gc ticker june-july 2009 part 2

The German Chamber of Commerce in China

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Over 370 delegates and 20 exhibitors followed the joint call from the organisers, IHK Hannover and the German Chamber Network in China, this year led by the GCC • Shanghai. Together with the Chambers and Delegates from Beijing, Guangzhou and, for the first time also Hong Kong and Taiwan, the official representatives of German industry across Greater China made a joint effort to inform businesses back home about the current issues and outlook of doing business in China. Delegates also had the opportunity to speak to senior corporate executives and experts from the German Chambers directly at the AHK Lounge.

Luxury Problems

The forum’s subtitle “Chances in the crisis” did not leave any doubts that also China has experienced a significant downturn since last year’s autumn, but the discussants agreed that China’s problems are a luxury compared to the ones that other economies are facing.

This was reiterated by German Ambassador in Beijing, Dr. Michael Schaefer in his greeting address. The times of double-digit growth are over, but the country will and also needs to continue growing

at a solid pace. China has not experienced significant slumps in his economic activity, but it needs to reach the 8% threshold in order to avoid a dry spell. Schaefer also painted the political back-ground picture in present day China. On the verge of leaping to the global top spot, the country is still far from settled in this new role. Spurred by the economic crisis, the expectations of other nations towards China and its new responsibility have gained momentum. The Chinese are not yet quite at ease with this and don’t feel suffi-ciently prepared to master these challenges. “China will not become the growth locomotive for the rest of the world over night”, Schaefer added. Stimulating domestic consumption still has priority and its sheer potential can give a strong impetus for the global economy. Greater challenges he saw in the areas of social welfare and educa-tion. The fact that China has already reached the third place after the US and Japan in terms of released scientific publications, shows that it is nevertheless developing into a country of innovations.

Business Optimism

Corporate leaders with large China operations were even more upbeat about the economic prospects. Dr. Rüdiger Grube, board

Chances in the Crisis Greater China Day

8% economic growth in 2009. Is this self-prescribed goal by the Central Government in reach or rather wishful think-ing? China experts and senior executives gathered at this year’s edition of the IHK’s (Organisation of the German Chambers of Industry and Commerce) annual flagship event on China to discuss the future potential and role of this market for German companies. Hannover, capital of Lower Saxony and home of the world’s largest exhibition centre, provided the suitable backdrop for the “Greater China Day”.

Plenary discussion with (from left) Mr. Alexander Hesselbarth (ZF Lemförder), Dr. Wolfram von Fritsch (Deutsche Messe), Dr. Rüdiger Grube (Daimler), Ms. Brigitte Wolff (Management Engineers), Dr. Albert Hieronimus (Bosch Rexroth) and Prof. Ulrich Lehner (DCW)

Dr. Gerhard Schröder

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member of Daimler AG, reconfirmed the prediction that China would become the world’s largest car manufacturer. The only doubt he had in this regard, was whether this would happen in 2018, as initially forecasted, or much earlier. Referring to new chances that the crisis has opened, Dr. Albert Hieronimus, Chairman of the Board of Bosch Rexroth AG, specified recruitment and retention of employees as two examples. Once considered major operational headaches of German companies in China, now seem to have improved significantly since the last quarter of 2008. Dr. Gunter Dunkel, CEO of Nord/LB, admit-ted a “pinch of optimism”, when he projected China to overcome the crisis in the second half of 2009 already with the rest of the world managing the turnaround at an unspecified later date.

An undisputed challenge of doing business in China remains the area of product piracy. Former Minister of Economy of Lower Saxony, Walter Hirche provided hope for relief. As a growing player in inno-vative fields, China is increasingly accepting the topic of IP protec-tion as an area of domestic concern. Hirche saw particularly the industries of nutrition, health, environmental protection and mobil-ity bearing the largest market opportunities for German business in China.

Closer Integration of China

The “new dynamism in Sino-German relations” that Ambassador Schaefer witnessed, was also the call of Gerhard Schröder in his keynote. The former Chancellor, once dubbed as an “old friend of the Chinese people” by Premier Wen Jiabao, unhesitatingly promoted a more proactive economic and political approach towards China. The country is still being underestimated in its importance to Germany. A trustful partnership between the two exporting nations should not include ritualised threatening gestures, directed at public opinion. Building up of trust and mutual understanding without open accu-sations is a better way to lead to more openness and change from within. Germany has also a responsibility to push for China’s closer integration into the global community, be it the G-8 or a wider for-mation that includes also other BRIC nations and leading industrial players like South Africa. China has demonstrated its willingness for peaceful solutions in its dealings with Kashmir, North Korea and also Taiwan. Closer integration of Germany and China should not be con-fined to the political sphere however. Schröder pleaded for a closer commercial interlocking of the two counties by means of intensified reciprocal asset participations and “no foreclosing against Chinese capital” by German legislators and businesses.

Schröder left open his prognosis for China in reaching its forecast, but he welcomed the EUR 460bn economic stimulus package by the government. The business community in the room was surprisingly

unanimous in its prediction. While 8% is certainly an ambitious growth target, it was considered as realistic by most participants. No disagreement prevailed over the outlook that the Chinese economy would achieve considerable growth again this year, making it one of the first ones to master the crisis.

Topic: Greater China Day – Chances in the CrisisDate: 12th March 2009Venue: Convention Center, Deutsche Messe HannoverSpeakers: Dr. Hannes Rehm | President, IHK Hannover; Mr. Arved von zur Mühlen | Chairman of the Board, GCC • Shanghai & Managing Director Greater China, Lufthansa German Airlines; Dr. Michael Schaefer | Ambassador of Germany in China; Mr. Walter Hirche | Former Minister of Economy, Labour and Transpor-tation, Federal State of Lower Saxony; Mr. Alexander Hesselbarth | Head, Corporate Communications, ZF Lemförder GmbH; Dr. Wolfram von Fritsch | Chairman of the Board, Deutsche Messe AG; Dr. Rüdiger Grube | Member of the Board, Daimler AG; Dr. Albert Hieronimus | Chairman of the Board, Bosch Rexroth AG; Prof. Dr. Ulrich Lehner | President, German-Chinese Business Associa-tion (DCW); Dr. Gunter Dunkel | Chairman of the Board, NORD/LB; Dr. Wilfried Prewo | Managing Director, IHK Hannover; Dr. Bernd Pfaffenbach | State Secretary, German Federal Ministry of Economics and Technology (BMWi); Dr. Gerhard Schröder | Former Federal Chancellor

All China - Chamber Events

In six expert workshops during the afternoon, senior executives of German companies operating in China benchmarked their experience and provided market opportunities for German busi-nesses in the following areas:• Automotive and supplier industries• Human Resources• Energy and environmental technology• Sourcing, cost structures in China, technical procurement,

quality controls• “Mittelstand” best practice• Logistics and infrastructure development in light of the eco-

nomic stimulus programmeAll presentations can be downloaded at the IHK Hannover’s web portal:www.hannover.ihk.de/ihk-themen/international/auslandsmae-rkte-und-geschaeftsanbahnung/asien-ozeanien/gcdpraesenta-tionen.html

All photos courtesy of Heinrichson Photos

Mr. Walter Hirche Dr. Gunter Dunkel (NORD/LB)Ambassador Dr. Michael Schaefer


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Another eventful year has passed and the German Chamber of Com-merce • Beijing held its 9th Annual General Meeting. Over 80 par-ticipants registered for the event, held at the Kempinski Hotel’s big ball room. In his welcoming address, Chairman Dr. Richard Hausmann thanked all the chamber members for their trust and stressed the good cooperation between the board and the organisation of the GCC • Beijing.

