GC Ticker 20 - AHK Greater China - German Chamber of ... · rently the city is preparing to present...

December - January 2007 | 16

The German Chamber of Commerce in ChinaB

usi

nes

s Fo

cus

www.china.ahk.de 17 | December - January 2007


usin

ess Focus

East China - NanjingQingdao - North China

NanjingProvince: ShandongPopulation: 7.3mArea: 10,654 km2

Sister cities: Wilhelmshaven, Paderborn

GeographyAlthough not the provincial capital, Qingdao is the largest and best known city in Shan-dong Province. The name Qingdao literally means “Green Island” which refers to its particular location: Qingdao is a picturesque coastal city that lies on the southeastern tip of Shandong Peninsula, located in Jiaozhou Bay with the Yellow Sea to the east and south and moun-tains in the north. The total coastline of Qingdao municipality stretch-es 730km.

HistoryQingdao was a German concession for 17 years, from 1897 to 1914. During this time the Germania Brewery, China’s first, began brew-ing Tsingtao Beer. Today, Tsingtao is China’s best-known brand, both nationally and worldwide. In addition to beer culture, the Germans brought German architecture to the city, giving Qingdao a unique Eu-ropean flare.

TourismBoth Chinese nationals and foreigners, most notably from Southeast Asia, frequently visit Qingdao. Last year, the city hosted more than 18m visitors. A wide variety of draws including beaches, European-style architecture, clean air and historical sites among them Confucius’ hometown nearby, attract a variety of tourists. In 2008, the sailing competition of the Olympic Games will take place in Qingdao, so cur-rently the city is preparing to present itself to the world.

Infrastructure• Qingdao Liuting International Airport is located in the Chengyang

district, about 30km north of the downtown area. Currently it has 14 international and 72 domestic routes in operation. The passenger handling capacity of Qingdao airport was 6.38m in 2006.

• The Port of Qingdao has been in operation for 115 years, and is home to the country’s third largest container facility which handles in excess of 6m TEU annually. The port has three different areas, the Old Port Area, Huangdao Oil Port Area and Qianwan New Port. In 2006, the port achieved a record volume of 224.15m tons and a container transportation volume of 7.7m TEU, representing a 22.1% increase over the previous year.

• The Jinan-Qingdao Expressway, which connects the city with the provincial capital Jinan, is the main east-west artery in Shandong Province.

• Qingdao’s ferries provide transportation to Korea and Japan.

Industry• In 2006, Qingdao’s GDP reached RMB 320.7bn, comprising 15% of

Shandong Province’s GDP (RMB 2184.7bn).• The main industrial sectors of Qingdao are electronics, petrochemi-

cals, pharmaceuticals, machinery manufacturing, building materials and processing trade.

QingdaoProvince: Capital of JiangsuPopulation: 6.4mArea: 6598km2

Sister City: Stuttgart

GeographyBordering the Yangtze River Delta (YRD) to the east, with the river itself flowing through the city, Nanjing holds a strate-gic position along the route to Shanghai, roughly 300km to the east.

EnvironmentNanjing is leading the way in making China greener. Using a compre-hensive approach which includes constructing more environmentally-friendly infrastructure, implementing standards for pollution discharge, projects to clean up lakes and rivers and an urban air quality forecast. Furthermore, the municipality has expanded the area preserved for ecological protection, now covering 8% of the total area of Nanjing.

EducationNanjing is renowned nationwide as a center for study, with 37 uni-versities and colleges, 300,000 undergraduate students and 25,000 post graduate students enrolled. The city also boasts 30 post-doctoral research stations supported by the state. These figures make it one of the top four most important areas for higher education in China.

IndustryWith the five major industries of petrochemicals, electronics, automo-bile manufacturing, steel and energy as its foundation, Nanjing proves a formidable industrial base. Over 36 sectors are represented in all.

Ranking in first place for its output of finished petrochemical products nationwide, Nanjing has attracted large chemical companies such as BASF, Shell, DSM and BAYER. The electronics industry is supplemented by a large range of higher education programs in electronic fields in addition to 29 research institutes. Electronics categories range from monitors to micro electromechanical elements, telecommunications to household appliances. Automobile production centers on light passenger cars, motorcycles, and specialized vehicles.

Retail IndustryNanjing has become a modern commercial center, drawing crowds from around the region and even neighboring provinces for shopping and services. Distribution networks reach Nanjing as a logical post-Shang-hai stop, unlike many outlying third tier cities. Commercial centers have sprung up around the municipality to meet the rising demand.

