The Ambassador meeting with the US-China Energy Cooperation Program (above) and at the chamber's American Ball

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A m C h a m - C h i n a I n Ac t i o n – S p e c i a l e v e n t

AmCham-China Hosts “Invest USA” Forum Chinese, US officials and executives speak on boosting Chinese business investment in the US By K.C. Swanson

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vestors, explaining local regulations and business conditions, and helping newcomers make business contacts. Chinese officials at the Invest USA Forum suggested that US cities and states set up similar offices. One Chinese business leader recommended putting more (Chinese-language) resources online to guide prospective investors through the process. From a business standpoint, noted a Chinese executive, the US offers a compelling market for Chinese companies that sell high-value products and want to build their international reputation. In some cases, it may make sense to produce in the US to minimize logistics costs. And Chinese companies that build a presence in the US are better positioned to offer strong after-sales service. An investment banker who spoke at the event noted that multinational companies have tended to expand overseas through mergers and acquisitions. International acquisitions by big Chinese companies could help them to build globally-recognized brands. One proven strategy suggested by a Chinese business leader whose company has made multiple US investments is to start off small, then progress to biggerscale acquisitions. jin peng

t a half-day forum organized by AmChamChina at the Renaissance Hotel, Chinese and US officials, along with businesspeople and service providers, took part in panel discussions on how to expand Chinese business investment in the US. The meeting was part of an ambitious new effort to develop closer US-China ties Zhou Jianxiong presenting at the "Invest USA" Forum at the state and provincial levels. It follows on For now, though Chinese businessa historic visit by a delegation of Chinese people show a growing interest in investing governors to the US National Governors in the US, worries about cultural, legal and Association conference in Salt Lake City language barriers often discourage them earlier this year. from taking action. Such hurdles may prove Though the event included over a overwhelming for smaller Chinese firms. dozen participants, a partial list of speakBig enterprises are more likely to be able ers included Hawaii Governor Neil Aberto afford to hire US accounting, legal and crombie; Changsha, Hunan Mayor Zhang other service firms to ease their entry into Jianfei; Xiangtan Electric Manufacturing the US market. Group Chairman Zhou Jianxiong; and US Big Chinese cities and provinces typiState Department Principal Deputy Assiscally have a government commercial oftant Secretary Deborah McCarthy. Speakers at the event repeatedly fice that focuses on attracting foreign instressed it is a myth that the US is a difficult market to enter. In fact, registering a company usually takes only one to two days. Government approvals are minimal, if required at all, and the effective US tax rate for both companies and individuals, after factoring deductions and state and local incentives, is usually well below the nominal rate and ranks relatively Robert Wang, Deputy Chief of Mission at the US Embassy low by global standards.

For more information on AmCham-China’s Invest USA initiative, please email Andy Li: andyli@amchamchina.org. K.C. Swanson is the Director of Communications at AmCham-China.

A m C h a m - C h i n a I n Ac t i o n – S p e c i a l e v e n t

Tianjin Chapter’s 2011 Fall Classic Golf Tournament By Amanda He

AmCham-China would like to thank our generous sponsors: Exclusive Dinner Sponsor:

Photos by Anna Li

Beverage Sponsor:

Hole Sponsors:

Hank Martin (left) with nearest to pin winner Hans Loontiens

mCham-China members from several chapters and cities recently putted through the Tianjin Binhai Lake Golf Club for the chapter’s annual golf tournament. The day was full of great competition with many prizes and awards, and after the tournament an awards banquet was held for the lucky winners.

Tim Beagle (Cintas Tianjin Enterprise Services Co., Ltd.) dominated the competition by winning the longest drive and most accurate long drive, and finished first place in the tournament along with guest K.C. Tan. Hans Loontiens (Renaissance Beijing Capital Hotel ) and Damon Page (The St. Regis Tianjin) were the nearest to pin winners. Second place went to John Klinkerman and Peter Chen (Tianjin Sun Hope Healthy Products Co., Ltd.), and coming in at third place were Steven Yau (Renaissance Tianjin Lakeview Hotel and The Lakeview, Tianjin - Marriott Executive Apartments) and guest L. Tan. Numerous lucky draw prizes were also awarded throughout the evening. Tianjin Chapter would like to thank our major sponsors for their support: CSOFT International Ltd., Continental Airlines and Cintas. We would also like to thank our additional sponsors: Taylor Printing, Hank’s Sports Bar and Grill, St. Regis Hotel, Jones Lang LaSalle, New Continent, Radisson Plaza, Continental Airlines and Montrose Wine. Many thanks to everyone for participating in this successful event. We look forward to playing with you again next year!