Dr. Hausmann’s following presentation provided an overview of the measures taken by the Chinese Government in facing the current economic crisis. He described the Chinese attitude with a hint on the Chinese translation for ‘crisis’. The word ‘Weiji’ consists of two characters, which are parts of the Chinese words for ‘challenge’ and – more importantly – ‘opportunity’. With its comprehensive stimulus package of RMB 4tn targeted mainly at improvements in infrastructure and living standards, the Chinese Government has reacted quickly and consciously to actively counter the crisis. German companies are welcome on the Chinese market and may profit from this substantial investment package in many aspects. A discrimination of foreign companies or bias to prefer local companies in project awards on the Chinese government’s side has so far not been noticed by the German industry.

Dr. Niklas Schaffmeister, Vice President Asia Pacific of BBDO Consult-ing appealed to the audience not to underestimate the Chinese image of Germany and the power of the brand “Made in Germany”. Quite the

opposite, placing traditional Chinese elements in a German ad could be counterproductive. He pleaded, “German companies should not hide their roots, but rather point them out.” Dr. Schaffmeister empha-sised that the right moment for investing in advertising can make a competitive difference. He illustrated this by presenting several exam-ples of corporate ad spending behaviour during times of economic crisis, when increased advertising during a recession can outpace competitors. Discussing these facts with the audience he summarised that acyclic behavior can be good.

Ms. Jutta Ludwig, Executive Director of the GCC • Beijing, gave a warm welcome to Mr. Marcel Schneider of TUI China Travel Co. Ltd, who joined the board last August. Ms. Ludwig introduced the Cham-ber’s annual report 2008. During the last year, the German Chamber of Commerce • Beijing organised and conducted 82 events with about 3,500 attendants in total. The Chamber was also involved in addi-tional events organised by other partners. 57 newcomers raised the membership number to a total of 392. The financial statement presen-tation by Mr. Andreas Feege, KPMG Huazhen Certified Public Accoun-tant and treasurer of the Chamber, demonstrated a surplus of RMB 129,031 for the year 2008. The attending members then proceeded to release the board members of their liability.

Ms. Ludwig concluded with a brief outline of events planned in 2009. One highlight will be the next station of “Germany and China – moving ahead together” in Shenyang this June. Mr. Jens Stuhr, Vice Head of Project Management introduced the planned activities for the Shenyang stop of the popular “roadshow”. Event Manager Udo Hoffmann presented the programme and musical mix for the upcom-ing “Deutschlandpromenade”, which will again draw the crowds to the event. One of the highlights of his presentation was a video showing the recent festival activities at the previous stop in Guangzhou.

After the event speakers and attendees got the chance to network over a complimentary buffet. Topic: General Annual Meeting of the GCC • BeijingDate: 16th April 2009Speakers: Dr. Richard Hausmann | President & CEO, Siemens Ltd. China and Chairman of the Board of Directors GCC • Beijing; Dr. Niklas Schaffmeister | Vice President Asia Pacific, BBDO Consulting; Mr. Jens Stuhr | Project Manager, Germany – Land of Ideas; Mr. Udo Hoffmann | Event Manager, Germany and China – Moving ahead together

Looking Back and Storming Ahead into a Strong 2009GCC • Beijing Annual General Meeting

Board of Directors of the GCC • Beijing

Dr. Richard Hausmann emphasised that German companies are still welcome on the Chinese market

Dr. Niklas Schaff-meister: “Cost pressure expected to be the greatest challenge in 2009”

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Beijing - Chamber Events

Dressed for SuccessYoung Professionals Networking

A double premiere for the German Chamber of Commerce • Beijing: Its first Young Professionals Evening and the first event jointly organised with two Scandinavian Chambers. GCC • Beijing joined forces with the Swedish Young Professionals of the Swedish Chamber of Commerce, and the Danish Chamber of Commerce in China.

The evening at the SAS Radisson Hotel, titled “China Career Essen-tials”, was moderated by Brigitte Neumann, Head of Marketing, Inter-net and Training of the Delegation of German Industry and Commerce in Beijing (GIC), and attracted a large and information-hungry crowd. The majority of attendees fitted the Young Professionals profile (age 25-35 and currently employed or interning). Three speakers touched upon a well-chosen range of subjects that was sure to gain everyone’s attention. Jasmine Keel of Inspired career support services kicked off the evening with her presentation on entrepreneurship versus employ-ment. Jens Purup Krog of recruiter Access People provided hands-on practical tools for creating striking CVs and approaching employers in such a way that applications have a higher chance of being recog-nised. The special guest of the evening, Volvo China’s President Mr. Joachim Rosenberg, took the crowd by storm. After a brief introduc-tion of his work and career stages, he set out to face the numerous and varied questions from the audience.

In response to the great success of this first Young Professionals event, the GCC • Beijing will launch a Young Professionals Group and continue to run events targeted at these high potentials. The long-term goal is to create a platform for the exchange of developments in the job market for foreign local hires, and to get them onto the hiring radar of foreign companies in Beijing. This new event series is the continuation and logical next step of the GIC’s training courses targeted at this special group of international candidates in Beijing. Please visit the training section of our website for further information on these programmes.

Topic: Young Professionals Networking Evening – China Career Essen-tials Date: 22nd April 2009Speakers: Jasmine Keel | Founder, Inspired - Life and Career Transi-tion Support Services; Jens Purup Krog | Founder & Managing Director, Access People Executive Search Services; Joachim Rosenberg | Presi-dent, Volvo (China) Investment Co. Ltd, President of Volvo Group Asia Truck Operations (ATO)

Attendees and speakers discussed the essentials of a China CareerMr. Joachim Rosenberg pointing out the right direction


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“In China whole buildings are demolished or redeveloped after an esti-mated lifecycle of only 15 to 25 years.” Karsten Obst of GSN Property Services in Beijing opened the first 2009 edition of the Construction Roundtable with a symptomatic statement, adding that “this period equals the average lifetime of a single boiler in Germany.”

Hearing these rather drastic remarks, the audience listened carefully to the following overview on today’s most common construction failures in China. Mr. Obst explained how financial savings during the planning process could eventually lead to even bigger creeping losses after the structure had been completed. He also gave insights into a growing market for long-term facility management in China. He concluded that Chinese investors increasingly recognise the need for sustainable building and that there is a soaring interest in the advantages of this industry.

Following next in the speaker line-up, Mr. Xu Zhiyong, Project Director of GTZ (German Society for Technical Cooperation) shared his experience of working with the Sino-German technical cooperation project Energy Efficiency in Existing Buildings (EEEB). Mr. Xu has been leading the EEEB since its foundation in 2005. The five-year project focuses on retrofitting residential houses, which – besides the actual improve-ment of the buildings – is used for research and study of enhanced future measures.

The first pilot project was carried out in Tangshan in 2006. After successful retro-fitting and modernisation of the heating system of three buildings, communes in Beijing, Tianjin, Hebi and Urumqi also joined the undertaking. The second pilot project on an 18-storey residential build-ing in Beijing demonstrated the use of new

ventilation systems and fire prevention measures for the first time in China. According to Mr. Xu, the Chinese retrofitting market is likely to exceed RMB 875bn in volume and guarantee employment of up to 1mn people over the next ten years.

After the two presentations guests enjoyed ‘Currywurst’ and other German delicacies at the Wirtshaus am See and continued to discuss current affairs of the construction industry.

Topic: Building operation and refurbishment Date: 1st April 2009Speakers: Dipl.-Ing. Karsten Obst | General Manager Beijing, GSN Property Services; Mr. Xu Zhiyong | Project Director, Energy Efficiency in Existing Buildings (EEEB)

Classification and Valuation Made SimpleTianjin Chamber Dinner Customs

In light of the wide variety of goods coming into China and the high cumulative import charges, proper customs valuation and VAT are important issues. Classification and appraisement are the two most important factors affecting a company’s dutiable status.

Ms. Su Nan from the Beijing Customs Valuation Branch, introduced the customs valuation rules and methods, followed by an overview of the six General Rules of Interpretation (GRI) provided by Mr. Xiao from the Tianjin Customs office. Rules 1-4 are related and must be applied in sequence, whereas rules 5 and 6 stand on their own and are to be applied as needed. How to interpret the tariff and properly determine a product’s classification was the primary question at heart of the audience.

