operationswereevenmoreupbeatabouttheeconomicprospects.Dr.RüdigerGrube,boardThiswasreiteratedbyGerma

Chamber Events - All China

The German Chamber of Commerce in China

Chances in the Crisis Greater China Day

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8% economic growth in 2009. Is this self-prescribed goal by the Central Government in reach or rather wishful thinking? China experts and senior executives gathered at this year’s edition of the IHK’s (Organisation of the German Chambers of Industry and Commerce) annual flagship event on China to discuss the future potential and role of this market for German companies. Hannover, capital of Lower Saxony and home of the world’s largest exhibition centre, provided the suitable backdrop for the “Greater China Day”.

Dr. Gerhard Schröder

Plenary discussion with (from left) Mr. Alexander Hesselbarth (ZF Lemförder), Dr. Wolfram von Fritsch (Deutsche Messe), Dr. Rüdiger Grube (Daimler), Ms. Brigitte Wolff (Management Engineers), Dr. Albert Hieronimus (Bosch Rexroth) and Prof. Ulrich Lehner (DCW)

Over 370 delegates and 20 exhibitors followed the joint call from the organisers, IHK Hannover and the German Chamber Network in China, this year led by the GCC • Shanghai. Together with the Chambers and Delegates from Beijing, Guangzhou and, for the first time also Hong Kong and Taiwan, the official representatives of German industry across Greater China made a joint effort to inform businesses back home about the current issues and outlook of doing business in China. Delegates also had the opportunity to speak to senior corporate executives and experts from the German Chambers directly at the AHK Lounge.

Luxury Problems The forum’s subtitle “Chances in the crisis” did not leave any doubts that also China has experienced a significant downturn since last year’s autumn, but the discussants agreed that China’s problems are a luxury compared to the ones that other economies are facing.

This was reiterated by German Ambassador in Beijing, Dr. Michael Schaefer in his greeting address. The times of double-digit growth are over, but the country will and also needs to continue growing June - July 2009 | 22

at a solid pace. China has not experienced significant slumps in his economic activity, but it needs to reach the 8% threshold in order to avoid a dry spell. Schaefer also painted the political background picture in present day China. On the verge of leaping to the global top spot, the country is still far from settled in this new role.

Spurred by the economic crisis, the expectations of other nations towards China and its new responsibility have gained momentum.

The Chinese are not yet quite at ease with this and don’t feel sufficiently prepared to master these challenges. “China will not become the growth locomotive for the rest of the world over night”, Schaefer added. Stimulating domestic consumption still has priority and its sheer potential can give a strong impetus for the global economy.

Greater challenges he saw in the areas of social welfare and education. The fact that China has already reached the third place after the US and Japan in terms of released scientific publications, shows that it is nevertheless developing into a country of innovations.

Business Optimism Corporate leaders with large China operations were even more upbeat about the economic prospects. Dr. Rüdiger Grube, board

All China - Chamber Events

The German Chamber of Commerce in China

Ambassador Dr. Michael Schaefer

Dr. Gunter Dunkel (NORD/LB)

An undisputed challenge of doing business in China remains the area of product piracy. Former Minister of Economy of Lower Saxony, Walter Hirche provided hope for relief. As a growing player in innovative fields, China is increasingly accepting the topic of IP protection as an area of domestic concern. Hirche saw particularly the industries of nutrition, health, environmental protection and mobility bearing the largest market opportunities for German business in China.

Closer Integration of China The “new dynamism in Sino-German relations” that Ambassador Schaefer witnessed, was also the call of Gerhard Schröder in his keynote. The former Chancellor, once dubbed as an “old friend of the Chinese people” by Premier Wen Jiabao, unhesitatingly promoted a more proactive economic and political approach towards China. The country is still being underestimated in its importance to Germany.

A trustful partnership between the two exporting nations should not include ritualised threatening gestures, directed at public opinion.

Building up of trust and mutual understanding without open accusations is a better way to lead to more openness and change from within. Germany has also a responsibility to push for China’s closer integration into the global community, be it the G-8 or a wider formation that includes also other BRIC nations and leading industrial players like South Africa. China has demonstrated its willingness for peaceful solutions in its dealings with Kashmir, North Korea and also Taiwan. Closer integration of Germany and China should not be confined to the political sphere however. Schröder pleaded for a closer commercial interlocking of the two counties by means of intensified reciprocal asset participations and “no foreclosing against Chinese capital” by German legislators and businesses.

Schröder left open his prognosis for China in reaching its forecast, but he welcomed the EUR 460bn economic stimulus package by the government. The business community in the room was surprisingly www.china.ahk.de

unanimous in its prediction. While 8% is certainly an ambitious growth target, it was considered as realistic by most participants. No disagreement prevailed over the outlook that the Chinese economy would achieve considerable growth again this year, making it one of the first ones to master the crisis.

Topic: Greater China Day – Chances in the Crisis Date: 12th March 2009 Venue: Convention Center, Deutsche Messe Hannover Speakers: Dr. Hannes Rehm | President, IHK Hannover; Mr. Arved von zur Mühlen | Chairman of the Board, GCC • Shanghai & Managing Director Greater China, Lufthansa German Airlines; Dr. Michael Schaefer | Ambassador of Germany in China; Mr. Walter Hirche | Former Minister of Economy, Labour and Transportation, Federal State of Lower Saxony; Mr. Alexander Hesselbarth | Head, Corporate Communications, ZF Lemförder GmbH; Dr. Wolfram von Fritsch | Chairman of the Board, Deutsche Messe AG; Dr. Rüdiger Grube | Member of the Board, Daimler AG; Dr. Albert Hieronimus | Chairman of the Board, Bosch Rexroth AG; Prof. Dr. Ulrich Lehner | President, German-Chinese Business Association (DCW); Dr. Gunter Dunkel | Chairman of the Board, NORD/LB; Dr. Wilfried Prewo | Managing Director, IHK Hannover; Dr. Bernd Pfaffenbach | State Secretary, German Federal Ministry of Economics and Technology (BMWi); Dr. Gerhard Schröder | Former Federal Chancellor In six expert workshops during the afternoon, senior executives of German companies operating in China benchmarked their experience and provided market opportunities for German businesses in the following areas: • Automotive and supplier industries • Human Resources • Energy and environmental technology • Sourcing, cost structures in China, technical procurement, quality controls • “Mittelstand” best practice • Logistics and infrastructure development in light of the economic stimulus programme All presentations can be downloaded at the IHK Hannover’s web portal: www.hannover.ihk.de/ihk-themen/international/auslandsmaerkte-und-geschaeftsanbahnung/asien-ozeanien/gcdpraesentationen.html All photos courtesy of Heinrichson Photos 23 | June - July 2009

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member of Daimler AG, reconfirmed the prediction that China would become the world’s largest car manufacturer. The only doubt he had in this regard, was whether this would happen in 2018, as initially forecasted, or much earlier. Referring to new chances that the crisis has opened, Dr. Albert Hieronimus, Chairman of the Board of Bosch Rexroth AG, specified recruitment and retention of employees as two examples. Once considered major operational headaches of German companies in China, now seem to have improved significantly since the last quarter of 2008. Dr. Gunter Dunkel, CEO of Nord/LB, admitted a “pinch of optimism”, when he projected China to overcome the crisis in the second half of 2009 already with the rest of the world managing the turnaround at an unspecified later date.

Mr. Walter Hirche

Chamber Events - Beijing

The German Chamber of Commerce in China

Looking Back and Storming Ahead into a Strong 2009 GCC • Beijing Annual General Meeting

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Board of Directors of the GCC • Beijing

Another eventful year has passed and the German Chamber of Commerce • Beijing held its 9th Annual General Meeting. Over 80 participants registered for the event, held at the Kempinski Hotel’s big ball room. In his welcoming address, Chairman Dr. Richard Hausmann thanked all the chamber members for their trust and stressed the good cooperation between the board and the organisation of the GCC • Beijing.

