ScandAsia China - June 2015

JUN 2015

China

EXPANDING THE OTHER WAY AROUND

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Coming Events

Young Swedish Midsummer Party What: SYP Shanghai: Legendary Midsummer Party Where: Terrace, Four Seasons Hotel Shanghai, 500 Weihai Road When: Jun 19 @ 19:00 – Jun 20 @ 00:00 The Swedish Young Professionals would like to invite all members for another year of our most sought-after event; the annual Swedish Midsummer Par ty!

Tickets are sold in advance at 450 RMB & at the door at 500 RMB. Ticket including: Swedish midsummer buffet, freeflow beer, wine, schnapps and other spirits. Free entry to after par ty.

Pick-up of tickets: Regular office hours (9AM-6PM) Swedish Chamber of Commerce / 中国瑞典商会 16F, Venturetech Plaza, 819 West Nanjing Road, Shanghai 上海市南京西路819号中创大厦16楼, 200041

Your FREE ScandAsia Magazine in China ScandAsia is the only magazine that covers all the Danish, Finnish, Norwegian, and Swedish residents in China.

We also publish a ScandAsia magazine in Thailand, Singapore and the rest of South East Asia.

Please sign up for your own FREE copy: www.scandasia.com Publisher : 211 Soi Prasert Manukitch 29 Prasert Manukitch Road Chorakae Bua, Lad Prao Bangkok 10230, Thailand Tel. +66 2 943 7166-8, Fax: +66 2 943 7169 E-mail: news@scandasia.com Editor-in-Chief : Gregers A.W. Møller gregers@scandmedia.com Assistant Editor: Joakim Persson Joakim@scandmedia.com Advertising : Finn Balslev finn@scandmedia.com Graphic Designer : Peerapol Meesuwan Peerapol@scandmedia.com Distribution : Wanvisa Rattanaburi wanvisa@scandmedia.com Printing : Siamprint Co., Ltd.

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Midsummer Junk in HK What:Young Professionals Hong Kong: Midsummer Junk 2015 Where: Central Pier When: Jun 21 @ 10:00 – 18:00 It’s finally time for Young Professionals’ legendary Midsummer junk!

The day will include a traditional smorgasbord (buffet) with herring, meatballs, strawberries and much more. All you need to bring for this event is your swimsuit and sunscreen.

After lunch there will be time for midsummer games and dances like kubb and “små grodorna”, as well as relaxation in the sun and swimming.

Only a limited number of seats, first come first served. Everyone is welcome, but priority will be

given to YP members.

Tickets are sold at 500 HKD (members) and 650 HKD (non-members) from Swedish Chamber of Commerce in Hong Kong Room 2503, 25/F, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong

New road from Xinjiang to Europe What: Danish Chamber of Commerce: One Belt, One Road Where: Four Seasons Hotel Shanghai, 500 Wei Hai Road, Shanghai, China 上海四季酒店，上海市威海路500号 When: Jun 18, 2015 18:30- 20:30

China has just announced its ambitious “One Belt, One Road” strategy. The land-based New Silk Road Economic Belt will run westward overland from China’s Xinjiang province through Central Asia, the Middle East and onward to Europe. The second route, the 21st-Centur y Maritime Silk Road, loops from the Chinese coastline south and westward by sea towards Europe, with proposed stops in South-east Asia, South Asia and Africa.

Both routes are ostensibly trade-driven, but infr astr ucture investment at key junctures will be funded by a combination of Chinese bilateral assistance and the newly created Asian Infrastructure Investment Bank.

What will be the impact of Chinese expansion into these new markets & will this lead to the revival of a EurAsian continent with significant increase in cross border trade?

Member’s price: 200 RMB Non-member’s price: 400 RMB

June 2015 • ScandAsia.China 3

News Brief

New Board elected for the Norwegian Chamber of Commerce, Hong Kong

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orwegian Chamber of Commerce, Hong Kong’s Annual General Meeting was held on 13 April 2015, where the following office bearers were elected or re-elected for the term of 2015-2016:

Elected: Mr. Kjartan Furset,Chairman Dr. Derek Anthony, Vice-Chairman Mr. Trygve Nøkleby Board of Director (New)

Re-elected Mr. Stig Mathisen, Board of Director Mr. Joshua Miller, Board of Director Mr. Patrick Fong, Board of Director Mr. Ove Jöraas, Board of Director Mr. Einar Straume, Treasurer The former chairman, Dr. Derek Anthony, has switched his position with the former vice-chairman, Mr. Kjartan Furset.

A token of appreciation was presented to Dr. Anthony by Mr. Furset. (Left).

Danish clothing company Bestseller’s mega donation day

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n 10 April the Danish clothing and accessories company Bestseller held its donation day, GIVE-A-DAY, where their consumers’ spending contribute to giving back to communities, including in China and the Philippines via foundations.

The donations totalled a staggering €15,014,122 to be donated to charity around the world.

“Everything our customers spent on 10 April 2015, will go to charity,” proclaimed Bestseller as they arranged their worldwide charity day across all brands and countries.

“We are really proud of the results we have generated and we have witnessed an enormous commitment from our colleagues and the customers that made it all possible,” said Corporate Communication Director Mogens Werge.

“The total amount exceeds all expectations, and we can’t wait to get the money out working for the children, we are here to support,” said Steen M. Andersen, general secretary of UNICEF Denmark, handling the global UNICEF donation to fight malaria in Angola, Kenya and DR Congo.

Half of the total donation was donated to local charity causes in the countries where Bestseller has its stores, while the other half went to major global charity causes.

Thanks to the donation, GAIN (Global Alliance for Improved Nutrition) can also contribute greatly to combatting malnutrition in India.

“The donation gives us an amazing opportunity to create a healthier future for thousands of children in India, where almost half the children suffer from chronic malnutrition,” said Charlotte Pedersen, Senior Advisor in Gain.

In China the Dream School project that ensures proper school attendance and a chance for a better future for tens of thousands of children in rural areas got support.

