Dragon News - No. 2, 2012

M e m b e r M a g a z i n e f o r S w e d i s h C h a m b e r s o f C o mm e r c e i n H o n g K o n g a n d C h i n a

No.02

2012

8

Shaun Rein The end of cheap China

22

Laurent Leksell Helping people live longer

24

Lovisa Tedestedt A passion for fashion

Healthcare for the masses China’s massive healthcare reforms not only benefit the country’s 1.3 billion people but also the medical technology companies that supply modern equipment.

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CONTENTS

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: Gao Erqiang / Photo courtesy of SCA Asia-Pacific 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

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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 Office Manager Beijing: Karin Roos Webmaster & Finance Assistant: Jaycee Yang Administration Assistant: Vika Jiao

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8 Opinion: Shaun Rein/Ben Cavender 10 Snippets 12 Cover story:

Healthcare for the masses

22 Executive talk: Laurent Leksell 24 Feature: Lovisa Tedestedt

12

28 Young Professional interview: Emma Pettersson

30 Feature: Importance of Swedish language 32 Chamber activities in Hong Kong

22

34 Chamber activities in Beijing 36 Chamber activities in Shanghai 38 New members 44 Chamber news

24

46 Annual General Meeting in Hong Kong 48 After hours 50 The chamber and I: Mikael Rajaniemi Swedish Chamber of Commerce in Hong Kong

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The Swedish Chambers of Commerce in Hong Kong and China

DRAGONNEWS • NO.02/2012 3

Jon Hicks/Corbis/Scanpix

EDITORIAL

When it’s time to do business, we’re exceptionally open.

Mats Harborn Chairman Swedish Chamber of Commerce in China

Ulf Ohrling Chairman Swedish Chamber of Commerce in Hong Kong

Healthcare and harmony Dear Reader, The first Swedish joint venture company in China was the Sino Swedish Pharmaceutical Co, Ltd in Wuxi, which was founded in 1982 and started production in 1987.

Since then many Swedish companies within the healthcare sector have been investing in China and have set up businesses in China.

Sweden has gained a very strong position in China as a world-leading country with firstclass companies addressing healthcare and elderly care.

Strangely enough, it was the “open door” policy of Deng Xiaoping that led to dismantling of the former socialist social security system, and now some thirty years later it needs to be rebuilt to cover the whole population if China is to have a chance of a continued stable development and a “harmonious society”. The attention is now turning from hardcore industrial infrastructure to the social infrastructure.

A recent World Bank report, “China 2030: Building a Modern, Harmonious, and Creative High-Income Society”, highlighted six areas where China needs to make improvements in order to develop beyond the so called middle income trap. The fourth area is to “expand opportunities and promote social security for all”. The report makes the case that such policies will be instrumental in reversing rising inequality and helping 6 DRAGONNEWS • NO.02/2012

households manage employment-, healthand age-related risks. They will also be a prerequisite for increasing the mobility of the working force.

China, as we all know, currently stands at a crossroads socially and economically in which it must reduce social tensions and needs to increase private consumption.

China, therefore, has to make huge investments in building hospitals and equipping them so that they can cater for the basic needs of normal people.

As the World Bank report also put forward in its fifth recommendation, China needs to strengthen the fiscal system in order to be able to sustainably finance the country’s public needs from the central to local levels.

Sweden is an innovative nation with unique, world-class products and services being developed by both large and small companies. However, this kind of business requires a lot of knowledge about how the public procurement systems and the medical equipment certification systems work in China. That in itself becomes an entry barrier that makes it difficult for smaller companies to compete, since they often lack the resources.

We hope that China’s State Food and Drug Administration (SFDA) and other authorities that regulate the healthcare market will take this into consideration in order to

widen access to innovative solutions and to enable smaller companies to become certified.

Unfortunately, the SFDA has recently been involved in bribery scandals, which perhaps have resulted in an overly cautious attitude.

China needs to adopt transparent and speedy procedures, and why not introduce a system in which Chinese authorities are able to rely on decisions taken by a select number of countries and reliable authorities?

As is often the case in Sino-Swedish business relations, in the area of healthcare, there are excellent complementarities between our two countries. One area, though, in which Sweden has not so much to offer China, is how to organise healthcare from the patients’ perspective. China would rather look to Hong Kong, or to itself for that matter, with hospitals apparently focused on doctors being able to do their jobs with as little as possible bureaucratic interference. It would be interesting to see how much quality work is carried out by the average doctor in a regular Hong Kong hospital from the patients’ perspective compared to the best one in Sweden. This is possibly an interesting topic for any of the numerous Swedish students writing papers about China.

This is the last issue of Dragon News before the summer break, so we would like to wish you all a great summer. And stay healthy and harmonious!

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Challenge 1: The end of cheap China While China was once the go-to country for low-cost production, it is no longer a cheap location for production, or for operating a business in general. In 2011, China’s minimum wage increased by an average of 22 per cent in 21 of 31 provinces; add to higher wages, rising commodity costs and rents, and the result is that companies can no longer view China as a low-cost centre for business.

Instead companies need to adapt their business models to adapt to risings costs while maintaining efficiency and margins.

First, companies producing in China must evaluate whether China still offers a cost-efficient production base. Despite rising costs, in many cases it does. For high-value products, China is still cost efficient due to a developed infrastructure, while high worker efficiency trumps the high cost of production, meaning that shifting production to countries with lower wages would only result in erosion of efficiency rather than overall cost savings.

However, for light manufacturing, where worker skills and efficient infrastructure are less important, China may now be too expensive, and it makes sense for companies in this 8 DRAGONNEWS • NO.02/2012

The end of cheap China

Shaun Rein is the founder and managing director of the China Market Research Group (CMR, www.cmrconsulting.com.cn), a strategic market intelligence firm, and is based in Shanghai. He is the author of the book The End of Cheap China: Economic and Cultural Trends that will Disrupt the World”, recently published by John Wiley & Sons. He is also a regular columnist in business magazines such as Forbes and BusinessWeek. He does not own shares in any of the companies mentioned in this article.

Ben Cavender is an Associate Principal at the China Market Research Group overseeing China market entry and market expansion projects for Fortune 500 companies and SMEs in both B2C and B2B related industries. He is frequently interviewed about emerging economic and consumer trends in China and is featured on a weekly radio broadcast and bi-weekly television broadcast on Chinese business trends.

China is no longer a cheap location for production or for operating a business.

China is now a key market to sell to. Foreign firms seeking success in China have new challenges and hurdles to overcome, writes Shaun Rein and Ben Cavender of the China Market Research Group.

Over the last five years Chinese companies have … established very strong, highly credible brands.”

TEXT: Shaun Rein and Ben Cavender, China Market Research Group (CMR)

Chinese consumers are willing to spend for high quality products, such as luxury brands.

Photo: iStockphoto

A

s Europe and the global economy continue to struggle, many foreign firms are seeking to build growth in new markets and are increasingly relying on China not just as a production centre but as a key market to sell to.

China is now the most important or second most important market for automobiles, apparel, coffee, consumer electronics, and a host of other goods and services. Apple quadrupled sales from US$3 billion to almost US$13 billion from 2010 to 2011, and China is now the largest market for men’s suit maker Zegna, and is expected to be Porsche’s largest market by 2014.

Despite inflation of over 5 per cent in 2011, consumers in China continue to spend.

The China Market Research Group (CMR) has conducted thousands of interviews with Chinese consumers over the last six months and the vast majority of consumers are continuing to spend and are optimistic about the future. Retail figures bear out the optimism.

Over the 2012 Chinese New Year period, retail sales grew 16.2 per cent year-on-year and retail spending is on pace to grow 16-18 per cent in 2012.

But while there are tremendous opportunities for companies in China, there are also some very serious challenges facing any company looking at China as a balance against slowing growth elsewhere.

scenario to consider alternative production centres such as Vietnam or Indonesia.

When Best Buy entered China they expected to use superior service to take market share from domestic leaders Gome and Suning, but found the competition to be fiercer Challenge 2: Moving up-market Chinese consumers are willing to pay for than expected. Gome was quick to update its better products and better service, but many stores, improve service, and adjust its product foreign companies mistakenly believe that mix to include more profitable, higher-margin Chinese consumers are highly sensitive items. Subsequently Best Buy has had to to price and will not pay. To the contrary, retreat from the market.

Chinese consumers are highly attuned to Leading dairy brand Mengniu is another value and willingly pay a premium for good example of a domestic firm that has given value, which they define as safe, high quality foreign entrants all that they can handle. Reproducts, along with products that fit the imbounding from a series of food safety scandals, age of the lifestyle they wish Mengniu has been successful to lead. Companies can also in positioning its brand above differentiate by offering better major multinationals like service both before and after Nestle and Danone because it the sale, as Chinese consumers understood consumer needs The average increase of the will spend more for a better and expectations, while Nestle minimum wage in 2011 in overall experience. and Danone focused too much 21 of China’s 31 provinces.

While moving up-market on price competition. Foreign is a viable strategy for many firms can win by moving upmultinationals it is no longer a given that a market, but do not expect the competition to foreign brand can automatically command a cede the premium space easily. premium over domestic brands by virtue of being foreign. All too often, multinationals Challenge 3: Putting Chinese conexpect Chinese firms to compete solely on sumers first price and do not expect them to build viable The third major hurdle for foreign firms brands, but over the last five years Chinese seeking success in China is understanding companies have come on strong and have eswhat Chinese consumers are looking for and tablished very strong, highly credible brands. then developing products and services that fit These firms are agile, well funded, and pose a their needs. While European brands are highly serious threat to multinationals’ success in the respected by Chinese consumers and are seen China market. as offering well-designed, stylish products this

22%

Chinese consumers are highly attuned to value and willingly pay a premium for good value.”

Shaun Rein has recently launched a book called The End of Cheap China.

image alone is not enough. Chinese consumers want to know that brands are listening to their specific needs and developing products specifically for them.

Companies need to develop products, service, retail environment, and marketing to appeal to Chinese consumers from the start.

If they implement such a China-first strategy, China can be a major growth driver even as other major markets record flat sales.

The most successful multinationals in China are already doing this. They are making sure senior management spend time in China so that they have an on-the-ground sense of market development and are able to see firsthand what Chinese consumers are looking for.

China has been a major boon for companies such as Apple and Starbucks, which have embraced China as a consumer market but China’s rise will also likely mean growing production costs and input prices for global firms and, to be successful long term, companies need to have a clearly defined China strategy. b DRAGONNEWS • NO.02/2012 9

H e a lth c a r e S n i p p ets Making medicine more affordable n China has vowed to extend drug-price cuts, rankling some of the country’s largest manufacturers, in an overhaul of its healthcare system to trim the cost of caring for an ageing population.

The plan will be supported by a tendering system tested in Anhui Province that encourages drug-makers to compete on price and quality for state contracts.

“While the elderly were looked after in the past by their children, urbanisation and the nation’s one-child policy have eroded the tradition of family care, shifting the burden to the state. The government wants to broaden the use of the new procurement method, which led to price reductions of at least 30 per cent on medicines on its Essential Drugs List in the past year,” said Sun Zhigang, the top official overseeing the changes.

