Part 1 - AHK Greater China

Transcription

C TICKER
BEIJING | SHANGHAI | SOUTH & SOUTHWEST CHINA
DECEMBER – JanuaRy
6 | 2010
Free Bi-Monthly Newsletter of the
GERMAN CHAMBER OF COMMERCE IN CHINA
EXPo 2010
The German Pavilion
after the Expo
Rare Earth
Christmas
Drastic Curbing for
the Most Precious
Material
The Season of
Caring, Sharing
and Giving
PowER on
Electronics Industry –
Taking the Lead
after the Crisis
y
et
ci
So
ig
H
ig
hl
lls
Ba i
an ha
m g
er n
G ha e
e S su
th nd s is
a i
om g th
fr jin de
os ei si
ot n B in
i
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o
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r!
a
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2010/2011 December - January
1
2
December - January 2010/2011
montfort advertising – klaus | ruggell | chicago | shanghai
Experience. Erfahrung. �� .
Essential for 2010, in any language.
28
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Contact: Oliver Lorenz | T +86 (0)21 5213 6600 - 800
[email protected] | www.montfortshanghai.com
3
C TICKER
Publisher
German Chamber of Commerce in China
Offices and Teams in Mainland China:
GC Ticker Team
Managing Editor (Shanghai)
Editor (Guangzhou)
Design (Shanghai)
Editorial Assistant (Shanghai)
Ms. Selma Koehn
Ms. Heidrun Buss
Ms. Ye Li
Ms. Natalie Gagnon
GCC l Beijing
0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd.
Chaoyang, Beijing 100004
' 010 6539-6688 6 010 6539-6689
* [email protected]
Executive Chamber Manager
N.N.
Chamber Affairs Manager
Ms. Wang Miao 010 6539-6661
[email protected]
Regional Manager North China
Mr. Christoph Fazakas
010 6539-6662
[email protected]
Head of Communications
Mr. Daniel Abel
010 6539-6670
[email protected]
Editor GC Ticker
N.N.
GCC l Shanghai
25F China Fortune Tower, 1568 Century Ave.
Pudong, Shanghai 200122
' 021 5081-2266 6 021 5081-2009
* [email protected]
Ms. Michaela Beck
Ext. 1630 [email protected]
Regional Manager Shanghai
Mr. Jan Höpper
Ext. 1656
[email protected]
Regional Manager Zhejiang & Jiangsu Provinces
Mr. Sebastian Wegener
Ext. 1830
[email protected]
Communications Manager
Ms. Selma Koehn
Ext. 1637
[email protected]
Social Events & Marketing Manager
Mr. Sebastian Zettelmeier
Ext. 1605
[email protected]
Project Manager
Ms. Li Yandi
Ext. 1609
[email protected]
Chamber Team Assistant
Ms. Liu Li
Ext. 1650
[email protected]
GCC l South & Southwest China
2915 Metro Plaza, Tianhe (N) Rd.
Guangzhou 510620
' 020 8755-2353 6 020 8755-1889
* [email protected]
Ms. Heidrun Buss
020 8755-8203
[email protected]
Regional Manager
Mr. Max Zenglein
0755 8635-0487
[email protected]
Chamber Affairs Manager
Ms. Esther Hu
020 8755-2353 ext. 217
[email protected]
Chengdu Liaison Manager
Ms. Astrid Schröter
1340 2857 262
[email protected]
Cover images: dreamstime.com
GC Ticker is free of charge. For subscriptions or extra copies please e-mail your
nearest Chamber office. Previous issues of the magazine can be found on our
website www.china.ahk.de/publications.
©2010. German Chamber of Commerce in China. No part of this publication may
be reproduced without the publisher’s prior permission. While every effort has
been made to ensure accuracy, the publisher is not responsible for any errors.
