Chamber Events - Beijing The Financial Crisis – What Does it ... - AHK

Chamber Events
Chamber Events - Beijing
The Financial Crisis – What Does it Mean for German Companies?
In the middle of October, the global financial crisis caused concern
among Chamber members. Many wondered how the situation would
affect China’s economy. Senior level representatives of Volkswagen,
Daimler, Siemens, KPMG, and Deutsche Bank, as well as SME CRISTIN
Paintroller Manufactring, were on hand for open discussion. Members
of the press posed tough questions on sought-after specifics.
Speakers noted China’s relative insulation from the crisis. An example
was the housing market, where high down payments had reduced
the risk for banks. Despite a recent decline of up to 20% in housing
prices, banks in China showed no sign of panic as the decline primarily
affected homeowners.
Chinese exports will, of course, be seriously affected, as demand from
the U.S. and Europe declines. However, the fact that the RMB is no
Kammerstammtisch
Reliably on the third Monday of every month, the Kammerstammtisch
continues to present a popular networking opportunity
for GCC • Beijing members. In October, it fell on one of Paulaner’s
Oktoberfest nights, taking place in the Bierzelt.
Event: Kammerstammtisch
Date: 20 th October and 22 nd September in Beijing
Topic: Good company & Schunkeln
Praktikantenstammtisch
The Praktikantenstammtisch, held every second Tuesday of the
month at 7.00pm, is a great opportunity for interns and young
professionals to get support and inspiration from others.
Please check our website for up-to-date details.
December 2008 - January 2009 | 20
The German Chamber of Commerce in China
longer rising against the dollar should help buffer the blow for Chinese
manufacturers. Even if exports were all but absent from Chinese GDP
growth, the projected increase would still be 7% - a figure virtually all
other economies can only dream about.
The silver lining for China in the crisis has come in the form of plummeting
raw material prices, which benefits the manufacturing sector
and infrastructure projects. One company VP cited these projects as
proof that German firms in China would continue to fare well despite
global economic setbacks.
Participants expressed concern that the relative sensitivity of Chinese
consumers to negative news could lead to excessive volatility in the
stock markets. Overall, panelists were virtually unanimous on one
point: China has just about the best chance of any country to solve
these problems independently.
After discussion of the financial crisis, the evening concluded with a
detailed update on implementing and interpreting the new labor contract
law. These rules were themselves subject to several interpretations,
which led to a lively debate among legal experts.
Event: Chamber Dinner October
Date: 16 th October in Beijing
Topic: The Financial Crisis and the Labor Law
Moderators: Jutta Ludwig | Executive Director – GCC • Beijing; Florian
Keßler | General Manager - GIC Taicang Ltd. Beijing
Speakers: Eddy Henning | Deutsche Bank China; Ms. Susanne
Rademacher | Beiten Burkhardt Beijing Law Office
Panelists: Ulrich Walker | CEO - Daimler Northeast Asia and Daimler
China; Mr. Andreas Haffner | Vice President - Siemens Finance Ltd.
China; Dr. Jörg Mull | Executive Vice President - Volkswagen China; Mr.
Thomas Bolz | CRISTIN Paintroller Manufacturing
InterChamber Networking
The regular InterChamber Networking
event provides an opportunity to meet
new people from other chambers and
network with GCC members in a relaxed,
cosmopolitan atmosphere. In October
it took place at the M Bar at Sofitel
Wanda. Co-sponsors were the Benelux
Chamber and the French Chamber.