Mr. Jiang Zhaokang from Sandler, Travis & Rosenberg then examined

general customs compliance and IPR border enforcement. China Customs has established an integrated IPR enforcement system including declaration-checking, field examination of imports or exports, punishment of violating importers or exporters and disposing of infringing goods. Over dinner, Mr. Jiang vividly discussed with the other guests how to use the system to better protect the intellectual property rights of their companies.

Topic: Customs classification, valuation and IPR border enforcementDate: 24th March 2009Speakers: Mr. Jiang Zhaokang | Partner, Sandler, Travis & Rosenberg; Mr. Xiao Xuquan | Deputy Director for Classification, Tianjin Customs; Ms. Su Nan | Section Chief, Beijing Customs Valuation BranchChair: Ms. Claudia Barkowsky | Regional Manager North China, GCC • Beijing

Maintenance and Retrofitting More Than Just a NicheConstruction Roundtable

Mr. Xu Zhiyong: “We are faced with a great challenge”

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Minimising Loss when Payment is at RiskJoint-Chamber Seminar

Gain Control over Your RisksTianjin Chamber Dinner

In business, risk control and risk management are crucial tools to identify and mitigate uncertainty. The current economic crisis that has virtually affected all industries and geographies makes us realise once more that the quality of preparation is the key to success or failure.

Presenting the results of the 2009 Ernst & Young Business Risk Report, Frank Mei discussed various approaches to risk management. The annually released study of the global firm is based on interviews with more than 100 industry commentators and analysts from eleven different sectors. Among the top ten strategic business risks that have been detected are aging population, emerging markets, energy shocks and shifts in consumer demand. Besides this, every industry and company has to identify, assess and prioritise their respective risks to achieve its business objectives. Key risks in emerging markets – seen from a developed market perspective – are changes in the political environment, currency and compliance (laws & regulations).

Mr. Mei concluded his speech with some parting advice: “Keep an open mind about where risks can come from! With better risk management one can avoid surprises, better govern the enterprise, make decisions faster and become more efficient.”

Topic: Seminar Operational & Financial Risk ControlDate: 18th March 2009Speaker: Frank Mei | Partner, Business Risk Services, Ernst & Young

Starring: William ValentinoKammerstammtisch

Once again in March, the Paulaner Bräuhaus hosted GCC • Beijing’s informal member gathering. The monthly occasion provides a great opportunity to meet people who share their interest in the German community – and in building up new business contacts as well. As such, Kammerstammtisch has conquered its righteous place in Beijing’s event schedule. This time the number of attendants reached previously

unknown levels. And for a good reason: William Valentino, Member of the Board of GCC • Beijing and Vice President CSR Greater China for Bayer, paid his visit.

Along with various subjects the prominent guest told ‘the audi-ence’ some anecdotes about his past in the USA and how he made his way to the Chinese capital 22 years ago. Being the first locally based expat for Bayer in China, Mr. Valentino is fluent in Chinese – besides Italian, English and German. Hence, Mr. Valentino had neither problems in communicating with any cultures present at the table nor answering any inquiries in the questioner’s mother tongue. Since quite a few people came especially to meet Mr. Val-entino, the conversation quickly turned to his specialty: a wide range of Corporate Social Responsibility topics and most notably recent efforts in fighting HIV/AIDS in China.

In response to the remarkable feedback on the opportunity to meet with the Board, the German Chamber • Beijing endeavours to ensure the presence of at least one Board Member at every future Kammerstammtisch.

Topic: KammerstammtischDate: 16th March 2009; held every third Monday of the month, 7.00pmVenue: Paulaner Bräuhaus, Lufthansa Center

Once again, Coface presented their findings in a joint-chamber event at Beijing’s Shangri-La Kerry Centre Hotel. Mr. Benjamin Gan gave an overview of the global financial crisis and its impact on enterprises in China and analysed the current status of corporate payment behaviour in China. He provided a detailed sector-specific risk analysis for the chemical, pharmaceutical, IT, textile and steel industries. Mr. Gan then set out to advise on risk mitigation strategies, such as establishing an appropriate credit management process, obtaining information for customer evaluation and setting payment terms. He identified useful credit management tools as beneficial to minimising delays in corpo-rate payment behaviour.

The breakfast event was jointly held by the German Chamber of Commerce, the French Chamber, BenCham, SwissCham Beijing and AmCham-China. This multi-chamber set up made for a unique and

varied member mix that was eager to discuss and share thoughts and opinions on the current financial climate.

Topic: Credit Crisis and Corporate Credit Risk Management in ChinaDate: 1st April 2009Speaker: Mr. Benjamin Gan | Deputy Regional Manager, Risk, Greater China, Coface

Mr. Benjamin Gan

Speaker Frank Mei

Mr. William Valentino

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Tools to Tell Gold from BrassHR Seminar

Back in January, Hewitt Associates had presented last year’s Hewitt Expat Salary study on the premises of the German Chamber of Com-merce • Beijing. To ensure a more thorough coverage of the topic, the Chamber reacted to a wide range of requests from its members and was poised to provide additional information about Chinese employees in international companies. The result was this new seminar targeted at German HR executives planning to hire Chinese Executives.

Brigitte Neumann, Head of Marketing, Internet and Training of the Delegation of German Industry and Commerce, introduced the speak-ers of the evening – Artur Haenn, Director of PCI Consultants and Dirk Meissner, Chief Representative of MCon. Both gentlemen shared insightful knowledge about recruiting Chinese employees at the execu-tive level, both from the recruiter’s and the employer’s perspective. The speakers introduced useful tools for verifying data in CVs and gave examples of how best results in the recruitment process can be achieved.

But how to find the ideal candidate in the midst of returned scholars, university graduates and long term professionals? What are the tools to determine what is gold and what is brass? Excellent Chinese candi-dates can be found, but the right tools for identifying them must be applied, said Mr. Haenn and introduced some of the strategies most likely to yield results in the recruitment process.

Too much emphasis on language skill and CVs that impress with over-seas postings sometimes obscure the vision when looking for that perfect candidate. While these aspects are important, specific know-ledge of the job position sometimes gets neglected in favour of lan-guage skill. The challenge may not so much be a lack of appropriate candidates from Mainland China, but to a certain extent the missing capacity of HR departments of SMEs operating in China in scanning the market for appropriate candidates on a day to day basis. Here Mr. Meissner identified a competitive difference: Constant monitoring of the job market and a massive mobilisation of resources to identify that perfect candidate had been essential for MCon’s growth over the past years. The event ended with an animated discussion among the audience that touched upon many more aspects of recruiting staff in China. Topic: Recruiting von chinesischen Führungskräften: Entscheidungskri-terien für nachhaltigen ErfolgDate: 19th March 2009Speakers: Artur Haenn | Director, PCI China Executive Search Consul-tants; Dirk Meissner | Chief Representative, MCon China Ltd.

Dirk Meissner presented his way of selecting the right staff members


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An Employer’s Nightmare – the New Labour Contract LawJoint-Chamber Seminar Guangzhou

It seems to be a late-break ing topic : The seminar on termina-tion and downsizing of employment contracts, jointly organised by the British, German, Italian and Spanish Chamber of Commerce, attracted a large number of partici-pants.

Speaker Mr. Jeremy Sargent of JS Associates provided information on the new labour contract law, which has raised many questions in HR departments of domestic as well as international companies across China. Aimed at preventing large scale lay-offs during times of eco-nomic crisis, the central government has introduced challenges to the termination or downsizing of employees. As a result, human resources managers must now make allowances for some added tedious proce-dures, when planning redundancies. The increasing number of labour disputes gives proof to this. Mr. Sargent stated that nearly 90% of the claims are lost by employers, usually not due to wrong facts but incomplete evidence. In order to avoid complications in the future and refute the claim, gathering proper evidence and setting up robust arguments are key.