Dr. Hausmann’s following presentation provided an overview of the measures taken by the Chinese Government in facing the current economic crisis. He described the Chinese attitude with a hint on the Chinese translation for ‘crisis’. The word ‘Weiji’ consists of two characters, which are parts of the Chinese words for ‘challenge’ and – more importantly – ‘opportunity’. With its comprehensive stimulus package of RMB Dr. Richard Hausmann emphasised that 4tn targeted mainly at improvements in German companies are still welcome infrastructure and living standards, the on the Chinese market Chinese Government has reacted quickly and consciously to actively counter the crisis. German companies are welcome on the Chinese market and may profit from this substantial investment package in many aspects. A discrimination of foreign companies or bias to prefer local companies in project awards on the Chinese government’s side has so far not been noticed by the German industry.

Dr. Niklas Schaffmeister, Vice President Asia Pacific of BBDO Consulting appealed to the audience not to underestimate the Chinese image of Germany and the power of the brand “Made in Germany”. Quite the Dr. Niklas Schaffmeister: “Cost pressure expected to be the greatest challenge in 2009”

opposite, placing traditional Chinese elements in a German ad could be counterproductive. He pleaded, “German companies should not hide their roots, but rather point them out.” Dr. Schaffmeister emphasised that the right moment for investing in advertising can make a competitive difference. He illustrated this by presenting several examples of corporate ad spending behaviour during times of economic crisis, when increased advertising during a recession can outpace competitors. Discussing these facts with the audience he summarised that acyclic behavior can be good.

Ms. Jutta Ludwig, Executive Director of the GCC • Beijing, gave a warm welcome to Mr. Marcel Schneider of TUI China Travel Co. Ltd, who joined the board last August. Ms. Ludwig introduced the Chamber’s annual report 2008. During the last year, the German Chamber of Commerce • Beijing organised and conducted 82 events with about 3,500 attendants in total. The Chamber was also involved in additional events organised by other partners. 57 newcomers raised the membership number to a total of 392. The financial statement presentation by Mr. Andreas Feege, KPMG Huazhen Certified Public Accountant and treasurer of the Chamber, demonstrated a surplus of RMB 129,031 for the year 2008. The attending members then proceeded to release the board members of their liability.

Ms. Ludwig concluded with a brief outline of events planned in 2009.

One highlight will be the next station of “Germany and China – moving ahead together” in Shenyang this June. Mr. Jens Stuhr, Vice Head of Project Management introduced the planned activities for the Shenyang stop of the popular “roadshow”. Event Manager Udo Hoffmann presented the programme and musical mix for the upcoming “Deutschlandpromenade”, which will again draw the crowds to the event. One of the highlights of his presentation was a video showing the recent festival activities at the previous stop in Guangzhou.

After the event speakers and attendees got the chance to network over a complimentary buffet.

Topic: General Annual Meeting of the GCC • Beijing Date: 16th April 2009 Speakers: Dr. Richard Hausmann | President & CEO, Siemens Ltd. China and Chairman of the Board of Directors GCC • Beijing; Dr. Niklas Schaffmeister | Vice President Asia Pacific, BBDO Consulting; Mr. Jens Stuhr | Project Manager, Germany – Land of Ideas; Mr. Udo Hoffmann | Event Manager, Germany and China – Moving ahead together

June - July 2009 | 24

The German Chamber of Commerce in China

Beijing - Chamber Events

Dressed for Success Young Professionals Networking

Mr. Joachim Rosenberg pointing out the right direction

The evening at the SAS Radisson Hotel, titled “China Career Essentials”, was moderated by Brigitte Neumann, Head of Marketing, Internet and Training of the Delegation of German Industry and Commerce in Beijing (GIC), and attracted a large and information-hungry crowd.

The majority of attendees fitted the Young Professionals profile (age 25-35 and currently employed or interning). Three speakers touched upon a well-chosen range of subjects that was sure to gain everyone’s attention. Jasmine Keel of Inspired career support services kicked off the evening with her presentation on entrepreneurship versus employment. Jens Purup Krog of recruiter Access People provided hands-on practical tools for creating striking CVs and approaching employers in such a way that applications have a higher chance of being recognised. The special guest of the evening, Volvo China’s President Mr. Joachim Rosenberg, took the crowd by storm. After a brief introduction of his work and career stages, he set out to face the numerous and varied questions from the audience.

www.china.ahk.de

In response to the great success of this first Young Professionals event, the GCC • Beijing will launch a Young Professionals Group and continue to run events targeted at these high potentials. The longterm goal is to create a platform for the exchange of developments in the job market for foreign local hires, and to get them onto the hiring radar of foreign companies in Beijing. This new event series is the continuation and logical next step of the GIC’s training courses targeted at this special group of international candidates in Beijing.

Please visit the training section of our website for further information on these programmes.

Topic: Young Professionals Networking Evening – China Career Essentials Date: 22nd April 2009 Speakers: Jasmine Keel | Founder, Inspired - Life and Career Transition Support Services; Jens Purup Krog | Founder & Managing Director, Access People Executive Search Services; Joachim Rosenberg | President, Volvo (China) Investment Co. Ltd, President of Volvo Group Asia Truck Operations (ATO)

25 | June - July 2009

Chamber Events

A double premiere for the German Chamber of Commerce • Beijing: Its first Young Professionals Evening and the first event jointly organised with two Scandinavian Chambers. GCC • Beijing joined forces with the Swedish Young Professionals of the Swedish Chamber of Commerce, and the Danish Chamber of Commerce in China.

Attendees and speakers discussed the essentials of a China Career

Chamber Events - Beijing

The German Chamber of Commerce in China

Maintenance and Retrofitting More Than Just a Niche Construction Roundtable

“In China whole buildings are demolished or redeveloped after an estimated lifecycle of only 15 to 25 years.” Karsten Obst of GSN Property Services in Beijing opened the first 2009 edition of the Construction Roundtable with a symptomatic statement, adding that “this period equals the average lifetime of a single boiler in Germany.”

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Hearing these rather drastic remarks, the audience listened carefully to the following overview on today’s most common construction failures in China. Mr. Obst explained how financial savings during the planning process could eventually lead to even bigger creeping losses after the structure had been completed. He also gave insights into a growing market for long-term facility management in China. He concluded that Chinese investors increasingly recognise the need for sustainable building and that there is a soaring interest in the advantages of this industry.

ventilation systems and fire prevention measures for the first time in China. According to Mr. Xu, the Chinese retrofitting market is likely to exceed RMB 875bn in volume and guarantee employment of up to 1mn people over the next ten years.

After the two presentations guests enjoyed ‘Currywurst’ and other German delicacies at the Wirtshaus am See and continued to discuss current affairs of the construction industry.

Topic: Building operation and refurbishment Date: 1st April 2009 Speakers: Dipl.-Ing. Karsten Obst | General Manager Beijing, GSN Property Services; Mr. Xu Zhiyong | Project Director, Energy Efficiency in Existing Buildings (EEEB)

Following next in the speaker line-up, Mr. Xu Zhiyong, Project Director of GTZ (German Society for Technical Cooperation) shared his experience of working with the SinoGerman technical cooperation project Energy Efficiency in Existing Buildings (EEEB). Mr. Xu has been leading the EEEB since its foundation in 2005. The five-year project focuses on retrofitting residential houses, which – besides the actual improvement of the buildings – is used for research and study of enhanced future measures.

The first pilot project was carried out in Tangshan in 2006. After successful retrofitting and modernisation of the heating system of three buildings, communes in Beijing, Tianjin, Hebi and Urumqi also joined the undertaking. The second pilot project on an 18-storey residential building in Beijing demonstrated the use of new

Mr. Xu Zhiyong: “We are faced with a great challenge”

Classification and Valuation Made Simple Tianjin Chamber Dinner Customs

In light of the wide variety of goods coming into China and the high cumulative import charges, proper customs valuation and VAT are important issues. Classification and appraisement are the two most important factors affecting a company’s dutiable status.

Ms. Su Nan from the Beijing Customs Valuation Branch, introduced the customs valuation rules and methods, followed by an overview of the six General Rules of Interpretation (GRI) provided by Mr. Xiao from the Tianjin Customs office. Rules 1-4 are related and must be applied in sequence, whereas rules 5 and 6 stand on their own and are to be applied as needed. How to interpret the tariff and properly determine a product’s classification was the primary question at heart of the audience.

