Dragon News - No. 1, 2012

M E M B E R M AG A Z I N E FO R SW E D I S H C H A M B E RS O F CO M M E RC E I N H O N G KO N G A N D C H I N A

No.01

2012 Time to go green

6

Opinion Go East, Go West!

20 Executive talk

Helping companies to be more secure

50 The chamber and I

Expanding the chamber activities

China’s new five-year plan will create opportunities for Swedish companies that offer solutions for the environment.

Publisher Swedish Chambers of Commerce in Hong Kong and China For advertising inquiries, please contact respective chamber’s office The opinions expressed in articles in Dragon News are those of the authors and do not necessarily

CONTENTS

reflect the views of the publisher.

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Editorial management, design and printing Bamboo Business Communications Ltd Tel: +852 2838 4553 Fax: +852 2873 3329 www.bambooinasia.com bamboo@bambooinasia.com Art director: Johnny Chan Designer: Victor Dai English editor: Chris Taylor Cover photo: iStockphoto INQUIRIES Swedish Chamber of Commerce in Hong Kong Room 2503, 25/F, BEA Harbour View Centre 56, Gloucester Road, Wanchai, Hong Kong Tel: +852 2525 0349 E-mail: chamber@swedcham.com.hk Web: www.swedcham.com.hk General Manager: Eva Karlberg Finance & Administration Manager: Maria Tornving Jubilee Intern: Dan Fjeldheim Ek

INQUIRIES Swedish Chamber of Commerce in China Room 313, Radisson Blu Hotel 6A, East Beisanhuan Road, Chaoyang District Beijing 100028, People’s Republic of China Tel: +86 10 5922 3388, ext 313 Fax: +86 10 6462 7454 E-mail: beijing@swedishchamber.com.cn Web: www.swedishchamber.com.cn General Manager: Yvonne Chen Member Service & Sales Manager Beijing: Karin Roos Webmaster & Finance Assistant: Jaycee Yang Administration Assistant: Vika Jiao

Shanghai Contact Member Service & Sales Manager Shanghai: Johanna Pollnow Tel: +86 21 6217 1271 Fax: +86 21 6217 0562 Mobile: +86 1368 179 7675 E-mail: shanghai@swedishchamber.com.cn

6 Opinion: Bengt Johansson 8 Snippets 10 Cover story:

On a green boat to China

20

20 Executive talk: Lars-Ă…ke Severin 22 Young Professional interview: Mary Huynh

24 Feature: Christina Gustafsson 28 Chamber activities in Hong Kong 30 Chamber activities in Beijing/Shanghai

22

32 New members 40 Feature: Children’s rights 42 Green business seminar in Hong Kong

24

44 Chamber news 46 Obituary: Mats Johansson 48 After hours 50 The chamber and I: Katarina Nilsson HlZY^h] 8]VbWZg d[ 8dbbZgXZ ^c =dc\ @dc\

ADVERTISERS APC Logistics page 31, Bamboo page 41, B&B Tools page 39, Finnair page 2 Environmental Air of Sweden (EAS) page 47, Executive Homes page 49

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Thank you!

APC Logistics for your immense generosity shipping and distributing Dragon News in China, Hong Kong, Asia and Sweden.

Scandinavian Airlines System (SAS) page 52, Scandinavian Furniture page 45

Iggesund Paperboard for being the proud sponsor for the paperboard cover of Dragon News magazine in 2009.

Cover printed on InvercoteÂŽ Creato 220gsm.

Scania page 37, Scan Global Logistics page 49, SEB page 5

Scandinavian Airlines

Sigtuna Boarding School page 47, Swedbank page 33, Swedish Trade Council page 43

for your generous distribution of Dragon News on SAS flights from Beijing to Scandinavia.

Johnny’s Photo & Video Supply page 34, Mannheimer Swartling pages 26-27

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10

4 Editorial

Handelsbanken page 9, Iggesund Paperboard page 17

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No.012012

Nordea page 37, Primasia page 45, Radisson Blu page 29

Vinge page 35, Volvo page 51, Work Space page 19

The Swedish Chambers of Commerce in Hong Kong and China

DRAGONNEWS t /0 3

Jon Hicks/Corbis/Scanpix

EDITORIAL

Better environment, better business Dear Reader, This issue of Dragon News will focus on the environment. In recent years, even expats coming to China for a short period of time are affected by increasing air pollution, as well as other environmental and food health hazards. But Sweden has not always been that good either.

No one in the first half of the 20th century would have thought of taking a swim in central Stockholm or fish for dinner there.

The air and the water was filthy, to say the least. As late as in the late 1960s Sweden had no effective environmental legislation.

In the early 1970s, a company in Teckomatorp (a small village in the south of Sweden) buried barrels filled with poisonous material. People living next to the factory began to complain about the water and an increased number of allergies. The outcries from the villagers did not bother the authorities at all, but one brave woman, Monica Nilsson, alerted the press. An article was prepared but when the general manager of the factory threatened to sue the newspaper, the article was never published. But Monica Nilsson did not give up, and later the barrels were found.

At first, the company claimed the barrels did not contain any toxic waste. Law suits and criminal charges proved useless as the 4 DRAGONNEWS t /0

company went bankrupt. There were some thousand barrels containing toxic waste buried in the ground and all of them were rusting.

It was considered not economically viable to clean up the area. Part of the area was planned to be cleaned to some extent as late as in 2010 at an estimated cost of some SEK 180 million (about the same in RMB).

Today the environmental situation in Sweden and the rest of Europe has improved enormously. Environmental pressure groups and political activists created the needed incentives to make politicians do something about the environment. Now everyone is rightly proud of the environment.

So what is the recipe for a better environment? We believe the answer lies in awareness and accountability. The public has the right to be properly informed, although it may seem tempting to companies and to politicians to try to hide any problems and hope they go away.

However, when the air is so thick you can carve it with a knife, it is impossible to pretend the problem will go away. Recent discussions in Beijing as to whether to measure PM10 or PM2.5 (air particles that are less than 10 or 2.5 micrometres in size) become laughable when everyone can see, smell and feel that the air quality in that city has seriously deteriorated since the temporary, but

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Mats Harborn Chairman Swedish Chamber of Commerce in China

Ulf Ohrling Chairman Swedish Chamber of Commerce in Hong Kong

wonderful blue skies of the Beijing Olympic Games in 2008.

In Hong Kong, politicians try to shift the blame on the factories over the border despite the fact that some of the worst pollution comes from roadside pollution and shipping in Hong Kong itself.

The question now, both in China and Hong Kong, is whether one can expect the environmental situation to improve when awareness is lacking and there is a very low degree of accountability.

According to the Hedley Environmental Index, air pollution in Hong Kong over the last five years has resulted in 3,200 premature deaths, 160,000 hospital bed days and 7.4 million doctor visits, all at a staggering economic loss of HK$40 billion. What are the equivalent statistics for Beijing, Shanghai and Chongqing? And how many Teckomatorp are there in China?

A good economy is about more than high profits as negative effects on the environment also come at a price. And the sooner society is prepared to pay that price, the better for everyone. The beautiful thing is that not only does it pay off for governments to invest in a cleaner environment, but also for private businesses. Green business is profitable business.

The Shanghai World Expo slogan was so right: Better city, better life, and we would like to add a tagline to that catch-cry: better business.

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In 2000, China announced its ‘Go West’ policy, but not much happened at first. Now, there is a steady flow of companies moving westward. But how long can a trend last? Sweden’s consul general in Shanghai, Bengt Johansson, sees history in China repeating itself.

The consul general of Sweden in Shanghai, Bengt Johansson, started his career in 1972 as assistant to the Swedish Trade Commissioner in Prague.

He then worked at the Swedish Trade Council, the Swedish Ministry of Commerce and the Swedish Foreign Ministry, where he headed the section for trade with China.

From 1988 to 1999 he was consul at the Consu-

late General of Sweden in Hong Kong, minister at the Embassy of Sweden in Beijing, director at the Swedish Trade Council in Taipei and Sweden’s first consul general in Shanghai. From 1999 to 2008, Johansson held various high positions at the Swedish Foreign Ministry, the EU Commission and the Swedish Prime Minister’s office, before returning to Shanghai for a second spell as consul general.

TEXT: Bengt Johansson, Consul General, bengt.e.johansson@foreign.ministry.se PHOTO: iStockphoto

T

he latest issue of the magazine Shanghai Talk has a powerful message on the cover: “Go West to Chengdu!� You hear such statements often in Shanghai these days. Those who are young and think big should go to Chengdu or Chongqing.

You read about art galleries that are being set up and of Chinese professionals returning home to Sichuan from Beijing and Shanghai.

Economic geography in China is a fascinating game. The country develops in leaps and bounds, and we can seldom predict the next development. West China saw two earlier large inflows of Chinese in the last century. A number of institutions and universities moved to Sichuan and Yunnan during the Second World War, and huge heavy industry investments were made in the 1950s. In 1979, the wind turned when the four special economic zones (SEZs) were formed and Hong Kong capital was lured to these southern port cities.

When I came to Shanghai to open the consulate in 1996, Shanghai was already dynamic but still in the shadow of the southern provinces. Only in 1998 did we reach the level of 100 Swedish nationals in our books.

The infrastructure of the city was, however, excellent – no traffic queues – and we could foresee a steady growth of our community.

When the “Go West� policy was announced in

2000, I did not think much would amount to the idea. There was still plenty of room for expansion on the eastern coast; migrant labour was abundant for decades to come, and long distance transportation was erratic.

When I returned to Shanghai in 2008, the mood had changed. Migrant labour was no longer a sustainable solution. Workers were exploited and had not been given hukou – residential registration – rights. The financial crash in 2008 seemed to kill the southern Chinese migrant-labour based export industry, and in East China labour started to become expensive. Suddenly “Go West� really was an option for new investors.

How long can a trend last?

A decade ago office rents in Saigon were the highest in the world. Every multinational corporation seemed to be setting up office

When the ‘Go West’ policy was announced in 2000, I did not think much would amount to the idea.�

6 DRAGONNEWS t /0

there. The boom lasted only a couple of years.

Development reaches saturation when problems outnumber the possibilities. The problem I see for West China is that transportation by road to East China takes four to five days.

The Chinese coastline has the definite advantage in its ports. Ningbo is the fastest growing port in the world but only attracts a fraction of the companies that want to set up in Suzhou. There, the Singapore-inspired economic zone administration is the big asset.

visas from 2013 requires us to be where clients are (life is difficult for companies who are not where we are), but where exactly? Half of the consulates today are in Chengdu, and half in Chongqing. This, in itself, is a complicating factor. Lufthansa flies to Chengdu and Xi’an; Finnair starts to fly to Chongqing in May. Have we faced such choices before? Yes, is the short answer.

In a study I am carrying out about the historical Swedish presence in China, I note that this discussion was already underway in 1850 I recall a visit to and has been going on alformer Shanghai mayor most entirely ever since. We Xu Kuangdi at end of the moved our Honorary Con1990’s. When he was asked The number of Swedes in sulate General from Canton if competition between Shanghai and Jiangsu Province in to Shanghai in 1863 in Shanghai and Hong Kong December 2011. view of the promising shipwas not a zero sum game, ping prospects. Leading he answered that China was business groups lobbied for a carrier consulate like a small Boeing with two engines. In 10 and in 1865 Herman Annerstedt was sent to years, he said, the economy will be like a big Hong Kong to open one. He returned next airplane requiring four engines – for example year without completing the task. He wrote to by adding Qingdao and Dalian. All the same, King Oscar II that the idea was stupid. China I have not heard much about Qingdao and business was best conducted in London and Dalian since then.

Hamburg, he argued. The Norwegians, howThe Swedish community in Shanghai and ever, pushed for a strong consulate in Shanghai Jiangsu grows every year, numbering 1,604 in to serve their shipping interests.

December 2011, an increase of 25 per cent.