32 million children attend boarding schools in rural China, starting as young as 6 years old. The children’s parents have left to seek jobs in the big cities, and the schools do not provide a quality environment for young children to develop, both intellectually and physically. The Dream School project helps giving a chance for a better future for tens of thousands of children in rural China.

In the Philippines the supported Pink for Life foundation that raises funds through events and private donors to help treat patients with stage 4 ScandAsia.China • June 2015

1 and 2 breast cancer. Pink for Life provides as much as 70% discount to chemotherapy treatments.

Bestseller is a family-owned clothing and accessories company founded in Denmark in 1975 by Merete Bech Povlsen and Troels Holch Povlsen.They provide fast affordable fashion for women, men, teenagers and children and the products are available online, in branded chain stores, in multibrand and department stores.

Bestseller Fashion Group China is an independent company owned by the Holch Povlsen family and two Danish business partners in China. The group designs its own collections for more than 6,300 stores in China.

News Brief

DCCC Shanghai AGM

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he 2015 Annual General meeting of the Danish Chamber of Commerce in China Shanghai (DCCC Shanghai) was held on Banyan Tree on the Bund on 19th March 2015 where 33 individual and corporate members enjoyed a pleasant evening along with a 3-courses dinner.

“In 2014, the DCCC Shanghai held 73 events, big and small, with 1700 participants. Compared to our size, we remain to be one of the most active chambers, and we are one of the few, who managed to keep the average attendance up at a stable level. We strongly believe that this is the result that the board and secretariat continues to make great efforts in securing the quality of both, the content and the speakers,” Simon Lichtenberg told during the Chairman’s report.

After the Treasurer’s report by Niels Roed, the organization’s accounts and the budget were approved, followed by the most important part of the evening: the election of the new board. At the end of the program, Niina Sillanpää from MPS China presented the long-awaited Nordic Salary Survey in China.

According to the bylaws, a new Chairman and Vice Chairman are elected every second year. The current Vice Chairman Emil Hauch Jensen (Hohenstein Textile Testing (Shanghai) Co., Ltd.) was appointed by the consensual Board of Directors as the new Chairman, and Janus Castro Grimnitz (Royal Cargo Combined Logistics Shanghai Ltd) as the Vice Chairman.

The DCCC Shanghai had the pleasure to welcome the new board members: Rasmus Riisgaard Mor tensen (NEFAB), Francis Hoang (MPS China), Mathias Boyer (CSR Capital) and Trine Roland Westergaard (Paustian International China), as well as the new Board Representative from Young Professionals Alexander Petersen (eGISS China). And, the following members successfully run for re-election: Simon Lichtenberg (Trayton Group), Christian Overgaard (Freelancer), Niels Roed (Maersk Procurement Group), Jakob Sonnenberg, Glen Mikkelsen (DI Asia Base), Peter Kiaer (Grundfos China) and Paul Kristensen (SAS Cargo). Last, but not least, Consul General Nicolai Prytz will represent the Consulate Shanghai.

Call +352 43 88General 77 77Denmark to findinout more about our service Photographs by: Laura Li

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June 2015 • ScandAsia.China 5

News Brief

Research: Swedish companies in China popular among employees

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ew findings show that as many as 91.6% of employees working at a Swedish company in China are likely to recommend working for a Swedish company to someone else. Swedish companies in China also claim comparatively high satisfaction rates, with the average employment time standing at 5.09 years, according to the research data collected through three channels: social media (Weibo) innovation analysis, internal interviews with employees at Swedish companies in China and an external study of students and young professionals.

The Swedish Spirit of Innovation project initiated the Report Research on Swedish Business Culture in China, conducted in collaboration with leading Scandinavian brand management agency Rewir, leading European research agency Nepa and CIC, a renowned social business intelligence provider in China.

Swedish Spirit of Innovation is an initiative driven by the six companies Alfa Laval, Atlas Copco, Ericsson, IKEA, SKF and Volvo. This is the first such case of Swedish employers spearheading a large-scale business culture project in China.

The research data was collected among 2,872 participants who took part in interviews and external studies. 1,472 par ticipants were from six Swedish companies – Alfa Laval, Atlas Copco, Ericsson, IKEA, SKF and Volvo – and 1,400 were external participants aged from 21 years old to 33 years old, with 77% identified as young professionals and 20% as universities students.

According to the research, among foreign companies from Germany, France, the US, Japan and Sweden, overall employee satisfaction levels were significantly higher for Swedish employers (71%), followed by German employers (62%).

Aside the high rate of employees likely to recommend working for a Swedish company to someone else the research also looked into employee turnover and according to 1,400 samples, the average years employed at the abovementioned Swedish companies is 5.09 years.

Fur thermore , Chinese netizens show great interest in discussions about Swedish innovation. The research report analysed online discussion of the topic and the results show that demographically, China, the US and Sweden are the top three mentioned countries referenced when Chinese netizens talk about innovation.

In terms of the innovation buzz, the innovation of Sweden showed the most appreciation (38%), followed by that of the US (35%) and Japan (29%). A breakdown of innovation topics comentioned with Sweden showed that Chinese netizens mentioned most angles of creativity in life such as home design, corporate innovation and public facilities.

The Swedish Spirit of Innovation organising committee commented on the social media buzz about innovation of Sweden that Chinese netizens demonstrate an existing appreciation for Swedish innovation and some cer tain knowledge of Swedish innovation culture.

Chinese employees speak highly of Swedish

6 ScandAsia.China • June 2015

companies.These factors have paved the way for further promoting Swedish employer branding in China to continue this cause and spread the word further.

Why are Swedish companies are so popular among Chinese employees? The research initiator indicated that according to the research, Swedish business culture is highly regarded by Chinese employees. Chinese young job hunters are also coming to the same understanding, with salary alone no longer the only decisive concern.

Among 1,400 external participants, salary still plays the most important role (55.9%), however aside from salary, opportunity for advancement (40.6%), fitness (26.6%) and work environment and business culture (25.2%) are the most cited reasons for choosing a job when considering a potential working environment.

