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Beijing • Guangzhou • Shanghai<br />

IN THIS ISSUE:<br />

August - September<br />

2008<br />

<strong>Minister</strong> <strong>Steinmeier</strong><br />

Cover Story: Sino-German Relations<br />

Female Managers in China| Chamber Gears up for the Games| Taiwan Night Markets Unqiue Experience


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GCC Board<br />

Beijing<br />

* All-China Board member<br />

August - September 2008 | 2<br />

Siemens Ltd. China<br />

President and CEO<br />

Dr. Richard Hausmann *<br />

Chairman<br />

KPMG Huazhen Certified Public<br />

Accountants<br />

Partner Audit<br />

Mr. Andreas Feege<br />

Treasurer<br />

Lufthansa German Airlines<br />

Chief Representative for China<br />

Mr. Gregor Wende<br />

German National<br />

Representative to the EUCCC<br />

German Chamber Beijing<br />

Executive Director<br />

Ms. Jutta Ludwig *<br />

Delegate & Chief Representative<br />

Delegation of German Industry<br />

& Commerce Beijing<br />

Deutsche Bank (China) Co. Ltd.<br />

Beijing Branch<br />

Director, Head of Corporate Banking<br />

Coverage, China<br />

Mr. Eddy Henning<br />

Gruner+Jahr (Beijing)<br />

Advertising Co. Ltd.<br />

General Manager & President<br />

Mr. Wolfgang Kohl<br />

Volkswagen (China)<br />

Investment Co. Ltd.<br />

Executive Vice President,<br />

Finance Department<br />

Dr. Jörg Mull<br />

Bayer (China) Ltd.<br />

Vice President, Corporate Social<br />

Responsibility Greater China<br />

Mr. William Valentino<br />

Daimler Northeast Asia Ltd.<br />

Chairman & CEO<br />

Mr. Ulrich Walker<br />

Shanghai Guangzhou<br />

Lufthansa German Airlines<br />

Managing Director Greater China<br />

Mr. Arved von zur Mühlen *<br />

Chairman<br />

Bosch (China) Investment Ltd.<br />

Executive Vice President<br />

Mr. Elmar E. Weitzel<br />

Vice Chairman<br />

Vossloh Fastening Systems<br />

(China) Co. Ltd.<br />

CEO<br />

Mr. Thomas Dorn<br />

Treasurer<br />

German Chamber Shanghai<br />

Executive Director<br />

Mr. Manfred Rothgänger *<br />

Delegate & Chief Representative<br />

Delegation of German Industry<br />

& Commerce Shanghai<br />

Beiten Burkhardt Rechtsanwaltgesellschaft<br />

mbH<br />

Shanghai Representative<br />

Office<br />

Chief Representative<br />

Mr. Rainer Burkardt<br />

Siemens Shanghai Medical<br />

Equipment Ltd.<br />

President and CEO<br />

Dr. Rolf Hupke<br />

POLYMAX (Shanghai) Trading<br />

Co. Ltd.<br />

Chairman of the Board<br />

Mr. Ulrich Mäder<br />

Allianz China Life Insurance<br />

Co. Ltd.<br />

CEO<br />

Mr. Christian Molt<br />

Management Engineers<br />

China Ltd.<br />

Managing Director<br />

Ms. Brigitte Wolff<br />

The German Chamber of Commerce in China<br />

Trolli Confectionery Co. Ltd.<br />

Guangzhou<br />

General Manager<br />

Mr. Michael Stein *<br />

Chairman<br />

German Chamber Guangzhou<br />

Executive Director<br />

Ms. Alexandra Voss *<br />

Delegate & Chief Representative<br />

Delegation of German Industry &<br />

Commerce Guangzhou<br />

Lufthansa German Airlines<br />

Guangzhou<br />

General Manager, Southern China<br />

Mr. Nico Beilharz<br />

TCA Ltd. The Cable Assembler<br />

Dongguan<br />

CEO / President<br />

Mr. Frank Jaeger<br />

VA TECH ELIN Transformer<br />

Guangzhou Co. Ltd. (Siemens<br />

Group)<br />

General Manager<br />

Mr. Dirk Soete<br />

C. Melchers GmbH & Co. KG<br />

Guangzhou & Chongqing<br />

Representative Offices<br />

Inspirion GmbH Guangzhou<br />

Representative Office<br />

Chief Representative<br />

Ms. Renate Tietjen


The German Chamber of Commerce in China<br />

www.china.ahk.de 3 | August - September 2008


Preface<br />

The GC Ticker is the internal bi-monthly newsletter<br />

of the German Chamber of Commerce in China.<br />

Publisher<br />

German Chamber of Commerce in China<br />

Managing Editor<br />

Ms. Kristen Robinson (Shanghai)<br />

Editorial Team<br />

Mr. Walter Jansen (Beijing)<br />

Mr. Kilian Becker (Guangzhou)<br />

GC Ticker is free of charge. For subscription or<br />

extra copies please email your nearest Chamber<br />

office<br />

Germany at the Games special supplement<br />

edited by GCC • Beijng<br />

Other issues of the magazine can be found on<br />

our website: www.china.ahk.de/publications<br />

For editorial or sponsorship inquiries please<br />

contact:<br />

German Chamber of Commerce in China<br />

Beijing Office<br />

German Chamber of Commerce<br />

in China • Beijing<br />

0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd.<br />

Chaoyang, Beijing 100004<br />

Tel: +86-10-6590 0926 ext. 308<br />

Fax: +86-10-6590 6313<br />

Email: jansen.walter@bj.china.ahk.de<br />

Guangzhou Office<br />

German Chamber of Commerce<br />

in China • Guangzhou<br />

2915 Metro Plaza, Tianhe (N) Rd.<br />

Guangzhou 510620<br />

Tel: +86-20-8755 2353<br />

DL: +86-20-8755 8203<br />

Fax: +86-20-8755 1889<br />

Email: becker.kilian@gz.china.ahk.de<br />

Shanghai Office<br />

German Chamber of Commerce<br />

in China • Shanghai<br />

29F, POS Plaza, 1600 Century Ave.<br />

Pudong, Shanghai 200122<br />

Tel: +86-21-5081 2266, ext. 1637<br />

Fax: +86-21-5081 2009<br />

Email: robinson.kristen@sh.china.ahk.de<br />

© 2007-2008. German Chamber of Commerce in China.<br />

No part of this publication may be reproduced without<br />

the publisher’s prior permission. While every effort has<br />

been made to ensure accuracy, the publisher is not responsible<br />

for any errors. Views expressed are not necessarily<br />

those of GIC/GCC.<br />

August - September 2008 | 4<br />

The Games Are Here!<br />

Dear Reader,<br />

After years of anticipation, the Beijing<br />

2008 Olympic Games and Paralympic Games<br />

are here. They will have lasting significance<br />

for China’s further domestic development<br />

and its global presence. Numerous German<br />

companies have participated in providing<br />

solutions for China’s Olympic preparations<br />

that will make long term improvements in<br />

infrastructure, transportation, environmental<br />

protection, the efficient use of energy<br />

and sustainable urban development. These<br />

projects will serve as models for development<br />

throughout China in the coming<br />

years, and will not only improve the lives of<br />

the Chinese people, but also the well-being<br />

of billions around the globe, as the air and<br />

water become cleaner and fewer resources<br />

are used.<br />

German Vice-Chancellor Frank Walter <strong>Steinmeier</strong>’s<br />

opening of the Chongqing Dialogue<br />

on Urbanization in June was a symbol<br />

of the importance Germany attaches to<br />

these developments. Under the umbrella<br />

of Germany and China – Moving Ahead<br />

Together, the urbanization conference was<br />

the first in a number of similar dialogues<br />

on sustainability planned for other cities<br />

around China.<br />

Well-equipped with the German Chamber’s<br />

Beijing 2008 Pocket Guide, visitors from<br />

overseas and across China are streaming<br />

to Beijing and the other host cities to<br />

enjoy the feeling of sporting competition,<br />

see the sights and soak up the culture.<br />

Created by the German Chamber of Commerce<br />

in China • Beijing in preparation<br />

for the Games, the Guide provides detailed<br />

information about the land and its people.<br />

The German Chamber of Commerce in China<br />

Visitors seem truly stunned by the sights<br />

and the audacious Olympic venues. They<br />

would be even more impressed if they<br />

knew the details of the low voltage power<br />

circuits, rainwater recovery systems, solar<br />

power generation, special reflective coatings,<br />

transportation, medical and lighting<br />

systems, and, yes, the artwork that<br />

Germans have contributed to the Olympic<br />

sites and supporting infrastructure. In the<br />

20 page Olympic Supplement to this issue<br />

of the GC Ticker, we are presenting a sampling<br />

of these activities as well as what’s<br />