After the separation from Norway in This trend will continue, I am convinced, 1905, Sweden started a trade offensive, sendeven if a number of companies move westing Gustaf Wallenberg to Tokyo, where he ward. There will be a need for a consulate also served as envoy in China. To lobby for in West China as biometric requirements for

1,604

A decade ago, office rents in Saigon were the highest in the world [but] the boom lasted only a couple of years.� his trade projects, he often needed to go to the imperial court in Beijing. He argued for a Swedish legation there. The republican revolution made the issue of the capital an open question, but Wallenberg stuck to his guns, and was supported by the vice consul in Hong Kong, Anton Nilsson. The consul general in Shanghai argued against it, in the spirit of “Where you stand depends on where you sit�, but lost and the legation was opened in 1920.

When China moved its capital to Nanjing, the legation was moved to Shanghai. During the Second World War the legation moved to Chongqing and then to Nanjing. When the civil war ended Sweden returned to Beijing in 1950 and closed the consulate in Shanghai in 1956. The rest is as we say history.

Nothing is new under the sun. b DRAGONNEWS t /0 7

E N V I R O N M E N TA L S N I P P E T S

Dongtan – an eco-city flop

Eco-cities all over China Q The rapid population influx to China’s cities is creating severe environmental problems in the metropolitan areas. One solution is to build sustainable cities, or “eco-cities�, and some of the world’s most ambitious such projects are underway – 40 of them countrywide. China’s long-term plan is to build 200 eco-cities for about half a billion people.

The largest project is, so far, the Tangshan Caofeidian International Eco-city, some 200 kilometres southeast of Beijing. Urban planners, architects, engineers and technical consultants from the Swedish engineering and design company Sweco have taken part in planning of the first phase, a 30-squarekilometre area.

The goals are high in terms of ecological, economic and social sustainability. Among other things, Caofeidian is intended to be climate-neutral, using up to 95 per cent renewable energy. The city is also planned to be flexible, resource- and cost-effective, accessible and, not least, beautiful.

Another ambitious project is the SinoSingapore Tianjin Eco-city, located on a 30-kilometre parcel of non-arable coastal land just outside Tianjin. The futuristic development is being designed and developed as

a joint venture between the Chinese government and the Surbana Urban Planning Group, a Singaporean engineering firm.

It is being built according to a master plan with 26 key performance indicators (KPIs) that consider everything from the quality of ambient air and tap water, to the proportion of green buildings and the use of water from non-traditional sources. Half of the city’s water supply is expected to come from desalination and recycling. The project will also offer subsidised housing to make it possible for people from all economic strata to live there.

Sweden is also involved in a project in Wuxi, Jiangsu Province, named the Sino-Swedish Low Carbon Eco-city, located in the Taihu New City. The Swedish Trade Council has a cooperation agreement with the city of Wuxi to develop cooperation in sustainable business.

Other eco-city projects in China include the Shenzhen Guangming Eco-city in Guangdong Province, the Yangzhou Eco-city in Jiangsu Province, the Nanjing Eco-city in Jiangsu Province (where several eco-cities and eco-business parks are under development), the Huaibei Eco-city in Anhui Province, the Langfang Eco-city, outside of Beijing, among many others.

QUOTE

“Today, we have some of the worst air quality in the world, certainly by the standard of a developed economy ‌ It is quite clear [that] the government is prepared to trade off children’s health in favour of business infrastructure development.â€?

Professor Tony Hedley in Radio Television Hong Kong’s (RTHK’s) Backchat programme in January 2012. Follow the Hedley Environmental Index in Hong Kong at http://hedleyindex.sph.hku.hk. Just a warning, it could be scary ...

Did you know ‌ Q ‌ that the air pollution generally emitted from ocean-going vessels is such that 16 large ships emit as much sulphur as all the cars in the world combined? Besides, says Clear the Air – a charity organisation committed to improving the air quality in Hong Kong – we have to bear in mind that there are 100,000 ships of various sizes on the seas today. International shipping today ac8 DRAGONNEWS t /0

counts for 8 to 10 per cent of sulphur emissions from all types of fossil fuels and also contributes to nearly 30 per cent of global releases of nitrogen oxides.

Q The Chongming Dongtan Eco-city was supposed to be “the world’s first,� as press releases billed it back in 2005. A grassy island near the crowded metropolis of Shanghai was to be transformed from a marshy backwater into a gleaming community of energyefficient buildings housing 50,000 people. At least, that was the idea behind the project, which was designed by the British engineering giant Arup.

Today, nearly nothing has been built and construction has halted. Although the project was widely publicised internationally, most locals knew little about it. The political leaders who championed the project were ousted in a corruption scandal and their successors have allowed construction permits to lapse.

Dongtan is not the only eco-city project in China to collapse. There are several others, including the Huangbaiyu project in northeast China’s Liaoning province.

Guide for safe shopping Q A report released in January by the environmental organisation Greenpeace showed that most products found at five supermarkets in China contain residues of one or more pesticides, and in some cases, these pesticides are either banned or the amount of residues exceeds legal limits.

In November, Greenpeace randomly purchased 35 samples of fruits and vegetables from five supermarkets in Beijing, Chengdu and Guangzhou. Of the 35 samples, all but five contained pesticide residues.

As a result, Greenpeace has put together a guide for consumers to help them avoid supermarkets that sell dangerous food.

The guide, released in December, can be found on the Greenpeace website, www. greenpeace.org/eastasia/press/releases, unfortunately only in Chinese. “Consumers have a great weapon in the fight for safe food – choice,� Greenpeace food and agriculture campaigner Wang Jing said. “If we choose not to buy unsafe food, then supermarkets won’t sell them.�

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China’s new five-year plan will create opportunities for Swedish companies that offer solutions for the environment.

PHOTO: iStockphoto

TEXT: Jan HĂśkerberg, Bamboo, jan.hokerberg@bambooinasia.com

D

uring the 2008 Beijing Olympic Games, the air in Beijing improved radically but it was too good to last. The veil of smog lifted from Beijing was back just a year later.

Beijing spent more than US$10 billion to clean up its polluted air before the Olympics. According to a study published by the National Bureau of Economic Research the government managed to improve air quality by 30 per cent during the games, compared to year-earlier readings. But a year after the games, about 60 per cent of those gains had evaporated.

Until mid-January this year, the city authorities were only releasing information using the PM10 index, which measures slightly larger particles in the air.

Beijing city authorities had, however, been measuring pollutants smaller than 2.5 micrometres (PM2.5) for five years, but without releasing the figures. PM2.5 pollutants are considered the most hazardous particles and are primarily responsible for decreased lung capacity, shortness of breath, coughing and eye and nose irritation.

In the meantime, the US embassy in Beijing had been collecting and publish-

ing PM2.5 information for some time. Its numbers often suggested the city’s air was more polluted than the local government figures showed.

This pressure from the Americans forced local officials in Beijing to announce that they would start publishing the PM2.5 data on the website of the Beijing Municipal Environmental Monitoring Centre.

and to use them as a tool to address the epidemics of public health impacts,� she said to the South China Morning Post.

It is a clear fact that air pollution kills people. China’s Ministry of Science and Technology has admitted that air pollution kills 50,000 new-born babies per year.

Figures from the University of Hong Kong’s Hedley Environmental Index says that more than 7,200 local deaths had been This also put pressure on the Hong connected to air pollution Kong government, where in the seven years Chief air-quality monitoring Executive Donald Tsang is based on 24-year old has been at the city’s helm. criteria. A week after BeiIt is figures such as jing pledged to measure The number of deaths in Hong these that are leading to pollutants smaller than Kong connected to air pollution growing environmental PM2.5, the environment since 2005, according to figures by awareness among the minister said that Hong the Hedley Environmental Index. public, both in China Kong would do the same and in Hong Kong. later in March. “The mainland is much more aggressive than Hong Kong in dealing with setting air Sweden is a pioneering country when it comes to sustainability. As early as the quality objectives,� said former lawmaker 1960’s, Sweden recognised that the rapid loss Christine Loh Kung-wai of the Hong Kongof natural resources had to be confronted. based think-tank the Civic Exchange.

It took a leading role in organising the first “This has happened because Hong UN conference on the environment, which Kong’s senior officials lack the understanding was held in Stockholm in 1972. and courage to set demanding [objectives]

7,500

On a green boat to China 10 DRAGONNEWS t /0

DRAGONNEWS t /0 11

Electric vehicles are not the solution Trucks and buses meeting the Euro 5 or Euro 6 emission standards using sustainable biofuels are much better alternatives for the environment than electric vehicles as long as the electricity comes from fossil-energy sources, according to Nick Leach, an environmental expert at Scania Hong Kong.

Leach has worked at Scania for 36 years in the UK, South Africa, Australia, Sweden, and the last five years in Hong Kong. Over the years, he has built up a high level of knowledge and expertise in sustainability issues. “We want to make sure that the decisionmakers who decide on our future are well

During the oil crises of the 1970s and 1980s, tremendous efforts were made to find new sources of energy, create new ways to insulate buildings and develop automatic energysaving systems.

Since 1970, the dependence on oil for heating and electricity production in Sweden has gone down by 90 per cent. From 1990-2006, Swedish carbon dioxide emissions fell 9 per cent, while at the same time the gross national product (GNP) increased by 44 per cent. These are statistics that prove that sustainable thinking can make

12 DRAGONNEWS t /0

Polluted smog surrounds the Forbidden City in Beijing.

173

PHOTO: Scania

informed. We are convinced that Scania can help to improve the environment in Hong Kong and then it is our duty to assist the government to keep up to date with the latest information in our field of industry,� he says.

New private cars pollute very little today in Hong Kong but the problem is that they clog up the roads, which become jammed with old heavy-duty diesel-driven trucks and buses.

European emission standards define the acceptable limits for exhaust emissions of new vehicles. The legislation in Hong Kong obliges new trucks and buses to meet the Euro 4 standard, but a majority of diesel vehicles in Hong Kong only meet the Euro 1, 2 and 3 standards that were introduced 10-20 years ago, while several are even pre-Euro standard.

Over 90 per cent of Scania’s new trucks and buses that have been sold in Hong Kong in the past two years meet the tougher Euro 5 standard. Viewing the company’s website on 5 March, 2012, Scania states that it has so far delivered 1,075 Euro 5 vehicles to Hong Kong, which has reduced the emissions of nitrogen oxides (NOx) by 173 tonnes compared with vehicles meeting the legislated Euro 4 standard. Nitrogen oxide is a major pollutant in Hong Kong and highly responsible for smog. “Euro 5, and especially the newer Euro 6, are coming very close to zero emissions of local pollutants. The problem is not the new vehicles; the problem is getting the old ones off the roads. If all the vehicles on Hong Kong’s roads were Euro 5 or Euro 6 nobody would be discussing roadside pollution,� says Leach.

Nick Leach of Scania wants to see more diesel vehicles meeting the Euro 5 and Euro 6 emission standards on the roads of Hong Kong.

Globally, more land is used for golf courses than for biofuels today.�

Nick Leach, Scania

PHOTO: iStockphoto

The roadside pollution levels in Hong Kong were the worst ever in 2011, according to the Environmental Protection Department.

Readings at three roadside monitoring stations showed that pollution levels were above the 100 mark more than 20 per cent of the time. This was 10 times worse than in 2005, when very high readings were recorded only 2 per cent of the time.

A reading over 100 means at least one pollutant fails the air quality objectives.

Environmentalists, such as Clear the Air – a local anti-pollution organisation – are calling for the immediate introduction of new air-quality objectives, claiming that the government had deliberately delayed their introduction to ease the way for major infrastructure projects.

The department blamed the figures on unfavourable weather conditions, worsening background pollution and the ageing vehicles on the streets. “Transport is necessary in a society. You need to move goods and you need to move people, but you also need to focus on sustainability,� says Nick Leach, regional director for vehicle sales support based at Scania in Hong Kong.

