Minister Schavan - AHK - AHKs

Beijing • Guangzhou • Shanghai
June - July
3 | 2008
Minister Schavan
Cover Story: Sino-German Education & Research
German Chamber Supports Earthquake Relief | Members Elect New Board | Events Promote German Green Building Know-How
IN THIS ISSUE:

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GCC Board
Beijing
* All-China Board member
June - July 2008 | 2
Siemens Ltd. China
President and CEO
Dr. Richard Hausmann *
Chairman
KPMG Huazhen Certified Public
Accountants
Partner Audit
Mr. Andreas Feege
Treasurer
Lufthansa German Airlines
Chief Representative for China
Mr. Gregor Wende
German National
Representative to the EUCCC
German Chamber Beijing
Executive Director
Ms. Jutta Ludwig *
Delegate & Chief Representative
Delegation of German Industry
& Commerce Beijing
Deutsche Bank (China) Co. Ltd.
Beijing Branch
Director, Head of Corporate Banking
Coverage, China
Mr. Eddy Henning
Gruner+Jahr (Beijing)
Advertising Co. Ltd.
General Manager & President
Mr. Wolfgang Kohl
Volkswagen (China)
Investment Co. Ltd.
Executive Vice President,
Finance Department
Dr. Joerg Mull
Bayer (China) Ltd.
Vice President, Corporate Social
Responsibility Greater China
Mr. William Valentino
Daimler Northeast Asia Ltd.
Chairman & CEO
Mr. Ulrich Walker
Shanghai Guangzhou
Lufthansa German Airlines
Managing Director Greater China
Mr. Arved von zur Mühlen *
Chairman
Bosch (China) Investment Ltd.
Executive Vice President
Mr. Elmar E. Weitzel
Vice Chairman
Vossloh Fastening Systems
(China) Co. Ltd.
CEO
Mr. Thomas Dorn
Treasurer
German Chamber Shanghai
Executive Director
Mr. Manfred Rothgaenger *
Delegate & Chief Representative
Delegation of German Industry
& Commerce Shanghai
Beiten Burkhardt Shanghai
Representative Office
Chief Representative
Mr. Rainer Burkhardt
Siemens Shanghai Medical
Equipment Ltd.
President and CEO
Dr. Rolf Hubke
POLYMAX (Shanghai) Trading
Co. Ltd.
Chairman of the Board
Mr. Ulrich Mäder
Allianz China Life Insurance
Co. Ltd.
CEO
Mr. Christian Molt
Management Engineers
China Ltd.
Managing Director
Ms. Brigitte Wolf
The German Chamber of Commerce in China
German Chamber Guangzhou
Executive Director
Ms. Alexandra Voss *
Delegate & Chief Representative
Delegation of German Industry &
Commerce Guangzhou
Lufthansa German Airlines
Guangzhou
General Manager, Southern China
Mr. Nico Beilharz
TCA Ltd. The Cable Assembler
Dongguan
CEO / President
Mr. Frank Jaeger
VA TECH ELIN Transformer
Guangzhou Co. Ltd. (Siemens)
Group
General Manager
Mr. Dirk Soete
Trolli Confectionnery Co. Ltd.
Guangzhou
General Manager
Mr. Michael Stein
C. Melchers GmbH & Co. KG
Guangzhou & Chongqing
Representative Offices
Inspirion GmbH Guangzhou
Representative Office
Chief Representative
Renate Tietjen

The German Chamber of Commerce in China
www.china.ahk.de 3 | June - July 2008

Preface
The GC Ticker is the internal bi-monthly newsletter
of the German Chamber of Commerce in China.
Publisher
German Chamber of Commerce in China
Managing Editor
Ms. Kristen Robinson (Shanghai)
Editorial Team
Mr. Walter Jansen (Beijing)
Mr. Kilian Becker (Guangzhou)
Design
Image Check Shanghai
GC Ticker is free of charge. For subscription or
extra copies please email your nearest Chamber
office
Other issues of the magazine can be found on
our website: www.china.ahk.de/en/chamber/
shanghai/
For editorial or sponsorship inquiries please
contact:
German Chamber of Commerce in China
Beijing Office
German Chamber of Commerce
in China • Beijing
0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd.
Chaoyang, Beijing 100004
Tel: +86-10-6590 0926 ext. 308
Fax: +86-10-6590 6313
Email: jansen.walter@bj.china.ahk.de
Guangzhou Office
German Chamber of Commerce
in China • Guangzhou
2915 Metro Plaza, Tianhe (N) Rd.
Guangzhou 510075
Tel: +86-20-8755 2353
DL: +86-20-8755 8203
Fax: +86-20-8755 1889
Email: becker.kilian@gz.china.ahk.de
Shanghai Office
German Chamber of Commerce
in China • Shanghai
29F, POS Plaza, 1600 Century Ave.
Pudong, Shanghai 200122
Tel: +86-21-5081 2266, ext. 1637
Fax: +86-21-5081 2009
Email: robinson.kristen@sh.china.ahk.de
© 2007-2008. German Chamber of Commerce in China.
No part of this publication may be reproduced without
the publisher’s prior permission. While every effort had
been made to ensure accuracy, the publisher is not responsible
for any errors. Views expressed are not necessarily
those of GIC/GCC.
June - July 2008 | 4
Dear Reader,
As the industrialized world slides toward possible
recession, could booming developing
nations come to its aid? Can China or India save
America or Europe?
Although economies such as China and India
are growing quickly, they are still much too
small to pull giants such as the United States
or Europe out of a possible economic downturn.
For the first time, however, developing countries
– now accounting for more than half of
global economic growth – could probably ride
out the storm afflicting richer nations. Many
experts claim that while “China is not going
to save the world,” it is part of a very different
picture. The US, Europe, and Japan will go
in one direction, and countries like China and
India will carry on in another.
While emerging market growth cannot turn a
round the recession, it may at least cushion the
blow. Emerging markets will continue to import
the industrial machinery that Europe, US, Japan
and other developed nations manufacture, and
will still have an appetite for raw materials such
as oil and minerals from the Middle East, Africa
and Latin America.
America will still determine much of what
happens in the world economy this year. Other
countries are already ratcheting down their
growth forecasts because of headwinds facing
the world’s largest consumer nation. At the
same time, many financial analysts fear that
the effects of the sub prime mortgage crisis
have yet to fully unravel, and that banks worldwide
could see their balance sheets weakened.
Despite such forecasts in the West, from China
to Brazil people are busy building bridges,
information networks, even whole cities. Developing
economies are selling goods and services
to one another, not just to the West. They are
buying more products than ever from developed
nations – a boon for now-struggling developed
economies.
The German Chamber of Commerce in China
Domestic Market Drives
Chinese Economy
Arved von zur Mühlen
Chairman | GCC • Shanghai
In China, for example, the real engines of
growth are not factories exporting clothes
and computers, though that visible sector has
fueled a USD 260bn annual trade surplus. The
lion’s share of Chinese GDP growth is domestic,
and not a function of the international
economy. Past global downturns have not
slowed China. Even if Chinese exporters took a
hit, previous trade slumps have had practically
no ripple effect on the Chinese economy. This
time, there is no question that China will lose
a little GDP growth in the export sector, but
it will gain some of that back in investment.
China’s race to build more roads, railways,
homes, and factories contributed most to its
11.4% GDP growth last year, and that trend is
set to continue.
Even if falling exports of Chinese consumer
goods to America and Europe cut 2 percentage
points off last year’s growth rate – a common
prediction – the fact that China is not tanking
will be a comfort to economic planners elsewhere.
It will also mean that China will continue
to import raw materials and high-tech
machinery. In the commodities field, China will
be very important and, at the margins, it can
certainly help the US and Europe.
Recent news about rising consumer price levels
has not yet influenced the positive outlook of
the German business community in China. Most
companies have achieved or even exceeded
their business goals in 2007, and want to
further expand in China. Let’s hope for further
economic development, successful Olympic
Games and an ever stronger Sino-German partnership
to make it happen.
Enjoy reading the GC Ticker!