The German Chamber of Commerce in China
Chamber Events - Beijing
www.china.ahk.de 21 | December 2008 - January 2009
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Beijing - Chamber Events
Job Fair Attracts 400 Candidates
Together with 400 other
job seekers of various backgrounds,
participants such as
Wang Hulin, who studied economics
in Germany, attended
the German Chamber Job Fair
at the Swissôtel in Beijing.
Like many of her counterparts,
Wang Hulin has returned to China after gaining experience in
Germany. Originally from an emerging city in northern China, she
isn’t necessarily looking to move to Beijing. The perfect job could
be in one of the new hot spots of economic development – as long
as it is at a German company.
Companies operating outside of Beijing, like Würth Arnold (Shenyang)
or Stihl (Qingdao) were among those presenting themselves
to Beijing’s job hunters. Well established organizations such as the
Goethe-Institut or the GTZ also joined, and talked to returnees like
Wang Hulin. Germans looking for jobs locally and other Chinese
young professionals also took part.
Before the fair, companies and candidates contacted each other
through a web-based matchmaking tool. Candidates uploaded
their resumes and selected a maximum of three jobs. HR managers
logged on to view the list of pre-screened applicants. As a result,
about 25% of the candidates who attended already had at least one
interview arranged prior to the event.
85% of visitors declared that they would be interested in attending
a similar job fair in the future. With even more companies expressing
a desire to participate, GCC • Beijing is looking forward to
expanding this platform. Perhaps at the next Job Fair, Wang Hulin
will be one of the interviewers, representing a German company.
Event: GCC • Beijing Job Fair
Date: 13 th October in Beijing
Topic: Jobs at German Companies/Enterprises in China
December 2008 - January 2009 | 22
CDM Initiative Launched
The German Chamber of Commerce in China
To promote German participation in climate protection in China and the
creation of an expanded network of German and Chinese decision-makers
in the field, the Delegation of German Industry and Commerce Beijing
launched its CDM Initiative.
GCC • Beijing will help identify interesting CDM projects in China and
transfer highly-developed German technology to China. The Chamber will
also organize regular events to disseminate information and provide networking
opportunities to strengthen relationships with relevant Chinese
partners. A consulting pool of German enterprises and experts will be
created.
Besides the networking events and identification of projects, planned
concrete activities of the CDM initiative include workshops on CDM
mechanisms and solutions, and market observation. The 100 participants
at the opening expressed great satisfaction about the initiative, its networking
opportunities, and the organization of the kick-off.
Major players attending the event
included: representatives of the
German Ministry of the Environment
and Nuclear Reactor Safety,
the German Embassy in Beijing,
the GCC, China’s National Development
and Reform Commission, the Ministry of Science and Technology,
the Ministry of Finance, Germany’s Central Marketing Agency of German
Agriculture Ltd, the United Nations Development Programme, the World
Wildlife Fund, and numerous representatives of industry and commerce.
Event: CDM Initiative Launch
Date: 14 th October 2008
Moderator: Ms. Jutta Ludwig | Executive Director GCC • Beijing
Speakers: Mr. Thomas Fort | German Federal Ministry for the Environment,
Nature Conservation and Nuclear Reactor Safety, Ms. Li Liyan | National
Development and Reform Committee, Wen Gang | China CDM Fund Management
Centre, Ministry of Finance, Bernhard Zander | KFW
Topic: Network and information building regarding CDM in China
The Relevance of Arbitration in China – Practical Solutions for Dispute Resolution
Dr. Zhao Hang, a partner
with Commerce & Finance
Law Offices in Beijing, presented
the advantages of
arbitration to participants
at a recent meeting of GCC •
Tianjin’s Legal Roundtable.
One potential benefit of
foreign arbitration awards
applied in China is that Chinese courts basically limit themselves to conducting
a procedural examination, whereas domestic arbitration awards
are sometimes also subject to assessment in terms of their accuracy of
content. Dr. Zhao also compared and contrasted two arbitration bodies (he
serves as an arbitrator in both), the China International Economic and
Trade Arbitration Commission (CIETAC), and the Beijing Arbitration Commission
(BAC).
An important footnote in the Roundtable’s discussion concerned
the possibility that the seems one step closer, as for the first time
German courts have recently recognized two Chinese verdicts.
Based on the informal reciprocity principle applied in Chinese
courts, there is now hope that China will begin to recognize and
enforce awards made by German courts, and German companies
will be able to reap the benefits within the framework of the
Chinese court system. Dr. Florian Keßler, Head of the Legal Department,
GCC • Beijing, reported this significant news to the working
group in detail.
Event: Legal Roundtable “Rechtsfragen in China”
Speaker: Dr. Florian Keßler | Head of the Legal Department - GCC •
Beijing, Dr. Zhao Hang | Commerce & Finance Law Offices Beijing
Date: 29 th August in Tianjin
Topic: Current developments in Chinese arbitral jurisdiction