Views expressed are not necessarily those of GIC/GCC
4
Jan Noether
Managing Director, GCC l Shanghai
Delegation of German Industry & Commerce Shanghai
Chief Representative
Full Steam Ahead
Earlier in October, I was delighted to come aboard the German Chamber of Commerce l Shanghai
team. Shanghai is a vibrant urban hub of opportunities, and as 2010 comes to a close, I am excited to
take on 2011.
The past year has been a busy one in China. On one hand, it will be remembered for its prestigious
international events, such as the World Expo and the 16th Asian Games. Along the way, China is
not the only one to have impressed a few. Collecting the "Golden Award" for its pavilion, Germany
stood out as a role model in environmental technologies and urban development at the World Expo
2010 in Shanghai.
On the other hand, 2010 will also be remembered as a year of change in the business market. In 2011,
the German Chamber and the GC Ticker will continue keeping a close eye on up-to-date industry
topics in order to offer you the platform you need to further your business growth.
This issue of the GC Ticker focuses on the electrical and electronics industry, a sector which has
also been evolving on different fronts. Our articles examine how China is focusing on improving
the eco-efficiency of plants, while also remodelling the legal system to improve quality control and
intellectual property protection. On a lighter note, please also enjoy the special colourful insert on
the German Balls in both Beijing and Shanghai.
As you set course full steam ahead into the New Year, there will be many challenges, but you
are not facing them alone. We at the German Chamber make it our mission to continue to bring
you informative events and networking opportunities to foster a prosperous German business
community in China.
On behalf of the boards and teams of the German Chamber of Commerce in China, I would like to
wish all our members continued success, health and happiness in 2011.
Have a Merry Christmas and a Happy New Year!
Sincerely,
Jan Noether
GCC All-China Board Members
Mr. Ulrich Walker
Mr. Arved von zur Mühlen
Mr. Holger Sindemann
Chairman GCC l Beijing
Chairman & CEO of Daimler
Northeast Asia Ltd.
Chairman GCC l Shanghai
Managing Director Greater China
Lufthansa German Airlines
Chairman GCC l South & Southwest China
President & CEO
MTU Maintenance Zhuhai Co. Ltd.
Ms. Jutta Ludwig
Mr. Jan Noether
Ms. Alexandra Voss
Executive Director GCC l Beijing
Managing Director GCC l Shanghai
Executive Director GCC l South
& Southwest China
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ConTEnTS
Business Focus
Community
8
News from Berlin and Brussels
70
Training & Education
German University in Hefei
10
Member News
Beijing
Shanghai
South & Southwest China
72
EXPO Review
What’s Next for Germany’s “balancity”?
74
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Cover Story: Electronics Industry
Competing in the World’s Largest Economic
Sector
Plug It In:
CCC for Safe Electronics in China
The Electronics and Electrical Industry in China
Innovation is Key to Gain Lead in the Chinese
Home Appliance Market
Health
Beating the Common Cold
76
Food & Restaurants
Choosing the Right Bottle and Knowing
What’s in it
77
New Books
78
Travel
Immersion into Volcanic Wonderland:
Java
80
Giving Back
Life - the Best Gift You Can Give
10
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26
34
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71
57
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Business Article:
Rare Earth Curbing by Chinese Government
Chamber News
41
Regional Spotlight:
North China: Shenyang
South China: Macau
43
Chamber Notices
44
All China
Research and innovation in China and
the German Machinery industry were the
topics of special events
82
Sports
After the Games: Beijing Tries Different
Concepts for the Subsequent Use of
Olympic Venues
46
Beijing
GCC Beijing welcomed political and
business leaders from Bremen for breakfast
and held workshops on product safety,
energy-efficiency and logistics
84
This & That
84
Church Calendar
85
City Tour
Qingdao
86
Chamber Events Calendar
40
41
42
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Meet the Member:
Mingming Liu: Voith Paper
40
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Shanghai
Federal Minister met with German
representatives in China while young
entrepreneurs gathered for a discussion
panel and workshop attendees learnt about
social insurance, reputation, embracing
conflict, and much more.