Electric vehicles have been promoted by the Thirteen countries around the world, Hong Kong government as a solution for the including Sweden, England, France, Italy, future. In September, officials said they were Thailand and Australia, are trialling ethanol aiming for 30 per cent of privately owned as fuel for their buses. Second-generation cars in the city to be hybrid or electric by ethanol from waste and cellulose does not 2020. The government is encouraging busirequire any dedicated land, and supplies will nesses and car-park owners to install at least increase in the future. In the meantime sugar 2,000 charging stations by 2013, setting up cane is a very good high-yield alternative an electric infrastructure before the vehicles when land is available. This is the situation hit the roads in significant numbers. in Brazil, where ethanol has been used as a “The man on the street understandably vehicle fuel for many years. However, sugar perceives electric vehicles to be clean. But it cane plantations only occupy around 1 per is a myth if the electricity comes from fossilcent of the country’s arable land. energy generation with high emissions of Sweden’s capital, Stockholm, is a role modpollutants, which it currently does in Hong el for operating sustainable public transport, Kong. Electric vehicles are only good for the according to Leach. The city’s bus operator, environment if the electricity comes from Storstockholms Lokaltrafik (Greater Stockclean, sustainable sources, holm Local Transport, SL), has which may be the case in the been running buses on ethanol, future, but not yet� says Leach. and then other biofuels, since Then there is the battery 1989, which has had a great efissue. Electric bus batteries fect on air quality and lowered The reduction in tonnes weigh two to three tonnes the emissions of carbon dioxide of hazardous nitrogen today, which means that the (CO2) by an estimated 80,000 oxides emissions in bus gets much heavier and can tonnes per year. An average Hong Kong due to carry fewer passengers. They city bus operating on fossil Scania’s deliveries of are also extremely expensive, fuel emits some 90 tonnes of 1,075 Euro 5 vehicles. and what to do with used batcarbon dioxide per year. teries in an environmentally SL has also invested heavily in acceptable way has yet to be established. new biomethane-powered buses. The biomethane that refuels the buses comes through a Leach believes strongly in biofuels. The direct line from a nearby sewage treatment currently available varieties are ethanol, plant. The project is a good example of the biomethane and biodiesel. He sees future switch from fossil fuel to biofuels, where the production coming from sugar cane, solid and environmental and financial effects benefit liquid waste, and from cellulose. both transport providers and travellers.

There is a huge potential to increase proLeach’s conclusion is that trucks and buses duction of biofuels in Africa and Latin America, meeting the Euro 5 or Euro 6 emission standwhere there are large areas of rain-fed arable ards, and ideally using sustainable biofuels, land and the investment costs are low. are much better alternatives for the environ“Globally, more land is used for golf ment than electric vehicles, as long as the courses than for biofuels today,� says Leach. electricity comes from fossil-energy sources.

a crucial difference in decoupling environmental issues from economic performance.

The result in Sweden is a huge number of companies working with various types of environmental solutions – and many of them have established themselves in China and Hong Kong.

Envac is such a company. It is the global market leader in automated vacuum-waste collection and the inventor of the vacuum system.

Envac has installed many of its systems in China and Hong Kong, and is particularly targeting the

development of eco-cities all around China. “The agenda for eco-cities is slightly different from normal development since it has a clear focus on green technology. It helps us to be part of the overall infrastructure right from the beginning,� says Tan Chin Tiong, vice president for the Asia-Pacific region (see separate article).

Another Swedish company making inroads in China is Environmental Air of Sweden (EAS), which is marketing air cleaners for offices, hospitals, schools, hotels,

entertainment centres, private homes, etc. “We differ from most other suppliers since our machines can eliminate the contamination even from the small and most hazardous, PM2.5, particles,â€? says GĂśran Hertzberg, managing director of Environmental Air of Sweden (EAS) (see separate article). “Environmental solutions is one area where Swedish companies really can compete,â€? says Anita Jonsson, head of the Swedish Sustainable Business programme in China at the

DRAGONNEWS t /0 13

Envac is focusing on eco-cities

The agenda for eco-cities is slightly different from normal development since it has a clear focus is on green technology.�

The Chinese are impressed by Swedish environmental technology.

14 DRAGONNEWS t /0

Envac is the global market leader in autocities projects as well as in an eco-town in mated vacuum waste collection and the Guangzhou. inventor of the vacuum system. Envac has 35 “The agenda for eco-cities is slightly differoffices in 20 countries and has made around ent from normal development since it has a 30 installations in China and Hong Kong in clear focus on green technology. It helps us eco-cities, residential areas, offices, hospito be part of the overall infrastructure right tals, catering centres at airports and railway from the beginning,� says Tan. stations, etc. “Eco-cities are also government-driven, ofPrestigious projects include the Beijing 301 ten in cooperation with other countries such Hospital, the Beijing World Financial Centre, as Singapore in Tianjin and Sweden in Wuxi, so eco-cities in Tianjin and Wuxi, the China Souththere is a strong political will. If you leave it all ern Airlines kitchen at the Guangzhou Baiyun up to the private sector to decide, green soluInternational Airport and the tions are often not considered Hong Kong Science Park. as very urgent and important,�

There is a growing labour he says. shortage for manual handling of waste collection. Today, a Tan is very happy about the Many municipalities in majority of the collectors are activities carried out by the South Korea have made old – young people in general Swedish embassy’s Centre it mandatory that every don’t want to work with rubfor Environmental Technology residential building with bish. Modern cities in Asia (CENTEC) and the Swedish more than 500 flats are dependent on foreign or Trade Council (STC). must have an automated migrant workers to do the job. “They do a wonderful job waste-collection system. “In Singapore, for example, and it helps us a lot. China

500

most collectors are non-Singaporeans. The alternative is automation, which at the same time also improves the environment. Envac’s technology is an obvious choice for a sustainable future,� says Tan Chin Tiong, vice president for the Asia-Pacific region.

There is also a hygienic aspect. Bacteria spread much faster when waste is handled manually, which could be disastrous for example in hospitals and large kitchens.

(Above) Sweden presented advanced technologies at the Nanjing Environmental Exhibition in November 2011.

(Right) Envac’s waste collection system for large catering kitchens efficiently removes all types of organic and solid waste in the meal preparation and dishwashing areas.

Envac has much focus on the development of eco-cities in China and is actively involved in both the Tianjin and Wuxi big eco-

PHOTO: Envac

Over the past few years, the STC has arranged 18 clean-tech workshops and exhibitions, all with fruitful results.

At a recent event, at the Nanjing Environmental Exhibition in November 2011, Sweden had the largest pavilion, with 25 exhibitors and 70 participants, presenting advanced Swedish technologies in air and water pollution, waste handling and urban construction, and sharing experience with Chinese counterparts. It was a joint effort by the STC, the Swedish Consulate General in Shanghai and the IMT, a body in Sweden that stands for the International Environmental Technology Cooperation. “In the Nanjing exhibition, Sweden had the largest pavilion. I don’t think it has ever happened at a trade show in China,� says Jonsson.

PHOTO: STC

Swedish Trade Council (STC) in Shanghai. “China is very impressed by what Sweden has achieved in this field. About half of all the technical visits to Sweden come from China.�

Swedish Sustainable Business is a project to develop sustainable business for Swedish-Chinese trade. It focuses on Swedish companies doing business in China and their Chinese suppliers and partners. The programme is managed by the STC in close cooperation with the Consulate General of Sweden in Shanghai and Shanghai International Sourcing Promotion Centre.

But when Jonsson opened STC’s office in Shanghai in 1996 there was not much environmental awareness in China. “At that time, everybody talked about growth. Today, China realises that they have to protect the environment in order to achieve growth,� says Jonsson.

About 10 per cent of Sweden’s export to China are “green� or so called “cleantech� solutions.

PHOTO: STC

Tan Chin Tiong, Envac

Envac’s automated vacuum waste collection system has been installed in many projects in China and Hong Kong. “It is an obvious choice for a sustainable future,� says Tan Chin Tiong, vice president for Asia-Pacific.

looks very much up to Sweden when it comes to environmental technology, and when these organisations say something it is regarded as much more powerful than if it came from a private company,� says Tan. Envac’s biggest market in Asia is South Korea. There, many local governments have implemented bold and visionary regulations that say that every residential development with more than 500 apartments must have an automated waste collection system. “We have many installations in South Korea and some of them are even more advanced than the systems we have in Europe,� says Tan.

Envac’s system is used in many residential areas around the world.

DRAGONNEWS t /0 15

At that time [in 1996], everybody talked about growth. Today, China realises that they have to protect the environment in order to achieve growth.�

Anita Jonsson, the Swedish Trade Council

The STC has signed a cooperation agreement with the city of Wuxi to develop cooperation in sustainable business.

One of the areas for cooperation is the Taihu New City, where the Sino-Swedish Low Carbon Eco City will be constructed in cooperation with Sweden. Swedish Sustainable Business has arranged environmental seminars and business delegations to Wuxi to support this project.

The timing for companies that are offering environmental solutions for the China market is very good because China is now giving high investment priority to such areas.

In its 12th five-year plan, the Chinese government has given priority to develop seven emerging industries: energy efficiency and environmental protection, renewable energy, new energy cars, smart materials, high technology equipment,

16 DRAGONNEWS t /0

EAS is cleaning the air Air cleaners from Environmental Air of Sweden (EAS) show very good result in tests when it comes to eliminating even the small and dangerous PM2.5 particles.

Outdoor air pollution is affected by many different factors and it takes time to make substantial improvements. To clean the air indoors, however, is a totally different thing. “Indoors it is possible to get a better environment very quickly at a decent cost,â€? says GĂśran Hertzberg, managing director of Environmental Air of Sweden (EAS), a developer of highly efficient air cleaning systems that are designed and produced in Sweden.

EAS has been in China for 10 years, delivering its air cleaners to corporate offices, hospitals, schools, hotels, entertainment centres and private homes. “We differ from most other suppliers since our machines can eliminate contamination from even the smallest and most hazardous PM2.5 particles,� says Hertzberg.

nature uses through thunderstorms.

Charged air is spread into the room to target the contamination source (bacteria, viruses and mould), also eliminating the contamination in the air that has not yet passed through the air cleaner.

In 2005, the Chinese State Food and Drug Administration (SFDA) undertook an extensive laboratory testing of the EAS products, as well as its management quality system, and EAS is today one of a select few companies worldwide that have been awarded the SFDA approval. “This certificate is evidence of the quality of our equipment and gives us the right to sell our equipment to all Chinese hospitals. Besides, we also assign independent firms do surveys to measure the air before and after use of our products,� says Hertzberg.

EAS specialises in high efficiency filters and bipolar ionisation technology. Its systems eliminate all kinds of particles – dust and hair, cigarette smoke, bacteria and organic gases – and it also reduces bad odours. “A large office of 4,000 square metres was tested by an institute in China. The test showed a reduction of approximately 80 per cent of the pollutants when EAS air cleaners were being used,� says Hertzberg.

The core of all EAS equipment is a bipolar ionisation process, which cleans the air using the same natural processes

Recently, a test institute in Beijing tested PM2.5 levels in a residential apartment. Before an EAS air cleaner was installed the level was 345 micrograms per cubic-metre, which is very high – 250 micrograms per cubic-metre is normally considered as very unhealthy. Two days later, when the EAS air cleaner had been used for 24 hours, the level was down to 13 micrograms per cubic metre. “It is a very good result, which shows it is possible to combat even the most hazardous particles in the air indoors,� says Hertzberg.

It is possible to combat even the most hazardous particles in the air indoors.�

GĂśran Hertzberg, EAS

Still dirty – but China is getting greener

China’s rapid growth has come at the expense of the country’s air, land and water, much of it already degraded by decades of economic planning that emphasised the development of heavy industry in urban areas.

In a short period of time, China has grown to become the world’s largest greenhouse-gas emitter. More than half of the global increase of greenhouse-gas emissions comes from China.

Ill-planned hydrological engineering projects, which interrupt the natural flow of rivers, and conversion of wetlands for agriculture and unsuitable construction and infrastructure projects in the flood plain have destroyed ecosystems.

Decades of waste poured from factories and cities into China’s rivers have turned many of them into open sewers.

About 40 per cent of the water in the country’s river systems has a quality index of 3 or worse, meaning that it is unfit for human consumption, according to the World Wildlife Fund (WWF).

China has only one-fifth as much water per capita as the US. But while southern China is relatively wet, the north, home to about half of China’s population, is an immense, parched region that now threatens to become the world’s biggest desert.

Respiratory and heart diseases related to air pollution are the leading cause of death in China. Air pollution is the estimated cause of up to 1.75 million premature deaths each year.

next-generation IT systems and biotechnology. The government will gradually invest a total of CNY10,000 billion in these strategically important industries.