In addition, internal interviews confirm that Sweden has established a premium image among Chinese employees. Sweden scores the highest on soft values. “Approachable, environmentally friendly, friendly, honest and family oriented” are the most frequently used words to describe Sweden by Chinese employees. Likewise, “professional, respecting employees, nonhierarchical” are words used to describe the overall perception of Swedish business culture in China.

Also,the research allowed for the identification of four core values that it was found all Swedish companies share, namely “Caring”, “Creating”, “Engaging” and “Sharing”. Data shows that flat management structures, equality and mutual respect between employees and managers, open workplaces and caring for employees and their families are the most competitive advantages of Swedish companies. Such a business culture has helped to enhance employees’ sense of belonging and satisfaction.

This research was co-conducted by CIC. CIC is the first China’s leading social business intelligence provider, enabling enterprises to fully leverage the power of soc

Promoting Swedish employers Swedish Spirit of Innovation also has thirteen suppor ting organisations, all from Sweden.

The project has been engineered to promote Swedish companies’ unique and innovative business culture, ensuring that China’s younger generations have a better under standing of the distinct and attractive attributes that Swedish employers share. Beginning in 2014 and climaxing in 2015, the campaign will combine digital interactions and on-the-ground activities directed at audiences throughout China and provide a window through which they can engage with several of Sweden’s top companies operating in China.

News Brief

New action plan for the Swedish-Chinese cooperation on health

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new action plan in the field of health was signed on 21 April by Sweden’s Public Health, Medical and Sports Minister Gabriel Wikstrom, and China’s Health Minister Li Bin. The action plan allows us to deepen cooperation in areas such as combating antibiotic resistance and tobacco prevention. We also get the opportunity to collaborate on new issues such as health care digitization, control and organization,” said Gabriel Wikström.

The new Action Plan for the years 20152018, and enter the following areas: • organization and management of health

services, especially in primary care • elderly care • medical research • mental health • public health and health promotion • cancer • infection control, antibiotic resistance and hygiene • maternal care and child health.

Sweden and China have a bilateral agreement on cooperation in the field of health since 2006.

The agreement rests on three legs, and aims to promote cooperation in the private, public and academic sectors.

Public health, medical and Sports Minister Gabriel Wikstrom, with a Swedish business delegation, visited China on April 20 to 23.

Sweden’s Health Minister and Ambassador Lars Fredén. /swedeninchina.com

Photo: Kristian Pohl/Government Offices of Sweden

Through a mix of meetings with key stakeholders from national and local levels, study visits and seminars, Swedish companies had the opportunity to present their solutions and build a foundation

for future business with Chinese actors from both public and private sector. The cities visited during the trip are: Beijing, Nanjing and Shanghai.

The delegation trip was organised by Swecare and Business Sweden in cooperation with the Ministry of Social Affairs, the Swedish Embassy in Beijing and the Swedish Consulate General in Shanghai.

During the visit Gabriel Wikström had time for a Heyrobics-pass along with the staff of the Embassy of Sweden, and part of the programme also met with members of the Swedish Chamber of Commerce during a meet-and-mingle, where the minister introduced the new government as well as recent developments in Sino-Swedish relations.

Swedish Embassy Beijing and CSR Asia China study looks at the development for CSR

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he Swedish Embassy, Beijing, in collaboration with CSR Asia in China has released a comprehensive CSR study, showing an increased awareness for CSR, and that weak enforcement of legislation is the biggest obstacle to its widening.

Presentations were held during the spring for Swedish Chambers of Commerce in Beijiing and Hong Kong, where Ms. Maisoun Jabali, Head of CSR Centre and Centec at the Swedish embassy presented the result from ‘Corporate Social Responsibility Development and Trends in China’.

“It was interesting to see that the study showed an increased awareness on CSR, and that this increased awareness is primarily attributed to the openness of the market,” said Maisoun Jabali.

Approximately 82 per cent of the respondents to the study are not satisfied with the current state of CSR development in China.

The study shows that a common opinion is that there is a solid framework of both labour and environmental legislation, but it is poorly enforced. At the same time the study shows that compliance with legislations and regulations is perceived as the most important incentive for companies to implement CSR. Increasing difficulty in finding and retaining workers, labour practices is an area where the companies generally have improved the most,

much because of higher levels of compliance with labour polices.

The environmental CSR of companies is ranked among the least addressed issues, despite the fact that pollution is a major concern and has received much attention in the past two years.

Overall, the findings of the study indicate that the understanding and implementation of CSR is considered unsatisfactory and still largely limited to philanthropy and acts of charity.

Environmental issues and labour practices will become the most pressing CSR issues for enterprises to deal with over the next decade.

Transparency, corruption prevention and ethical behaviour are other areas expected to gain in importance.

It is believed the government will remain the key driver onwards but the private sector will become more proactive.

The mission of the Centre for Corporate Social Responsibility (CSR) of the Embassy of Sweden in Beijing is identify and address challenges for companies in implementing CSR. Positioned at the core of Sino-Swedish CSR relations, the CSR Centre closely follows SinoSwedish CSR developments. In collaboration with its network of partners, the Centre maps CSR trends and tools based on research studies and dialogues with various stakeholders..

June 2015 • ScandAsia.China 7

News Brief

Danish-Chinese Business Forum: “Relations at an all-time high”

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n 14 April 2015 Danish-Chinese Business Forum held its Annual Meeting to review the Forum’s activities and the highlights of Danish-Chinese relations of 2014.

Speakers including Prime Minister Helle Thorning-Schmidt and Chinese Ambassador Liu Biwei took the floor to provide the 120 participants with interesting insights on the opportunities and challenges for Danish businesses in China.

Following the welcome by the two Chairmen, Chamberlain Mogens Christensen gave a speech on behalf of His Royal Highness the Prince Consor t, Patron of Danish-Chinese Business Forum, who had fallen ill and could not partake.

In his speech the Prime Minister addressed the all-time high of Danish-Chinese diplomatic relations and the increased impor tance of bilateral ties. Pointing the attention to China was an on-going priority for the current government, and results had been achieved since the PM took office in October 2011.