In addition to shopping outlets, Nanjing offers a more sophisticated set of services than many smaller cities in the area. Banking services can be found around the city, and domestic insurance agencies are also widespread and offer a broader range of products in comparison with much of China.

TourismAs one of four the ancient capitals of China, Nanjing offers grand sightseeing for history buffs set amongst a backdrop of rolling hills and beautiful lakes. The Zhongshan Scenic Resort is ranked among the best in China. Additionally, one can visit the Mausoleum of Dr. Sun Yat-sen, the Ming City Wall and the Wuxiang Temple.

• In 2006, total export and im-port volume was USD 39.12bn.

• Qingdao is home to Haier, the third largest producer of house-hold appliances, and Hisense, a major Chinese electronics company.

• Qingdao is rich in wind and solar energy resources. Wind parks have already been in-stalled in the neighboring mountains as well as offshore in the Jiaozhou Bay.

Development ZonesThe Qingdao Economic and Tech-nological Development Zone (Qingdao Development Zone): Approved by the State Council in October 1984, with construction beginning in March 1985. It is a state-level economic and technological develop-ment zone enjoying preferential policies given to coastal economic and technological development zones by the State. The Qingdao De-velopment Zone lies along the west coast of Jiaozhou Bay, covering an area of 271km2 with a population of 300,000. Key industry fields are the port, heavy chemicals, electronics and home electrical appliances, biological pharmaceuticals, international trade and tourism.

The Qingdao Free Trade Zone (QFTZ) was set up in 1992, with the approval of the State Council. It is located within the Qingdao De-velopment Zone. QFTZ is one of 15 free trade zones in China and the only one in Shandong. It covers an area of 3.8km2 and functions as a center for international trade, import and export processing, bonded warehousing, logistics and distribution.

The Qingdao High-Tech Industrial Park was established in June 1992. The 67km2 Industrial Park is located in the eastern part of Qingdao, with industries such as household appliance manufacturing, comput-ers, telecommunications medical equipment, biochemical engineering, and auto parts as its pillars.

Economic Factsheet

Useful Links

• Qingdao Municipal Government: http://english.qingdao.gov.cn

• Qingdao Travel & Living Guide: http://www.thatsqingdao.com/

• Qingdao Tageszeitung: http://german.qingdaonews.com/

Item Value Unit 2006 Change on 2005

GDP billion RMB 320.66 15.7 %

Primary Industry billion RMB 18.40 0.9 %

Secondary Industry billion RMB 167.72 17.2 %

Tertiary Industry billion RMB 134.54 16.2 %

per capita GDP RMB > 39,000 -

Value of Imports billion USD 14.91 15.9 %

Value of Exports billion USD 21.65 23.1 %

Utilized FDI billion USD 3.66 -

CCPIT Qingdao Sub-Council

Beijing

Qingdao

Liaoning Province

Hebei Province

Jilin Province

AnhuiProvince

ZhejiangProvince

JiangsuProvince

Shanghai

Nanjing

International ExchangeMore than 2000 companies in Nan-jing are involved in the import and export of goods, with more than 180 countries and regions represented. Local regulations aim to encourage FDI by establishing law and account-ing offices geared towards interna-tional trade as well as international schools and hospitals. Over 8000 enterprises in Nanjing are partially foreign invested with more than 80 countries represented.

Development ZonesCurrently, Nanjing has 4 national level development zones and 6 pro-vincial level development zones receiving government support. Over 5000 enterprises are active in these zones, with around 1000 receiv-ing foreign investment.

Nanjing aims to differentiate itself by giving its development zones innovative features. So far the strategy has worked, attracting many Fortune 500 companies. The four parks focus on IT, photo electricity and semiconductors, biological and pharmaceutical goods, and soft-ware, respectively.

Useful Links

• Nanjing government website: www.njinfo.gov.cn/

• English information for visitors: http://english.nanjing.gov.cn/



usi

nes

s Fo

cus

Province: GuangdongPopulation: 5.86m Area: 3848km2

GeographyFoshan is located at the center of Guangdong Province, situated east of Guangzhou and south of Jiangmen and Zhongshan. This central location, less than 50km away from Guangzhou, and roughly 100km from Macao and Hong Kong, makes Foshan an attractive emerging city in South China.

Foshan is close to the sea and has a humid subtropical climate, giv-ing it a comfortable annual average temperature of 22°C. The city has 5.86m inhabitants and governs Chancheng, Shunde, Nanhai, Sanshui and Gaoming Districts. The total municipal area is 3848km2 and the city itself has an area of 154km2.