The German Chamber of Commerce in China
GCC Briefs Lower Saxony Delegation
GCC • Beijing Executive Director
Jutta Ludwig briefed
members of a delegation from
Lower Saxony on the Chinese
economy 30 years after its
opening. In the midst of a
global crisis she couldn’t
ignore its potential effects on
durable goods purchases and
China’s GDP.
Ms. Ludwig emphasized the on-going transition from “made in China”
toward “invented in China”, which has been attracting more R&D
facilities. Additionally, the substantial consumer demand and a large
potential workforce have companies turning their heads in China’s
direction.
In addition to the challenge of finding employees, disadvantages
to doing business in China included lax intellectual property protection
and environmental challenges. However, Ms. Ludwig highlighted
how some of these issues are receiving increasing attention from the
Chinese government. For example, of 17,395 IP-related cases in China
in 2007, only 668 concerned foreign companies. Furthermore, the
Water Sector Workshop Identifies Opportunities
Water is scarce worldwide, as German Parliamentary State Secretary
of the Ministry of the Environment, Astrid Klug, demonstrated with
numerous facts and figures in her speech in Tianjin. Organized for the
German Federal Ministry of the Environment, Nature Protection and
Reactor Safety by the GCC • Beijing, the all-day workshop aimed to
present the latest developments and challenges and allowing both
sides to deepen their ties while establishing new contacts. 20 German
companies and 120 representatives of Chinese enterprises and government
agencies seized the opportunity.
Among both Chinese and Germans, a clearly heightened interest in
cooperation on water projects was evident. State Secretary Klug noted
the newly established “Sino-German Water Partnership” (GWP), to
which Germany contributes technical expertise as well as its experience.
Over 170 representatives of private and public enterprises,
including 5 German ministries, are participating on the German side.
As such, the GWP provides a single partner both for Chinese project
owners and decisionmakers as well as for German firms seeking to
offer their technologies to such projects.
Public private partnerships
(PPP) and other financing
instruments, which can be
arranged, for example, in
cooperation with KfW, the
German Federal Government’s
banking partner for
such projects, are making
participation more and more
attractive for German com-
panies. Ms. Klug said her
conversations with German
companies at the IFAT
environmental trade fair
in Shanghai had made this
amply clear to her.
Beijing - Chamber Events
state of the environment, of course, offers German enterprises with
the appropriate corrective technologies many opportunities.
The delegation included the Mayor of Wolfsburg and representatives
of a broad range of industries such as tourism, architecture, consulting,
meat processing, harvesting machinery, and auto parts. After the
briefing, participants took advantage of the chance to network with
Chamber members.
Event: Informal Luncheon with a Delegation from Lower Saxony
Date: 8 th October in Beijing
Topic: Opportunities in China
Speakers: Ms. Jutta Ludwig | Executive Director - GCC • Beijing, Ms.
Ingeborg Weisig | State Secretary - State Chancellery of Lower Saxony
GCC • Beijing Executive
Director Jutta Ludwig said
that the Chamber was proud to do its part to bring the partnership
to life in northern China, and added that Tianjin, one of the most
dynamic cities in the region, had been a very deliberate choice as the
site of the workshop.
Deputy Director Cui Yucheng, of Tianjin’s Environmental Protection
Agency, was explicit in his statement that German involvement both
in water treatment in general and specifically in expanding the capacity
of Tianjin’s treatment plants to be greatly encouraged. Tianjin is
urgently interested in eliminating the remaining 25% of effluent that
is released untreated into the environment. By 2010, Tianjin’s 17
treatment plants are to become 58.
Event: German-Chinese Workshop for Cooperation in the Water Sector
Date: 26 th September
Topic: Latest developments, new models,
Speakers: Astrid Klug | State Secretary - German Ministry of the
Environment, Ms. Jutta Ludwig | Executive Director - GCC • Beijing,
Mr. Cui Yucheng | Deputy Director - Tianjin Environmental Protection
Agency, Mr. Bernd Mehlhorn | German Ministry of the Environment, Tu
Xiaoguang | Berlinwasser International AG; and other notable speakers.
www.china.ahk.de 23 | December 2008 - January 2009
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Chamber Events - Beijing
December 2008 - January 2009 | 24
The German Chamber of Commerce in China
GCC • Beijing Opens Tianjin Office
Lions danced and drums rolled as GCC • Beijing cut the ribbon on the
new GCC Tianjin office. In the presence of the GCC • Beijing’s board
and numerous guests from Tianjin and Beijing’s business communities,
including Tianjin’s various investment zones, GCC • Beijing Chairman
Dr. Richard Hausmann, Vice Mayor of Tianjin Ren Xuefeng, CCPIT
Tianjin President Zhao Xueming, and GCC • Beijing Executive Director
Jutta Ludwig declared the Tianjin Chamber open for business.
With ever-increasing numbers of German enterprises moving to Tianjin,
the opening of a new German school, the beginning of construction
on Tianjin’s EcoCity project, the completion of a German-supported
highspeed train project from Beijing to Tianjin, and the recent inauguration
of an aircraft assembly line with the attendant migration of
suppliers, the time is ripe for the German Chamber’s move to the city.
Dr. Richard Hausmann said: “By opening a German Chamber in Tianjin,
we seek to further promote Sino-German cooperation in the region,
intensify the networking among German companies here, and attain
even better knowledge of the local market and local conditions. We
have already held 10 events here and I am very pleased by our cooperation
with Mr. von der Lühe of the Tianjin German Business Council
and the EU Chamber.” Jutta Ludwig added: “We’re located in the Aus-
und Fortbildungszentrum (AFZ) Tianjin, which stands for decades of
Sino-German cooperation in professional training. I would like to
convey my special thanks to the AFZ’s Director Li Dawei for making
this possible.”
Event: Grand Opening Ceremony of GCC •Beijing’s Tianjin Office
Date: 22 nd October
Topic: Welcoming the Community
Speakers: Dr. Richard Hausmann | Chairman - GCC • Beijing, Ren
Xuefeng | Vice Mayor of Tianjin, First Secretary Jan von Häfen |
German Embassy in China, Ms. Jutta Ludwig | Executive Director - GCC
• Beijing

