BUSINESS FOCUS                    NEWS FROM BERLIN AND BRUSSELS

                     NEWS FROM                                                                 Basel III Threatens Long-Term
             BERLIN AND BRUSSELS                                                               Berlin. The “Working Committee SMe”,
                                                                                               a body of the DiHK, warns that Basel iii
                                                                                               could cause a decrease in the allocation
                                                                                               of long-term loans. The nine member
                                                                                               associations of the committee believe that
                                                                                               Basel iii will have a negative influence on
                                                                                               the duration and interest rate conditions of
                                                                                               bank loans. The new liquidity regulations
                                                                                               could particularly lead to banks being
                                                                                               forced to increasingly offer short-term
                                                                                               credits. This conflicts the German tradition
                                                                                               of long-term investment financing, which
                                                                                               offers companies necessary reliance in
                                                                                               planning. At the upcoming implementation
                                                                                               of Basel iii into european legislation, the
                                                                                               DiHK will advocate for maintaining the
                                                                                               well-proven ways of financing for small
                                                                                               and medium-sized companies.
Economy Signs Charter About Flexible Labour Time
Berlin. Family-friendly and flexible          models and to reconcile family and
working times are the key when it comes       work life. The countless possibilities
                                                                                               EU Sets Up Resources Strategy
to securing skilled employees. This           that flexible working time models offer –        BruSSelS. The unhampered access to
was agreed upon by representatives of         beyond the common rigid conception of            resources in global markets is supposed to
industry and labour unions when invited       part-time or full-time jobs – will be further    be a part of the new eu-resource strategy.
by Chancellor Angela Merkel and Federal       advertised and improved. in this process         This has already been demanded by
Minister for Family Affairs Kristina          it is important to consider both employer        the DiHK at the eu counsel on critical
Schröder on 8th February 2011. Mr. Hans       and employee interests. According to             resources last autumn. now it is up to the
Heinrich Driftmann, president of the          Mr. Driftmann, “basic conditions that            politicians to bring about european and
DiHK, and the Minister for Family Affairs     currently prevent companies and their            international agreements with transparent
and several other business representatives    employees from implementing flexible             rules and without confinements. The
signed a charter, in which they vow to        solution have to be addressed.”                  current DiHK survey, which is at the
support family-friendly working time          Contact:                 hand of the committee, shows that price
                                                                                               jumps and market access problems cause
                                                                                               the supply of raw materials to turn into a
No Reporting Duties Through the Backdoor                                                       bottleneck for German companies. More
Berlin/BruSSelS. The DiHK opposes             from providing new jerseys to local soccer       than half of companies even worry they
plans by the eu commission to force           clubs, to offering child care to employees, to   won’t have access to required resources
companies to publish their voluntary social   implementing energy efficiency initiatives.      anymore. As an accompanying measure,
and environmental commitment in their         Most of the time, companies don’t publicise      free commodity markets are a necessity.
business reports, calling them harmful.       these activities which are considered normal.    Contact:
The DiHK points out that the majority         A bureaucratic obligation to report would
of companies have always been socially        rather endanger social activities.
committed. Companies are active in many       Contact:
areas and in a variety of ways: ranging

Summit Talk Over Skilled Worker Shortage
                         Berlin. Federal      reforms in education policy and to shift
                         Minister ursula      awareness in companies. The decrease in
                         von der leyen        number of school graduates and applicants
                         invited the          for apprenticeships are already affecting
                         heads of trade       companies. The circle agreed to work out
                         unions and trade     a strategic paper with potential solutions
                         associations to      from the federal government, industry and
                         meet in Berlin       trade unions in the first half of 2011. The
                         and discuss          main issues will be support in the transition
potential joint strategies to counter the     stage from school to work, continuous
shortage of skilled employees. Mr. Hans       training throughout employment as well as
Heinrich Driftmann, president of the          overcoming the skilled worker shortage in
DiHK, suggested to take advantage of the      technical and healthcare areas.
current demographic developments for          contact:

8     April - May 2011
                                                                                MEMBER NEWS BEIJING         


 With Compliments
 europe’s oldest hotel group Kempinski          “During the survey, Kempinski stood out in all    several categories in a study carried out by
 was honoured with the Best Brands award        areas of service,” said Mr. Sigfried Högl, Man-   the German market and consumer research
 in the category of Best Service Provider.      aging Director of GfK, part of the awarding       company GfK. The category ‘Best Service
 The luxury hotel group was ranked first        body. “The unique and decentralised nature of     Provider’ focused on decision makers and
 followed by Germany’s largest bank,            Kempinski’s strategy was recognised by those      opinion leaders. For this year’s ranking, 850
 Direktbank ING DiBa, and Lufthansa. This       surveyed, and that makes all the difference.”     people were surveyed about indicators such
 places Kempinski in the same league as                                                           as performance, reliability, availability and
 Volkswagen, lego and Apple among the           Best Brands Awards nominees are determined        reputation.
 most successful brands in Germany.             by the consumers: brands were evaluated in

Reporting Growth                                Expanding Dimensions
Deutsche Bank has announced its financial       Marking an unprecedented achievement in           the capacity of its predecessor, the second
results for the full year of 2010: income       their history, Elster Group was awarded the       pipeline is expected to transmit up to 30bn
before taxes was eur 4bn; income before         contracts to deliver more than 80 sets of gas     cubic metres of natural gas each year.
income taxes, excluding the Postbank and        metering skids for the Second West-East Gas
other acquisition-related charges, was eur      Pipeline Project, WePP ii.                        Apart from easing the supply shortage
6.5bn. A record fourth quarter reported                                                           of natural gas in China, the WePP ii will
revenues of eur 7.4bn, and income before        The First West-East Gas Pipeline Project          significantly speed up the economic growth
taxes in the fourth quarter totaled eur         (WePP) comprises 4,000km and pumps gas            of the regions along the pipeline, improving
707mn. The Bank successfully completed its      from Xinjiang to Shanghai, transmitting 12bn      local revenue, boosting employment
eur 10.2bn capital increase; Tier 1 ratio was   cubic metres of natural gas per year through      opportunities and bringing about
12.3% and core Tier 1 ratio was 8.7%. The       more than 40 gas metering skids provided          momentous economic and social benefits.
Bank proposed a cash dividend of eur 0.75       by elster in 2004.
per share for 2010, and reaffirmed its 2011
profit target of EUR 10bn.                      The Second West-
                                                East Gas Pipeline
Management Board Chairman Dr. Josef             Project starts
Ackermann said, “2010 was a year of             in the west in
investment and change for Deutsche Bank. in     Xinjiang, stretches
the process, we greatly improved our global     to Guangzhou
market position and are eminently well placed   and Hong Kong
for further growth. using the momentum          in the south and
of these achievements we aim to pursue the      to Shanghai in the
ambitious earnings targets we set ourselves.”   east. Doubling

                                                                                                                        2011 April - May      9
       BUSINESS FOCUS                     MEMBER NEWS BEIJING

 Venturing Out
 in november 2010, the Bucyrus Huainan
 Joint Venture, which is 60% owned by
 Bucyrus officially opened and celebrated
 the ribbon cutting ceremony at their new
 facility in Huainan, Anhui Province.
 under the name Bucyrus Huainan
 Machinery (BHM), the factory has
 completed pre-production activities and
 is now strongly focusing on customer

 Twelve months in the making, the
 new factory has already exceeded
 expectations with 16,000m2 of
 manufacturing space poised to capture
 a larger piece of the domestic and
 international belt conveyor system
 markets. The plant is complemented by
 a three-story office building with the
 first two floors configured for the belt      Under New Direction                                        Excellent Advice
 conveyor office personnel and the 3 rd
 floor semi-finished for future expansion                                                                 Mr. Florian Hackelberg is a Senior Manager in
 with other products. Currently, almost                                                                   the Advisory practice of PwC, with over six
 200 BHM employees are working a full                                                                     years of experience in Transaction Services.
 first and partial second shift.
                                                                                                          He started his career with PwC in Berlin and
                                                                                                          later joined the valuation group in Shanghai
                                                                                                          where he worked for two years until 2009.
New Team Member                                                                                           After that, he focused on finishing his PhD
                                                                                                          at the Technical university of Berlin on
Ms. Manuela reintgen has joined the
                                                                                                          the topic of real estate valuation in China.
Dezan Shira & Associates team. As Business
                                                                                                          Mr. Hackelberg has substantial experience
Development Associate, she is part of the
                                                                                                          in performing business combinations
German desk and advises international
                                                                                                          (Purchase Price Allocations), land use rights,
clients on incorporations and legal issues
                                                                                                          real estate and machinery and equipment
concerning their China investments.
                                                                                                          valuations for transaction, tax and financial
Manuela completed a degree in Translation
                                                                                                          reporting purposes. He is a Professional
Studies, during which she studied Chinese,
                                                                                                          Member of the royal institution of Chartered
French and law, and was selected for an
                                               nearly 15 years ago in 1997, interturbine                  Surveyors (MriCS) and an associate lecturer
academic research position in transnational
                                               Aviation Logistics – an approved supplier                  at the university of Applied Sciences
bargaining protocols focusing on Chinese
                                               of CeS materials such as standard                          Aschaffenburg.
and european relations. Prior to joining
Dezan Shira, Manuela worked as translator      hardware, raw and semi-finished materials,
and representative for academic institutions   consumables, chemicals and composites
and legal and governmental organizations in    to the aerospace and high-tech industries,
both Germany and China.                        MRO’s and airlines – recognised the big
                                               potential of the fast growing aviation market
                                               in China and opened its representative
                                               Office in Beijing.

                                               This is when the success story of interturbine
                                               i n C h i n a s t a r t e d a n d t o d a y, e l e v e n
                                               employees take care of the interturbine
                                               customers in China.

                                               now Mr. Markus Schultz will continue
                                               and develop the successful business
                                               operations of interturbine in China. With
                                               their new Director of Operations and Chief
                                               representative, interturbine has found
                                               a well-experienced manager. After six
                                               accomplished years in China, predecessor
                                               D r. M i c h a e l A n d ru t h a s re t u r n e d t o

10    April - May 2011

Highlighted                                                                     Expansion Minded
TÜV rheinland was awarded the honour of being a “Top Ten                        Commerzbank has
Highlight” at the 2011 SneC Photovoltaic Power expo. The                        ambitious plans for
group's 90m 2 booth housed the latest in PV product quality                     corporate customer
standards and offered visitors the chance to meet and discuss                   business with
with the company’s reputed engineers. Demonstrating the                         China: its business
company’s extended PV scope, TÜV rheinland signed a MOu                         volume in the
with Anhui eHe new energy Tech. Co. ltd (eHe new energy),                       Corporate Banking
a leading PV inverter manufacturer, during the Power expo                       segment of Asia’s
opening.                                                                        largest country
                                                                                is anticipated to
                                                                                increase by 20% this
                                                                                year alone. Thus, the
                                                                                planned growth rate
                                                                                in China doubles
                                                                                that for the entire
                                                                                Asia region, in which
                                                                                intends to grow by
                                                                                10% annually. “We
                                                                                would like to clearly
                                                                                expand our market
                                                                                position in the booming region Asia,” says Michael Kotzbauer,
                                                                                regional Board Member Asia.
Uwe Halstenbach, Director of Electrical Product, TÜV Rheinland Greater China,
with Huang Mingjiu, president of eHe new energy, at the MOu signing ceremony.   in Commerzbank’s corporate customer business, Asia is the most
                                                                                significant market after Western europe. Mittelstandsbank offers
                                                                                consulting and services to German SMEs doing business in China,
                                                                                but also advises Chinese firms seeking to do business in Germany.
                                                                                Commerzbank has been represented in Asia for 50 years, and the
                                                                                representative office in Beijing was opened 30 years ago.

                                                                                                                           2011 April - May   11
        BUSINESS FOCUS                           MEET THE MEMBER

                                                                                      discovered the highly dynamic growing city of Shijiazhuang, the
                                            Company: E.R.P. Eastern                   capital of Hebei province close to Beijing. China is like a continent
                                            Relationship Projectconsult &             in itself. now i always get a funny feeling when i meet those self-
                                            Real Estate GmbH                          proclaimed “China experts” in europe or the uSA.
                                            Job Title/Position:
                                            Managing Partner                          With your renewed annual sponsorship, you continue your
                                                                                      commitment to support the work of the Beijing Chamber,
                                            Year of Foundation: 1994
                                                                                      which we would herewith like to thank you for…
                                            HQ: Berlin                                no, i have to thank you. This sponsorship is only a small gesture to
                                            Main Business: Consulting                 show our gratitude. The Beijing Chamber was from the start our guide
                                            and Research Services                     through the intercultural risks and to the right people. We had the
                                            Number of Employees: 20                   honour of hosting a Chinese delegation led by the First Vice Mayor
                                                                                      of Shijiazhuang, his executive staff and a member of the iCC/nDrC
                                                                                      in Berlin. Frankly, we ourselves had to look up “Shijiazhuang” on
             Manfred Schönebeck                                                       the map, but welcomed them as friends. Of course, we got a return
                                                                                      invitation and when we first arrived, we were invited to numerous
                                                                                      ceremonies, “ganbei”, memorandums and contracts. now we have the
Mr. Schönebeck, a year has passed since we spoke to your                              option of land rights to a 10km2 plot and a rMB 30bn project there: the
managing partner Mr. Olaf Tietz and first introduced your                             concept, planning and development of a German Applied Technology,
company. In retrospective, how has E.R.P. developed in the                            research and Development Park.
past year?
Although we have arrived, we are still permanently learning. every                    We are deeply involved in the German research and education
day brings something new and unexpected. We have fallen in love                       community, so the interests of the city and our profile fit perfectly. But
with the country. We have seen more than 40 cities and thought we                     without the feeling of security the Beijing Chamber gave us through
have seen it all and are successful, but we now understand that we are                their support, we would have been reluctant to say YeS to this project.
still at the beginning.                                                               We are open for more partners in this project – research departments
                                                                                      of German companies, or SMEs engaging in R&D. We will build
To which places in China has your work taken you so far                               new cooperations with big Chinese companies to offer personal one-
and which was your most memorable trip?                                               stop services including iPr protection. With the planned new high
Our whole stay here is like a never-ending unforgettable trip. But the                speed train station, you can soon reach Shijiazhuang in one hour from
highlights were elegant Hangzhou, beautiful lijiang, breathtaking                     Beijing. This could be interesting for any company which can’t find
Shanghai, powerful urumqi, and romantic Chengdu. We also                              land in Beijing but wishes to invest nearby.