Denmark-China trade has doubled over the past years and more than 500 Danish companies are operating in China. According to the Chinese embassy in Denmark, the China-Denmark trade

volume in 2014 rose 16.7 percent year-on-year to $10.6 billion.

The PM also highlighted the importance of China for Danish commercial activities and the great opportunities for Danish key competencies to be part of solving the problems that China currently faces.

China’s Ambassador to Denmark Liu Biwei shared his appreciation of the state visit in April and the PM’s official visit in 2014 as great symbols for the all-time high entering the 65th year of the diplomatic bilateral relations. The ambassador called on further policy coordination between the countries and a hope for increased cooperation in establishing the Asia Infrastructure Investment Bank.

After a shor t break, Stephen Phillips, Chairman of EU China Business Association and Chief Executive of China Britain Business Council, provided great insights on the prospects for business in China. Stephen Philips star ted with an elaboration of the on-going economic reforms and macro-environmental changes in China. Among his main points were the strong commitment to reform by Beijing leadership, the

fight on corruption and the expectations for a ‘new normal’ to be displayed in this year’s five year plan.

Stephen Phillips also provided an understanding of the increasingly complex investment relations and drivers for business opportunities in China. To wrap up his presentation he touched upon the global presence of China in the years to come.

Torben Nielsen, CEO of Kopenhagen Fur, gave the final keynote speech, presented the company’s journey of doing business with China.

Torben Nielsen took the audience through a stor yline of Kopenhagen Fur’s success with Chinese consumers and the challenges they have overcome along the way.

Finally, Professor Kjeld Erik Brødsgaard, Director of Asia Research Centre, Copenhagen Business School and Guo Xin, Deputy General Manager, Bank of China (Stockholm Branch) joined Torben Nielsen and Stephen Phillips on the podium for a panel debate.

Kopenhagen Fur hosted the event at their headquarters in Glostrup.

Danish-Chinese Business For um is an independent, non-profit, executive network organisation that aims to strengthen commercial ties between Denmark and China. The network acts as an enabler of knowledge exchange among companies and organisations with a common interest in Danish-Chinese business relations.

Founded in 2005, the network today counts more than 600 business executives with first hand experience of doing business in China and whose combined strengths affect the decision-makers.

Having received official recognition from both Danish and Chinese authorities, Danish-Chinese Business Forum is acknowledged as the prime link between Sino-Danish commercial interests.

Danish Consulate Shanghai’s food event highlights the 65 Years diplomatic relations anniversary

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n May 2015 the Royal Danish Consulate General in Shanghai organized a unique Danish – Chinese gastronomic event with two renowned chefs, Mr. Yu Xiao Er from China and Mr. John Kofod Pedersen from Denmark to celebrate the 65th anniversary of establishment of diplomatic relations between Denmark and China.

Denmark has long been renowned for a very high gastronomic level and by mixing Chinese modern cuisine; the Consulate General arranged an exciting food evening, with a touch of the best from both Danish and Chinese cuisine.

During the event the two chefs interacted with the guests and demonstrated their cooking skills, while creating a series of Danish and Chinese fusion dishes.

“Both our cultures have a proud food tradition 8 ScandAsia.China • June 2015

and a significant part of both Danish and Chinese cultures is food.This is one of the reasons why we have chosen to celebrate this anniversary with a gastronomic event,” said Mr. Nicolai Prytz, Danish Consul General in Shanghai.

“We should recognize that our relationship is about much more than traditional business and political and diplomatic relations. It has also grown in terms of our mutual cultural exchange and it is important to recognize the Sino-Danish cultural exchange as a significant factor in strengthening of our overall relationship.”

The event took place at the unique Up Arts Gallery in Shanghai. The gallery and showroom is build-up by 200 recycled shipping containers – undoubtedly one of Shanghai’s most fascinating showrooms and with a strong Danish design footprint

The Chinese like Danish food. THis is from last year’s Open Denmark Day at the embassy in Beijing where John Kofod Svendsen was also Chef.

News Brief

Denmark and China 65 years diplomatic relations anniversary gala dinner

From left to right: Wang Chao, Chinese Vice Minister for Foreign Affairs, ​Yan Junqi, Vice Chairman for National People’s Congress of China, Manu Sareen, Minister for Children, Gender Equality, Integration and Social Affairs and Friis Arne Petersen, Ambassador of Denmark to China.

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n 11 May 2015 state leaders from Denmark and China celebrated the 65th anniversary of establishment of bilateral diplomatic relations with a gala dinner and agriculture and sustainability-themed seminar at the Great Hall of the People in Beijing on Monday.

From the Danish government Manu Sareen, Minister for Children, Gender Equality, Integration and Social Affairs was present for the celebrations.

“It is a great pleasure to be here today to celebrate the relations between Denmark and China on behalf of the Danish government,” said the minister and continud: “Despite our differences, we share common goals. We want a society where everybody can shape their own future, but also a society where we take care of the sick and the elderly. The market should play a decisive role, but not at all cost. We need to ensure a sustainable development and take care of the environment.”

In the recent years, Denmark and China have seen a growing number of areas of cooperation like social affairs, legal affairs, anticorruption, foreign policy and defence.

“Denmark was one of the ver y first Western countries recognizing and establishing diplomatic relations with the People’s Republic of China. This great foresight has served our ties with China very well. We are also the only country in the Western world that has had an unbroken diplomatic presence in China since 1908, this celebration marks the long friendship between us,” said Mr. Friis Arne Petersen, Danish Ambassador to China.

“The bilateral relationship has progressed tremendously. Our private companies and institutions have full-fledged engagement in this Sino-Danish partnership for mutual benefit and among the European countries, Denmark is one of the largest expor ters to China in terms of trading figure per capita, as well as the largest investor in China per capita. This makes

China’s Premier and Prime Minister of Denmark exchange congratulatory messages on 65 years of diplomatic relations

O Denmark the most China-oriented economy in Europe together with the Netherlands and Germany,” the Ambassador added.

Following the afternoon seminar at the Great Hall of the People, Danish and Chinese companies including Kopenhagen Fur, Kjeldsens and Husheng Agriculture had an exhibition booth at site where their products and services were showcased.