The German Chamber of Commerce in China
Beijing - Chamber Events
www.china.ahk.de 25 | December 2008 - January 2009
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Chamber Events - Guangzhou
Members in the Ring with Evander Holyfield
An unforgettable moment: Members of the German Chamber of Commerce
• Guangzhou took advantage of the unique opportunity to
meet Evander Holyfield - a cruiserweight and heavyweight champion,
Olympic medalist, and the only boxer ever to become world heavyweight
champion 4 times. Mr. Holyfield came to Guangzhou specifically
to attend business meetings and gauge the level of investment
in South China. One day after arriving in South China on occasion of
the 104 th Canton Fair, Holyfield and his business associates spent one
evening with the German community to discuss opportunities in this
region.
After a preliminary meeting with the Consul General, Mr. Eberhard
Schuppius, and GCC • Guangzhou Board of Directors, Mr. Holyfield
December 2008 - January 2009 | 26
The German Chamber of Commerce in China
initiated several discussions with
company representatives and
media while posing for a few
souvenir shots at the bar of the
Ritz Carlton Hotel. Ahead of time,
GCC • Guangzhou had encouraged
its members to provide proposals
for specific business opportunities
to be forwarded to Mr. Holyfield.
In the days following the event,
Holyfield and his team visited
several companies in Guangzhou.
The boxing champion was wellprepared
and showed deep knowledge of the current situation in South
China. Feedback from the companies was consistently positive, proving
Mr. Holyfield’s serious business intention. Besides the business focus
of this event, the German community celebrated an unforgettable
Meet & Greet with one of the world’s top sports stars.
Date: 16 th October 2008
Post-Olympics Visa Update
Due to the continued interest in
the topic, the GCC • Guangzhou
organized presentations in both
Shenzhen and Zhongshan (Bellavista
Restaurant). Mr. Zach Wortham
from the Wang Jing & Co. Law
Firm informed the audience about
the latest updates on the rules
and guidelines for the different
types of visas. In Shenzhen, the
lively discussion was followed by
networking drinks in vibrant V-Bar.
The German crowd enjoyed a generous
happy hour together with
the Crowne Plaza Hotel team to
warm up for Oktoberfest 2008 in
Shenzhen.
Locations: V-Bar in Crowne Plaza Hotel, Shenzhen / Bellavista Restaurant,
Zhongshan
Speaker: Mr. Zach Wortham | Client Service Manager - Wang Jing & Co.
Law Firm

The German Chamber of Commerce in China
Customs Clearance in Shenzhen Futian
Free Trade Zone
How does one manage a third
party logistics provider? John A.
Benito de Valle shared his more
than 12 years of experience in
the Chinese logistics market
working for Siemens and founding
his own company, Bamboo
Logistics Solutions. After stressing
the importance of collecting
and measuring key performance indicators, John highlighted the main
advantages for importers and exporters using a third party.
The speaker and audience discussed the peculiarities of customs in
the Futian Free Trade Zone (FTZ), located in the south of Shenzhen.
The presentation covered assembly, ticketing and importing processes.
Afterwards the 25 participants exchanged their personal experiences
and took a tour of warehouse facilities at the FTZ.
Event: Logistics Workshop Shenzhen
Date: 21 st October
Speaker: Mr John A. Benito de Valle | CEO/Director - Bamboo Logistics
Solutions
The Power of Solar Energy
The “Renewable Energy” event
successfully continued with a
multi-day event focusing on solar
energy at the China Hotel, Guangzhou.
The event established an
interactive forum for experts and
business people from Germany and
China. Participants from around
30 Chinese companies gathered
information on the current market
situation and potential developments,
while building a valuable
contacts database.
The agenda included several presentations
from German business
delegates such as IBC Solar AG,
Viessmann Heating Technology
Beijing, Vaillant Heating Equipment
Trade, Schueco International
and pvXchange. Many of the
attendees joined the matchmaking
session after the speeches.
Chinese companies took the
opportunity to get to know German experts. In collaboration with the
Deutsche Energie Agentur (dena) and Ecofys, the German Chamber of
Commerce • Guangzhou organized the event.
Date: 22 nd – 26 th September 2008
Location: China Hotel, A Marriott Hotel, Guangzhou
Guangzhou - Chamber Events
Members Develop Logistics Strategies
Nearly 30 members of the German Chamber of Commerce • Guangzhou
took part in a Logistics Workshop covering a wide range of topics.
Vanessa Guo, Vice President of Runbow Logistics, delivered an overview
of the general differences between the European and the Chinese
logistics markets, and gave advice on how to manage subcontractors.
She encouraged the audience to interact and develop strategies to
improve their situation.
Company representatives listed the problems they face in terms of
timing, service quality and costs. By discussing individual cases with
each other, the participants
gave the
speaker the opportunity
to show her
expertise in supply
chain management as
a third-party logistics
provider. As all industries
have to deal
with similar logistics
problems, the
group could develop
methods of how to meet challenges of the Chinese logistics structure.
Event: Logistics Workshop Guangzhou
Date: 15 th October
Speaker: Ms. Vanessa Guo | Vice President - Runbow Logistics
www.china.ahk.de 27 | December 2008 - January 2009
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Chamber Events
Chamber Events - Shanghai
METRO Shares Insider’s View of the Chinese Market
Mr. Zeiske has been the President of Metro JinJiang Cash & Carry Co.
Ltd. since March 2008. The group opened its first store in Mühlheim
an der Ruhr in Germany in 1964. Since then, the story has been one
of continuous growth with the opening of its Shanghai store in 1996
marking the group’s ambitious move into the Chinese market. Currently,
the organization has approximately 280,000 employees worldwide, operating
in the B2B market, whilst being a full line distributor. Roughly
25% of the group’s profit is drawn from the hotel and restaurant business.
Operating 37 stores spread across 31 cities in China, Metro was a
preferred supplier during the Olympic Games.
Outlining the differences between the Chinese and European markets,
Mr. Zeiske cited pork as an example: 75% of METRO’s meat turnover
in China comes from pork, whereas in Europe pork only contributes
10-20%. Additionally, the Chinese market is more heavily influenced
by seasonal factors, with 30% of business being done during the
Chinese New Year, a considerably higher fraction than business done
over Christmas in Germany. METRO is heavily investing in food quality
and safety in China with all stores having an HACCP certificate. More-
New Regulations Affect Labor Contract Law
Seminar
Dr. Duchetsmann and Mr. Koppitz
spoke about factors that are affecting
labor contracts in China. New
regulations for implementing the
Labor Contract Law, implemented in
January 2008, have been in effect
since 18 th September 2008, passed
by the State Council. These regulations
for implementation generally apply to all kinds of labor contracts
in China. The regulations are also applicable to accounting and law
firms, as well as to other partnerships and foundations.
Some of the factors mentioned were the written form of working contracts,
as well as fixed and open-ended contracts. All labor contracts,
with the exception of part-time contracts, need to be in written form.
December 2008 - January 2009 | 28
The German Chamber of Commerce in China
over, the group also introduced the “Star Farm” method to establish
the food standards, e.g. traceable strawberries.
Research amongst 3000 of METRO’s restaurant clients shows 75% still
prefer the wet market as their main source. The risk of fake or processed
food is still apparent, but people have become increasingly
aware about food safety issues since the melamine scandal.
METRO aims to create a product range tailored to the needs of its
market segments. Within the next few years, METRO will focus on professional
clients and adapt its portfolio accordingly.
Topic: Moderner Grosshandel in sich schnell veraendernden Maerkten
Speaker: Mr. Tino Zeiske | President - METRO JinJiang Cash & Carry
Co. Ltd.
Chair: Ms. Brigitte Wolff | Board Member - GCC • Shanghai, Managing
Director and Co-owner - MANAGEMENT ENGINEERS China Ltd.
At the latest the contracts must be signed within one month after the
actual work started. If this is not the case, employees are entitled
to twice their salary. There are currently no differences between the
termination of fixed and open-ended contracts. Moreover, the duration
of employment is a key component when calculating a claim to compensation
in the case of determination or non-prolongation of fixed
contracts.
Topic: New Implementation Regulations for the Labor Contract Law –
Important Points for Companies
Chair: Ms. Anna-Lisa Hartmann | Senior Manager Chamber Affairs -
German Chamber of Commerce in China • Shanghai
Speakers: Dr. Iris Duchetsmann | Beiten Burkhardt Rechtsanwaltsgesellschaft
Mr. Ralph Vigo Koppitz | Taylor Wessing