The new contract law awards more rights to employees, but is at the same time very controversial and unclear in its implementation. When it comes to a dispute in court, the burden of proof lies with the employer, not the employee. The speaker also stressed that only duly signed contracts and lawful reasons can prevent later disputes. As many expatriates attended the seminar, Mr. Sargent also pointed out that the new labour contract law is fully applicable to foreign nation-als with local contracts as well.

Event: Termination and Downsizing of Employment Contracts – The Legal Issues Employers are Facing TodayDate: 11th March 2009Speaker: Mr. Jeremy Sargent | Managing Partner, JS Associates Guang-zhou Office

New Regulations in Battery Safety ControlJoint-Chamber Seminar Guangzhou

Growing Strength and Space in GuangzhouGCC/GIC Office Extension Celebration

Flowers with greeting cards at the front door, waiters in uniforms and a splendid buffet revealed that the German Chamber of Commerce • South China had an occasion to celebrate: The opening of the new office premises for the German Industry & Commerce Co. Ltd. Guang-zhou Branch.

The GIC had outgrown its former office one floor below the GCC and has now taken up its new location right next to the Chamber office on the 29th floor of Metro Plaza. Further to the enhanced communication with the colleagues from GCC, the new setting provides considerably more space for the staff, future office-in-office solutions and a second meeting room. Ms. Alexandra Voss, Delegate & Chief Representative of GIC Guangzhou welcomed the guests and opened the doors for a tour through the new premises. Enjoying the wine and buffet, the visitors soon filled the new rooms with their chats and laughter.

B&B Leiterplattenservice experienced a special honour, when i t was named the 200th member of the German Chamber of Commerce in Guangzhou – a true milestone in mem-bership development for the youngest of the three GCC chapters in China that started operating independently in 2006. As special guests of the evening, German Consul General Mr. Eberhard Schuppius and Mr. Li Sanjian, Vice President of the China Council for the Promotion of International Trade (CCPIT) Guangzhou, attended the celebration. GCC board members Ms. Renate Tietjen, Mr. Nico Beilharz and Mr. Dirk Soete mingled with the crowd and exchanged opinions on current business development. The successful evening and the office opening ceremony in Shenzhen one month later (see Chamber Notices and Around Town), both gave testament to the steady growth of the German Chamber of Commerce • South China.

Topic: Office Extension CelebrationDate: 9th April 2009Venue: GCC/GIC Office in Guangzhou

A battery explosion is no longer something new for the public. It could cause not only pro-perty damage but also personal injury or even loss of life. As the number of battery accidents is increasing rapidly, new regula-tions have been released to

control the quality of batteries in the US and European market. In cooperation with the German and American Chambers of Commerce,

TÜV SÜD China hosted a half-day seminar providing necessary infor-mation with regard to these new requirements. Mr. Lei Song and Ms. Alice Dai introduced key issues, the test of IEC 62133 and the CTIA battery certification programme in full detail.

Topic: Battery Safety and CTIA (Cellular Telecommunications and Internet Association) Certification SeminarDate: 13th March 2009Speakers: Mr. Lei Song | Project Manager, TÜV SÜD China; Ms. Alice Dai | Department Manager, TÜV SÜD China, Guangzhou Branch

Jeremy Sargent (Managing Partner, JS Associates)

Board members Dirk Soete (left), Renate Tietjen (2nd left), Nico Beilharz (right), Alexandra Voss (2nd right) awarding Robin Guo (centre), Chief Representative of B&B Leiterplattenservice

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Leveraging IT in ManufacturingJoint-Chamber Seminar Shenzhen

Having real-time information about the status of the production processes can improve responsiveness and decision making at all levels – from shop to man-agement. Mr. Sven O. Rimmelspacher of Pickert & Partner provided his expertise on how companies can utilise advancements in IT for their production, and what further technologies can they expect in the future.

The speaker stressed some of the concerns that companies should keep in mind in order to gain value from the advantages. Implement-ing IT into manufacturing can be done at various degrees, but always requires the management’s commitment in order to be effective. Bene-fits from technological advantages will not kick in over night. The implementation requires detailed planning and a persistent tracking of continuous improvement processes.

After the presentation all attendees engaged in a vivid discussion and benchmarked their experience with IT systems – or the lack of such systems – in their different kinds of operations. The event was organised in cooperation with the French Chamber of Commerce at the Kempinski Hotel Shenzhen.

Topic: The Real-time Enterprise – Managing Manufacturing with ITDate: 19th April 2009Speaker: Sven O. Rimmelspacher | Managing Director, Pickert & Partner GmbH

Right-Sizing Your BusinessFirst Legal Roundtable Guangzhou

The German Chamber of Commerce • South China launched its first Legal Roundtable at one of its yearly sponsors, The Garden Hotel in Guangzhou. The positive feedback of speakers and participants encouraged the team to further focus on legal topics affecting German companies doing business in China. The GCC will organise this event series in different cities in South China on a regular basis, moderated by Ms. Regina Wang, Project Manager Investment and Legal Consulta-tion of the German Industry & Commerce Guangzhou Branch.

In light of the current economic situation, members had asked for detailed information on how to right-size a company during strenu-ous times. To offer a holistic view on a complex topic, the GCC had invited three speakers from consult-ing, legal and industrial companies to speak about the threats and opportunities of restructuring a business. Mr. Daniel Berger of Euro Asia Consulting focused on the efficiency of optimisation programmes to reduce costs. Using case studies he gave examples of how to gain quick wins with both short and long-term measures and consolidation. Having consulted a number of German companies in China over the past, Mr. Berger was able to provide useful advice and specific answers to the questions from the floor.

Mr. Richard Grams of Stephenson, Harwood & Lo discussed alternatives to downsizing and staff terminations, but also gave useful hints on how to handle severance payments and arbitration claims. He brought along his client, Mr. Wilson Ng of Guangzhou Sheng Hui Chemical, who then shared his experience on reasons for and how to handle downsiz-ing. The lessons learnt by the industry representative led to a lively Q&A session that went on for one hour - more than a good reason to organise further Legal Roundtables in South China.

Event: Legal Roundtable: Right-sizing your China Business – How to avoid the pitfalls and do it rightDate: 15th April 2009Speakers: Mr. Daniel Berger | Principal, EAC - Euro Asia Consulting; Mr. Richard Grams | Head of China Practice, Stephenson, Harwood & Lo; Mr. Wilson Ng | Executive Director, Guangzhou Sheng Hui Chemical Co. Ltd.Chair: Ms. Regina Wang | Project Manager Investment and Legal Con-sultation, German Industry & Commerce Guangzhou Branch

Speakers Wilson Ng, Richard Grams, Daniel Berger (left to right) and moderator Regina Wang

Mr. Holger Kunz and Mr. Yushun Wong, Man-aging Directors TÜV Rheinland (left to right)


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Almost 180 chamber members and guests of GCC • Shanghai gathered to spend the evening together at the Grand Hyatt Shang-hai. After Ambassador Röhr’s status report on the event series “Germany and China – Moving Ahead Together”, the dinner speech was all about the successful history and promising future of Bayer in the Chinese market.

Chairman of the evening, Mr. Ulrich Mäder, greeted the audience and the guests of honour, before the floor was opened for new chamber members and first-time meeting participants to introduce themselves to the community.

Ambassador Dr. Wolfgang Röhr, formerly Consul General to Shanghai, introduced the project “Deutschland und China – Gemein-sam in Bewegung”, a joint initiative of the two countries with the aim of deepening the bilateral cooperation and cultural under-standing and stressing the good picture of Germany in China. The series of events began in August 2007 in Beijing and has toured around China ever since, with the next sta-tions in 2009 to be Shenyang and Wuhan. The three year programme will culminate in the Shanghai World Expo in 2010.

As the keynote speaker of the evening, Mr. Michael König, General Manager of Bayer China and Bayer MaterialScience China, reviewed the German chemical giant’s suc-cessful China history, which dates back more than 100 years.