South & Southwest China
Wages and salaries discussions were
the focus in South & Southwest China,
but members also learnt about employee
engagement and wellness
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7
BUSINESS FOCUS
NEWS FROM BERLIN AND BRUSSELS
NEWS FROM
BERLIN AND BRUSSELS
Economy Sparks Government Cooperation in Order to
Secure Skilled Personnel
Berlin. The crisis is not quite overcome
and companies are already facing serious
shortages of skilled labour. Generally, or
at least partially, over two thirds of local
companies have problems finding the
professionals they need, and it’s not just
an education issue. Moreover, the situation
will worsen soon. in fact, it is "a central
challenge for the economy and politics",
according to GCiC President Hans Heinrich
Driftmann in a press conference with
Federal labour Minister Ursula von der
leyen and Federal interior Minister Thomas
de Maiziere, as well as at the Professionals
Summit with Federal Minister rainer
Brüderle. He warned to "set the course
to work rapidly towards securing work
forces". The GCiC President underlined
the activities of enterprises and chambers
of commerce in terms of information,
consulting, training and education, but
also the importance of reconciling work
and family, using the potential of older
workers as well as immigration. Driftmann
offered the Federal Government to work
together to solve the issue of safe-guarding
skilled personnel.
GCIC contact person: hardege.stefan@
dihk.de
Development Loans Require No EU Commodity Tax Though
Dissociation From Bank Levies the Back Door!
Berlin. Development loans should not
incur any bank levies — that is DiHK’s
stance in the discussion to implement
a new restructuring law. in any case,
according to initial prognostications,
the bank levy system appears to have
negative consequences on granting such
loans, posited chief economist Volker
Treier. The burden on development loans
would virtually contradict political efforts
that persuade local banks to incorporate
development loans into their financing
structure. Because of the basically correct “to
verify” under the purview of development
loans, it is even possible to accumulate
multiple bank levies, especially when
members of the cooperative financial
services’ networks of Sparkassen and
Volksbanken work closely with their
respective central institutes on development
loan businesses.
DIHK contact person: [email protected]
8
BrUSSelS. recent plans by the european
Commission to introduce a new europe-wide
tax on the consumption of raw materials
were sharply criticised by the GCiC. An
eU tax would indirectly affect companies,
customers and competitiveness. The control
involves significant financial risks, especially
for those european companies that rely
on raw materials. The tax is beyond the
control of the Member States. Companies are
already anxious to apply it efficiently, given
the scarce resources and rising raw material
prices. They know best where to spare raw
materials and where substitutes can be
used. instead of raising raw material prices
artificially, and thus jeopardising production
and jobs in Germany and europe, resource
efficiency should be further supported
through the new recycling law or innovative
research and development.
GCIC contact person: lechner.susanne@
dihk.de
Reform of Radio Licence Fee
Not at Economy’s Cost
Berlin. At a hearing before the Bundestag
concerning the implementation of a new
radio financing model, representatives
of industry and commerce stated their
demands regarding the topic, namely
that only one specific amount should
cover all broadcasting usage. The model
will be imposed from 2013 on. DHiK and
other associations lobby for a consistent
system and a cap on the economy’s
financing contributions at the present
level. representatives called the plans
to raise the economy’s financial burden
to around eUr 800mn p.a. totally
indefensible. it would equal to nearly a
doubling. So far, the economy has paid
eUr 450mn p.a. DiHK described the socalled “Betriebsstättenansatz“, which is
being considered by the federal states, as a
biased estimate that mainly disadvantages
chain store companies. By the scaling, it
would also put higher pressure on small
enterprises. Furthermore, the new financing
model constitutes systematic breaches as
the planned inclusion of non-private cars
and hotel rooms controvert the idea of a fee
independent of broadcasting appliances.