The German Chamber of Commerce in China
Shanghai - Chamber Events
www.china.ahk.de 29 | December 2008 - January 2009
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Chamber Events - Shanghai
Effective Outsourcing in China
JV Round Table
Mr. Kuehl represented the Materials Management, Purchasing and
Logistics Association (Bundesverband Materialwirtschaft, Einkauf und
Logistik e.V. – BME). The association is a partner of the Shanghai
International Sourcing Promotion Center, the organizer of the International
Sourcing Fair. It was at this fair the BME introduced a new
database containing information about reliable suppliers. The BME
imposed standards which suppliers had to meet to be accepted onto
the database.
Subsequently, the participants
discussed the differences
between sourcing in China and
in Europe. On the one hand,
sourcing in China is much more
affected by interpersonal relations.
On the other hand, the
European buying process is characterized
by standardizations.
One problem German suppliers are facing is that they often underestimate
the transportation cost from China to Germany.
Topic: Beschaffung in China für den lokalen und internationalen Markt
als Teil der globalen Unternehmensstrategie
Chair: Mr. Kurt Fasser | Senior Advisor - AHK
Speaker: Mr. Martin Kuehl | Chief Representative - BMENet GmbH
Shanghai Representative Office
December 2008 - January 2009 | 30
Online Marketing Tips
Workshop Marketing & Sales
The German Chamber of Commerce in China
Withholding Tax on Capital Gains
Tax, Finance and Law Workshop
The speakers informed the audience about the introduction of a withholding
tax on capital gains (Abgeltungssteuer), coming into effect
1 st January 2009. At the moment, capital gains from shares and bond
prices are tax free if they are earned within the first year of purchase.
This speculative period is to be abolished, along with other forms of
tax relief, e.g. the half-income taxation procedure (Halbeinkünfteverfahren).
Nevertheless, it is still
possible to make use of the current
regulations next year if a depot is
opened before the end of 2008. The
speakers concluded that the withholding
tax represents a significant
challenge to asset management.
Topic: Die Abgeltungssteuer – Jetzt den richtigen Zug machen
Speaker: Ms. Manuela Irtel von Brenndorff | MLP Finanzdienstleistug
en AG
Mr. Constantin Graf von Plettenberg | Feri Finance AG
Chair: Mr. Titus von dem Bongart | Ernst & Young Hua Ming-German
Business Center
Mr. Bareis of effective Marketing
Shanghai Co. Ltd. spoke at a
workshop focused on B2B, online
marketing and the fundamentals
of performance marketing. The
speaker listed the necessary conditions
for online marketing success.
He then defined the channels for
industry and discussed the different national/international search
engine optimization (SEO) and search engine marketing (SEM).
The presentation went into detail about getting the most effective
results from internet search engines in Germany. Back links are a key
element because they are the first piece of advertising you need.
It is essential to pay attention to the SEO basics and develop SEO
skills. He discussed SEM affiliates and the associated risks. He clearly
demonstrated it is of the utmost importance to regularly update
homepages and pay keen attention to directories and comply with
rules. A brief overview of online press and email newsletter marketing
followed.
For the last section of his workshop presentation, Mr. Bareis talked
about tracking, return on advertising spending (ROAS), marketing
budgets and how to find a successful mix.
Speaker: Mr. Hermann Bareis | President – effective Marketing Shanghai
Co. Ltd.
Chair: Ms. Brigitte Wolff | Managing Directors – Management Engineers
China Ltd.
Topic: B2B Online Marketing – How to succeed?