Push for treating diabetes

n The influx to Hong Kong’s hospitals of mainland mothers-to-be, who are accused of squeezing resources available to Hong Kong parents, was a key issue in the chief executive election in March.

Chief executive-elect Leung Chun-ying has now said that mainland mothers who do not have a husband from Hong Kong will not be allowed to give birth at private hospitals next year.

It sparked fears from private hospitals that have invested heavily in obstetrics. Public hospitals have allowed 3,400 places for mainland mothers this year.

n Diabetes is a serious problem in China, It is estimated that one in 10 adult Chinese have the disease, compared to one in 20 in the UK. As a result, China plans to train 8,000 doctors in rural areas to prevent and treat diabetes, covering 279 counties in nine provinces.

The year-long programme will allow doctors to receive both face-to-face and remote online training in the provinces of Jiangsu, Hebei, Zhejiang, Fujian, Guangdong, Sichuan, Yunnan, Shandong and Henan, according to the Chinese Diabetes Society (CDS).

A CDS survey indicated that China has more than 40 million diabetes patients in rural areas, similar to the number found in urban areas.

However, nearly 70 per cent of rural patients are not even aware that they have the disease because of the poor quality of rural medical care, the survey said.

Ji Linong, director of the CDS, said the training programme is aimed at improving the knowledge and skills of rural doctors for the purpose of standardising diabetes prevention and treatment.

QUOTE

Zero quota for mainland Mums

“Science and technology must play a major role in the healthcare reform.”

Chen Zhu, China’s Minister of Health

More county-level hospitals n Beijing and Shanghai, which make up 1.3 per cent and 2 per cent of China’s population respectively, have 544 and 306 hospitals, or 4.5 per cent of the nation’s total.

Henan, a poor province, which accounts for 7 per cent of the population has only 5 per cent of the nation’s total hospitals. Consquently, the government has set a target to construct 2,000 new county-level hospitals and ensure that each county has at least one hospital.

In 2010, 627 new hospitals were built, bringing the total number to 20,918.

10 DRAGONNEWS • NO.02/2012

Did you know … n … that Chen Zhu, Minister of Health in China, is the only minister without membership in the Communist Party of China?

Chen grew up in Shanghai and took his Master’s degree at a university that is now a part of Jiaotong University. He obtained his PhD from a university in Paris, France, and he also did postdoctoral research there.

Dan Lindwall General Manager Greater China and Branch Manager Hong Kong branch Dan Lindwall General Manager Greater China and Branch Manager Hong Kong branch

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Healthcare

for the masses China’s massive healthcare reforms not only benefits the country’s 1.3 billion people but also the medical technology companies that supply the hospitals and clinics with modern equipment.

Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com

12 DRAGONNEWS • NO.02/2012

T

he market opportunities in China for companies in the medical devices and pharmaceuticals sectors got a major boost a few years ago when China finally decided to improve its outdated healthcare system.

In 2009, China’s government announced a comprehensive healthcare reform initiative that would offer universal healthcare and affordable drugs to the masses. The government spent 850 billion yuan in the first phase, and today, China has extended its basic healthcare insurance coverage from 65 per cent to 95 per cent of the country’s 1.3 billion people.

The reform’s second phase continues until 2020 and will include a revision of the national Essential Drugs List (EDL) system with higher reimbursement levels than other drugs, the construction and renovation of hospitals and clinics, especially in the rural areas, disease prevention campaigns, national vaccination programmes and a gradual removal of the Chinese hospitals’ high margins on drugs.

“It is a gigantic healthcare reform, per-

haps the biggest ever in history if you take into consideration the number of people it affects and the enormous funds invested by the government,” says Laurent Leksell, former president of Elekta and today an executive director (see also pages 22-23).

One of the guiding principles of the 12th Five-Year Plan (2011-2015) is “inclusive growth”, which means that the benefits of the country’s economic growth will be shared among a wider proportion of the population.

Another guiding principle for the central government is “social harmony”, given the risks of social unrest if the wealth from the growth is not spread to the poorer rural areas of China.

The Chinese government also hopes that if the country’s social safety net grows stronger, its people will feel secure enough to spend more and save less, boosting domestic consumption, which will make China less dependent on foreign-owned companies and exports.

Due to the one-child policy, China also has an ageing population that will continue

to grow and need to be taken care of. The ageing population will generate higher demand for healthcare services, since the elderly have weaker immune systems, resulting in a higher incidence of illness.

“There are 185 million elderly people today who are 60 years or older. In 2050, there are expected to be 430 million,” says Daniel Huang, regional director for incontinence care at SCA in Shanghai.

Paradoxically, the people of China lost their healthcare safety net when the country opened up for market reforms and foreign investment. In the early 1990s, when the paramount leader Deng Xiaoping was the driving force in the development of the new China, the government dismantled the communist model, which covered most healthcare for households and shifted the costs onto consumers and the hospitals.

Since then, most Chinese have been forced to pay upfront and from their own pockets for services at hospitals. Since the govern-

DRAGONNEWS • NO.02/2012 13

China’s total healthcare spending in 2008 – that is before the reforms – was 1,453 billion yuan, which equals only 4.8 per cent of the gross domestic product (GDP).

This can be compared to around 9 per cent in Sweden and 16 per cent in the US. In 2007, the World Health Organisation ranked China’s health system at 144 in terms of quality and access, out of 190 countries, below far poorer countries like Haiti.

There are around 21,000 hospitals in China, which can be compared to Sweden’s 65. But much of the healthcare services are concentrated in a small number of

It is a gigantic healthcare reform, perhaps the biggest ever in history ...”

“We are selling our most complex and advanced equipment to China,” says Getinge’s president Niclas Möttus Olsson.

The Getinge Group has been active in Olsson, president of Getinge International China since the 1980s and has expe(Asia) Ltd in Hong Kong. rienced rapid growth since the 1990s.

The company set up a sales office in Over the past few years, he has seen a China in 1993 and a customer service shift in China when it comes to service. centre in 2000.

“When I came here in 2007, I was told In 2005, Getinge’s Infection Control and that it is not possible to sell services in Medical Systems divisions merged their China, only spare parts. But we continued headquarters and sales operations into offering service, and today service is one one joint office in Shanghai, later adding of the fastest growing areas for us. There an Extended Care division. are not so many developing countries Also in 2005, Getinge inaugurated a facwhere you can earn money on the aftertory in Suzhou, Jiangsu Province, manufacmarket but in China you can, making turing pressure vessels China very mature and other infectiontoday in that sense,” control equipment. Two says Möttus Olsson. more factories were Getinge employs added in 2008 at the some 200 people in The number of square metres at same site for manufacChina and Hong Kong.

Getinge’s new customer centre turing products for the “We have built an orin Shanghai. areas of extended care ganisation that is very

7,000

14 DRAGONNEWS • NO.02/2012

much run by Chinese but without losing our Swedish ‘DNA’.

We work hard to gain confidence among our customers at hospitals and governments,” says Möttus Olsson.

Getinge is building a new customer centre in Hongqiao, Shanghai, and it will be one of the group’s biggest centres worldwide. The 7,000-square-metre centre will contain offices and lecture halls, and be a meeting place for Chinese experts on infection control.

“Today, you have to go ‘all in’ when you are in China,” says Möttus Olsson.

Healthcare in China is today very much a question of technology.”

Niclas Möttus Olsson, Getinge

huge hospitals in the big cities – around 6 per cent of China’s hospitals handle 34 per cent of all the healthcare services. Millions of rural people still rely on “barefoot” doctors.

However, the intention of the reforms is to change all this and provide China’s population with universal healthcare by 2020. This means huge investments in new hospitals and upgrading of medical equipment.

“There are fantastic prospects for growth within the healthcare sector in Asia and in particular in China. Europe is a much more mature market,” says Stuart Paul, Gambro’s president for the Americas and Asia-Pacific.

Gambro is a world market leader in renal treatment technology and has tripled the size of its China operations since 2008 (see separate article).

Laurent Leksell, Elekta

Getinge: China is a prestige market

and medical systems.

In Suzhou, Getinge has also established a spare parts centre to supply original spare parts to customers in Greater China.

Most major hospitals in China, as well as many pharmaceutical companies and laboratories, have chosen Getinge’s systems.

“We are selling our most complex and advanced equipment to China. For Getinge, China is a prestige market, not a low-price market. The company’s philosophy is that never to sell anything abroad that you do not sell in Sweden,” says Niclas Möttus

Photo: Gambro

ment’s funding ended, the hospitals had to find new ways to finance their operations. The result was higher fees and an over-prescription of drugs sold at extremely high margins.

A dialysis centre at Renmin Hospital of Wuhan University.

Gambro: Fast expansion in China China is a fast-growing market for Gambro, but there are still a huge number of people that have no access to or cannot afford renal therapies for chronic kidney failure.

In the 1960s, Gambro developed the the dialyser, where purification takes dialysis machine and has since then been a place, while some 20 per cent of the world leader in renal treatment technolincome comes from renal intensive care. ogy. Dialysis is an artificial way to remove The total haemodialysis market in China waste products and extra fluid from the consists of 180,000 to 200,000 patients, blood when the kidneys can no and Gambro has around 25 longer do so on their own. per cent of the market. Paul Stuart Paul, president of the expects that there could soon Americas and Asia-Pacific at be 1 million patients since there Gambro, is responsible for the are many today, especially in company’s commercial expanthe poor provinces, that cansion in Asia and China. Since not afford necessary care or 2008, Gambro has tripled the live too far away from the Gambro’s turnover size of its China operations and nearest clinic. goal in Asia-Pacific has a turnover of around 630 “You have to define the before the end of million yuan, or US$100 million, different growth segments in the decade. and has 150 employees.

China in order to succeed. We

US$

1 billion

“Our Asia-Pacific turnover is approaching US$400 million today. Our goal is to reach US$1 billion in turnover well before the end of the decade,” says Paul.

Around 80 per cent of the income in China comes from Gambro’s haemodialysis business, in which the blood is conducted via blood lines outside the body through

Supported by the healthcare reforms and the latest five-year plan, China’s hospitals are now investing heavily in new technology.

“Healthcare in China is today very much a question of technology,” says Niclas Möttus Olsson, president of Getinge International (Asia) Ltd in Hong Kong. “With advanced technology, doctors and nurses can easier trace the source of the illness and then treat it.”

The introduction of more advanced equipment in Chinese hospitals has taken place at a rapid rate.

Traditionally, foreign-owned manufacturers of medical devices have targeted the most modern first-tier hospitals in the big cities, since they were the only ones who could afford to buy the equipment.

“Today, there are many hospitals in Shenzhen that are more advanced than the ones in Hong Kong on the other side of the border,” says Getinge’s Möttus Olsson.

Since it entered China in the 1990s, Getinge has witnessed rapid growth and has gained some 50 per cent market share for infection-control equipment in the first-tier segment of hospitals in China (see separate article).

“But today we also get requests from secondtier hospitals all over the country that can now afford to buy new equipment,” says Olsson.

Gambro’s Stuart Paul (right) discusses with customers.

are actively working with both upper-tier local and provincial governments as well as poorer provinces in order to bring haemodialysis there at an affordable cost,” says Paul.

Gambro has a factory in Shanghai for assembling blood lines and will soon open a new technical centre, also in Shanghai.