The German Chamber of Commerce in China
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Business Focus
Education Key to Development
Minister Schavan promotes Sino-German
cooperation in the fields of research,
innovation, education and investment to
foster economic growth
Clean and Clear:
Water treatment projects create opportunities
for small technology suppliers in China
Chongqing: Germany and China
– moving ahead together
German Organizations Raise RMB 2 Million
for Earthquake, Present Urban Development
Solutions
Giving Feedback & Managing
Performance Across Cultures
How to get the most out of your employees in
a multicultural environment
Regional Spotlight:
Tianjin TEDA
Changshu
Chongqing
Chamber News
All China
China First Hand success in Munich
Beijing
Guangzhou
Shanghai
Chambers elect new board members for
2008-2010, enjoy happy hour social events
Around Town
All China
Beijing
Guangzhou
Venetian Carnival brings together South China
chambers of commerce for a colorful evening
Shanghai
Benefit Program
Yellow Pages
Centerfold Special
Latest update on all your favorite
venues offering GCC members discounts
throughout China.
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Contents
Members Mix
Meet the Member
Member News
Updates from our member companies: relocations,
new management, community events
and anniversaries
New Members:
Beijing
Guangzhou
Shanghai
Community
Olympics in Brief
China sends first-ever equestrian to
Olympics, puts finishing touches on facilities
Expo in Brief
Germany announces plan for Expo 2010
German Pavilion
www.china.ahk.de 5 | June - July 2008
Sports
Training Courses
Education
Environment
Energy Efficiency – Made in Germany –
Chinese government gives the green light to
environmentally-friendly building initiatives
Travel
WWF promotes ecotourism project in southeastern
Tibet’s unique biosphere
Giving Back
Inspired by adopted daughter, JiaJia
association reaches out to the children of
Anhui province
Books
City Tour
Wander through the forgotten Old Summer
Palace, rediscover this history of China’s
relationship to the West
Art & Culture
“Frankfurt am Perlfluss” event brings
German musicians to Guangzhou, German artists
inspire Chinese audiences
Community Events
Competitions
Benefit Program Update
Two new Shanghai hotels offer Chamber
members discounts in prime downtown locations
Chamber Events Calendar
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Chamber Teams
Your company on
the desks of
our members -
China-wide
Advertise in the most
frequently used directory of
German companies in China.
Limited placements still
available, contact your local
Chamber for details.
Beijing
Ms. Katrin Loch
010 6590-6930
Email: loch.katrin@bj.china.ahk.de
Guangzhou
Mr. Kilian Becker
020 8755-8203
becker.kilian@gz.china.ahk.de
Shanghai
Ms. Li Yandi
021 5081-2266 ext. 1609
li.yandi@sh.china.ahk.de
June - July 2008 | 6
Beijing
Guangzhou
Shanghai
Ms. Katrin Loch
Executive Chamber Manager
Tel: 010 6590-6930
Email: loch.katrin@bj.china.ahk.de
Ms. Claudia Barkowsky
Regional Manager North China
Tel: 010 6590-0926 ext. 329
Email: barkowsky.claudia@bj.china.ahk.de
Mr. Kilian Becker
Manager Membership & Events
Tel: 020 8755-8203
Fax: 020 8755-1889
Email: becker.kilian@gz.china.ahk.de
Ms. Anna-Lisa Hartmann
Senior Manager Chamber Affairs
Tel: 021 5081-2266 ext. 1630
Fax: 021 5081-2266 ext. 5630
Email: hartmann.anna-lisa@sh.china.ahk.de
Ms. Heidrun Buss
Project & Event Manager Shanghai
Tel: 021 5081-2266 ext. 1656
Fax: 021 5081-2266 ext. 5656
Email: buss.heidrun@sh.china.ahk.de
Ms. Li Yandi
Project Manager
Tel: 021 5081-2266 ext. 1609
Fax: 021 5081-2266 ext. 5609
Email: li.yandi@sh.china.ahk.de
The German Chamber of Commerce in China
Ms. Lina Sun
Chamber Affairs Management
Tel: 010 6590-0926 ext. 210
Email: sun.lina@bj.china.ahk.de
Mr. Walter Jansen
Publications Manager
Tel: 010 6590-0926 ext. 308
Email: jansen.walter@bj.china.ahk.de
Ms. Esther Hu
Chamber Assistant
Tel: 020 8755-8217
Fax: 020 8755-1889
Email: hu.esther@gz.china.ahk.de
Ms. Kristen Robinson
Publications & Marketing Manager
Tel: 021 5081-2266 ext. 1637
Fax: 021 5081-2266 ext. 5637
Email: robinson.kristen@sh.china.ahk.de
Mr. Ferdinand Pillenstein
Regional Manager Zhejiang & Jiangsu Provinces
Tel: 021 5081-2266 ext. 1830
Fax: 021 5081-2266 ext. 5830
Email: pillenstein.ferdinand@sh.china.ahk.de
Ms. Liu Li
Chamber Team Assistant
Tel: 021 5081-2266 ext. 1650
Fax: 021 5081-2266 ext. 5650
Email: liu.li@sh.china.ahk.de