hot in sports, how Germans are involved,<br />

and what the Olympics and Paralympics<br />

are all about.<br />

In all of the joy of the Olympics, however,<br />

we must not forget the sorrow of those in<br />

China’s southwest, who experienced the<br />

tragic Sichuan earthquake. We continue to<br />

offer our condolences and are proud of the<br />

significant sum of money raised by our<br />

member companies and their employees,<br />

the generous contributions made by the<br />

German people, and the ambitious plans<br />

to rebuild schools in the affected areas<br />

being coordinated by the German government.<br />

Numerous German companies sent<br />

medical supplies and equipment, water<br />

treatment plants, power supplies, battery<br />

powered lighting, power tools, and food in<br />

the first hour of need. The fully equipped<br />

field hospital provided by Germany surely<br />

promoted the rapid recovery of many.<br />

During this great challenge, the Chinese<br />

people continue to persevere in the true<br />

spirit of Olympians and Paralympians. We<br />

wish China a memorable Olympics and<br />

Sichuan a successful recovery!<br />

Enjoy reading!<br />

Dr. Richard Hausmann<br />

Chairman of the German Chamber of Commerce in China, Beijing<br />

President and CEO of Siemens Ltd. China


The German Chamber of Commerce in China<br />

10<br />

12<br />

14<br />

16<br />

20<br />

26<br />

28<br />

36<br />

38<br />

40<br />

42<br />

Business Focus<br />

Sino-German Dialogue Revived<br />

<strong>Minister</strong> <strong>Steinmeier</strong> and Chinese<br />

officials inject new energy into<br />

bilateral relations<br />

Holding up Half the Sky<br />

Five female German managers share<br />

their experiences working in China<br />

Chinese Market Demands<br />

Fast-Paced Business IQ<br />

Regional Spotlight:<br />

Xi’an - More than History<br />

Changzhou- Small Town Feel,<br />

Big City Plans<br />

Yunnan - Gateway to ASEAN<br />

Chamber News<br />

Beijing<br />

Chamber events highlight<br />

implications of Olympics, and how<br />

they will affect German businesses<br />

Guangzhou<br />

Guangzhou soccer fans cheer on<br />

German team<br />

Shanghai<br />

Chamber members share how they’ve<br />

contributed to Sichuan relief efforts<br />

and welcome more ideas for<br />

long-term reconstruction support<br />

from the German community<br />

Around Town<br />

All China<br />

Beijing<br />

Guangzhou<br />

South China celebrates Dragon Boat<br />

Festival<br />

Shanghai<br />

Soccer fans join together to cheer<br />

on Germany at the European Cup<br />

18<br />

28<br />

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23<br />

40<br />

66<br />

Contents<br />

Members Mix<br />

Meet the Member<br />

Member News<br />

Updates from our member companies:<br />

relocations, new management,<br />

community events and anniversaries<br />

Community<br />

Expo in Brief<br />

Sichuan earthquake survivors visit<br />

Expo site, Shanghai steps up<br />

environmental regulations<br />

Health<br />

Learn how you can reduce<br />

office job back pain<br />

Training Courses<br />

Education<br />

How to attract and retain the right<br />

talent for your company<br />

Environment<br />

Is your office green? Participate in<br />

a free eco-office audit to find out<br />

how you can save the environment<br />

- and office supply costs<br />

Travel<br />

Snacks and bargains make Taiwan’s<br />

night markets attraction for<br />

travelers in Asia<br />

Art, Culture & Books<br />

German films featured at Shanghai<br />

Film Festival, Florian Schilling’s My<br />

Mother’s Tears wins Best<br />

Cinematography<br />

Community Calendar<br />

Competitions<br />

Benefit Program Update<br />

Two new South China partners and<br />

one venue closing in Shanghai<br />

Chamber Events Calendar<br />

Interchamber mixers, a special<br />

environmental seminar,<br />

beer festivals and a visit from<br />

Deutsche Bank’s Prof. Walter keep<br />

the autumn months rolling<br />

www.china.ahk.de 5 | August - September 2008<br />

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46<br />

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62<br />

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Chamber Teams<br />

Join Our Growing<br />

Network<br />

Now at Half Price<br />

Take advantage of our<br />

comprehensive, Chinawide<br />

network of German compa-<br />

nies. Six month memberships<br />

lasting through December<br />

2008 available at half price.<br />

Contact your local Chamber<br />

for details.<br />

Beijing<br />

Ms. Katrin Loch<br />

010 6590-6930<br />

Email: loch.katrin@bj.china.ahk.de<br />

Guangzhou<br />

Mr. Kilian Becker<br />

020 9755-8203<br />

becker.kilian@gz.china.ahk.de<br />

Shanghai<br />

Ms. Heidrun Buss<br />

021 5081-2266 ext. 1656<br />

buss.heidrun@sh.china.ahk.de<br />

June August - July - September 2008 | 62008<br />

| 6<br />

Beijing<br />

Guangzhou<br />

Shanghai<br />

Ms. Katrin Loch<br />

Executive Chamber Manager<br />

Tel: 010 6590-6930<br />

Email: loch.katrin@bj.china.ahk.de<br />

Ms. Claudia Barkowsky<br />

Regional Manager North China<br />

Tel: 010 6590-0926 ext. 329<br />

Email: barkowsky.claudia@bj.china.ahk.de<br />

Mr. Kilian Becker<br />

Manager Membership & Events<br />

Tel: 020 8755-8203<br />

Fax: 020 8755-1889<br />

Email: becker.kilian@gz.china.ahk.de<br />

Ms. Anna-Lisa Hartmann<br />

Senior Manager Chamber Affairs<br />

Tel: 021 5081-2266 ext. 1630<br />

Fax: 021 5081-2266 ext. 5630<br />

Email: hartmann.anna-lisa@sh.china.ahk.de<br />

Ms. Heidrun Buss<br />

Project & Event Manager Shanghai<br />

Tel: 021 5081-2266 ext. 1656<br />

Fax: 021 5081-2266 ext. 5656<br />

Email: buss.heidrun@sh.china.ahk.de<br />

Ms. Li Yandi<br />

Project Manager<br />

Tel: 021 5081-2266 ext. 1609<br />

Fax: 021 5081-2266 ext. 5609<br />

Email: li.yandi@sh.china.ahk.de<br />

The German Chamber of Commerce in China<br />

Ms. Lina Sun<br />

Chamber Affairs Management<br />

Tel: 010 6590-0926 ext. 210<br />

Email: sun.lina@bj.china.ahk.de<br />

Mr. Walter Jansen<br />

Publications Manager<br />

Tel: 010 6590-0926 ext. 308<br />

Email: jansen.walter@bj.china.ahk.de<br />

Ms. Esther Hu<br />

Chamber Assistant<br />

Tel: 020 8755-2353 ext. 217<br />

Fax: 020 8755-1889<br />

Email: hu.esther@gz.china.ahk.de<br />

Ms. Kristen Robinson<br />

Publications & Marketing Manager<br />

Tel: 021 5081-2266 ext. 1637<br />

Fax: 021 5081-2266 ext. 5637<br />

Email: robinson.kristen@sh.china.ahk.de<br />

Mr. Ferdinand Pillenstein<br />

Regional Manager Zhejiang & Jiangsu Provinces<br />

Tel: 021 5081-2266 ext. 1830<br />

Fax: 021 5081-2266 ext. 5830<br />

Email: pillenstein.ferdinand@sh.china.ahk.de<br />

Ms. Liu Li<br />

Chamber Team Assistant<br />

Tel: 021 5081-2266 ext. 1650<br />

Fax: 021 5081-2266 ext. 5650<br />

Email: liu.li@sh.china.ahk.de


The German Chamber of Commerce in China<br />

Contents<br />

www.china.ahk.de 7 | August - September 2008


Business Focus<br />

Chamber Notices<br />

August - September 2008 | 8<br />

ALL CHINA<br />

Germany Responds to Sichuan<br />

Earthquake<br />

The German Chamber of Commerce in China would like to extend<br />

its gratitude to all member companies who took immediate<br />

action to support the victims of the Sichuan earthquake. Over<br />

the past three months, companies have donated items ranging<br />

from medical supplies and tents to construction equipment and<br />

logistics services.<br />

Estimates put the total of public and private donations from<br />

Germany at over EUR 20m. According to a GCC • China press<br />

release on May 23 rd , German companies in China donated EUR<br />

9m. The German Chamber of Commerce in China donated EUR<br />

100,000 on behalf of its members.<br />

In the near future, the Chamber plans to host a platform for<br />

companies interested in funding a long-term project to find<br />

likeminded partner companies. These groups of companies aim<br />