The STC has an assignment from the Swedish government to promote clean-tech in Greater China during 2012. Five workshops will be held on waste management in Nanjing and Taipei in May, infrastructure in

18 DRAGONNEWS t /0

China’s polluted environment is largely a result of the country’s rapid development and the consequent increase in energy consumption, which is primarily provided by coal-fired power plants. While some progress has been made in improving energy efficiency and carbon dioxide emissions reduction, almost 70 per cent of the energy production is still dependent on coal.

To construct a conventional coal-fired power plant is the fastest way to increase electricity supply, but China realises it has to reduce its coal dependency. That said, China’s demand for energy is not decreasing, so the government is now encouraging the development of cleaner energy, since the country has great potential in hydroelectric power, solar energy, wind power and bio-energy.

China’s government has set up ambitious renewable energy goals and plans to nearly double the proportion of renewables in its overall energy mix – from 8 per cent in 2006 to 11.4 per cent when the

th current 12 five-year plan ends in 2015, and to 15 per cent in 2020.

History tells us that in all major developed countries heavy pollution has followed as a result of industrial development and it wasn’t until the economies in, for example, Britain, the US and Japan matured and the countries became rich that their leaders started to worry about the environmental damage that had occurred. China’s speed of development has no real parallel in history, and even if there has been a rapid increase of wealth a huge part of the population is still poor.

For China’s government, the main priorities are economic development, poverty alleviation and social stability. All this will require further growth, which is fuelled by energy, and while there is no denying China’s need for energy for development, the question is how growth can be generated in a more energy-efficient manner – and increasingly based on renewable energy sources.

Work Space sells Swedish office furniture brand Kinnarps in China and through out South East Asia. Please contact us to arrange an introduction meeting at your office or to schedule a visit to our showroom in Beijing.

PHOTO: iStockphoto

China’s rapid development has caused huge environmental problems, but the government is now encouraging the development of cleaner energy sources.

Still, almost 70 per cent of China’s energy production is dependent on coal.

Beijing and Chengdu in September, and energy-efficient buildings in Shanghai in October.

The Swedish Chamber of Commerce in Hong Kong is also arranging a Green Business Seminar in Hong Kong in collaboration with several other partners, including the STC (see page 42).

China recognises that its future is

bound up in seriously grappling with sustainability issues: the country accounted for half the entire world’s construction activities in 2010. Over the next 30 years, China’s massive planned urbanisation project will add hundreds of millions more city dwellers, so it must continually innovate low-carbon and resourceefficient urban planning and development. b

For more information visit our websites: www.work-space.cn and www.kinnarps.com Room 1501, Tower 1, Xiaoyun Center, No. 15 Xiaguangli, Chaoyang District, Beijing Tel: +86 10 8446 3162 Fax: +86 10 8446 3163

WORK SPACE INTERIOR SOLUTIONS

Helping companies to be more secure Six years ago, former policeman Lars-Ă…ke Severin quit his job in Sweden, went to China and started the private security consultancy PSU. Today, the company has 15 employees and two offices.

Lars-Ă…ke Severin (left) got his military education in northern Sweden.

TEXT: Jan HĂśkerberg, Bamboo, jan.hokerberg@bambooinasia.com

C

hina is developing very fast, he was responsible for the security of the but doing business in China Crown Princess Viktoria from when she was is still not like doing busi13 to 18 years old. ness back home. The private “It was a fascinating job that had a security consultancy PSU China has over big impact on me. Both me and my team the past nine months worked with at least regarded it as a great responsibility to have three cases where local suppliers have such an important support function for such threatened the foreign-owned company’s a young person,â€? says Severin. top management. “Most times they demand money, but In 1995, he left the security police to then you have to resist. If you pay directly return to the public side of the job as a detecto get out of the situation, then you just tive in MalmĂś, where among other things he show other suppliers that they can do exbattled organised crime. He stayed on for five actly the same thing. You should never pay years, but in 2000 he left his 16-years-long someone who threatens you,â€? says Lars-Ă…ke police and military career.

Severin, chief executive officer (CEO) and “I was asking myself whether, when I founder of PSU. was older, I would regret that I had not done “If, for example, a supplier goes to his anything else with my life. I had developed a customer’s office, model for threat-level forces himself in and analysis, but there was threatens the manageno interest to develop ment, then one probthat among the police lem is that the local authorities.â€? police normally do not So Severin started The age of Crown Princess Viktoria when interfere because they his own company Lars-Ă…ke Severin and his team were rethink it is a businesscalled Loke Analys. sponsible for her personal security. related conflict. That After five years, he acis where we can come cepted an investor but in and help,â€? he says. the investor had other views on what models they should use and Severin sold his share of the company to him in 2005.

Severin was born in 1962 in the southern Swedish city of MalmĂś, where he also grew “At that time, I had been to China on cliup. When he was 18, he joined the Swedish ent assignments and I knew that it should be army in UmeĂĽ in northern Sweden for his possible to get a private security consultancy military education and continued to work licence in China,â€? he says. there as an intelligence officer.

Four years as a military man qualified In 2006, he went to China and founded him to join the police forces in 1984, and for PSU (China) Consulting Co, Ltd and later seven years he served both as a uniformed on, in Sweden, Personsäkerhetsutveckling police and a mounted policeman in MalmÜ.

AB. The acronym PSU stands for personal In 1991, he moved to the Swedish Security security development in Swedish. It was the Police (“Säpoâ€? in Swedish) and its departfirst foreign company of its kind in China, ment for personal protection. For five years and Severin established an office in Beijing,

where he had most of his network. “When I came to China, there was no one who could offer Scandinavian companies this type of service. I was lucky to get a couple of big assignments at the beginning, which gave us a kick-start and helped us to grow.�

Today, PSU China employs 15 people

Westerners tend to trust everyone; we are too simple-minded.�

13 to 18

20 DRAGONNEWS t /0

You should never pay someone who threatens you.�

in two offices – Beijing and Shanghai – and plans to grow to 20 by year-end. Three employees are Swedish, and the rest are Chinese.

All staff members have a background in the security business.

Severin, who has two daughters, 24 and 22 years old, who are both studying at Lund University in Sweden, plans to stay long term in China, which he also recommends his customers do. “To succeed in China, you have to have a long-term perspective. You cannot come here as an expat and stay two years and then leave and let another person take over. If you want to succeed, you should stay for at least five or six years.�

PSU China supports its clients in three business areas: preventive, investigative and protective security. Carrying out investiga-

tions and on-site security support are the main businesses, but the preventive area is also growing. “A typical assignment is that a customer asks us to investigate a company in a due diligence process. We have to look behind the official information to find out who is the real owner, whether there are connections to a local government or whether there are ownership links to other members of the official owner’s family,� says Severin. “In the US and other developed countries you can often say ‘what you see is what you get’. In China, however, it is often more like ‘what you see is not what you get’�, he adds.

Risk management in China compared to Sweden is very different, according to Severin. In the West, a contract is seen as a legal binding document. In China, it is

more regarded as a road map, something that can guide you but that you really don’t have to follow. “A Chinese person trusts family and closest friends, but not many others. Westerners tend to trust everyone; we are too simple-minded.�

Most Chinese employees in foreignowned companies are dedicated, hard-working and loyal. But in a basket of fresh fruit there are often some rotten apples.

There are classic stories about foreignowned companies being subject to fraud, with the local production manager bringing the tools to a nearby factory, owned by him or his family, to manufacture similar products in the evenings. “These things still happen, even if it was more common 10 years ago,� says Severin.

He says with a smile that foreign managers should learn from the Silk Market in Beijing to strengthen their knowledge about China and to avoid allowing themselves to be fooled: “Spend a month there and you will really learn how to build relations, how to negotiate and how to make the final purchase ...� b DRAGONNEWS t /0 21

Dedicated follower of fashion

Mary Huynh in brief

Mary Huynh started to market her collection of leather bags two years ago in Shanghai.

Now stores are lining up to sell her designs.

Name: Mary Huynh Age: 29 Company: Designed by MaryH, www.designedbymaryh.com Location: Shanghai Best about Shanghai: The energy of the city Worst about Shanghai: Dust and pollution Secret favourite spot: Huashan Park Best gift to give friends back home: Chinese tea, art and paintings

TEXT: Torun Ă–hman, Torun.ohman@mpschina.cn PHOTO: Designed by MaryH

M

ary Huynh is of Chinese and Vietnamese origins, but was born and brought up in Sweden. She has also lived in London and Paris, and since 2007 she has been based in Shanghai.

Huynh’s first collection of leather bags came out about two years ago. Today her bags are carried by women all around the world, from Scandinavia to South America and even South Africa. Many are sold through her website, but also at three GĂśte GĂśta Scandinavian Designers shops in Shanghai. She has been interviewed by publications such as That’s Shanghai, Shanghai Talk, Time Out Shanghai, and was featured as the centrefold of City Weekend as the March issue’s “fashionistaâ€?.

Today, stores, magazines, online shops and buyers are lining up to sell her designs.

But with a clear vision of her brand, which is called Designed by MaryH, and with an 22 DRAGONNEWS t /0

eye to integrity, she is much more important careful about selecting that it’s the right store her partners. rather than several dif“I always feel so ferent stores.� surprised and flattered The number of bags in which each design when stores or agents The concept of is produced. have found me and Designed by MaryH want to sell my bags. is to create leather I’m just doing what I really love! The bags are bags that can be used in three ways: as clutch, handmade and I only make about 10 to 50 shoulder and cross-body bags. She says that of each design. It is an exclusive brand and the design is Nordic – clean lines, minimalist I don’t aim for mass production. I want to and clever. She adds that her choices of bright have control over my stock. For me, it is so colours also make the designs a fusion of her

10 to 50

It is an exclusive brand and I don’t aim for mass production.�

Swedish side, her Chinese heritage and living around the world. “Home in Sweden is Helsingborg. But before I came to Shanghai I lived and studied first in London and then Paris. There I also worked for Louis Vuitton and Longchamp in sales and marketing. I have always been very interested in design and that experience gave me an insight into the world of design, which is very useful now.�

So far, Huynh’s most unexpected expression of interest has come from an agent in South Africa. “She found and contacted me through my website. We met and it was a good match, so she brought a batch of bags to South Africa.

They were much appreciated and the colourful style really works there. Now there is another batch on its way and she will show my bags in an upcoming exhibition. I’m really interested to hear more feedback!�

I always feel so surprised and flattered when stores or agents want to sell my bags.�

On the question of what Huynh thinks she will be doing in 10 years, she smiles and says: “I have a dream of creating ‘The Yellow Mansion’. My last name in Chinese is Huang, which means yellow. I want a house that I can paint yellow and fill it with things that make a special experience. You will be able to see and buy my designs, but it will also be filled with other things like a workshop, office and a cafĂŠ where you can have a MaryH cupcake. I will have my own stores around the world. And

I like warm weather, so I might have moved somewhere warmer, Vietnam perhaps.�

At the moment, Huynh is designing her first unisex collection and she has been approached by a famous magazine that wants to sell her bags in their online shop. She has still not decided whether it is the right forum for her, as she also has several other stores lined up.

Keep your eyes open. There is a good chance that you will be seeing a lot more of Designed by MaryH. b DRAGONNEWS t /0 23

The jazz singer

Christina Gustafsson together with Jack Greminger on drums and Rickard Malmsten on bass during a recent concert in Hong Kong.

In New York, I started to compose, since the music school demanded one new song per week ‌�

Within a few years, she was performing with many successful Swedish jazz stars, like Magnus Lindgren, Ronnie Gardiner, Bernt Rosengren, Karl-Martin Almquist, Jojje Wadenius and Rune Gustafsson. “However, the jazz scene in Sweden is rather limited and I got a kind of creativity crisis. Therefore, in 1994, I decided to move to New York to study at a famous music school, the Mannes College of Music. It was two very inspiring years and I got my creativity back! In New York, I also started to compose, since the music school demanded one new song per week ‌â€?

Back in Stockholm, she enrolled in the voice teacher programme at the Royal College of Music and formed her own quintet.

Gustafsson has established herself as a singer and songwriter and has released two albums, Moments Free in 2007 and My Move in 2009. The majority of the songs on the albums are her own. “But I have found it more and more difficult sometimes to write the lyrics and have therefore started to work with a couple of lyricists,� she says.