The German Chamber of Commerce in China
Contents
www.china.ahk.de 7 | June - July 2008

The German Chamber of Commerce in China
German Companies Support
Earthquake Victims
Red Cross Still Needs Donations
The German Chamber of Commerce in China expresses profound
sympathy and condolences to the victims and families
of the earthquake in Sichuan. We thank all of our members
for their extraordinary support.
Please keep in mind that often donations flow in during the
peak media attention of a natural disaster, but funding is
still needed long-term for sustainable reconstruction. Please
continue to support the Sichuan region throughout this
process!
We would be grateful if you could let us know about the
amount of your donation, so that we may keep an accurate
record of the engagement of German companies for later
presentation.
The Chinese Red Cross contacts:
Hotline: +86 10 6513 9999
Address: 8 Beixinqiao Santiao, Beijing
北京市东城区北新桥三条 8 号
Chinese Red Cross Account information:
Account owner: 中国红十字会总会
for RMB-transfers:
Bank: 中国工商银行 北京分行东四南支行
Account number: 0200001009014413252
For transfers in foreign currencies:
Bank: 中信银行酒仙桥支行
Account number: 7112111482600000209
Board Meeting
ALL CHINA
GUANGZHOU
During a board meeting on 29 th May the chairman of the new
board of the German Chamber of Commerce in Guangzhou
will be announced.
Buffet with the German Chamber
On Tuesday, 24 th June, the recently opened Grand Hyatt
Guangzhou is inviting members of the German Chamber of
Commerce to enjoy free flow of drinks and a free buffet prepared
by German Executive Chef Mr. Martin Riehl. Please join
us for an evening of great taste in rapidly developing Zhujiang
Xin Cheng (Pearl River New City, Tianhe District).
German Games at UEFA EURO
2008
Oasis Bar, 351 Huan Shi Dong Road, will broadcast each game
during the European Championships taking place in Austria
and Switzerland from 7 th to 29 th June. The German Chamber of
Commerce is organising a German Happy Soccer Night on the
occasion of the first attendance of the German team against
Poland on 9 th June, 2:45am (followed by a public holiday!)
The 8 th German Ball in Beijing
1 st November, 2008
November may still be a long way off, but for companies wanting to name the
tune people dance to at the biggest annual event for the German Chamber and the
German community in Beijing, now is the time to act! Past editions of the Ball
have been very successful, with up to 700 guests attending. Sponsoring opportunities
at http://china.ahk.de/en/chamber/beijing/
Contact: Ms. Katrin Loch | Tel: 010-6590 6930
Email: germanchamber@bj.china.ahk.de
German Chamber Starts Training Program in
Tianjin
Professional Receptionists One-day Workshop in Tianjin on 20 th June
Receptionists are charged with a responsibility that may affect the success of an
entire organization: making a good first impression. GCC • Beijing will now offer
its Professional Receptionist Training Program in Tianjin. Objectives: handling customer
enquiries, general correspondence, logistical coordination, time management.
Contact: Ms. Wang Man | Tel: 10-6590 0926 ext. 302
Email: wang.man@bj.china.ahk.de
German Business Forum 2008
The GCC • Beijing is organizing a high level German Business Forum during the
Olympic Games 2008 in Beijing. It will serve as a platform for information and
exchange for German companies covering the topics Energy & the Environment,
Industry, Healthcare, Services and Market Entry. The half-day events will welcome
German business people as well as their international guests.
Contact: Ms. Constanze Boening | 10 6590 0926 ext. 201
boening.constanze@bj.china.ahk.de
Chamber Notices
SHANGHAI
Kunshan International Beer Festival
The 4 th Kunshan International Beer Festival will be held August 28 th - September
7 th 2008 in Kunshan. Again the GIC will organize a German Tent with original
Bavarian music, beer, food and atmoshere.
Contact:
Mr. Richard Xu | 021 6875-8536 ext.1677 | Email: xu.hongmin@sh.china.ahk.de
Ms. Christine Schuetze | Tel: 021 6875-8536*1677
Email: schuetze.christine@sh.china.ahk.de. | Web: www.china.ahk.de/beerfestival/
Yangshang Deepwater Port Tour
BEIJING
The German Chamber in cooperation with DAKS and Nanhui Government is pleased
to invite you to a half-day tour to Nanhui District on Friday, June 13. Visit 31 km
DongHai Bridge, YangShan Deepwater Port and meet high officials of Nanhui Government.
We will organize 2 busses leaving from Science & Technology Museum
at 1.30pm. Participation will be approved by the German Chamber Shanghai on a
strict first come, first served basis.
Please see our event homepage for the agenda and further information.
www.china.ahk.de 9 | June - July 2008

Business Focus
Sino - German Business
Marking 30 years since the Sino-German Science and Technology
Agreement (Abkommen für Wissenschaftlich-Technologische Zusammenarbeit
WTZ), Dr. Schavan toured China from 14 th – 18 th April with
stops in Beijing and Shanghai. Lower Saxony Science Minister Lutz
Stratmann and Berlin Science Senator Jürgen Zöllner, among other
research and education delegates, accompanied her to the events.
Her message: closer Sino-German ties in the realm of education and
research will benefit the economies of both countries.
“Cooperative research and development helps to ensure peace,” Minister
Schavan noted at a reception held at the German Embassy in
Beijing. Chinese Minister of Science and Technology Wan Gang and
German Ambassador to China Dr. Michael Schaefer, among other
leading representatives, gathered for her presentation, which cited
the potential for the Sino-German research and education partnership
in the public and private sectors. Such cooperation is clearly in both
countries’ interest, as it will foster not only cultural understanding,
but also economic and technological benefits long-term.
Innovation and Investment
As Minister Schavan emphasized during her visit, innovation needs
investment and vice versa. Over the past several years, the European
Union has made a point of increasing investment in R&D. Business
cannot survive without continuous innovation to produce high valueadded
goods. In this capacity, Sino-German cooperation is both beneficial
and necessary.
During conversations with Minister Wan Gang, climate change,
environmental technology, medical research, geology and oceanography
were named among the top areas of focus. She called this new
emphasis “the writing of a new chapter” in Sino-German scientific and
technical cooperation. The cooperative strategy is in line with Germany’s
policy of internationalizing research, thereby increasing the status
of Germany in the global knowledge economy.
Building Strategic Partnerships
At a roundtable discussion hosted by the German Chamber of
Commerce • Shanghai, econet china and German Industry and Commerce,
(Taicang) Ltd, Minister Schavan had the opportunity to discuss
ways in which industry and education could complement one another.
She pointed out that it is imperative to take the entire education
process into consideration, from school to professional life. The job
outlook influences which majors students choose, and motivates
young people to take up innovative career paths. As a result, the
needs of companies are a determining factor.
Voith Paper presents the Minister
with a gift at their contract signing
June - July 2008 | 10
The German Chamber of Commerce in China
Education Key
to Development
Dr. Annette Schavan, Federal Minister for
Education and Research, emphasizes value
of education and research cooperation
Many German companies present voiced their concerns about the socalled
China “talent war.” Among them, Mr. Arved von zur Mühlen of
Lufthansa pointed out that while many unskilled and highly skilled
workers were available, mid-level positions, such as mechanics, were
difficult to fill. He explained that the pressure on Chinese students to
rise to the very top is a contributing factor. Furthermore, participants
noted that often Chinese applicants lack certain “soft skills”, such as
customer service and team work skills (which cannot be learned by
textbook).
Many companies recruit through Chinese universities and look for
Chinese who studied in Germany to close these gaps. Mr. Christian
Molt of Allianz China Life mentioned that he worked with local universities
such as Fudan, Tongji and CEIBS for optimal results, and sponsored
several Chinese students to complete internships at Allianz in
Industry leaders offer insight on the education and research needs
of German companies in China
Aron Mir Haschemi
Ambassador Schaefer
and Minister Schavan at
a press conference