BEIJING + TIANJIN                                     For full contact information and company profiles of our new and existing members please visit

  Mr. Udo L. Thiel                                      *                              Mr. WU Janhong
  Managing Director                                                                                               Chief Representative
  Block Transformatoren – Elektronik GmbH               Mr. FENG Xingliang                                        Deutsche Boerse AG
  ' 010 4231-6780                                       Chief Representative                                      ' 010 6502-8300
  *                     NRW Invest China/Beijing                                  *
                                                        ' 010 6590-7066
  Mr. Matthias Voss                                     *                             Mr. Kevin Barry Peake
  Partner                                                                                                         Managing Director
  Allen & Overy LLP, Beijing Office                     Mr. Ruediger Neumann                                      Webasto (Changchun)
  ' 010 6505-8800                                       Executive Director/General                                ' 0431 1594 3098 100
  *                        Manager                                                   *
                                                        Schleifring Transmission
  Mr. Thomas Brosig                                     Technology (Beijing) Co., Ltd                             Ms. YU Huiying
  Lawyer, Partner                                       ' 010 8048-6340                                           Site Manager Beijing
  DS PPR & Partner                                      *                                 Shanghai Bertelsmann Commercial Services Co. Ltd.
  ' +49-211 8289-290                                                                                              ' 010 6590-7990
  *                              Ms. Rupali Steinmeyer                                     *
                                                        Managing Director
  Mr. Dirk Meissner                                     MetaDesign China Limited                                  Dr. Richard van Kasteel
  Managing Partner                                      ' 010 8523-5788                                           *
  EastStep Consulting Ltd.                              *
  ' 010 6590-0158                                                                                                 Ms. Mareike Kiy
  *                       Ms. ZHANG Shiyan                                          *
                                                        General Manager
  Mr. Pierre Eloy                                       LEMKEN Agricultural Equipment                             Mr. Bernhard Kohn
  CEO                                                   (Beijing) Ltd.                                            CFO
  Leenderson Construction Materials sales               ' 010 6590-7738                                           Siemens Mechanical Drive System (Tianjin) Co., Ltd
  (Beijing) Co., Ltd                                    *                                      ' 022 1382 1952 205
  ' 010 1589 1436 888                                                                                             *

12    April - May 2011
2011 April - May   13
        BUSINESS FOCUS                              MEMBER NEWS SHANGHAI

MEMBER NEWS                                                                                              Freudenberg Supplies World's
                                                                                                         Largest Wind Power Market
SHANGHAI                                                                                                 The international wind power equipment
                                                                                                         industry was hard-hit by the world
                                                                                                         economic crisis, with a severe fall in
                                                                                                         new capacity installed. Only China was
                                                                                                         unaffected, reporting the largest number
                                                                                                         of new wind power facilities, with a
                                                                                                         capacity of 14,000 to 16,000 MW, about
                                                                                                         half of the global figure. This makes
                                                                                                         China the world's largest wind energy
                                                                                                         market, and Freudenberg is playing a
                                                                                                         key role as a supplier. every second wind
                                                                                                         turbine already features a seal product
                                                                                                         from Freudenberg. The company offers
                                                                                                         tailor-made seal and specialty lubricant
                                                                                                         solutions under the "lube & Seal" brand.
                                                                                                         Simrit and nOK products have a market
                                                                                                         share of about a third. in addition,
                                                                                                         Freudenberg manufactures high-quality
                                                                                                         products at its Qingpu and Taicang
                                                                                                         facilities. The customers are Chinese
                                                                                                         wind turbine producers such as Sinovel
                                                                                                         Windtech, Goldwind, Baoding Tianwei
 every second wind turbine features a seal product from Freudenberg.                                     Wind Power and SeWind.

Ipsen Launches New Plant in Changzhou
As a leading supplier of heat treatment                   Changzhou ipsen will start operations
solutions, ipsen is experiencing a great                  in April 2011. This new plant will share
development in China. To meet the demand                  advanced technologies and mature
of business and production expansion,                     managements with ipsen Shanghai. As a
ipsen has established a new company                       supplement to the Shanghai plant, it will
in Changzhou national Hi-tech District,                   provide powerful support, benefiting the
Jiangsu province.                                         whole Group’s development. After the
                                                          new plant begins operating, ipsen China
The new facility occupies 6,000m 2 with                   plans to increase its yearly turnover by
workshop, offices and much more.                          approximately 35% in 2011.

 METRO Promotes Cold Chain Development and Food Safety                                                  CMS Appoints New Senior
 with Partners                                                                                          Associate
 On 13 th January 2011, MeTrO Cash &                      were highly recognised and appreciated by     CMS China is pleased to announce the
 Carry China and Shuanghui logistics                      the experts. under an earlier cooperation     recent appointment of a new senior associate
 investment Company ltd. held a                           agreement, Shuanghui logistics will           to strengthen its TMT team. Mr. Samuel
 “Cold Chain & Food Safety Forum” in                      provide cold chain services to MeTrO Cash     Yang is an experienced lawyer in the
 Shanghai. More than 100 delegates from                   & Carry China for its 2,000 perishable food   telecommunications and broader iT industry.
 the government, industrial associations,                 products.                                     He advises on regulatory matters and a
 research institutions, suppliers and                                                                   wide range of corporate and commercial
 customers joined the event.                                                                            transactions.

 At the roundtable forum, experts and                                                                   Two of the deals CMS advised on in 2010
 industrial leaders from trade, food,                                                                   were nominated "Deals of the Year" by China
 logistics and relevant industries held in-                                                             Business law Journal and one is featured in
 depth discussions and shared expertise on                                                              its February 2011 edition. Joyou’s iPO on the
 “how to create the whole-process supply                                                                Frankfurt Stock exchange was named one of
 chain for fresh and safe food”. MeTrO                                                                  the 2010 “Capital markets deals of the year –
 Cash & Carry China's high standard and                                                                 offshore iPOs & listings”.
 strict implementation of the industry-
 leading cold chain logistics and food safety
 management, as well as its commitment to
 the healthy development of food industry

14     April - May 2011
Henkel Delivers Record Results
                                                     Henkel recently
                                                     re l e a s e d i t s 2 0 1 0
                                                     annual results. With
                                                     a sales increase
                                                     o f 11 . 2 % t o e u r
                                                     15,092mn, 2010
                                                     marks the best
                                                     result ever in the
                                                     134-years-history of
                                                     the company.

                                                  “2010 was excellent.
                                                  For the first
                                                  time, we closed a
                                                  financial year with
                                                  an adjusted eBiT
                                                  margin above 12%,”
                                                  said Henkel CeO,
                                                  Mr. Kasper rorsted.
                                                  “We have improved
                                                  the market positions
                                                  of all our business
                                                  sectors and have
  Henkel CeO, Mr. Kasper rorsted says 2010 was an
                                                  further strengthened
  excellent year.                                 our top brands. We
                                                  have also been able
to further expand our positions in the emerging markets.”

The upward trend was most pronounced in the Asia-Pacific region:
sales increased by 30.8% to eur 2,168mn and eBiT grew by almost
120% to eur 306mn. The Cosmetics/Toiletries business sector
successfully continued its growth trend, the Adhesive Technologies
sector performed exceptionally well, achieving a record high sales
increase of 17.4% worldwide, with the highest growth rates in the
Asia-Pacific region.

Behr Asia-Pacific Hosts Supplier Day 2011
                                  On 19th January 2011, the Purchasing and
                                  Quality Department of Behr Asia-Pacific
                                  located in Shanghai hosted its “Supplier
                                  Day 2011”. invited were more than
                                  150 guests from suppliers across Asia.
                                  Purchasing Asia Director, Mr. Markus
                                  Franetzki presented the Key note issued
                                  by the Behr Group CFO, Mr. Hermann
 S u p p l i e r D a y 2 0 11 –   Tetzner.
 Mr. Markus Franetzki,
 Director Purchasing, Asia Mr. Franetzki also gave an overview of
 (Behr Asia-Pacific)
                           the outstanding achievements made in
global sourcing from Asia. China contributed to all major Behr Group
locations worldwide with continuously high growth rates of more
than 100% year-on-year. Chinese suppliers are becoming leading
global suppliers on a number of commodities in the Behr Group.

A day earlier, Mr. Franetzki invited the most important CeOs of Behr’s
suppliers in Asia and China to a formal “CeO Dinner” attended by all
Behr Group PU Directors.

                                                                                    2011 April - May   15
         BUSINESS FOCUS                               MEMBER NEWS SHANGHAI

  Schaeffler Signs Strategic Cooperative Agreement with                                                             East Meets West at Body &
  NGC and SANY                                                                                                      Soul – Medical Clinics
                                                                                                                    Body & Soul welcomed two new colleagues
                                                                                                                    in February 2011: Mr. Greg Livingston Ph.D.
                                                                                                                    from the uS and Dr. Dagmar Dreher-Spika,
                                                                                                                    General Practitioner from Germany.

                                                                                                                    Dr. Greg A. Livingston, Ph.D. is a licensed
                                                                                                                    Traditional Chinese Medicine physician
                                                                                                                    with over 15 years experience specialising
                                                                                                                    in internal medicine. He is one of the few
                                                                                                                    westerners to have completed a Chinese
                                                                                                                    Medicine Ph.D. in China entirely in Chinese.
                                                                                                                    Dr. livingston earned his B.Sc. in Biology
                                                                                                                    from the university of California, his four-
                                                                                                                    year M.Sc. in Chinese Medicine from Five
                                                                                                                    Branches university, and his Ph.D. in
  Dr. GOU Jianhui, Managing Director                        possesses advanced r&D and manufacturing                Clinical Chinese Medicine from Zhejiang
  of Schaeffler Group Greater China, has                    technology for bearings and has advanced                Chinese Medicine university.
  recently signed a strategic cooperative                   experience in the transmission industry.
  agreement on behalf of Schaeffler Group                                                                           Dr. Dagmar Dreher-Spika is practicing as
  Greater China with Nanjing High Accurate                  The strategic cooperative agreement signed              a GP in our Minhang clinic. She studied
  Drive Equipment Manufacturing Group                       by Schaeffler, NGC and SANY strengthened                General Medicine (M.D./Ph.D.) at Justus-
  Co. Ltd. (NGC) and SANY Group.                            Shaeffler Group’s position in the field of              Liebig-University in Gießen. In 2006 she
                                                            gear box, machine tool and especially in                finished her studies as Medical Specialist in
  As one of the ten most innovative enterprises             wind power. it will lay a solid foundation              General Medicine. Afterwards, she practiced
  in Germany, Schaeffler Group and its                      for win-win results and for promoting the               in several hospitals in Germany and
  three main brands – INA, LuK and FAG –                    progress of the three enterprises in the                Switzerland.
  strive for innovation and quality. Schaeffler             industry.

LAR Opens a New Sales Office in Shanghai
LAR Process Analysers AG – the German                       of the German Centre for Trade
manufacturer of online analysers for the                    and industry in Shanghai,
measurement of TOC, COD, toxicity and                       w h e re t h e n e w f a c i l i t y i s
other parametres in water, waste water,                     located. its new work force
surface water as well as many industrial                    will support and strengthen
applications – is growing in China.                         the headquarters in Hangzhou
                                                            by extending the provision
In March 2011, a new sales office in Shanghai               of technical support and
was opened to meet the progressive                          enforcing the approach of new
re q u i re m e n t s o f t h e C h i n e s e m a r k e t   markets and cooperations.
taking an upward trend in the water field.                  Hence, LAR – both in Germany
Following the motto "nice TOC You!", lAr                    and in China is expecting
AG and its subsidiary in Hangzhou will                      another successful year to
closely cooperate with the German network                   come.                                      Small but nice – LAR's new premises at the German Centre Shanghai

16      April - May 2011

 REMONDIS First Joint Venture                                           Roland Berger President Publishes New
                                                                        Management Book
                                                                        Mr. Charles-edouard Bouée, President of roland Berger Strategy
                                                                        Consultants, Asia, hosted a launch party for his new book "China's
                                                                        Management revolution: Spirit, land energy" on 13th January 2011
                                                                        at the J&e Mansion in Beijing, China with more than 40 guests

                                                                        in Mr. Bouée's book, he argues that the new and distinctively Chinese
                                                                        style of management fits the fast, unpredictable and volatile business
                                                                        world of today. The book has been warmly and widely acclaimed by
                                                                        readers from different fields. Roland Berger Global CEO, Mr. Martin
  On 18th January 2011, reMOnDiS held the opening ceremony              Wittig joined the party as well, along with prominent scholars
  of its first joint venture in China, the Changchun FAW ZH             and influential media to celebrate the publishing of Mr. Bouée's
  reMOnDiS environment Technology Co. ltd.                              first book. "This book is the bridge for Westerners to get to know
                                                                        China's management style," said Mr. Wittig. Many media, including
  Mr. Li Changjiang, Assistant General Manager of FAW Group             FTChinese, Forbes wrote book reviews and recommended the book
  and board member of FAW Comprehensive utilization Co.                 in their publications.
  ltd, Mr. Yan Wen, Head of Changchun environment Protection
  Bureau, Mr. liu Jianmin, President of China national resources
  Association and other local representatives attended the ceremony.
  From the German side, Dr. Karsten, Minister and Head of the
  Economic Department of the German Embassy in Beijing and
  Mr. Jan Noether, Chief Representative of the German Chamber of
  Commerce • Shanghai, were present.

  Changchun FAW ZH reMOnDiS environment Technology Co.
  Ltd. is a Sino-German joint venture company between Changchun
  FAW CU and REMONDIS Industrie Service GmbH & Co. KG (RIS).
  The main business scope of the JVC is the collection, treatment,
  disposal and recycling of industrial hazardous wastes.

  The company is the first of its kind in China producing refuse
  derived fuels (rDF) generated from solid hazardous wastes. By
  disinfecting and recycling of hazardous wastes and providing this
  recycled product to a local cement plant of the Yatai Group, the
  company not only saves energy and protects the environment, but
  also reduces the consumption of natural resources (e.g. coal) and
  improves efficiency of national resources utilisation. Furthermore,
  it will generate sustainable economic growth and take full
  advantage of preferential policies given by local government for
  setting up a circular flow economy.

TMD Friction Forms Aftermarket Alliance with
Hella in China
On 9th December 2010, TMD Friction signed an agreement with
Hella KGaA Hueck & Co. to form an aftermarket distribution
alliance, marketing strong brands, Textar and Mintex, and premium
original products through an existing, established business platform.
TMD Friction is a leading supplier in manufacturing brake friction
components in europe to both the Oe and independent aftermarket
sectors. On the other hand, Hella, with a hundred years history, is a
worldwide precedent Oe and aftermarket supplier for automotive
parts and accessories.

The alliance stems from TMD Friction’s growing sales and market
share in the Oe sector, which has prompted them to look at the
potentials of aftermarket business in China. Taking money and time
into consideration, TMD Friction chose Hella because they share
the same philosophy, strategy and standards as TMD. Since Hella
is able to adapt to the constantly changing market, both parties are
confident in the alliance.