to coordinate enough funding and manpower to rebuild schools<br />

or urban environments struck by the quake.<br />

GUANGZHOU<br />

New Chairman of the Board<br />

On 29 th May, the board of the German Chamber of Commerce •<br />

Guangzhou elected Mr. Michael Stein, General Manager of Trolli<br />

Confectionery Co. Ltd, as its chairman. Together with Executive<br />

Director Alexandra Voss he will also represent the interests of<br />

GCC • Guangzhou on the All-China Board.<br />

OKTOBERFEST 2008 Guangzhou<br />

16 th -21 st September<br />

New Location<br />

Although the China Hotel – A Marriot Hotel is again the coorganizer,<br />

the 4 th Oktoberfest in Guangzhou will take place in a<br />

new location. Opposite the China Hotel in front of the Jinhan<br />

Centre, the new tent will host more than 3,000 guests during<br />

the event period from 16 th to 21 st September 2008.<br />

New Band<br />

Already established in German-speaking countries as guarantors<br />

of fun and quality, the band Wirbelwind will perform for 6 days<br />

in Guangzhou, presented by GCC • Guangzhou. Don’t miss their<br />

program which includes the traditional duck dance and highly<br />

surprising new show elements never seen before in South China!<br />

The 4 members of the band will be accompanied by 21 year-old<br />

singer Michaela who has recently released her first CD.<br />

New Competition<br />

While the food and the beer will certainly be German, there will<br />

be a rather international competition for the crowning of Miss<br />

Oktoberfest. An “experienced” judging panel will pre-elect the<br />

Top 10, while the audience will make the final call on which<br />

Guangzhou beauty will win the title. Meet and celebrate the<br />

beauties on site in September!<br />

The German Chamber of Commerce in China<br />

German Chamber Opens Office in Tianjin<br />

In May 2008, the German Chamber of Commerce in China, Beijing opened an<br />

office in the city of Tianjin. This important step serves to reinforce the Chamber’s<br />

commitment to the region and provides a base from which to serve the<br />

rising number of Chamber members and monitor the developments in the<br />

region. An official opening ceremony will be held in September 2008.<br />

Ms. Claudia Barkowsky | Email: barkowsky.claudia@bj.china.ahk.de<br />

3 Yuliang Road, Nankai District, Tianjin 300191<br />

OUT NOW: Beijing 2008 Pocket Guide<br />

The Beijing 2008 Pocket Guide will make finding your way in Beijing easier,<br />

no matter whether you are a first time visitor or a Beijing resident. It provides<br />

essential information regarding travel precautions, the Olympic Games, top<br />

sights in Beijing and China and emergency contacts, as well as a listing of frequently<br />

used addresses and a Beijing city map.<br />

Ms. Constanze Boening | Tel: 010 6590-0926 ext. 201<br />

Email: boening.constanze@bj.china.ahk.de<br />

Last Minute Ball Sponsorships Available<br />

Don’t miss out – only a few sponsorship positions for the 8th German Ball in<br />

Beijing are left. The categories are Diamond, Gold, and Silver. Each category<br />

assures your company outstanding exposure and gives you and your employees<br />

significant benefits.<br />

Ms. Lina Sun | Tel: 010 6590-0926 ext. 210 | Email: sun.lina@bj.china.ahk.de<br />

SHANGHAI<br />

Kunshan International Beer Festival<br />

Back by popular demand, GIC Taicang will host a German tent at the 4 th<br />

Kunshan International Beer Festival. Last year’s festival saw 400,000 participants,<br />

and the city of Kunshan expects to welcome even more from around the<br />

world in 2008. Die Emsperlen and Die Schwabenlaedner Musikanten will fly<br />

in from Germany to perform at the German tent. Join us at the German Tent<br />

during the week of 28 th August – 7 th September for authentic German cuisine<br />

and 5 different fresh drafts brewed especially for this annual event.<br />

Mr. Richard Xu | Tel: 021 5081-2266 ext. 1677<br />

Email: xu.hongmin@sh.china.ahk.de<br />

Ms. Christine Schütze | Tel: 021 5081-2266 ext. 1684<br />

Email: schuetze.christine@sh.china.ahk.de | Web: www.china.ahk.de/beerfestival<br />

Shanghai Daily German Supplement<br />

BEIJING<br />

The Shanghai Daily will feature a German Supplement this October in honor of<br />

German National Day. As well as featuring stories about the activities of German<br />

business in Shanghai and China, the supplement will celebrate the 36 th anniversary<br />

of the establishment of diplomatic relations with China. Opportunities to<br />

provide advertising support for Shanghai Daily’s German National Day supplement<br />

are also available.<br />

A feature will be ‘testimonials’ from leading German political and business<br />

figures commenting on why the nation’s involvement in China is important for<br />

both countries. The supplement also will carry a story about German Chamber<br />

of Commerce Shanghai and its activities.


Business Focus<br />

Cover Story<br />

August - September 2008 | 10<br />

The German Chamber of Commerce in China<br />

Sino-German Dialogue Revived<br />

<strong>Steinmeier</strong> and Chinese officials inject new energy into bilateral relations<br />

The Dialogue on Urbanization<br />

© Goethe-Institut Peking / Jiang Ziwei<br />

German Foreign <strong>Minister</strong> Frank Walter <strong>Steinmeier</strong>’s visit to China in mid-<br />

June reignited talks between the two countries. Stopping first in the<br />

capital, the foreign minister moved on to a Yangtze River boat tour,<br />

attended a conference on urbanization in Chongqing and visited the<br />

earthquake zone. During his visit, <strong>Minister</strong> <strong>Steinmeier</strong> covered topics<br />

ranging from business transparency to urbanization. Officials on both<br />

sides approached bilateral talks with a newfound enthusiasm and open,<br />

frank attitude.<br />

Officials Talk Policy Substance in Beijing<br />

In Beijing, <strong>Minister</strong> <strong>Steinmeier</strong>’s visit included meetings with Chinese<br />

Premier Wen Jiabao and the State Council’s highest-ranking foreign<br />

policy official, Dai Binguo. Premier Wen spent nearly twenty minutes<br />

detailing China’s effort to create transparent conditions for foreign business;<br />

in its legal framework, in intellectual property protection and in<br />

the ongoing opening of the country - efforts which the German foreign<br />

minister acknowledged gratefully later that day.<br />

Lengthy talks with China’s Foreign <strong>Minister</strong> Yang Jiechi resulted in the<br />

fundamental recognition that the Sino-German relationship is of great<br />

importance. Calling the enhancement of bilateral relations “a top-priority<br />

item for both the Chinese and German governments” after the<br />

meetings, <strong>Minister</strong> Yang reinforced <strong>Minister</strong> <strong>Steinmeier</strong>’s assessment<br />

that future Sino-German dialogue would be “broad and resilient.” This<br />

improved outlook will allow both parties to handle issues such as visa<br />

requirements and perspectives on the Dalai Lama effectively.<br />

The Sino-German Strategic Dialogue at the Vice-<strong>Minister</strong>ial level on<br />

security and economic questions, and the Human Rights Talks will be<br />

resumed in the second half of 2008. Furthermore, the talks will be<br />

enhanced with new areas of discussion including climate change and<br />

cooperation on crisis spots in Africa.<br />

Implications for Global Policy<br />

<strong>Minister</strong> <strong>Steinmeier</strong> used his stay in Beijing to address broader foreign<br />

policy ideas on a global level. He coined the expression “Verantwor-<br />

tungspartnerschaft” (partnership in shouldering global responsibility)<br />

to characterize his view of future Sino-German relations concerning the<br />

environment, and political and economic issues associated with it.<br />

In a global foreign policy statement, <strong>Steinmeier</strong> called upon global<br />