During the gala dinner, performers from the Music Confucius Institute of the Royal Danish Academy of Music had a joint performance with Chinese musicians. A ballet performance was orchestrated by the Royal Danish Ballet School and the Beijing Dance Academy.

Ms. Yan Junqi, Vice Chairwoman of the Standing Committee of the National People’s Congress, Mr. Manu Sareen, Danish Minister for Children, Gender Equality, Integration and Social Affairs, Mr. Wang Chao, Chinese Vice Foreign Minister, Mr. Li Gao, Vice Minister for State Bureau for Letters and Calls and Mr. Song Jingwu, Vice President of the Chinese People’s Association for Friendship with Foreign Countries were present at the celebrations together with Ambassador Friis Arne Petersen.

Some Danish and Chinese officials as well as companies attended the celebration. Danish and Chinese media representatives and notable public figures such as famous anchor person from Hunan TV, Mr. Wang Han also joined the celebration.

n May 11, 2015, Premier Li Keqiang exchanged congratulator y messages with Prime Minister Helle ThorningSchmidt of Denmark, celebrating the 65th anniversar y of establishment of diplomatic relations between China and Denmark.

Li Keqiang said in his congratulatory message that since the establishment of bilateral diplomatic relations 65 years ago, the China-Denmark relations have enjoyed a sound and stable development. At present, the two nations witness increasingly closer political mutual trust and fruitful results in bilateral practical cooperation covering all fields. Standing at the new starting point of the 65th anniversary of establishment of diplomatic relations between China and Denmark, China is willing to, together with Denmark, promote exchanges and cooperation in all fields and further enrich the connotation of bilateral relations in accordance with the joint work programme between China and Denmark, so as to constantly push the China-Denmark comprehensive strategic par tnership for new progress.

Helle Thorning-Schmidt expressed in her congratulatory message that the Denmark-China relations, which have maintained a long-term stable development and yielded fruitful results, are moving toward a higher level this year. She believed that with the concer ted effor ts of both sides, the Denmark-China comprehensive strategic partnership will be constantly deepened and bring benefits to both countries. She is ready to take this opportunity to send her best wishes to all the Chinese people and wishes a more prosperous China and closer Denmark-China relations.

June 2015 • ScandAsia.China 9

Five questions

to the Danish Ambassa Can Denmark maintain and develop the strong diplomatic relation with China without compromising on democracy and human rights? Danish Ambassador to China Friis Arne Petersen gives his answer in this Q&A on the occasion of the 65 years anniversary.

By Louise Bihl Frandsen

10 ScandAsia.China • June 2015

1. How will you describe the development of the relationship between Denmark and China during your five years as Ambassador?

There has been a positive and unique development of the Sino-Danish bilateral relationship. President Xi Jinping described this result last year during our Queens State Visit with the following words: “Our Chinese–Danish ties are at an all-time high”.

Another clear indicator of this is the large number of visits on ministerial level and higher levels between our countries. In the past five years alone, 49 Danish ministers have visited China and an equivalent number of Chinese ministerial level visits have been conducted in Denmark. We’ve had two State Visits between our two countries, one in 2012 by President Hu to Denmark and one in 2014 where President Xi Jinping invited our Queen. Our Danish Prime Minister has visited China twice the last three years. We mark the anniversary of the 65 years of diplomatic relations by developing a joint work program outlining the wide and deep cooperation in areas such as environment, energy, health, food, transport, maritime etc.

2. If you should point out three positive effects, the strengthened relationship have had for Denmark the past few years, what would you highlight?

First and foremost an increased number of government to government agreements during this period. We have never concluded so many important government agreements with China in such a period and it is also the biggest number of agreements that Denmark has concluded with any country in the world. So – secondly – as a consequence our cooperation has expanded deeper and wider in these new areas and in depth. Cooperation that we few years ago would not have imagined possible is now on its way, such as anti-corruption cooperation between the Danish Ombudsmand-institution and the Chinese authorities in this field, such as the Bureau of Letters and Call and Ministry of Supervision.

Thirdly the growth of our bilateral economic interaction, not just trade but also investment.

For example in the Food and Agriculture area, there’s been a steady increase in the number of signed agreements, creating market access

ador to China and thus allowing new Danish food products to enter the Chinese market. The same goes for energy, environment and industrial areas like green shipbuilding where we have a cluster of marinetech companies that can be sub suppliers to Chinese shipyards of advanced technology.

3. China’s Ambassador in Denmark, Mr. Liu Biwei, has described the relationship with Denmark as something special. How come Denmark has achieved this status in China?

I attribute it to the history: Denmark was the first western country to recognize China in 1950 and Denmark was the first and so far only Nordic countr y to enter a comprehensive strategic partnership agreement with China in 2008. Finally Denmark is the only Nordic Baltic country that both enjoys this history with China, is a member of UN, NATO and the EU, has a ver y close cooperation with the US and is globally active for a long period of time. Some of the other Nordic countries have some of these characteristics but none of them fulfil them all like Denmark.

4. Looking at the differences between the two countries regarding democracy and human rights, what situations can be a challenge for the two countries in the years to come?

Denmark and China has clearly very different political systems and historical backgrounds.Today politicians from both sides understand this, and in the last 10-20 years there have been created a momentum in the bilateral relations despite of this. The globalization has made countries more constructive and realistic in their foreign policy approaches and more willing to seek the common ground in the future than to challenge the differences. Countries apparently realize that we are interdependent in today’s world and that there is much more that bind the countries together than separates them. A mutual concern for environmental issues, climate policies is a challenge to the whole world, a hope for more clean and healthy food products, interest to get better and better health care, wish for more transparent and accountable government and many other issues. By cooperating the world can come a longer way forward. A new area like

culture is increasingly important to share and exchange. For example we have just had a very successful Danish Cultural Season in China and the interest for Chinese culture in Denmark has risen in the past years. So the World appears to be more concerned with these interdependencies and possible cooperation rather than conflict and exclusion.

5. Do you believe it is possible for Denmark to maintain and develop the strong diplomatic relation with China without compromising on democracy and human rights?