                                                                                                                      2011 April - May   17
       BUSINESS FOCUS                            MEMBER NEWS SHANGHAI

 Grand Opening of Puls
 Electronics in Suzhou
 O n 1 6 t h n o v e m b e r 2 0 1 0 , P u l s ’ To p
 Management inaugurated the new Puls
 Facility in Suzhou. Besides a unique
 design, this building features a multitude
 of energy-saving and sustainable elements.
 This qualified the project for the leeD
 Consulting (Shanghai) delivered the
 engineering and construction management
 in the design and the construction phases,
 while also conducting the LEED certification
 by in-house leeD APs.

 BMP Construction Consulting (Shanghai)
 Co. Ltd. is a Sino-German Engineering
 and Project Management Firm with more
 than 100 highly qualified engineers.
 The company has major activities in the
 industrial building sector, but especially in
 the automotive and pharmaceutical sectors.

Pullman Shanghai Skyway                                 New Representative at INCREON
Receives “Golden Leave”
                                                        inCreOn - Agency for naming, Branding
Pullman Shanghai Skyway Hotel was                       and Marketing Communications with many
awarded the “Golden Leaf” which is the                  years of experience in China - welcomes
highest honour authorised by the Shanghai               Mr. Sebastian Born as the new Marketing
Municipal Administration for great efforts              Communication Consultant and responsible
in environmental initiatives. The hotel has             Account Manager at its representative
not only built a “Building Administration”              Office in Shanghai.
system, through which it can supervise and
regulate the hotel boilers, air conditioning,           Mr. Born has worked for inCreOn at the
elevators and lighting systems but also                 Munich based headquarters. Previously he
encourages guests to stay in non-smoking                worked several years in an international
rooms and to recycle towels and bed sheets.             advertising network agency. He aims to
                                                        increase the number of business contacts in
All staff at the Pullman Shanghai Skyway                China and to successfully continue initiating
have devoted themselves to make the hotel               business contacts. in 2011, Mr. Born will take
more eco-friendly and to create a “Green”               over the position as Chief representative
atmosphere for their guests.                            Officer.

SEEBURGER China Inc. Appoints New General Manager
                                                        I n J a n u a r y 2 0 11 , S E E B U R G E R I n c .   eDi, WMS, Bi, DW/DM, etc. Mr. Huang
                                                        announced the appointment of Mr. Gang                  graduated from Technical university Berlin
                                                        Huang to serve as General Manager of                   in Germany with a “Diplom Informatiker”
                                                        SEEBURGER China Inc. Mr. Huang is now                  degree.
                                                        responsible for sales, market development
                                                        and China operations for SEEBURGER’s                   SEEBURGER China Inc. thanks former
                                                        business in Greater China. He is also                  GM Mr. Philip Zhang for his efforts and
                                                        working with the company’s home office in              contributions in the last three years. From
                                                        Germany to leverage SEEBURGER’s global                 2011 onwards, SEEBURGER will invest more
                                                        footprint. Before joining SEEBURGER, Mr.               to support its expanding China customer
                                                        Huang was formerly with Daimler AG as                  base and to guarantee continued successful
                                                        Data processing Manager. He has strong                 deployments.
                                                        B2B domain expertise and an extensive
                                                        background in manufacturing industry,
                                                        especially in the automotive industry. He is
                                                        familiar with many enterprise information
                                                        areas, including erP, SCM, MrP, B2B/

18    April - May 2011

CWS-boco China Welcomes New General                                   Kindgee Becomes TOG Representative in
Manager                                                               China
                               Mr. Mark Ju has taken on the           To leverage the full capacity of iT in business, enterprises try to
                               position of General Manager for        develop adaptable enterprise architectures. Many are using The
                               China at CWS-boco laundry and          Open Group Architecture Framework (TOGAF™), the world leading
                               Hygiene Service Co. ltd. since         enterprise architecture framework and architecture development
                               September 2010. in this role, he       method. For over 25 years, The Open Group (TOG), a vendor
                               is responsible for whole P&l of        and technology neutral consortium, has been guiding industry
                               CWS-boco China. The main target        standards that range from the Single Unix® Specification to TOGAF
                               for Mr. Ju in his new position is to   – addressing end-user companies' requirements such as portability
                               launch the new CWS-boco service        and interoperability, security and reliability.
                               model in China, expand the
                               business in Beijing and Shanghai       As a Platinum Member of the Open Group, Kingdee has a seat in the
                               area, and find new opportunities       Open Group Governing Board and continues to participate in the
                               to set up new plants in different      Architecture Forum. in 2009, Kingdee became the representative of
                               cities. Mr. Ju holds a degree as       The Open Group (TOG) in China and has translated key documents
                               a bachelor of engineering and a        of TOGAF into Chinese to promote the adoption of TOGAF and
diploma of management in CeiBS. He began his career in 1992           enterprise architecture to the IT community in China and Asia Pacific
and specialises in Sales & Marketing, business development and        region.
public relationship. During the last 19 years, he took different
career roles in Atlas Copco China/HK, Wuerth Shanghai,                Kingdee provides localised access to information, resources and
HARTING China and Xella China.                                        certifications to educate users on TOGAF standard. TOG in China
                                                                      will soon introduce “international standard + iT implementation
CWS-boco is an international leading service partner for              platform”, with “iT innovation application laboratory” in the near
washroom hygiene, professional work wear and textile services,        future. TOG China will not only promote TOGAF and provide
and cleanroom services on a rental basis. With over 70 laundries,     training, but also provide members with life-cycle solutions.
1,600 vehicles and 8,000 employees in 18 countries, CWS-boco
is washing and processing every year around 140mn pieces of
linen, 100mn garments, 31mn cotton towel rolls and 8mn mats at
the high standards of quality for over 360,000 clients worldwide.
CWS-boco’s headquarter in China is based in Shanghai.

                                                                                                                    2011 April - May   19

Kuehne + Nagel Strengthens National Management                                                        Salans Promotes Dr. Iris
                                               Kuehne + nagel ltd. has appointed Mr.
                                               Alec Fu as Director Central China in
                                               January 2011. in his capacity, Mr. Fu is
                                               in charge of business development and
                                               general management of all Kuehne +
                                               nagel’s branch offices in central China,
                                               including Chengdu, Chongqing, ningbo,
                                               nanjing, Wuhan, Xian and Xiamen.

                                               Kuehne + nagel is continuing its network
                                               expansion initiative in China. Growing
                                               local consumption coupled with the strong
                                               “Go-West” push prompt for the accelerated
                                               strengthening of Kuehne + nagel’s
                                               presence in the country. in the course of the
                                               next twelve months, nine more new offices
                                               will be opened.

                                               in China, Kuehne + nagel operates in 40
                                               locations and employs around 3,000 people.

                                                                                                      Salans announced the promotion of Dr. iris
New Director and New                           New Location for Burkardt                              Duchetsmann to Of Counsel in the Shanghai
                                                                                                      office as of February 2011.
Headquarters for S+E                           Böhland & Partner
CHINA SHANGHAI                                                                                        Dr. Duchetsmann is the head of the China
                                               Burkardt Böhland & Partner rechtsanwälte,              e m p l o y m e n t g ro u p . H e r e n d e a v o u r
Mr. Klaus list, who brings with him nine       headed by Mr. rainer Burkardt, has opened              in developing the labour law practice,
years of China experience, has transferred     its new office on the 35 th floor of SOHO              supported by her team members, lead to
from Beijing to Shanghai as the new            Donghai Plaza. Burkardt Böhland & Partner,             Salans’ recommendation in “legal 500
Business Developing Director of S+e            a member of the eunaCon Consulting                     Asia Pacific 2010/2011” for its employment
CHinA. Previously, he was a Professor at       Group, shares its premises with EunaCon                practice.
the China Agricultural university in Beijing   Finance Solutions & Services. The new
and studied Chinese at liaoning Technical      location in the prestigious West nanjing               Dr. Duchetsmann specialises in advising on
university. He also has a master degree in     road office district marks another step in             labour law in Germany and China. She also
education and iT Technology from HAW,          strengthening the profile of the eunaCon               has extensive experience in advising aspects
Hamburg.                                       Consulting Group as an integrated provider             that involve cross-border employment
                                               of consulting services to the German                   and international Hr management. Dr.
The head office of S+e CHinA Shanghai          speaking corporate community in Shanghai               Duchetsmann also provides advice on
also moved to a new location (room 1102,       by specialised “Old China-Hands”. Besides              matters such as residency, tax and social
Building 42, Oriental Global Headquarter,      the law firm Burkardt Böhland & Partner                security, and is an active contributor for
lane 118, Yong He road, Shanghai) on 30th      and the finance consultancy eunaCon                    labour law publications and seminars.
January 2011.                                  Finance Solutions & Services, the group
                                               also comprises the executive search firm               "We wish her all the best in her new position
                                               eunaCon Hr Solutions & Services, which                 and thank her, together with our labour
                                               continues to operate from its premises in              law associate Ms. Cynthia lijuan Zheng for
                                               Zhangjiang.                                            their hard work in the past year," said Salans
                                                                                                      Greater China Managing Partner Dr. Bernd-
Waldorf Astoria Wins Best Contemporary Cuisine                                                        uwe Stucken when congratulating her on
Pelham's new York Cuisine, signature           are made in the materials herringbone                  the promotion.
restaurant at Waldorf Astoria Shanghai         wood and custom stone mosaic floors,
on the Bund, recently clinched its             leather panelled ceiling, an American
very first accolade as one of the six          penny ceiling and metal grillwork.
2010/2011 Best Contemporary Cuisine            A contemporary exhibition kitchen
restaurants in Shanghai in the annual          anchors the main dining area, creating
awards for Cuisine Map, organised by           a s e n s e o f t h e a t re a n d d y n a m i s m .
Modern Weekly and Martell Cognac.
                                               The restaurant features an exquisite menu
Pelham's is a harmonious pairing of            based on modern new York cuisine with
classical and modern elements to create a      innovative dishes and the freshest seafood.
formal, cosmopolitan yet intimate dining       A unique wine display offers a wide
space. Subtle references to the Big Apple      selection of some 500 bottles.

20    April - May 2011
 New Managing Director at Control Risks
 Mr. Kent Kedl joined Control risks Shanghai in January 2011
 as Managing Director responsible for the overall commercial
 and business operations for Control Risks in Greater China,
 the Koreas and Mongolia. Mr. Kent came to China in the 1980s,
 working initially in education and later in the iT sector before
 moving into strategy consulting. Prior to joining Control risks,
 Kent was Vice President and General Manager at Technomic
 Asia, a boutique strategy consulting firm. Mr. Kent’s expertise
 lies in helping foreign companies understand the unique
 challenges in Asia and design and execute strategies to establish
 and grow sustainable operations. At Control risks, Mr. Kent
 leads a multidisciplinary team of consultants that specialise in
 helping clients manage the political, security, operational and
 integrity risks that come with doing business in China and

Ms. Azure Cao and Mr. Martin Kuroczik
Join Asia Briefing
Asia Briefing, Dezan Shira & Associates’ company, welcomes two
new additions.

Ms. Azure Cao was appointed as east China Senior Marketing
executive at the start of 2011. She is in charge of distributing AB’s
magazines and books, organising events and syndicating articles.
Miss Cao, fluent in english and Mandarin, graduated with a
double major in Business Management and Marketing from Seattle

Mr. Martin Kuroczik started his role as German language Editor
in October 2010. He is writing, translating and researching content
for “China Aktuell”, the daily China news section of the German
China Briefing website alongside the printed magazine, as well as
sourcing contributions through collaborations. Mr. Kuroczik is fluent
in German and English, speaks intermediate Mandarin and obtained
a Master’s degree in international Political economy from leeds

                                                                        2011 April - May   21
      BUSINESS FOCUS                              NEW MEMBERS SHANGHAI

NEW MEMBERS                                                   For full contact information and company profiles of our new and existing
                                                              members please visit

     Prof. Arnaud Baril                               Mr. Mirko Grüber                                            Mr. Norbert Meuser
     Managing Director                                Shanghai                                                    General Manager
     Dynabond Power Tech Service Ltd. | Beijing       ' 021 3759-5585                                             Viscom Machine Vision (Trading)
     ' 010 6468-1222                                  *                                   Shanghai Co. Ltd. | Shanghai
     *                     *                                    ' 021 6161-9368                                                                                    *
                                                      Mr. HUANG Junbo
     Mr. Philippe Bouquiaux                           General Manager                                             Mr. Thomas Mueller
     Head of Global Sourcing and Bogie                S + E China | Shanghai                                      General Manager
     Bombardier Transportation                        ' 021 5237-0707                                             SHERATON SHANGHAI HONGQIAO HOTEL
     Consulting (Shanghai) Co. Ltd. | Shanghai        *                                          Shanghai
     ' 021 6105-4800                                                                     ' 021 6275-8888
     *                                                                      *                               Ms. HUANG Zheng                                   
                                                      General Manager
     Mr. Thomas Brosig                                Admatec Hong Kong Co. Ltd. | Hong Kong                      Dr. Gerald Neumann
     Lawyer & Partner                                 ' 00852 8173-6146                                           Director/ General Manager
     DS PPR & PARTNER                                 *                                          WOTAX Management Consulting
     Düsseldorf, Germany                                                                                          (Shanghai) Co. Ltd. | Shanghai
     ' 0049 211-828-929-0                             Mr. Benjamin Kille                                          ' 021 5081-2266 ext. 1852
     *                               Regional MIO Asia Pacific cargo-partner Logistics           *                                     (China) Ltd. | Shanghai                           
                                                      ' 021 6195-3812 ext. 0
     Mr. Chiang Kaiyuan                               *                          Mr. PAN Liping
     General Manager                                                               Managing Director
     Detectomat Safety Products                                                                                   Suzhou Draka Cable Co. Ltd.
     (Kunshan) Co. Ltd. | Kunshan, Jiangsu            Mr. Bert Krummrei                                           Suzhou, Jiangsu
     ' 0512 5519-8100                                 General Manager                                             ' 0512 6578-9888                                TQ Electronic Equipment (Shanghai) Co. Ltd.                 *                                Shanghai                                          
                                                      ' 021 3994-3010
     Mr. Dirk de Cuyper                               *                           Dr. QIU Hualai
     General Manager                                                                    General Manager
     Waldorf Astoria Shanghai on the Bund                                                                         Festo (China) Ltd. | Shanghai
     Shanghai                                         Mr. John Lee                                                ' 021 6081-5100
     ' 021 6322-9988                                  Senior VP Asia                                              *
     *                  Pinkerton Consulting Services                                                (Shanghai) Ltd. | Shanghai
                                                      ' 021 6103-3499                                             Mr. Jens Richter
     Mr. Olaf Detlef                                  *                              Managing Director
     General Manager                                                                   Multivac Packaging Equipment Ltd.
     INTORQ (Shanghai) Co. Ltd. | Shanghai                                                                        Shanghai
     ' 021 6828-4790                                  Ms. LI Huini                                                ' 021 3701-8118
     *;          Salary Partner                                              *
     www.                                  ADAMAS Attorneys-at-law                           
                                                      Shanghai Representative Office | Shanghai
     Prof. FENG Xin                                   ' 021 6289-6676                                             Mr. Koen Rommel
     General Manager                                  *                               VP - Sales
     Siemens Power Automation                                                     Bosch (Shanghai) Security Systems Ltd.
     Nanjing, Jiangsu                                                                                             Shanghai
     ' 025 5117-8521                                  Dr. LIU Bin                                                 ' 021 6317-2155
     *                       President & CEO                                             *
                                                      ERBE China Ltd. | Shanghai                        
     Mr. Allan Finn                                   ' 021 6275-8440
     CEO                                              *                                        Mr. Matthias Schaefer
     MWB (Shanghai) Co. Ltd. | Shanghai                                                General Manager
     ' 021 2408-4899                                                                                              Walton HK Group Limited
     *                     Ms. LIU Leqi                                                Hangzhou, Zhejiang
                                                      Representative                                              ' 0571 8735-2720
     Mr. Florian Fritz                                MTU Aero Engines GmbH                                       *
     Shanghai                                         Shanghai Representative Office | Shanghai         
     ' 021 6173-2388                                  ' 021 5027-3522
     * florian.fritz@                                 *                                         Mr. Frank Schmitt                                                            Technical Director
                                                                                                                  BOA (Shanghai) Bellows Technology Co. Ltd.
     Dr. GONG Li                                      Ms. Canyue Mäck                                             Shanghai
     General Manager                                  General Manager                                             ' 021 5818-7112
     SUSS MicroTec (Shanghai) Co. Ltd.                Miji Electronics and Appliances                             *
     Shanghai                                         (Shanghai) Ltd.                                   
     ' 021 5234-0432 ext. 102                         Shanghai
     *                              ' 021 5169-2010                                             Mr. Gerhard Seizer                                     *                                          Shanghai
                                                                                         ' 021 5228-8112