The German Chamber of Commerce in China
Munich. The GIC’s own initiative at the first German training center in
Taicang also aims to provide skilled workers for German companies.
Beyond recruiting local manpower, all participants agreed they would
also like to see more German graduates proficient in Chinese language
and culture. Spokespeople for German education institutions remarked
that many universities are not aware of the demand for German graduates
with Chinese language skills, and that companies must initiate
efforts to build appropriate programs. Possible partnerships with
German companies overseas could offer graduates of such programs
internships, possibly leading to future employment.
German R&D efforts employ few people in China thus far, mostly
due to concerns of IPR and legal matters, mentioned by Dr. Hans
Schniewind of Helaba - Landesbank Thüringen. However, some com-
Minister Schavan addresses participants at
the RoundTable Discussion in Shanghai
Sino - German Business
panies have taken the plunge. Mr. Elmar Weitzel of Bosch Investment
(China) Ltd. mentioned two Bosch R&D centers in China, employing
500 highly-qualified individuals from specialized schools. The Bosch
R&D centers research ways to maximize fuel efficiency, among other
green initiatives, which coincide with German R&D goals.
Marketing German Higher Education
Minister Schavan signed a memorandum with Chinese Education Minister
Zhou Ji covering German activities in China planned for 2009. The
memorandum seeks to present Germany as an outstanding education
destination for Chinese students. After the USA and the UK, Germany
is already the preferred education destination worldwide.
Her visit in Beijing also included a symposium at Peking University
on Immanuel Kant, one of Germany’s foremost philosophers, who
has enjoyed intense study among Chinese scholars. Kant had called
China the “most cultured empire in the world,” though, like most
of his contemporaries, he relied on his own interpretation of Jesuit
reports for his information. Whether it was a description of Chinese
religious beliefs, the great architectural and planning achievements
of the country, the passion for astronomy or the production of fake
art objects, Kant offered one of the most objective representations of
China of his age.
Other highlights of the trip included a visit to the Siemens Corporate
Technologies Research Center together with Wan Gang, where the two
were welcomed by GCC • China Chairman Dr. Richard Hausmann, CEO
and President of Siemens; a visit to the Sino-German Science Center
in Beijing, an event held at the Tongji University in Shanghai with
Consul General von der Heyden, a visit to the ChinaLas Laser Laboratory
and afternoon activities with the German School Shanghai.
Press Conference Highlights Current Projects
Speaking to the Chinese press at the end of her Beijing visit,
Minister Schavan highlighted the groundbreaking participation of
China in two cutting-edge science projects in Germany, the FAIR
accelerator in Darmstadt and the XFEL x-ray laser in Hamburg.
Both projects are majority-financed by the German ministry, but
each has 12 to 15 international partners, including China. Thus,
Sino-German cooperative projects are now being carried out in
Germany, not just in China as in the past. The EUR 1.2bn - 1.08bn
projects are to research matter in the universe and molecules for
medical purposes, respectively.
Ambassador Schaefer and Minister Wan Gang
www.china.ahk.de 11 | June - July 2008
Business Focus

Business Focus
Sino - German Business
Based on Ministry of Construction
figures, bfai has determined that only
about two thirds of the 815 treatment
plants in China’s 656 registered cities
were operational at the end of 2006.
Even if 100% had been operational,
this capacity would have been far
below the need. (Fig. 1)
Improving Water
Treatment
Current investment trends measure
the construction of treatment plants
rather than plant utilization, distorting
the financial flows. Some treatment
plants are without a connection
to the sewage system. Others are
switched off because no provision has
been made to pay for their operation.
Only in east coast megacities are the
collected effluent fees sufficient to
cover operations.
A lack of funding and, to a lesser extent, the search for “expert” partners,
is driving the numerous BOT projects (build, operate, transfer)
that have been springing up in China for a number of years now.
Fu Tao, the director of the Water Policy Research Center at Tsinghua
University, places the percentage of the approximately 1,300 completed
projects that fit the BOT/TOT mold (TOT stands for “transfer,
operate, transfer”) at 30-40%. Current projects come in closer to 50%.
Chinese companies are usually the partners in such projects, and their
expertise lies in construction, not operation.
Projects known as DBO (design, build, operate) projects are still quite
rare in the water treatment market. In such projects, the design is
usually mandated by communal agencies charged with treatment and
then construction, and operation is contracted out to third parties for
15 to 25 years. The reasoning behind this is to keep overall costs low,
but the result is often expensive, as designs are inefficient.
New Finance Strategy Provides Opportunities
Recently both domestic as well as international investment funds have
identified China’s waste water treatment sector as a source of potential
gain. To put together a successful BOT project, these financial professionals
bring technology suppliers and operators on board. The first
projects are already in the works. This particular constellation could
become an important opportunity for smaller suppliers of technology
who were unable to supply projects in the past. (Fig. 2)
The government has drawn its own conclusions from the developments
of the past years. In November of 2007, the subsidies for the construc-
June - July 2008 | 12
The German Chamber of Commerce in China
Clean and Clear:
Water Treatment Projects Create Opportunities for Small
Technology Suppliers
Fig. 1 | Sewage treatment situation in China’s 656 registered cities in the year 2006 (in billion m 3 )
Sewage Treated sewage Treated in plants Number of plants Two and three Annual capacity Utilization
stage plants of the plants (in %)
36.3 20.3 15.7 815 689 23.2 67.7
Source: China Urban Construction Statistical Yearbook 2006, bfai
Fig. 2 | Important Chinese Imports: Water Supply and Sewage Treatment 2007
Value in Million USD
2500
2000
1500
1000
500
0
Oscillating Positive
Displacement Pumps
Total Imports
Imports from German
Other Rotary Pumps Parts for Water Cleansing
and Filtering Aparatus
Source: General Administration of Customs of the People’s Republic of China
Part
Machinery for Agitation
Sanitation Fittings
tion of treatment plants (independent of their operation)were replaced
by performance-based allocation of funds. According to the Ministry of
Finance’s new regulations, funds will only be freed up in future if the
sewer systems planned according to demand have been built and the
water’s chemical oxygen demand (COD) has measurably dropped. 70%
of funding is earmarked to finance the sewage system and 30% for the
drop in COD.
The central government’s stronger requirement of local government to
be performance oriented in the field of sewage treatment introduces
performance and sustainability of treatment facilities into the equation.
It remains to be seen to what extent German technology and treatment
plant suppliers will be able to profit from this opportunity.
Corinne Abele | bfai
The Federal Office for Foreign Trade (Bundesagentur für Aussenwirtschaft-bfai)
is a service agency of the Federal Ministry of
Economics and Technology (BMWi). Its job is to collect and
prepare information about world markets. Bfai focuses especially
on German small and medium-sized businesses wishing to enter
foreign markets.
Simone Menshausen | Referat Asien/Pazifik
Email: menshausen@bfai.de, Tel: 0049221/2057 ext. 266
Fax: ext. 212 | Web: www.bfai.de
Translated by GC Ticker