DIHK contact person: kirschsieper.eva@
dihk.de
Clamp Down on Abuse
Berlin. Stop the abuse of internet
shopping, demands the GCiC while arguing
for a swift legal clarification of retailers’
comprehensive compensation claims. it also
proposes to limit the right of withdrawal to
reasonable situations. For example, hygiene
articles and books should be excluded from
refunding. The growth in online shopping
without intent of purchase causes online
retailers not only grief, but also large
financial losses. More and more customers
are making use of the two-week right
to withdrawal and refund. The result is
customers sending back used tents or worn
evening dress. According to a survey by
the DiHK and the seal of quality provider
Trusted Shops, 80% of 400 companies reported such cases. A third of companies
also indicated that the goods lost 30% or
more of their value. in many cases, a resale
was impossible — for example, lipsticks or
contact lenses.
GCIC contact person: gross.christian@dihk.
de
9
BUSINESS FOCUS
MEMBER NEWS BEIJING
MEMBER NEWS
BEIJING
New Grondmet Office
Operating for More Than
One Year
Minor Metal and noble Alloy trading
house Grondmet, headquartered in
Duesseldorf, has been working from its
new Beijing representative office since
its opening in September 2009. After
restructuring its Chinese and Asian
business units, Grondmet looks back on a
successful and profitable first year under
the new management in the Beijing
office. The company was able to develop
new product lines and markets in China
and east Asia. in 2011 Grondmet will
focus even more on China's demand
for raw materials and accordingly has
signed supply agreements with South
American suppliers.
BEITEN BURKHARDT Expands Beijing Branch of Commerzbank Awarded RMB Licence by
in Beijing
the China Banking Regulatory Commission
M r. M o r i t z
Heidbuechel
recently transferred
from BeiTen
BUrKHArDT
in Munich to the
office in Beijing. He
will focus on both
helping european
clients navigate the
Chinese legal environment, in particular in
the areas of corporate and commercial law as
well as assisting Chinese clients in bringing
their products and services to the european
market. Mr. Heidbuechel studied law in
Germany and worked as a trainee lawyer in
Munich and Shanghai before being admitted
to the Munich bar in 2007. Prior to joining
BeiTen BUrKHArDT at the beginning
of 2009, Mr. Heidbuechel worked for a
German automotive company in Beijing
and completed Chinese language studies at
Beijing Foreign Studies University. Besides
speaking German as his mother tongue, Mr.
Heidbuechel speaks english and Chinese.
The appointment of Mr. Heidbuechel as
representative of BeiTen BUrKHArDT’s
Beijing office is further proof of the law
firm’s focus on the Chinese market and its
commitment to provide foreign and Chinese
clients with advice on their operations in
China and europe.
10
Commerzbank, Germany’s leading bank
for private and corporate customers, has
received a renminbi (rMB) licence from
the China Banking regulatory Commission
(CBrC) for its Beijing branch. With this
licence, the bank will offer new products
in rMB, and complete its existing product
portfolio. The receipt of the rMB licence for
the Beijing branch represents the final step
of a successful integration of Dresdner Bank
forming the new Commerzbank in Asia.
it allows the bank to offer a full range of
corporate banking products including rMB
loans.
New Mitec-Jebsen Plant Opens – the First in New Dalian
Development Zone
Automotive parts manufacturer MitecJebsen opened a new state-of-the-art plant
in Dalian. The grand opening was attended
by government officials and leaders of
China’s automotive industry as well as
senior management from its two jointventure partners: Greater China marketing
and distribution leader Jebsen Group and
Germany’s Mitec
Automative AG.
Built at a cost of
rMB 54mn, the new
plant brings the two
partners’ investment
in Mitec-Jebsen in
China to more than
RMB 120mn. The first
business to move
into the new Haiqing
economic Technology
Development
Zone in Dalian, the
new Mitec-Jebsen plant is expected to
attract more investment to the area. The
complete 6,500m² manufacturing facility,
which currently has an annual output
of 300,000 units, will manufacture car
balancer systems for the burgeoning China
automotive market and plans to double
production to 600,000 units by early 2011.