22   April - May 2011

*                                                                            ' 021 6137-6091                            Mr. Reiner Waffenschmidt                            *
                                             Chief Representative                      
Dr. SHANG Erbing                             Lenord, Bauer & Co. GmbH
CEO / Managing Director China                Obrehausen                                          Mrs. Stefanie Xia-Bramekamp
SAERTEX reinforcements China Co. Ltd.        ' 0049 208-9963-0                                   HR Director
Taicang, Jiangsu                             *                                    Lenze Drive Systems (Shanghai) Co. Ltd.
' 0512 3333-7770                                                          Shanghai
*                                                                             ' 021 5046-0848                              Mr. WANG Weiguo                                     *
                                             Vice President SLC
Mr. SUN Yuqiang                              Siemens Ltd., China Jiangsu Branch                  Mr. XU Jing
General Manager                              Nanjing, Jiangsu                                    Project Manager
Benteler Automotive (Shanghai) Co. Ltd.      ' 025 8456-0550                                     Armstrong Advanced Flooring (China) Co. Ltd.
shanghai                                     *                             Shanghai
' 021 3976-1088                                                      ' 021 6391-3366
*                                                                        *
                                             Mr. George Wee                            
Ms. TANG Huiqin                              General Manager
Chairman                                     Shanghai Pudong Kerry City                          Mr. YE Weidong
Zhe Jiang Jiyou Leisure Products Co. Ltd.    Properties Co. Ltd. Pudong Kerry Hotel              General Manager
Huzhou, Zhejiang                             Shanghai                                            EMCO Building Technology (Chuzhou) Ltd.
' 0572 290-9316                              ' 021 6169-8888                                     Chuzhou, Anhui
*                    *                         ' 0550 356-7500                                                *
Mr. Vincenzo Tumminelli                      Mr. Nick Winderlich
General Manager                              Head of Jas Projects China                          Mr. ZHANG Yunhua
Shanghai Paul Wurth Metallurgical            JAS Forwarding (China) Co. Ltd.                     Rosenberger Asia Pacific Electronic
Equipment Manufacturer Co. Ltd. | Shanghai   Shanghai                                            Co. Ltd. Shanghai Division |
' 021 6118-6300                              ' 021 5489-6968                                     Shanghai
*          *                           ' 021 5899-5997                                                      *
Mr. De Vuong                                 Mr. Dirk Wortmann
Shanghai                                     Executive Director
' 021 6547-4891                              SimPlan Technology Consulting (Shanghai) Co. Ltd.
*                  Shanghai

                                                                                                                              2011 April - May   23
        BUSINESS FOCUS                             MEMBER NEWS SOUTH & SOUTHWEST CHINA

                                              MEMBER NEWS                                                 Happy Birthday IKA
                                                                                                          Works Guangzhou
          SOUTH & SOUTHwEST CHINA                                                                         All employees of IKA Works Guangzhou
                                                                                                          had a toast on their company’s 10 th
                                                                                                          anniversary on 13 th January 2011. The
                                                                                                          celebrations took place at The Westin
                                                                                                          Guangzhou, where Managing Director
                                                                                                          Mr. Klaus Jacuk gave an inspiring speech
                                                                                                          about the enterprise’s rapid growth
                                                                                                          during the last decade. The manufacturer
                                                                                                          of laboratory and analytical equipment
                                                                                                          f o c u s e s v e r y m u c h o n i t s “ We a re
                                                                                                          Family”-culture. This approach within
                                                                                                          the company is highly recognised and
                                                                                                          appreciated by the employees. Thus,
                                                                                                          the dinner buffet was followed by
                                                                                                          performances from the staff, featuring
                                                                                                          opera, a dancing performance, and
                                                                                                          instrument playing sessions as well as
                                                                                                          a chorus and even a model show. The
                                                                                                          delightful event was topped by the
                                                                                                          announcement of the incentive Plan 2011
                                                                                                          which is aiming to reward outstanding
                                                                                                          employees since 2007. This year, the first
 Managing Director, Mr. Klaus Jacuk reflects on how his company has developed                             prize was a ten-day-vacation in Germany.

Quality Matters Most                                     1st ICCS E-Freight Forum in Shenzhen
Continuous product innovation and strict                 iCCS (international Cargo Centre Shenzhen)
quality management – two reasons to award                successfully organised the 1 st e-Freight
linde (China) as the “2010 Fujian Top Brand              Forum in Shenzhen on 16th February 2011 in
Product”. On 6 th December 2010, Mr. li                  cooperation with SZATA (Shenzhen Aviation
Chuan, Vice Governor of Fujian Province,                 Transportation Association) and the German
handed over the award to linde (China)                   and european union Chamber of Commerce            Top speakers from the industry (left to right): Mr.
                                                                                                           Markus Witte, Head of Technology & innovation,
CeO Mr. CP Quek. Selected among famous                   in South China. 75 participants joined and        lufthansa Cargo; Mr. Oliver neerfeld, Head of
brands in Fujian Province, the manufacturer              learnt about one of the hottest topics in the     Competence Center, Traxon; Mr. li Yang, iATA north
of forklift trucks has long been known for               air cargo industry. The initiative is promoted    Asia iDFS Director; Mr. Dieter Oppel, Managing
                                                                                                           Director, iCCS.
its high reliability in China and around the             by IATA and is one of five “simplifying the
globe. “With this award, we are going to                 business” projects that should replace paper     Airport in mainland China. Guest speakers
work even harder to ensure that we deliver               documents with electronic messages. it is        of the forum included high ranking industry
consistently good quality products and to                already implemented by Beijing and Tianjin       experts and government officials.
remain the top brand in our industry,” said
Mr. CP Quek during the press conference                  Jebsen and TCG Unitech Form Joint Venture in China
held by the Fujian Provincial Government.
                                                         On 15 th February 2011, Jebsen Group and         performance and reliability across the full
                                                         Austrian partner TCG Unitech announced           range of operating conditions, the oil pumps
                                                         the formation of a new joint venture: Jebsen-    help reduce emission and improve engine
                                                         TCG Automotive Systems. The new JV will          life. The production facility has an installed
                                                         manufacture high-performance state-of-the-       capacity of 600,000 pumps per year. it began
                                                         art oil pumps for China’s rapidly growing        serial production in March 2011.
                                                         automotive industry in the new Dalian
                                                         development zone.

                                                         Spanning 1,250m 2, the rMB 20mn plant
                                                         is Jebsen’s second joint venture in Dalian.
                                                         Following the Chinese government’s call
                                                         for auto manufacturers to increase energy
                                                         efficiency and reduce fuel consumption by
                                                         investing in technology upgrades, Jebsen
                                                         is one of the first to bring such advanced
 Mr. CP Quek, CeO of linde (China) received the          manufacturing technology from abroad to
 award from Mr. Li Chuan, Vice Governor of Fujian        China. With advanced composite material           Producing high-performance oil pumps in Dalian: the
 Province (right)                                        and precision components ensuring high            new Jebsen-TCG Automotive Systems Joint Venture

24    April - May 2011

New Arrivals for Wragge & Co’s Guangzhou Office
                                                       Wragge & Co has boosted its capabilities in    matters, specialising in trade mark filing,
                                                       China with a number of new appointments        patent enforcements and claims of unfair
                                                       to its Guangzhou-based team. Legal advisers    competition.
                                                       Mr. leo rong and Ms. edith ruan are both
                                                       Chinese-qualified lawyers. Mr. Rong advises    The team’s latest arrival is Mr. Ben Cooke,
                                                       international companies on corporate and       an english-qualified commercial contracts
                                                       commercial matters and also assists in         lawyer seconded to China from Wragge
                                                       daily managerial-related legal issues such     & Co’s london office. Mr. Cooke will be
                                                       as setting-up, employment and tax. Ms.         working closely with Mr. rong on a full
  New arrival from Wragge’s London office:
  Mr. Ben Cooke.                                       ruan is an expert in intellectual property     range of corporate and commercial matters.

 Expansion Strengthens Oiltanking’s Position                                                          New German Executive Chef in
 18 new product tanks with a total capacity            Bay Oiltanking Petrochemical Public Jetty
 of 59,600m3 - Oiltanking Daya Bay Co. ltd.            Company ltd. (“OTPPJ”) invested rMB            C h e f M a n f re d K n o e p f l e j o i n s C h i n a
 successfully commissioned its newly added             120mn by adding two 5,000dwt berths. The       Hotel, A Marriott Hotel from Marriott
 Phase 2 expansion storage capacity and                very first vessel bound for East China, M.T.   Shanghai Changfeng Park as executive
 received its first vessel at its public jetty in      Jian Xing 32, has now been successfully        Chef. Originally hailing from Germany,
 Daya Bay, China.                                      loaded with 1,500t of Methyl Methacrylate      he is no stranger to Asia and has already
                                                       (MMA). The expansion further strengthens       demonstrated his skills while working for
 The total capacity for chemical products              Oiltanking’s position for the Daya Bay         the Guangzhou Oktoberfest 2010. With a
 now reaches 80,150m3 and is supported by              Petrochemical industrial Park.                 culinary background spanning the globe,
 a total of two vessel berths. Huizhou Daya                                                           Chef Knoepfle has spent time perfecting his
                                                                                                      skills in Asian locations such as Thailand,
                                                                                                      Cambodia and Myanmar. in China, he has
                                                                                                      worked in Beijing, Chengdu, Shenzhen,
                                                                                                      Shanghai and Xi’an.

                                                                                                      With a personal mantra of taking a “guest
                                                                                                      oriented approach” when creating,
                                                                                                      preparing and executing his dishes, Chef
                                                                                                      Knoepfle is excited to be a part of the large-
                                                                                                      scale operation that China Hotel, A Marriott
                                                                                                      Hotel has to offer. Drawing inspiration
                                                                                                      from past work experiences, he is eager to
                                                                                                      showcase the tastes of europe, South east
                                                                                                      Asia, the Middle-east and China to present
  new Tank Farm of Oiltanking Daya Bay near South China Sea                                           the guests with a unique well-rounded
                                                                                                      dining experience.
Best Business Hotel for the 3rd Consecutive Time
                                                                          event was organised
                                                                          by Travel&leisure
                                                                          Magazine, the well
                                                                          noted Chinese-
                                                                          english bilingual
                                                                          magazine in
                                                                          fashion and leisure
                                                                          area in Mainland
                                                                          China, and it’s Golf
                                                                          Magazine. The
                                                                          selection process
                                                                          integrated the views
                                                                          of readers, industry
  Mr. Bertrand Courtois and his team with “The Best Business Hotel” award experts, magazine
                                                                          editors, and third-
Sofitel Wanda Chengdu has been awarded party experience and can be described as fair
the “The Best Business Hotel” by the and objective. The winners are all live up to
Travel&leisure Magazine for the 3 rd their names and Sofitel Wanda Chengdu is
consecutive time. The 2010 Annual Travel very pleased to be able to continue to deliver
Awards & 9th Anniversary Celebration was reliable services to its business travelers.                  Chef Knoepfle brings new tastes to Guangzhou
held on 20 th January 2011 in Beijing. The

                                                                                                                                 2011 April - May       25

Fitness in Guangzhou Has a New Address                                            Balluff Expands Production Capacities in Asia
Get fit in the newly opened personal training studio by Personal
Trainer & Strength Coach, Mr. Sascha Telen, the only trainer in
Mainland China with a Level 2 Certification in kettlebell training by
the iKFF (international Kettlebell & Fitness Federation). The 100m2
former office was transformed into an ideal workout area, giving
space for his mostly international clients and some future kids
training. His functional training approach aims to improve one’s
strength and conditioning in a holistic healthy way. The gym features
advanced training equipment such as Kettlebells, TrX Suspension
Training, power rack, and much more. Mr. Sascha Telen has been
operating as a personal trainer in Guangzhou for five years as well
as providing corporate wellness coaching to international companies                Conquering the Asian market from west China: Balluff production in Chengdu
in the Pearl river Delta. His new studio is located in room 807,
Xiang Long Tower, Xiang Long Garden, No. 177 Tianhe North Road,                   The global sensor specialist and connectivity provider Balluff
Guangzhou.                                                                        from neuhausen a. d. Fildern expanded its presence significantly
                                                                                  in Asia at the beginning of 2011. The capacities of the production
                                                                                  plant in Chengdu, China, which was newly built in 2004, have been
                                                                                  enhanced. in addition to inductive and electromechanical sensors,
                                                                                  displacement transducers are now also manufactured there. The
                                                                                  capital city of the Chinese province Sichuan is thus becoming the
                                                                                  company's most important production location for conquering the
                                                                                  Asian and Chinese market. Customers are benefiting from shorter
                                                                                  delivery times, optimised logistics and a comprehensive service
                                                                                  directly on site.