The company began its business in China in 1882 with the sale of textile colorants and established its first trading company at the beginning of the 20th century. Since the early 1990’s Bayer further expanded its business in China. The construction of the Bayer Materi-alScience production site in Shanghai repre-sents the biggest investment of the company

to date outside of its German headquarters. Furthermore Bayer is about to establish a research and development centre in Beijing as one of its global innovation bases for new pharmaceuticals.

The Chinese market has meanwhile become the third biggest market overall for Bayer worldwide and the company now sells almost its full product range in China. In 2008 Bayer Ltd. has advanced to the biggest healthcare company in the country. The group has the vision to reinforce its market position in China, making it Bayer’s number one global market in the not too distant future.

Mr. König did not fail to mention also some difficulties of operating in China, most notably the human resources situation. The challenges here arise from the differ-ent cultural background, the young age of employees and the resulting lack of experi-ence among many local employees. Speaking of the predicted outcome and affects of the economic crisis on his company, Mr. König noted that the shrinking consumer markets and the struggling automotive industry have also affected Bayer’s sales figures for the last quarter of 2008. Nevertheless, Bayer remains confident about the future and the great potential that China holds.

After a round of questions and announce-ments, the evening ended harmoniously over engaging table talks among old friends and new acquaintances.

Topic: 100 Jahre Erfolg in China – auch in der KriseDate: 26th March 2009Speaker: Mr. Michael König | General Manager, Bayer (China) Ltd, Bayer MaterialScience ChinaChair: Mr. Ulrich Mäder | Board Member, GCC • Shanghai & Chairman of the Board, POLYMAX (Shanghai) Trading Co. Ltd.

Germany and China: A Programme and a Corporate Success StoryChamber Meeting March

Speaker Mr. Wolfgang Röhr (German Ambassador) and Moderator Mr. Ulrich Mäder (Chairman of the Board, Polymax) (left to right)Speaker Mr. Michael König (Bayer)

Dr. Wolfgang Röhr (German Ambassador), Dr. Hans Orth (CDHAW Tongji University) and Ms. Heidi Orth (left to right)

Mr. Wolfgang Uhrmann (Keller Lufttechnik) and Dr. Siegfried Beichter (Würth) (left to right)

Mr. William Keller (Keller Pharma Consultancy), Mr. Andreas Muessle (Coperion) and Mr. Ludger Kornfeld (Boehringer Ingelheim) (left to right)

Mr. Guenter Weckerlein, Mr.Zhong Hong (IDS Scheer) and Mr. Manfred Kiekenbeck (Freudenberg) (left to right)

Mr. Klaus Ulrich (Deutsche Bank) and Mr. Ralf-Roman Rietz(left to right)

Mr. Michael Schmid-Lindenmayer (Putzmeister Machinery), Mr. Peter Kruse (DCGS) and Mr. Stefan Peter Göhmann (Com-merzbank) (left to right)

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Shanghai - Chamber Events

The role of the controller has witnessed a dramatic change of percep-tion. What was once dismissed as a ‘nitpicker’ function has become a highly sought-after corporate role with significant responsibility. In times of economic crises, finance experts are frequently the preferred choice for seats on the board of directors.

Many in the Chinese business sphere still do not regard the controller as a strategic function but as a merely operational one. Finding good controllers in China is therefore difficult. Over 30 years back, western influences in China, such as controlling, were still totally rejected. All profits and losses were covered by the government. Over time China recognised the need for accounting and during the economic boom a better resource allocation became necessary. Since China is a member

From Bookkeeper to Management ConsultantWorkshop Controlling

of the World Trade Organization, the competition has tightened, increasing the need for better con-trolling and accounting.

Chinese and western companies have still a very different appre-ciation of standards, such as management methods, accounting principles and cost calculations. These differences can cause huge problems for controlling in joint ventures. Another major problem

in this regard in China is the lack of qualified professionals. A future vision for China should be the optimisation of the whole value chain through an increased focus on profitability, solvency and communica-tion. In line with this, a stronger controlling function will be able to better consult top management and support companies to use their resources more efficiently.

Topic: Stand des Controlling aus Sicht eines Praktikers – Controlling in ChinaDate: 4th March 2009Speaker: Mr. Bernd Pichler | Director Sales Finances & Sales Control-ling, SAIC-Volkswagen Sales Co. Ltd.Chair: Mr. Ralph Dreher | Manager, PricewaterhouseCoopers

Mr. Ralph Dreher (PwC), Mr. Peter Katzenstein and Mr. Bernd Pichler (Both SAIC-Volkswagen Sales) (left to right)


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A strong speaker and a highly relevant theme drew 220 members and guests to the GCC • Shanghai’s monthly Chamber Meeting, held again at the Hilton Hotel in Puxi. Chairman of the evening, Mr. Elmar Weitzel, welcomed the audience and the particularly strong turnout of 25 new – and not so new – comers, who got the chance to introduce themselves to the assembled community.

A strong community lives of the support and loyality of its members. In this context Mr. Weitzel bid farewell to Mr. Gundolf Müssig of Ingen-ics and his wife Edith, who both supported the Chamber through their regular presence and contributions during their six year term in Shang-hai that is now coming to an end as the couple moves back to Germany.

Originally from Germany, but having lived and worked in China for the past 20 years, Mr. Jörg Wuttke, the President of the European Union Chamber of Commerce next delivered his dinner speech. As a first-hand witness of two thirds of the country’s opening and reform years, Wuttke provided a very topical and outspoken account of the current status and outlook for China until 2050.

Few people were aware of the fact, that the signals of the current crisis have reached China much earlier than even the USA. The Chinese eco-nomic growth had started to slow already in December of 2007 from 12% down to the current 7%. The Chinese Government has clearly responded with its RMB 4tn stimulus package. It remains to be seen however, whether the continued focus on infrastructure investment and build-up of capacity will bring relief to the slowing economy.

The speaker stressed China’s weak and slowing private consumption as a particular area of concern. This, together with growing overcapaci-ties, a poor industry utilisation and dropping exports will leave China sitting on its unsold products. Stronger focus should thus go into the stimulation of private consumption through increased spending in education, healthcare and smart technologies. This needs to go in line

with a stronger political will to shut down factories and avoid the con-struction of new ones. Many global industries have already responded with these harsh measures. A hindrance to taking this necessary step in China is the often strong protectionism present in the business environ-ment. Wuttke stressed that this is primarily a domestic issue between individual provinces, rather than a concerted effort to shut out foreign investors.

Taking these measures would help prepare China well for its undisputed future role as the single largest contributor to the global economy, one that it had already held at the beginning of the 19th century. In 2020, Asia will become the worlds manufacturing hub with China having over-taken Japan in terms of industrial production. Looking further ahead until 2050, China will no longer have the largest population with 1.6bn Indians. Rapidly aging demographics however will lead to the situation of Chinese getting old before becoming rich. Continued fast urbanisa-tion will mean that by 2025, two thirds of the Chinese population will live in cities, an impressive 15% of the mankind. Developing China into a service-focused, rather than a processing-driven economy will there-fore become even more crucial to secure enough employment for its growing cities.

Many consenting nods, captivated faces and targeted questions from the floor implied that the speaker’s analysis had struck a chord with the audience. Engaged conversations and networking continued until mid-night. The full presentation can be downloaded from the member’s area of the Chamber’s website.

Topic: Herausforderungen für die europäische Wirtschaft in ChinaDate: 23rd April 2009Speaker: Mr. Jörg Wuttke | President, European Union Chamber of Com-merce in China; Chief Representative, BASF (China) Company Ltd.Chair: Mr. Elmar Weitzel | Executive Vice President & Chief Financial Officer, Bosch (China) Investment Ltd.