Business Foshan boasted a GDP of RMB 292.82bn in 2006. This translates into a per capita GDP of RMB 50,232, ranking the city 4th in Guangdong. The main pillar of Foshan’s economy is the industrial sector, holding 62.9% of GDP. The service sector has a significant share with 34.5%, while the agricultural sector plays a much smaller role at 2.6%.

InfrastructureFoshan is a major junction for railway routes between Guangzhou, Hong Kong and western Guangdong, keeping the area well-connected to regional hubs such as Zhuhai, Zhanjiang, Zhaoqing, Kaiping and Sanshui. Additionally, Foshan has direct road links to neighboring cities. The highways and expressways running through the city in-clude the Guangzhou-Zhuhai, Guangzhou-Zhanjiang and Guangzhou-Zhaoqing highways and the Guangzhou-Foshan, Foshan-Kaiping and Guangzhou-Sanshui expressways.

With regards to air travel, Foshan’s Airport offers flights to over 20 cities in China including Beijing, Hangzhou and Nanjing. Taking full advantage of its seaside location, the city has constructed 17 exit and entry ports, 4 of them considered “Grade One” ports.

IndustryWith a gross industrial output totaling RMB 629bn in 2006, Foshan is the third largest manufacturing base in the Pearl River Delta after Shenzhen and Guangzhou. The above figure shows an increase of 31.5% over the previous year and demonstrates the strong momentum of Foshan’s growth. The city hosts various national and provincial level industrial zones approved by the state.

The industrial base is rather diversified with more than 30,000 com-panies operating in and around the city. Major industrial products include textiles, electronics, plastics, ceramics, electric appliances, construction materials, foodstuffs and machinery. High tech indus-tries are also present and include IT, energy-efficient appliances, optic machinery, electronic integration and bioengineering.

Industrial Parks Every district in Foshan has established its own industrial park with a well-developed set of infrastructure. Foshan’s National High Tech Industries Development Zone, in the Chancheng District, has imple-mented the system of “one zone with several parks.”

Guangdong Province

FoshanGuangzhou

Hong Kong

Foshan - South China

FoshanThe Nanhai Information Technology Park, located in Nanhai District, is one of four technology parks in Guangdong. It occupies an area of 20km2 and fosters the development of high tech and related acces-sory industries.

Nanhai National Demonstration Eco-industrial Park & South China Environmental Protection Industry Park is considered the only na-tional level environmental protection complex in Guangdong. Cover-ing 35km2, the complex focuses on manufacturing environmental protection equipment and materials.

Other industrial parks include the Shunde High Tech Industries De-velopment Park, Sanshui Central Science and Technology Industrial Zone and Gaoming Cangjiang Industrial Park.

Foreign TradeGross imports and exports were valued at USD 30.9bn in 2006. The gross export value amounted to USD 21.1bn, representing an in-crease of 23.7% over the previous year. Nevertheless, despite its high industrial output, Foshan’s export value ranks only in 4th place in Guangdong after Guangzhou, Shenzhen and Dongguan, with other major cities following close behind.

TourismFoshan was honored in 2000 with the title ‘China’s Excellent Tourism City. ’ Cultural relics protected by the state such as the Foshan Ancestral Temple, Nanfeng Ancient Ki ln, the historic landmarks on Donghua Alley and Nan-hai Kong Youwei’s former residence draw tourists to the area. Foshan Liang Garden and Shunde Qinghui Garden are both listed as two of the four most famous gardens of Guangdong. In addition to sightseeing attractions, events such as Foshan Autumn Color - a Festival Parade for celebrating Autumn Harvest, Ceramic art, Paper-cutting, Foshan Martial Arts, Dragon Boat Festival, and Lion Dance, provide chances for tourists to get in touch with the local culture and traditions.