Prize Sponsors:

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A m C h a m - C h i n a I n Ac t i o n – S p e c i a l e v e n t

AmCham-China thanks all of the generous Charity Ball sponsors The Odyssey level

The Blue Lagoon level

·Marriott International, Inc.

·Peabody Energy

The Bermuda Triangle level ·Beijing United Family Hospital and Clinics

·Motorola (China) Solutions Motorola Mobility

·APCO Worldwide

·China World Hotel

Robinson Crusoe Level ·Motorola Mobility

·Amway (China) Co., Ltd. ·NBTY (China) Trading Company Limited

·BDA (China) Limited

·Caterpillar (China) Investment Co., Ltd.

·The Boeing Company ·The Coca-Cola Company

·Cummins

·Lehman Brown ·Hines ·The Westin Beijing, Chaoyang

·Wilmer Cutler Pickening Hale and Dorr LLP

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·United Airlines

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·KPMG

·Arrail Dental ·Estee Lauder (Shanghai) Commercial Co., Ltd

·LTI Associates

·Microsoft

·ASC Fine Wines ·Grand Lucayan Bahamas

·Brown-Forman Corporation

·NBA China ·Celebration Cruise Line １．

２．

·Hilton Beijing ４．

３．

·Honeywell Inc. ·Ogilvy Public Relations Worldwide

·City Weekend Magazine 常规情况使用１号ｌｏｇｏ。Ｎｏ．１ｉｓｓｔａｎｄａｒｄｆｏｒｍａｔｆｏｒｇｅｎｅｒａｌｕｓａｇｅ．深色背景使用４号ｌｏｇｏ。Ｎｏ．４ｉｓｕｓｅｄｏｎａｄａｒｋｂａｃｋｇｒｏｕｎｄ．

·Qualcomm Wireless Communication Technologies (China)

·ctrip ·Hyatt Hotels Corporation

·Daniel Boulud's NYC Restaurant ·Skadden, Arps, Slate, Meagher & Flom LLP

·JW Marriott Ihilani Resort & Spa ·JW Marriott Waikiki Beach Hotel Resort & Spa ·Delta Air lines

·UTC ·Disney U.S.A Parks and Resorts The Black Pearl level ·Santa Fe Relocation Services

·Anheuser-Busch InBev

·Doubletree by Hilton Orlando

·That's Beijing Magazine

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A m C h a m - C h i n a I n Ac t i o n – S p e c i a l e v e n t

· Dragonfly Therapeutic Retreat · D-SATA by CuR · Element Fresh · Eric Paris Salon · Fairmont Beijing · Flamme · Fraser Suites · Fubar · Futian Shangri-La, Shenzhen China · Golden Flower Hotel by Shangri-La, Xian China · Grand Hyatt Beijing · Grand Hyatt Goa · Grand Hyatt Macau · Grand Millennium Beijing · Hilton Beijing Wangfujing · Hong Kong International Medical Clinic, Beijing · Hyatt on the Bund · Hyatt Regency Guam · Hyatt Regency Hangzhou · Hyatt Regency Hong Kong, Sha Tin · Hyatt Regency Saipan · John Walkins & Dinah Watkins · JW Marriott Bangkok · JW Marriott Hotel Chongqing · JW Marriott Phuket · Kempinski Hotel Beijing Lufthansa Center · Kerry Centre Hotel, Beijing · Kerry Hotel, Pudong Shanghai · Kowloon Shangri-La, Hong Kong · Kurki Fashion (Beijing) Ltd. · Le Meridien Cyberport · Le Meridien Qingdao · Le Royal Meridien Shanghai · Long Island Massage & Spa · Maison Boulud · Makati Shangri-La, Manila · Miri Resort & Spa, Marriott · MODO Restaurant · Mosto Restaurant · Mrs. Fields Gourmet Cookies · Neeti Banerjee · NFL China · Park Hyatt Beijing · Park Hyatt Maldives · Park Hyatt Ningbo · Park Hyatt Shanghai · Renaissance Riverside Hotel Saigon

Treasure Island level · Baker & McKenzie · Carestream Health · China International Travel Service Limited (CITS) · AmCham-China Christian Murck · Dow Chemical (China) Investment · Hatsune Restaurant Group · Intel · International School of Beijing · Meeting Professionals International (MPI) · The Schoolhouse · Westinghouse Electric Company · The Bama Companies, Inc.