                                                                                  Balluff GmbH, which in addition to Chengdu also has six other
                                                                                  modern production sites in Germany, Hungary, Switzerland, Japan
                                                                                  and the uSA, employs 2,200 people worldwide and provides a full
                                                                                  range of high-quality sensors, accessories and application specific
                                                                                  customer solutions for all areas of factory automation.

NEW MEMBERS                                                                         For full contact information and company profiles of our new and existing
                                                                                    members please visit

   Mr. Martin Bannwart                   Mr. John Dorris                           Mr. Jean-Philippe Jacopin                     Mr. Frank Melchert
   General Manager                       Founding Associate                        General Manager                               Director
   Schurter Electronics Shenzhen Ltd.    Sino-Associates Global Ltd. | Shenzhen    Hilton Chongqing | Chongqing                  Fecos Company Limited | Shenzhen
   Shenzhen                              ' 0755 8662-1995                          ' 023 8903-999                                ' 00852 3078-7738
   ' 0755 2994-0066                      *         *                        *
                                         Ms. Daniela Faustino                      Mr. Peter von Jan                             Dr. Siegfried Merz
   Mr. Andreas Barthelt                  Managing Director                         Raylase AG | Germany                          Certified Public Accountant
   Director                              Elka Pieterman Asia Ltd. | Hong Kong      ' 0049 9173-3927-452                          Tax Adviser, Lawyer | Merz Arnold
   Mega Step Technology                  ' 00852 2915-7211                         *                         Wüpper Consulting | Germany
   (Shenzhen) Ltd. | Shenzhen            *                                       ' 0049 6151-3894-0
   ' 0755 8630-7400                                                                                     *
   *                                                           Mr. Axel Knörl                                          Mr. Manfred Fritz                         Managing Director
                                         General Manager                           Bierhaus Shekou | Shenzhen                    Mr. Jens Muenchow
   Mr. Thomas Brosig                     Guangzhou German                          ' 0755 2669-9591                              General Manager
   Partner                               Xiao Machinery Co. Ltd. | Guangzhou       *               Fresenius Kabi (Guangzhou) Co. Ltd.
   DS Avocats | Guangzhou                ' 020 3731-4090                                          Guangzhou
   ' 020 8121-8669                       *                                                             ' 020 8222-3069
   *                                     Mr. Juergen Kracht                            *                                                                    Managing Director                   
                                         Mr. Roland Groeppler                      Fiducia Management Consultants Ltd.
   Mr. Christoph Alexander Cordes        CEO                                       Shenzhen                                      Dr. Martin Sonnek
   Representative                        G&G Engineering Ltd. | Ireland            ' 0755 8329-2303                              General Manager
   Club of Style China Ltd. | Shenzhen   ' 00353 9632-21                           *                   Shenzhen Ou Ya Nike
   ' 0755 2230-1372                      *                              Technologies Co. Ltd. | Shenzhen
   *                                                                    ' 0755 8147-6274                                                             Ms. Melissa Lue                               *
                                         Mr. Thomas Hambloch                       General Manager                     
   Mr. Bertrand Courtois                 OPS-INGERSOLL Machine Tool                Shenzhen Merkle Machinery
   General Manager                       (Shanghai) Co., Ltd. | Shenzhen           Co. Ltd. | Shenzhen                           Mr. George Zhu
   Sofitel Wanda Chengdu                 ' 0755 8639-7538                          ' 0755 8882-7556                              Area Director
   ' 028 6666-9999                       *        *                  Dextrys Co. Ltd. | Guangzhou
   *                                            ' 020 8107-8424                                                                                                               *

26     April - May 2011
Welcome to visit us in the 16th Beijing Essen
Welding & Cutting Fair, from 2011.06.02 to 05
in Shanghai New International Expo Centre,
Hall E3, Booth E3722, Shanghai, China




           手弧焊                                   钨极氩弧焊                          熔化极气体保护焊                         等离子焊
            MMA welding                          TIG welding                     MIG/MAG welding                 PLASMA welding


 The best possible welding results thanks to hightech and maximum quality and reliability
 are the guiding principles in the development and production of our machines.
 Well-known companies from all sectors of industry around the world rely on our products.
 From its location in Kunshan, China, EWM ships welding technology in German state-of-the-art
                                                                                                   伊达高科焊接 (昆山)有限公司
 quality in many di erent growth areas: from the car industry to shipbuilding right through to
                                                                                                   EWM Kunshan, China
 air and space travel. Whether EWM MMA, TIG, MIG/MAG or Plasma technology - always the best
 solutions for your welding tasks.

     EWM HIGHTEC WELDING (Kunshan) Ltd.
     10 Yuanshan Road, Kunshan New & High-Tech Industry Development Zone,
     Kunshan, Jiangsu, 215300 P.R.China
     邮编: 215300
     Phone: +86(0) 512 57867188 · Fax: +86(0)512 57867182                                          伊达高科焊接德国总部 ·
                                                                                                   EWM Mündersbach, Germany
                                                                                                            2011 April - May   27

                                      China’s Five-Year Plans
                                      China’s policy process is not known for surprises; rather, reflecting
                                      the heritage of a command economy and the engineering
                                      background of many senior leaders, the Chinese policy establishment
                                      prefers a predictable and steady regulatory environment conducive
                                      to meeting its long-term development goals. China’s Five-Year Plan
                                      for national economic and Social Development (FYP) is a critically
                                      important tool used by the government to achieve its development
                                      objectives by mapping out in five-year cycles the country’s future
                                      progress via guidelines, policy frameworks, and targets for policy-
                                      makers at all levels of government.

                                      The Twelfth Five-Year Plan
                                      The two-year drafting process for the 12th FYP (2011-2015) is at its
                                      end: on 14th March 2011, nearly 3000 delegates at the 4th Plenary
                                      Session of the 11th national People’s Congress gave the 12th FYP final

                                      The 12 th FYP emphasises the quality, rather than the quantity,
                                      of growth, and ensures that more Chinese citizens benefit from
                                      China’s development. To meet this objective, the 12th FYP focuses
                                      on economic restructuring, social equality, and environmental

                                      Promoting Social Equality
                                      President Hu Jintao and Premier Wen Jiabao have made development
                                      of a “harmonious society” a key priority for their administration,
                                      and the 12th FYP continues their focus on spreading the benefits of
                                      economic growth to a wider community. Key measures in the 12th
                                      FYP to support this goal include income tax reforms, minimum wage
                                      increases, and strengthened social safety nets.

China’s                               Protecting the Environment
                                      The 12th FYP will tackle China’s severe environmental degradation
                                      by including both hard and soft targets for reducing pollution,
                                      increasing energy efficiency and ensuring a stable, and a reliable and

                                      clean energy supply.

                                      Restructuring the Economy
                                      While economic rebalancing has been a government priority for
                                      many years, the sharp decrease in Chinese exports during the
                                      financial crisis, leading to the layoff of millions of factory workers,

                                      underscored the importance for Chinese decision-makers of
                                      moving to a more balanced growth structure. As China looks
                                      inward for growth, key goals for the 12th FYP are to shift the relative
                                      importance of GDP components – from the current reliance on
                                      fixed asset investment (FAI) and exports – to a greater emphasis

                                      on consumption. The 12th FYP will include policies that support a
                                      lower GDP growth rate, consumption-driven growth, upgraded
                                      industries, backing for the government’s indigenous innovation
                                      drive, strengthened “national champions,” and the development of
                                      “Strategic emerging industries” (Seis).

                                      Technology & the 12th Five-Year Plan
what’s in Store for                   Transitioning from “Made in China” to “Designed in China” has
                                      long been a top priority for China’s government, but the country
                                      faces serious hurdles in making that crucial shift: an education

the Next Five Years                   system that rewards rote memorization over creative thinking,
                                      rampant plagiarism and corruption in higher education, top
                                      Chinese minds leaving the country to pursue careers abroad, and
                                      an economy skewed towards low-skilled manufacturing. The 12th
                                      FYP includes provisions to mitigate these problems, including the

28   April - May 2011

further development of China’s intellectual property rights system,                  an aim to increase SEIs' contribution from approximately 5% of GDP
heavy investments in science and technology education and r&D,                       today to 8% by 2015 and 15% by 2020.
and strong support for Seis. As the government is clearly intent that
local companies participate in key technological advances, China’s                   This policy underscores the importance China is attaching to
indigenous innovation drive will continue to play a central role                     developing core technologies as a means of enhancing industry
throughout the 12th FYP.                                                             competitiveness, and the plan outlines preliminary broad measures
                                                                                     to increase technological innovation across all seven Sei sectors.
Indigenous Innovation Reinforced                                                     For the energy efficiency and environmental conservation sector,
China hopes to improve indigenous innovation capabilities in                         for example, the aim is to develop technology for energy-efficient,
technology through the use of several tools, including:                              resource recycling, and advanced environmental products. For new
                                                                                     energy, a focus will be on the application of solar-power technologies.
• research & Development: The government will heavily invest                         For biotechnology, a key component will be the application of core
in science and technology r&D in order to bring about key                            technologies for biological manufacturing and marine biology
breakthroughs in targeted technology subsectors, such as core                        products. The technology-specific SEI, next-generation IT, is focused
electronic devices, integrated circuits, life sciences, space, marine,               on accelerating the creation of next-generation information networks,
earth sciences and nanotechnology.                                                   mobile communication and the internet. The government also plans
• intellectual Property: China plans to continue its efforts to                      to invest in r&D of the "internet of things" and cloud computing,
strengthen iPr creation, use, protection and management,                             and digital and virtual technologies.
particularly through support for companies
that provide those services. This is an area                                                                   in January 2011, the State Council provided a
where there is much room for progress.                       Sector Snapshot: Automobiles                      first look at the policy tools the government
• Administration: The 12 th FYP plans to                     The aim to develop and apply core technology      may use to develop Seis: Several Policies
strengthen fiscal and financial policies                     is certainly not limited to the SEIs. According   to Further encourage the Development of
that support high-tech industry, including                   to the 12th FYP for the Automotive Industry, a    Software and integrated Circuit industries
updating research funding management and                     key aim is to enhance support for R&D in this     (also known as Document 4) refers to both
venture capital investment systems.                          sector so that major Chinese automotive groups    the software and integrated circuit (iC)
• Commercialisation: A key goal - and                        can independently develop product platforms       industries as "strategic emerging industries"
challenge - for China will be to get the                     that are close to leading global standards. The   and contains 31 incentive measures for
research undertaken at government-                           government’s goal is for Chinese brands to        these industries’ development, including
s p o n s o re d u n i v e r s i t i e s a n d re s e a rc h control more than 10% of the domestic export      preferential tax rates, central government
institutions to the marketplace. The                         market by 2015.                                   investment plans, increased r&D funding
government hopes that both large enterprises                                                                   channels, and stronger iPr protection.
and SMes will increase their r&D
investments as well.

“Informatisation” Increased
The 12th FYP will focus on upgrading the technological capabilities
of private and public services, including “triple play” services
(the convergence of telecom, broadcasting and internet networks),
e-commerce, and e-government and statistics systems.

Education Sees Heavy Investment
The 12th FYP stresses the need for higher education reform in science
and technology, as well as the importance of developing a human
resources strategy for finding and nurturing talent. initiatives
include improving scientific achievement evaluations and rewards
system, encouraging even more highly-educated overseas Chinese
to return to China to work and increasing investments in human

Strategic Emerging Industries Heavily Supported
no longer content with being considered the “world’s factory,”
Chinese planners have included several preferential tax, fiscal and
procurement policies designed to develop seven “Strategic emerging
industries” (Seis). The planners hope these industries will become
the backbone of China’s economy in the decades ahead, and they
have chosen sectors where Chinese corporations are expected to
succeed on a global scale.

The seven industries are biotechnology, new energy, high-end
equipment manufacturing, energy efficiency and environmental
conservation, clean-energy vehicles, new materials, and next-
generation iT. The government is reportedly prepared to spend up
to rMB 100bn on these industries during the 12th FYP period, with

                                                                                                                                     2011 April - May   29
       BUSINESS FOCUS                      COVER STORY

While Document 4 is limited to two specific sectors, it offers a good
indication of how other Sei industries may be treated moving

Implications for Foreign Technology
Companies                                                                 The 12th Five-Year Plan Sketches New
SEIs present both opportunities and challenges
The government’s plan to increase SEIs' share of GDP by government        Energy and Environmental Technology
investment and fiat should yield significant opportunities for foreign
technology companies due to the incentives that will be created for
private investment. However, given China’s current drive to develop
its indigenous innovation capabilities, these preferential policies
may be biased toward domestic firms. This could be additionally
problematic if the government decides to use its government
procurement market to develop these industries, given its earlier
pledge to develop a national procurement list that favors domestic
companies. Foreign firms must also be aware of the government’s
proclivity to “re-innovate” foreign technology. either way, foreign
businesses should monitor China’s Sei policy closely and look for
opportunities to inject comment and input into its development.
Foreign firms may also consider the use of partnerships with local        The preceding 11th FYP having marked the transition toward a more
companies to better access the significant funding opportunities          gentle and sustainable development of the economic and social system,
available.                                                                the 12th FYP focuses on inclusive growth quality rather than exclusive
                                                                          growth quantity. Centering on economic restructuring and social
Changes to the business environment                                       rebalancing, the 12th FYP also assigns environmental protection and
if the 12th FYP objectives are fully implemented, foreign business can    conservation a momentous prominence.
expect costs to both rise and fall. For companies in the technology
sector, increased costs could result from proposed minimum wage           A New Cycle
hikes, pension and healthcare reform, and value-added tax hikes.
However, there are benefits to foreign business embedded is this          The priorities that were defined for industrial policies in the upcoming
plan, as well. Foreign companies can expect the government to             five years substantially differentiate from past strategies. Setting the
further develop its talent recruitment through education reform and       foundation for the overall economic aim of global expansion, they
strengthening the country’s iP regime.                                    represent an unprecedented political directive for the prospective
                                                                          development of the country and facilitate a new, environmentally
A more complex operating environment                                      friendly course of economic action. The “green development” baseline
Proposed reforms in the 12 th FYP will introduce additional               for the next five years undoubtedly signals a comprehensive green
stakeholders into various industries. Foreign business should             modernisation of China ahead. The crucial motor to continuing and
continue to update their understanding of relevant stakeholders           developing economic growth and maintaining a stable and strong world
emerging as a result of the 12th FYP, the development of Sei and          ranking is a consistent assurance of the energy sources backing the
other reforms, and begin developing targeted engagement strategies.       world’s second largest economy. Consistently, the 12th FYP addresses
The plan will also likely introduce a host of new regulations. A clear    the core areas energy efficiency, renewable energy as well as hi-tech and
understanding of the changes in China’s regulatory environment as         new materials. One focal subject is the improvement and advancement
a result of these developments, coupled with robust relationships         of energy efficiency, considering China’s still significantly low energy
with key institutions and actors involved in its execution, will enable   utilisation ratio - one fourth - to the developed nations.
foreign business to better monitor potential issues and effectively
inject their views into the policy process.                               Three of the seven key Strategic emerging industries (Seis) anchored in
                                                                          the 12th FYP are devoted to the sectors energy and environment:
Seeking assistance from foreign businesses                                • New Energies: Development and advancement of nuclear energy as
The implementation of the 12 th FYP objective to increase                 well as the renewable energies water, wind and solar
technological capabilities in a wide range of sectors will have Chinese   • Energy Efficiency: Waste recycling and recycling based economy as
regulators welcoming advice and training from experienced foreign         well as clean coal technologies and coal production emissions reduction
companies, offering an opportunity to help guide implementation.          • Electromobility: Battery cell technology and a production target of 1mn
This assistance could range from informal consultations to more           electrically powered vehicles by 2015.
formal programs including foreign-established r&D bases in China.
                                                                          During the policy period of the 11th FYP, the government was able
                                                                          to generate additional financial activity totaling rMB 2bn through
  Mr. Roger Somerville is Director at APCO Worldwide, a                   investments in energy efficiency and environmental protection, and this
  communications and public affairs consultancy with a presence           new term aims to trigger the flow of an additional rMB 3bn into the
  throughout Greater China (Beijing, Shanghai, Guangzhou, and             environmental industry. The 12th FYP pronounces China’s intention to
  Hong Kong), as well as over 25 other global cities. For more            reach its ambitious energy efficiency targets by means of investments
                                                                          in production engineering and facilities, and the anticipated growth
  information please contact him at:
                                                                          of between 15 and 20% offers spacious potential for international
                                                                          cooperation. The declared investment volume of rMB 4bn allocated to