Denmark has both had an increase in our trade relationship with China as well as doubling our funding to human rights activities. These human rights initiatives have shown positive and concrete results through the years and confirm Denmark’s position as one of the leading countries in this area. So it is definitely possible to do both at the same time.

June 2015 • ScandAsia.China 11

12 ScandAsia.China • June 2015

EXPANDING THE OTHER WAY AROUND Many Western creative agencies have been expanding to Asia due to the region’s rising consumption. Constant, established in Hong Kong 2012, have decided to do the other way around and is now expanding with an office in Copenhagen.

By Jojje Olsson

I

n our digital age it’s important to maximise the use of new technical platforms and social medias in storytelling. Interaction with customers should be a central par t of the marketing, and influence design as well as strategy and distribution of the content. That is the opinion of Tem Hansen, 31, from Denmark and Tim Ho, 30, from Hong Kong, former colleagues at Oglivy & Mather’s Hong Kong office.

While working at Oglivy & Mather, the two colleagues realised that there was no independent creative agency in the region with this concept.

Hence, in 2012 they decided to create their own agency, and from an early beginning put a lot of time into building a network with local designers, musicians and other artists. ”For us it is more important to learn to know popular and cool Asians in a broad range of creative professions, rather than just some random famous people from the West. That allows our Western clients to cooperate with local celebrities, that can also work as ambassadors for certain brands in Hong Kong or China”, says Tem Hansen.

Tim Ho stresses the importance for foreign brands to think beyond just the design to be able to succeed in Asia: ”To be popular in Asia today, companies have to fit their content to local culture and customs.

The industry seems to slowly have understood that the road to success is not to simply copy the same concept that is being used on the Western market and apply it to China”.

One example is Hermes, that have been far more successful in China than rivals like Louis Vuitton. The explanation is local elements in the design of Hermes products for the Chinese market, which also includes an oriental theme of the interior of the stores. Starbucks have also been expanding fast on the Chinese market, thanks to localisation on the menus with drinks such as ”Red Bean Frappuccino” and ”Green Tea Latte”.

Constant did a successful marketing campaign with the american footwear manufacturer New

Balance, in which unique portraits was created of individuals with different professions or lifestyles that was connected to the brand accordingly. ”Rather than just showcasing the product we tried to focus on the cultural aspect, with a network including several local creative artists that could render the style and feeling of New Balance”, says Tim Ho. The unique lifestyle por traits from Tokyo, Shanghai and Hong Kong was integrated with PR, social media and other web services throughout the region. Constant was particularly pleased with the fact that the campaign content was also displayed in several European countries, which is not common for campaigns in Asia - usually marketing content is rather moving from West to East.

Copenhagen expansion The New Balance campaign worked as inspiration for Tem and Tim to expand with a Copenhagen office this year. By presence in Copenhagen as well as Hong Kong, the duo hopes to give its customers a new perspective. ”We want to get closer to Scandinavian brands in order to help them to develop unique and effective marketing strategies for Asia. Moreover, our ambition is also to offer Chinese brands to expand in Europe”, says Tem Hansen.

Tem speaks of design as ”a part of the DNA” in Scandinavian countries, where attractive design by itself is often seen as the most important factor for a company’s success as a whole. Constant wants to introduce this culture to Asia. One method is to offer talented Scandinavian designers opportunities in the region.

Tem Hansen explains that the culture of consumption is ”more intensive” in China and Hong Kong than in the west: ”Consumption has reached new peaks during the past years and is now playing a major part in everyday life. People here are expecting, and also accepting, to be approached by sales staff or commercials at street level or online”.

June 2015 • ScandAsia.China 13

That means a brand wont have to keep its marketing content and message as low key as in Europe, out of fear from offending the customers. Asian customers are also more likely than its European peers to interact with the brands. This, according to Tem, makes the Asian market extremely interring to work with, but it’s also harder to gain customer loyalty as so many brands are communicating with the customers at the same time.

Mobile storytelling According to Tim Ho, many foreign companies fail to comprehend the wide use of mobile platforms in Asia. ”All aspects and activities, from the design of the platform to the content itself, has to made with a ’mobile first’ mentality. In Asia it is actually more impor tant that the content fits mobile platforms than desktop computers”.

China is now boosting about 700 million internet users, and the mobile internet expansion have been way faster than that of conventional computers. Since 2007, China has seen a tenfold increase of mobile internet users to 557 millions by last year’s end. In fact, last year was the first time ever that Chinese mobile internet users surpassed those who surf the internet with desktop computers.

Concerning the marketing content as well as application design, Tem and Tim both stresses that the simple and clean design we are used to in Scandinavia is gaining popularity in Asia as well.

That’s a change from the earlier Asian praxis of ”principle information” - the concept of stuffing 14 ScandAsia.China • June 2015

as much information a possible into a message.

Tem Hansen also explains his belief that global strategies is something that, at best, only works at macro level: ”Many companies are relying far too much on whatever is being churned out from the headquarters and are afraid to spend money on local content. That is not the way to become relevant in Asia, home to two thirds of the world population”.

He adds that an increasing number of Asian manufacturers are launching their own products rather than just being sweatshops for Western companies. Certain regions of Asia is also establishing its own brands, and are starting to think outside their local and regional markets.

Those new, dynamic Asian companies is a big part of the reason that Constant is now taking the unconventional step to expand from Asia to Scandinavia. By linking the two regions together, they hope to be able to assist designers as well as brands to develop a philosophy including the best of both worlds.

FACTS / Constant (www.weareconstant.com) • Constant was established as SALT in 2012 by Tem Hansen and Tim Ho. Have been working with brands like Nikon, New Balance, Wrangler and the Shangrila Hotels.

• Constant is using its network to create teams with different skills that are tailored for the different campaigns. Is mainly working with local creative artists and start-ups.

• Constant is expanding with a Copenhagen office this year, and is changing its name to Constant. They are also hiring Henrik Xu from Sweden and Marlon Ge from France.