Sand, Surf & Sea level · Air Canada · Astor Grill at The St. Regis Beijing · Barolo at The Ritz Carlton Beijing · BEI at The Opposite House · Capital Club · CRU Steakhouse at The JW Marriott Hotel Beijing · Raffles Beijing Hotel · Regent Hotel · The Courtyard · The Taj Pavilion

Mermaids level · 6th Sense-Potter's Wheel Tennis Academy · Alameda · Andaz Shanghai · Beijing Bellagio Restaurant Coorperation Ltd. · Beijing Marriott Hotel City Wall · Bodhi Therapeutic Retreat · Capital M · Charu Jewelry · Courtyard by Marriott Kunshan · Courtyard by Marriott Shanghai Pudong · Doubletree by Hilton, Beijing

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· Renaissance Sanya Resort & Spa · Renaissance Shanghai Putuo Hotel · Renaissance Suzhou Hotel · Salon De France · SALT · Sanya Marriott Resort&Spa · Sawaha · Shanghai Marriott Hotel Changfeng Park · Shangri-La Hotel, Beijing China · Shangri-La Hotel, Beihai China · Shangri-La Hotel, Changchun China · Shangri-La Hotel, Dalian China · Shangri-La Hotel, Dubai · Shangri-La Hotel, Guilin China · Shangri-La Hotel, Harbin China · Shangri-La Hotel, Huhhot China · Shangri-La Hotel, Kuala Lumpur · Shangri-La Hotel, Qingdao China · Shangri-La Hotel, Singapore · Shangri-La Hotel, Wuhan China · Shangri-La Jakarta · Shangri-La Rasa Ria Resort, Malaysia · Shangri-La's Rasa Sentosa Resort, Singapore · Sharon's Store · Sheraton Sanya Resort · Sofitel Wanda Beijing · Sparkle of Life · St. Regis Lhasa Resort · The Hutong · The Peninsula Beijing · The Rumi Grill · The St. Regis Beijing · The Westin Bund Center Shanghai · The Westin Guangzhou · The Westin Resort Macau · The Westin Shenzhen Nanshan · The Westin Taipei · TOTAL Int'l Moving&Shipping (TiMS) · Traders Hotel, Shenyang China · Trek Bicycle China · Wal-Mart China · Wcoffee · Yoga Yard · Zenspa · Mandrian Oriental Hotels

A m C h a m - C h i n a I n Ac t i o n – M e m b e r s h i p a n d s e r v i c e s

New and Renewed AmCham-China Members Corporate Members William Niebur , Tieling Pioneer Seed Research Co., Ltd. Alex Etkin , Tianjin United Family Hospitals and Clinics David Gahn , Taylor Printing Company (Tianjin) Limited Ian Dolling , Beijing Bausch & Lomb Eyecare Co., Ltd. Andy Kwok , Prime Vest Hongjing Group Ltd. Jonathan Kirkwood , Kirkwood & Company

Additional Corporate Members Jenny Mao , Hess China Oil and Gas Limited Bejing Representative Office Tim Cordingley , Hess China Oil and Gas Limited Bejing Representative Office Bin Zhang , Hess China Oil and Gas Limited Bejing Representative Office Daniel Liu , Tianjin United Family Hospitals and Clinics

Charlie Flint , Taylor Printing Company (Tianjin) Limited Sunny Sun , The Bank of New York Mellon Beijing Branch

Grace Gao , Auralog China Min Odenbro , Tricorona Carbon Asset Management

Vivien Bai , Loeb & Loeb LLP Beijing Representative Office

Additional Non-Resident Corporate Members

Yan Su , Coca-Cola Beverages (Shanghai) Company Limited

Sophie Guerin , SCHSAsia

Kevin Liu , Coca-Cola Beverages (Shanghai) Company Limited Salomon Tenenbaum , Kirkwood & Company Patrick Liu , Fitch Ratings (Beijing) Ltd.