The German Chamber of Commerce in China
Sports Offer Prime Marketing Opportunities
Workshop Marketing & Sales
Generally speaking, the public finds sports sponsorship a more acceptable
advertising practice than other methods, due to its less-intrusive
nature. Competition rules are always being modified to increase public
appeal. For instance, in 2002 and 2006, the Olympic Games introduced
two new biathlon disciplines: the Pursuit and the Mass Start.
The speakers presented the criteria for successful advertising in
sports (e.g. an existing sporting tradition and scandal-free competition).
Table tennis meets this criteria and contenthouse GmbH
has acquired the global TV, internet and mobile rights of the DTTL
(German Table Tennis League) until 2014. Mainstream sports that
have traditionally attracted millions of TV viewers, such as football,
tennis, boxing, or Formula 1, are suffering from decreasing viewing
figures. This is largely due the fact that some have of them have
lost their national heroes, like Michael Schumacher in Formula 1 or
Boris Becker in tennis.
Shanghai - Chamber Events
Table tennis has significant potential with 205 federations worldwide
and 40m active players, as well as 300m hobbyists. The sport benefits
from added exposure in Germany, not least due to the success and
popularity of international player Timo Boll. The Olympian has almost
achieved cult status in China, where the sport is a national obsession.
As a result, table tennis is an ideal platform for cross-border marketing
between Germany and China.
Topic: Sports sponsorship – An effective way to increase brand
awareness
Speaker: Mr. Benno Neumueller | Managing Director and Founder -
contenthouse GmbH, Mr. Christian Baier | Head of Product Management
- contenthouse GmbH
Chair: Ms. Brigitte Wolff | Managing Director and Co-owner - MANAGE-
MENT ENGINEERS China Ltd.
www.china.ahk.de 31 | December 2008 - January 2009
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Introduction to the Water Business in China
Workshop Environmental Protection
Ms. Menant explained the
workshop was an opportunity
for participants to
exchange ideas about environmental
markets. She then
provided an overview of the
activities of econet china,
an industry initiative to
support companies through
the provision of reliable information and marketing assistance. The
initiative provides coordination for the joint industry marketing of
German sustainable solutions.
Mr. Ip continued with a general introduction to China’s water business.
The Chinese government has recognized the significance of water
shortages and pollution. The lack of wastewater treatment plants is a
consequence of urbanization - according to the United Nations Population
Fund, an estimated 18m people migrate to Chinese cities every
year. This rapid transformation should be accompanied by a substantial
investment in water distribution networks. Such investments are
Understanding Chinese Business Culture
Workshop HR
The intercultural management workshop
was characterized by lively
audience interaction and informative
discussion. Mr. Gusafsson led the
workshop by referring to the study:
“Intercultural Management – How
Managers Succeed in China.” This
study examines the issues surrounding the cultural difficulties Western
managers discover when doing business in China.
Mr. Gusafsson went into detail
describing the everyday differences
in the way Chinese and Westerners
conduct business. Many audience
members were familiar with the issues
he described, such as how meetings
are held or the way employees go
about addressing tasks. The speaker
gave useful tips on the techniques foreign managers can employ to
make the most out of working in a Chinese environment. The differing
work patterns of Westerners and Chinese were explained as a consequence
of different educational systems and separate cultural experiences.
Despite this, the Chinese and German audience agreed that
business outcomes are largely dependant on the effort and expertise
of the individual concerned.
Topic: Intercultural Management – How Managers Succeed in China
Chair: Mr. Rolf Koehler | Director Human Resources Asia - Freudenberg
Management (Shanghai) Co. Ltd.
Speaker: Mr. Tomas Gustafsson | Managing Director - CONCHIUS
(Shanghai) Ltd.
December 2008 - January 2009 | 32
The German Chamber of Commerce in China
underway, but the Ministry of Construction says foreign investments
only accounts for less than 10% of total investment volume in the
sector.
All 7 major river systems in China are suffering from pollution, and
28 major lakes have problems with eutrophication (excessive nutrient
input). Furthermore, the waste water treatment rate was less than
60% in 2007. Government attempts to rectify these problems with
targeted investments have increased as part of China’s 11 th Five-Year
Plan. One result has been high waste water treatment rates in major
cities, such as Beijing (up to 90%). In spite of this achievement,
reaching the target of 70% treatment rate in areas designated as
municipalities is going to require even more work.
Chairman: Daniel Tweer | Business Development Manager - REMONDIS
Shanghai Rep. Office
Speakers: Ms. Magali Menant | Manager - Building, Energy & Environment,
econet china, German Industry and Commerce (Shanghai) Co.
Ltd, Mr. Stephen Ip | Partner - Property and Infrastructure Transaction
Services, KPMG Shanghai
Organizing Secondments to China
Workshop Tax, Finance & Law
The Breakfast Seminar dealt with
topics relating to the secondment of
employees from Germany to China. Dr.
Marcus Longino and Dr. Iris Duchetsmann
spoke of the factors that have to
be considered when approaching tax
and labor regulations. Aspects relating
to the right of residence were also discussed as well as any issues of
liability relating to German and Chinese taxation respectively.
The speakers also referred to the issues affecting cross border social
insurance provision. Germany and China have concluded a social insurance
treaty which should prevent seconded employees having to pay
double contributions to both countries. The treaty covers the areas
of statutory unemployment and pension funds but not healthcare,
nursing provision or statutory accident insurance. The speakers then
informed the audience of how to go about voluntarily insuring oneself
for almost all the areas of the German social insurance model.
The speakers demonstrated how to draft contracts for employee secondments,
paying particular attention to the unique situation in
China. They suggested what factors need to be closely considered, e.g.
the terms regulating the details of the employees return to their home
country.
Topic: Mitarbeiterentsendung von D nach CN (English)
Chair: Mr. Titus von dem Bongart | Partner and Head - Ernst & Young
Hua Ming-German Business Center
Speakers: Dr. Iris Duchetsmann | Attorney at Law - Beiten Burkhardt
Rechtsanwälte, Dr. Marcus Longino | Attorney at Law and Partner -
Beiten Burkhardt Rechtsanwälte