DRAGONNEWS • NO.02/2012 15

Bactiguard: Reducing the infection risk at hospitals The medical technology company Bactiguard has signed an important agreement with a Chinese distributor to sell its coated catheters all over China.

of the catheter. The coating consists of an extremely thin noble metal alloy, with antimicrobial and biocompatible properties.

“Our catheters can reduce the infection risk by half,” says Johan Rugfelt, Bactiguard’s head of the China operations.

Bactiguard is a Swedish medical technology company that provides solutions for preventing hospital-acquired infections.

Healthcare-related infections are the fourth largest cause of death in the western world. In Sweden alone, some 1,500 people die every year due to infections acquired in hospitals. This is estimated to cost Sweden some 400 million euros. In Europe, up to 10 per cent of inpatients acquire infections, while in some parts of Asia the number could be as high as 20 per cent.

Due to the overuse of antibiotics, 70-90 per cent of the bacteria that cause hospital-acquired infections are today resistant to at least one relevant antibiotic. China’s Ministry of Health has therefore implemented new strict guidelines in order to reduce the usage of antibiotics by 50 per cent.

Some two-thirds of hospital-acquired infections are caused by medical devices, in particular different types of catheters.

Bactiguard produces catheters and endo-tracheal tubes with a patented coating that prevents bacteria from adhering, or “sticking”, to the surface

Bactiguard started coating medical devices with thin metal layers as early as the late 1970´s. The company first got a foothold in the US, where it collaborated with CR Bard Inc, a leading medical technology company. In 1994, a Bactiguard coated urinary catheter was approved by the US regulatory authorities and launched on the market the following year and since then over 110 million Bactiguard coated catheters have been sold around the world.

Bactiguard has been working actively to find a distribution partner in China and, after meeting some 40 possible partners, the company decided last year to sign an agreement with Jian An, a pharmaceuti-

Our catheters can reduce the infection risk by half.”

Johan Rugfelt, Bactiguard

ernment announced an urgent review of However, to get products registered and approved is an expensive process and about 170,000 medical licences that were takes time, which can be a hurdle for awarded during his tenure at the agency. smaller companies.

In 2007, Zheng was China’s State Food executed for corruption, conand Drug Administration victed of taking 6.5 million (SFDA) is the regulatory yuan in bribes. body that approves the reg“The regulatory process istration of new products. has become more difficult,” The authority has gone admits Paul of Gambro. “The The number of hospitals through a turbulent time, SFDA has become more strinin China, which can be since Zheng Xiaoyu, who gent and they now require compared to Sweden’s 65. headed the administration many new tests and even lofrom 1998 to 2005, was cally run clinical studies prior found guilty of accepting bribes from firms to regulatory clearance for new products.” to register their products without making “We are aware that many companies them undergo the necessary checks. are having problems with getting their Following his sacking, the Chinese govproducts registered and approved by the

21 thousand

16 DRAGONNEWS • NO.02/2012

cal distributor in Shenzhen with 2,000 employees in every province in China.

Jian An delivers products to some 5,000 hospitals China-wide, but is focusing on the top 1,000 hospitals.

Jian An has the exclusive rights to sell the entire line of Bactiguard´s products throughout China. After signing the agreement, Jian An placed its first order of 70,000 Bactiguard catheters.

“We believe strongly in the China market, which has enormous potential. However, we are still in the start-up phase and are hiring our first local employees,” says Rugfelt.

SFDA,” says Robert Dykes, consultant at the Swedish Trade Council in Beijing.

Möttus Olsson of Getinge says that the China healthcare market is not so good for entrepreneurs: “It is a process market.

You need to have a good business plan and plenty of time and money. For smaller companies it could be a nightmare,” he says.

Officially, registering a product takes 24 months, but can often take 48 months or more, according to sources within the healthcare industry.

The medical technology company Bactiguard is in its start-up phase in China, with products that can prevent the spread of hospital-acquired diseases. Its products have been approved in many countries worldwide, but in China, Bactiguard is still waiting for

iggesund.com

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There are fantastic prospects for growth within the healthcare sector in Asia and in particular in China.”

Stuart Paul, Gambro the final approval from the SFDA for its products to be registered (see separate article).

China regards Sweden as a role model when it comes to healthcare services. Sweden has several world leading hospitals, such as Karolinska in Stockholm and Sahlgrenska in Gothenburg. Many Swedish companies are also world market leaders in healthcare, such as Elekta, Gambro and Getinge.

Sweden’s healthcare system is also an inspiration for China since there is a broad base of primary-care clinics at a grassroots level all over the Sweden. China’s system, on the other hand, has very little primary care, even though the country is now launching community health centres in urban areas. However, most Chinese go to the hospital, even for simple maladies such as colds, etc, since they expect to get better service there and they have to pay for it anyway from their own wallets.

On a ministerial level, Sweden and China signed a Memorandum of Understanding in 2006, which was followed up by agreements for certain areas including cancer management, e-education, infection control, health management and other healthcare issues.

Sweden’s Minister for Children and the Elderly, Maria Larsson, has visited China four times and met with her Chinese counterpart, Chen Zhu. The Swedish Trade Council is also very active in the fields of healthcare and life sciences, and arranges regular activities in which relevant Swedish companies can participate and present solutions for Chinese counterparts. For example, there will be a Swedish pavilion at the Hospital Build

18 DRAGONNEWS • NO.02/2012

The secret of success

SCA: Home nurses help the elderly The hygiene products company SCA has entered a joint venture in China with a Singaporean nursing home specialist to send home nurses to the family homes of elderly people.

In 2009, the Swedish hygiene products policy are now in their mid-30s. Most of company SCA started educating Chinese them are working and they definitely nurses about incontinence. This was done need help to take care of parents or in conjunction with SCA’s launch of the grandparents.

Tena incontinence diaper brand in China.

Incontinence is something that many As a result, SCA decided to start a home elderly people have to live with. Parents nursing service by employing its own who suffer from incontinence also have nurses. SCA and the Singaporean nursing sense of losing dignity when they find home specialist Econ Healthcare entered difficulty in coping with toileting and a 50/50 joint venture and have employed require intensive care from their children. nine nurses since 2011.

They also become very dependent on The nurses can carry out diagnosis, caregivers, whether family members or and provide medical treatment, prevenotherwise. They feel helpless and useless. tive care and nursing care.

They get rashes and “It is valuable for us skin irritations, have to have an experienced difficulties sleeping partner, and we have and become stressed. made a lot of progress “That was the startalready. But we have The number of nurses in China ing point. We offered also experienced a that have undergone SCA’s education to hospital few problems. Many training for taking care of people nurses who were dealfamilies have difficulwith incontinence problems. ing with elderly people ties understanding the to help them improve difference between a the lives of their patients,” says Daniel nurse and a helper (ayi). Another barrier is Huang, regional director for incontinence that this type of service is not covered by care at SCA in Shanghai. medical insurance, and the families have Some 6,500 nurses from more to pay their own way,” says Daniel Huang. than 1,000 hospitals in 12 cities in Because of the growing ageing China, including Shanghai, Nanjing and population, China will never have enough Guangzhou, have undergone the educaplaces in nursing homes for the elderly, tion scheme and responses have been and most of them also prefer to stay at very positive. home. Home nurses can definitely be a However, from a family point of view, solution, as SCA has shown, but it is still most elderly people in China prefer to very much a question of changing the stay at home and not go to nursing regulations to allow medical professionhomes or hospitals. als to set up clinics, which they are not The first generation of the one-child allowed to do today.

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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.

Daniel Huang of SCA has launched a home nursing programme in China.

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China Exhibition & Congress in Beijing on 19-21 May. “We are very happy with the support we get from highest levels in Sweden. It means a lot especially for smaller companies,” says Johan Rugfelt, the China head of Bactiguard.

In 2011, the Embassy of Sweden, the consulates general in Shanghai and Hong Kong, the Swedish Trade Council and some other authorities released a strategic report which was meant to highlight specific sectors that would be prioritised by official Swedish actors in China in 2011-2014. Life sciences/healthcare is one of four industry sectors that was highlighted in the report.

“This sector was prioritised since we have, among other things, a good political platform to stand on through bilateral agreements, but also a strong concept, SymbioCare, that is based on integration and cooperation among all stakeholders – government, industry, research and education. These partnerships have helped Sweden to provide a cost-effective world class care to a large numbers of people.

It is our ambition to promote the Swedish healthcare system towards Chinese counterparts and through this create unique business opportunities for our Swedish life science companies,” says Dykes of the STC.

But there are also big challenges for China in terms of the ongoing healthcare reforms. Even though China plans to recruit 10 million new healthcare workers throughout the reform period, there will probably be a lack of nurses in several years time. The country has to decide whether it will allow foreign nurses to work in China and at the same time try to introduce more automation into healthcare.

The Swedish hygiene products company SCA has started a joint venture in which they employ nurses to take care of elderly people at home (see separate article).

The education of doctors is another challenge. China has 2.3 million doctors, with around 90 per cent trained in Western medicine. However, the standards of the medical education they receive are highly variable. In many cases, doctors undergo only a three-year post-secondary certification programme. Eight-year training, which is common in the West, is only available at two universities in China.

Furthermore, medical education in China focuses on specialists, not on general practitioners (GPs). Chinese medical students have to choose a specialty early in their education and after graduation they are employed at a hospital and function as a specialist throughout their careers. b

Four key pillars The Chinese healthcare reform stands on four key pillars.

Healthcare financing: • Increasing breadth and depth of insurance coverage.

• Broader sources of financing.

Care delivery: • Strengthening primary care services.

• Establishing a 3-tier system for healthcare delivery in rural areas.

• Urban hospitals and community care centres dual referral.

Drug supply: • Essential Drug List (EDL) with open tender purchases.

• EDL retail price set by central/ regional governments.

• Value innovation with first-tomarket price benefits.

Hospital reforms: • Separation of ownership and management.

• Gradual elimination of drug margins.

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H

e did not intend to become a businessman but Laurent Leksell, normally known as Larry, ended up serving more than 30 years as a chief executive officer, the longest tenure in a publicly traded company in Sweden.

Laurent Leksell’s father, the late neurosurgeon Lars Leksell, created the famous Gamma Knife, a non-invasive machine used to treat brain cancer.

Laurent founded Elekta in 1972 to support his father to fund his research, but neither father or son was initially interested in getting involved in the business. The company was basically a research entity with the purpose of adding funding to his father’s research through product royalties from innovations made.

As chief of neurosurgery at Sweden’s leading medical university, Karolinska Institutet in Stockholm, in the late 1940s, Lars Leksell invented the stereotactic frame, which enabled neurosurgical instruments to be positioned more precisely in the brain. In 1968, he and a colleague, Börje Larsson, had made a prototype of the Gamma Knife, in which radiation beams were combined with stereotactic devices resulting in more precision.

The need for clinical solutions to combat cancer is very pressing in Asia. Elekta’s executive director Laurent Leksell sees great potential, especially in China, where the company is already the market leader in advanced technology for treating cancer and brain disorders.

Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com

Helping people

While working part-time for Elekta, Laurent Leksell spent most of his time in the world of academia. He received his MBA and PhD from the Stockholm School of Economics, was an international scholar at the Harvard Business School, a visiting professor at INSEAD in France, and a founder and partner of an international management consulting firm.