Economic Factsheet

Item 2006 % change on 2005

GDP RMB 292.82bn 19.3

Gross Industrial Output RMB 629bn 31.5

Accumulative Foreign USD 21.1bn 20.5Trade Value + 9.8bn = 30.9bn

Overseas-Funded Enterprises (accumulated investment) USD 22.1bn (4039 companies)

Source: Guangdong Statistical Yearbook 2007

Useful Links

• Foshan Government: http://www.foshan.gov.cn/english/

• Foshan Tourism: http://www.visitfoshan.com/fsEnglish/

• Foshan International Economic and Trade Information Network: http://www.fsiet.gov.cn/fswjmjout/Englishold/context/005_08.htm

Tai chi performance at Foshan’s 2007 Tourism and Cul-ture Festival


The German Chamber of Commerce in ChinaCh

ambe

r Ev

ents



amber Even

tsBeijing - Chamber Events

Workshop Joint Ventures18th September 2007, German Chamber of Commerce in China • Beijing

Inter-Chamber Networking19th September 2007, CENTRO Bar, Kerry Centre Hotel

The increasingly popular Inter-Chamber Networking night took place, once again, at CENTRO Bar. This time members of the China-Italy Chamber of Commerce and SwissCham came out to enjoy the atmosphere and cocktails at CENTRO with our members.

Praktikantenstammtisch11th September 2007, Schindlers Anlegestelle, Sanlitun, Beijing9th October 2007, Die Kochmuetzen, Jianwai SOHO, Beijing

German beer, Wienerschnitzel, and sauerkraut – the October “Praktikan-tenstammtisch” took place at “Die Kochmuetzen,” a restaurant at Jian-wai Soho. About 40 interns, students, and trainees joined the event in order to exchange information and network in Beijing. Incidentally, the Praktikantenstammtisch is also a good opportunity to meet old friends. One participant commented, “I was quite amazed to meet two people who are actually students at the same German university where I study. Being so far away from home, I did not expect to meet anybody famil-iar.” The September Stammtisch was at Schindlers Anlegestelle. People took the opportunity to give an affectionate send-off to Chang-won Hwang, an intern at the GCC • Beijing who organized the Praktikanten-stammtisch numerous times.

Changchun Round Table Meeting11th July 2007, Shangri-La Hotel, Changchun, Jilin ProvinceTopics: China’s trade policy | China’s new Labour Contract LawSpeaker: Ms. Jutta Ludwig | Executive Director, German Chamber of Commerce • Beijing

China’s foreign trade policy is undergoing significant changes. Aim-ing to achieve balanced trade, Bo Xilai, Minister of Commerce, an-nounced on 15th January that reducing China’s trade surplus would be the main focus of foreign trade policy for 2007. Since 1995, China’s trade surplus has been increasing constantly. China set a new record in 2006 with USD 177.47bn, which it broke again in 2007. To optimize import and export structures, China is taking various measures. One is the VAT refund rate policy, announced by the Chinese government on 19th June, which reduces the amount of VAT (Value Added Tax) refund Chinese exporters receive.

Another important issue of the round table meeting was the new Labor Contract Law, which was approved on 29th June by the National People’s Committee and will take effect on 1st January 2008. The new law is considered the most significant change in the country’s labor rules in more than a decade. It establishes standards for labor contracts, use of temporary workers, dismissals and severance pay.

Finally, Ms. Jutta Ludwig gave a short overview of the visits of high-ranking German politicians in China in 2007: German President Horst Köhler in May, German Minister of Economics and Technology Michael Glos in June and German Chancellor Angela Merkel in August.

Kammerstammtisch17th September 2007, Paulaner Bräuhaus16th October 2007, Paulaner Bräuhaus

A not-to-be-missed event for newcomers to Beijing, the Kammerstam-mtisch also draws quite a few regulars. In October, members were tempted by the Paulaner’s Oktoberfest in the tent next door. Neverthe-less, they came together at the Chamber table to talk about prospec-tive business and upcoming events in the capital.

Topic: Restructuring Joint Ventures in ChinaChair: Dr. Florian Keßler | Head of Legal Department - GIC Taicang Ltd. BeijingSpeakers: Dr. Bernd-Uwe Stucken | Partner - Salans Law Firm Shanghai

The restructuring of joint ventures is a topic of continuing importance for foreign companies in China. At the German Chamber of Commerce • Beijing’s workshop, Dr. Bernd-Uwe Stucken, a partner at Salans Law firm, presented his experiences from more than 10 years of consulting for foreign companies in the establishment, management and restruc-turing of joint ventures in China. A few key strategies and recommen-dations were given by Dr. Stucken.

When handling the typical problems of distressed joint ventures, like liquidity, unqualified employees, non-transparent financing and insuf-ficient cost accounting, Stucken suggested that foreign entrepreneurs are often led by their displeasure about the Chinese joint venture partner’s actions, and do not sufficiently consider the consequences for termination. He explained both proper exit strategies, e.g. sell out, liquidation, and so forth, and continuation strategies, such as buy

out, dry out, etc. He spoke about the advan-tages and risks offered by each strategic option with a brief overview.