30    April - May 2011

led Prospects
Green Business Environment for German
in China
    energy conservation and emissions reduction technology alone in the         fuel supply, and the next decades will be demanding our preparation
    five years to come offer a broad scope of action.                           for their substitution. The coal sector is subjected to a consolidation
                                                                                period with a planned cut to half of the currently over 10,000 affected
                                                                                companies, and the PrC is tending toward a state monopoly of less than
    The German Advantage                                                        a dozen enterprises to solely bolster up to two thirds of the nation’s total
    This new set of environmental goals also opens up doors of opportunity      coal production. With a concurrent shift in the national power plant
    specifically to the German economy with its export-oriented outlook         structure, China stipulates a primary non-fossil energy supply quota of
    and solid know-how foundation. The Hi-tech and environmental                11.4% by 2015 and 15% with the conclusion of the successive 13th FYP.
    domain in general and the Clean Energy and Energy Efficiency sectors
    in particular provide a continued attractive market segment for German      Alongside the quantitatively rather ‘insignificant’ renewable energies,
    technologies, services and goods. numerous high-ranking federal             hydro and most notably nuclear power will play dominant roles in
    and central government-level business delegations travelling between        the energy transformation process. The projected changes in energy
    China and Germany last year laid a sound groundwork from which              production are the increase
    to build and expand on now. Their established tradition and good            • of hydropower by 30% (from 7 to 9% of the total energy mix)
    reputation in the Chinese environmental technology market will remain       • of nuclear energy by 100% (from 1 to 2% of the total energy mix), and
    an excellent vantage point for German engagements, last but not least       • of wind, solar and bio energy by 150% (from 0,8 to 2% of the total
    since intensified avoidance strategies and their corresponding hi-tech      energy mix)
    solutions are gaining in on the demand for conventional end-Of-Pipe
                                                                                Empowering Geography
                                                                                The switchover of the power plant structure from fossil to renewable is
    Easing the Black Burden                                                     only one side of the green coin – as other countries including Germany,
    The 12th FYP sketches out the greatly needed resolute “greenprint” for      China needs an efficient supply chain from the production site to
    clean and renewable energies. The new green direction contributes           the consumer hubs in the industries and in the cities. The State Grid
    not only to dampening emission numbers today in order to fulfill the        Cooperation of China (SGCC), established nearly ten years ago as a
    pledge of a CO2 consumption reduction of the 2005 numbers by 40-45%         domestic and global flagship state-owned power enterprise, operates
    per GDP unit in the following decade and a 17% reduction by 2015, but       the bulk of the nation’s power distribution within its network of five
    also to achieving increased energy efficiency rates tomorrow. One of the    regional subsidiaries. This new five-year cycle will generate a powerful
    major parameters of the current environmental situation in China is the     upgrade of the state grid – placed high on the government’s priority
    nation’s unchanged dependence on the conventional energy source coal        list with a rMB 17bn investment. And there are even higher aims: a
    with a consumption of 70%. its production and subsequent electricity        reach for China’s tangible sky with the construction of a “super grid”
    conversion are weighed as the most energy-intensive manufacturing           comprising an investment volume of over USD 500bn by the SGCC. But
    industries. The mining industry in general – from the extraction itself     even if the 12th FYP encourages stronger than ever the decentralization
    causing extensive land degradation to the emission-heavy logistics          of energy solutions in a country featuring vast potential for solar power
    within the coal plants – is a steadfast crux to the enforcement and         in the desert regions to the north and northwest and wind power in the
    implementation of environmental laws. even if the coming five years         east and southeast, the country also features vast geographic dimensions
    will still not see China’s coal consumption ebbing off on grounds of        challenging the logistics of supply and allocation. To prevent or even
    mined-out deposits – this country, too, does not have an unlimited fossil   eliminate the occurrences of power grid overloads and safeguard

                                                                                                                                  2011 April - May    31
         BUSINESS FOCUS                                       COVER STORY

                                                                               Hale and H
                                                  the provision to
 “There is reason for both continued optimism and concern in the
                                                  outlying developing
 developments around industrial policy in China. A great focus
                                                  regions, the country
 is placed on what many view as an IP-challenged environment
 or domestic protectionist measures, but there should also be
                                                  w i l l p ro m o t e t h e
 a view to new opportunity, particularly when considerable
                                                  establishment and
 state-funded spending will go into spurring advancement in
 the commercialisation of science and technology. Increased
                                                  inclusion of micro
 cooperation is imperative to receiving access to state funding,
                                                  grids as well as
                                                                               Examining the well-Being of the Chines
 and companies will need to carefully weigh the pros and cons
 of expertise and technology transfers if their core business
                                                  smaller stand-alone
 offerings are involved. But for those who can develop new
                                                  energy generating
 business complimentary to their existing competencies, a
 significant upside exists.”
                                                  systems on wind,             China, as many countries in the world, is facing some major
  Mr. Gregory Gilligan, Managing Director of APCO
  Worldwide Beijing
                                                  solar, or wind hybrid        challenges in regard to population growth, health care and agriculture.
                                                  power basis. The
                                                                               Infectious diseases, aging society and the huge pressure on the eco-
                                                  growing popularity
of and growing political interest in renewable energy sources (reS) is
                                                                               environment from agriculture are just a few examples. Politicians,
generating a new awareness about such low-voltage micro grids as a             Economists and Scientists worldwide are incessantly searching for
sustainable solution for on-site power generation in China’s remote            solutions. In recent years, life sciences and biotechnology have seen
areas.                                                                         important developments in China due to the constant support from
                                                                               national and local governments. Both fields seem to have become a
Building Commitment                                                            top priority for research and development. However, it needs a more
                                                                               detailed analysis on whether China will be able to successfully answer
The third great challenge for Chinas green future is the surging energy        some of the most important questions of our future.
consumption. roughly a third of the general energy consumed by
China’s society is attributed to the building and construction sector; in
the first three quarters of 2010 alone, the industry rose by roughly 24%
compared to the same period in the previous year. At the same time,
the energy efficiency of Chinese buildings still only assumes around
20%, 30% at most, of the european standards. integral weak links to
the energy balance of buildings are low-grade materials, insufficient
external wall, door and window insulation, and the poor construction
and control of heating, ventilation and air conditioning systems. Efficient
technologies are sought after, opening another door to extensive
investment potential in the fields of energy conservation and emissions
reduction. German manufacturers and their suppliers are pooling
into influential lobbies or working groups, and existing associations
include the German Chamber platform econet or the Beijing-based
ETICS Quality Alliance Group for external thermal insulation composite
systems. In a mutual effort to improve energy efficiency in the building
sector, they contribute to the design and development of standardised
quality certifications according to the benchmarks set by the European
and German construction industries. To expedite the reduction of
carbon emissions in the building sector with special attention to new
buildings, the ratification of the new FYP runs parallel to discussions in
government circles on the introduction of a carbon tax by 2013 alongside
the installation of a carbon trade system by 2015.

Seizing The Green Momentum
China’s unrelenting economic growth coupled with the forthcoming
politico-economic emphasis of the 12th Five-Year Plan implies a steady         One example for the increased attention of Chinese authorities for
continuation of demand for the proven know-how of foreign solution             public health and medicine is reflected by the three-year budget: from
providers in the areas of energy and environment. in the face of the           2009 to 2011 it reaches rMB 850bn. Additionally in 2010-11, the World
existing policies and the strong history of cooperation and trust between      Health Organisation (WHO) is supporting the Chinese Ministry of
China and Germany, there is no need for German companies to lower              Health with uSD 5.88mn for 73 public health programmes in more
their sights on this innovation-friendly exchange. Overseas technology         than 20 provinces in mainland China. As part of the national 12th Five-
along with a more open invitation to seize available funding and subsidy       Year Plan the executive meeting of the State Council recently passed
programs also to foreign investors will be an essential driving force to       the implementation plan of the "Major new Medicine Creation" science
ensure China’s aspiring development targets.                                   and technology programme. The financial support ranges from rMB
                                                                               3mn to 25mn for each project, with the goals of promoting indigenous
 Mr. Ingo Schulz is Head of the Department Environmental Technology            innovation of medicines. The strategically relevant emerging industries
 & Services at the GIC German Industry & Commerce (Taicang) Co.                recently named by the Chinese government, which also play an import-
 Ltd. Beijing Branch (AHK Beijing), and in this capacity manages               ant role in the 12th Five-Year Plan, also list the bio industry as the only
 different projects in the fields of energy efficiency, renewable energy,      one among seven industries that are related to life sciences. Bio industry
 waste management and raw materials. For more information, please              includes bio-pharmaceuticals, bio-agriculture, and bio-manufacturing.
 contact Mr. Schulz at *                           it has to be seen how much is spent and how much is achieved in the
                                                                               coming years in these areas.

32      April - May 2011

                                                                                 Scientific Publications
                                                                                 The research output of Chinese authors in terms of scientific publications
                                                                                 has undergone and is still undergoing enormous growth rates. The
                                                                                 numbers of publications in the Science Citation index quadrupled in the
                                                                                 period between 2001 and 2009. life science publications grew above the
                                                                                 Chinese average in the last decade.
 se Life Sciences and Innovation System
                                                                                 While organic chemistry and TCM have an activity level above the
      Biotechnology has already been identified as one of the frontier           worldwide average if scientific publications are taken into account,
      technologies in the national Medium and long-term Science and              areas like biotechnology and pharmaceuticals are slightly below, while
      Technology Development Plan (2006-2020). Five subfields were               medical equipment and especially medicine are far below the world
      specifically prioritised: target identification technology; plant-animal   average. increases in the relative position can be detected in almost all
      species and drug molecular design technology; gene manipulation            areas, but the largest field of medicine shows a rather moderate change.
      and protein engineering technology; stem-cell based human tissue           The shares in worldwide publications in all life science fields still remain
      engineering technology; new generation of industrial biotechnology.        far below the Chinese average.

      looking at the impressive growth numbers and the efforts that are          Patents
      being made in life sciences, one of the most interesting questions is
      where China is standing on the global scale. Does China compete            Again, the absolute numbers of Chinese patent applications have grown
      with the developed nations like in other fields, e.g. material sciences,   very rapidly and this growth has even accelerated recently. Genetics
      and partly information and Communication Technologies (iCT)?               and TCM feature prominently in the patent applications of Chinese
      How innovative is China in the field of life sciences today? This can      inventors to the State Intellectual Property Office (SIPO), while medical
      be analysed thoroughly by looking at different and internationally         equipment and organic chemistry are not among their strengths. The
      comparable indicators. investments in r&D show the input side              Chinese profile is completely different on the international technology
      whereas scientific publications indicate the output of the science         markets. Although some strength in genetics and in TCM are still visible,
      system. Patent applications refer to the application side and also         it becomes even more evident that no comparative advantages exist in
      indicate the output of the technology system. Moreover, trade data         medical equipment, even though this area has been among the most
      reflects the output of the market.                                         dynamic ones in recent years.

                                                                                 The patent activities in biotechnology and pharmaceuticals are not able
      R&D Expenditures                                                           to meet international expectations, but those in organic chemistry almost
      China's expenditure on r&D from government and enterprises
      has increased considerably over the last decade. The absolute
      amount in the year 2007 is more than five times the expenditure of
      1998. Most of this is dedicated to natural sciences and engineering,
      which account for 97-98% of total spending. More than 80% of the
      expenditure targeted engineering activities and about another 9%
      (in 2000) was dedicated to natural sciences. Medical sciences account
      for less than 5%, but increased considerably between 1998 and 2000.
      These data show that investment in life sciences is still rather low,
      especially when compared with other developed countries. Despite
      these rather low inputs on the national scale, the national Science
      Foundation of China (nSFC) has more than tripled its number of
      life sciences projects and it still spends more than one third of its
      funding on projects in this area. A small number (about 2-3%) of
      nSFC projects deals with Traditional Chinese Medicine (TCM).
      This is an area of great hope for China in an international market
      perspective. However, these high hopes cannot yet be backed up
      by empirical data, even though China shows some strength in
      terms of publications and patent filings. it has to be stressed that
      other countries also conduct similar research and have been able to
      transfer their research into patents and products – although they call
      this homoeopathic or alternative medicine rather than TCM.

      Companies spent 13.2% (more than rMB 11.7bn) on medical and
      pharmaceutical products research and another 6.1% on medical
      treatment instruments and meters. it is remarkable that about
      32% of the expenditure of large and medium-sized companies
      on modernising technical equipment was spent on medical and
      pharmaceutical products as well as medical treatment instruments
      and meters. This still leaves some good opportunities for German
      medical and technical equipment manufacturers.

                                                                                                                                   2011 April - May    33
         BUSINESS FOCUS                                       COVER STORY

                                                                                                      materials and 5-6% in medical instruments are still far below what would
  Specialisation profile of SIPO patent applications, 2005-2007                                       be expected from a technology-oriented country of the size of China.