Mr. Jiang Zhaokang from Sandler, Travis & Rosenberg then examined June - July 2009 | 26

general customs compliance and IPR border enforcement. China Customs has established an integrated IPR enforcement system including declaration-checking, field examination of imports or exports, punishment of violating importers or exporters and disposing of infringing goods. Over dinner, Mr. Jiang vividly discussed with the other guests how to use the system to better protect the intellectual property rights of their companies.

Topic: Customs classification, valuation and IPR border enforcement Date: 24th March 2009 Speakers: Mr. Jiang Zhaokang | Partner, Sandler, Travis & Rosenberg; Mr. Xiao Xuquan | Deputy Director for Classification, Tianjin Customs; Ms. Su Nan | Section Chief, Beijing Customs Valuation Branch Chair: Ms. Claudia Barkowsky | Regional Manager North China, GCC • Beijing

The German Chamber of Commerce in China

Beijing - Chamber Events

Chamber Events

www.china.ahk.de

27 | June - July 2009

Chamber Events - Beijing

The German Chamber of Commerce in China

Gain Control over Your Risks

Starring: William Valentino

Tianjin Chamber Dinner

Kammerstammtisch

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Speaker Frank Mei

In business, risk control and risk management are crucial tools to identify and mitigate uncertainty. The current economic crisis that has virtually affected all industries and geographies makes us realise once more that the quality of preparation is the key to success or failure.

Presenting the results of the 2009 Ernst & Young Business Risk Report, Frank Mei discussed various approaches to risk management. The annually released study of the global firm is based on interviews with more than 100 industry commentators and analysts from eleven different sectors.

Among the top ten strategic business risks that have been detected are aging population, emerging markets, energy shocks and shifts in consumer demand. Besides this, every industry and company has to identify, assess and prioritise their respective risks to achieve its business objectives. Key risks in emerging markets – seen from a developed market perspective – are changes in the political environment, currency and compliance (laws & regulations).

Mr. Mei concluded his speech with some parting advice: “Keep an open mind about where risks can come from! With better risk management one can avoid surprises, better govern the enterprise, make decisions faster and become more efficient.”

Topic: Seminar Operational & Financial Risk Control Date: 18th March 2009 Speaker: Frank Mei | Partner, Business Risk Services, Ernst & Young

Once again in March, the Paulaner Bräuhaus hosted GCC • Beijing’s informal member gathering. The monthly occasion provides a great opportunity to meet people who share their interest in the German community – and in building up new business contacts as well. As such, Kammerstammtisch has conquered its righteous place in Beijing’s event schedule. This time the number Mr. William Valentino of attendants reached previously unknown levels. And for a good reason: William Valentino, Member of the Board of GCC • Beijing and Vice President CSR Greater China for Bayer, paid his visit.

Along with various subjects the prominent guest told ‘the audience’ some anecdotes about his past in the USA and how he made his way to the Chinese capital 22 years ago. Being the first locally based expat for Bayer in China, Mr. Valentino is fluent in Chinese – besides Italian, English and German. Hence, Mr. Valentino had neither problems in communicating with any cultures present at the table nor answering any inquiries in the questioner’s mother tongue. Since quite a few people came especially to meet Mr. Valentino, the conversation quickly turned to his specialty: a wide range of Corporate Social Responsibility topics and most notably recent efforts in fighting HIV/AIDS in China.

In response to the remarkable feedback on the opportunity to meet with the Board, the German Chamber • Beijing endeavours to ensure the presence of at least one Board Member at every future Kammerstammtisch.

Topic: Kammerstammtisch Date: 16th March 2009; held every third Monday of the month, 7.00pm Venue: Paulaner Bräuhaus, Lufthansa Center

Minimising Loss when Payment is at Risk Joint-Chamber Seminar

Once again, Coface presented their findings in a joint-chamber event at Beijing’s Shangri-La Kerry Centre Hotel. Mr. Benjamin Gan gave an overview of the global financial crisis and its impact on enterprises in China and analysed the current status of corporate payment behaviour in China. He provided a detailed sector-specific risk analysis for the chemical, pharmaceutical, IT, textile and steel industries. Mr. Gan then set out to advise on risk mitigation strategies, such as establishing an appropriate credit management process, obtaining information for customer evaluation and setting payment terms. He identified useful credit management tools as beneficial to minimising delays in corporate payment behaviour.

The breakfast event was jointly held by the German Chamber of Commerce, the French Chamber, BenCham, SwissCham Beijing and AmCham-China. This multi-chamber set up made for a unique and June - July 2009 | 28

varied member mix that was eager to discuss and share thoughts and opinions on the current financial climate.

Topic: Credit Crisis and Corporate Credit Risk Management in China Date: 1st April 2009 Speaker: Mr. Benjamin Gan | Deputy Regional Manager, Risk, Greater China, Coface Mr. Benjamin Gan

The German Chamber of Commerce in China

Beijing - Chamber Events

Tools to Tell Gold from Brass HR Seminar

Back in January, Hewitt Associates had presented last year’s Hewitt Expat Salary study on the premises of the German Chamber of Commerce • Beijing. To ensure a more thorough coverage of the topic, the Chamber reacted to a wide range of requests from its members and was poised to provide additional information about Chinese employees in international companies. The result was this new seminar targeted at German HR executives planning to hire Chinese Executives.

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Brigitte Neumann, Head of Marketing, Internet and Training of the Delegation of German Industry and Commerce, introduced the speakers of the evening – Artur Haenn, Director of PCI Consultants and Dirk Meissner, Chief Representative of MCon. Both gentlemen shared insightful knowledge about recruiting Chinese employees at the executive level, both from the recruiter’s and the employer’s perspective.

The speakers introduced useful tools for verifying data in CVs and gave examples of how best results in the recruitment process can be achieved.

But how to find the ideal candidate in the midst of returned scholars, university graduates and long term professionals? What are the tools to determine what is gold and what is brass? Excellent Chinese candidates can be found, but the right tools for identifying them must be applied, said Mr. Haenn and introduced some of the strategies most likely to yield results in the recruitment process.

Dirk Meissner presented his way of selecting the right staff members

Too much emphasis on language skill and CVs that impress with overseas postings sometimes obscure the vision when looking for that perfect candidate. While these aspects are important, specific knowledge of the job position sometimes gets neglected in favour of language skill. The challenge may not so much be a lack of appropriate candidates from Mainland China, but to a certain extent the missing capacity of HR departments of SMEs operating in China in scanning the market for appropriate candidates on a day to day basis. Here Mr. Meissner identified a competitive difference: Constant monitoring of the job market and a massive mobilisation of resources to identify that perfect candidate had been essential for MCon’s growth over the past years.

The event ended with an animated discussion among the audience that touched upon many more aspects of recruiting staff in China.

Topic: Recruiting von chinesischen Führungskräften: Entscheidungskriterien für nachhaltigen Erfolg Date: 19th March 2009 Speakers: Artur Haenn | Director, PCI China Executive Search Consultants; Dirk Meissner | Chief Representative, MCon China Ltd. www.china.ahk.de

29 | June - July 2009

Chamber Events - South China An Employer’s Nightmare – the New Labour Contract Law Joint-Chamber Seminar Guangzhou

Chamber Events

It seems to be a lateb re a k i ng t o p ic : T he seminar on termination and downsizing of employment contracts, jointly organised by the British, German, Italian and Spanish Chamber of Commerce, attracted a large number of participants.

Jeremy Sargent (Managing Partner, JS Associates)

Speaker Mr. Jeremy Sargent of JS Associates provided information on the new labour contract law, which has raised many questions in HR departments of domestic as well as international companies across China. Aimed at preventing large scale lay-offs during times of economic crisis, the central government has introduced challenges to the termination or downsizing of employees. As a result, human resources managers must now make allowances for some added tedious procedures, when planning redundancies. The increasing number of labour disputes gives proof to this. Mr. Sargent stated that nearly 90% of the claims are lost by employers, usually not due to wrong facts but incomplete evidence. In order to avoid complications in the future and refute the claim, gathering proper evidence and setting up robust arguments are key.