powers to “re-measure the world.” He stated that upon doing so, it<br />

would become apparent that the formation of new economic and political<br />

blocks to replace the old would be counterproductive.<br />

He stressed the need for government and society everywhere to be “open<br />

and willing to modernize.” Such openness also entails “open dialogue<br />

between government and society, including the capacity for criticism,”<br />

although he warned that dialogue consisting only of criticism would<br />

quickly turn stale.<br />

Foreign <strong>Minister</strong> Consults Community Leaders<br />

In addition to talks with political leaders, <strong>Minister</strong> <strong>Steinmeier</strong> met<br />

several groups of the Beijing community. At a breakfast held at the<br />

German Embassy, he discussed various issues with 5 civilian leaders<br />

ranging from a university professor to a human rights lawyer. He fielded<br />

tough questions from students on capitalism, democracy, the depiction<br />

of China in the German media, and even the German chancellor herself<br />

at the China Foreign Affairs University.<br />

Finally, he attended the opening of two German art exhibits in Beijing.<br />

The exhibits represent the largest cooperation between German and<br />

Chinese museums ever – the ‘Gerhard Richter’ and ‘Living Landscapes’<br />

exhibits at the National Art Museum of China (NAMOC). His discussions<br />

with community members aim to foster promising ties between the<br />

people of China and Germany on a social and cultural level.<br />

Chongqing Events Continue Candid Discourse<br />

In Chongqing, often dubbed the world’s largest municipality, the<br />

frank manner demonstrated in Beijing was continued during meetings<br />

between Secretary Bo Xilai and <strong>Minister</strong> <strong>Steinmeier</strong>. The two-day conference<br />

in Chongqing not only underlined the city’s role as a model for


The German Chamber of Commerce in China<br />

urban development, but also showed that cooperation between Chinese<br />

and German institutions, companies, universities and government entities<br />

is already well underway. <strong>Minister</strong> <strong>Steinmeier</strong> opened the ‘Chongqing<br />

Dialogue on Urbanization,’ a major event of the “Germany and China –<br />

Moving Ahead Together” series.<br />

During the events, former German Federal <strong>Minister</strong> Klaus Töpfer gave<br />

an insightful speech honoring Chongqing as the municipality that had<br />

brought industrialization to West China. However, industrialization<br />

brings both economic progress and environmental challenges with it.<br />

<strong>Steinmeier</strong>’s opening remarks analyzed the way in which the expressions<br />

“mega cities” and “urbanization” are often code words for problems<br />

rather than solutions. He stressed that in cases such as Chongqing,<br />

“urbanization becomes globalization under a magnifying glass.” Accordingly,<br />

global cooperation becomes vital to confront the challenges of<br />

urbanization.<br />

<strong>Steinmeier</strong> mentioned substantial investments from German companies<br />

in the region and indicated his willingness to accept Germany’s<br />

support in urban planning, calling it beneficial for the creation of “a<br />

livable environment for the people.” 50% of the municipality’s surface<br />

area is to become green. This advancement reflects the ideas of Prof.<br />

Ümüt Halik (Xinjiang University) who showed - based on the example of<br />

Urumqi - that regarding a city as an ecological system is a rather new<br />

but life-saving approach in our fast developing world.<br />

Mr. Martin Brudermüller (BASF) began the panel on “Visionary Long-<br />

Term Planning” by underlining the responsibility of urban planners,<br />

architects and designers to take environmental sustainability into consideration.<br />

In a later keynote, the German Chamber of Commerce in<br />

China • Beijing’s Jutta Ludwig pursued a complementary theme, arguing<br />

that private companies influenced the urban scene more than any other<br />

stakeholder with their decisions on location, staff and production facilities<br />

capacity. Enterprises must take responsibility, she said.<br />

Resource Management Plays a Key Role<br />

Focusing on the topic of urbanization, <strong>Minister</strong> <strong>Steinmeier</strong> acknowledged<br />

that responsible handling of resources is the job of both governments<br />

and companies. He specifically highlighted the importance of<br />

energy efficiency and water management.<br />

During the “Energy Efficiency and Transport” panel, Ulrich Walker (Daimler<br />

Northeast Asia) drew attention to the decreasing availability of resources<br />

at a time when the world’s population, and therefore demand for<br />

resources, is increasing. Panelists discussed possible solutions. Increasing<br />

fuel prices and providing energy-efficient vehicles was one strategy<br />

Jutta Ludwig in Chongqing<br />

© Goethe-Institut Peking/Jiang Ziwei<br />

proposed by Dr. Peter Kilgenstein (Bosch). Such efforts can be complesmented<br />

by the use of biodiesel and hydrogen-powered cars in future, as<br />

noted by Ren Xiaozhang (China Automotive Engineering Institute).<br />

The very nature of transportation networks is also not to be forgotten,<br />

as they play a key role in energy consumption rates. Dirk Hoke (Siemens)<br />

and Professor Shao Yiming (Traffic & Transport Institute of Chongqing<br />

Jiaotong University) pointed to better traffic and transport management,<br />

and advocated improving railway transport with an energy-saving<br />

mobility model.<br />

In another panel, “Environment and Water Protection”, moderator<br />

Claudia Wanner, (Financial Times Germany), involved the audience<br />

in a controversial discussion on the 4-action-plan (blue sky, green<br />

water, green land, serenity) introduced by Prof. Xu Zhonghua (Chongqing<br />

Water Resources Programming & Planning Institute). Participants<br />

debated various methods of implementing environmental protection<br />

programs. Dr. Roland Winkler (econet china), Prof. He Qiang (CQ Municipal<br />

Government Committee) and Nicolas Zuber (Herrenknecht) presented<br />

energy efficient alternatives like sustainable building technology,<br />

water transfer and urban planning schemes which integrate water<br />

supply sources.<br />

<strong>Steinmeier</strong> Visits Earthquake Epicenter<br />

<strong>Steinmeier</strong> praised the truly open and rapid manner in which the Chinese<br />

government handled the Sichuan earthquake, calling it a sign of “the<br />

true greatness of the Chinese nation.” Bo Xilai thanked Germany in his<br />

opening speech for the generous donations after the earthquake as well.<br />

Certainly German investment and know-how in infrastructure building<br />

will play an important role in the reconstruction of the earthquake zone.<br />

After offering the German people’s condolences for the victim’s of the<br />

disastrous earthquake again, <strong>Minister</strong> <strong>Steinmeier</strong> announced a German<br />

project which will construct 8 lighthouse schools in Dujiangyan, the<br />

hardest-hit area. German companies such as Bosch, ThyssenKrupp, BASF<br />

and Herrenknecht will take part along with the German government.<br />

Partner schools in Germany have already offered their patronage to<br />

these lighthouse schools, which are to offer safety of construction, topflight<br />

equipment, academic excellence and German language instruction.<br />

Before concluding his trip near the Sichuan earthquake’s epicenter, <strong>Steinmeier</strong><br />

also visited a field hospital donated by the German Red Cross, and a<br />

site where workers of the German Technisches Hilfswerk were laboring to<br />

restore clean water to victims. Germany continues to support the reconstruction<br />

of the earthquake zone, and hopes that by working together the<br />

process can move forward as quickly as possible.<br />

<strong>Minister</strong> <strong>Steinmeier</strong>, Ambassador Schaefer and Ms. Gudrun<br />

Krögel-Schaefer <strong>Minister</strong> Yang, <strong>Minister</strong> <strong>Steinmeier</strong>, Dr. Roth<br />