The Gamma Knife originally lacked advanced diagnostic imaging technologies but with the introduction of the computed tomography scanner the Gamma Knife could merge radiosurgery with digital imaging. In the mid-1980s, Elekta received inquiries from neurosurgeons in the US, asking whether they could provide a commercial version, and that became a reality in 1986. Sadly, Lars Leksell died of a heart attack the same year.

“At that time, Elekta was a small company with only a handful of employees and a modest turnover. I decided to leave all my other assignments and fully concentrate on developing Elekta,” says Leksell. “We focused on advanced clinical solutions for cancer care and neurological diseases and were able to expand heavily in the 1990s.”

live longer 22 DRAGONNEWS • NO.02/2012

Today, Elekta is a world leader in radiation oncology and non-invasive neurosurgery solutions. The company has around 3,500 employees worldwide and operates through own subsidiaries and partners in 70 countries around the world. Its annual turnover is around US$1.5 billion, of which 99 per cent is accounted for by exports. The company’s systems and solutions are used in over 6,000 hospitals, and more than 100,000 patients Australia and New Zealand, using distributors receive daily life-saving treatments with cliniand partners in other markets. Its regional cal solutions provided by Elekta. headquarters is located in Hong Kong.

Elekta has been setting the standard for treating challenging cancers and brain disorders Leksell sees great potential in Asia, esthat defy most conventional treatment methods, pecially in China. The medical device market and has created solutions that are both extremely in China is the fastest growing in the world accurate and non-invasive in the treatment of and is expected to sustain a growth rate of 10brain and body targets. Gamma Knife surgery 15 per cent over the next 10 years. Market alone has helped more than half a million peogrowth is driven by a range of factors includple worldwide live longer and better lives. ing an ageing population, healthcare reforms, Over the years, Leksell and his succesincreasing private healthcare insurance and sor as CEO, Tomas Puusepp, have developed product deregulation, among other factors.

Elekta into a comprehensive cancer-care The need for clinical solutions to combat company with new product areas as well as cancer is pressing not only in China, but new geographical sales areas. throughout Asia, both for The company is today a highly advanced solutions world market leader in software such as image guided radiation systems for oncology, and offers therapy (IGRT) and for more many solutions that enhance affordable solutions aimed at a the efficiency of workflows broader market. throughout the entire spectrum “Sweden has one linear The number of people of cancer care. accelerator [for conventional worldwide that Gamma In 2011, Elekta acquired the radiation therapy] per 160,000 Knife surgery has Netherlands-based Nucletron people. In Asia, the average is helped to better lives. for 365 million euros (US$523 4-5 million people per acceleramillion) to expand its offerings tor. This means that a big part in terms of cancer treatment. The acquisition of the population in Asia cannot get the care added brachytherapy, a treatment in which they need,” says Leksell. radioactive material can be placed inside a cancerous tissue, to Elekta’s two other leading Elekta is the market leader in China in product areas, neurosurgery and oncology. advanced technology for fighting cancer. “Our exports to China started already in 1982, and we established a representative office there in The US was Elekta’s first market and has always been the company’s biggest market. the mid-1990s,” he says.

Japan is the world’s second most advanced In 2000, Elekta entered a manufacturmarket for healthcare services and Elekta ing joint venture in China and in 2006 the started to make inroads there at an early stage. company acquired Beijing Medical EquipThe company also entered other Asian marment Institute (BMEI), the largest domestic kets, and by the mid-1990s the Asia-Pacific Chinese supplier of radiation therapy systems. represented 45 per cent of Elekta’s turnover, “We have developed the company to almost on par with the US, which had 50 per fully meet the needs of the Chinese and other cent. However, the Asian financial crisis in the emerging markets for affordable radiation late 1990s hit Elekta hard. therapy solutions,” says Leksell.

“Everything stopped in Asia for a couple Eight of the China’s 10 leading cancer hosof years, and we were forced to adjust, lay-off pitals are Elekta’s customers, and the company staff and tried to expand in Europe instead,” has a current turnover of about SEK1 billion (alsays Leksell. most the same in RMB), with software systems Today, the Asia-Pacific represents oneand linear accelerators as the leading products. third of Elekta’s turnover. The company has “We have sold between 20 and 30 subsidiaries in all leading markets, such as Gamma Knife systems to China, compared to China, Japan, South Korea, India, Singapore, only one to Sweden,” says Leksell.

We have sold between 20 and 30 Gamma Knife systems to China, compared to only one to Sweden.”

500 thousand

There are several reasons why Sweden, and the rest of Europe, are relatively small markets for Elekta. These include Europe’s limited capital equipment spending in healthcare, its scepticism about radiation treatments, and the fact that reimbursement levels are lower than, for example, in the US and Japan.

Leksell visits China five or six times a year and has witnessed massive changes as a result of the country’s healthcare reforms. His first visit to China was in 1979.

“It is a gigantic healthcare reform, perhaps the biggest ever in history if you take into consideration the number of people it affects and the enormous funds invested by the government,” he says.

“The reform is really needed since big groups of people, especially the farmers, haven’t had any social security system. The average life expectancy is also still low.

Compared to other emerging markets, China’s elderly have not reaped the benefits of the country’s strong growth.

“China will build 5,000 new hospitals, introduce general screenings of, for example, breast cancer and make big efforts in terms of diagnosing and treating diabetes, etc. Cancer care is part of the centre of the reforms, and this is also Elekta’s core business. Therefore, we will put a lot of energy into training to improve efficiency and customer service so as to ensure we can support the development of healthcare professionals and care delivery that China needs,” says Leksell. b Awarded for his contributions Laurent Leksell, born 1952, was chief executive officer of Elekta from 1972 to 2005, when he stepped down to become an executive director. For his achievements and contributions to Swedish industry, science and technology, Leksell has received several awards, such as the Entrepreneur of the Year Award in Sweden, the Swedish Trade Council’s Grand Export Prize and a gold medal from the Royal Swedish Academy of Engineering Sciences (IVA).

DRAGONNEWS • NO.02/2012 23

The entrepreneur

Scandinavian-designed wedding dresses made with luxurious Chinese silk fabrics is the trademark of Lova Weddings. Founder, Lovisa Tedestedt, can now count Miss Universe China and a famous Chinese-American fashion icon among her customers.

When we realised the potential in China, we quickly changed our plans.” follow the ceremony on television and watch a Lova Weddings fashion show.

The original idea was to sell Scandinaviandesigned wedding dresses, use exclusive Chinese silk fabrics, produce them in China and sell them online.

But the founders quickly realised that a web shop would not work. “We were a new and unknown company and people don’t buy expensive dresses that way.”

They had opened a showroom in Stockholm, Sweden, and were thinking of the USA, Germany and Brazil as other possible markets.

“When we realised the potential in China, we quickly changed our plans,” says Tedestedt.

Text: Jan Hökerberg, jan.hokerberg@bambooinasia.com PHOTO: Emanuel Slavescu

A passion for fashion N

anchang Lu is a beautiful, charming little street that sits quietly behind the hustle and bustle of Huaihai Lu in downtown Shanghai. There, in a three-storey building, Lova Weddings has a shop and a showroom attracting marriage-hungry Chinese and expatriate couples with Scandinavian-inspired wedding dresses made from luxurious silk fabrics.

Lova Weddings is the creation of Lovisa Tedestedt, who is the company’s founder, owner and executive designer.

She was born Lovisa Nordström in Marstrand on the Swedish west coast in 1972, but moved to Stockholm and, as an 18-year old, to the US for studies. First she lived in Los Angeles for a year, then in Rhode Island for six years and then eight years in Chicago.

In Rhode Island, she undertook a textile programme at the university, but was later hired by an IT company, today owned by Schneider Electric.

“Living and working in the US meant that I got a good dose of the American entrepreneurial spirit and also the foundations of marketing and business in general,” she says.

9 million

In 2000, she met Magnus Tedestedt in Chicago. Three years later they married in Trosa, a small Swedish romantic inland town. She wore an original Badgley Mischka-designed bridal dress that she had bought in New York.

“My own wedding made me think that I should perhaps start to do something else in life. I have always been interested in fashion but had never really used what I learnt about textiles and design at university.”

The opportunity came when Tedestedt’s husband was offered a job in Shanghai in 2008. Together with a Swedish colleague, Anna Ahlqvist, she founded Lova Weddings. The company was launched on 19 June 2010, the same day as the Swedish Crown Princess Victoria married Daniel Westling.

In Shanghai, the Swedish consulate general organised an event in conjunction with the royal wedding, in which some 150 Chinese journalists could

The price of silk has increased by some 200 per cent since I came here in 2008.” in Luo Zilin (left)

24 DRAGONNEWS • NO.02/2012

has increased by some 200 per cent since I came here in 2008,” says Tedestedt.

To try to cut costs, Lova Weddings moved its production to South China in 2011, where the manufacturing is cheaper than in the Shanghai region. But it was less successful than was hoped because it was not possible to visit the factory on a regular basis, so production was shifted back to Shanghai.

Besides bridal dresses, Lova also offers evening gowns, dresses for flower girls, accessories and even tuxedos. About half of the customers are Chinese; the others are expatriates.

Lova has also introduced a charity programme, and makes a donation for each bridal gown that is sold. The bride herself chooses the charity organisation.

Tedestedt designs everything In Sweden, there are about 20,000 church weddings and 25,000 herself. She uses Western design, since civil weddings each year. Most it is most popular also among the couples are price-conscious, and Chinese. The company launches one only a very small percentage of them collection with 15 different dresses The estimated are prepared to pay 15,000 Swedish each year. number of weddings kronor (about 14,000 yuan) for a “Our ambition is to find ways to in China each year. dress. In China, there are 9 million grow globally. We also aim to produce weddings every year, and many are our collections in bigger numbers and willing to pay substantial amounts for the event. move away from the not so profitable customSo Lova Weddings opened a store in Shangmade dresses,” says Tedestedt. hai. Tedestedt is now the sole owner, after her former business partner moved to the US in 2011.

Her company got a push when several ChiThe company employs five people and are plannese celebrities started to wear Lova Weddings’ ning to hire a couple more later this year. dresses, for example Miss Universe China, Luo The Tedestedt family lives in Pudong, where Zilin – who captured the 4th runner-up position husband Magnus works and their two children, in the Miss Universe pageant in São Paulo last Max, seven, and Emmy, five, go to school. year – and the Chinese-American television host, fashion icon and author, Yue-Sai Kan – who has been named “the most famous woman in China” “The business has been good but we need to be careful and not grow too fast. Costs have

by People magazine. gone up in China, for example the price of silk “Luo Zilin is 184 cm tall, almost as tall as me, and we have made several dresses for her which has been very important for us. Yue-Sai Kan comes and visits us regularly and she really likes our dresses. She has introduced us to many new contacts,” says Tedestedt.

She has also got help from her sister, Signe Nordström, an international fashion model, who poses on the cover of Lova Weddings’ collection brochures.

Tedestedt is not sure how long she will stay in Shanghai, which she describes as “the metropolis of the world, with its pulse and rapid development”.