Stucken emphasized that when restructur-ing joint ventures, the consequences for all stakeholders must be considered. These include the joint venture partners and other parties, which are directly or indirectly influenced by the joint venture, such as local governments, employees, industrial zones and customers. A thorough stakeholder-analysis can accelerate the restructuring process itself and prepare for business activities after the termination of the joint venture.

Chamber Events - Beijing

Chamber Dinner in Cooperation with BenCham13th September 2007, Kempinski Hotel, Beijing Lufthansa Centre

Cologne and NRW Promotion Event in Beijing13th September 2007, Kempinski Hotel, Beijing Lufthansa Centre

Topic: Cologne – Dynamic Business Location in the Heart of EuropeSpeakers: Zhang Jifu | Director General - Beijing Investment Promotion Bureau; Fritz Schramma | Mayor - Cologne, Germany; Jutta Ludwig | Exec-utive Director - German Chamber of Commerce • Beijing; Dr. Norbert Walter-Borjans | Head of Economics - Cologne, Germany; Dr. Herbert Ferger | Executive Director - Cologne Chamber of Commerce and Industry; Petra Wassner | Managing Director - NRW.INVEST GmbH; David Feng | Managing Director - Koelnmesse Co. Ltd; Wan Jinfa | Director General - China Association for International Exchange of Personnel

Topic: Sharp Sells and Savvy Surfing: The latest in retail and marketing tools Speakers: Mr. Yuan Li Chen | Business Development Manager - Unisono Fieldmarketing (Shanghai) Co. Ltd; Mr. Michiel van RiemsdijkCEO - Yourzine International

On the occasion of the 20th anniversary of the town twinning of Cologne and Beijing, Cologne’s Mayor, Fritz Schramma, visited China to promote Cologne as an investment location. He was ac-companied by representatives of industry, science, education and administration. More than 200 representatives of Chinese companies and other institutions attended the event to learn about the investment possibilities in Cologne.

Together with Zhang Jifu, the Director General of Beijing’s Investment Promotion Bureau, the mayor opened the meeting with a review of the benefits of the past 20 years of town twinning, emphasizing the strong interest of both cities in intensifying the relationship in future.

Dr. Norbert Walter-Borjans, Head of Economics, and Dr. Herbert Ferger, Executive Director of the Cologne Chamber of Commerce and Industry, high-lighted the advantages of Cologne as an investment location: it is international, has an excellent loca-tion in the middle of Europe, boasts an outstanding infrastructure, and offers quick access to millions of customers in Cen-tral Europe. These are among the reasons that 125 Chinese companies have already invested in Cologne.

Jutta Ludwig, Executive Director of the German Chamber of Commerce • Beijing, stressed the importance of the services the German Chamber provides to build up and develop business rela-tionships between German and Chinese companies, encouraging further invest-ments on both sides.

Petra Wassner, Managing Director of NRW.INVEST GmbH, focused on invest-ments in the state of North Rhine-Westphalia, to which Cologne belongs, underlining its advantages for Chinese investments and giving an overview of economic relations with China.

David Feng, Managing Director of Koelnmesse Co. Ltd. gave an overview of the Koelnmesse and its importance for Chinese industry.

Following the presentations, the del-egation answered audience questions and, with typical Rhineland hospitality, invited the guests for further discussions over a glass of Cologne’s local brew, “Kölsch”.

“Winning at Retail”Mr. Yuan Li Chen of Unisono Field Marketing (Shanghai) Co. Ltd, an Omnicom Group company, gave the audience an illustrated insight on current challenges for retail sales in China. Based upon his observations of the points of sale themselves, as well as sales personnel, he presented new tech-nologies that could improve the performance of employees and maximize revenues. The audience was split over the topic. While a majority showed a vivid interest in the Web-based tools he presented, the question of whether Chinese consumers have the same expecta-tions of sales personnel and the set-up of the points of sale as West-erners do was raised.