She also likes to sing jazz standards, such as “Stormy Weather�, for which she does her own arrangements and has also done her own versions of John Sebastian’s “Daydream� and James Taylor’s “Your Smiling Face�.

Gustafsson manages to make ends meet by touring Sweden’s jazz clubs and performing at corporate events. She is also a part-time voice teacher at the SÜdra Latin upper secondary school in Stockholm.

Occasionally, she also goes abroad to perform and has been in Manila with Sveriges Jazzband, a Swedish band that plays more mainstream, happy swing jazz, and in Kuala Lumpur. She will perform in Bangkok in April this year. The visit to Hong Kong was her first. “Hong Kong reminds me of New York. When people go to jazz clubs here they come to listen; the music is not background,� she says.

In Sweden, she is working on her third album, which will be released later this year, and spends time with her daughter. “She is five years old and has already started to sing ‌â€? b

From Sweden with jazz The acclaimed Swedish jazz singer and songwriter Christina Gustafsson recently visited Hong Kong for six concerts arranged by the Hong Kongbased bass guitarist Rickard Malmsten.

TEXT: Jan HĂśkerberg, jan.hokerberg@bambooinasia.com

24 DRAGONNEWS t /0

T

he small village of Värmskog Gustafsson was born in 1970 and grew up on a small farm. Her four years elder sister in the Swedish province of Rigmor got a guitar at an early age and they Värmland is famous for being both grew up playing and singing. In school, the birthplace of Lars Magnus she was inspired by a music teacher who introEricsson, the founder of the telecommunicaduced the students to jazz music. The teacher tions company Ericsson, in 1846. More lately, helped them to form a band in the village has become known for which both Christina and Rigmor being the place where two of Swesang. The band participated in den’s most acclaimed jazz vocalists, contests not only in Sweden, but the sisters Rigmor and Christina also in Germany and France.

Gustafsson, were born and grew up. “I did this for five years from In February, Christina GustafsThe age at which when I was 13. It was a very valuson visited Hong Kong for six Christina Gusable experience for me since I am a performances together with her two tafsson started bit shy,â€? says Gustafsson. regular guitarists Erik SĂśderlind and to sing in a band.

After studies in classical guitar Max Schultz. They were joined by and song at an upper secondlocal musicians Rickard Malmsten ary music school in the provincial capital of on bass and Jack Greminger on drums. The Karlstad, she moved in 1989 to Stockholm visit was organised by Malmsten, who lives to perform and continue her studies while in Hong Kong, where he is a musician and, financing them by working at hot dog stands among other things, is arranging concerts (see and cleaning hotel rooms. separate article).

13

When people go to jazz clubs here [in Hong Kong], they come to listen; the music is not background.�

Sweden’s jazz ambassador in Hong Kong Full-time musician and composer Rickard Malmsten, 38, has been living abroad most of his grown-up life. Since 2002, he and his family have been based in Hong Kong, where he regularly performs at all the city’s major jazz venues. “I left the city of Landskrona in southern Sweden at the age of 17 to study music in Los Angeles. For 20 years I have been living in five continents – Europe, North America, Latin America, Australia and Asia,� he says.

Rickard started to play drums at the age of seven and switched to bass guitar at 13.

Over the years he has played with a remarkable number of big artists – Larry Coryell, Roy Hargrove, Bob Moses, to name just a few.

In Hong Kong, Malmsten is also arrang-

ing concerts with Swedish musicians. These include trombonist and singer Nils Landgren, Rigmor and Christina Gustafsson, pianist Maria Kvist and guitarist Ulf Wakenius. “I get many requests from Swedish musicians to come here, so it is almost a half-time job to bring them over,� he says.

Malmsten has many irons in the fire. He works for a record company called Naxos and has also been training Hong Kong’s boxing team. One of his brothers used to box for the Swedish national team and Malmsten also tried out the sport. “But if you want to be a boxer, you have to love to beat people and take being beaten. I wasn’t fond of either, so that is why I prefer training boxers rather than boxing myself.�

DRAGONNEWS t /0 25

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Hong Kong Changed attitudes among tax authorities

Michael Enright (left) with Staffan LĂśfgren of the Swedish Chamber of Commerce, one of the organisers of the lunch event.

Foreign-owned companies should view China as a future global game-changer, said Michael Enright.

Winning with China Q â&#x20AC;&#x153;In which industries will China win?â&#x20AC;? was the title of the joint chamber luncheon at the Foreign Correspondents Club (FCC) in Hong Kong on 1 March. The speaker was Michael Enright, a professor at the University of Hong Kong and director of the strategic consulting firm Enright Scott & Associates.

Enright pointed out that in some industries, such as PCs, home appliances and consumer electronics, it looks as if China has already won. For example, two-thirds of all notebooks in the world are manufactured in Suzhou, and for some appliances and other electronic products almost 100 per cent are produced in China.

However, a closer view shows that apart from manufacturing, most activities â&#x20AC;&#x201C; such as research and development, industrial

design, supply chain management, marketing and branding â&#x20AC;&#x201C; are still controlled by foreigninvested enterprises in China. In other words, China may be the production location, but nonChinese companies are still the leaders.

However, Enright noted that Chinese companies are becoming a stronger competitive force by leveraging cost advantages, having a large home market, favourable government policies and political connections, and purchasing brands or technologies. This has already happened in railway equipment and is likely to happen in commercial aircraft, while in other industries, such as luxury consumer goods, there is little risk of foreign enterprises being beaten by Chinese competitors in the near to medium term.

Enright stated that foreign-owned companies need to view China from the inside-out rather than the outside-in. They should assess

New trends in sales Q On 15 February, Mercuri International, which is the worldâ&#x20AC;&#x2122;s largest sales performance and training consultancy, held a breakfast seminar at Mannheimer Swartling in Hong Kong. Mercuri was represented by CEO Ola StrĂśmberg, marketing director Elisabeth Kark Ringmar and the Asia managing director Frank Herbertz.

StrĂśmberg presented trends that have fundamentally changed the process of sales and the role of the sales representative. In the latter part of 20th century, the sales representativeâ&#x20AC;&#x2122;s role went from being a provider of an ever increasing demand of goods via â&#x20AC;&#x153;the listenerâ&#x20AC;? to â&#x20AC;&#x153;the customer-is-kingâ&#x20AC;? approach. Today, the purchasing path has changed totally. When customers have access to all information they 28 DRAGONNEWS t /0

Ola StrĂśmberg (left) and Frank Herbertz talked about fundamental changes in the sales process.

possibly need to find and choose a product, service or supplier, the sales representative needs to take on a different role.

There is no single sales model that is valid

Chinaâ&#x20AC;&#x2122;s importance as a producer and market, the capabilities of Chinese firms, and the Chinese governmentâ&#x20AC;&#x2122;s commitment to supporting Chinese enterprises in their industries. They should view China not as merely one market but as a future global game-changer.

According to Enright, â&#x20AC;&#x153;Foreign companies can still win in China and globally if they understand the potential advantages that China has in its industries and exploit them before Chinese competitors leverage them into international markets.â&#x20AC;?

He also recommended that foreignowned companies take advantage of the opportunities to become suppliers, advisers, partners, customers, and so on, for growing Chinese enterprises. â&#x20AC;&#x153;Even if Chinese companies win, your company can also be winning,â&#x20AC;? said Enright.

Q Hong Kong tax treaties and the consequences for Swedish and Norwegian companies was the topic for a breakfast seminar hosted by the Swedish chamber on 28 February, with Nigel Hobler, partner at KPMG and Gunnar Mansfeld, CEO of Troy Solutions, as guest speakers.

There is a global trend among tax authorities to become more integrated and sophisticated in their collection of tax income. This trend started in the aftermath of the events of 9/11.

A new vigour to go after funding for terror organisations also gave way to a new view on â&#x20AC;&#x153;dodgyâ&#x20AC;? tax jurisdictions and aggressive tax planning.

The OECDâ&#x20AC;&#x2122;s report on â&#x20AC;&#x153;harmful tax practicesâ&#x20AC;? and the global agreements that followed is a good example of the changed attitude.

Many former â&#x20AC;&#x153;tax havensâ&#x20AC;? and bank secrecy jurisdictions (Liechtenstein, Switzerland, Luxembourg, etc) have changed their policies and are now open for a global cooperation also on tax related matters. This is evident from the number of Double Taxation Agreements (DTAs) and Exchange of Information (EOI) agreements that these countries are now actively trying to conclude. The Hong Kong government has also adopted this strategy to ensure a good standing with all OECD countries.

For Swedes and Swedish companies in Hong Kong that means the tax environment is getting more complex. Old â&#x20AC;&#x153;truthsâ&#x20AC;? might not necessarily be true any longer and the playing field will be more level with no more â&#x20AC;&#x153;free ridersâ&#x20AC;?.

We also need to learn how to adopt and thrive in a business world that is increasingly more inter-dependent, was the conclusion from the speakers.

Nigel Hobler of KPMG talked about a more complex tax environment.

any longer. Sales representatives need to be flexible and adapt to the client and the situation, just as in situational leadership. StrĂśmberg showed what these different situations and roles are and what they mean for sales.

The fact is that there has been an explosion in value versus price, and the sales representative needs to understand a lot more about the full picture and what value a product or service can bring to the customer. When infidelity is the norm, companies need to find new ways to build loyalty, be it through technology or financially, with contracts or by well managed relationships. And as the private and official spheres are merging, and customers enjoy much more advanced communications and change their buying patterns, the sales process of businesses need to get up to speed and adapt.

DRAGONNEWS t /0 29

Beijing & Shanghai

A glimpse of the year ahead

Emma Persson and Jimmy Sandell talks about consumer trends in 2012.

Q On 17 January, the Swedish business intelligence firm United Minds visited the chamber in Beijing to give its members some insight into future consumer trends.

The year 2012 is the last of the Mayan calendar, predicted to bring the end of the world, said the speakers, senior consultant Emma Persson and senior analyst Jimmy Sandell.

But rather than preaching doomsday, they said there were great changes and opportunities in the year ahead. A truly urbanised global world has emerged and technological developments are more evident than ever before, with more people living connected, healthy and informed lives.

These driving forces, they said, are rendered manifest in the following trends to watch out for: New tribalism: The way our social circles organise our lives no matter where we are in the world, thanks to a world of social networks and selective software that gives us all a self-catered information experience.

Playful society: A world where work and play merge and the challenges, feedback, and the joy of games are applied to creation and productivity. â&#x20AC;&#x153;Shareonomicsâ&#x20AC;?: Consumption geared towards access over ownership, part of the shift towards new post-materialist values. â&#x20AC;&#x153;Scienceologyâ&#x20AC;?: A rekindled faith in science in the wake of romanticising nature. We welcome technology into more spheres of our lives and expect products and services to be scientifically endorsed.

Starting out from macro and micro trends, United Minds offers theory and methods for trend analysis that remains relevant to business interests and grounded in consumer insights.

Q The need for Swedish companies to obtain local currency is growing, yet lending and credit restrictions remain a problem for lenders and borrowers.

At a morning seminar in Shanghai on 15 February, lawyers AndrĂŠ Andersson and Mikael Lindgren from Mannheimer Swartling shared their experience and offered advice when it comes to finding a financial partner. There are many pitfalls to be aware of when financing in China.

For example, Chinese loan agreements often include lender friendly and mandatory provisions such as needing the lenderâ&#x20AC;&#x2122;s consent before mergers take place, or before obtaining financing from other lenders. Other aspects need to be considered, such as the number of lenders and what effect that has on your relationship.

After the seminar, Andersson and Lindgren invited chamber members to have a discussion.

Many Swedish companies dealing with financing issues were there to pose questions and get advice on best practices. The expertise in the room was further increased by the presence of the chamberâ&#x20AC;&#x2122;s banking members, who actively contributed to a very interesting discussion.