MEMBER NEWS SHANGHAI
Hand in Hand, Heart with
Heart — Rittal Sponsored
40 Orphans to visit World
Expo 2010
www.china.ahk.de
MEMBER NEWS
SHANGHAI
On 20 th August 2010, rittal China
organised an activity named “Hand in
Hand with the Orphaned, Visit World
expo 2010”. Together with Shanghai
Social Service Center, and with the
assistance of Shanghai Children's
Welfare organisation, rittal invited
40 volunteers to guide 40 orphaned
children in a visit to the World expo.
Touring amazing pavilions, the 40
children were very excited and they
felt the warmth of the social family,
despite having lost their own families.
in an interview with STV, Dr. Zheng
Qinghao, the president of rittal China,
said, “it is the social responsibility of
both the corporation and the citizen to
help these children.”
Storymaker Goes WFOE Co. Ltd.
The German Pr
Agency Storymaker
has been recently
registered in
China as a Wholly
Foreign Owned
enterprise (WFOe).
The company goes
under the name
Storymaker Public
relations (Beijing)
Co. ltd. ( 世媒公关
咨询(北京)有限公
司) and replaces
the previous
representative
o ff i c e o p e n e d b y
Storymaker in 2007.
The General Manager of the company is Ms. Kelly liu-Chaumet
(刘飞平), who has been with Storymaker since 2007 and has been
in the Pr and event Management sector for more than eight years.
With an experienced intercultural team, Storymaker's Chinese sister
company is a partner for German middle-sized companies doing
business in China – offering strategic communication consultancy
and a broad range of Pr services such as press conferences, one-onone interviews, corporate publishing, online Pr campaigning, media
relations, governmental organisation relations and media training
workshops. “We think in German and Chinese,” Kelly explains the
motto of the new company.
11
BUSINESS FOCUS
Kingdee & IBM to Tap into the High-End Enterprise Application Market
Kingdee International Software Group
Company Ltd. and IBM announced a plan
to form a joint team in order to provide
integrated enterprise application software
and services for enterprises in China.
According to some experts, IBM has been
working with its strategic partner Kingdee
to form such a special group for integrated
delivery services. The following business
executives attended the press conference:
Mr. Xu Shaochun, Chairman & CEO of
Kingdee, Mr. Yu Wenbo, Vice-Chairman
of Kingdee and General Manager of the
Large Enterprise & Industry Division,
Mr. Qian Daqun, President & CEO of
IBM Greater China Group, Mr. Zheng
Xiaocong, Vice-President of IBM Greater
China Group & General Manager of
the Channel Division, and Mr. Marc
Chapman, General Manager of Greater
China Group of IBM Global Business
Services. As part of the cooperation, IBM
Global Business Services will establish a
special software services delivery team for
Kingdee’s EAS product service. Focusing on the combination
of Kingdee's software and IBM's services, the two parties
will provide integrated consulting products and solutions for
Chinese enterprises.
EWM焊接技术扎根中国
以德国最先进的技术服务于中国和亚洲
EWM WELDING TECHNOLOGY MADE IN CHINA
GERMAN STATE-OF-THE-ART TECHNOLOGY FOR CHINA AND ASIA
手弧焊
MMA welding
钨极氩弧焊
熔化极气体保护焊
TIG welding
MIG/MAG welding
等离子焊
PLASMA welding
Seminar for Students at Fuchs Lubricants
In late August 2010, around 20 junior students from the Material
Science and Engineering Department of Jiaotong University came
to FUCHS Lubricants China for a one day seminar led by Associate
Head Professor Chen Jun. After a brief introduction of FUCHS and
lubricants basics by HR Specialist Ms. Yolanda YU and R&D Manager
Mr. LU Jie, the group had a tour through the plant and lab guided by
Director of Operations Ms. Cathy Wu and R&D Director Dr. Charlie
Zhang. Lastly, FUCHS’ Product Managers and LUBRITECH Sales
Director Zhou Likang introduced products and applications for
corrosion preventives, metalworking fluids and forming oil related to
the students’ major. This
seminar stemmed from
the cooperation agreement
between FUCHS China and
CAD State Engineering
R&D Centre of Shanghai
Jiaotong University, which
was signed on 20 th June
2008.