Cover Story<br />

www.china.ahk.de 11 | August - September 2008<br />

Business Focus


Business Focus<br />

Sino - German Business<br />

Holding up<br />

Half the Sky<br />

Female Managers in China<br />

Chinese tradition promotes equality, including<br />

gender equality. Chairman Mao himself<br />

noted, “women hold up half the sky,”<br />

emphasizing the importance of their contribution<br />

to society. Leading business magazines<br />

including Time, Fortune and The Wall<br />

Street Journal have reported difficulty for<br />

female expat managers in China. In general,<br />

fewer expat women than men are working in<br />

China. Many of the women working here are<br />

younger or do not have children, most likely<br />

because of the concerns and challenges<br />

presented by moving overseas.<br />

However, due to the convenience of having<br />

an ayi and the family-friendly nature of<br />

Chinese culture, many expat women find a<br />

stay in China to be comfortable once they’ve<br />

arrived. The managers GC Ticker interviewed<br />

all find the environment in China to be more<br />

favorable for and respectful of female managers<br />

than many studies have demonstrated.<br />

Expat women in China even tend to look<br />

at their Chinese counterparts with a bit of<br />

envy. More Chinese women study subjects<br />

which are traditionally male-dominated,<br />

such as physics, engineering and machinery<br />

where the gender ratio is much closer to<br />

50:50. While programs exist to do the same<br />

in Germany, societal constraints have not<br />

yet been overcome. More Chinese women are<br />

able to stay in the workforce due to childcare<br />

infrastructure, not to mention they only have<br />

one child. This greatly affects the amount<br />

of time they need to take off from building<br />

their career compared with Germans.<br />

Despite the increased presence of women<br />

in these fields, these gains do not translate<br />

into increases in income. According to the<br />

World Economic Forum 2007 survey, Chinese<br />

women make roughly 66% as much as<br />

Chinese men in the same field, while German<br />

women earn 76% of the salary their male<br />

counterparts take home.<br />

What challenges remain for both expat and<br />

local women in China? Five female senior<br />

managers of German companies share their<br />

experiences and opinions on the advancement<br />

of women in China.<br />

August - September 2008 | 12<br />

Terese Bareth<br />

CEO & Principal Consultant<br />

Bareth Management Consultants<br />

In 1982, Terese<br />

Bareth began<br />

taking Chinese<br />

courses, which<br />

brought her to<br />

Beijing for study<br />

from 1986-1989.<br />

Upon graduation,<br />

she returned to<br />

China as Manager<br />

of Controlling and Company Development<br />

for a major German automotive supplier.<br />

Afterwards, she founded her own consulting<br />

company in Shanghai.<br />

When asked about her experience in China,<br />

Bareth commented: “I feel like a human<br />

being here, with equal rights and opportunities<br />

and this is a great feeling.” She finds less<br />

gender discrimination here than in Germany,<br />

citing the high numbers of women studying<br />

machinery or physics in China. “It’s easier<br />

here for professional women, grandparents<br />

are willing to take care of the children. In<br />

Germany, grandparents are more independent<br />

so they are willing to help on occasion, but<br />

not every day.”<br />

Chinese women generally also receive much<br />

more equal treatment in the workplace<br />

when compared to Germany in her opinion.<br />

However, promotions can be problematic<br />

when a woman is promoted above her male<br />

peers. However, she notes this happens in<br />

many situations when one employee receives<br />

a promotion, not only because of gender. Over<br />

the past 20 years, Bareth has noticed a lot of<br />

very positive changes. Now, Chinese women<br />

can go anywhere, the world is open for them.<br />

In major cities, some can decide to have a<br />

career instead of children, and although still<br />

rare, Chinese parents and husbands are slowly<br />

beginning to accept this.<br />

The biggest challenge Bareth sees for women<br />

managers in China is for Chinese female<br />

managers working in global companies.<br />

While they may achieve high-ranking positions<br />

here, it is very difficult for them to be<br />

sent to Europe or North America as a female<br />

Asian manager. This puts a limit on their<br />

advancement in a company headquartered<br />

in Germany. A second challenge is the wage<br />

gap. A former manager once remarked to her,<br />

“Hire a woman who will work harder than two<br />

men for half the price.”<br />

The German Chamber of Commerce in China<br />

Katrin Braun<br />

Managing Director, Asia<br />

Machwürth Team International (MTI)<br />

Katrin Braun took<br />

advantage of her<br />

electrical engineering<br />

background to<br />

climb the career<br />

ladder at Siemens<br />

in Germany before<br />

moving to China<br />

three years ago.<br />

She pushed for the<br />

change after experiencing the rewarding work<br />

climate on business trips. She acknowledges<br />

that for most women who already have or are<br />

planning to have families, working abroad<br />

proves difficult. However, the support of her<br />

husband and their two children made the move<br />

possible.<br />

After her subsidiary was sold, she decided to<br />

take up Mandarin study and considered starting<br />

her own business. During her transition, former<br />

colleagues referred her to her current position at<br />

MTI. The opportunity came at the right time, as<br />

services are expanding in MTI’s realm of organizational<br />

development.<br />

When asked about how she perceives gender<br />

relations here in China, she remarked that the<br />

situation is more relaxed than in many Western<br />

countries. Professionally, women have much more<br />

say than in Germany, and are equally respected<br />

by male colleagues. However, the private vs. professional<br />

spheres contrast each other greatly.<br />

In the household, Chinese women still run the<br />

show, playing the role of executive by day and<br />

homemaker by night.<br />

As far as management strategy is concerned,<br />

Braun doesn’t feel as though she had to adjust<br />

her plans to consider potential gender conflicts.<br />

Instead, she was able to focus more strongly on<br />

the barriers created by linguistic and cultural<br />

differences. She emphasizes, “In China, you<br />

have to check progress more often, and give<br />

positive feedback. Many German managers give<br />

negative feedback without positive reinforcement,<br />

but in China you need to consider that<br />

professional relationships are much more<br />

personal.”<br />

Compared to German women, Braun notes that<br />

Chinese women have several advantages. Chinese<br />

women only have one child, and ayis and grandparents<br />

help. As a result, Chinese women continue<br />

working, and don’t lose the 5 to 10 years<br />

that German women do when having children.