“We will not stay in China forever, but hopefully for a few more years, then we will see …” b

a Lova evening

dress.

DRAGONNEWS • NO.02/2012 25

practices and the GAR30, a ranking of the world’s 30 most active arbitration law firms. This is the fifth consecutive year that Mannheimer Swartling has placed on the GAR 30 – every year since the ranking was introduced. Among the law firms included in the ranking, Mannheimer Swartling was the highest ranked firm from the civil law world. This reinforces our leading position when it comes to China-related arbitrations, since China is a civil law jurisdiction. mannheimer swartling named iflr law firm of the year: sweden 2012 Mannheimer Swartling has once again been named “Law Firm of the Year: Sweden” at the International Financial Law Review (IFLR) European Awards 2012 ceremony.

This is the sixth time in eight years that the firm has received this award.

what’s up

Nordic touch with a Chinese edge what’s new?

We are pleased to welcome four new lawyers with various experiences and backgrounds to our China team, which now comprises five partners/special counsel and 21 associates/ assistants. shanghai Echo Cao has rejoined Mannheimer Swartling as a Legal Consultant; previously, from 2007 to 2010, she worked in both the firm’s Shanghai and Hong Kong offices. Echo obtained her Master of Law at Tsinghua University, Beijing and received a Bachelor of Language (English, law oriented) at East China University of Politics and Law, Shanghai. She speaks Chinese, English and French.

Ida Gao joined the firm as a Legal Consultant in April. Prior to Mannheimer Swartling, Ida worked for five years at King & Wood advising domestic and foreign banks and corporations in a wide range of banking and financing deals, including syndicated lending, project finance and financial institution setup. Ida has significant experience in assisting and advising foreign banks on their daily operations and business expansions in China and has been rendering legal advice on PRC regulatory requirements on market accessibility of foreign banks’ new products.

hong kong Shan Lu has joined the firm as a Legal Assistant in Hong Kong. Shan obtained her LL.B. from Shenzhen University and LL.M. from the University of Copenhagen. During her studies, she participated in exchange programs in Tokyo and Brussels. Shan has worked as a Social Compliance Auditor in an American consultancy firm in Shanghai and Shenzhen and as a Legal Consultant in a Danish investment bank in Copenhagen. Åsa Rydstern relocated to the firm’s Dispute Resolution team in the Hong Kong office in March. Åsa holds an LL.M. degree from Lund University and is a member of the Swedish Bar Association (Sw. Advokat). She joined Mannheimer Swartling in Stockholm in 2006 and became a member of the firm’s Dispute Resolution practice group in 2009 and has since primarily focused on international arbitration. Åsa also has served as a clerk in the Stockholm District Court.

awards

leading international arbitration firms in global arbitration review’s listing Mannheimer Swartling features once again in the GAR100, Global Arbitration Review’s listing of the world’s most prominent international arbitration

“little red book” receiving favourable reviews and becomes required reading at university course

The book “Quotations from a China Practice”, written by Mannheimer Swartling lawyers Thomas Lagerqvist and Ulf Ohrling, continues to receive very favourable reviews from clients and business partners. A second edition is now being written which will include input from readers and a new chapter on corruption in China; segments the authors hope will make the book even more practical.

A few examples of what readers have commented: “I have to say that I have had the opportunity to read quite a bit of the book and I am very impressed by it – straight-forward, practical, and most importantly, a very helpful and accurate description of doing business in China. Well done!”

“A fantastic little book with highly useful information.

Although it is primarily directed towards the “beginner” even I, with quite a lot of experience, have found useful information.”

The book has also been selected as required reading for students participating in “Chinese Law and Chinese Legal Culture”, a new course at the University of Gothenburg School of Business, Economics and Law. The course is led by Juha Karhu, an honorary and visiting professor at the Faculty of Law, and both Thomas and Ulf will be giving lectures and leading workshops.

navigating the business and legal environment” was launched in connection with the release of “Quotations from a China Practice”. The course provides a comprehensive framework for understanding Chinese culture and an essential knowledge platform on which to base decisions regarding business and legal strategies involving China.

One of the first groups to participate in the course was a global M&A team of one of the firm’s major clients based in Sweden. They have subsequently commissioned a programme specifically for their expatriates working on M&A in China.

next step in china

Mannheimer Swartling, Ernst & Young, and the SwedenChina Trade Council co-operated to organise a conference entitled “Next Step in China”. The event focused on: developing strategies to support the China business; articulating “one face” to China; and, integrating the China business into the global context. The conference speakers included: Frédéric Cho, Handelsbanken; Jan Carlsson, Autoliv; Claes Pollnow, SKF; and Hans Sandberg, Atlas Copco, who during a panel debate moderated by Thomas Lagerqvist, shared the various strategies they employ in their China development. The seminar concluded with several workshops, including one led by Ulf Ohrling, “M&A in China – not difficult, only complicated”, that reflected on M&A transactions in China, the various challenges currently faced, and how these are compounded by omnipresence of cultural differences.

33 / f, jardine house 1 connaught place central, hong kong, china

telephone: +852 2526 4868 telefax: +852 2526 6568

25/ f, platinum no. 233 taicang road, luwan district, shanghai 200020, china telephone: +86 21 6141 0980 telefax: +86 21 6141 0983

cultural awareness and training programme launched

A cultural awareness and business training programme developed for the firm’s clients entitled “The art of doing business in China: From understanding the culture to

www.mannheimerswartling.com

Commuting between Sweden and China After two years in Beijing, Emma Pettersson moved back to Sweden but she continues to travel frequently to China, supervising the production for the jewellery brand, Snö of Sweden.

Text: Eskil Hallström, Eskil.hallstrom@gmail.com

E

mma Pettersson first came to China in 2007 to study Chinese in Beijing. Later she found a job as a product manager for Snö of Sweden (snö is the Swedish word for snow), a family-owned jewellery firm in the northern Swedish city of Östersund.

She is now based in Stockholm but works one or two weeks every month in China, either at the factory overseeing production or scouting new materials for coming collections.

What are your tasks as product manager?

“I work with the whole process of production, from idea to finished product. It involves collection design, material selection and quality assurance, pricing and simply making sure we have a product to sell and that it will sell well.

We are a team of people that work with these things and I oversee the whole process.”

How did you end up at Snö of Sweden?

“I had graduated from Stockholm University and started my first full time job as an investigator of card frauds at one of Sweden’s larger banks. But I wanted to do something different and I have always had a great interest in fashion and production. I decided to go to China because this is where a lot of the fashion production takes place. I first studied Mandarin for five months at the Beijing Language and Culture University and kept looking for a job.

Through the Swedish Students in China Association (Föreningen För Svenska Studenter i Kina) I heard that Snö of Sweden was hiring. I applied and was initially employed as a product assistant in Snö of Sweden’s factory in Beijing.”

What were your responsibilities then?

“I was mainly responsible for making sure that all the products we needed were actually 28 DRAGONNEWS • NO.02/2012

produced and shipped to Sweden as well as checking that the materials were used in the most efficient way. I later became purchasing manager in China.”

walking among the skyscrapers in the Central Business District and suddenly a hen ran out in front of me. China never ceases to surprise me!”

What has been the most difficult Why did you move back to Sweden? thing about work in China?

“I worked full time in China for two years “Communication has always been a challenge but after my boyfriend and it still is. Communimoved back to Sweden, I cation can be a challenge realised I couldn’t stay in even for people from the Beijing forever. When I same culture speaking decided to move back to the same language. We’re Stockholm, I didn’t want working with both lanto lose contact with China guage barriers and cultural and fortunately I was able barriers so communication to continue working for is something that always Snö of Sweden. The last needs extra attention to two-and-a-half years, I make sure that the original have been working both in message gets through and The number of products Snö of China and Sweden. Every that everyone involved fully Sweden releases every year. month I spend about one understands it. Only when or two weeks in China, you do this you can be sure working with production and materials, and that everyone is working in the same direction the rest of my time in Sweden.” and towards a common goal.”

1,500 to 2,000

What is the best thing about China?

“I like the opportunities and the fast changes. I find the contrasts and the mix of old and new in Beijing incredible and inspiring. I remember one of my first years in China when I was

How can you overcome communication difficulties?

“With patience, the longer you work with a person, the easier it is to make yourself understood since you both know each other.

Communication is something that always needs extra attention to make sure that the original message gets through.”

“Take chances and try new things, don’t be too picky,” is Emma Pettersson’s recommendation to young Swedes who want a career in China.

It’s difficult if you have a high rate of people working for a short time; in that case it’s good to have people around you that you trust and been working with for some time.”

Would you say that you are more a designer or a manager?

“Only me and Lena [Jonsson Näslund], the owner of Snö, work with design and creation of collections. Each year we release four collections consisting of 1,500 to 2,000 products, so I would say it’s a big part of my job, but it is far from all I do. I never really called myself a designer since it is a part of my job as a product manager.”

What are your plans for the future?

“To keep working at Snö of Sweden and build new markets for the company. Since the company is celebrating its 10th anniversary, we have a lot of events this year. We supply about 1,200 retailers and our biggest markets are Sweden, Norway and Finland. We also sell in the US, Canada, Iceland, Germany, Belgium, Holland, Romania and Austria. Soon, we will also get a new office in Stockholm. So there are a lot of things going on and my schedule is pretty much set until April 2013.”

Any advice for those looking for a job in China or looking to improve their career?

“Study the language first. Even if you’re not fluent in Chinese, it will help make you more comfortable living in China when you can communicate with people in their own language, you will feel much closer to your surroundings.

“Take chances and try new things. Don’t be too picky. You will learn something from every job you have. If you are already in China and looking for a job, you should take the chances you get. It is not as easy to find a job in China now as it was a few years ago. If you find a job in the field you wish to work in, you should think twice about declining just because it is a lower position than you see yourself working at. It can be an opportunity to learn the whole business and work your way up.” b Emma Pettersson in brief Name: Emma Pettersson Work: Product manager at Snö of Sweden Location: Stockholm and China Best about Beijing: “It’s always nice to take a stroll at the 798 art district. And the varied selection and the great contrasts of restaurants and food culture in Beijing are great.”

Worst about Beijing: “The pollution is bad and traffic jams can really make you stressed.”

DRAGONNEWS • NO.02/2012 29

Swedish language

The importance of your mother tongue Global research shows that children should learn reading and writing in their mother tongue first. The Swedish School in Beijing can help Swedish students to maintain and develop their Swedish.

Text: Maria Hedelin Björse, Swedish School Beijing, mariahedelinbjorse@ssbchina.com

W

hen families move abroad, choosing the right school is one of the most important decisions the family has to make. Some nationalities in Beijing have the opportunity to choose a school with their mother tongue as the language of tuition.

Swedes are one of them.

Global research shows that children should learn reading and writing in their mother tongue first. Once that is established, learning a second language becomes much easier.

Many people marvel at how quickly bilingual children seems to “pick up” conversational skills in a new language in the early years at school. However, people are often much less aware about how quickly children can lose their ability to use their mother tongues, even in a home environment.

The extent and rapidity of language loss vary according to the concentration of families from a particular linguistic group in the school and neighbourhood. Where the mother tongue is used extensively in the community outside the school, then language loss among young children will be less.