The XC90 Excellence Volvo unveils it most luxurious car model ever

W

hile eagerly awaiting the XC90’s arrival to Asia later this year,Volvo Cars unveiled “the most luxurious vehicle ever built by the Swedish company in its 88 year history” at the Shanghai International Automobile Show – the XC90 Excellence.

Volvo’s designers and engineers have crafted this top-of-the-line XC90 version to offer customers a distinct and individual automotive experience that incorporates the latest Scandinavian innovations in design, refinement, comfort and style.

The XC90 Excellence, described as “an elegant and refined four-seat version of its recently launched XC90”, is based on Volvo’s all-new XC90, which has seven seats, creating an enormous amount of additional space for rear seat passengers that helps to deliver an exceptional customer experience.

Thus, this model offers a First Class automotive experience that begins with broad, spacious individual reclining rear seats complete with massage, ventilation and increased leg room, as well as a retractable control touchscreen, folding tables, a refrigerator with bottle and glass holders, a heating/cooling cup holder and handmade crystal glasses from leading Swedish glass design company, Orrefors.

“This is our new flagship car,” said Thomas Ingenlath, Senior Vice President, Design. “We have created the ultimate luxury experience of Scandinavian design. Volvo has never launched a car like this before. This is the car that demonstrates what the name Volvo now means.”

The XC90 Excellence offers its passengers footrests, ambient lighting, illuminated storage and unique leather detailing in blond or charcoal, a luggage compartment dividing screen, additional sound insulation in the cabin and Pirelli Noise Cancelling System tyres (PNCS).

XC90 Excellence passengers will also enjoy a specially augmented Bowers & Wilkins audio system that adds an extra speaker to its 19-speaker system, resulting in unrivalled high fidelity sound reproduction and surround effect in the rear seats.

“What we have designed is amongst the best rear seat experiences available in a luxury car,” said Mr Ingenlath. “The result is a superlative environment for relaxed comfort or doing business.”

The XC90 Excellence also comes with an integrated ionic air cleaner in the CleanZone climate system.The Excellence version will be available globally later in 2015.

Copyright: Igor Yaruta / 123RF Stock Photo

June 2015 • ScandAsia.China 15

Sigve Brekke new Telenor Gro

T

elenor Group announced recently that Mr Sigve Brekke, the former CEO of DTAC, currently the Executive Vice President and Head of Telenor Group’s Asia operations, has been appointed as its new Group President and Chief Executive Officer.

Sigve Brekke joined Telenor in 1999 and has held several executive positions in the company since then.

He has been instrumental in establishing Telenor Group as a leading international mobile operator. Under Brekke’s leadership, Telenor has added more than 100 million subscribers in Asia.

The value creation from Asia has been significant and the region now represents more than 40 percent of the total enterprise value of Telenor Group. Telenor is well positioned to monetise on the next growth wave - providing internet for all, writes the Norwegian telecommunications giant in a statement.

Sigve Brekke is currently responsible for Telenor’s operations in Asia (Executive Vice President and Head of Telenor Group’s Asia operations), a position he has held since 2008.

Earlier in his Telenor career he was the Managing Director of its Singapore office. Then a longer stint in Thailand followed as Telenor developed and expanded its operation there. He was co-Chief Executive Officer of Thai mobile operator dtac from 2002 to 2005, and then its CEO from 2005-2008.

In September 2014 Sigve was once again back to DTAC; appointed interim CEO Mr. Sigve Brekke as Mr Jon Eddy Abdullah resigned from his position as CEO of dtac.

Mr Brekke will succeed Mr. Jon Fredrik Baksaas as Telenor Group’s CEO by 17 August 2015.

“Sigve Brekke has a solid track-record as the Head of Telenor’s Asia operations and part of Group Management since August 2008. His leading role in our Asian success story combined with his vast international experience and leadership capabilities will be of great value as the company continues its profitable growth journey,” said Svein Aaser, Chairman of the Board of Directors in Telenor Group.

“It is a great honour to be asked to lead Telenor. Our company’s Norwegian and international success is a result of Telenor Group’s ability to provide digital communication services that are valuable to our customers. Telenor’s strategy, including our financial priorities, form 16 ScandAsia.China • June 2015

New Norwegian to head Telenor roup CEO Group in Asia

: Morten Sørby

a solid platform for value creation for our shareholders and continued growth in Norway, Europe and Asia. We are poised to capture value from the opportunities arising from strong demand for internet services and I look forward to executing our strategy together with our 33,000 employees,” said Sigve Brekke.

Jon Fredrik Baksaas steps down after 13 years as the company President and CEO. In September 2014, he extended his tenure for another year, until the end of 2015. In preparation of Baksaas’ retirement, Telenor’s Board of Directors initiated a thorough process with a broad set of internal and external candidates to find his successor. Baksaas will continue as advisor to the Board of Directors until the end of 2016 and will serve as Chairman of GSMA, the global industry organisation for mobile operators.

“Jon Fredrik Baksaas has internationalised Telenor and transformed us into a modern, world-class telecom company and widely known consumer brand originating from Norway. I believe Fredrik is one of the most impor tant industr y leaders in Norway in modern times,” said Svein Aaser.

Telenor has grown substantially both in terms of number of customers, revenue and market value. Telenor is a leading mobile telecom company with mobile operations in 13 markets and 192 million mobile subscriptions worldwide. Revenues have increased from NOK 49 billion to NOK 107 billion and market capitalisation from NOK 45 billion to NOK 270 billion during Baksaas’ leadership. A significant contributor to this development has been the company’s growth in Asia.

“To lead Telenor during a period of rapid growth and major technological changes has been both exciting and rewarding. In Sigve Brekke, the Board of Directors has found the perfect candidate to continue Telenor’s growth and value creation. We have worked closely for many years, and his knowledge of the business, customer focus and hands-on management style will ensure a great future for the company,” said Jon Fredrik Baksaas.

T

he Telenor executive Mr Mor ten Sørby has been appointed as the new Head of Region Asia in Telenor Group, effective 1 June 2015.