The German Chamber of Commerce in China<br />

Britta Ingenwepelt<br />

General Manager<br />

GEZE Industries (Tianjin) Co. Ltd.<br />

Britta Ingenwepelt’s<br />

father<br />

always wanted<br />

her to be an<br />

engineer. She<br />

found the profession<br />

suited both<br />

her temperament<br />

and interests. In<br />

China, she says,<br />

customers often first shake hands with a<br />

male staff member travelling with her, but<br />

she attributes this more to her youth than<br />

her sex. All in all, she adds, being a woman<br />

in the manufacturing industry has drawn<br />

greater attention to her, and that has been<br />

an advantage. The one thing she doesn’t<br />

regularly do here in China however, is the<br />

dinner and karaoke circuit. Quite often, she<br />

says, she isn’t even asked to join, while male<br />

employees are. As a German, she would have<br />

no problem with a beer or two at dinner<br />

time, she argues. In the end, not being a<br />

part of the ‘smoker’s club’ doesn’t hurt her,<br />

though.<br />

When sent to China by GEZE, Ingenwepelt<br />

recalls, there was a single General<br />

Manager handling everything. Then business<br />

expanded rapidly, so the position was<br />

divided. To her surprise, she was immediately<br />

recommended for the GM Production<br />

position. As she had already established<br />

credibility with her colleagues at work,<br />

there was no question about their accepting<br />

her ideas or directives.<br />

Soft spoken, but precise, Ingenwepelt says<br />

that China requires a more emotional leadership<br />

style. “At your wedding in Germany,<br />

perhaps 3% of your guests will be from<br />

work. In China, it’s 80%,” she says. This<br />

may be an advantage for women. Additionally,<br />

the help of ayis, grandparents and<br />

drivers help working moms have more free<br />

time.<br />

Asked for a further comparison, she found<br />

both production and sales culture to be<br />

very similar, and China to be much more<br />

open than expected. One telltale sign that<br />

China offers true quality of life reveals<br />

itself at the spa: men are assigned a masseuse,<br />

and ladies are assigned a handsome<br />

masseur. Sometimes, it’s not hard to be a<br />

woman.<br />

Michaela Stolz-Schmitz<br />

Vice President of Siemens Ltd. China<br />

Director of Corporate Marketing and<br />

the 2008 Projects Department<br />

Michaela Stolz-<br />

Schmitz first came<br />

to China nearly 15<br />

years ago as the<br />

Chief Representative<br />

of a German<br />

specialty steel<br />

manufacturer.<br />

Having studied<br />

economics, political<br />

science and sinology, she was prepared<br />

for China’s culture. Years as an international<br />

journalist (Süd-West Funk, ARD) made her<br />

aware of political and economic issues in<br />

Asia.<br />

She says there are more women in the ranks<br />

of the technical professions in China, even at<br />

higher levels. This helped her to gain acceptance<br />

with clients. As for gaining acceptance<br />

with employees, Stolz-Schmitz maintains<br />

that in China success very much depends<br />

on a manager’s ability to be better than the<br />

team, to further the team’s learning and to<br />

enable the team to win. However, it also<br />

depends on the ability to take an interest in<br />

individuals, strengthening their relationship<br />

with both the team and company by showing<br />

concern for their personal and professional<br />

well-being. While the ability to do this isn’t<br />

necessarily male or female, it is important to<br />

success. Perhaps women, she says, are quite<br />

adept at feeling the pulse of a team.<br />

From her first position, Stolz-Schmitz moved<br />

through the founding of a JV in steel, and a<br />

Chief Representative position in the medtech<br />

field, which led her to her appointment at<br />

Siemens. Returning to China in her current<br />

position at corporate marketing, she also<br />

took charge of the ‘2008 Project Office’ in<br />

2005. It aimed to support the many projects<br />

China was planning to execute for the big<br />

event in 2008. In all, Siemens gained more<br />

than EUR 1bn in business. As a great contributor<br />

to this success, Stolz-Schmitz seems<br />

to be a textbook case of the talented executive<br />

for whom China is a significant part of<br />

an international career.<br />

At Siemens China, by the way, the malefemale<br />

ratio is 63:37 overall, and 69:31 at<br />

the management level, a fact Michaela feels<br />

makes her proud.<br />

Sino - German Business<br />

Ms. Renate Tietjen<br />

Chief Representative<br />

C. Melchers GmbH & Co. KG<br />

Guangzhou & Chongqing<br />

Ms. Renate Tietjen has<br />

been working in China<br />

for C. Melchers GmbH<br />

& Co. KG since 1997.<br />

Additionally, she is<br />

active as a long-term<br />

GCC • Guangzhou board<br />

member and the organizer<br />

of Women in Business<br />

in Guangzhou.<br />

When asked “Why China?” she responded: “By<br />

accident I learned about the university program<br />

in my hometown “Economics & Chinese” and<br />

within 2 weeks I was enrolled. Afterwards<br />

C. Melchers GmbH & Co. KG offered me the<br />

position of Purchase Manager in Shanghai.<br />

The Melchers Group sponsors the Economics/<br />

Chinese faculty at Bremen University and over<br />

the years they have employed many female<br />

graduates in their overseas branches.”<br />

Tietjen feels that not only a stay in Asia but<br />

even frequent business trips here are beneficial<br />

to career development. She has noticed many<br />

female managers in high positions in US MNCs<br />

in the Pearl River Delta, but only a handful of<br />

German female managers are in the region. “In<br />

general, I believe that an increasing number of<br />

women - if given the opportunity - will consider<br />

an overseas stay more seriously. The question<br />

is how many will really commit themselves and<br />

head out,” she said.<br />

Based on her experience, there is more<br />

gender equality in the workplace here than<br />

in Germany. “Indeed it surprised me that<br />

the Chinese are not as gender minded as<br />

Germans…women do hold up half the sky. I<br />

am fully accepted in my position as a female<br />

Chief Representative…for German female managers<br />

the greatest challenge [in China] is to<br />

prove to their German counterparts that they<br />

are just as capable as men.”<br />

GC Ticker asked Tietjen if she had a particular<br />

female entrepreneur she admired. The answer:<br />

Anita Roddick, Founder of The Body Shop.<br />

“Against all odds and far earlier than all other<br />

cosmetic companies she stressed environmental<br />

protection and no animal testing but still<br />

managed to establish a world-wide renowned<br />

brand and company.”<br />

www.china.ahk.de 13 | August - September 2008<br />

Business Focus


Business Focus<br />

Sino - German Business<br />

Good advice is often simple and succinct. But how<br />

simple is the above quote? While the majority of<br />

companies value the wisdom of a phrase like this,<br />

how many are equipped to realize it?<br />

The China Potential<br />

Beyond the media coverage of phenomenal GDP growth rates and consistently<br />

bright economic prospects, managers are faced with a challenging<br />

set of business decisions. What sets the success stories apart<br />

from the failures is the extent to which these decisions are informed<br />

by detailed, reliable, accurate and timely research. How does a<br />

company get that competitive edge?<br />

Requests for business intelligence are steadily on the rise globally.<br />

China is a competitive business environment, with many international<br />

companies having now operated here for a number of decades. The<br />

importance of the market means companies are under pressure to get<br />

things right early and to hit aggressive sales and business growth<br />

targets. This means making informed business decisions quickly. Managers<br />

need market mapping, deep understanding of supply chains, and<br />

knowledge of where the decisions are made and who controls what<br />

and where. Industry research or business intelligence is a first step.<br />

From a global perspective, Fortune 500 companies are already monitoring<br />

the moves of China’s successful domestic companies and the<br />

techniques for tracking those moves need to become increasingly<br />

sophisticated. There is great value for smaller companies too,<br />

especially in terms of being ahead of your competitors. Take the<br />

example of the road safety equipment manufacturer, who discovered<br />

through market intelligence that a competitor had already<br />

registered their trademark for a similar product range in China.<br />

Primary research methods and an analysis of the competitor’s<br />

company finance information, helped to establish that the competitor<br />

planned to expand into overseas markets. Obviously, the<br />

implications for future decision making were significant.<br />

What Exactly is Business Intelligence?<br />

Business intelligence is a systematic and ethical program for<br />

gathering, analyzing, and managing external information that<br />

enables your company to make informed business decisions. By<br />

legally collecting and analyzing a range of information, such as<br />

databases and “open sources”, business intelligence can also<br />

highlight the capabilities, vulnerabilities and intentions of business<br />

competitors. (Fig. 1)<br />

August - September 2008 | 14<br />

Intelligence Providers<br />

The German Chamber of Commerce in China<br />

Chinese Market Demands<br />

Fast-Paced Business IQ<br />

“A strategy without intelligence is not a strategy, it’s merely guessing.”<br />

Douglas C. Bernhardt, 1997<br />

There is a diverse range of business intelligence providers. The true<br />

value of a professional business intelligence provider is in the insight<br />

they provide, their ability to proactively recommend the best approach<br />

and to highlight the potential pitfalls for your business. A good business<br />

intelligence practitioner is one that’s instinctively curious about<br />

the way industries work, about what drives decision making and about<br />

the impact of corporate reputation. They should also have plenty of<br />

questions about the way your own business works too.<br />

China Challenges<br />

The very nature of business intelligence means that much of what<br />

researchers discover is often new and surprising. This is particularly<br />

true of intelligence gathering in China, where rapid changes in the<br />

commercial landscape result in immediate changes in commercial<br />

structures and processes. Projections change frequently, to the extent<br />

that an industry-specific report can become outdated in 6 months.<br />

As published commercial information is limited in the same way, the<br />

role of the researcher also encompasses that of a communications<br />

channel. When considering what your own business intelligence needs<br />

are and how a professional can assist you, it’s important to keep the<br />

difficulty of its goals in mind. (Fig. 2)<br />

Cultural considerations<br />

The culture-specific aspects of a market always present an interesting<br />

challenge to the business intelligence professional and China is cer-<br />

Market Entry<br />

Change<br />

Management<br />

Communications<br />

Marketing<br />

Business and<br />

Competitive<br />

Intelligence<br />

Brand<br />

Positioning<br />

Customer<br />

Loyalty<br />

Employee<br />

Retention<br />

Business<br />

Development


The German Chamber of Commerce in China<br />

Difficult<br />

It can<br />

be done<br />

Easy<br />

Company<br />

Address<br />

Brand<br />

Recognition<br />

Industy<br />

Overview<br />

Investment<br />

Plans<br />

Acquisition<br />

Suitability<br />

Basic<br />

Financials<br />

Supplier<br />

List<br />

Shareholders<br />

Government<br />

Regulations<br />

Cost and<br />

Pricing<br />

Structure<br />

Corporate<br />

Reputation<br />

Media<br />

Monitoring<br />

tainly no disappointment in that respect. Firstly, there’s communication.<br />

The Chinese language is often vague and somewhat poetic where<br />

English would be specific and succinct. Often in our office in Shanghai,<br />

when a vague approach is required and language is optional, we’ll<br />

choose Chinese over English, as it allows for more flexibility.<br />

Another challenge is the approach to information collection and dissemination.<br />