The new contract law awards more rights to employees, but is at the same time very controversial and unclear in its implementation.

When it comes to a dispute in court, the burden of proof lies with the employer, not the employee. The speaker also stressed that only duly signed contracts and lawful reasons can prevent later disputes. As many expatriates attended the seminar, Mr. Sargent also pointed out that the new labour contract law is fully applicable to foreign nationals with local contracts as well.

Event: Termination and Downsizing of Employment Contracts – The Legal Issues Employers are Facing Today Date: 11th March 2009 Speaker: Mr. Jeremy Sargent | Managing Partner, JS Associates Guangzhou Office

The German Chamber of Commerce in China

Growing Strength and Space in Guangzhou GCC/GIC Office Extension Celebration

Flowers with greeting cards at the front door, waiters in uniforms and a splendid buffet revealed that the German Chamber of Commerce • South China had an occasion to celebrate: The opening of the new office premises for the German Industry & Commerce Co. Ltd. Guangzhou Branch.

The GIC had outgrown its former office one floor below the GCC and has now taken up its new location right next to the Chamber office on the 29th floor of Metro Plaza. Further to the enhanced communication with the colleagues from GCC, the new setting provides considerably more space for the staff, future office-in-office solutions and a second meeting room. Ms. Alexandra Voss, Delegate & Chief Representative of GIC Guangzhou welcomed the guests and opened the doors for a tour through the new premises. Enjoying the wine and buffet, the visitors soon filled the new rooms with their chats and laughter.

B&B Leiterplattenservice experienced a special h o n o u r, w h e n i t w a s named the 200th member of the German Chamber of Commerce in Guangzhou – a true milestone in membership development for the youngest of the three GCC chapters in China Board members Dirk Soete (left), Renate Tietjen (2 left), Nico Beilharz (right), Alexandra Voss (2 right) that started operating awarding Robin Guo (centre), Chief Representative of B&B independently in 2006. Leiterplattenservice As special guests of the evening, German Consul General Mr. Eberhard Schuppius and Mr. Li Sanjian, Vice President of the China Council for the Promotion of International Trade (CCPIT) Guangzhou, attended the celebration. GCC board members Ms. Renate Tietjen, Mr. Nico Beilharz and Mr. Dirk Soete mingled with the crowd and exchanged opinions on current business development. The successful evening and the office opening ceremony in Shenzhen one month later (see Chamber Notices and Around Town), both gave testament to the steady growth of the German Chamber of Commerce • South China. nd

nd

Topic: Office Extension Celebration Date: 9th April 2009 Venue: GCC/GIC Office in Guangzhou

New Regulations in Battery Safety Control Joint-Chamber Seminar Guangzhou

A battery explosion is no longer something new for the public.

It could cause not only property damage but also personal injury or even loss of life. As the number of battery accidents is increasing rapidly, new regulations have been released to control the quality of batteries in the US and European market. In cooperation with the German and American Chambers of Commerce, June - July 2009 | 30

TÜV SÜD China hosted a half-day seminar providing necessary information with regard to these new requirements. Mr. Lei Song and Ms. Alice Dai introduced key issues, the test of IEC 62133 and the CTIA battery certification programme in full detail.

Topic: Battery Safety and CTIA (Cellular Telecommunications and Internet Association) Certification Seminar Date: 13th March 2009 Speakers: Mr. Lei Song | Project Manager, TÜV SÜD China; Ms. Alice Dai | Department Manager, TÜV SÜD China, Guangzhou Branch

The German Chamber of Commerce in China

Right-Sizing Your Business First Legal Roundtable Guangzhou

Speakers Wilson Ng, Richard Grams, Daniel Berger (left to right) and moderator Regina Wang

In light of the current economic situation, members had asked for detailed information on how to right-size a company during strenuous times. To offer a holistic view on a complex topic, the GCC had invited three speakers from consulting, legal and industrial companies Mr. Holger Kunz and Mr. Yushun Wong, Manto speak about the threats and aging Directors TÜV Rheinland (left to right) opportunities of restructuring a business. Mr. Daniel Berger of Euro Asia Consulting focused on the efficiency of optimisation programmes to reduce costs. Using case studies he gave examples of how to gain quick wins with both short and long-term measures and consolidation.

Having consulted a number of German companies in China over the past, Mr. Berger was able to provide useful advice and specific answers to the questions from the floor.

Leveraging IT in Manufacturing Joint-Chamber Seminar Shenzhen

Having real-time information about the status of the production processes can improve responsiveness and decision making at all levels – from shop to management. Mr. Sven O. Rimmelspacher of Pickert & Partner provided his expertise on how companies can utilise advancements in IT for their production, and what further technologies can they expect in the future.

The speaker stressed some of the concerns that companies should keep in mind in order to gain value from the advantages. Implementing IT into manufacturing can be done at various degrees, but always requires the management’s commitment in order to be effective. Benefits from technological advantages will not kick in over night. The implementation requires detailed planning and a persistent tracking of continuous improvement processes.

After the presentation all attendees engaged in a vivid discussion and benchmarked their experience with IT systems – or the lack of such systems – in their different kinds of operations. The event was organised in cooperation with the French Chamber of Commerce at the Kempinski Hotel Shenzhen.

Topic: The Real-time Enterprise – Managing Manufacturing with IT Date: 19th April 2009 Speaker: Sven O. Rimmelspacher | Managing Director, Pickert & Partner GmbH

Mr. Richard Grams of Stephenson, Harwood & Lo discussed alternatives to downsizing and staff terminations, but also gave useful hints on how to handle severance payments and arbitration claims. He brought along his client, Mr. Wilson Ng of Guangzhou Sheng Hui Chemical, who then shared his experience on reasons for and how to handle downsizing. The lessons learnt by the industry representative led to a lively Q&A session that went on for one hour - more than a good reason to organise further Legal Roundtables in South China.

Event: Legal Roundtable: Right-sizing your China Business – How to avoid the pitfalls and do it right Date: 15th April 2009 Speakers: Mr. Daniel Berger | Principal, EAC - Euro Asia Consulting; Mr. Richard Grams | Head of China Practice, Stephenson, Harwood & Lo; Mr. Wilson Ng | Executive Director, Guangzhou Sheng Hui Chemical Co. Ltd. Chair: Ms. Regina Wang | Project Manager Investment and Legal Consultation, German Industry & Commerce Guangzhou Branch www.china.ahk.de

31 | June - July 2009

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The German Chamber of Commerce • South China launched its first Legal Roundtable at one of its yearly sponsors, The Garden Hotel in Guangzhou. The positive feedback of speakers and participants encouraged the team to further focus on legal topics affecting German companies doing business in China. The GCC will organise this event series in different cities in South China on a regular basis, moderated

by Ms. Regina Wang, Project Manager Investment and Legal Consultation of the German Industry & Commerce Guangzhou Branch.

South China - Chamber Events

Chamber Events - Shanghai

The German Chamber of Commerce in China

Germany and China: A Programme and a Corporate Success Story Chamber Meeting March

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Speaker Mr. Michael König (Bayer)

Almost 180 chamber members and guests of GCC • Shanghai gathered to spend the evening together at the Grand Hyatt Shanghai. After Ambassador Röhr’s status report on the event series “Germany and China – Moving Ahead Together”, the dinner speech was all about the successful history and promising future of Bayer in the Chinese market.

Chairman of the evening, Mr. Ulrich Mäder, greeted the audience and the guests of honour, before the floor was opened for new chamber members and first-time meeting participants to introduce themselves to the community.

Speaker Mr. Wolfgang Röhr (German Ambassador) and Moderator Mr. Ulrich Mäder (Chairman of the Board, Polymax) (left to right)

to date outside of its German headquarters.

Furthermore Bayer is about to establish a research and development centre in Beijing as one of its global innovation bases for new pharmaceuticals.