“Online Marketing Across all Borders” Mr. Michiel van Riemsdijk, CEO of Your-zine International, spoke on another topic with a bright future in China: on-line marketing. With the rapid expan-sion of internet use in China, online marketing tools are becoming indis-pensable for a growing number of com-panies. Efficient management of mail-ing lists, online newsletters, Website-based product promotion, etc. can help

a company to set itself apart from others. Mr. Riemsdijk allowed the audience to get a glimpse of state-of-the-art solutions by presenting selected case studies.



ambe

r Ev

ents



amber Even

tsChamber Events - Guangzhou

Breakfast Presentation: Germany and China – Moving Ahead Together11th October 2007, Garden Hotel Guangzhou

The GCC • Guangzhou hosted a breakfast buffet in cooperation with both the German Consulate General in Guangzhou and the Goethe Institute Hong Kong in order to introduce the concept behind the ini-tiative and to present the various opportunities available for German companies to promote themselves within it. Consul General Friedrich Carl Bruns, Mr. Michael Mueller-Verweyen from the Goethe Institute Hong Kong, GCC • Guangzhou Chairman Mr. Laurent Rung, and Mr. Jens Stuhr of Deutschland - Land der Ideen presented the campaign and detailed opportunities for German companies in the region to par-ticipate in the initiative. Allianz and Siemens, official partners of the campaign, gave an overview of their activities in the project in Nan-jing, the first city to host the initiative. Fifty participants attended the breakfast reception.

Guangzhou HR Business Roundtable5th September 2007, Hewitt Associates Office, CITIC PLAZA, Guangzhou

This month’s roundtable focused on the topic of Dispute Resolu-tion Mechanisms in the context of the New Labor Contract Law. Lu Yunguang and Zach Wortham presented the topic on behalf of WANG JING & Co, a nation-wide PRC law firm and an all-round legal service provider catering to foreigners. Fourteen people participated at the event.

Guangzhou German Happy Hour Networking Drinks6th September 2007, Hooley’s Irish Pub and Restaurant

On 6th September, more than 25 members and friends of the Ger-man Chamber • Guangzhou gathered for the GCC German Happy Hour Networking Drinks event in the newly opened Hooley’s Irish Pub and Restaurant in Guangzhou. Laurent Rung (Chairman of GCC-GZ Board), Alexandra Voss (Executive Director) and Jens Hildebrandt (General Manger GIC Taicang Branch Office) attended the event. The bar has also been chosen to host the GCC • Guangzhou Praktikantenstamm-tisch every second Thursday of the month. Past gatherings took place on September 7th and October 11th.

German Company Presentation at Sun Yat-Sen University20th September 2007, Sun Yat-Sen University, Guangzhou

The GCC • Guangzhou organized the event “Exciting Career Paths in Ger-man Companies” in cooperation with the German Academic Exchange Service (DAAD). Six of the biggest German Com-panies located in the PRD - Siemens, OSRAM Lightning, EPCOS Zhuhai, Dong-guan Heitkamp & Thumann, Tritonic Atco (Shenzhen) and TUEV Rheinland (Guangzhou) - delivered presentations

about what they expect from potential candidates and detailed what they offer to prospective employees. The event drew around 250 stu-dents from various fields of study.

Keith Poon | Siemens, Joerg Hein | Reckli, Frank Jaeger | TCA Cables, Paul Ip | Allianz

German Happy Hour at Hooley’s Pub

Beate Rogler | DAAD & Jens Hildbrandt GIC

Dr. Richard Hausmann welcomed Dr. Schaefer in the name of the Ger-man Chamber by listing his achievements. Dr. Hausmann summarized by pointing out that the ambassador’s career had been focused on giving Germany more weight on the international stage while helping to ensure stable economic development. He welcomed Dr. Schaefer and his family to attend as many Chamber events as possible, point-ing out how important the embassy’s support is to the small and mid-sized businesses frequently represented by the Chamber. Furthermore, Dr. Hausmann mentioned that the political support provided by the “Germany and China - Moving Ahead Together” initiative is vital for German companies offering technical solutions to Chinese organiza-tions. He commended the ambassador for giving this initiative such high priority, and wished him success throughout his tenure.

Picking up on statements made earlier, Dr. Kahn-Ackermann, who is organizing the initiative in China, gave a detailed status report on “Germany and China,” summarizing past events and the future op-portunities for German companies to participate. He gave examples of how companies recently participated in Nanjing. These included an exhibit, conference, seminar, workshop, and competition on urban design and planning. Numerous higher education and research-oriented activities, includ-ing a German Language Olympiad com-plemented the business aspects, and the cultural events provided an avenue to foster cross-cultural understanding.

After the formal session, the ambassa-dor and his wife mingled with the mem-bers. Musical entertainment was pro-vided by Artur Haenn, known under his solo performer’s name “Archie’s Band.” He covered each decade, from the 60s to the present, playing something for everyone.