                                                                                                      Trade deficits exist in organic basic materials, in pharmaceuticals and in
                                                                                                      parts of medical equipment, which means that China imports more of
                                                                                                      these goods than it exports. if biotechnology products are considered,
                                                                                                      the picture changes and China achieves a trade surplus, albeit with a
                                                                                                      decreasing trend, as the national demand is growing even faster than the
                                                                                                      supply to international markets. Furthermore, China does not occupy an
                                                                                                      above-average position in the world markets in any of the life sciences or
                                                                                                      adjacent areas.

                                                                                                      The export specialisation profile of China does not show any positive
                                                                                                      values in the life sciences, either in high-tech or in total life sciences
                                                                                                      exports. Figure 3 provides evidence for the strong position of the uS in
                                                                                                      the life sciences and also for some comparative advantages for Germany
  Note: TCM core covers medicinal preparations and selected foodstuffs with ingredients from
                                                                                                      in these fields.
  animals or plants. TCM general covers medicinal preparations with organic ingredients in general.

  Source: EPA – PATSTAT; Fraunhofer ISI calculations.

reach the international average. These findings suggest two effects: On
                                                                                                      The life sciences – that is medicine, biology, biochemistry, biotechnology
the one hand, it seems that activities by foreign invested companies in
                                                                                                      and several other adjacent areas like medical instruments or food
China are focused on certain areas (medical instruments and chemistry).
                                                                                                      and foodstuffs – do not currently feature among China’s strengths.
This is why it is much harder for Chinese inventors to reach a relatively
                                                                                                      Considerable comparative advantages for China can neither be detected
good position in the Chinese technology market. On the other hand,
                                                                                                      concerning scientific publications nor in terms of patents.
these results corroborate once again that the national activities are not yet
internationally competitive in all areas. So far, there are no comparative
                                                                                                      While the Chinese innovation system in general is characterised by
advantages compared to the established industrialised and innovation-
                                                                                                      enormous growth rates on the input side and some respectable successes
oriented countries.
                                                                                                      on the output side, this is not yet true for the life sciences. The major
                                                                                                      challenge for China is the transfer of research, development, and patents
Trade                                                                                                 to industry and markets. The challenges in the field of life sciences are
                                                                                                      even larger as there is not only an enormous gap to overcome. It is a field
China is solely responsible for more than 16% of the world-wide exports
                                                                                                      in which traditional, industrialised countries are actively engaged and
of processed goods. However, the finding from the analysis of scientific
                                                                                                      are continuing to build on their currently very strong relative position.
publications as well as patents, namely that the life sciences are not a
                                                                                                      For China, closing this gap will be even harder to do.
Chinese strength, also holds for international trade. if all the life sciences-
related goods are taken into account, China has the largest shares in sap,
                                                                                                      in the coming 12th Five-Year Plan, the bio industry will see investment
pectin, algae and the like but only accounts for 2.3% of the global trade
                                                                                                      as well as political support, but it remains to be seen how effective this
in medicine and pharmaceuticals, a figure which is even decreasing
                                                                                                      support will change the current situation.
over time. When looking at the high-tech areas only, the situation is

  China's export-import specialisation profile (revealed
  comparative advantage (RCA)), 2006-2008

                                                                                                       Dr. Ulrike Tagscherer and Mr. Rainer Frietsch are both
                                                                                                       researchers at the Fraunhofer Institute for System and Innovation
                                                                                                       Research, Karlsruhe and the Institute of Policy and Management,
                                                                                                       of the Chinese Academy of Sciences, Beijing.
  Source: UN – COMTRADE; Fraunhofer ISI calculations
                                                                                                       This article is based on a report on behalf of the Federal Ministry of
                                                                                                       Education and Research, Germany, that was published as: Frietsch, R.;
even clearer: the world-wide production of pharmaceuticals does not
take place in China and the Chinese world market shares have actually                                  Meng, Y. (2010): Indicator-Based Reporting on the Chinese Innovation
fallen since the mid 1990s. even if it is taken into account that the Chinese                          System 2010 - Life Sciences in China, Discussion Paper "Innovation
exports are dominated by iCT-related goods and that these technologies                                 Systems and Policy Analysis" Nr. 26, Karlsruhe: Fraunhofer ISI. It can
are responsible for the overall huge share of China in world-wide                                      be downloaded at:
trade, the market shares of 5.5% in biotechnology, 7.6% in organic basic                               diskpap_innosysteme_policyanalyse.php.

34      April - May 2011
2011 April - May   35

Taking the “War for Tale
Long gone are the days when an employer could sit back and wait for the candidates to line up outside his office. Nowadays, traditional job advertising must
be supplemented by an online presence. After a slow start, Business Social Networking Sites (BSNS) are gaining traction with scores of professional
communities developing online. More and more users are making connections and sharing information. The question now is, on which BSNS will you meet
your future Chinese senior executives? Here are two communities you’ll want to network your way into. NG

These interviews were edited and condensed.                                                               

    In Numbers: There are 100,000+ users, 12,000+ CEOs, 4,500+                      In Numbers: There are 200,000+ users, 1,000+ professionals
    CTOs, 80,000+ professionals, 1,500+ groups, 2,000+ jobs posted;                 groups, 2,000+ jobs posted, 3,000+ events posted and 4,000+
    98% of users have college degrees; 93% of users are China-based; 7%             documents shared; 90% of users come from tier-one cities; 90% of users
    of users are from international locations.                                      are between 25-45 years old; 97% of users have college degrees; 65%
    Noteworthy:’s job channel caters to positions with a starting           of users have overseas experience.
    annual salary of RMB 200,000. Users can apply to the first ten jobs for         Noteworthy: allows you to share documents (PDF, PPT,
    free and then must buy Ushi Coins, the site’s virtual currency. The recently    etc.) and to post project proposals (start-ups, investment opportunities, etc.)
    launched event platform has a mobile component that allows users to             and events. The network is available in Chinese only.
    “check-in” at events and communicate with other participants. is
    available in Chinese and English.                                               Interview with Mr. Tong Li, CEO

    Interview with Mr. Dominic Penaloza, CEO                                What kind of community is
                                                                           is a high-quality invitation-only and virally growing business
    What is’s development focus?                                            network. we are the official business network in several leading university
    Ushi is a private and invitation-only network of professionals and              alumni groups and prominent professional groups, such as Guanghua
    entrepreneurs. It was founded by 100 Charter Members who are all                Management School, China Entrepreneur and the China western-Return
    successful business leaders in China, including XING founding member            Scholar.
    Daniel wild. Ushi basically helps users accelerate their connections with
    its networking platform. Instead of going to one business dinner after the      What do Chinese users want from
    other to find the right contact, Ushi will help users get to dinner with the    They want to maintain a professional network, and they want to use
    right person sooner.                                                            this professional network to accomplish something – be that to find new
                                                                                    friends, new opportunities or new jobs. Number one, they establish and
    What is the difference between online networking in                             maintain a professional online presence. Number two, they exchange
    the West and in China?                                                          professional ideas, questions, business inquiries, partnerships and job
    I think there are two main differences. The first is in agressivity – Chinese   postings. Number three, the site is also social, in the sense that people
    users are more agressive in making connections. They want to connect            will share photos and travel experience with their friends.
    with everyone in every field, even if there’s no immediate purpose. The
    second difference is that Chinese users have a certain bias. They prefer        What is the difference between online networking in the
    to do business with people who are directly referred to them. That’s            West and in China?
    where Ushi’s extended network becomes very useful.                              There are many user behaviour differences. For example, westerners tend
                                                                                    to be very direct when they contact other users. They will say: “Here is
    What is your advice to users who want to make                                   what I have, here is who I am, here is what I want – can you help me
    connections on                                                         or not?” Chinese users tend to be vague. They will say: “I want to get
    I’d recommend they use the group section. There are over 1,400                  connected with you, and maybe something will happen.” You don’t
    groups in all fields and industries. Through these groups they can              really know what the purpose is at first, but let me tell you there will be a
    connect with industry people and with users they didn’t know they               purpose.
    needed to connect with.
                                                                                    What is your advice to companies who post job
    What is your advice to companies who post job                                   advertisements on
    advertisements on                                                      First, I recommend filling out as much information as you can when post-
    One great advantage of advertising job openings on Ushi is that you             ing an advertisement. Jobs being posted online tend to be mid-level man-
    can easily perform reference checks on applicants without relying               agement positions or professional positions that require work experience.
    on the references provided by the candidate. Reference checks are               Candidates either already have a job or are very picky about what they
    important in China, because it’s common for people to exagerate their           are going to do next. Providing as much information as possible about
    work experiences on their resumes. Using Ushi, you can check if you             the company and the position will help candidates understand and know
    have any mutual connections and get in touch with them to find out              more about the company and the position. Second, I recommend man-
    more about your applicant. If you don’t have mutual connections, you            aging the job functionality that will go into the system. users
    can search for users who worked in the same company in the same                 normally have very detailed profiles, keywords, and professional interests
    timeframe and get in touch with them.                                           and the system can match job offers with potential candidates.

36      April - May 2011

ent” Online
                                                                                                                       Consider this.
                                                                                                                       There are 457mn Chinese “netizens”.
                                                                                                                       235.05mn use Social Networking Sites (SNS).
                                                                                                                       66.2% of netizens use mobile phones to
                                                                                                                       access the internet, and 36.6% mobile internet
   Is a BSNS just another out-of-date directory of names and addresses? If that’s how you treat it, then               users log onto SNS. All these numbers keep
   that’s what it is. But if you take initiative and reach out to other users, this may be your low-cost               growing. You want to reach local Chinese
   gateway to high-quality candidates.                                                                                 talent? You need to log on and go mobile.

                                                                                                                       Figures according to the 27th Statistical Report on Internet
   Develop a Social Media Strategy. Before                  gets the word out like a viral campaign.
                                                                                                                       Development in China published in January 2011 by the
   jumping on the BSNS bandwagon, companies need
                                                                                                                       China Internet Network Information Centre (CNNIC).
   to have a plan. Questions you should be asking           Set privacy settings. Most BSNS allow you
   include: What are my company’s needs? Who and            to control what people see on your profile and what
   what is going to be represented on the company’s         they can post onto your profile. Don’t let your set-
   profile page?                                            tings turn your page into a blank slate, but don’t let   afraid to ask for introductions. The more interesting
                                                            embarrassing posts through either.                       people you know, the more interesting people you
   Pick the Right BSNS. The internet is bound-                                                                       will meet.
   less, but don’t spread yourself thin. Invest your time   Time to network. Keep in mind: BSNS are not
   wisely and concentrate on one or two BSNS. You           about advertising and selling. They’re about engag-      Join groups. Good candidates are likely to be
   should ask yourself: Who are we trying to reach          ing with other users. Forget the sales pitches, forget   part of industry-related or professional groups. Go to
   and where are they congregating? Go find your            the canned PR speeches. Instead, start conversations     the source and interact with members who may be
   candidates where they already are.                       with users.                                              the candidates you’ve been looking for – or might
                                                                                                                     introduce you to who you’re looking for.
   Create an Attractive Profile. The profile is             Don’t be shy. Comment on other users’ content,
   a window into your company – it’s your platform to       ask questions on your own wall, post interesting links   Use advanced searches. Most BSNS allow
   communicate information and to build relationships       on industry topics, and post relevant events. With       you to customise your searches. Find the perfect
   with users.                                              so many distractions online, you need to give users      employee by refining criteria in education, industry,
                                                            something to follow. The more followers you have,        interests, etc.
   When creating your company profile, DO:                  the more reach your posts have.
                                                                                                                     Update your status message. Maximise
   Show personality. The goal is to create a                Find your dream employees. BSNS are                      the reach of your search by announcing it to your
   bond with visiting users. Take it easy on the cor-       low-cost gateways to high-quality candidates. They       network. A simple update can get you connected
   porate tone and include personal or unexpected           even put potential candidates who aren’t actively        with professionals you might never have met other-
   information that makes your page more personable.        looking for a job onto your radar. Moreover, you         wise.
   Nowadays, employees want to find meaning in their        can empower your employees to announce the
   jobs, so show them you’re more than a corporate          opening through their own profiles.                      Go mobile. Staying on top of your network
   machine.                                                                                                          doesn’t have to be time-consuming. Save time by
                                                            Here are some tips to get you started in your search:    checking network updates during downtime, like
   Share photos and videos. Multimedia adds                                                                          when you’re waiting for appointments or travelling.
   liveliness to your profile and gives a different per-    Build connections. You never know where                  Your future employees are using mobile phones to
   spective on your company. TIP: Make sure photos          you’ll find your next star employee. Build relation-     browse the internet – that means you need to make
   and videos can easily be shared by users. Nothing        ships with people of all backgrounds and don’t be        sure you’re using mobile-friendly BSNS.

                                                                                                                                                    2011 April - May          37

38   April - May 2011
2011 April - May   39
       BUSINESS FOCUS                        NORTH CHINA

                                                                                                        city and the fact that once upon a time, the entire
                                                                                                        country’s eyes were on Xi'an as the residence
                                                                                                        of over 200 emperors. The locals cherish their
                                                                                                        traditions: “it has been this way since the
                                                                                                        early beginnings, so why should anything be

                                                                                                        changed now? “ Foreign idea(l)s and standards
                                                                                                        are only slowly adapted in business and in life.
                                                                                                        The same applies to the interpretation of laws
                                                                                                        by the government, though one rule applies for
                                                                                                        sure: the bigger the company, the more instant

                                                                                                        the solutions. Infineon for example was able to
                                                                                                        establish its company within a few days.

                                                                                                        To cater to the new demographic of buying
                                                                                                        power and the growing demand for high

                                                                                                        quality foreign products especially from
                                                                                                        Germany, the city developed the entirely new
                                                                                                        district Quqiang featuring hotels, conference
                                                                                                        centers and entertainment facilities in addition
                                                                                                        to the normal city-wide offers.