China’s Road to 2050: A Precise AnalysisChamber Meeting April

Dr. Zheng Han (Haniel), Mr. Karl-Heinz Tenne (Abendbrot) and Ms. Nina Jurascheck (HRO Consulting) (left to right)

Mr. John Chachamopoulos (Wilhelmsen Marine Consultants) and Ms. Qian Yue (Gea) (left to right) Speaker of the evening Mr. Jörg Wuttke (BASF)

Mr. Gundolf Müssig (Ingenics), Ms. Edith Müssig (Ingenics) and Mr. Elmar Weitzel (Bosch) (left to right) Three guests at the Chamber Meeting

Ms. Nancy Yu (Barlow Lyde & Gilbert) andMr. Daniel Mohr (Plumento) (left to right)

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YEARLY SPONSORS 2009/2010


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Radio Frequency Identifica-tion (RFID) is an IT system mainly used to trace and track goods, especially in the logis-tics, warehousing and asset management sector. The main advantages are the support of transparency, the optimisation of processes and the saving of costs throughout the supply chain. The transmission of the data is done via WLAN, GPRS or UMTS using different RFID tags. Depending on the tags, localising them can vary in range from 10 to 500 meters. Different tags for various appli-

A Market of Opportunities3rd Sino-German Job Fair

In co-operation with the German Chamber of Com-merce and Watson Wyatt, the German Centre Shanghai again hosted its annual Job Fair – and over 1,000 par-ticipants followed the call. Two days packed with pro-gramme, 33 German compa-nies exhibiting and over 120 jobs posted draw an impressive balance for an event that took place in an undoubtedly difficult economic environment.

In welcoming the students on the first day, German Centre’s Matthias Müller encouraged the young graduates to make the most of this opportunity to shine in front of potential employers. With three part-nering universities this year (Sino-German College of Tongji University, Shanghai-Hamburg College and East China University of Science and Technology) the level of skilled students with German as part of their curriculum was particularly strong. Vice-Consul Mr. Henning Hansen from the Consulate General in Shanghai underlined also the opportu-nity for businesses to tap into the pool of ever-growing and ambitious local talents choosing to pursue study areas with a German angle. He was particularly impressed by the high turnout of participating companies at the fair, which he saw as a clear indication that German businesses consciously drive ahead their China strategy. “Don’t be shy, inform yourself well and use this market of opportunities”, was his advice to the students among the audience.

Feedback from the exhibitors has been very positive and some have already expressed their intention to participate in the 4th Job Fair in 2010.

Topic: China HR Tomorrow – 3rd Sino-German Job FairDate: 26th–27th March 2009

Restructure or Exit a JV?Workshop Tax, Finance & Law

The global financial crisis has put a lot of distress also on joint venture companies in China. Best practice of how to restructure or exit a business under these circumstances have formed the theme of a recent workshop by GCC • Shanghai.

According to Mr. Senff of SJ Berwin, a company must first work out its due diligence and analyse which role the local government, custom-ers and banks play in its business, before a decision can be made on whether to exit or continue the joint venture. The management must follow a clear plan on how to negotiate with the Chinese partner. Sell-out, liquidation, bankruptcy and go away are the available exit strate-gies, whereas the JV can be continued through buy-out, change in management and dry-out.

Mr. Jiang from Deloitte fol-lowed in explaining the affects of the new enterprise income tax law. With regard to restruc-turings, the reorganisation transaction can be categorised as an asset and equity deal. The existing holding structure

and operation model of Chinese operations should be reviewed to figure out possible tax planning opportunities. Restructuring activities should be screened for tax-saving potential. Carefully evaluating the tax costs in different restructuring scenarios under the new rules and assessing the various legal and practical constructions available will help to identify the most promising restructuring plan.

Topic: Navigating the Crisis – Restructuring of Joint Ventures in ChinaDate: 3rd March 2009Speakers: Mr. Philipp Senff | German Attorney-at-Law, SJ Berwin LLP; Mr. Lynch Jiang | Tax and Business Advisory Services, DeloitteChair: Mr. Titus von dem Bongart | Partner and Head, Ernst & Young Hua Ming-German Business Center

Tag, Trace, Optimise – News for Supply Chain ManagersWorkshop IT

Mr. Alexander Prautzsch (Ernst & Young), Mr. Helmut Rojas (Magneti Marelli) and Ms. Ute Stadelmann (Magneti Marelli) (left to right)

cation areas can take into account the temperature or humidity of the operating environment.

Companies using RFID are for example logistics service providers, which need to ship traceable containers. Frankfurt Main Airport uses the radio tagging system to bill the transport usage of companies inside the airport, while Gerry Weber deploys the tool for in-store com-munication, analysis, security and asset management. Possible future RFID solutions can include in-store systems as sales tools, which tag products chosen by customers and present them with matching pieces and accessories on a screen.

Topic: RFID and Auto ID Solutions – Applications in Retail, Logistics and IndustryDate: 1st April 2009Speaker: Mr. Dieter Hahn | Head of RFID/AutoID Solutions, T-SystemsChair: Mr. Jörg Heil | General Manager, hartung:consult

Mr. Jörg Heil (hartung:consult), Mr. Dieter Hahn (T-Systems) and Mr. Jan Schmidt (ZF) (left to right)

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Building a Business on Skills and ExperienceWorkshop Marketing & Sales

Irrespective of one’s location, everyone can make use of his or her skills, hobbies and pas-sions and turn them into an income. The speaker of the evening, Dr. Yohn, moved to Mexico in 2007 together w i t h he r hu sband. Enjoying its new life a

lot, the couple now encourages others to make the same step and turn one’s life experience into an income abroad.

There is a wide range of job opportunities in areas as diverse as con-sulting, writing, photography, research, sales agent or real estate services. An easy way to get started is by using online networks that offer all levels of opportunities for earning a global income. Forming such a membership platform can also be a good opportunity to make a living out of your interests and experience. Dr. Yohn recommends three steps to follow: First, to abandon one’s preconceptions by think-ing differently. Second, to assess one’s skills and talents and third, to take action and fulfil one’s goal.

Topic: 3 simple facts of turning your lifetime skills and interests into a lucrative and liberating income abroadDate: 31st March 2009Speaker: Dr. Debi Yohn | Counseling Psychologist, Co-founder of Bare-Foot Consultants and President of CollegeWorks101.comChair: Ms. Brigitte Wolff | Board Member, GCC • Shanghai and Manag-ing Director & Co-owner, Management Engineers China Ltd.

Safety FirstDriving Training

This training organised by Matter Safe Driving with the support of GCC • Shanghai was aimed at personal drivers of company executives with the goal to convey the importance of a smooth and safe driving style.

Participants learned about the car’s tech-nology, such as its venti lation system, and the proper use of the rear fog light, the horn and other items of specific Chinese interest. To instill the correct driving behaviour dif-ferent traffic situations were discussed and later simulated in practice. In case of an emergency braking, for example, drivers learned how to react when a blocked wheel cannot be steered. Difficult driving condi-tions such as aquaplaning were also subject of the training.

Topic: Safety First – Drivers Safety Driving TrainingDate: 17th of March 2009Venue: Matter Safe Driving training location, Jiading District, Shanghai

Speaker Debi Yohn (second from right) and Moderator Brigitte Wolff (middle) with Workshop participants


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Physical and psychological impacts at the workplace have a proven strong affect on the ability and willingness to perform and the general wellbeing of employees. If the concentration of air pollu-tants exceeds the legal threshold, the employer must take the neces-sary measures to reduce emissions. This can be done through substi-tution, enclosure, ventilation, exhaustion or introduction of personal breathing protection.

An analysis of the exact type and emission nature of the air pollutant must be done before a requirement profile and the appropriate reduc-tion technology can be identified. In installing the protective techno-logies, the employer does not only have to comply with EU standards, but also with local laws, technical rules and applicable trade union requirements. Approval procedures in China can largely vary depending on the authority in charge. Furthermore, to minimise the risk of blaze and explosions every company should take precautionary steps to tag

potential r isks, such as creating fire areas, conduct-ing regular main-tenance, installing evacuation plans a n d t r a i n i n g e m p l o y e e s t o become aware and alert of hazards.