The German Chamber of Commerce in China
www.china.ahk.de 33 | December 2008 - January 2009
Chamber Events

Chamber Events
German Ambassador Stresses Importance of Sino-German Ties
Dr. Michael Schaefer, German Ambassador to the People’s Republic of
China, delivered his speech on Sino-German relations after the Olympics
to a full house of over 200 guests. Opening by recounting the
tumultuous events of 2008, he underlined the perseverance of the
Chinese people, and their growing solidarity with the world.
Contrary to the
predictions of
many Western
media outlets, the
Beijing Olympics
went peacefully
and smoothly – a
shining success for
the new face of China. Indeed, many German media outlets had not
given an entirely objective view of China – which he strongly criticized.
He stressed putting China’s development, both socio-economic
and political, into perspective, noting that it took Germany the better
part of a century to become a strong economy with a democratic tradition.
Likewise, Germany experienced many highs and lows on the
road to its current model – and some of the lows were painfully low
throughout the 1900s. As a result, he urged both the German media
and German officials to consider the history of their own country as
well as China before jumping to conclusions.
That does not mean, however, that Germany should not bring delicate
topics to the table. Sino-German relations have thawed significantly
December 2008 - January 2009 | 34
JV Round Table
The German Chamber of Commerce in China
over the past year since political disagreements arose, setting the
stage for continued intense diplomatic efforts on both economic and
political issues.
Ambassador Schaefer calculated that 100m Chinese citizens are still
below the poverty line. However, there are just as many now in the
middle class, with 200m more positioned to join them over the next
few years. Clearly, this demonstrates that China’s economic growth is
benefiting the general populace, and that this extraordinary growth
has changed its place in the world.
Growth has not come without structural and social challenges. Despite
the promising figures, the gap between rich and poor is still very real.
Infrastructure development in China’s interior has begun more slowly
than in major cities on China’s coast. China’s population with age
rapidly, with 50% of the population over 60 years of age by 2040 –
a problem often over-looked by outsides. The Ambassador urged the
government to address these issues quickly and efficiently.
Germany is China’s most important trading partner in Europe, and
China is one of Germany’s most important partners. The two countries
need each other, especially in the current world financial situation.
Ambassador Schaefer emphasized that China has arrived at a point
where the environment, scientific research, and rule of law have
become increasingly important, and these developments would prove
favorable to China’s relationship with Europe.
Event: Chamber Meeting: Sino-German Relations after the Olympics
Chair: Mr. Arved von zur Mühlen | Chairman - GCC • Shanghai, Managing
Director Greater China - Lufthansa German Airlines
Speaker: Dr. Michael Schaefer | German Ambassador to China
The high speed railway line
between Beijing and Tianjin
has been operating since the 1 st
August 2008. The project was
planned and built in just 27
months by a team of 600 people
from 20 countries. The speaker referred to several challenges that were
caused by intercultural communication differences. A similar line has
been constructed the Netherlands which took 54 months.
The main part of the 116.5km double track links two newly built stations
in Beijing and Tianjin. Beijing Nan is the biggest station in Asia
with 24 tracks. Along the line, there are three more stations. Currently,
around 45,000 passengers are transported every day. During the
Olympic Games, the occupancy rate was around 98%.
Topic: Fuer 5 Euro mit 350km/h ueber 130km mit ICE-Technologie von
Peking nach Tianjin – pünktlich gestartet – die ersten 100 Tage im
Betrieb
Speaker: Mr. Herr Harald Klein | Project Leader - Siemens Ltd. China
Transportation Systems
Chair: Mr. Kurt Fasser | Senior Advisor – AHK