Chamber Events - Beijing

Chamber Board Dinner with Minister of Science and Technology Wan Gang16th October 2007, Kempinski Hotel, Beijing Lufthansa Centre

The Board of the German Chamber of Commerce • Beijing welcomed the opportunity to have broad-ranging discussions with Minister of Science and Technology, Wan Gang, over a dinner arranged by Board Member Bayer (China) Ltd. He fielded questionss on the bidding proc-ess for various types of projects, technology transfer, intellectual property, local content requirements, wind energy and infrastructure projects, air space negotiations and corporate social responsibility, among other topics. The Board was, as always, impressed by Minister Wan Gang’s command of the German language.

Chamber Dinner Welcoming Ambassador Michael Schaefer27th September 2007, San-Si-Bar

Chair: Jutta Ludwig | Executive Director, German Chamber of Commerce • BeijingSpeakers: Ambassador Dr. Michael Schaefer; Dr. Richard Hausmann | Chairman - GCC All-China Board, Chairman and CEO Siemens; Dr. Michael Kahn-Ackermann | Director - Goethe-Institut Beijing

In the 35th year of Sino-German relations, the German Chamber of Commerce • Beijing welcomed a new German Ambassador, Dr. Michael Schaefer. Leading the preparations for the “Germany and China – Moving Ahead Together” initiative from day one, preparing for Chancellor Merkel’s visit, and required to open the Beijing Book Fair together with State Secretary Bernd Neumann just a few days later, the ambassador had a busy first month. He described it as the “most intense beginning” of a new assignment in his distinguished career, and continued with his first impressions of China.

Recognizing the contributions of the Chamber to Sino-German trade relations, Dr. Schaefer pledged to be available at any time and for any need to the best of his abilities. With a very strong position in the German foreign policy establishment, many years experience with in-ternational organizations, and a background in Asia, Dr. Schaefer will undoubtedly prove a capable representative of Germany. He will surely be a strong ally for German companies in their quest to participate in China’s management of environmental, urbanization, energy, and transportation issues, to name a few, which are increasingly becoming topics of global debate.

Rolf Becker &The Party Band

Shanghai Dance Academy “A Tempting Dance Performance”

String of Pearls Big Splendour Dance Performance

Blue Heaven Band

Shanghai Splendour 2007

GCC • Shanghai’s 10th anniversary German Ball

marked an important milestone. A tradition tran-

scending a decade, this year’s ball proved as ex-

quisite as anticipated. Evoking Shanghai’s past

and present grandeur, this year’s ball certainly did

not disappoint.

Almost 1,000 guests toasted the evening with

bottles of champagne at their tables right from

the moment they entered the ballroom. Entertain-

ment ranging from dance troupes to live bands

energized both the Crystal and Grand Ball rooms,

with the dance floor opened shortly thereafter.

At midnight, Lufthansa provided the lucky draw

prize of two business class tickets to any desti-

nation in Europe. As always, the recipients were

surprised and excited to begin planning their next

vacation. GCC • Shanghai would like to thank all

of our sponsors for making this evening as splen-

did as possible. We look forward to the 11th Annual

German Ball in 2008!



ambe

r Ev

ents



amber Even

tsShanghai - Chamber Events

Taicang Business Brunch26th September 2007, JinJiang International Hotel Taicang

Topic: Enterprise Income Tax LawChair: Mr. Arndt Schulze | German Chamber of Commerce • ShanghaiSpeaker: Mr. Markus Hildebrandt | Senior Manager - KMPG Huazhen

At the Taicang Business Brunch, Mr. Hildebrandt discussed the upcom-ing tax reform which will come into effect as of 1st January 2008. According to Mr. Hilde-brandt, the most sig-nificant change is the fact that domestic and foreign firms will now be taxed at the same

corporate tax rate of 25%, which was not the case before. In the past, foreign firms enjoyed tax holidays and lower rates, giving them an ad-vantage over domestic enterprises. Due to the fact that the corporate tax rate on domestic businesses will decrease, Chinese officials are expected to be watching loopholes extra carefully.

Foreign enterprises who received their business license before 16th March 2007 will be able to use the grandfather clause to allow them to receive the same tax breaks offered before, which allow for two years of tax holidays and three years of reduced rates.

Deutscher Stammtisch11th September 2007, 9th October 2007, Paulaner

Deutscher Praktikanten Stammtisch19th September 2007, 17th October 2007, Mural Bar

Workshop: Marketing & Sales13th September 2007, InterContinental Pudong

Topic: Specifics of a Sales Organization in ChinaChair: Brigitte Wolff | CEO - AbacusSpeaker: Dr. Eva Schwinghammer | Managing Director - TRUMPF SiberHegner Ltd.