30 DRAGONNEWS t /0

PHOTO: Mannheimer Swartling

Many pitfalls when financing in China

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HONG KONG ORDINARY MEMBERS >>>

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Ashurst Hong Kong 16/F, ICBC Tower, Citibank Plaza 3 Garden Road, Central, Hong Kong Tel: +852 2846 8989 Email: robert.ogilvywatson@ashurst. com, daniel.ohvall@ashurst.com Web: www.ashurst.com

Activities Ashurst is a leading international law firm with 24 offices spanning the Asia-Pacific, Europe, North America and the Middle East. In Asia, we have offices in Hong Kong, Shanghai, Tokyo, Singapore, and Port Moresby as well as an associate office in Jakarta. We assist local and international clients in M&A, equity capital markets, energy and natural resources, international finance, dispute resolution, and corporate and commercial.

Ashurst Hong Kong frequently acts on multi-jurisdictional M&A, private equity and international finance transactions.

We also advise Asian clients on transactions in Australia, Europe and North America, and work with our Stockholm office on investments into Sweden.

Chamber representatives Robert Ogilvy Watson, Partner Daniel Ă&#x2013;hvall, Senior Associate

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Elekta Limited 16/F, The Hennessy, 256 Hennessy Road, Wan Chai, Hong Kong Tel: +852 2892 4353 Email: info.hongkong@elekta.com Web: www.elekta.hk

Activities Elekta is a human-care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-ofthe-art tools and treatment planning systems for radiation therapy, radio-surgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,300 employees globally. The corporate headquarters is located in Stockholm, Sweden.

Chamber representatives Peter Thelin, Vice President QA & RA, Asia-Pacific Region Gabriella Lembke, E-Marketing Specialist, Asia-Pacific Region

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Eastrunner International Ltd Unit 1010, Miramar Tower 132 Nathan Road, Tsim Sha Tsui, Kowloon, Hong Kong Tel: +852 2819 27170 Email: josef.widstrom@eastrunner.com Web: www.eastrunner.com

M2 Retail Solutions Asia Ltd Unit 5, 7/F, Emperor Group Centre 288 Hennessy Road, Wan Chai Hong Kong Tel: +852 2111 7083 Email: info@m2retailsolutions.com.hk Web: www.m2retailsolutions.com

Activities Eastrunner International Ltd offers professional business and engineering consulting services to companies entering China, such as China market entry, procurement services, establishing a manufacturing base in China, relocating your production facility to China, equity partners for your business and sourcing solutions. We are well versed with the business system, business culture and practice in China and as well as in Europe. We provide low-cost solutions to what most companies consider costly problems.

Activities M2 Retail Solutions deliver improved profitability per square meter. We do this by increasing sales for our customers through enabling them to differentiate from competitors, optimize flows and entertain consumers; cut fixed costs through outsourcing; and through cost-efficient sourcing and logistics services Over the past 10 years, M2 Retail Solutions has established more than 2,000 stores, over 1,000 shop in shops and thousands of shop points (corners) in more than 70 countries for a number of high-profile brands. M2 started its operation in Asia in 2004 in order to come closer to the Chinese suppliers.

Chamber representative Josef WidstrĂśm, CEO

Chamber representative Mikael Svenungsson, CEO

32 DRAGONNEWS t /0

* & ! ! ! ! ' " ! ' ! & % ' ! * !' ,"( '" ' & ' & % ! &' %"* ! % ' & % &( ' "% ! "% ! ! ) ! " # ! & ! ! ! &" (' "!& &( & & ! !' .! ! ! ! " ! "% ! (%% ! & '% .! ! ! '% &(%, &" (' "!& ! ! # ,"( - % ! ! "(% , %& " +# % ! " (& ! && ! ! ,"( ) ' "##"%'(! ', # & ) & ' (& ! ! * % * ) ! " ' & !

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The secret of success

HONG KONG OVERSEAS MEMBERS >>>

Bright Potential Coaching AB Hagabergsvägen 20 SE-139 35 VärmdÜ, Sweden Tel: +46 8 10 38 83 Email: hullert@brightpotential.com Web: www.brightpotential.com Activities We help individuals and corporations to unleash their hidden potential. We identify strengths within them that have not yet seen the light of day. We guide them through a change for the better and towards a potentially brighter future.

We provide world class expertise in international executive management and leadership coaching. We coach individuals or groups and we create strengths when building and developing organizations.

We know it is all about focusing on your already existing strengths, instead of spending time searching for weaknesses that need to be improved. We proceed according to well-developed, and time-tested, methods and we know that finding unleashed potentials will lead to profitable effects at your company. We have more than 20 yearsâ&#x20AC;&#x2122; expertise in supervising, staff management and management coaching.

Chamber representative Gunilla HĂźllert, Owner

HONG KONG INDIVIDUAL MEMBERS >>> Johan Nylander Tel: +852 9303 5166 Email: j.nylander@live.se

Mind Your Brand AB Franzengatan 55 SE-112 15 Stockholm, Sweden Tel: +46 8 608 17 80 Email: calle@mindyourbrand.com Web: www.mindyourbrand.se Activities Mind Your Brand is a professional training company in the Swedish management style. Our specialty is Scandinavian methods of marketing and brand strategy, plus training and professional development for brand managers and marketing executives. Our services consist mainly of training and professional guidance in these topics: using the secrets behind successful Swedish brands; adopting Swedish brand management approaches for international brands; succeeding with Chinese brands in Scandinavian markets; setting up a regional marketing team and brand management unit in Sweden; brand management training courses; and ecobranding, sustainability and CSR initiatives.

Mind Your Brand was founded in 1999 by Carl Peyron.

Since then, the company has trained and certified over 600 brand and marketing professionals in Scandinavia and abroad. Mind Your Brand has experience in working with clients such as Ericsson, Volvo, Nordea, Diaverum, Vattenfall, The Swedish Institute and Stockholm University.

Shop No.65, 1/F, Admiralty Centre, 18 Harcourt Road, Hong Kong Tel: 852-2877-2227 Fax: 852-2877-2120 Mobile: 9051-9499 E-mail: johnnysphoto@live.hk Opening Hour: Mon â&#x20AC;&#x201C; Sat 9:00am â&#x20AC;&#x201C; 7:00pm Sunday 2:00pm â&#x20AC;&#x201C; 6:00pm

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Vinge has Swedish lawyers and Chinese legal consultants based in Shanghai, Hong Kong and in Vingeâ&#x20AC;&#x2122;s offices in Sweden.

For more than 20 years Vinge has assisted clients in their business activities in China and has advised foreign clients in all matters regarding trade and investments between Sweden and China.

Chamber representative Carl Peyron, CEO

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School of Business and IT, University of BorĂĽs AllĂŠgatan 1, SE-501 90 BorĂĽs, Sweden Tel: +46 33 435 4000 Fax: +46 33 435 4007 Web: www.hb.se/hit

Activities Starting a new double degree programme in International Marketing and IT. Chamber representatives Grace Zhe Gu E-mail: grace_zhe.gu@hb.se Mobile: +46 73 230 5965 Rolf Appelkvist E-mail: rolf.appelkvist@hb.se Mobile: +46 70 836 4115

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STOCKHOLM

GOTHENBURG

MALMO

HELSINGBORG

BRUSSELS

HONG KONG

SHANGHAI

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Asia Gateway Fasteners Co, Ltd, Shanghai Rep Office Room 1308, Yu An Building No 738 Dongfang Road Pudong New District Shanghai 200122 Tel: +86 21 6876 0732 Fax: +86 21 5830 6015 Web: www.agw-fasteners.com

1

Activities We are sourcing and exporting construction material such as tools, fasteners, tarpaulin, fibreglass and more, used both by professional and DIY markets. We also supply products to the mining and infrastructure industry in North Europe.

Chamber representatives Rickard Wentzel, Director E-mail: rw@agwfasteners.com Mobile: +86 158 2177 7564 Fredrik Karnsby, Director E-mail: fk@agwfasteners.com Mobile: +86 158 2177 7562

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Activities Perstorp Shanghai is the sales office for Perstorp chemical products in China. We provide a trading platform with stock sales and technical support through our application laboratory in Shanghai. Our products are essential building blocks or functional chemicals designed to provide certain planned and desired characteristics for customers in the coating, plastic processing, automotive industries, construction and engineering, and the agricultural sector, among others.

Chamber representatives Johnny Loo, General Manager E-mail: johnny.loo@perstorp.com Mobile: +86 136 2197 5422 Helen Lv, Financial Manager E-mail: helen.lv@perstorp.com Mobile: +86 137 8898 8810

EMBA Machinery (Shanghai) Co, Ltd Building 22, No 180, Jinxi Road Songjiang District, Shanghai 201614 Tel: +86 21 6775 3498 Fax: +88 21 6775 3499 Web: www.emba.com 1

Activities EMBA Machinery is a leading supplier to the corrugated paperboard industry worldwide. The EMBA machines are renowned for extremely high productivity and box quality thanks to the very short set-up times, high-speed production and reliable function. EMBA Machinery (Shanghai) Co, Ltd is active in parts sourcing, machinery sales and customer service to the markets of China and Far East Asia.

Chamber representatives Weine Widar, Vice General Manager E-mail: weine.widar@emba.com Mobile: +86 182 1700 0073 Claire Qu, Financial Controller E-mail: claire.qu@emba.com Mobile: +86 136 2182 2148

36 DRAGONNEWS t /0

Perstorp (Shanghai) Chemical Trading Co, Ltd Room 1901/1910, Shanghai Times Square, No 93, Huaihai Road Shanghai 200021 Tel: +86 21 6391 0531 Fax: +86 21 6391 0535 Web: www.perstorp.com

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Kinaresor Draken AB PO Box 19067 Tulegatan 39, Stockholm SE-10432 Sweden Tel: +46 8 5459 5200 Fax: +46 8 5459 5201 Web: www.kinaresor.se

Activities A specialised tour-operating business for the Swedish market to China.

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Chamber representatives Mats Andersson, CEO E-mail: mats.andersson@kinaresor.se Mobile: +46 73 707 0261 Per Camenius Chairman of the Board, Business Development E-mail: per.camenius@kinaresor.se Mobile: +46 708 934 855

#ONTACTĂ´.ORDEAĂ´INĂ´3INGAPOREĂ´ONĂ´ Ă´ Ă´ Ă´ORĂ´ E MAILĂ´ERIC PEDERSEN NORDEA COM

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Teleopti 22A, Ginza Mall Tower C No 48, Dongzhimenwai Avenue Dongcheng District Beijing 100027 Tel: +86 10 5139 6200 Fax: +86 10-5139 6400 Web: www.teleopti.com

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Activities Teleopti is a leading provider of strategic solutions for enterprise workforce management and telecom expense management. Hundreds of enterprises around the world rely on high-end and flexible solutions from Teleopti to attain optimal operational efficiency and provide the highest levels of service.

Teleopti, established in Stockholm, Sweden, in 1992, operates through a large number of local offices worldwide and a comprehensive network of partners.

Chamber representatives Olle During, CEO Mobile: +46 709 218 110 E-mail: olle.during@teleopti.com Pia Malmqvist Norin, Head of Support and Test, APAC Mobile: +86 186 0004 6026 E-mail: Pia.Norin@teleopti.com

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TruckCam Trading Shanghai Co, Ltd Room 502, Huizhan International Business Center, Building 6 No 28, 9356 Nong, Hunan Road, Pudong New District, Shanghai 201300 Tel: +86 21 5818 5331 Fax: +86 21 5818 5330 Web: www.truckcam.com

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Unimer (Suzhou) Trading Co, Ltd Block C5, Suhong Industrial Square #81, Suhong Road, Suzhou Industrial Park, Suzhou Jiangsu Province 215021 Fax: +86 512 6280 6455 Web: www.unimer.cn

Activities We offer OEM industry-customised, quality-assured products in rubber and plastic, manufactured by our selected partners. Long-term customer relations combined with global sourcing and experienced project management make us your best choice. Our engineering expertise together with our lab and quality control secure the function of your products.

Chamber representatives Ronny Larsson, General Manager E-mail: ronny@unimer.se Mobile: +86 152 5009 5190 Mikael Johansson, Project Manager E-mail: mikael@unimer.se Mobile: +86 138 1484 8725

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Activities LKAB Trading (Shanghai) Co, Ltd purchases for the LKAB Group selected, long-term sustainable and quality assured goods from Asia with the right functionality, right lead time and at a lower total cost than competing sourcing markets.