The German Chamber of Commerce in China
Building Environmental Sustainability
Workshop Construction
The speakers informed the audience that the Chinese government
intends to make building construction projects more environmentally
sustainable. The objective is to construct buildings which save more
energy, water, material and space. Currently the program is still in the
beginning phases. Mr. Yang described the future efforts the government
and private sector intend to make in the area of sustainability
and construction.
The objective is to increase the
number of buildings constructed
with reusable energy by 25%
before the end of 2010. Energy
conservation is also a high priority,
with a roadmap to improveing
building insulation, especially
doors and windows. Energy con-
New Business Models in the Automotive Industry
Workshop Automotive Industry
The two speakers from MBtech China offered their thoughtful insights
into the transformation of business models in the automotive industry.
Mr. Monden focused on statistics relating to the MBtech Group. He
introduced the four market sectors in which MBtech is currently active,
namely powertrain solutions, vehicle engineering, consulting and electronic
solutions.
Ms. Kirner drew attention to methods of developing healthy and productive
relationships with Chinese partners and suppliers. The fastchanging
economic system and complex legal and cultural issues
Combating the Counterfeiters
Workshop Marketing & Sales
The first cases of counterfeiting were recorded in Babylon, in 500 B.C.
Nowadays it’s a global problem and Mr. Futterer examined several real
examples of how companies have suffered from the practice.
The price sensitivity of consumers is one reason for the growth of
counterfeiting practices. A strong supply of counterfeit goods is
also the result of lenient sentencing. Although it is worth bearing in
mind that in China, only 3% of all IP disputes are affecting foreign
companies.
Companies should be aware of this problem and follow an established
anti-counterfeiting strategy. For doing so, Mr. Futterer introduced
sumption from air conditioners,
elevators and domestic lighting
will also be reduced. Mr. Yang concluded
that it’s crucial to reduce
the overall energy consumption of
a building throughout its entire
lifespan, and that as the green
technology market grows, the
Chinese market will use more technologies developed in Europe.
Topic: Neue Normen der chinesischen Regierung zu energieeffizientem
Bauen – Status Quo und Quo Vadis?
Speaker: Mr. Xiwei Yang | Energy Saving Center
Chair: Mr. Zhuang Wie | Shanghai Sto Ltd.
Ms. Magali Menant | econet china
require the development of a new method of targeted project management.
Cross Company Collaboration has to focus on important aspects
such as interface management, methodology and tool implementation,
and of course human resources. Standardized models have to be
binding on all parties and collaboration has to be intense from the
very first moment of cooperation.
To explain this kind of working model, she gave a short example of
a successful project which was followed by a lively discussion. The
evening ended with a buffet and the opportunity for further exchange
of participants’ viewpoints.
Topic: New Business Models in the Automotive Industry Challenging
OEM’s, Suppliers and Service Partners – how are we affected in China?
Chair: Dr. Harald Neumann | Senior Manager - Technical Centre UAES
Automotive Electronic Systems
Speakers: Mr. Tobias Monden | Managing Director - MBtech China
Ms. Yvonne Kirner | Manager and Senior Trainer - MBtech China
several authentication devices, e.g.
color changing ink and holograms
among others. He made clear that
a strategy with several levels of
inspection is more efficient.
Topic: Strategies to Protect IP and
Brand Value
Chair: Mr. Ferdinand Pillenstein |
Project Manager - German Chamber
of Commerce in China - Shanghai
Speaker: Mr. Alfons Futterer | NanoMatriX International Ltd.
www.china.ahk.de 35 | December 2008 - January 2009
Chamber Events

Around Town – Beijing
German Centre
Chamber Dinner
Tianjin Opening

Airbus
CDM
Siemens
Around Town – Beijing
Tianjin Water

Around Town – Guangzhou
Oktoberfest Shenzhen 2008
4 th – 9 th November 2008
The Crowne Plaza Hotel hosted the Oktoberfest Shenzhen, co-organized by the German Chamber of Commerce • Guangzhou. While enjoying the fresh
beer, (specially brewed for this event by Braumeister Ulrich), the Bavarian band Münchner Musikanten got the audience fired up.
The international community of Shenzhen rocked
through 6 unforgettable nights.

Around Town – Guangzhou

Around Town – Shanghai
Project Integration Outing
20 th September 2008
Project Integration is a charity supporting the education
of migrant children and was founded by members of the
German community. The German Chamber of Commerce
• Shanghai supports the initiative through publicity and
monetary means. For the annual outing sponsored by GCC
• Shanghai, Chamber team members organized a day at
Sheshan’s Shanghai Sculpture Park in cooperation with the
volunteers of Project Integration.
Over 160 children spent the day making the most of the
park jumping, climbing, running and splashing one another
in the water park area. At the end of the day, they cheerfully
accepted Frisbees, diabolos and soft toys donated by
the German Centre and Schenker. The Chamber Team extends
its gratitude to all parties and organizations that helped
make this year’s outing a great success!

Shanghai IT Day
22 nd October 2008
Around Town – Shanghai
The Shanghai IT Day has become the most successful non-profit IT event in Shanghai. Held at the Sofitel Hyland hotel, the event hosted a series
of workshops featuring hot topics and knowledgeable speakers from the field. Partners, customers, vendors and IT executives joined the event for a
pleasant day of networking and information exchange.
Trade Fair