Topic: Industrielle Entstaubung und LuftreinhaltungDate: 5th March 2009Speaker: Mr. Wolfgang Uhrmann | General Manager, Keller Lufttechnik ShanghaiChair: Ms. Magali Menant | Manager, econet china

Temporary Managers for Quick ResultsWorkshop Human Resources

IMS (Interim Management Solution) provides experienced executive candidates to work on short term assignments for multinational cor-porations and foreign invested businesses. The company offers the service to send an appropriate manager to a requesting company to get a specific job done.

IMS was founded in the 1970’s in the Netherlands due to the restric-tive labour laws for permanent staff. At that time employees were pro-tected by long notice periods and high severance pay in case of ter-mination. Nowadays almost 30% of the working population in Europe works on an interim basis. In Asia, this solution is quite new, but ever more topical in light of the current economic downturn.

The main reason for a company to hire an interim manager is the speed of implementa-tion. The temporary managers can s ta r t working within days and bring a new perspective to the company through their previous engage-ments.

Rather than taking an advisory role they are fully responsible and accountable line managers that implement and manage a business or a project.

Topic: Interim Management – Another Management approach to master challengesDate: 2nd April 2009Speaker: Mr. Frank Elzinga | Business Development Manager, IMS Interim Management SolutionsChair: Mr. Rolf Köhler | Director Human Resources Asia, Freudenberg Management (Shanghai) Co. Ltd.

A Bridge to ChinaBreakfast Meeting with Delegation of Atlantik-Brücke

GCC • Shanghai recently welcomed the delegation of the organisation Atlantik-Bruecke (“Atlantic Bridge”) during its sixth annual study trip to China. Led by former Finance Minister of Lower Saxony, Dr. Walther Leisler Kiep, the delegation of members of the Deutscher Bundestag and high ranking business representatives met with the Chamber’s board of directors to discuss the effects of the global financial crisis on China and German companies investing in China.

GCC • Shanghai’s Chairman, Mr. Arved von zur Mühlen, welcomed the delegation and pointed out that, despite the financial turmoil, inter-est in China continues to be strong. He added that companies, who have invested in China look by far more optimistic towards the future than their counterparts in Germany. Dr. Leisler Kiep thanked for the invitation and said he was once again amazed by the pace at which the city of Shanghai continued to develop. After the breakfast, the delegation had further visits to German companies as well as meetings with university, clerical and government representatives.

Topic: Business Breakfast Date: 3rd April 2009Speaker: Dr. Walther Leisler Kiep | Honorary Chairman and Chairman Emeritus, Atlantik-Bruecke e.V.

Keeping the Air Clean and Workers HealthyWorkshop Environmental Protection

Ms. Magali Menant (econet), Mr. Wolfgang Uhrmann (Keller) and Lisa Boeckh (GCiS) (left to right)

Mr. Manfred Rothgänger (GCC Shanghai), Dr. Walther Leisler Kiep (former Finance

Minister of Lower Saxony) and Mr. Arved von zur Mühlen (Lufthansa) (left to right)

Mr. Frank Elzinga (IMS), Mr. Martin Geiger (IMS) and Mr. Klaus Liu (WK Intersales) (left to right)

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A Second Time to ChinaJV Round Table

There are many motives for returning to China for a second or third time and once again committing to a job in the People’s Republic. Far-ranging autonomy in the decision-making process in the Chinese company subsidiary, the prospect of adventure and valuable experi-ence due to intercultural challenges as well as the seniority principle seem to be the most convincing reasons for this kind of decision. Not to mention the often very attractive financial compensation of such assignments and the opportunity to enhance one’s personal career.

Those returning to China are particularly aware that life in an emerg-ing economy like China is subject to fast and sometimes profound change. When they compare the current circumstances with the situ-ation during previous stays the returnees usually observe a notice-able increase in bureaucracy and a slight deterioration of the terms of labour contracts. They do also witness a constant improvement of the local infrastructure however and a raised level of qualification of labour forces in comparison to the 80s and 90s.

In a fruitful discussion the participants of the Joint Venture Round Table also exchanged their experience with regard to the particulari-ties when working with Chinese colleagues and employees. They also talked about the best ways for executives’ families to cope with the challenge of living in a different cultural and social environment.

Topic: Ein 2. Mal China: Gründe für die Rückkehr und Erfolgsaussichten – Ein ErfahrungsaustauschDate: 16th April 2009Speaker: Mr. Günther Strobel | Managing Director, DEKRA (Shanghai) Co. Ltd; Mr. Matthias Schmitz | Manager Planning Division (TM), Volks-wagen ShanghaiChair: Mr. Emil Schlumpf | Managing Director, Ritz Instrument Trans-formers Shanghai Co. Ltd.

Briefing on CPPCC Shanghai Committee 2008JV Round Table

The CPPCC (Chinese People’s Political Consul-tative Conference) is a united front organi-sation led by the Communist Party of China (CPC). Representing consultative democracy, it plays an important role in China’s political landscape. Besides the CPPCC, the National People’s Congress (NPC) is another very important institution.

The 11th Shanghai Committee of the NPC was inaugurated in January 2008 and will be renewed after five years. The CPPCC is represented in this Committee with 148 standing members. The new Committee consists of younger and highly-qualified members with stronger opera-tional background and sector-specific expertise.

Topic: Briefing on CPPCC Shanghai Committee 2008Date: 19th March 2009Speaker: Mr. Yuhua Wu | Member of CPPCC Shanghai Committee 2008Chair: Mr. Kurt Fasser | Senior Adviser, GCC • Shanghai

Mr. Yuhua Wu (CPPCC)


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With over 100 participants from near and far, this special workshop edition on the occasion of the Auto Shanghai Exhibition 2009 proved once again that China’s automotive market is high up on the global strategy agenda of this industry. The speakers pointed out the impact of the financial crisis on the car sector and the importance of innovation and environmentally friendly technolo-gies.

There was a far-reaching consensus amongst the gathered experts that the global automotive industry is facing the biggest crisis in its history. A slump in car sales in the NAFTA zone, Europe, Japan and Korea along with a slowing growth of the automotive markets in emerging economies like China and India is giving car manufacturers and their suppliers a hard time. In addition to this downturn in sales revenues, the weak financial market is putting additional pressure on the industry.

According to Mr. Kalmbach of Roland Berger, actions taken should focus on the reduction of personnel costs, purchasing costs and selec-tive R&D costs, as well as optimisation of overheads, production plants and OEM contributions. Given the gravity of the situation, a turnaround in many cases will only be possible when all these opera-tional restructuring levers are being applied.

Looking at the long-term picture, innovation will be the key to sur-

Developing talent in China follows distinctly different requirements compared to the markets in the western world. It is a driving chal-lenge for foreign compa-nies in China to recruit and retain employees for sus-tainable business success. The fast-growing Chinese labour market consists of many young and less than

well qualified employees with little work experience and high fluctua-tion rates. The different Chinese working and communication culture often makes it difficult to instil western working habits.

Based on the results of a survey carried out by MTI in 2008, Ms. Braun explained the differences in the requirements. In Asia it is necessary to increase the competitiveness of the company and to improve the performance for better achievement of organisational goals. In par-

ticular retention management must be enhanced. European companies however, have to focus more on the prompt adaptation of employee competencies on modified requirements. The improvement of quality in processes and results as well as the enhancement of staff loyalty represent further areas of focus.

Due to the knowledge-based education system in China, employers often need to train their staff in soft skills. It is necessary to develop a clear structure and interaction culture in the company by developing strategic thinking, assertiveness and conflict management. Neverthe-less, the training always has to be adapted to the local culture and needs and cannot be implemented one-to-one from Europe.

Topic: Strategic Talent Development in China – Local Needs and Mea-sures to Implement ThemDate: 11th March 2009Speaker: Ms. Katrin Braun | Managing Director China, Machwürth Team International (MTI)Chair: Mr. Rolf Köhler | Director Human Resources Asia, Freudenberg Management (Shanghai) Co. Ltd.