Protecting information is an important characteristic<br />

of the local culture, along with a reluctance to be held responsible<br />

for losing it. If a research respondent perceives any risk associated<br />

with releasing information or providing feedback, they will often<br />

choose to simply provide no response at all. There is little incentive<br />

for the average purchasing manager or even government employee<br />

to provide information to an external party. In response to the specific<br />

risks associated with passing on information, and since the field<br />

of market research is also relatively new in China, researchers must<br />

assure respondents of the standard practices and procedures that are<br />

designed to protect them and the information they disclose.<br />

Having said that, China presents a dynamic, fast-paced business environment,<br />

that embraces an adaptable ‘can-do’ business ethic. In a<br />

country often considered to be mysterious and unpredictable, we find<br />

many of the respondents we speak to are open and keen to share<br />

knowledge. As the fields of business intelligence and industry research<br />

are new to most respondents here, many of the interviews and discussions<br />

we hold on behalf of our clients provide refreshing and innovative<br />

feedback.<br />

Another key aspect which is often overlooked is the country’s sheer<br />

enormity. In a market the size of China, geographic differences are<br />

wide and industries are often fragmented. Extracting comment on the<br />

nature of one industry across the entire country is unrealistic. It is<br />

often advisable to collate regional research from across the country to<br />

build the national picture. China’s administration according to province,<br />

municipality, district, town and village means a senior manager<br />

in the province of Zhejiang may well assume that a researcher is only<br />

considering Zhejiang province when posing questions about issues<br />

such as the development of an industry over the coming 5 years. The<br />

challenge for the researcher is that if they emphasize that a national<br />

perspective is being sought, it’s possible that the respondent will feel<br />

ashamed of their lack of broader knowledge and become uncooperative.<br />

For this reason, researchers in China need to carefully ascertain<br />

Competitor<br />

Market<br />

Market<br />

Forecasting<br />

Market<br />

Segmentation<br />

Sino - German Business<br />

whether a subject is commenting on the local<br />

picture and precisely how local it is.<br />

These geographic differences extend to local<br />

business practices and customs. With companies<br />

based in Beijing, for example, it’s often<br />

a good idea to send a fax to lay down the<br />

groundwork for a phone conversation. On the<br />

other hand, in Shanghai, business is conducted<br />

predominantly over the phone. In Beijing, it<br />

can be necessary to conduct a face-to-face<br />

meeting at the outset before further meetings<br />

are agreed to. This extends the timeline on<br />

projects, and based on experience, it’s difficult<br />

for clients outside China to understand the significance<br />

of this initial face-to-face meeting.<br />

The value of recognizing a custom such as this<br />

is enormous, as there is often a transformation<br />

in attitude on the local side.<br />

Patience is a virtue – admit early on in the business intelligence<br />

process that you are never going to have enough data, and work to<br />

piece together parts of the puzzle over time.<br />

Laura Mitchelson is Strategic Director of Amber, a Shanghaibased<br />

consultancy specialized in market and competitive intelligence<br />

and business analysis in China. Contact: lmitchelson@<br />

amberinsights.com.<br />

www.china.ahk.de 15 | August - September 2008<br />

Customer<br />

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Xi’an - North China<br />

Xi’an – More than history<br />

To most people Xi’an, capital of Shaanxi province, is best known as the<br />

cradle of Chinese culture and a tourist destination where they can visit<br />

the relics of the ancient capital Chang An, of which the Terracotta Warriors,<br />

the City Wall, Drum Tower, Bell Tower and the two Wild Goose<br />

Pagodas are best known. The economic relevance and potential of the<br />

city in modern times, however, is widely underestimated.<br />

Xi’an was approved by the<br />

State Council to be an<br />

inland opening city in 1992<br />

and a comprehensive reform<br />

test city in 1994, which<br />

made it a key city in West<br />

China and led to its recognition<br />

as “The most innovative<br />

and vigorous city in<br />

the world” by the United<br />

Nations Industrial Development<br />

Organization (UNIDO)<br />

in 2002. The West China Development Strategy was implemented comprehensively,<br />

so that the infrastructural premises today surpass those<br />

of most central Chinese cities and still continue to improve.<br />

While its economical supremacy is unchallenged in the northwest<br />

region (i.e. the provinces of Shaanxi, Gansu, Xinjiang, Qinghai and<br />

Ningxia), Xi’an competes with neighbouring Sichuan´s capital Chengdu<br />

and Chongqing in the southwest to attract foreign investment. All<br />

three cities benefit from their central location and offer ready access<br />

August - September 2008 | 16<br />

The German Chamber of Commerce in China<br />

to the domestic market. For Xi’an it is 600m consumers and 10 provincial<br />

capitals within 12 hours´ travel time. Regarding export, Xi’an is<br />

connected to the east coast seaports in the Bohai area. As the largest<br />

transportation hub in northwest China, Xi’an has formed a network<br />

of high-level highways, railways and aviation stretching in all directions.<br />

A major advantage for Xi’an is its role as a logistics hub on the<br />

Eurasia rail link, which gives access to the Central Asian Republics, a<br />

connection of growing significance, as the ties to the growing markets<br />

in Central Asia and Russia among others are tightened by the bian-<br />

nual Euro-Asia Forum of the Shanghai Cooperation Organisation (SCO),<br />

which is also held in Xi’an. Due to its history as a center for research<br />

and production of military technology, Xi’an has become an important<br />

base of higher education with more than 80 public and private universities,<br />

providing companies with a deep pool of talents. For example,<br />

Jiaotong University In Xi’an is one of the few Top 10 Universities in<br />

China outside Beijing and Shanghai.<br />

The city uses a system of “Four Zones and Districts, one Base” to<br />

develop the six key industries of high technology, equipment manufacturing,<br />

tourism, cultural industry, modern services and software. Backbone<br />

of the high-tech industry are bio-medicine, electronic information,<br />

optical-mechanical-electrical integration, photoelectron, aviation<br />

and space flight, new materials and high efficiency and energy saving<br />

environmental protection industry. Main traditional industries in Xi’an<br />

are equipment manufacturing, light textile industry, chemical industry,<br />

food and beverage and building materials. The four zones and districts<br />

and one base are namely the Xi’an Hi-tech Industries Development<br />

Zone (XHTZ), Xi’an Economic and Technological Industries Development<br />

Zone (ETDZ), Qujiang New District, Chanba Ecological District<br />

(CBE) and Yanliang Aviation Hi-tech Industries Base (CAIB).<br />

For the future the Urban Development Plan of Xi’an is designed to<br />

lower residential density in the city center adding satellite cities<br />

outside the Third Ring Road and to establish an industrial region<br />

in the west, an economic region in the north, a region for tourism<br />

in the east and a leisure and resort region in the south of the presently<br />

developed areas. On a provincial level the expanded Xi’an will<br />

be the center on an east-west-axis along the Longhai Railway and the<br />

Baotong Highway (“One line and two belts”) from Baoji through Yangling,<br />

Xianyang, Xi’an, Weinan to Tongguan, forming the Guanzhong<br />

National Hi-tech Industries Belt, named after the Guanzhong plain<br />

where the cities are situated.<br />

Axel Brost | Managing Director - China Consulting Service Ltd.<br />

Jinyu Huayuan 3252 | No. 63 Xiying Lu | Xi’an 710054<br />

Tel: 013 9911-74967 | Email: axel.brost@china-consulting-service.com<br />

| Web: www.china-consulting-service.com


The German Chamber of Commerce in China<br />

Small Town Feel with Big City Plans<br />

Changzhou<br />

Changzhou’s advantageous location right between Shanghai and<br />

Nanjing has clearly aided its development. Nicknamed the ‘Dragon<br />

City,’ Changzhou has a track record of flourishing during trying times<br />

in Chinese history. It benefited from the Taiping Rebellion, which<br />

constructed some of the city’s premier temples and pagodas. In the<br />

1930s, the Japanese occupation of Shanghai caused many businesses<br />

to relocate, resulting in Changzhou importing the entire Shanghai<br />

cotton and textile industry. Additionally, the city emerged successful<br />

from the period of the Cultural Revolution while cities such as Shanghai<br />

were struggling economically.<br />

With a population of 3.4m, Changzhou is certainly dwarfed by other<br />

emerging cities such as Nanjing or Hangzhou. However, it makes up<br />

the difference with its progressive policies. The Changzhou government<br />

acts to promote a more environmentally-friendly development,<br />

as evidenced by the closure or relocation of several polluting factories<br />

in recent years. Furthermore, the city ensures that 99% of its schoolage<br />

residents attend high school. Many continue onto institutions of<br />

higher education, which have healthy graduation rates.<br />

Attractive Environment<br />

Due to positive developments in the areas of environmental protection<br />

and human resources, many companies have chosen Changzhou<br />

as a strategic base along the Yangtze River. The local airport, Grand<br />

Canal, river network and highway network all make the surrounding<br />

areas, including Nanjing and Shanghai, accessible within an hour or<br />

two. Currently, 20,000 manufacturing companies have set up shop in<br />

Changzhou, including 42 international giants from the West and Asia.<br />

The Path from Agriculture to Textiles to<br />

Engineering<br />

Formerly, Changzhou was a center for the distribution of local agricultural<br />