Mr Sørby replaces Mr Sigve Brekke, who is the upcoming President and CEO of Telenor Group. Preparations are under way ahead of Brekke’s start date in August 2015. Sørby will assume all the responsibilities in overseeing and running Telenor Group’s operations in Asia and joins Telenor’s Group Executive Management team.

Morten Sørby, a Norwegian national, brings significant operational and strategic mobile telecommunications experience to the role as Head of Region Asia. He joined Telenor in 1993 and has previously been a member of the Telenor’s Group Executive Management team for a number of years. He has served as the Executive Vice President in charge of corporate strategy and regulatory affairs in Telenor Group. Sørby was also the Executive Vice President and head of the Norwegian and Nordic mobile and fixed network operations of Telenor.

In 2014, Sørby was CEO of Uninor, Telenor’s wholly owned operations in India. During this period, the company continued to strengthen, both in terms of revenue and customer market share. Sørby holds a Master of Science in Business Administration from the University of Karlstad.

He has also completed additional education from IMD in Switzerland and is a state-authorized public accountant in Norway.

“Mor ten brings his vast experience from the global mobile industry to the role as head of our operations in Asia. Morten will continue our growth story in this dynamic region and I am confident that he will put his deep industry insight into action together with our operations in Asia,” says Jon Fredrik Baksaas, President and CEO, Telenor Group.

June 2015 • ScandAsia.China 17

Potential future for Saab cars

By Joakim Persson

N

ational Electric Vehicle Sweden (Nevs), which acquired the main assets of the Saab Automobile bankruptcy estates in 2012 and launched its first electric vehicle model in 2014, can finally look to the future and continue the on-going negotiations with two Asian car markers.

On April 15, 2015 a Swedish District Court decided that the reorganization of Nevs could cease as the purpose of it had been fulfilled.

This followed another court decision where the subcontractors agreed to a proposal allowing Nevs to write down its debts with over SEK 300 million. NEVS is owned by Hong Kong-based National Modern Energy Holdings. Behind that, you find Chinese-Swedish businessman Kai Johan Jiang.

ScandAsia explains the circumstances that may very well lead to further Asian investment into the embattled Sweden-based carmaker.

On March 23, 2015, a District Court approved the composition that will mean that a total of 573 creditors 469 will get their full claim paid.

“A composition was needed for Nevs to exit the reorganization in order to be able to sign commercially viable agreements with our OEM and financial par tners we have been in dialogue with for a long time. We appreciate the support from our suppliers, with whom we want to continue to develop long-term relations”, said Mattias Bergman, President Nevs.

18 ScandAsia.China • June 2015

In its proposal to pay off part of outstanding debts to creditors, a write down was necessary to exit current bankruptcy protection, said Nevs.

Following on that court decision Nevs has submitted its request to the court to exit the reconstruction of the company, since its purpose has already been achieved.

And since this reqest was fulfilled Nevs can move on and finalise its commercial negotiations that have been on-going, in one case for over a year, with which the carmaker is hopeful to establish a long-term funding deal and potential joint venture.

In one of the two cases for new partners, it would be in the form of a new majority owner and a technical joint venture to share some of Saab’s technology, including its new Phoenix platform. This involves the right to use the Saab brand name and Nevs have been in talks with Saab AB concerning the brand name for any future vehicles.

In January 2013 it was announced to extend and further develop the Saab brand in passenger cars with a new visual identity, founded on the Scandinavian heritage, where the four distinctive seasons, long distances and extreme road conditions have shaped the Saab passenger cars.

Nevs had signed a licensing agreement with Saab AB to use the Saab brand for its products and ser vices. Saab is a strong passenger car brand, built over many years through technology, innovation and progressive design.

Car maker s Mahindr a from India and Dongfeng from China have been named in the media as potential joint venture partners.

In August 2014 the Saab 9-3 Electric Vehicle a modified Saab 9-3 Aero Sedan – was presented as designed and produced as part of a prototype series in Trollhättan.

“We are happy to present the result of Nevs engineering into a real Saab EV product. The Saab cars’ well-known performance and safety is maintained and we foresee a very good product for the market. When we developed the Saab 9-3 Aero Sedan Model Year 14, we focused on enhancing the driving experience, safety and quality.And the starting point for our development of the Electric Vehicle project was to maintain all the good attributes and characteristics”, said Stig Nodin, Vice President Engineering and Product Development.

The car is equipped with lithium-ion batteries from Beijing National Battery Technology, set up in Beijing in October 2012 by Nev’s majority owner and CEO, the Swedish-Chinese businessman Kai Johan Jiang. The battery manufacturer for electricdrive buses and cars belongs to State Power Group, a Chinese group of green tech companies active in the sustainable energy sources, mainly biomass, and owned by Kai Johan Jiang’s company National Modern Energy Holdings Ltd. Kai Johan Jiang has previously worked for among others Volvo Group.

Apple trifle

By Anders Holm Nielsen

Ingredients (Serves 4) • 1 cup fresh breadcrumbs • ½ cup white sugar • ½ cup hazelnuts • 1 pound cooking apples • 1 lemon • 3 tablespoons honey • 3 tablespoons caster sugar • 1 egg white

Preparation • Place breadcrumbs and white sugar in a non-stick pan on low heat.

• Cook gently for about 4 minutes while constantly stirring until it’s dark golden.

• Transfer into a bowl.

• Chop the hazelnuts and toast them.

• Put the hazelnuts into the separate bowl and set aside.

• Peel, core and slice the apples.

• Grate the lemon rind and juice the lemon.

• Mix the apples, honey and lemon juice.

• Transfer the mixture into frying pan and cook for 10 minutes on low heat.

• Break up the apples with a spoon, until they are soft and pulpy.

• Beat the apple mixture into a thick puree with a wooden spoon, and set aside to cool down.

• Stir in castor sugar and egg white until stiff, and fold into the cooled down apple puree.

• Spoon half the apple mixture into four glass bowls.

• Top with the breadcrumb mixture, and repeat the layers.

• Finish with a layer of breadcrumbs and nuts.

• You can add brandy or any type of liqueur into the apple mixture if you wish

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June 2015 • ScandAsia.China 19