Sustainable Innovations Key for Car Producers to SurviveSpecial Workshop Automotive Industry

Adapting Talent Development to Local NeedsWorkshop Human Resources

Katrin Braun (Machwürth)

vival, especially in the area of alternative energy driven vehicles, so Dr. Gerd Möhrke of Management Engineers. Various forecasts attribute vehicles with electrical drives to have gained a global market share of 15-20% by 2020. Hence the automotive industry is making efforts to bring forward the electrification of the powertrain, concluded the next speaker, Martin Knoss of Bosch UAES. Big car manufacturers and their suppliers are already developing and improving hybrid technolo-gies, which can be seen as a transition from conventional to electric vehicles. These hybrid technologies are an important step towards zero emissions.

Topic: Special Workshop Automotive Industry – Auto Shanghai 2009Date: 20th April 2009Speakers: Mr. Ralf Kalmbach | Partner & Head of Global Automotive Competence Center, Roland Berger Strategy Consultants; Dr. Gerd Möhrke | Managing Director & Partner, Management Engineers China; Mr. Martin Knoss | Vice President Sales, Bosch UAES United Automo-tive Electronic Systems Co. Ltd. Chairs: Ms. Katrin Rühr | Dealer Support Manager, Porsche (China) Motors Ltd; Dr. Marcus Hoffmann | Principal, Roland Berger Strategy Consultants (Shanghai)

Mr. Ralf Kalmbach (Roland Berger)

Mr. Klaus Bräunig (German Association of the Automotive Industry)

Ms. Katrin Rühr (Porsche), Mr. Marcus Hoffmann (Roland Berger), Dr. von der Heyden (Consul General) and Mr. Martin Knoss (UAES) (left to right)

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Taicang as the First Region of Sino-German CooperationSino-German Economic Cooperation Forum 2009

Over 200 guests attended a high-level forum at the German Centre in Shanghai that brought together senior Chinese and German officials, including the Bavarian Minister of Economy, Mr. Martin Zeil and Party Secretary of the Taicang Committee, Mr. Pu Ronggao.

Taicang enjoys one of the richest densities of German enterprises in China, which gave it the title as the only “Sino-German Enterprise Cooperation Basis” last December. First investments of German com-panies in Taicang date back to 1993. Realising the benefits of the location near Shanghai and the Yangtze River, the number of German companies in Taicang has since then risen to 130. Over the years, three particular industry groups – precision machinery, automotive spare parts and new construction materials – have formed.

The forum participants together discussed how to further deepen the cooperation in economy, culture, education and technology between China and Germany at the best practice example of Taicang. In his speech, Mr. Pu reiterated Taicang’s goal to “build the first region of Sino-Germany Cooperation.” As such, Taicang would not only strive to be a prosperous base for German SMEs and a centre of the dual-system training, but also to provide a comfortable living environment for German residents.

The forum was organised jointly by the Taicang Municipal Government, the German Centre and AHK Shanghai.

Topic: Chinesisch-Deutsches Wirtschaftsforum 2009 – Zusammenarbeit an Standorten erster Wahl am Beispiel TaicangDate: 24th April 2009Speakers: Mr. Martin Zeil | Bavarian State Minister of Economy, Infra-structure, Transport and Technologies; Ms. Qiu Lixin | Vice Mayor of Suzhou; Mr. Pu Ronggao | Party Secretary of Taicang Committee

Mr. Martin Zeil (Bavarian Minister of Economy) and Mr Ling Ji (Vice director of European Section of National Department of Commerce) (left to right)

Party Secretary of the Taicang Committee, Mr. Pu Ronggao.

Around Town – Beijing

…and Improving Environmental and Safety Performance

21st April 2009 | Jianyin HotelThe first regional launch event of the SWITCH-Asia project was held in Beijing supported by the Ministry of Industry and Information Technology, the Ministry of Environmental Protec-

tion and the Ministry of Finance in China. Over 200 Chinese enterprises and relevant associa-tions of the electrical and electronics industry participated in the successful event.

GCC • Beijing’s 9th Annual General Meeting16th April 2009 | Kempinski Hotel Beijing Lufthansa Center

This year’s Annual General Meeting attracted more than 80 participants, who got the chance to engage with the Board Members in a direct dialogue while enjoying a tasteful “after-show” buffet.

Signing the Contract…14th April 2009 | GCC • BeijingOver the coming four years the Delegation of German Industry and Commerce • Beijing will imple-ment a project of the SWITCH-Asia initiative of the EU in cooperation with Chinese and European partners. This was recently inked in a signing ceremony among the partners.

Around Town – Beijing

Credit Crisis and Corporate Credit Risk Management in China1st April 2009 | Shangri-La Kerry Centre Hotel

In a joint chamber seminar on credit crisis and credit risk management the audience gathered for a tasty breakfast and listened to Mr. Benja-min Gan from Coface, who gave an overview of

the global financial situation.

Inter-Chamber Networking2nd April 2009 | Zeta Bar, Hilton BeijingThe Inter-Chamber Networking time and again provides a great opportunity to meet members and friends of different chambers in Beijing. This time, the GCC • Beijing cooperated with the British Chamber and organised an event that attracted more than 50 networkers.

Around Town – South ChinaSpring Networking with GCC • South China

March and April 2009 | Guangzhou, Shenzhen, ZhuhaiSeveral networking events, organised by the Chamber, delighted the international community across South China.

Office Extension Party9th April 2009 | GIC/GCC Office GuanzhouMembers and VIPs celebrated the office extension of the German Chamber of Com-merce • South China and the German Industry & Commerce Guangzhou Branch.

Around Town – South China

Shenzhen Office Opening7th May 2009 | Kempinski Hotel ShenzhenSponsored by BMW, Melitta, Trolli, Shenzhen Airlines, The Executive Centre and GD Sports, the grand opening of the German Chamber of Commerce • South China office in Shenzhen was celebrated by more than 100 members, guests and officials.

All photos courtesy of Delta Bridges (www.deltabridges.com)

Around Town – ShanghaiInter-Chamber Mixers

The popular networking events took place in Shanghai and Suzhou this spring and were once again a great success.

2nd German Expat Meeting Shanghai 3rd April 2009 | Le Royal Méridien ShanghaiWhat started as a small virtual group on online social platform Xing (www.xing.com/net/shanghai-de) now counts more than 1000 German expats in Shanghai. More than 100 of them gathered for their second “offline” meeting at the 64th floor of the Shimao Building, the tallest one in Puxi. Further meetings at exciting venues are planned.

21st April 2009 |Kempinski Suzhou

18th March 2009 | Hyatt on the Bund

Around Town – ShanghaiDimo’s Factory Tour17th April 2009 | Dimo’s Taicang Jiangsu ChinaGCC members and non-members had the opportunity to gain insight to the work of a German butcher in China and to learn how to hand-make sausages, enjoying them afterwards at the joint barbeque.

Art Meets Consulting14th April 2009 | Roland Berger Office @ Kerry Center Shanghai

Together with Art+ Shanghai gallery, the German strategy consultancy again hosted a cocktail reception for clients and guests, including Consul General Dr. von der Heyden. Artists Nial O’Connor and Liao Yang provided the creative backdrop with their paintings and a live performance.

“Let’s Twist Again” with the German Club Shanghai 28th March 2009 | SIN LoungeThe German Club Shanghai invited members and non-members to a big charity dance party with music of the 60s. Guests enjoyed nostalgic dishes and “twisted” the night away, many of them in original costumes. Great atmosphere and memorable impressions are calling for an “encore” soon.

Shanghai IT Day 25th March 2009 | The Longemont Hotel

Visitors from about 50 European and Chinese IT companies followed the invitation to the 4th Shanghai IT day. After the opening keynote of Mr. Hans-Peter Bergander from Bosch about how to bridge the gap between IT and business, several

speeches were delivered by some of the most experienced IT professionals in Asia.

gc ticker june-july 2009 part 2

Documents

china experts

present day china

crisis greater china

large china operations

german chambers of industry

german chamber of commerce

german ambassador

german companies