The German Chamber of Commerce in China
Sino - German Business
www.china.ahk.de 13 | June - July 2008
Business Focus

Business Focus
Sino - German Business
June - July 2008 | 14
The German Chamber of Commerce in China
Chongqing hosted the second stage of the 3-year
event ‘Germany and China – Moving Ahead
Together’ (DuC) from 9 th to 17 th May. While overshadowed
by the disastrous earthquake that hit
Sichuan province on May 12 th , the display of
German technology, education, urban planning,
lifestyle, and culture attracted thousands of
citizens over 8 days. The cultural program drew
much interest as German bands like Fools Garden
heated up the city, and local actors performed
a play by German author Bertolt Brecht in
Chongqing’s Sichuan Opera style.
Germany and China
– Moving ahead together
German Organizations Raise RMB 2 Million for Earthquake,
Present Urban Development Solutions

The German Chamber of Commerce in China
Due to the earthquake catastrophe, the organizing committee of
Germany and China - moving ahead together (DuC) and the city
government spontaneously agreed to arrange a charity concert on
Chongqing’s Chaoqianmen Square on May 17 th . Combining performances
of Chinese and German artists, the concert was to commemorate
the victims of the Sichuan earthquake and make a call for donations.
Speaking on behalf of the German Asia-Pacific Committee of
German business (APA), Dr. Martin Brudermüller of BASF handed over
two donations to the Chinese Red Cross of Chongqing, one made by
the corporate partners of DuC, the other in the name of the German
Chamber of Commerce and the German industry in China. The two contributions,
at RMB 1m each, totaled RMB 2m.
Esplanade Sparks Interest
Throughout the eight-day event, the center of attention lay at DuC’s
Germany esplanade. Perfectly placed on the Dalitang Square, it displayed
9 colorful pavilions of DuC’s corporate partners Allianz, BASF,
Daimler, Deutsch Bank, DHL, Siemens and its station partner Herrenknecht,
Bosch and Düsseldorf Center China. The companies showcased
their contributions to environmental protection and sustainable city
development, as well as innovative German technology. Framing the
corporate pavilions, the event stage and conference and cultural pavilions
complemented the displays.
Vocational Training - Made in Germany
Addressing the growing interest of the Chongqing government in German-style
vocational training projects, a conference on vocational
training took place on 14 th May. Organized by the Education Commission
of Chongqing and GTZ, the conference highlighted existing projects
of GTZ, Hanns-Seidel-Stiftung, and InWent. Jens Hildebrandt,
Head of Business, Procurement and Training Services at the German
Chamber of Commerce • Guangzhou, talked about the role of IHKs and
AHKs in vocational education in Germany and abroad, and introduced
sample projects.
Additionally, iMove (international marketing of vocational education
and training, an initiative of the Federal Ministry of Education and
Research) led a delegation of 8 German vocational training providers.
These training providers followed iMove’s call to Chongqing to find
partners for potential training projects modeled after the German dual
system. To meet this goal, the conference ended with a matchmaking
event between education providers from Chongqing and Germany.
Sino - German Business
Economic Forum Promotes Investment
The DuC Economic Forum on May 15 th and 16 th organized by the
Chongqing Economic Commission (CEC), DuC’s project management,
and the German Chamber in China. A small number of German companies
from all over China, among them Siemens, came to Chongqing
in order to assess cooperation, sales, sourcing and investment possibilities.
The CEC took also the opportunity to introduce Chongqing’s
investment climate, its leading industries and its main development
targets to the participants.
Urban Visions Raises Environmental Awareness
The Urban Visions activities of the DuC events emphasized that
everyone can do his/her part to ensure a sustainable path for
development. The Multi-Media Exhibition on Sustainable Urban
Development “My Home, My City and My Planet,” stirred intense
interest in the Germany Promenade, drawing large crowds. The
exhibition presented the ideas behind the macro-level concept
of sustainable development, providing an interactive experience
linked to everyday life. Displays showcased forward-looking
German technologies and products, including booths from the
dena, Duravit, econet china, Herrenknecht, Remondis and Viessmann.
Additionally, the German Federal Ministry of Transportation,
Building and Urban Affairs highlighted the achievements of
successful urbanization in Germany.
A student design competition hosted at urban Visions in conjunction
with the Chongqing University gave students the opportunity
to participate in their city’s future with the topic “A
Sustainable Future for Chongqing.” This activity resulted in captivating
creations regarding the urban planning of the Shapingba
area near Chongqing University, now facing traffic and environmental
problems. The competition successfully stimulated green
thinking among architecture and urban planning students.
Further activities included a Workshop Low Energy China, a Sino-
German Environmental Protection Forum on the topic “Water,
Life Element” with 2 leading German experts from the Fraunhofer
Institute, a workshop on building applications of sustainable
building material and an exhibition entitled “Bamboo—Future
Building Material” highlighting the latest trends in bamboo
architecture at the Three Gorges Museum.
www.china.ahk.de 15 | June - July 2008
Business Focus