The Chinese market has meanwhile become the third biggest market overall for Bayer worldwide and the company now sells almost its full product range in China. In 2008 Bayer Ltd. has advanced to the biggest healthcare company in the country. The group has the vision to reinforce its market position in China, making it Bayer’s number one global market in the not too distant future.

Ambassador Dr. Wolfgang Röhr, formerly Consul General to Shanghai, introduced the project “Deutschland und China – Gemeinsam in Bewegung”, a joint initiative of the two countries with the aim of deepening the bilateral cooperation and cultural understanding and stressing the good picture of Germany in China. The series of events began in August 2007 in Beijing and has toured around China ever since, with the next stations in 2009 to be Shenyang and Wuhan.

The three year programme will culminate in the Shanghai World Expo in 2010.

Mr. König did not fail to mention also some difficulties of operating in China, most notably the human resources situation.

The challenges here arise from the different cultural background, the young age of employees and the resulting lack of experience among many local employees. Speaking of the predicted outcome and affects of the economic crisis on his company, Mr. König noted that the shrinking consumer markets and the struggling automotive industry have also affected Bayer’s sales figures for the last quarter of 2008. Nevertheless, Bayer remains confident about the future and the great potential that China holds.

As the keynote speaker of the evening, Mr. Michael König, General Manager of Bayer China and Bayer MaterialScience China, reviewed the German chemical giant’s successful China history, which dates back more than 100 years.

After a round of questions and announcements, the evening ended harmoniously over engaging table talks among old friends and new acquaintances.

The company began its business in China in 1882 with the sale of textile colorants and established its first trading company at the beginning of the 20th century. Since the early 1990’s Bayer further expanded its business in China. The construction of the Bayer MaterialScience production site in Shanghai represents the biggest investment of the company June - July 2009 | 32

Dr. Wolfgang Röhr (German Ambassador), Dr. Hans Orth (CDHAW Tongji University) and Ms. Heidi Orth (left to right)

Topic: 100 Jahre Erfolg in China – auch in der Krise Date: 26th March 2009 Speaker: Mr. Michael König | General Manager, Bayer (China) Ltd, Bayer MaterialScience China Chair: Mr. Ulrich Mäder | Board Member, GCC • Shanghai & Chairman of the Board, POLYMAX (Shanghai) Trading Co. Ltd.

Mr. Wolfgang Uhrmann (Keller Lufttechnik) and Dr. Siegfried Beichter (Würth) (left to right)

Mr. William Keller (Keller Pharma Consultancy), Mr. Andreas Muessle (Coperion) and Mr. Ludger Kornfeld (Boehringer Ingelheim) (left to right)

Mr. Guenter Weckerlein, Mr.Zhong Hong (IDS Scheer) and Mr. Manfred Kiekenbeck (Freudenberg) (left to right)

Mr. Klaus Ulrich (Deutsche Bank) and Mr. Ralf-Roman Rietz (left to right)

Mr. Michael Schmid-Lindenmayer (Putzmeister Machinery), Mr. Peter Kruse (DCGS) and Mr. Stefan Peter Göhmann (Commerzbank) (left to right)

Shanghai - Chamber Events

The German Chamber of Commerce in China

From Bookkeeper to Management Consultant Workshop Controlling

of the World Trade Organization, the competition has tightened, increasing the need for better controlling and accounting.

Mr. Ralph Dreher (PwC), Mr. Peter Katzenstein and Mr. Bernd Pichler (Both SAIC-Volkswagen Sales) (left to right)

Many in the Chinese business sphere still do not regard the controller as a strategic function but as a merely operational one. Finding good controllers in China is therefore difficult. Over 30 years back, western influences in China, such as controlling, were still totally rejected. All profits and losses were covered by the government. Over time China recognised the need for accounting and during the economic boom a better resource allocation became necessary. Since China is a member

www.china.ahk.de

Topic: Stand des Controlling aus Sicht eines Praktikers – Controlling in China Date: 4th March 2009 Speaker: Mr. Bernd Pichler | Director Sales Finances & Sales Controlling, SAIC-Volkswagen Sales Co. Ltd. Chair: Mr. Ralph Dreher | Manager, PricewaterhouseCoopers

33 | June - July 2009

Chamber Events

The role of the controller has witnessed a dramatic change of perception. What was once dismissed as a ‘nitpicker’ function has become a highly sought-after corporate role with significant responsibility. In times of economic crises, finance experts are frequently the preferred choice for seats on the board of directors.

Chinese and western companies have still a very different appreciation of standards, such as management methods, accounting principles and cost calculations.

These differences can cause huge problems for controlling in joint ventures. Another major problem in this regard in China is the lack of qualified professionals. A future vision for China should be the optimisation of the whole value chain through an increased focus on profitability, solvency and communication. In line with this, a stronger controlling function will be able to better consult top management and support companies to use their resources more efficiently.

Chamber Events - Shanghai

The German Chamber of Commerce in China

China’s Road to 2050: A Precise Analysis Chamber Meeting April

Chamber Events

Dr. Zheng Han (Haniel), Mr. Karl-Heinz Tenne (Abendbrot) and Ms. Nina Jurascheck (HRO Consulting) (left to right)

Mr. John Chachamopoulos (Wilhelmsen Marine Consultants) and Ms. Qian Yue (Gea) (left to right)

A strong speaker and a highly relevant theme drew 220 members and guests to the GCC • Shanghai’s monthly Chamber Meeting, held again at the Hilton Hotel in Puxi. Chairman of the evening, Mr. Elmar Weitzel, welcomed the audience and the particularly strong turnout of 25 new – and not so new – comers, who got the chance to introduce themselves to the assembled community.

A strong community lives of the support and loyality of its members.

In this context Mr. Weitzel bid farewell to Mr. Gundolf Müssig of Ingenics and his wife Edith, who both supported the Chamber through their regular presence and contributions during their six year term in Shanghai that is now coming to an end as the couple moves back to Germany.

Originally from Germany, but having lived and worked in China for the past 20 years, Mr. Jörg Wuttke, the President of the European Union Chamber of Commerce next delivered his dinner speech. As a first-hand witness of two thirds of the country’s opening and reform years, Wuttke provided a very topical and outspoken account of the current status and outlook for China until 2050.

Few people were aware of the fact, that the signals of the current crisis have reached China much earlier than even the USA. The Chinese economic growth had started to slow already in December of 2007 from 12% down to the current 7%. The Chinese Government has clearly responded with its RMB 4tn stimulus package. It remains to be seen however, whether the continued focus on infrastructure investment and build-up of capacity will bring relief to the slowing economy.

The speaker stressed China’s weak and slowing private consumption as a particular area of concern. This, together with growing overcapacities, a poor industry utilisation and dropping exports will leave China sitting on its unsold products. Stronger focus should thus go into the stimulation of private consumption through increased spending in education, healthcare and smart technologies. This needs to go in line

Mr. Gundolf Müssig (Ingenics), Ms. Edith Müssig (Ingenics) and Mr. Elmar Weitzel (Bosch) (left to right)

June - July 2009 | 34

Speaker of the evening Mr. Jörg Wuttke (BASF)

with a stronger political will to shut down factories and avoid the construction of new ones. Many global industries have already responded with these harsh measures. A hindrance to taking this necessary step in China is the often strong protectionism present in the business environment. Wuttke stressed that this is primarily a domestic issue between individual provinces, rather than a concerted effort to shut out foreign investors.

Taking these measures would help prepare China well for its undisputed future role as the single largest contributor to the global economy, one that it had already held at the beginning of the 19th century. In 2020, Asia will become the worlds manufacturing hub with China having overtaken Japan in terms of industrial production. Looking further ahead until 2050, China will no longer have the largest population with 1.6bn Indians. Rapidly aging demographics however will lead to the situation of Chinese getting old before becoming rich. Continued fast urbanisation will mean that by 2025, two thirds of the Chinese population will live in cities, an impressive 15% of the mankind. Developing China into a service-focused, rather than a processing-driven economy will therefore become even more crucial to secure enough employment for its growing cities.

Many consenting nods, captivated faces and targeted questions from the floor implied that the speaker’s analysis had struck a chord with the audience. Engaged conversations and networking continued until midnight. The full presentation can be downloaded from the member’s area of the Chamber’s website.