Not-for-Profit Organization Membership Tiffan Zhang , Junior Achievement China Erin Sullivan , WildAid Inc.

Non-US Corporate Members Therese Fitzgerald , Allens Arthur Robinson Beijing Representative Office, Australia William Baker , Mahon China Investment Management Ltd. Beijing Representative Office

Additional Non-US Corporate Members

Additional Not-for-Profit Organization Membership Yang Gao , Junior Achievement China

Senior Professional Membership Stephen Henson

Alan Thometz , Grant Thornton China

Sally chen

Monthly Member Mix & Mingle (4M) Members meet the candidates for the chamber’s 2012 Board of Governors

he chamber’s popular Monthly Member Mix & Mingle (4M) was an even more special event in October, offering members the opportunity to meet the candidates for the 2012 Board of Governors and hear their vision for AmCham-China. At the 4M Grand Networking all-in-one-Night, held at the Westin Beijing Chaoyang Hotel, candidates introduced themselves, shared their plans for the chamber and greeted members. In addition to meeting the candidates, over 70

attendees caught up with old friends and joined new members for drinks and appetizers—a great opporCandidates Jon Christianson and Greg Gilligan at Westin Beijing Chaoyang Hotel tunity to network with AmCham-China members, the current leadership, future leaders and staff. and implants, courtesy of Arrail Dental. AmCham-China Vice President of MemDwight Nordstrom (China Manufacturbership, Services and Operations Nancy ing Holding and Consulting Company) won Cooke announced the event’s lucky draws a complimentary physical examination at winners: the Hong Kong International Medical Clinic. Michael Warren (Asian Express China AmCham-China’s next 4M is just Ltd.) was the lucky winner of a RMB 1500 around the corner, stay tuned for more voucher for teeth whitening, orthodontics event details coming soon.

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A m C h a m - C h i n a I n Ac t i o n – m e m b e r s p ot l i g h t

China’s business community is composed of one of the most diverse and interesting groups of people in the world. Every month, China Brief spotlights one of AmCham-China’s 2,600 members, offering readers a more personal look at neighbors, business associates and friends in the community. If you are interested in being featured, or have a member spotlight recommendation, please email editor@amchamchina.org

Jolene Kinser

周玲 Courtesy of Jolene Kinser

Hometown: Santa Rosa, California Position/Company: Executive Director/Step Up Educational

Consulting Company Job duties: Leading our team, developing trainers and curricu-

lum. We are a small company and I am one of the few bilingual speakers, so I wear many hats. Time in Wuhan: I moved to Wuhan in 2006, but have spent eight years in China (Beijing, Xi’an and Jinan). Why I joined AmCham-China:

To meet new people, network and learn from others in the chamber’s diverse and expanding community. My favorite AmCham-China experience:

Having the opportunity to participate in a welcome luncheon for the new US Ambassador to China Gary Locke here in Wuhan. Favorite places in Wuhan:

Gui Shan (Tortoise Hill) and the TV Tower. I love this park that is in the city’s center, yet does not have a crowd. Most meaningful learning experience:

I lived with two Chinese families during my second year of studying Chinese. Here I learned to notice and appreciate countless cultural differences that enable me to be a better boss for my Chinese co-workers today. I learned that most Chinese people don’t realize that Americans often express themselves directly, and that most Americans struggle with being indirect enough in this culture. On educational consulting in China:

We want to help people “step up” in life. We believe that success in life requires figuring out what motivates you, setting goals and developing skill sets and healthy relationships, not only good test scores. Through fun educational camps and English classes for youth, we talk straight with students, helping them discover that they have something to contribute to the world. We hold a variety of courses on topics such as conflict resolution, English business skills, stress management and parent-

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ing…..and we are willing to travel anywhere in the country. Let us know if you have a group that would benefit from our camps! The art of Chinese storytelling:

I have learned the art of Chinese storytelling, “ping shu” 评书. I love learning Chinese and this provided just the kind of challenge and connection with Chinese culture that I was looking for. A good storyteller is able to do amazing things with his or her voice. There are particular ways of drawing out words, pausing at just the right time, contrasting loud and soft, and pitching a phrase low and then moving it high that all must be mastered. You also need to speak with a Beijing-style accent to sound authentic. The effect is quite entertaining. I participated in a storytelling event in Beijing. It was a Chinese-American cultural exchange where some of China's best storytellers experimented with adding English to their storytelling, or told a Western story in a traditional Chinese format. I, an American, told a traditional Chinese story about Li Bai, one of China's famous poets. In addition to being a storyteller, I also was one of the two emcees for the event. Both were firsts for me! Two of China's classic storytelling styles were featured at the event: 1) "pingshu," in which the story teller uses a fan as a prop and bangs a block of wood on the table at timely moments, and 2) "kuaiban" bamboo clapper storytelling, where the story teller keeps the beat with a bamboo clapper while telling his story. I found that when I told the story to friends back in the US who don't speak any Chinese, they were mesmerized and enthusiastically listened to the whole story even though they didn't understand a word.

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see Please o learn t 0 page 3 e about r o m 's amber the ch rican Ame l Bal

The 2011 American Ball Charities Who they are and how you can get involved Courtesy of WWF

How AmCham-China members can get involved: Visit the farm, participate in training or volunteer to provide expertise for the Nature School. Members can also help raise awareness for community-supported agriculture in China, as well as promote it in their supply chain. For more information about the program, visit www.wwfchina.org and email Rachel Zheng at zhengmin@ wwfchina.org to get involved.

World Wildlife Fund (WWF)

JGI China aims to advance the power of individuals through informed and compassionate action to improve the environment for all living things. Roots & Shoots (R&S), its primary program, is an international, hands-on education program. Its goal is to empower young people to take action to help the environment, animals and community. We plant the seed of sustainability as we educate students who in turn inspire their peers.

INBAR is a global, intergovernmental organization dedicated to poverty alleviation, environmental sustainability and fairer trade through the use of bamboo and rattan resources. INBAR connects a network of 37 member countries, research institutes, chambers of commerce and non-governmental organizations. INBAR is headquartered here in Beijing. INBAR is partnering with the Sichuan Forestry Department and Fuping Development Institute to support earthquake-affected rural communities and social entrepreneurs in Sichuan province by developing the local bamboo sector to improve their livelihoods. Bamboo is a highly valuable product and is unique in its ability to conserve local environments while providing a source of income to local farms. Through the Hongguan Village Farmer Bamboo Cooperative, training will be provided to local farmers on leadership, financial business practices and environmentally-friendly farming techniques. How AmCham-China members can get involved: Members can donate cash, make in-kind contributions or volunteer their time to provide business expertise and mentoring. Members can also help raise the programâ&#x20AC;&#x2122;s visibility in China and within their networks. For more information, visit www.switchbamboo.org and email Nicole Kun at kli@inbar.int to get involved. JGI China is partnering with the Migrant Children Environmental Education Project, which cultivates social entrepreneurial thinking among young leaders. University students are trained to mentor and teach migrant children about local environmental issues, while developing entrepreneurial and leadership skills. The migrant children then learn how to implement small projects in their schools and communities. Both groups of students will be empowered, trained and prepared to make a difference in their futures. How AmCham-China members can get involved: We welcome members to lead training workshops on project management and entrepreneurship in late 2012. Members can also lend their expertise and support to develop long-term collaborations with R&S to expand this project and ensure its sustainability. For more information, visit R&S at www.genyuya.org.cn and email Lei Chen Wong at lei@jgichina.org to get involved.

Courtesy of JGI CHina

The Jane Goodall Institute China (JGI China)

Courtesy of INBAR

WWF is dedicated to the conservation of nature and has been active in China since 1980, when it was the first international NGO invited by the Chinese government to work on nature conservation. WWF has more than 120 staff working in China on conservation programs. WWF is partnering with Daorong Farm to promote traditional farming methods that reduce harmful agricultural pollution of the Huangpu River, a source of drinking water for communities near Shanghai. The farm will serve as a teaching facility and demonstration project to introduce environmentally friendly methods to 50 farms in the surrounding area. Regional farmers will also learn strategies for selling to urban consumers. Through improved agricultural practices and reintroduction of native plants and fish, the project will restore the surrounding wetland system of Xiaofenyang Lake.

INBAR

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The special fares exclude applicable tax and airport fees. Terms and restrictions apply. Air Canada reserves the right of interpretation of this promotional message.

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Air Canada China Call Center

400 811 2001