German Ball Dance Classes23rd September 2007, 30th September 2007, 7th October 2007, 14th October 2007, 21st October 2007, Shanghai Youth Culture Center

Workshop: Marketing & Sales17th October 2007, Sofitel HylandTopic: Infrastructure Projects – Consequences for Project Manage-ment and Sales & MarketingChair: Brigitte Wolff | CEO - AbacusSpeaker: Mr. Guenter Weckerlein | Weckerlein Consult

Bernd Hauenstein | Bernstein Safe Solutions (Taicang) Co. Ltd, Jia Jing | GIC, Markus Hildebrandt | Senior Manager – KMPG Huazhen | KPMG Huazhen; Martin Neumann | Rampf (Taicang) Co. Ltd, Dr. Tim Stoecker | Bureau Veritas, Michael Maeder | Komet Group

Chamber Events - Shanghai

Joint Workshop: Human Resource & Law3rd September 2007,Sofitel Hyland

Topic: “The Final Labor Contract Law and how it will keep not only HR busy”Chair: Mr. Thomas Seidl | Freudenberg ITSpeakers: Mr. Ralph Vigo Koppitz | Partner – Taylor WessingMr. Rolf Koehler | HR Director for Asia - Freudenberg & Co.

The new labor Contract Law has tremendous im-plications for companies. Not only will HR deci-sions have to be made, but management and controlling functions will be heavily involved.

Mr. Koppitz, German attorney-at-law practicing in China for over 10 years, reviewed the implications of the new Labor Contract Law. Generally, the new Labor Contract Law applies to all labor contracts that are written in the People’s Republic of China (except Taiwan, Hong Kong and Macao), re-gardless of whether they are with domestic or foreign-invested enter-prises. Mr. Koppitz noted that many regulations have been positively revised though a number of points still remain ambiguous.

Now, it is essential for all companies to review all contracts and adapt them to the new law where applicable, carefully considering how to handle open-ended vs. fixed-term contracts etc. The role of the trade

Joint Venture Roundtable2nd September 2007, Hotel Sofitel Hyland

Topic: “Dual Branding,” eine Alternative?Chair: Mr. Kurt Fasser | Senior Advisor - Delegation of Germany Indus-try and CommerceSpeaker: Prof. Waldemar Pförtsch

Prof. Pförtsch reviewed the topic of Dual Branding, in which a company uses a two-tiered marketing approach to maximize market share. Such a strategy has become ever more popular in China as companies try to di-versify and target mid-level earners instead of just high-end consumers. The product remains relatively unchanged, while the price and market-ing channels used vary. Companies have chosen this route as a way to avoid providing too small of a supply, causing them to lose market share to competitors who offer more economically priced goods.

Workshop: Tax, Finance & Law24th September 2007, Sofitel Hyland

Topic: Protection of Intellectual Property in ChinaChair: Mr. Titus von dem Bongart | Partner & Head of German Business Desk - Ernst & Young Hua MingSpeaker: Dr. Elisabeth Haselhorst | European Patent Attorney, Head of IPR - Bayer (China) Ltd.

union and the employee’s representatives should also be given impor-tance, particularly for larger companies.

The new Labor Contract Law is not only an issue for the HR. It requires management decisions as well. If the new Labor Contract Law is taken literally, there will be a significant amount of work to be done by the end of the year, as all contracts will need to be reviewed and renewed. The new law entails higher business costs and less employment flex-ibility, increasing the employment risk for companies.

Suzhou InterChamber Mixer25th September 2007, Crowne Plaza Suzhou

Chairs: Mr. Thomas Scholz | DUSAMr. Arndt Schulze | German Chamber of Commerce • Shanghai

The participants at the Suzhou InterChamber Mixer reviewed plans for the upcoming Christmas Mixer as well as the Gala Ball 2008. Also, at-tendees addressed the issue of how to keep expat families entertained in the area outside of Shanghai, where fewer outlets are immediately available. They discussed the idea of organizing a camp for children of expats during the holidays and launching an internet platform for spouses to gather information about employment and volunteer op-portunities.

Dr. Elisabeth Haselhorst | European Pat-ent Attorney, Head of IPR - Bayer (China) Ltd. addresses members’ IPR concerns

GC Ticker 20 - AHK Greater China - German Chamber of ... · rently the city is preparing to present...

Documents

Transcript of GC Ticker 20 - AHK Greater China - German Chamber of ... · rently the city is preparing to present...