products. However, while food processing and distribution are<br />

still prevalent, the share of traditional agricultural output has shrunk<br />

to less than 6% of the local economy. The textile industry, spurred by<br />

the influx of cotton processing in the 1930s, continues to churn along<br />

strongly.<br />

East China - Changzhou<br />

In the manufacturing sector, Changzhou excels in power generation<br />

due to its access to hydropower. Automotive and motorcycle production<br />

are also successful, and electronics and engineering machinery<br />

have made their mark. Diesel engines are one of their top manufacturing<br />

products.<br />

Service Sector Blossoms at Changzhou National<br />

Hi-Tech District<br />

New high tech industries have also landed in Changzhou, and now<br />

constitute 50% of the local economy, as evidenced by the Changzhou<br />

National Hi-Tech District. Since 1992, the CND has filled 20km 2 of its<br />

total 30km 2 area with 7636 companies, 18 of which rank as Fortune<br />

500. Located north of the city, the CND offers access to an oceangoing<br />

port for easy export of goods bound for Shanghai or overseas.<br />

The CND includes four subsections:<br />

• Start-up Hi-Tech Park: electronics, pharmaceuticals, biotech, mechatronics<br />

• Industrial Park: machinery, plastics, chemicals, electronics<br />

• Commercial & Residential Park: service arm of the CND, including<br />

educational facilities and residences<br />

• Tourist Park: Dinosaur Park, expat club and health clubs<br />

Tourism Initiative Set to Bring in Visitors<br />

While promoting its history for the purposes of tourism, Changzhou<br />

also welcomes fresh ideas to boost the number of visitors. From the<br />

scenic Tianmu Lake to the new Dinosaur Park, visitors can expect quite<br />

a variety.<br />

The Tianning Temple, built over 1350 years ago during the Tang<br />

Dynasty, is one of Changzhou’s historically significant sites. It is also<br />

known as the “Famous Spot of the Three Wu.” Destroyed and rebuilt<br />

5 times, the Tianning Temple covers 6.7 hectares and houses over 70<br />

monks, known for their strict interpretation of Buddhism. The Tianning<br />

Pagoda is the tallest in China, and perhaps the tallest in the world, at<br />

153m.<br />

The location of the temple is significant to the Buddhist religion,<br />

located in the middle of the 5 directions: east (Lingshan), west<br />

(Leshan), south (Hong Kong), north (Yuyuan) and center (Langmen),<br />

where 5 other Grand Buddhas may be found.<br />

The ruins of the former King’s Palace built during the Taiping rebellion<br />

are also of note and can be seen near the city center. The palace was<br />

one of 5 palaces built during the tumultuous era.<br />

Tianmu Lake, not far away, offers scenic repose from city life. The lake<br />

which is named “Heavenly Eyes” in Chinese, is shaped in two round<br />

circles. Visitors come to try the local delicacy fish head soup, hike and<br />

boat.<br />

Perhaps one of Changzhou’s most talked-about recent tourism developments<br />

is the Changzhou China Dinosaur park, sometimes referred to as<br />

“Oriental Jurassic Park.” The attraction contains fossils from all across<br />

China, some reconstructed into complete skeletons. The facility offers<br />

multimedia educational displays, and each room attempts to recreate<br />

a different scene from prehistoric times.<br />

www.china.ahk.de 17 | August - September 2008<br />

Business Focus


BHUTAN L<br />

ANGLADESH<br />

Business Focus<br />

y ofBengal<br />

Yunnan - South China<br />

MYANMAR<br />

AndamanSea<br />

Kunming<br />

LAOS<br />

THAILAND<br />

KAMPUCHEA<br />

August - September 2008 | 18<br />

Hanoi<br />

VIETNAM<br />

CHINA<br />

South ChinaSea<br />

TAIWAN<br />

Yunnan – Gateway to ASEAN<br />

PHILIPPINES<br />

BRUNEI<br />

Major construction MALAYSIA is now underway in eastern Yunnan Province<br />

MALAYSIA<br />

to complete a vast infrastructure project. A new highway linking<br />

Kunming to Hanoi, the Vietnamese capital, should be completed by<br />

SINGAPORE<br />

2012, shortening the journey from three days to just 9 hours by truck.<br />

The Kunming - Hanoi highway is backed by a USD 1.1bn loan from the<br />

Asian Development Bank (ADB), making it the most expensive project<br />

in the ADB’s history.<br />

The German Chamber of Commerce in China<br />

Philippine Sea<br />

markets more efficiently. Moreover, the highway will allow Vietnam’s<br />

Hai Phong and Cai Lan ports to access Kunming, which significantly<br />

shortens the current route through Fangcheng Port in Guangxi. As a<br />

result, the transportation network will not only integrate both economies,<br />

but also spur growth. Vietnamese products will consist mainly of<br />

agricultural and maritime products which will quickly reach previously<br />

untapped markets in southwestern China.<br />

The upgrade of the overland route comes at an opportune time, as<br />

traffic volume on existing roads between Hanoi and the Chinese border<br />

town of Hekou has been increasing at a rate of 12% per year. Over 5.5m<br />

vehicles are expected to use the corridor in 2012, a number that will<br />

expectedly increase more than three-fold to 17m by 2022.<br />

Trade in 2007 between Yunnan and the 10 member states of the Asso-<br />

PAPUANEW GUINEA<br />

ciation of Southeast Asian Nations (ASEAN) reached USD 3bn, up<br />

Construction workers from both China and Vietnam will soon join INDONESIA<br />

forces to build the highway, which promises increased opportuni-<br />

nearly 40% over 2006, with Vietnam replacing Myanmar as the provties<br />

for the once heavily-guarded border region. Exporters in Kunming<br />

ince’s top trading partner.<br />

will be able to ship products which depend on fast access to global<br />

The Kunming to Hanoi highway project will contribute to the ambitious<br />

Asian Highway program under which 27 Asian countries have<br />

IndianOcean<br />

pledged to build a 139,200km network of roads that meet minimum<br />

uniform standards. Additional infrastructure projects in Yunnan and<br />

China’s neighboring countries are currently underway to facilitate<br />

trade with ASEAN. Some of the more notable projects include a new<br />

international airport in Kunming and a rail network linking Kunming<br />

and Singapore via three trunk lines passing through Myanmar, Laos,<br />

Thailand, Vietnam, Cambodia and Malaysia.<br />

New band • New location<br />

New competition<br />

16-21 September. Jinhan Centre,<br />

Guangzhou (opposite China Hotel)<br />

http://oktoberfest.dayoo.com<br />

These projects propel the ambition to turn Yunnan into China’s<br />

Gateway to ASEAN. The two emerging economic regions are preparing<br />

for the ASEAN-China AUSTRALIA Free Trade Area (ACFTA), which will launch<br />

its first phase in 2010. The ASEAN-China free trade area will have a<br />

total population of 1.8bn and a combined gross national product of<br />

USD 2tn when completed in 2010. ACFTA aims to reduce and eliminate<br />

tariffs and quotas on goods moving between China and ASEAN states.<br />

Analysts expect an increase in raw materials and natural resources<br />

flowing into China and manufactured products flowing out. By 2015,<br />

China and its immediate Southeast Asian neighbors (Vietnam, Laos,<br />

Myanmar) will also impose zero tariffs on most normal products.<br />

Due to the crowd-drawing World Heritage sites Ha Long Bay in<br />

Vietnam and The Three Parallel Rivers in Yunnan, the new highway is<br />

also expected to expand cross-border tourism between the two countries.<br />

An increase in demand for tourism is expected to help the region<br />

develop a more advanced service sector.<br />

Cutting through thick jungle and scaling steep mountain slopes,<br />

construction workers act as a vanguard for intensified cooperation<br />

between China and its regional counterparts.<br />

NorthPacificO


The German Chamber of Commerce in China<br />

www.china.ahk.de 19 | August - September 2008<br />

Business Focus

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