We assist industrial companies with a complete range of products and services for efficient maintenance, repair and operations (MRO) of their production facilities. www.tools.se

Chamber representative Anders Lundgren, CEO E-mail: anders.lundgren@lkab.com Mobile: +86 186 1675 8161

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CHINA ASSOCIATE MEMBERS >>> Amanda Bratt Room 1803, Unit 2, Building 5, Tian Shi Ming Yuan Yang Zhuang Bei Li, Tongzhou District Beijing 101100 E-mail: amandabratt@yahoo.cn Mobile: +86 151 0165 3528

Wackes AB Room 701, No 25 Building Lane 667, Daning Road Shanghai 200072 Tel: +86 21 3639 1981 +86 21 6074 2633 Web: www.wackes.se

Activities TruckCam is one of the worldâ&#x20AC;&#x2122;s biggest producers of wheel alignment systems for heavy commercial vehicles. TruckCamâ&#x20AC;&#x2122;s Shanghai office is responsible for the Asia-Pacific market. We provide installation, training and support to manufacturers and workshops in China and other parts of Asia-Pacific.

Activities Wackes is one of the leading companies in Scandinavia for promotional items. We established a buying office in Shanghai in 2006. Driven by our high standards, we are now establishing a sales office in Shanghai to meet our highly valued customersâ&#x20AC;&#x2122; expectations of good service and presence. Our goal is to grow on the Asian market together with our present and new customers.

Chamber representative Thomas Vernersson, General Manager E-mail: thomas.vernersson@truckcam.com Mobile: +86 186 1697 3581

Chamber representative Thomas Davidsson, CEO E-mail: thomas.davidsson@wackes.se Mobile: +46 708 998 511

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LKAB Trading (Shanghai) Co, Ltd Unit 2007, Yueda 889 Center No 1111, Changshou Lu Shanghai 200042 Tel: +86 21 5212 5103 Fax: +86 21 5212 6029 Web: www.lkab.com

Joakim Sannervik No 126, Tomson Riviera/Lakeside Garden Lane 2255, Luoshan Road, Pudong Shanghai 201204 Tel: +86 21 3877 2071 Mobile: +86 150 2177 9470 E-mail: joakim.sannervik@ge.com

Monica Rossetti House 507, Beijing River Garden Villas No 7, Yuyang Road, Houshayu Shunyi District Beijing 101300 E-mail: garda11@yahoo.de Mobile: +86 186 0005 6307

UNITED FOR INDUST R IAL E F F I C I E NCY

DRAGONNEWS t /0 39

PHOTO: Gerhard JĂśrĂŠn

Childrenâ&#x20AC;&#x2122;s rights

Business and childrenâ&#x20AC;&#x2122;s rights The United Nations Global Compact, UNICEF and Save the Children have launched a global initiative to encourage companies to better support childrenâ&#x20AC;&#x2122;s rights.

TEXT: Britta Ă&#x2013;strĂśm, The Centre for Child Rights and Corporate Social Responsibility (CCR CSR), britta.ostrom@ccrcsr.com

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he business of improving support for childrenâ&#x20AC;&#x2122;s rights in relation to everything a company does has been given a boost thanks to the launch of the Childrenâ&#x20AC;&#x2122;s Rights and Business Principles Initiative (CRBPI).

The principles, written after consultations with thousands of representatives from the corporate sector, recognise the positive power of businesses. They call on all companies, big and small, to evaluate and understand the possibilities of impacting on the well-being of children, in partnership with relevant stakeholders including children themselves.

The global launch in London was held on 12 March and is due to be followed by regional launches, the first step in making the new principles more widely known. The next step will hopefully be to align the principles into the Global Reporting Initiativeâ&#x20AC;&#x2122;s (GRI) reporting system.

Previously, children were only explicitly mentioned the United Nations Global Compact and OECD guidelines in relation to economic activities (see the â&#x20AC;&#x153;Opinionâ&#x20AC;? section in Dragon News No 1-2010).

Historically, companies â&#x20AC;&#x201C; when they were so inclined â&#x20AC;&#x201C; tended to give money to childfocused charities. More recently, we have seen firms thinking more strategically, aiming at sustainable change for children while simultaneously strengthening their brands.

Projects for children are generally carried out in partnership, often with recognised non-governmental organisations (NGOs) and with leverage at all levels of society. When it comes to companies facing challenges with the supply chain, budgets are allocated to reduce risks when they occur.

Some firms now are starting to focus on 40 DRAGONNEWS t /0

anything and everything they do that can or does affect children, thus paying more attention to the core business. For example, in the spirit of the new business principles, groups of international companies working in China have created forums for discussions on children and business.

One working group made up of several different firms is working on practical measures that can support children and young workers in the supply chain and encourage supply-chain factory managers to learn about laws in relation to hiring youngsters.

Management training to become better leaders of a young workforce is also becoming popular, and the training of migrant parents whose children have been left-behind in Chinaâ&#x20AC;&#x2122;s countryside is also an issue being looked at.

In June 2010, realising the importance of a holistic paper on childrenâ&#x20AC;&#x2122;s rights for businesses, the UN Global Compact, UNICEF and Save the Children took the lead, guiding the process of drafting a paper recognised by all involved stakeholders. The draft paper was commented on at regional consultations.

Thousands of companies from all continents were involved. From the Nordic countries, IKEA, H&M, Statens Pensjonsfond Norge (the Government Pension Fund Norway) and the LEGO Group were major players.

The London launch attracted representatives from the business sector, academia, governments and civil society. Sun Ruizhe, vice president of the China National Textile and Apparel Council (CNTAC), was invited to be the key speaker from China. China launches will be organised in Beijing and Shanghai this spring and a joint Nordic launch is due to take place on 24 April in Stockholm, attended by HM Queen Silvia. b

The principles in brief Principle 1: Outlines three core actions â&#x20AC;&#x201C; policy commitment, due diligence measures and remediation â&#x20AC;&#x201C; and encourages all business to go beyond respect to the next step of supporting and promoting childrenâ&#x20AC;&#x2122;s rights.

The workplace Principle 2: Contribute to the elimination of child labour.

Principle 3: Provide appropriate and decent work for youth, mothers, fathers and caregivers.

Principle 4: Ensure that children are protected in all business activities and facilities.

The marketplace Principle 5: Ensure that products and services are safe and seek to positively contribute to childrenâ&#x20AC;&#x2122;s lives.

Principle 6: Use marketing and advertising responsibility to respect and support childrenâ&#x20AC;&#x2122;s rights.

The community and the environment Principle 7: Take measures to alleviate the environmental impact of business operations on children, and respect childrenâ&#x20AC;&#x2122;s rights when acquiring or using land.

Principle 8: Make respect for childrenâ&#x20AC;&#x2122;s rights an explicit principle of security arrangements.

Principle 9: Help protect children affected by emergencies.

Principle 10: Reinforce community and government efforts to fulfil and safeguard childrenâ&#x20AC;&#x2122;s rights; respect the rule of law and follow responsible business practices.

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SWEDISH CHAMBER OF COMMERCE in Hong Kong

Invitation to a Green Business Seminar Several large urban developments focusing on sustainability and green business are being planned in Hong Kong. This is also the focus for a three-day seminar in May.

T

he Swedish Chamber of Commerce in Hong Kong invites Swedish companies within the cleantech, new energy and clean vehicles areas to a Green Business Seminar in Hong Kong 23-25 May, 2012.

The seminar is arranged in collaboration with the Consulate General of Sweden, the Environmental Technology Cooperation - Government Offices of Sweden, the Swedish Trade Council, the Hong Kong Science Park and the Hong Kong Trade Development Council. The importance of Chinaâ&#x20AC;&#x2122;s 12th five-year plan and the opportunities this creates will be highlighted.

Several large urban developments focusing on sustainability and green business are being planned in Hong Kong. One of these developments is the Kai Tak/Kowloon East project. With this project, Hong Kong aims to develop a â&#x20AC;&#x153;greenâ&#x20AC;? business hub at the site of the old airport. During the seminar, a Swedish delegation will visit the old airport area and the participants will also have the opportunity to present their businesses and technologies for relevant stakeholders in Hong Kong.

Who should attend? t 4XFEJTI DPNQBOJFT JOWPMWFE JO UIF DMFBO UFDI new energy and clean vehicles industries with a specific interest in doing business in China/South East Asia. t $&0T CVTJOFTT EFWFMPQFST DPNQBOZ PXOFST BOE others who are instrumental in strategic processes.

Why attend? t (FU BO JOTJHIU JOUP BOE VOEFSTUBOEJOH PG 42 DRAGONNEWS t /0

Chinaâ&#x20AC;&#x2122;s 12th five-year plan and what challenges and opportunities it can create for your business and industry. t /FUXPSLJOH o NFFU QPUFOUJBM JOWFTUPST MPDBM EFWFMPQFST TFSWJDF providers and collaborators. t (FU UP LOPX BCPVU UIF MBSHFTU iHSFFOw VSCBO EFWFMPQNFOU PG BMM UJNF in Hong Kong (Kai Tak/Kowloon East). t 5IF WJTJPO JT UIBU QBSUJDJQBOUT XJMM IBWF PQQPSUVOJUJFT UP QSFTFOU their businesses and technologies to relevant stakeholders and developers.

The three-day programme includes seminars, presentations from prominent leaders within relevant areas, workshops, networking and excursions. Below are some of the speakers: Huang Ming, China Himin Solar Corporation, recipient of the â&#x20AC;&#x153;alternative Nobel Prizeâ&#x20AC;?, the Right Livelihood Award in Stockholm 2011; Mats Denninger, High Representative, International Environmental Technology Cooperation, Government Offices of Sweden; JĂśrgen Halldin, Consul General of Sweden in Hong Kong & Macau; Ulf Ohrling, Resident Partner, Mannheimer Swartling; David Oâ&#x20AC;&#x2122;Rear, Chief Economist, Hong Kong General Chamber of Commerce; and Pansy Yau, Chief Economist, Hong Kong Trade Development Council.

The cost for participating in the threeday seminar is HK$11,495 (price based on a minimum of 15 participants). The price includes entrance to all activities, three nights at the Empire Hotel, breakfast, lunch, dinner, cocktail and local taxes. Excluded in the price are flight tickets to and from Hong Kong.

A special rate applies for those who do not wish to include the hotel stay.

To register, please contact SwedCham at chamber@swedcham.com.hk or +852 2525 0349.

Last day to register to guarantee room availability is 22 April, 2012. b

SwedCham Graduate Internship Grant 2012

Swedish companies bullish on China Q Swedish companies are doing well in China and the immediate business outlook is bright. This is an overall conclusion in the annual Business Confidence Survey, which was conducted in late summer 2011 with 166 member companies of the Swedish Chamber of Commerce in China in collaboration with the Embassy of Sweden and the Swedish Trade Council.

Other conclusions are that industrial companies are the biggest winners, that import and export procedures and nontransparent governance are the biggest obstacles to trade, and that Swedish

New visa rules for China Q The Chinese Visa Application Service Centre, which is responsible for visa applications to China in Stockholm and Gothenburg, has new rules from January 2012 for applying for a Chinese tourist visa.

The big change for Swedish citizens is that an invitation letter is needed, either from a friend or relative living in China or by a Chinese company, for example a travel agency.

If these documents cannot be provided, the applicant needs to show a birth certificate (personbevis), a travel plan, copy of the roundtrip ticket and hotel booking reservations.

More information can be found at the visa service centre´s homepage: http://www.visaforchina.org/STH_EN/ 44 DRAGONNEWS t /0

companies see their biggest advantage in product quality and the biggest disadvantage in local competitors receiving benefits from superior government relations.

The results are in line with other surveys conducted by other chambers of commerce in China.

The report, the 10th since 2000, has been sent to all chamber representatives and can be downloaded at: www.swedishchamber.com.cn If you havenâ&#x20AC;&#x2122;t received it or if you want an extra printed copy, please contact the chamber at: info@swedishchamber.com.cn.

Q Building on the success of the Anniversary Internship Grant, the Swedish Chamber of Commerce in Hong Kong will award a new HK$100,000 internship grant in 2012 to a recently graduated university student.