Topic: Herausforderungen für die europäische Wirtschaft in China Date: 23rd April 2009 Speaker: Mr. Jörg Wuttke | President, European Union Chamber of Commerce in China; Chief Representative, BASF (China) Company Ltd. Chair: Mr. Elmar Weitzel | Executive Vice President & Chief Financial Officer, Bosch (China) Investment Ltd.

Three guests at the Chamber Meeting

Ms. Nancy Yu (Barlow Lyde & Gilbert) and Mr. Daniel Mohr (Plumento) (left to right)

The German Chamber of Commerce in China

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YEARLY SPONSORS 2009/2010

www.china.ahk.de

35 | June - July 2009

Chamber Events - Shanghai A Market of Opportunities

Restructure or Exit a JV?

In co-operation with the German Chamber of Commerce and Watson Wyatt, the German Centre Shanghai again hosted its annual Job Fair – and over 1,000 participants followed the call.

Two days packed with programme, 33 German companies exhibiting and over 120 jobs posted draw an impressive balance for an event that took place in an undoubtedly difficult economic environment.

The global financial crisis has put a lot of distress also on joint venture companies in China. Best practice of how to restructure or exit a business under these circumstances have formed the theme of a recent workshop by GCC • Shanghai.

3rd Sino-German Job Fair

Chamber Events

The German Chamber of Commerce in China

In welcoming the students on the first day, German Centre’s Matthias Müller encouraged the young graduates to make the most of this opportunity to shine in front of potential employers. With three partnering universities this year (Sino-German College of Tongji University, Shanghai-Hamburg College and East China University of Science and Technology) the level of skilled students with German as part of their curriculum was particularly strong. Vice-Consul Mr. Henning Hansen from the Consulate General in Shanghai underlined also the opportunity for businesses to tap into the pool of ever-growing and ambitious local talents choosing to pursue study areas with a German angle.

He was particularly impressed by the high turnout of participating companies at the fair, which he saw as a clear indication that German businesses consciously drive ahead their China strategy. “Don’t be shy, inform yourself well and use this market of opportunities”, was his advice to the students among the audience.

Feedback from the exhibitors has been very positive and some have already expressed their intention to participate in the 4th Job Fair in 2010.

Topic: China HR Tomorrow – 3rd Sino-German Job Fair Date: 26th–27th March 2009

Workshop Tax, Finance & Law

According to Mr. Senff of SJ Berwin, a company must first work out its due diligence and analyse which role the local government, customers and banks play in its business, before a decision can be made on whether to exit or continue the joint venture. The management must follow a clear plan on how to negotiate with the Chinese partner. Sellout, liquidation, bankruptcy and go away are the available exit strategies, whereas the JV can be continued through buy-out, change in management and dry-out.

Mr. Jiang from Deloitte followed in explaining the affects of the new enterprise income tax law. With regard to restructurings, the reorganisation Mr. Alexander Prautzsch (Ernst & Young), Mr. transaction can be categorised Helmut Rojas (Magneti Marelli) and Ms. Ute as an asset and equity deal.

Stadelmann (Magneti Marelli) (left to right) The existing holding structure and operation model of Chinese operations should be reviewed to figure out possible tax planning opportunities. Restructuring activities should be screened for tax-saving potential. Carefully evaluating the tax costs in different restructuring scenarios under the new rules and assessing the various legal and practical constructions available will help to identify the most promising restructuring plan.

Topic: Navigating the Crisis – Restructuring of Joint Ventures in China Date: 3rd March 2009 Speakers: Mr. Philipp Senff | German Attorney-at-Law, SJ Berwin LLP; Mr. Lynch Jiang | Tax and Business Advisory Services, Deloitte Chair: Mr. Titus von dem Bongart | Partner and Head, Ernst & Young Hua Ming-German Business Center

Tag, Trace, Optimise – News for Supply Chain Managers Workshop IT

Mr. Jörg Heil (hartung:consult), Mr. Dieter Hahn (T-Systems) and Mr. Jan Schmidt (ZF) (left to right)

June - July 2009 | 36

Radio Frequency Identification (RFID) is an IT system mainly used to trace and track goods, especially in the logistics, warehousing and asset management sector. The main advantages are the support of transparency, the optimisation of processes and the saving of costs throughout the supply chain. The transmission of the data is done via WLAN, GPRS or UMTS using different RFID tags. Depending on the tags, localising them can vary in range from 10 to 500 meters.

Different tags for various appli-

cation areas can take into account the temperature or humidity of the operating environment.

Companies using RFID are for example logistics service providers, which need to ship traceable containers. Frankfurt Main Airport uses the radio tagging system to bill the transport usage of companies inside the airport, while Gerry Weber deploys the tool for in-store communication, analysis, security and asset management. Possible future RFID solutions can include in-store systems as sales tools, which tag products chosen by customers and present them with matching pieces and accessories on a screen.

Topic: RFID and Auto ID Solutions – Applications in Retail, Logistics and Industry Date: 1st April 2009 Speaker: Mr. Dieter Hahn | Head of RFID/AutoID Solutions, T-Systems Chair: Mr. Jörg Heil | General Manager, hartung:consult

The German Chamber of Commerce in China

Shanghai - Chamber Events

Building a Business on Skills and Experience Workshop Marketing & Sales

Irrespective of one’s location, everyone can make use of his or her skills, hobbies and passions and turn them into an income. The speaker of the evening, Dr. Yohn, moved to Mexico in 2007 together with her husband.

Enjoying its new life a lot, the couple now encourages others to make the same step and turn one’s life experience into an income abroad.

Speaker Debi Yohn (second from right) and Moderator Brigitte Wolff (middle) with Workshop participants

Chamber Events

There is a wide range of job opportunities in areas as diverse as consulting, writing, photography, research, sales agent or real estate services. An easy way to get started is by using online networks that offer all levels of opportunities for earning a global income. Forming such a membership platform can also be a good opportunity to make a living out of your interests and experience. Dr. Yohn recommends three steps to follow: First, to abandon one’s preconceptions by thinking differently. Second, to assess one’s skills and talents and third, to take action and fulfil one’s goal.

Topic: 3 simple facts of turning your lifetime skills and interests into a lucrative and liberating income abroad Date: 31st March 2009 Speaker: Dr. Debi Yohn | Counseling Psychologist, Co-founder of BareFoot Consultants and President of CollegeWorks101.com Chair: Ms. Brigitte Wolff | Board Member, GCC • Shanghai and Managing Director & Co-owner, Management Engineers China Ltd.

Safety First Driving Training

This training organised by Matter Safe Driving with the support of GCC • Shanghai was aimed at personal drivers of company executives with the goal to convey the importance of a smooth and safe driving style.

Participants learned about the car’s technology, such as its ventilation system, and the proper use of the rear fog light, the horn and other items of specific Chinese interest. To instill the correct driving behaviour different traffic situations were discussed and later simulated in practice.

In case of an emergency braking, for example, drivers learned how to react when a blocked wheel cannot be steered. Difficult driving conditions such as aquaplaning were also subject of the training.

Topic: Safety First – Drivers Safety Driving Training Date: 17th of March 2009 Venue: Matter Safe Driving training location, Jiading District, Shanghai www.china.ahk.de

37 | June - July 2009

The German Chamber of Commerce in China

A Bridge to China

Breakfast Meeting with Delegation of Atlantik-Brücke Mr. Manfred Rothgänger (GCC Shanghai), Dr. Walther Leisler Kiep (former Finance Minister of Lower Saxony) and Mr. Arved von zur Mühlen (Lufthansa) (left to right)

Temporary Managers for Quick Results Workshop Human Resources

IMS (Interim Management Solution) provides experienced executive candidates to work on short term assignments for multinational corporations and foreign invested businesses. The company offers the service to send an appropriate manager to a requesting company to get a specific job done.

Chamber Events

IMS was founded in the 1970’s in the Netherlands due to the restrictive labour laws for permanent staff. At that time employees were protected by long notice periods and high severance pay in case of termination. Nowadays almost 30% of the working population in Europe works on an interim basis. In Asia, this solution is quite new, but ever more topical in light of the current economic downturn.