Business Focus
Sino - German Business
Contrary to popular perception, differences in culture
or personality are seldom the source of interpersonal
or inter-group conflict. The most common cause is
actually the mindsets which predetermine how an
individual perceives another. Such mindsets influence how people
work with individual and cultural differences. Successful global leaders
are flexible, open to new experiences, have well-developed relationship
skills and optimistic attitudes.
In most western-based companies, giving and receiving feedback is
an essential leadership skill. It is important to consider what kind of
training and support China-based managers have had for giving and
receiving feedback, especially whether they have experience doing so
in China.
Prior to entering a western company, many Chinese employees do not
have much experience with western-style feedback which tends to
be verbal and direct. Traditionally, Chinese-style feedback is indirect,
non-verbal and most often negative. However, these days Chinese
employees are increasingly open to receiving improvement-focused
feedback, and when administered correctly, all parties can benefit.
Question: How many of the Leadership Universals have something
to do with Feedback & Performance Management? Answer: All of the
above.
Giving and Receiving Feedback
Different feedback styles can lead to misunderstandings. Often people
from cultures that favor relatively direct and verbal forms of communication
can misinterpret or even completely miss messages that are
less direct or nonverbal. Very direct messages may cause offense to
those who are more cautious about delivering sensitive messages.
When providing feedback in cultures that are more task-oriented,
the person and the task are separated, and the focus is on how to do
the task well. Such cultures find it much easier to give direct, taskoriented
feedback. In more relationship-oriented cultures, the person
and task are not separated, making any type of feedback more personal.
Feelings and facts are both important in these more indirect
June - July 2008 | 16
The German Chamber of Commerce in China
Giving Feedback & Managing Performance
Across Cultures
8 Universal Requirements of Leadership
1. Develop a clear sense of purpose, direction and connection
2. Create relationships of trust and mutual respect
3. Create a climate of open communication and continuous
improvement
4. Establish goals, standards, and accountability
5. Communicate both performance as well as behavioral
expectations
6. Provide tools and resources for success now and later
7. Provide rewards, consequences and performance feedback
8. Lead by example: model the behavior you want
“It’s not our differences that divide us, it’s our judgements about each
other that do.” (Wheatly, 2002) Many German companies in China face
HR retention and staffing struggles. Implementing a constructive feedback
system can help to retain employees and provide motivation for
optimal performance.
cultures when giving critical feedback. When people are aware of different
feedback styles and options, they are able to give and receive
feedback in a style that is more culturally appropriate.
Direct Feedback is Not Always Best
A manager with a small company wanted to replace one of the local
team members. The team member had not measured up to expectations.
Even with direct feedback about performance he was showing
few signs of improvement. However, the team was small and the nonperformer
had a good relationship with all the other team members.
So the manager realized that terminating the team member was going
to have a negative impact on the morale of the remaining team.
Finally he tried an indirect approach. The team member’s employment
contract was nearing the end of its term. The manager mentioned to
some the other colleagues that he was wondering if he should renew
it. He suggested that the nature of the job was going to become more
complex and that the team member in question might not like that
type of work. By relying on the grapevine of the non-performer’s colleagues
to relay the message that the contract would not be renewed,
he gave indirect feedback. A short while later, the non-performer contacted
the manager and said he would not be renewing his contract as
he wished to change his career path. In the end, everyone saved face
and the morale of the team remained intact.
The Feedback Skills Gap
There is a huge need for effective leadership in multi-cultural organizations.
Many companies feel they don’t have an adequate number of competent
global leaders. Most of them believe that their existing leaders
need additional cross-cultural leadership skills – giving and receiving
feedback ranking high on the list. Often organizations select leaders for
international assignments based on technical expertise. Many managers
without experience leading an international team are reluctant to give
constant feedback. Unfortunately, the negative consequences can be
costly. They include: premature termination of the assignment, reduced
organizational morale, lack of cohesion and poor performance.
Why Are Managers So Reluctant to Provide
Feedback?
• Fear of the other person’s reaction - people can become very defensive
and emotional when confronted with feedback and many managers
are very fearful of the reaction
• Fear of de-motivating the receiver of the feedback instead of motivating
the receiver to improve
• The feedback may be based on subjective feeling and the manager
may be unable to give concrete information if the other person
questions the basis for the feedback