To reduce the extent of language loss, parents should establish a strong home language policy and provide ample opportunities for children to expand the functions for which they use the mother tongue, for example by reading and writing. This is not an argument against learning two or three languages. Indeed, children under eight years old learn new languages the most readily. But research shows that proficiency in one language makes it easier to master a second. Language is also an important part of your culture. To truly be part of Swedish society and culture, you need to master the language.

A Swedish child starts school with a vocabulary of 8,000 to 10,000 words. Expanding that vocabulary starts with the learning to read and write. An estimate among researchers is that vocabulary increases by around 3,000 words per school year. To read a newspaper or to understand the textbooks for the first year at high school in Sweden, students need a vocabulary of 30,000 to 40,000 words.

The loss of mother-tongue fluency among Swedish students living in Beijing is clear if you look at the results of the Tisus tests. Tisus is 30 DRAGONNEWS • NO.02/2012

recognised by all universities in Sweden as a statement of eligibility regarding Swedish language proficiency. You can take the Tisus test at the Swedish School in Beijing. Last time the test was given, there was only one student out of seven who passed the test, even though the students were born in Sweden to Swedish parents and spoke Swedish at home.

Swedish students studying at an international school will get an excellent education but they will have difficulties in developing their Swedish to the standard Swedish universities require. The Swedish School in Beijing offers courses in Supplementary Swedish for children from six to 18 years old. Students taking these courses will maintain their Swedish, but in order to truly develop the language the student will need further training, which a child can get as a full-time student at the Swedish School.

All families are different, and some Swedish families have no plans to move back to Sweden. For families planning to move back to Sweden and who would like to give their children the opportunity to be able to study at a Swedish university, it is important to consider how to provide their children with a high-level Swedish language education. b

Swedish children studying in Beijing.

New headmaster

Maria Hedelin Björse is the new headmaster at the Swedish School in Beijing.

Maria Hedelin Björse has been headmaster at Swedish School Beijing since January 2012. After several years as school leader heading Gymnasieskolan Spyken in the southern Swedish city of Lund and Bladin’s School in Malmö, Hedelin Björse now takes over leadership at the Swedish School Beijing. She looks forward to developing the school together with teachers and staff, improving the curriculum and courses portfolio, and being a part of Swedish cultural life in Beijing -- all with the children’s learning as her first priority, of course.

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Views on the news n The well-known South China Morning Post financial affairs columnist, Jake van der Kamp, is accustomed to looking into why things so often go wrong when politicians try to make everyone happy.

On 25 April, van der Kamp made a presentation at a well-attended joint chambers luncheon at Club Lusitano in Hong Kong. His presentation followed the same style as his columns: keep it fresh by never writing more than one day ahead.

Van der Kamp brought up the recent appointment of a new Chief Executive in Hong Kong, which saw Leung Chun-ying defeat his

arch rival Henry Tang, after Tang had been involved in a number of controversies, including admitting he had had extra-marital affairs and a scandal with unauthorised building works at his residence, which he blamed on his wife.

Van der Kamp’s straight-forward comment was that “a certain candidate was absolutely unsuitable … and it was good we saw him [Tang] off”.

Regarding Leung’s chances of changing things in Hong Kong, van der Kamp concluded that there is probably not much Leung can do, no matter whether he wants to solve the issue of indigenous male rural villagers’ rights to small houses or narrow the widened

wealth gap between the rich and the poor.

The schemes involving cash handouts and travel allowances have not limited the gap and the poorest will be the losers. “The bottom stone of the pyramid always carries the heaviest weight,” he said.

Van der Kamp even questioned whether it was necessary to maintain a big port in Hong Kong when the Hong Kong-MacauZhuhai link has been built: “Instead, we could have a huge space available for residential development.”

But van der Kamp was also positive about Hong Kong’s future: “Hong Kong has always survived by doing what China will not do or cannot do,” he said.

Pinkerton’s Rob Serjeant (right) with Kristian Odebjer of the Swedish chamber.

legitimate means of competitive intelligence through to outright industrial espionage, members learned how their most valuable information could reach the outside world.

Most importantly though, Serjeant shared insights on how companies can protect their trade secrets given these risks. Through the use of real-life case studies, members were shown how proper behaviour and policy practices can protect their businesses. Small details managed effectively and objectively mitigate the competition’s opportunities to obtain valuable company data. In fact, regular employees can provide some of the most innovative solutions. Protecting trade secrets relies not only on security but a mental and cultural ethos to safeguard the knowledge that gives a company its competitive edge.

Jake van der Kamp (second from left) together with Eva Karlberg (left) and Staffan Löfgren (right) of the Swedish chamber, Kirsty Boazman of the Australian chamber and Günther Rittner of the German chamber.

Protecting trade secrets n One of the key areas of concern for companies operating in China is the protection of trade secrets. With meteoric economic growth has come intense competition for transnational and domestic companies alike. Unfortunately, this spirit of competition has led to many cases in which rivals have pilfered trade secrets to compromise a company’s position, most notably with outright counterfeit products having identical specifications as the legitimate ones.

At a breakfast seminar recently, Rob Serjeant, managing director of Pinkerton Consulting Services, provided perspectives on this issue.

Covering methods and means of gathering secrets, the presentation highlighted how rivals target competitors’ trade secrets. Ranging from 32 DRAGONNEWS • NO.02/2012

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Beijing Wine tasting at Dragon Seal

The Dragon Seal Winery has won several international awards.

n On a beautiful Saturday afternoon, 14 April, the Swedish and Danish chambers in Beijing hosted members for a visit to the Dragon Seal Winery to learn more about the Chinese wine industry. The visit ended with a wine tasting.

We were guided through the museum that showed the history of Dragon Seal, which dates from 1910 when the winery was founded by a French missionary, and the wine cellar, where we had a look at the huge oak wine barrels that were used for earlier wine production. The interiors of the barrels needed to be cleaned by hand, so the workers had to enter the barrel through a tiny door. Nowadays, smaller barrels are used and only reused three times before being disposed.

From left, host Fredrik Ektander, Camilla Goldbeck-Löwe, Britta Öström, Per Sevastik, Anna Clarin (STC), Anita Jonsson and Anders Wollter.

THIS IS AN ADVERTISEMENT FROM LIND ANDERSSON

Dragon Seal is the result of French winemaking expertise and Chinese tradition and has won awards for its good quality at international competitions.

It is the third biggest winery in China. Most of its production is exported to Germany, France and Belgium. About 80 per cent of the production consists of red wine, some 10 per cent is white wine and there is a minor production of sparkling wine. Its vineyard is located in Huailai in Hebei province, close to the Great Wall at Badaling, where there is good winegrowing potential with hillside slopes, and sand and stone soil that gives the vineyard a well-drained soil with low organic content.

Swedish entrepreneurs challenge global advisory firms

Exploring the China aerospace

The journey that Mikael is referring to

Strengthened with this and other key

Over the years they both had been

begins in 2009 when he was working

people in Mikael’s and Henrik’s network

working towards China and felt that if

together with Henrik in one of the Big-4

the company was established in January

Lind Andersson should be able to

Risk

2010. The first step, like for any start-up,

succeed, then they needed a niche.

Gothenburg.

was to get the message out that Lind

In March 2011, Henrik and Mikael

“We had both been working as external

Andersson had been established. “At

brought their only employee to Shanghai.

auditors and taken the step over to Risk

that time, before the name had been

A former colleague, Stephen Yip, was

Advisory when the Swedish companies

registered, we called ourselves ‘LIAN

flown in from Hong Kong, the purpose

listed in Sweden had to comply with the

Consulting’”, Henrik points out.

was to sit down and brainstorm around

SOX regulations. After a few years of

With one slide, listing about ten different

how to enter the Chinese market. A few

being risk advisors and been part of the

solutions

weeks later Stephen Yip was hired as

firm’s increased globalization to serve

Henrik and Mikael started to promote the

Managing

their clients worldwide, we noticed that

firm. The response was immediate and

business.

there are smaller companies that needed

we closed a number of engagements

“The main purpose why we ended up in

assistance

during the first two months.

China was that many of our clients had

n It is just a matter of time before China becomes the second country in the world to send astronauts to the moon, said Xue Jingdong at an aerospace-related breakfast meeting on 17 April in Beijing. Xue is a Chinese space professional who is now the chief representative of the Swedish Space Corporation’s Beijing office.

Xue presented the history of Chinese aerospace from the late Tsien Hsue-shen (or Qian Xuesen), known as the father of the Chinese space programme, through milestones such as the Jiuquan Space Centre, established in the 1950s, and later achievements, such as the a space laboratory module Tiangong-1 and the docking missions of the spacecraft Shenzhou-8 in 2011.

Xue concluded that China will continue its ambitious space programme, including the Shenzhou missions and even Mars missions in the coming 20-30 years.

Lifting the knowledge level n On 15 March the chamber gathered four experts on corporate social responsibility, sustainable business, human rights and child rights for a seminar and panel debate at the Radisson Blu Hotel in Beijing.

Anders Wollter and Camilla GoldbeckLöwe from the CSR Centre at the Swedish Embassy gave a presentation on the development of the projects they are running and what steps companies should take in forming a positive CSR climate within their organisations.

Anita Jonsson from the Swedish Trade Council in Shanghai enlightened some 40 interested participants on how sustainable

business models, policies and strategies can be implemented in corporate operations.

Visiting professor Per Sevastik talked about the human rights project he is responsible for at Peking University Law School, and Britta Öström, director at CCR/ CSR (owned by Save the Children in Sweden), presented the project she is managing in China.

The individual presentations were followed by a panel debate with active participation from the audience. Overall the event was very successful in lifting the general knowledge level of all participants about these important subjects.

Xue Jingdong of the Swedish Space Corporation believes that China will be very active in aerospace over the next decades.

Henrik Lind and Mikael Andersson were employed by one of the international market leading Risk Advisory firms, when they decided to start their own business. In January 2010 they started to pencil out the strategy and setting up meetings with prospects and the response was immediate.

Now closing their second financial year Lind Andersson consists of 10 consultants and are represented in Gothenburg, Stockholm and Shanghai.

Among the clients we find international listed companies and not-for-profit organizations. “Our journey has just started and we are now ready to take the next step.” says Mikael Andersson.

Advisory

with

departments

our

risk

Mikael Andersson and Henrik Lind in the Gothenburg office.

in

services.

around

risk

Director

of

the

Chinese

However, our primary focus lied with the

expressed demand for improving and

large multinational companies”, Mikael

ensuring an effective internal control

“…our experience and lean

says.

structure ensure short lead

Henrik and Mikael started to discuss whether it would be possible for them to

time and high quality at a

start their own risk advisory. At the time

competitive price.”

the ambitions were quite conservative

-

structure in their Chinese subsidiaries, and we could tell that this was the case for more Swedish companies”, Henrik explains and continues “Our competitive

Mikael Andersson

advantage is the short lead time, when our clients need our services – they want

and in their first drafted business plan, the market was to serve companies in

“The

signed

engagements

were

it done yesterday. We might not be able

the western part of Sweden. “I remember

fantastic; we had more or less covered

to be there yesterday, but we will be

that we discussed this with a senior

our first year and proved that our vision

there tomorrow.” Lind Andersson has

board member of a couple of listed

that a small consulting firm can compete

during their short time in China been able

companies in the biotech industry, and

with the global firms – our experience

to carry out engagements for several

her first question was: ‘why do you limit

and lean structure ensure short lead time

Swedish listed companies. “Our next

your ambitions?’”, says Henrik with a

and high quality at a competitive price”,

step?” Mikael says and holding on to the

smile.

says Mikael.

answer “…Africa!”