The winner will be invited to complete a 10-month internship at the chamber, starting September 1, 2012. The cash grant will be distributed in monthly instalments to support the recipientâ&#x20AC;&#x2122;s living expenses. In addition, the chamber will reimburse one roundtrip airfare from Sweden to Hong Kong.

The SwedCham Graduate Internship Grant 2012 highlights the long-term presence, commitment and spearhead position of Swedish businesses in Hong Kong and South China. It also highlights the instrumental part played by the chamber in advancing Swedish interests in the region during the past quarter of a century.

Recent university graduates with a demonstrated interest in Hong Kong and Greater China are welcome to apply. Detailed application instructions can be found on the chamberâ&#x20AC;&#x2122;s website, www.swedcham.com.hk.

DragonNews_outlined.indd 1

Dan Fjeldheim Ek is the current holder of the internship grant at SwedCham Hong Kong.

To apply for a China visa from Sweden has become more complicated.

To see how we can help you please visit our website www.pcs.com.hk or write to John Barclay at johnbarclay@primasia.com

2011-02-24 15:23:37

SWEDISH CHAMBER OF COMMERCE in China

In Memoriam: O Mats Johansson 1960-2011

ur dear friend and colleague, Mats Johansson, passed away on New Yearâ&#x20AC;&#x2122;s Eve after a period of illness. Mats came to China in 2004 as executive director Asia-Pacific for Fagerhult Belysning. Before that, he worked for IMI Indoor Climate and Uponor AB. His last position was as senior vice president for Gunnebo.

Mats was a typical Swedish entrepreneur who tirelessly built a production and commercial presence for his employers on important export markets. This is the kind of work that skilful entrepreneurs like Mats quietly get done, and it forms a foundation for Swedenâ&#x20AC;&#x2122;s continued wealth while also generating positive developments in countries where our companies are active.

Mats was active in working with associations and soon engaged himself in Swedish Chamber of Commerce activities in China, where he was chairman for two terms in the fast-growing Shanghai Chapter. He was also vice chairman of the chamberâ&#x20AC;&#x2122;s main board over several years.

Matsâ&#x20AC;&#x2122; intelligence and stable leadership has meant a lot for the Swedish Chamber of Commerceâ&#x20AC;&#x2122;s development in China, and especially in Shanghai.

Among other things, Mats engaged himself in issues such as Swedish management and CSR. He was a much appreciated speaker who generously shared his experiences. Mats contributed greatly to Swedish participation in the Expo 2010 in Shanghai, which was a great success for Sweden in China.

He was a warm and wise person with a big heart.

He had a wonderful and artful sense of humour, spreading good will wherever he went. Mats was the kind of person that people wanted to be around. He was always himself and had no need be assertive. We also remember him as a devoted golf player. Matsâ&#x20AC;&#x2122; relation to China also grew on a personal level, and in 2007 he married Tracy. They gave birth to a daughter, Hannah, and Mats also leaves after him two sons, Simon and Daniel, from an earlier marriage in Sweden.

Mats was someone who affected many in a very positive way. It is sad that he has left us just halfway through life. Our thoughts go to Matsâ&#x20AC;&#x2122; family and friends. Rest in peace.

Directors of the Board Swedish Chamber of Commerce in China

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EAS Beijing Office, China, Mr Shangyou Dong, Manager, Ph: 0086 10 85322147,Cell: 0086 135 2199 5330, Mail: shangyou.dong@easab.com

SWEDEN HQ Environmental Air of Sweden AB. Mr GĂśran Hertzberg, M D, Ph: 0046 761 048 350, Mail: info@easab.com

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46 DRAGONNEWS t /0

AFTER HOURS Allan Riber Nielsen, Sales Manager Hong Kong and South China.

Q Clubs Swede Dreams in Shanghai Shanghai nightlife profile and DJ Robin Blixt is introducing a new concept for the Swedish community with Swede Dreams at Bar Rouge.

Robin Blixt landed the prestigious gig of spinning records at Shanghaiâ&#x20AC;&#x2122;s most (in)famous nightclub Bar Rouge at The Bund a little more than a year ago. Since then he has had the crowds bouncing on the dance floor every weekend. He handles an international audience of ages from 18 to 60 and the whole spectrum of musical tastes with dynamism, never failing to create a party. As a result, Blixt was promoted to music director a few months ago. He is now in charge of all music at the club, booking famous DJs and events (keep your eyes open, as there might be some well known Swedish names coming up â&#x20AC;Ś).

The best outcome of this for us Swedes is that there is now a dedicated night for blonde Vikings â&#x20AC;&#x201C; Swede Dreams. With the entire Bar Rouge staff donning blonde wigs and Blixt mixing up the repertoire with Swedish classics, the first Swede Dreams session was a night to remember. Blixt says that it was a special sight, seeing the Swedish flag proudly wave at the terrace in front of the Pudong skyline and playing Magnus Ugglaâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Kung i barenâ&#x20AC;? (King of the Bar) as the Swedish crowd sang along with gusto.

Blixt will soon finish his Masterâ&#x20AC;&#x2122;s in finance at Jiaotong University. He has also set up a DJ school and is now looking for a studio to get it kicking and to produce music. You can also listen to his podcasts, which are already followed by thousands of listeners.

Watch out for the next Swede Dreams!

â&#x20AC;&#x153;Anybody can move goods from A to B. The difference is how you do it.â&#x20AC;?

DJ Robin Blixt is part of the nightclub Bar Rougeâ&#x20AC;&#x2122;s revival in Shanghai.

Q Retail Swedish store on Square Street The squarestreet store is located, as the name suggests, on Square Street, a stoneâ&#x20AC;&#x2122;s throw from the Man Mo Temple in Sheung Wan on Hong Kong Island. Since 2009, David Ericsson and Alexis Holm have developed the concept from design studio to retail store, which in addition to the foundersâ&#x20AC;&#x2122; own brands Gram footwear and VOID watches sells everything from sunglasses to leather bags.

The store has clear Swedish aesthetics of simplicity and functionality. All products are designed on site and much of the product development is done in the shop providing a unique insight into the design process. All production is done in close collaboration with suppliers, especially in southern China, and several leather products are produced from leather tanned locally in Hong Kong. The close relationship with suppliers means that products are of very good quality and at a good price.

Q Restaurants Chill-out Thai in Beijing Purple Haze is a Thai restaurant and bar, serving genuine Thai food and great value drinks in a relaxed and comfortable environment. Take the opportunity to enjoy an afternoon in the restaurantâ&#x20AC;&#x2122;s library, which has thousands of books in numerous languages and covering a range of subjects you are free to read and browse. In the library, you can enjoy the afternoon sunshine with a cup of coffee as you work or just relax with a book. Wireless internet is available.

Purple Haze opened in January 2005, and is partly Swedish-owned. The restaurant quickly became one of the most popular Thai restaurants in Beijing. They occasionally organise parties, presentations and activities for both corporate and private guests.

Purple Haze is located in the alley behind ICBC Bank, just opposite the Workers Stadiumâ&#x20AC;&#x2122;s (Gongti) North gate.

48 DRAGONNEWS t /0

â&#x20AC;&#x153;In addition to shipping goods from A to B, we can handle everything you may need in between: warehousing, quality control, labelling, consolidation, customs handling, certificate applications, bonded warehousing, distribution and project logistics.

Also, we like to think we are doing it the Scandinavian wayâ&#x20AC;&#x201C;more control and responsibility and less hassle and excuses.

Call me or send an email to arni@scangl.com and letâ&#x20AC;&#x2122;s talk some Scandinavian. Welcome!â&#x20AC;?

www.scangl.com

41/F, China Online Centre, 333 Lockhart Road, Wanchai, Hong Kong. +852 2117 4800.

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Executive Homes HK Ltd 1601-02 Universal Trade Centre, 3 Arbuthnot Road, Central, Hong Kong

www.executivehomeshk.com David Ericsson (left) and Alexis Holm design and develop all products in their store.

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C-042474

THE CHAMBER AND I There is an increasing Swedish presence in cities such as Chongqing and Chengdu, and the Swedish Chamber of Commerce is currently looking at an expansion of its activities, says Katarina Nilsson, who is the chairperson of the Shanghai Chapter and vice chairman of the main board.

Expanding the chamber activities

K

atarina Nilsson has been resident partner at Advokatfirman Vingeâ&#x20AC;&#x2122;s Shanghai office since 1 January 2011. In September 2007, she was made head of Vingeâ&#x20AC;&#x2122;s Hong Kong office. She has a Master of Law degree from Lund University in Sweden and a Bachelor of Arts degree in Chinese from the School of Oriental and African Studies (SOAS), University of London.

She first moved to China in 1992.

Nilsson is also the vice chairman of the Swedish Chamber of Commerce in China and the chairperson of the Shanghai Chapter.

What sort of members do you see joining the chamber now? â&#x20AC;&#x153;New company members are getting smaller in size because itâ&#x20AC;&#x2122;s not only the big multinationals that are coming to China. There is also an increase in associate members, meaning Swedes who join as individuals rather than through a company.â&#x20AC;?

When did your company become a member? â&#x20AC;&#x153;Vinge was one of the founders of the chamber in Hong Kong, and joined the chamber in China in 1999.â&#x20AC;?

What is your favourite chamber experience so far? â&#x20AC;&#x153;Meeting [table tennis star player] JĂśrgen Persson at the National Day celebration in 2011.

Speaking at the table tennis event held as part of the celebrations was my first public assignment as chairman in Shanghai and I knew very little about table tennis. But JĂśrgen was professional, humble and genuine.â&#x20AC;?

What is member value for you? â&#x20AC;&#x153;The chamber provides not only great networking opportunities, but also a way for Swedish companies to be heard with one voice â&#x20AC;&#x201C; both in China and Sweden. For example, the chamber recently wrote to the Swedish government urging them to initiate talks with the Chinese government regarding a bilateral agreement on the new rules on foreignersâ&#x20AC;&#x2122; social insurance contributions in China.â&#x20AC;?

What are the big challenges for the chamber at this point? â&#x20AC;&#x153;Reaching all the potential members that are establishing themselves in other parts of China. We see an increasing Swedish presence in cities such as Chongqing and Chengdu, and we are currently looking at an expansion of our activities. Another challenge is to provide member value also to the Chinese employees of Swedish entities in China.â&#x20AC;?

What events are of most value for you? â&#x20AC;&#x153;No one admits this, but they all think it: the social events are a big reason for joining the chamber. I thoroughly enjoy the annual crayfish and Christmas parties!â&#x20AC;?

Finally, do you have any comments on Dragon News? â&#x20AC;&#x153;The latest issue was really top class. I was especially interested in the theme regarding Chinese investments abroad.â&#x20AC;? b

No one admits this, but they all think it: the social events are a big reason for joining the chamber.â&#x20AC;?

Swedish Chamber of Commerce in Hong Kong

Swedish Chamber of Commerce in China

DIRECTORS OF THE BOARD Ulf Ohrling, Chairman [Mannheimer Swartling] Niclas MĂśttus Olsson, Vice Chairman [Getinge Infection Control East Asia] Gunnar Mansfeld, Treasurer [Troy Group] Eva Henriksson [Henriksson Consulting] Dan Lindwall [Handelsbanken] Staffan LĂśfgren [ScanAsia Consulting] Laurence McDonald [Ericsson Ltd] Kristian Odebjer [Advokatfirman Odebjer Fohlin] Per Ă&#x2026;gren [APC Asia Pacific Cargo]

DIRECTORS OF THE BOARD Mats Harborn, Chairman [Scania] Katarina Nilsson, Vice Chairman [Advokatfirman Vinge] Fredrik Ektander, Vice Chairman [SEB] Erik Ek, Treasurer [Swedbank] Yvonne Chen [GM, Swedish Chamber of Commerce in China] Pao-Ling RĂśjdmark [associate member] Birgitta Ed [Springtime] Johan Menckel [ Sapa Group] Tom Nygren [Ericsson] Lars-Ă&#x2026;ke Severin [PSU] Thomas SĂśrensson [B&B Tools] Sara Wramner [VisitSweden]

50 DRAGONNEWS t /0

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