The German Chamber of Commerce in China
Feedback Pitfalls
• Defensiveness, distorted perceptions, guilt, transference, or past
history
• Misreading of body language or tone
• Messages not understood clearly (i.e. language problems)
• Selective hearing and ignoring non-verbal cues
• Power struggles
• Self-fulfilling assumptions
• Hesitation to be open
• Distrusted source, poor translation, state of mind
Characteristics of Effective Feedback
• Descriptive (not evaluative) - This prevents defensiveness. Describe
your own reactions or feelings; use “I messages” and be assertive.
• Specific rather than general (avoid accusations). Describe objective
consequences that could occur and back up your feedback with hard
data when possible.
• Focused on behavior, not the person. It is important that we refer
to what a person does rather than to what we think he/she is.
Feedback is a form of communication that gives a person information
about how their behavior affects the performance of the
team or success of the task. It is a way of helping others improve
or change a particular behavior while acknowledging and reinforcing
their positive points.
Sino - German Business
• Constructive and given to help, not to hurt. After all, we are looking
to improve performance.
• Directed toward behavior which the receiver can do something
about. A person gets frustrated when reminded of a fault over which
he has no control.
• Solicited rather than imposed. Feedback is most useful when the
receiver wants to improve and actively seeks feedback.
• Well-timed (considering the person’s readiness to hear it, support
available from others, and so forth). Excellent feedback presented at
an inappropriate time may do more harm than good.
• Conditional in order to allow a person to accept it for him/herself,
in accordance with his/her own goals and needs. If we give advice
we tell someone what to do, and to some degree that takes away
his/her freedom to decide for him/herself.
• Checked to insure clear communication. One way of doing this is to
have the receiver try to rephrase the feedback. No matter what the
intent, feedback can sometimes seem threatening and thus subject to
considerable distortion or misinterpretation on the receiver’s part.
• Followed by attention to the consequences of the feedback. The
supervisor needs to be aware of the effects of the feedback.
Paul von Wittgenstein (CAMD - www.camdltd.com) has been
coaching and training in China since 1998. Frank Lee (Frank Lee
Associates - www.franklee.com) has coached more than 70 CEOs
and personally trained 4,500 managers over 30 years. Combined,
Paul and Frank have over 50 years of experience with management
and leadership development.
www.china.ahk.de 17 | June - July 2008
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Tianjin TEDA - North China
Wiring China
Tianjin Economic and Technical Development Area
TEDA is the core of the well-known Tianjin Binhai New Area (TBNA).
The 11 th Five-Year-Plan incorporates further development initiatives
for the area, showing the government’s high level of interest in its
progress which resulted in a GDP of RMB 98.87bn in 2007, 18.7% of
Tianjin’s total GDP. According to their strategy, the Binhai New Area
aims to become an asset to regional development in a fashion similar
to the rise of the Shenzhen Special Economic Zone and the Shanghai
Pudong New Area.
The Tianjin Economic and Technical Development Area (TEDA),
founded in December of 1984, is one of China’s first 14 state-level
development zones. An area of 33km² was originally reserved for the
site, and due to its success as a top manufacturing base for electronic
and communications products, most of this space is now occupied.
The output of products such as cellular phones and monitors is currently
the highest in the country.
Connecting Beijing to the Pacific
TEDA is located in the Tanggu District, a coastal district of the Tianjin
Municipality 50km to the east of Tianjin’s city center. Light rail connects
TEDA and Tianjin downtown, starting from Zhongshanmen
Station and passing Dongli Development Zone, TEDA and the Tianjin
Free Trade Zone for a total of 46km.
TEDA is 180km away from Beijing Capital International Airport, about
35km from Tianjin Binhai International Airport and 5km from Tianjin
New Harbor. Coming from Beijing, TEDA is easily accessible via the Beijing-Tianjin-Tanggu
Highway and by rail. The Beijing-Tianjin-Tanggu
Highway runs through TEDA and divides it into two parts, the financial,
trading and residential area covering 8.5km² in the south and an industrial
park spanning an area of 24.5 km² in the north.
TEDA’s Top Industries
• Electronics and communications industry (61%)
• Bio-pharmaceuticals (5%)
• Machinery manufacturing industry and car production (25%)
• Food and beverage industry (6%)
A total of 14,000 industrial companies have set up shop, among them
nearly 4,500 foreign-funded enterprises.
Province of Hebei Increases Commercial Relations with German
June - July 2008 | 18
Plans for Extension Bright
Shijiazhuang – Hebei’s provincial government plans to encourage investment between Germany and Hebei
Province, increasing the number of Hebei companies in Germany as well as welcoming German investment
in Hebei. An exhibition in Düsseldorf will kick-off the effort in October.
Beatrice Han, Siemens Ltd. China and Norbert Stöhr,
Bayer AG China share a toast with Hebei Vice Governor
Yang Chong Yong
Director General Wang Zhiming of the Ministry of Commerce’s
North European Division stated that while
Hebei had traditionally been a producer of grain,
cotton, textiles, leather, cement, coal, iron, steel, and
heavy vehicles, it was transitioning toward coal chemistry,
pharmaceuticals, new materials including building
materials, electronics and specialized vehicles,
while upgrading its traditional strengths. Shijiazhuang
National Hi-Tech Industry Development Zone, Handan
Economic Development Zone and Hebei Xinji Economic
Development Zone all invite investment.
The German Chamber of Commerce in China
Several years after its inception, TEDA’s area could no longer meet
increasing development demands. As a result, three additional industrial
parks and specialized sub-zones were built outside the original
area, for a total area of 125km².
The Yat-sen Scientific-Industrial Park, located in the Wuqing
District, was founded in May of 1993. In 1996, under approval of the
Tianjin Municipal Government, it became a sub-area of TEDA specializing
in electronics and IT products.
In 2003, TEDA cooperated with the Jinnan District of Tianjin to build
the Micro-Electronic Industrial Park (MIP), which is an extension
of TEDA with new space, industry, management and service functions.
The MIP focuses on electronic components and mobile phone manufacturing
with 92 foreign-invested companies from 12 countries.
The Chemical Industry Park at TEDA was established in 1996 in the
Hangu District of Tianjin. The park is TEDA’s petrochemical base. By
the end of December 2006, 58 projects had been signed in the Chemical
Industry Park, with a total contracted investment of USD 940m.
Permission was granted to TEDA in 2005 to develop an additional
zone, TEDA West Zone, which focuses on industries with high technical
content, good prospects, and less environmental pollution, such
as bio-pharmaceuticals, auto parts, electronics and communications,
mechanical manufacturing, and new energy industries. By the end of
2007, 60 enterprises had settled in the TEDA West zone, making the
zone an important part of the modern manufacturing and R&D application
base. The contracted overseas investment totaled USD 2.1bn.
Overseeing Progress – Administrative Structure
There are two levels of administration authorities for the Industry
Park, TEDA Investment Holding Co. Ltd. and TEDA Administration Committee.
The Administration Committee is an organization set up under
the authority of the Tianjin Municipal Government. Its responsibilities
include: formulating and amending the development projects, plans,
and industry policies; approving investment projects and land use and
supervising construction projects; coordinating daily administration
by different governmental authorities, such as the customs office and
foreign affairs office. TEDA Investment Holding Co. Ltd. has responsibility
for development. The company’s activities include real estate,
infrastructure development and the operation of public utilities like
water, waste water, electricity, steam and gas.
MOFCOM Northern European Affairs Department Director
General Wang Zhiming and European Affairs Deputy Director
Zhang Shuna enjoy after dinner reading in Hebei