GCC • Shanghai recently welcomed the delegation of the organisation Atlantik-Bruecke (“Atlantic Bridge”) during its sixth annual study trip to China. Led by former Finance Minister of Lower Saxony, Dr. Walther Leisler Kiep, the delegation of members of the Deutscher Bundestag and high ranking business representatives met with the Chamber’s board of directors to discuss the effects of the global financial crisis on China and German companies investing in China.

GCC • Shanghai’s Chairman, Mr. Arved von zur Mühlen, welcomed the delegation and pointed out that, despite the financial turmoil, interest in China continues to be strong. He added that companies, who have invested in China look by far more optimistic towards the future than their counterparts in Germany. Dr. Leisler Kiep thanked for the invitation and said he was once again amazed by the pace at which the city of Shanghai continued to develop. After the breakfast, the delegation had further visits to German companies as well as meetings with university, clerical and government representatives.

Topic: Business Breakfast Date: 3rd April 2009 Speaker: Dr. Walther Leisler Kiep | Honorary Chairman and Chairman Emeritus, Atlantik-Bruecke e.V.

Mr. Frank Elzinga (IMS), Mr. Martin Geiger (IMS) and Mr. Klaus Liu (WK Intersales) (left to right)

The main reason for a company to hire an interim manager is the speed of implementation. The temporary ma na ge r s c a n s t a r t working within days and bring a new perspective to the company through their previous engagements.

Rather than taking an advisory role they are fully responsible and accountable line managers that implement and manage a business or a project.

Topic: Interim Management – Another Management approach to master challenges Date: 2nd April 2009 Speaker: Mr. Frank Elzinga | Business Development Manager, IMS Interim Management Solutions Chair: Mr. Rolf Köhler | Director Human Resources Asia, Freudenberg Management (Shanghai) Co. Ltd.

Keeping the Air Clean and Workers Healthy Workshop Environmental Protection

Physical and psychological impacts at the workplace have a proven strong affect on the ability and willingness to perform and the general wellbeing of employees. If the concentration of air pollutants exceeds the legal threshold, the employer must take the necessary measures to reduce emissions. This can be done through substitution, enclosure, ventilation, exhaustion or introduction of personal breathing protection.

An analysis of the exact type and emission nature of the air pollutant must be done before a requirement profile and the appropriate reduction technology can be identified. In installing the protective technologies, the employer does not only have to comply with EU standards, but also with local laws, technical rules and applicable trade union requirements. Approval procedures in China can largely vary depending on the authority in charge. Furthermore, to minimise the risk of blaze and explosions every company should take precautionary steps to tag June - July 2009 | 38

potential risks, such as creating fire areas, conducting regular maintenance, installing evacuation plans and training employees to become aware and alert of hazards.

Ms. Magali Menant (econet), Mr. Wolfgang Uhrmann (Keller) and Lisa Boeckh (GCiS) (left to right)

Topic: Industrielle Entstaubung und Luftreinhaltung Date: 5th March 2009 Speaker: Mr. Wolfgang Uhrmann | General Manager, Keller Lufttechnik Shanghai Chair: Ms. Magali Menant | Manager, econet china

The German Chamber of Commerce in China

A Second Time to China JV Round Table

There are many motives for returning to China for a second or third time and once again committing to a job in the People’s Republic.

Far-ranging autonomy in the decision-making process in the Chinese company subsidiary, the prospect of adventure and valuable experience due to intercultural challenges as well as the seniority principle seem to be the most convincing reasons for this kind of decision. Not to mention the often very attractive financial compensation of such assignments and the opportunity to enhance one’s personal career.

Chamber Events

Those returning to China are particularly aware that life in an emerging economy like China is subject to fast and sometimes profound change. When they compare the current circumstances with the situation during previous stays the returnees usually observe a noticeable increase in bureaucracy and a slight deterioration of the terms of labour contracts. They do also witness a constant improvement of the local infrastructure however and a raised level of qualification of labour forces in comparison to the 80s and 90s.

In a fruitful discussion the participants of the Joint Venture Round Table also exchanged their experience with regard to the particularities when working with Chinese colleagues and employees. They also talked about the best ways for executives’ families to cope with the challenge of living in a different cultural and social environment.

Topic: Ein 2. Mal China: Gründe für die Rückkehr und Erfolgsaussichten – Ein Erfahrungsaustausch Date: 16th April 2009 Speaker: Mr. Günther Strobel | Managing Director, DEKRA (Shanghai) Co. Ltd; Mr. Matthias Schmitz | Manager Planning Division (TM), Volkswagen Shanghai Chair: Mr. Emil Schlumpf | Managing Director, Ritz Instrument Transformers Shanghai Co. Ltd.

Briefing on CPPCC Shanghai Committee 2008 JV Round Table

Mr. Yuhua Wu (CPPCC)

The CPPCC (Chinese People’s Political Consultative Conference) is a united front organisation led by the Communist Party of China (CPC). Representing consultative democracy, it plays an important role in China’s political landscape. Besides the CPPCC, the National People’s Congress (NPC) is another very important institution.

The 11th Shanghai Committee of the NPC was inaugurated in January 2008 and will be renewed after five years. The CPPCC is represented in this Committee with 148 standing members. The new Committee consists of younger and highly-qualified members with stronger operational background and sector-specific expertise.

Topic: Briefing on CPPCC Shanghai Committee 2008 Date: 19th March 2009 Speaker: Mr. Yuhua Wu | Member of CPPCC Shanghai Committee 2008 Chair: Mr. Kurt Fasser | Senior Adviser, GCC • Shanghai www.china.ahk.de

39 | June - July 2009

Chamber Events - Shanghai

The German Chamber of Commerce in China

Sustainable Innovations Key for Car Producers to Survive

Chamber Events

Special Workshop Automotive Industry

With over 100 participants from near and far, this special workshop edition on the occasion of the Auto Shanghai Exhibition 2009 proved once again that China’s automotive market is high up on the Ms. Katrin Rühr (Porsche), Mr. Marcus Hoffmann Mr. Ralf Kalmbach (Roland Berger), Dr. von der Heyden (Consul General) Mr. Klaus Bräunig (German Association global strategy agenda of (Roland Berger) and Mr. Martin Knoss (UAES) (left to right) of the Automotive Industry) this industry. The speakers pointed out the impact of the financial crisis on the car sector and vival, especially in the area of alternative energy driven vehicles, so the importance of innovation and environmentally friendly technolo- Dr. Gerd Möhrke of Management Engineers. Various forecasts attribute gies. vehicles with electrical drives to have gained a global market share of 15-20% by 2020. Hence the automotive industry is making efforts There was a far-reaching consensus amongst the gathered experts to bring forward the electrification of the powertrain, concluded the that the global automotive industry is facing the biggest crisis in next speaker, Martin Knoss of Bosch UAES. Big car manufacturers and its history. A slump in car sales in the NAFTA zone, Europe, Japan their suppliers are already developing and improving hybrid technoloand Korea along with a slowing growth of the automotive markets in gies, which can be seen as a transition from conventional to electric emerging economies like China and India is giving car manufacturers vehicles. These hybrid technologies are an important step towards and their suppliers a hard time. In addition to this downturn in sales zero emissions. revenues, the weak financial market is putting additional pressure on the industry.

Topic: Special Workshop Automotive Industry – Auto Shanghai 2009 Date: 20th April 2009 According to Mr. Kalmbach of Roland Berger, actions taken should Speakers: Mr. Ralf Kalmbach | Partner & Head of Global Automotive focus on the reduction of personnel costs, purchasing costs and selec- Competence Center, Roland Berger Strategy Consultants; Dr. Gerd tive R&D costs, as well as optimisation of overheads, production Möhrke | Managing Director & Partner, Management Engineers China; plants and OEM contributions. Given the gravity of the situation, a Mr. Martin Knoss | Vice President Sales, Bosch UAES United Automoturnaround in many cases will only be possible when all these opera- tive Electronic Systems Co. Ltd. tional restructuring levers are being applied.