 Xi’an Bets On Its Modern Force                                                                         Xi'an is a city of antagonism: old and set
                                                                                                        traditions meet metropolitan lifestyle. Modern
                                                                                                        skyscrapers stand next to small villages similar
Xi'an instantly conjures up the image of a         employees work at the facility in the areas          to Beijing’s hutongs. But Xi'an is, in contrast to
proud ancient terracotta warrior in front of       of semiconductor equipment, solar energy,            Shanghai or Beijing, still original and calm –
most peoples’ inner eye. But there must be         training, software and procurement operations.       neither as anonymous and hectic as Shanghai
more to the city than its historic grandeur:                                                            nor as vast as Beijing.
why else would world-renowned companies            Xi'an is one of four aviation centres in China.
as Honeywell, Pratt & Whitney, BOSCH               Yanliang to the northwest houses China's             The local cuisine makes Xi’an interesting
uAeS (China's most successful joint-venture        only national level aviation zone, the CiAB,         especially to Germans: potatoes are widely
according to their own information), German        with projects as the first China-made regional       grown in the north of the province and are
Micron, Heidelberger Zement, Siemens               aircraft Modem Ark (MA) 600. Yanliang is             consequentially a staple ingredient to local
Signaling Company ltd., Micron, infineon           poised to play a key role in the development of      dishes. Secondly, no other place in China
and many more settle down in Xi'an in this         the domestic jumbo aircraft project.                 produces so many different kinds of bread.
millennium? BOSCH rexroth even relocated
to Xi'an from its original production site in      These industries call for qualified employees,       Once a month, a German-speaking Stammtisch
Shenzhen.                                          but unlike the east coast, where enterprises         invites to exchange matters of daily life and
                                                   are poaching skilled engineers, there is no          business while enjoying a beer together.
Xi'an entices potential investors with             bottleneck here (yet). The city will be reaching     Another more international platform is the
arguments as cheap land and low labour costs,      10mn inhabitants soon, which will have direct        Xi'an international Business Forum that offers
but this can’t possibly be enough to convince      consequences for the status of the city within       periodic events and activities.
a global player to invest here. Of course, Xi'an   China and probably impact the financial
has so much more to offer, and is without a        support by the government, too. More than            To sum it all up: for German investors in the
doubt a place to bear in mind.                     100 national and private universities and            right industries, Xi'an is a very attractive site
                                                   colleges are releasing around 30,000 graduates       offering advantages and opportunities. The
Due to its geographic location, Xi'an is not a     onto the labour market each year – of course         (Terracotta) Warriors are just waking up. it
suitable investment place for every industry.      still without relevant working experience, but       is up to you to decide whether to participate
enterprises wanting to export their products       several cooperation projects between local           or not – whether to arrive in Xi'an to a bottle
might find similar places closer to the coast      enterprises and universities already exist to        of local ‘Hans’ beer and immediately think:
and the sea ports more attractive. Hence, Xi'an    better prepare the students for their future jobs.   “Home, sweet home!”
has been focusing on software development,
r&D, and in recent years also more strongly        The Xi'an international Airport with the
on the solar energy industry. Three national       German Fraport AG as a 24,5% shareholder is            Jehnichen Consulting Ltd. is a professional
level developmental zones provide the right        expanding. The airport aims at a total capacity
                                                                                                          internationally oriented business consulting
environment and infrastructure for settling        of about 31mn passengers per year once the
                                                                                                          company based in Xi’an. Comprehensive
down. Furthermore, there are rich resources of     new Terminal 3 is ready by March 2012, and
natural oil and gas about 500km to the north of    there are plans to establish non-stop flights to       experience and a strong network of
Xi'an.                                             destinations in europe.                                established business experts have been an
                                                                                                          integral part of our operations since 2006.
More than five years ago, Applied Materials        At a par with any other city in China, the Xi’an       Jehnichen offers a wide spectrum of one-stop
began the construction of a state-of-the-art       traffic is one big jam, and local driving has its      services also in cooperation with external
research and development facility in Xi'an         very own typical traits that even differ from          specialists. For more information, please visit:
– a strategic step that attracted numerous         the driving styles in other parts of the country.
semiconductor companies. now, over 300             Maybe this is rooted in the long history of the

40    April - May 2011
  Empty Chair?
Find the right fit.

                  2011 April - May   41
       BUSINESS FOCUS                       EAST CHINA

Located in Jiangsu province at the estuary
of the river, Nantong is the first window
on the Yangtze River. A busy river port, it
borders Yancheng to the north, Taizhou
to the west, Suzhou and Shanghai to the
south and the East China Sea to the east.
As a prefecture-level city, Nantong boasts
a population of almost eight million over
an area of 8,001km2.

In recent years, Nantong has received
much domestic and foreign investment.
The city’s GDP grew by 14% in 2009,
reaching RMB 287.2bn. The area is
already home to more than 50 of the
world’s top 500 companies, but officials
hope to attract more companies under
the 12th Five-Year Plan.

Five-Year Plan to Stimulate Growth                commute between Shanghai and nantong               port houses the second largest distribution
                                                  from a four hour ferry ride to a one hour          centre for bulk cargo down-stream. it is also
The nantong economic and Technological            drive. This bridge increased the jurisdiction’s    the largest sulphur feeder port in the nation
Development Zone is set to undergo major          role in the Yangtze river Delta economic           and the largest hub port for iron ore trans-
development over the next five years              zone and helped bring development to the           shipment along the Yangtze river. nantong
to increase its economic and innovation           poorer northern Jiangsu regions. Moreover,         Port provides easy access to the Yangtze
strengths and international competitiveness.      the bridge is a 21st century engineering feat.     region by road and waterway which is an
The local government is interested to             Standing at 1088m, it is the world’s longest       ideal hub port for cargo trans-shipment. in
develop modern service industries, such as        cable-stayed bridge. The bridge’s cables are       2009, nantong Port had reached over 100mn
logistics, scientific consultation, information   also made of a new kind of zinc-galvanised-        tons annual throughput for the fourth
and finances. it will focus on building           steel strand, reducing their diametre and          consecutive year. Annual cargo throughput
optical-electronics, biomedical, innovation,      cutting wind drag. And that’s not all. Sutong      of Nantong Port Group recorded 55mn
and service industry parks. Meanwhile,            also has the deepest foundation of any cable-      tons in 2009, representing 2% year-on-year
traditional industries such as textiles,          stayed bridge, going as deep as 120m, and          growth.
clothing and fine chemicals will be upgraded      the highest concrete and steel bridge towers
and veered towards high-end development.          standing at 300m.                                  The China national Offshore Oil
                                                                                                     Corporation (CnOOC), the country’s
Part of nantong’s ambitious makeover              Nantong Port and Offshore Rigs                     leading offshore oil and gas producer, has
plan is to promote scientific innovation                                                             also promised sustained demand for rigs
and research. A special fund to support           As one of China’s category-one national            produced in nantong with its plans to invest
university-business partnerships will be set      ports opened to foreign trade, nantong             up to rMB 200bn on oil and gas exploration
up to encourage inventors. Furthermore, the       Port is a major river port in the Yangtze          in the South China Sea. in September
government expects to spend rMB 200mn to          Delta and an important hub port of the             2010, the Corporation also announced it
develop a technological innovation system         country. it spans over a shoreline of 4.2km        had expanded the handling capacity of its
over the next three years.                        and holds a land mass of 1.5km2 with five          product oil storage in nantong to one milion
                                                  major terminals. They together operate 24          metric tons per year. NG
Record-Breaking Shortcut                          berths, including two berths for vessels
                                                  of 150,000dwt. The main cargoes handled
Since 2008, the completion of the Sutong          are iron ore, minerals, cement, steel, coal,
Yangtze river Bridge has reduced the              sulphur, fertilizers, grains and edible oil. The

Nantong: Yangtze’s First Window
City to Revamp Image Under the 12th Five-Year Plan
42    April - May 2011
                                                                                           MEET THE MEMBER      

Tell us a little about your company and activities in China?
Founded in Germany in 1931, the FUCHS Group has grown to be
the largest independent manufacturer of specialty lubricants in the
                                                                              Qingping Zhu
world. recognised internationally for its innovative lubricants and           Company: GERMAN FUCHS GROUP-
industry related specialty products, FuCHS has a global reach with            FUCHS CHINA
manufacturing facilities in over 40 countries.                                Job Title/Position: Chief Executive
FuCHS provides high quality lubricants to a wide range of industries          Year of Foundation: 23
in China since its first entry in 1988. The superior customer service is      HQ (location): Mannheim, Germany
supported by two manufacturing facilities in Shanghai and Yingkou             Main Business: Lubricants
and ten warehouses covering all major economic regions in China.
                                                                              Number of Employees: 301 (China)
From underground mines to makers of complex metal components
including automotive, appliance and aerospace manufacturers, FuCHS            Sales/Revenue: RMB 1.261bn (China)
CHinA has products that can always meet the specialised needs of our          (FY 2010)

What has been your strategy in terms of production and                       it shows exactly what our advantages are by providing services for the
R&D?                                                                         supply of industrial fluids or other chemicals in a specifically designed
Quality is the life of FuCHS. We have been adhering to the high-tech         system to meet the needs of each individual customer. FuCHS is one
line, focusing on the development of new, specialised and customer-          of the biggest service providers for comprehensive and professional
specific lubricants with leading technology. Moreover, FUCHS CHINA           service packages which include management of the total process, cutting
established a new Asia-Pacific r&D centre in Shanghai. With the              production cost, optimising resource allocation with focus on core
increased investment and r&D ability improvement, there are more than        business.
70 projects launched annually to localise the technological superiority of
FUCHS Group in order to provide clients with the most fitting lubricants     What are your aims and hopes for the future?
solutions.                                                                   FUCHS Group committed to be the number one independent lubricant
                                                                             company in the world, and today we are already the market leader
What kind of benefits can companies using your services in                   for specialty lubricants in China. Our goal for the future is to provide
China expect?                                                                premium lubricants and high quality services in the aftermarket. We
Most clients of FuCHS enjoy, next to high performance products,              will focus on research and development, and inherit the cutting edge
adequate and systematic service that comes in form of technical support.     technology from the German headquarter to pursue our sustainable
One of our defined services is CPM - Chemical Process Management.            development.

                                                                                                                             2011 April - May    43
       BUSINESS FOCUS                       SOUTH CHINA

30 Year Time Lapse:
Shenzhen’s Economic Transformation
Since its announcement as China’s first Special   with the tertiary sector (services) only contribu-
economic Zone (SeZ) in 1980, Shenzhen has         ting a very small amount. Today, according to
undergone various phases of economic devel-       official sources in terms of GDP growth, the
opment in extremely fast motion. Within 30        tertiary sector has surpassed the secondary
years, the metropolis miraculously achieved       sector in 2009 with percentages of 53.2% and
what western cities usually took a couple of      46.7% respectively. Moreover the development
hundred years. Besides its development from       of wages further influences this development.
a small fishing village to a 10mn megacity,       Shenzhen’s minimum wages gradually went               Shenzhen today is a modern metropolis and high-tech export hub.
the pace of economic transformation is truly      up over the years, reaching one of the highest
breathtaking.                                     levels in all of China, and consequently making
                                                  low cost production more and more unattrac-
The economic reforms implemented by the           tive. Hence, labour intensive businesses are
central government did not only allow foreign     shifting their manufacturing grounds to other
investment but actively attracted it through      regions of China predominantly to the western
providing preferential policies. Shenzhen’s       provinces or less developed areas in South Chi-
proximity to Hong Kong, tax exemptions and        na as well as other regions of Southeast Asia.
reductions, low rental costs and the abundance    This is not only because of relatively cheap
of cheap labour was the perfect combination.      labour costs but also due to more attractive
After just a couple of years, the SeZ had be-     property prices. The current focus of the gov-
come a major manufacturing hub, first through     ernment and the plans for the future develop-         From a small fishing village to a 10mn mega-city:
investments from Hong Kong companies.             ment is on seven strategic emerging industries,       Shenzhen’s urban development at breathtaking speed.
later, more and more companies from the rest      namely biotechnology, alternative energy, new
of the world chose Shenzhen as a location for     generation information technology, high-end
manufacturing. Consequently, it expanded its      equipment manufacturing, advanced materi-
position as an export oriented economy. Today,    als, energy-saving, environment protection and
Shenzhen is the biggest exporting hub in China    alternative fuel cars. The efforts in the emerg-
with exports worth uSD 204bn in 2010, rank-       ing industries have already been bearing fruits
ing first for already eight consecutive years.    with BYD and Daimler signing a cooperation
                                                  contract to co-develop an electric energy car
However, in recent years the economic struc-      in Shenzhen. next to the strategic emerging
ture has shifted from low-end productions,        industries the main focus of the future devel-
like manufacturing of clothes or toys, to more    opment lies in the service sector. Herein, the
sophisticated products. A shift in government     Qianhai area is projected to be a role model for
policies, stricter environmental standards and    southern China.                                       The connection to Hong Kong as a major drive in business:
                                                                                                        the Shenzhen Bay Bridge was opened in 2007
rising costs are the main reasons for these de-
velopments. ZTe did the first move in 1985,       The Qianhai area is an area of 15km2 and is
being the pioneer and one of the first in high-   situated in the western coast of Shenzhen. it is     of the major measures to facilitate trade and
tech manufacturer in Shenzhen. Today, the         scheduled to be developed into a modern ser-         investment is the “Closer economic Partner-
company is the biggest supplier in telecom-       vice industry hub including finance, modern          ship Arrangement” signed in June 2003, which
munication equipment in China. Many more          logistics, information services and science and      for example provides beneficial conditions to
followed shortly after. Huawei, for example an-   technology. The area is scheduled to be finished     financial service companies to conduct busi-
other telecommunication equipment supplier        in 2020 with over uSD 5.9bn to be invested in        nesses on the mainland such as cross-border
was founded in 1988, and recently, the software   Qianhai by the government. Companies in-             rMB trade settlements.
giant Tencent and the major car manufacturer      vesting into the Qianhai area will benefit from
BYD have been founded in Shenzhen. The            preferential conditions such as subsidies and        The possibilities in the service sector in Shen-
numerous homegrown technology giants              tax reductions. As an example, technologically       zhen are vast and will be trend-setting in China
have evolved into global companies strongly       advanced companies will enjoy an income tax          - like many times before. Compared to the
underlining Shenzhen’s entrepreneurial and        of 15% instead of 25%. resulting from those          economic strength of the city, German compa-
technological spirit. With more and more high-    conditions and the geographical proximity and        nies are still relatively underrepresented. This
tech companies settling down in Shenzhen, the     close cooperation, 20 Hong Kong firms already        situation will hopefully change for the best in
export of technology related products reached     signed agreements to invest in the area.             the near future with more German companies
uSD 108.73bn or 53% of exports in 2009.                                                                settling down in one of the most important
                                                  The cooperation between Hong Kong and                economic metropolises of China. Shenzhen is
The composition of the city’s Gross Domestic      Shenzhen is a perfect example of the imple-          no longer a place for labour intensive, low cost
Product (GDP) is another turning point in         mentation of the “one country, two systems”          production as it was designed to be 30 years
the economic transformation of Shenzhen. in       scheme. in recent years facilitations in many        ago. it has become a technologically advanced
the early years, it has been dominated by the     areas, such as logistics and infrastructure, led     and modern city with breathtaking growth po-
secondary sector (industry and construction),     to projects and bilateral investments. One           tentials. CHl

44    April - May 2011
2011 April - May   45

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