The German Chamber of Commerce in China
Changshu
Land of Fortune in Provincial China
Jiangsu Province, Population: 1m
Changshu, not to be confused
Photo: Shajiabang, Changshu ©Imagine China
with nearby Changzhou, gets
its name from its consecutive
fertile harvests throughout
its 3,000 year history and
its reputation as a “Land of
Good Fortune.” The fertility
of its farmland and natural
beauty of its gardens characterizes
the city traditionally. In addition to its cultural and historical
significance, Changshu boats a high per capita GDP at USD 4,500 (2003
figures), and a comprehensive compulsory education system, one of
the best among county-level cities in China. As a result, it has been
listed at among the top ten National Developed County-level Cities
and Ten National Wealthy County-level Cities.
Traditional Market & Trade Port
Located at the delta of the Yangtze River, Changshu is a traditional
port hub, known for provincial markets for tea, rice and mulberry
leaves. Administratively, Changshu remains subordinate to Suzhou,
43km to the south. However, its proximity to Shanghai (100km east)
and Wuxi (45km west) maintain its status as a provincial base for
foreign trade. Its port currently serves the Suzhou Industrial Park and
further harbor facilities are currently being developed to expand services
to Suzhou and Wuxi and take advantage of this strategic position.
Currently, 3 wharves with 35,000 and 5,000 tonnages have been
completed in the port zone, open for business.
Development Zone Marks Growth
Over the past several years, foreign companies have also taken note
of the city’s charms. FDI has totaled more than USD 53m in the industrial
zone alone and countries such as Japan, the U.S, Europe, and
Singapore have initiated more than 2,000 new investment projects
in recent years. The development zone, named the Changshu Economic
Development Zone, is supported by the Jiangsu government and
includes the Industrial Park Zone, Center Zone and High-Tech Development
Zone. Main industries include metallurgy, textiles, construction
materials, chemicals, pharmaceuticals, energy & resources, communications,
commercial services and tourism. Of note is the local government’s
positive and welcoming attitude towards new investment, providing
“first-class services from beginning to end.”
Enforcing Environmental Protection
Pollution in the Yangtze River has greatly affected Changshu due to its
location in the delta, as wastes flow from the entire industrial chain
along the Yangtze’s banks. Local residents, especially farmers and the
tourism industry, have alerted officials to their concerns that such
contamination could diminish the region’s traditional fertility and
natural appeal. As a result, the Changshu government has made above
average efforts to curb contaminants and clean water sources, leading
the Chinese government to name the city a National Model City for
Environmental Protection.
East China - Changshu
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Chongqing - South China
Chongqing
Urban Sprawl Continues in Southwest China
Chongqing is known as the city of mountains, rivers, and fog. Located
in the transitional area between the Qinghai-Tibet Plateau and the
plain on the middle and lower reaches of the Yangtze River, the municipal
area boasts a population of 31.4m, making it one of the largest
municipal districts worldwide. The urban sprawl borders both Hubei
and Hunan provinces in the east, Guizhou in the south, Sichuan in the
west and north and Shaanxi Province at its northeast corner, covering
a total area of 82,400km 2 .
Infrastructure Constructs Economic Boom
In 2006, the total local GDP reached RMB 348.6bn, 12.2% higher than
in 2005; and the total local GDP per capita reached RMB 12,437, up
11.9% over the previous year. After macro adjustment and opening
to the rest of the world through intensive infrastructure construction,
Chongqing is now generating increasing interest in the West.
Chongqing is the only transportation hub in West China that integrates
water, land, and air transportation. At present, there are water
transportation pivots which are the main districts, Wanzhuo and
Fuling. Additionally, Jiangjing, Yongchuan, Hechuan, Fengjie, and
Wulong have ample docks and harbors, upgrading the water transportation
system in the Chongqing municipality. In total, the dock sites
have capacity of 66m tons. Chongqing Jiangbei International Airport
accommodates over 50 domestic and international airlines. Furthermore,
Chongqing offers the largest rail hub in the upper reaches of the
Yangtze River and Southwest China.
Industry Takes Off
Chongqing has its advantages for both heavy and light industries,
especially manufacturing, which makes Chongqing one of China’s
major production bases for motorcycles, automotives, instruments
and meters, refined chemicals and large transformers. As a result,
Chongqing has become an important production base and is now
one of the 10 major bases for the export of mechanical and electrical
products. The municipality boasts the largest aluminum processing
plant, and 382 large car and motorcycle makers. Its output of motorcycles
makes up one third of the total national output and its export
of motorcycles equals more than half of the national figure. In 2006,
all industrial sectors saw added value of RMB 123.4bn, an increase of
18% over the previous year. Large industrial enterprises increased by
20.6% to RMB 84.5bn.
Chongqing Development Zones:
• Chongqing High-Tech Industrial Development Zone is a national
High-Tech Industrial Development Zone approved by the State
Council in March 1991, as well as one of the 5 pilot development
zones in China. Covering 73km 2 , it includes the Shiqiaopu High-Tech
Development Park, Erlang Science & Technology City and the High-
Tech Park in the New North Zone.
• Chongqing Economic & Technical Development Zone is one of
the earliest national economic & technical development zones in
West China. So far 11 Fortune 500 Companies are present within the
Zone, including Ford Motor, Metro, Ericsson and Honda. There have
June - July 2008 | 20
The German Chamber of Commerce in China
been 46 projects with
an investment of above
USD 10m set up within
the Zone.
• Chongqing Xiyong
Micro-electronic Park
is located within the
Xiyong Town to the
west of central Chongqing,
only 1.8km away from the largest railway distribution center
of West China. The Park has a planned area of 30km 2 , consisting of
the micro-electronic zone, software zone and service zone. Phase 1
of the Park will include 7.4 km 2 Photo:© Imagine China
as its initial zone. So far 6 projects
have been signed, amounting to USD 2bn. Construction of chip and
software production facilities has already begun.
• Chongqing (Changshou) Chemical Industrial Park is located
within the Changshou District to the east of Chongqing suburbs
with a planned area of 31.4 km 2 . Since the start of its construction
in September 2003 to the end of 2005, there has been involvement
of more than 30 well-known enterprises, contracting investments
totaling RMB 22bn.
Foreign Trade
Chongqing’s foreign trade has surged for 5 years running, and its total
import and export value in 2007 hit a new high of USD 7.44bn last
year, up 36% from one year earlier. In 2007, exports rose 34.5% to
USD 4.51bn, and imports climbed 38.3% percent to USD 2.93bn.
The Chongqing Export Processing Trade Zone is a special area under
customs control; the customs authority aims to adopt a “onetime declaration,
onetime audit of shipping document and onetime check of
goods.” On top of these facilitation measures, customs clearance procedures
happen around the clock. Customs facilities, the commodity
inspection authority, banks, shipping and storage companies are all
available through the Zone’s import and export administration services.
The exporters also enjoy tax incentives which are applicable to
the export processing zone and national economic & technical development
zone.
Economic Facts
Item Value Unit 2006
GDP Billion USD 43.8
Gross Industrial Output Billion USD 40.3
Foreign Direct Investment Billion USD 0.7
Exports Million USD 3.4
Source: Chongqing Statistical Yearbook 2007
The ongoing event “Germany and China – moving ahead
together” came to Chongqing in May. This diverse forum covers
a wide variety of topics including urbanization, business, education,
culture and science. Germany, in close cooperation with the
city of Chongqing, presented future urban visions and invited all
to sample education and business, music and food from Germany.

The German Chamber of Commerce in China
www.china.ahk.de 21 | June - July 2008
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