Chairs: Ms. Katrin Rühr | Dealer Support Manager, Porsche (China) Motors Ltd; Dr. Marcus Hoffmann | Principal, Roland Berger Strategy Looking at the long-term picture, innovation will be the key to sur- Consultants (Shanghai)

Adapting Talent Development to Local Needs Workshop Human Resources

Developing talent in China follows distinctly different requirements compared to the markets in the western world. It is a driving challenge for foreign companies in China to recruit and retain employees for sustainable business success.

The fast-growing Chinese labour market consists of many young and less than well qualified employees with little work experience and high fluctuation rates. The different Chinese working and communication culture often makes it difficult to instil western working habits.

Katrin Braun (Machwürth)

Based on the results of a survey carried out by MTI in 2008, Ms. Braun explained the differences in the requirements. In Asia it is necessary to increase the competitiveness of the company and to improve the performance for better achievement of organisational goals. In parJune - July 2009 | 40

ticular retention management must be enhanced. European companies however, have to focus more on the prompt adaptation of employee competencies on modified requirements. The improvement of quality in processes and results as well as the enhancement of staff loyalty represent further areas of focus.

Due to the knowledge-based education system in China, employers often need to train their staff in soft skills. It is necessary to develop a clear structure and interaction culture in the company by developing strategic thinking, assertiveness and conflict management. Nevertheless, the training always has to be adapted to the local culture and needs and cannot be implemented one-to-one from Europe.

Topic: Strategic Talent Development in China – Local Needs and Measures to Implement Them Date: 11th March 2009 Speaker: Ms. Katrin Braun | Managing Director China, Machwürth Team International (MTI) Chair: Mr. Rolf Köhler | Director Human Resources Asia, Freudenberg Management (Shanghai) Co. Ltd.

The German Chamber of Commerce in China

Shanghai - Chamber Events

Taicang as the First Region of Sino-German Cooperation Sino-German Economic Cooperation Forum 2009

Chamber Events

Party Secretary of the Taicang Committee, Mr. Pu Ronggao.

Mr. Martin Zeil (Bavarian Minister of Economy) and Mr Ling Ji (Vice director of European Section of National Department of Commerce) (left to right)

Over 200 guests attended a high-level forum at the German Centre in Shanghai that brought together senior Chinese and German officials, including the Bavarian Minister of Economy, Mr. Martin Zeil and Party Secretary of the Taicang Committee, Mr. Pu Ronggao.

Taicang enjoys one of the richest densities of German enterprises in China, which gave it the title as the only “Sino-German Enterprise Cooperation Basis” last December. First investments of German companies in Taicang date back to 1993. Realising the benefits of the location near Shanghai and the Yangtze River, the number of German companies in Taicang has since then risen to 130. Over the years, three particular industry groups – precision machinery, automotive spare parts and new construction materials – have formed.

The forum participants together discussed how to further deepen the cooperation in economy, culture, education and technology between China and Germany at the best practice example of Taicang. In his speech, Mr. Pu reiterated Taicang’s goal to “build the first region of Sino-Germany Cooperation.” As such, Taicang would not only strive to be a prosperous base for German SMEs and a centre of the dual-system training, but also to provide a comfortable living environment for German residents.

The forum was organised jointly by the Taicang Municipal Government, the German Centre and AHK Shanghai.

Topic: Chinesisch-Deutsches Wirtschaftsforum 2009 – Zusammenarbeit an Standorten erster Wahl am Beispiel Taicang Date: 24th April 2009 Speakers: Mr. Martin Zeil | Bavarian State Minister of Economy, Infrastructure, Transport and Technologies; Ms. Qiu Lixin | Vice Mayor of Suzhou; Mr. Pu Ronggao | Party Secretary of Taicang Committee www.china.ahk.de

41 | June - July 2009

Around Town – Beijing

GCC • Beijing’s 9th Annual General Meeting

16th April 2009 | Kempinski Hotel Beijing Lufthansa Center

This year’s Annual General Meeting attracted more than 80 participants, who got the chance to engage with the Board Members in a direct dialogue while enjoying a tasteful “after-show” buffet.

Signing the Contract…

14th April 2009 | GCC • Beijing Over the coming four years the Delegation of German Industry and Commerce • Beijing will implement a project of the SWITCH-Asia initiative of the EU in cooperation with Chinese and European partners.

This was recently inked in a signing ceremony among the partners.

…and Improving Environmental and Safety Performance st

21 April 2009 | Jianyin Hotel

The first regional launch event of the SWITCH-Asia project was held in Beijing supported by the Ministry of Industry and Information Technology, the Ministry of Environmental Protection and the Ministry of Finance in China. Over 200 Chinese enterprises and relevant associations of the electrical and electronics industry participated in the successful event.

Inter-Chamber Networking nd

Around Town – Beijing

2 April 2009 | Zeta Bar, Hilton Beijing The Inter-Chamber Networking time and again provides a great opportunity to meet members and friends of different chambers in Beijing. This time, the GCC • Beijing cooperated with the British Chamber and organised an event that attracted more than 50 networkers.

Credit Crisis and Corporate Credit Risk Management in China st 1 April 2009 | Shangri-La Kerry Centre Hotel

In a joint chamber seminar on credit crisis and credit risk management the audience gathered for a tasty breakfast and listened to Mr. Benjamin Gan from Coface, who gave an overview of the global financial situation.

Around Town – South China

Spring Networking with GCC • South China March and April 2009 | Guangzhou, Shenzhen, Zhuhai

Several networking events, organised by the Chamber, delighted the international community across South China.

Office Extension Party th

9 April 2009 | GIC/GCC Office Guanzhou Members and VIPs celebrated the office extension of the German Chamber of Commerce • South China and the German Industry & Commerce Guangzhou Branch.

Around Town – South China

Shenzhen Office Opening

7th May 2009 | Kempinski Hotel Shenzhen Sponsored by BMW, Melitta, Trolli, Shenzhen Airlines, The Executive Centre and GD Sports, the grand opening of the German Chamber of Commerce • South China office in Shenzhen was celebrated by more than 100 members, guests and officials.

All photos courtesy of Delta Bridges (www.deltabridges.com)

Around Town – Shanghai

Inter-Chamber Mixers The popular networking events took place in Shanghai and Suzhou this spring and were once again a great success.

18th March 2009 | Hyatt on the Bund

21st April 2009 | Kempinski Suzhou

2rdnd German Expat Meeting Shanghai

3 April 2009 | Le Royal Méridien Shanghai What started as a small virtual group on online social platform Xing (www. xing.com/net/shanghai-de) now counts more than 1000 German expats in Shanghai. More than 100 of them gathered for their second “offline” meeting at the 64th floor of the Shimao Building, the tallest one in Puxi. Further meetings at exciting venues are planned.

Around Town – Shanghai

Dimo’s Factory Tour

17th April 2009 | Dimo’s Taicang Jiangsu China GCC members and non-members had the opportunity to gain insight to the work of a German butcher in China and to learn how to hand-make sausages, enjoying them afterwards at the joint barbeque.

Shanghai IT Day

25th March 2009 | The Longemont Hotel

Visitors from about 50 European and Chinese IT companies followed the invitation to the 4th Shanghai IT day. After the opening keynote of Mr. Hans-Peter Bergander from Bosch about how to bridge the gap between IT and business, several speeches were delivered by some of the most experienced IT professionals in Asia.

“Let’s Twist Again” with the German Club Shanghai th 28 March 2009 | SIN Lounge

The German Club Shanghai invited members and non-members to a big charity dance party with music of the 60s. Guests enjoyed nostalgic dishes and “twisted” the night away, many of them in original costumes. Great atmosphere and memorable impressions are calling for an “encore” soon.

Art Meets Consulting

14th April 2009 | Roland Berger Office @ Kerry Center Shanghai Together with Art+ Shanghai gallery, the German strategy consultancy again hosted a cocktail reception for clients and guests, including Consul General Dr. von der Heyden. Artists Nial O’Connor and Liao Yang provided the creative backdrop with their paintings and a live performance.