Lind Andersson is a professional management consulting firm primarily offering Governance, Risk and Compliance solutions. Services provided are enterprise risk management, internal control and process improvement, fraud prevention and investigations, managing internal audit functions among others.

The

company

was

founded

in

Sweden

2010

by

Henrik

Lind

and

Mikael Andersson, both with extensive knowledge from risk advisory working with public companies and organizations. During 2011 an office in Shanghai was

34 DRAGONNEWS • NO.02/2012

management,

established to assist Nordic companies with subsidiaries or interest in China.

SHANGHAI

STOCKHOLM

GOTHENBURG

Suite1818, 18/F, OCN

Högbergsgatan 33

Teknologgatan 6

No. 699, Nanjing West Road

116 20 Stockholm

411 32 Göteborg

Shanghai 200041, P.R.China

Sweden

Sweden

Web: www.lindandersson.se

Email: info@lindandersson.se

Shanghai

Branding in uncertain times

If your company has a small marketing budget you can still use social media and bloggers, says Martin Stenberg.

n On 13 March in Beijing and two days later in Shanghai, a much appreciated seminar was held on the topic, “Branding in Uncertain Times”.

China has rapidly become the focus market for many companies. More intense competition from local and international companies, combined with declining growth, can result in a market squeeze. Under these increasingly difficult circumstances, branding is more important than ever, said Martin Stenberg, country manager at branding agency Rewir.

Stenberg presented insights and advice for companies aiming for the China market. There are many differences to the China market that can make or break your business. Since the underlying needs and perceptions are different, there are a few questions you need to consider.

“How is your brand perceived in China? Who buys your product? It could be very different from your traditional target group,” said Stenberg, taking Chivas Regal whisky as an example.

In the West, a typical Chivas customer is a middle-aged man drinking whisky by the fireplace. In China, it has become a party drink that is bought in night clubs and mixed with green tea.

Stenberg gave advice to companies that want to make a big impact using a small marketing budget: “Use social media and the growing trend of micro-bloggers to make a name for your brand. Identify hotspots or tight communities with your target audience, where your brand can become a lifestyle. They will be your ‘brand ambassadors’ and spread the word for you. If you cannot start your own trend, you can always piggyback on an existing wave that suits the image of your brand.”

Insight information on legal China n On 22 March, the Swedish Chamber of Commerce in Shanghai invited Luka Lu, lawyer and partner from Capital Associates to give a presentation on the labour law for Chinese employees of Swedish companies.

The presentation was held in Chinese.

Lu first introduced the important labour laws and regulations that were issued or implemented in China in 2011, including the regulation on work-related injury insurance and the social insurance law. She also presented the new laws and regulations that are in the process of legislation and likely to be issued in 2012, as well as the expected impact on companies.

Furthermore, Lu introduced some 10 labour dispute cases that her firm handled 36 DRAGONNEWS • NO.02/2012

Andreas Engström (Swegon) and Johanna Pollnow (Swedish Chamber of Commerce) with speaker Luka Lu.

over the past year. She not only explained the legal and hidden points that are generally neglected by companies, but also explained how to best handle these cases by combining cultural differences, the legal environment and business considerations.

Julia Zhou and Katarina Billing show how people can handle difficult situations in the office.

The impact of power techniques n We have all been there: In a meeting in front of the whole office, and somebody ridicules or ignores you, making you feel belittled or invisible. How do you handle this type of situation? How do you help someone else that is treated that way?

At an interactive seminar in Shanghai on 12 April, Katarina Billing and Julia Zhou from the MiL Institute shone some light on little things that can have a very negative impact on working relationships.

They showed illustrations of various power techniques and the impact these have on people’s well-being, energy and motivation. The techniques they illustrated included “making invisible”, ””ridicule” and “withholding information”, and various techniques whereby a person with more power makes sure his or her place in the hierarchy is not threatened, by belittling other people at the office.

This was followed by a discussion of solutions and ways of handling these types of situations. Examples included, “demand space”, “avoid being emotional”, “joke back” and “refuse to take a decision until you have all the information”.

The value of supporting each other in these difficult and often lonely situations was also stressed, for instance by building on what the “suppressed person” tries to get through, give space to him or her and other ways of reaching out emotionally.

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Nordea Bank S.A and Nordea Bank Finland Plc, Singapore Branch are part of Nordea Group, the leading financial services group in the Nordic and Baltic Sea regions. Being the leading Nordic panEuropean banking entity in Luxembourg, Nordea Bank S.A. focuses on international Wealth Management, Fund Distribution and Fund Management services. Our 400 employees serve a wide spectrum of international clients in more than 125 countries. Some products and services may, due to local regulations, not be available to individuals resident in certain countries and their availability may depend, among other things, on the investment risk profile of persons in receipt of this publication or on any legislation to which they are subject. Nothing in this publication should be construed as an offer, or the solicitation of an offer, to purchase, subscribe to or sell any investment or product, or to engage in any other transaction or provide any kind of financial or banking service in any jurisdiction where Nordea Bank S.A. and Nordea Bank Finland Plc, Singapore Branch or any of their affiliates do not have the necessary licence. Published by Nordea Bank Finland Plc, Singapore Branch, 3 Anson Rd #22-01, Springleaf Tower, Singapore 079909 www.nordeaprivatebanking.com subject to the supervision of the Monetary Authority of Singapore (www.mas.gov.sg ).

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Marketing is necessary if you want your business to grow. But marketing is like planting bamboo. In the first six years, the seedlings only grow about 12 inches high. Then suddenly in the seventh year the bamboo sprouts to six feet tall.

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planting bamboo

* The similarity between marketing and planting bamboo was originally conceptualised by George Torok, a marketing expert and co-author of the book Secrets of Power Marketing.

Bamboo Business Communications Ltd (Hong Kong) +852 2838 4553 Bamboo Business Consulting (Shanghai) Co, Ltd +86 21 6472 9173 Jan Hökerberg managing director jan.hokerberg@bambooinasia.com Johan Olausson sales and marketing manager johan.olausson@bambooinasia.com www.bambooinasia.com

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NCS Colour AB Room 105, Building 5, No 35, Shuiyin Road Yuexiu District, Guangzhou Guangdong Province 510075 Tel: +86 20 8900 5466 Web: www.ncscolour.com

Activities NCS is a global industrial standard for communicating colours; it develops and markets global systems through a series of education programmes. NCS is also a colour expert, offering consulting services to many industries that make products with colours.

Chamber representatives Viktor Planting-Bergloo E-mail: viktor.planting-bergloo@ncscolour.com Tel: +46 8 6174 715 Christina Chen Donghong E-mail: christina.chen@ncscolour.com Mobile: +86 139 0228 9728

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Kristina Holmberg Building 1, No 917, Halei Road Zhangjiang High Tech District Shanghai 201203 E-mail: kristina.h.holmberg@gsk.com Mobile: +86 138 1744 7720

Philip Broome Room 302, Building 1, TEDA Times Center No 15, Guanghua Road Chaoyang District, Beijing 100020 Tel: +86 10 8559 7139 Fax: +86 10 8559 7179 E-mail: philip.broome@cn.g4s.com Mobile: +86 139 1134 3280

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Camilla Ojansivu 31st floor, Tower 3, China Central Place No 77, Jianguo Road, Chaoyang District Beijing 100025 Tel: +86 10 6582 9488 Fax: +86 10 6582 9499 E-mail: camilla.ojansivu@hoganlovells.com Mobile: +86 139 0136 6140

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ZELA Business Consulting Firm Room 2F, Block C 108 Hong Feng Road Pudong, Shanghai 201206 Tel: +86 21 5031 9390 Fax: +86 21 5031 9390 Activities ZELA Business Consulting Firm helps Swedish and other European SMEs to set up the business and open the market in China. ZELA also helps Chinese companies to investigate and invest in Sweden and other European countries.

Chamber representative Laura Zhao, General Manager Email: laura.zhao@zela-international.com Mobile: +86 137 0195 7562

CHINA ASSOCIATE MEMBERS >>> Claes Kalderen Room 17-02K, 17th floor, Tower B Ping An International Financial Center No 1-3, Xin Yuan Nan Lu Beijing 100027 E-mail: ck@districompgroup.com Mobile: +86 139 1053 7046

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Andreas Johansson No 7, Zhaojiabang Road, Xuhui District Shanghai 200032 E-mail: andreas.l.johansson@gmail.com Mobile: +86 130 4168 1207

JOHNNY’S PHOTO & VIDEO SUPPLY LTD • Photographic Equipment • Video/Audio Hi-Fi Equipment • Home Appliances • Colour Film Processing/Enlargement • Audio/Video Dubbing Services • Communication Equipment • Electronic Equipment • Repairing Services • Mail Order Acceptable 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 – Sat 9:00am – 7:00pm Sunday 2:00pm – 6:00pm

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Main board meeting No 100 n On 11 April, the 100th main board meeting was held at the Swedish Chamber of Commerce in China.

Chairman Mats Harborn invited everyone present at the meeting to join in a toast for the Swedish Chamber of Commerce in China and wished the chamber the best of luck for the future.

DragonNews_outlined.indd 2

Back row from left: Mats Röjdmark (STC), Sara Wramner (Visit Sweden), Lars- Åke Severin (PSU), Birgitta Ed (Springtime), Karin Roos (SCCC), Johan Menckel (Sapa), Jakob Kiefer (Embassy of Sweden) and Erik Hellstam (Anders Wall scholarship holder).

Front row from left: Fredrik Ektander (SEB), Yvonne Chen (SCCC), Mats Harborn (Scania), Katarina Nilsson (Vinge) and Erik Ek (Swedbank).

Not present: Pao-ling Röjdmark (Associate member), Thomas Sörensson (B&B Tools), Tom Nygren (Ericsson) and Johanna Pollnow (SCCC).

Training programme for Chinese leaders

44 DRAGONNEWS • NO.02/2012

Crayfish parties coming up

Photo: iStockphoto

n Recruiting, training and retaining the right staff is central to success in business. One way of retaining staff, is to make employees feel proud of their employers and to make them aware of the uniqueness of Swedish leadership.

Participation, delegation and inclusiveness are three words that can explain the unique features of Swedish management, which gives the employee freedom to work independently and to come up with solutions to reach the set goals. Most of the Chinese staff working in the member companies of Swedish Chamber of Commerce highly value this way of working.

The Swedish Chamber of Commerce in China therefore likes to include more of their members’ local employees in activities, both in the general programme and in specially designed activities, held in Chinese, targeting the Chinese staff of the member companies.

Together with four of the leading companies within talent management and people development, we invite our members to a new training programme – Emerging Chinese Leaders.

The programme is a six-module training session running for three full days; targeting middle management Chinese staff, to obtain the skills needed to work and lead effectively within an organisation operating with

both Chinese and Swedish influences.

The programme will start with the first full-day of training in September, the second in October and the third in November, both in Beijing and in Shanghai. After completing at least five of the six modules, a certificate will be issued to the participants. In the programme, there is space for 25 participants, with a maximum of three participants per company.

The price for the six modules, including material, coffee breaks, lunches and a celebration dinner is RMB4,950. If you want to learn more about the programme, please contact our Beijing office by email at info@swedishchamber.com.cn or our Shanghai office at shanghai@swedishchamber.com.cn.

n First, we will enjoy a nice long summer and then it’s finally time for the crayfish season and – once again – the not-to-be-missed crayfish parties. It is not too early to pencil into your calendar the dates for the crayfish party in Hong Kong – Friday, 14 September; and in Beijing and Shanghai – Saturday, 15 September.

We wish you all a great summer and hope to see you all at the crayfish parties in September!

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 Hong Kong

Clean Healthy Air 24/7

= Life insurance and Higher Performance

The new board of directors (from left): Kristian Odebjer, Carl Christensson, Per Ågren, Gunnar Mansfeld, Ulf Ohrling, Laurence McDonald, Dan Lindwall, Eva Henriksson and Staffan Löfgren.

At Home • Kindegarten/School/High School/University • At Work

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 Göran Hertzberg, M D, Ph: 0046 761 048 350, Mail: info@easab.com

www.easab.com

Annual General Meeting in Hong Kong 2012 n SwedCham Hong Kong’s Annual General Meeting (AGM) was held on the top floor of Club Lusitano on 26 April.

Some 40-plus members participated in the meeting and cocktail reception.

During 2011, the chamber had eight active committees, and at the meeting their work was presented by their respective chairmen.

A new board of directors was elected, consisting of Ulf Ohrling, chairman, Mannheimer Swartling; Carl Christensson, Skandinaviska Enskilda Banken; Eva Henriksson, Henriksson Consulting; Dan Lindwall, Handelsbanken; Staffan Löfgren, ScanAsia Consulting; Gunnar Mansfeld, Troy Solutions; Laurence McDonald, Ericsson; Kristian Odebjer, Advokatfirman Odebjer Fohlin; and Per Ågren, APC Asia Pacific Cargo.

The chamber would especially like to welcome the new director Carl Christensson.

We would also like to take this opportunity to thank vice chairman Niclas Möttus Olsson, who resigned as director, for the time and effort he has put into the chamber work, and at the same time wish him all the best in his future endeavours.

46 DRAGONNEWS • NO.02/2012

SWEDEN’S LEADING BOARDING SCHOOL

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High school and Middle school programmes in Swedish or English. The IB Diploma has been established at SSHL for over 30 years with a proven record of success. Numerous free time activities and close contacts with universities and industry. Our school is located in idyllic Sigtuna on the shores of Lake Mälar, close to Stockholm cultural life and Arlanda airport.

Come and visit SSHL, an international version of Sweden. We are happy to show you the school and our activities at any time. We also offer a trial period, giving you the opportunity to experience school and boarding life.

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During the summer we offer summer courses in Swedish and Mathematics.

1. Ulrica Andersson (Direct Link) and Ulf Ohrling (Mannheimer Swartling).

2. Johan Olausson (Bamboo) and Fred Kong (Maxibit).

3. Chairman Ulf Ohrling (Mannheimer Swartling).

4. Kristian Odebjer (Advokatfirman Odebjer Fohlin).

5. Gunilla Rödström (SAS).

SIGTUNASKOLAN HUMANISTISKA LÄROVERKET Telephone: +46 8 592 571 00 www.sshl.se

A f te r hou r s ScanGlobalAdDragonNews.pdf

n Societies

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

Activities for Swedish women

Photo: iStockphoto

The Swedish Women’s Educational Association (SWEA) is a global non-profit organisation for Swedish or Swedishspeaking women who are living or have been living abroad. SWEA gives support when moving abroad or returning back home. SWEA has approximately 7,500 members in 73 local chapters in 33 countries on five continents. The organisation arranges a great variety of activities to promote Sweden and bond with foreign cultures. For more information, please visit www.swea.org/beijing or www.swea.org/hongkong.

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Networking in Shanghai

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Swedish Club of Shanghai is a non-profit organisation connecting Swedes living in Shanghai by organising activities for over 230 members. You may know them by their previous name, Swede Ladies. Activities are arranged both during daytime and evenings, and include mahjong tournaments, lunches, presentations and networking. For more information, visit www.swedishclubsha.se

“Anybody can move goods from A to B. The difference is how you do it.”

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Photo: iStockphoto

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www.scangl.com

n Books China’s choice of path

n Stores Swedish candy in Hong Kong Swedes living abroad have a habit of frequenting IKEA stores around the world in order to find their favourite Swedish food or sweets. However, in 2011, the company decided to stop selling all external brands and concentrate on own-branded products.

But if you are living in Hong Kong and longing for Swedish sweets, you don’t have to rely on friends to bring them from Sweden any more; you can simply go to Sheung Wan, the western part of Hong Kong Island.

Bacchus is a store where a longing for Swedish sweets can be cured, no matter whether it is Polly, Bilar or Singoalla you crave for. Bacchus not only sells Swedish sweets; you can also find everything from Belgian beer to Chinese medicine.

Name: Bacchus Address: G/F, 59 Wing Lok Street Website: www.hkbacchus.com (in Chinese) 48 DRAGONNEWS • NO.02/2012

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n Organisations

Gathering for hungry Swedes Friends of the Pea (Ärtans Vänner) is a society that was founded in New York over 40 years ago. Since then it has spread all over the world, wherever there are hungry and homesick Swedish expatriates. In Shanghai it started in November 2009. The third Thursday of every month the Friends of the Pea gather at Maya restaurant in Shanghai for a Swedish three course meal: a classic Swedish starter followed by the traditional pea soup and pancakes. Each participant is required to tell an anecdote or sing a song in order to introduce him or herself to the gathering.

The society is open to all Swedes and their friends. If you are interested, contact Tom Simeo at tsimeo@vikinginvestments.com

7/20/11

Torbjörn Lodén, a Swedish sinologist and one of Sweden’s foremost experts on China, has released a book called Kinas vägval – från himmelskt imperium till global stormakt (China’s Choice of Path – From Celestial Empire to a Global Major Power), published by SNS Förlag.

Lodén takes the reader on a journey through China’s dramatic history, from the time before China became a country to today. He shows how the first steps towards modernity was due to fear of foreign threats, he examines through Mao Zedong’s revolution, which politicised everything, and analyses the last 30 years, which have led to greater changes than ever in Chinese history.

Today, the country faces some critical choices. Should it go back to indigenous traditions and highlight its uniqueness?

Should it continue to conceal the unpleasant truths about the country’s modern history? Should it maintain oneparty domination or introduce political democracy? In a final chapter, the author discusses China’s relationship with the world.

Lodén is a professor of Chinese language and culture at Stockholm University and a director of the Confucius Institute in Stockholm.

“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 way–more control and responsibility and less hassle and excuses.

Call me or send an email to arni@scangl.com and let’s talk some Scandinavian. Welcome!”

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

T he c h a mbe r a nd I

A forum for exchanging experiences Mikael Rajaniemi of Munters China is active in a work group that is setting up a chapter of the Swedish chamber in South China.

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ikael Rajaniemi has been managing director of Munters China since 2007. In 2011, he became the head of the newly established joint venture Munters Keruilai in Dongguan, Guangdong Province. In 2012, he was appointed chairman of Munters China. He has a Master of Science degree from the Royal Institute of Technology in Stockholm, Sweden.

Rajaniemi first moved to China in 2006, and spent more than five years in Beijing. In October 2011 he moved to Dongguan.

When did your company become a member of the Swedish chamber?

“Munters has been present in China since 1995 and we became a member in 2004.”

What is the member value for you?

“Doing business in China is very complex, and as a leader of a company in China there are obviously several advantages to being a member of the chamber of commerce. From my point of view, one of the most important factors is to get the access to other Swedish company managers and exchange experiences about the business environment.

“For instance, if our company has a serious problem in any area, it is very likely that other companies in China have had exactly the same problem, and either they already have solved it and can give valuable advice, or if not we have an excellent forum to discuss what to do. I also like the member directory as a tool that gives quick and direct access to other companies and their representatives. And, last but not least, the social events definitely give the whole family a platform for private networking and socialising.”

A new chapter of the chamber is setting up in Shenzhen, what opportunities could this bring for companies in South China?

“First of all, I believe it’s important that we reach out to all companies and people, both in general in China and in particular to the existing companies in South China. This is to promote ourselves and advertise our presence. How to do the marketing is a key question and I hope this article in our member magazine is one way of achieving this, but we must find other channels as well.

“Through our Shenzhen work group, we recently made a survey with the purpose of mapping Swedish companies in the Shenzhen and Guangzhou area, and there is really an impressive amount of potential new members.

“For companies and associates that have their main base in South China, the new South China Chapter offers a wide spectrum of activi-

It was great to see all the Swedes ‘turn even more Swedish’.” ties such as seminars, meetings and other events, and offers a unique possibility for both professional and social networking.”

What are the challenges for this new chapter?

“As a brand new chapter I think, as I mentioned above, a key challenge is to make our voice heard in the Swedish community, showing that we are present here in the South, and in a simple and clear way show what value they can get by becoming a member. Another challenge is that most of the Swedish companies in China are headquartered either in Beijing or Shanghai and consequently they are members in these chapters. And in the same sense we are in the proximity of Hong Kong, meaning that companies either are located there or that people might live in the South but have their company in Hong Kong. So, there is a challenge to find working methods between the chapters, supporting good cooperation rather than driving competition.”

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What kind of events do you think are of most value?

“Networking events both for business and private purposes are of most interest, along with certain seminars or meetings that coincide with important matters in my company at that time.”

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What is your favourite chamber experience so far?

“From a private viewpoint, it was my first Crayfish Party at the then Radisson SAS Hotel in Beijing 2006 when I was a newcomer in China and really was missing Sweden. It was great to see all the Swedes ‘turn even more Swedish’. Professionally I can’t pick one; there have been so many good ones.”

Finally, do you have any comments on the member magazine Dragon News?

“It’s definitely a high-class magazine that has developed in a great way over the years. It is very informative and up to date on the latest business developments in China, and this is of interest to Swedish companies.” b

Swedish Chamber of Commerce in Hong Kong

Swedish Chamber of Commerce in China

DIRECTORS OF THE BOARD Ulf Ohrling, Chairman [Mannheimer Swartling] Kristian Odebjer, Vice Chairman [Advokatfirman Odebjer Fohlin] Gunnar Mansfeld, Treasurer [Troy Solutions] Carl Christensson [Skandinaviska Enskilda Banken] Eva Henriksson [Henriksson Consulting] Dan Lindwall [Handelsbanken] Staffan Löfgren [ScanAsia Consulting] Laurence McDonald [Ericsson] Per Ågren [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 Röjdmark [associate member] Birgitta Ed [Springtime] Johan Menckel [ Sapa Group] Tom Nygren [Ericsson] Lars-Åke Severin [PSU] Thomas Sörensson [B&B Tools] Sara Wramner [VisitSweden]

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