Finnair Selected as Best Airline in China
伊达高科焊接 (昆山)有限公司
EWM Kunshan, China
伊达高科焊接德国总部
EWM Mündersbach, Germany
EWM HIGHTEC WELDING (Kunshan) Ltd.
10 Yuanshan Road,
Kunshan New & High-Tech Industry Development Zone,
Kunshan, Jiangsu, 215300 P.R.China
伊达高科焊接(昆山)有限公司
江苏省昆山市昆山高新技术产业开发区圆山路10号
邮编: 215300
Phone: +86(0) 512 57867188
Fax: +86(0)512 57867182
www.ewm.cn · [email protected]
12
The Chinese magazine Voyage, aimed at business and luxury
travellers, has selected Finnair as best airline. The award was granted
in the We Change Travelling category of the 2010 Travel Brand
Competition. The winner was selected by readers and a committee
of experts. Voyage's readership covers a large section of the Chinese
elite, including business leaders. The magazine's circulation is 582,000
copies per month. "The award confirms that Finnair is a highly valued
airline in China; our brand recognition has increased significantly
in the country and our service is competitive in the Asian market,"
says Mikko Rautio, Finnair's Chief Representative in China. In recent
years, a key part of Finnair's strategy has been strengthening the
company's position in the Asian market and particularly in traffic
between Europe and Asia. Chinese traffic, moreover, is one of the
most important elements of Finnair's Asian strategy.
www.china.ahk.de
Schaeffler Group Asia Pacific Automotive Symposium 2010
On 26th-28th August 2010 Schaeffler Group
organised the first Automotive Symposium
for its major customers in the Asia Pacific
region. The event took place in Shanghai,
China and gathered a total of over 500
participants including customers and staff
from various countries in Asia. Focusing
on technical innovations and solutions in
the automotive industry, the symposium
showed the technical expertise and
capabilities of the Group as a worldwide
corporation as well as a major regional
manufacturer of automotive components
in Asia. During the three days participants
enjoyed a various range of activities,
from technical seminars and round table
discussions, to plant visits, Expo tours and
golf. The event, which was organised under
the title "Driven by the Next Generations",
received over 90% satisfaction rates in the
customer satisfaction survey.
Suzhou Tongan Crane New Partner of STAHL CraneSystems Shanghai
STAHL CraneSystems Shanghai is pleased to announce the first
certified partnership with a crane builder in China. Suzhou Tongan
Crane is one of the leading companies in the field of standard and
special overhead cranes, bridge cranes and special cranes. Both
companies have been working together for a long time, mainly in
projects for foreign invested plants in China. STAHL CraneSystems
and Suzhou Tongan Crane perfectly complement each other for their
long term experience in the explosion protected lifting business.
As a certified partner company, Suzhou Tongan Crane is in close
contact with STAHL CraneSystems’ crane technology specialists and
is thus always well informed about current new developments and
technical details. Additionally Suzhou Tongan Cranes will enjoy
active support in marketing and trade fair activities. As a partner,
Suzhou Tongan Crane will continue to sell high-quality crane
technology imported from Germany.
Erhardt + Leimer (Hangzhou) Co. Ltd.
After several years of successful sales and service operations in Mainland China Erhardt + Leimer (Hangzhou) takes on the next steps for
expanding its market leadership within the web guiding, tension control and inspection technology industry. From 2011, the production of
goods for the local as well as the global market will start. In the first
step, it is planned to produce pivoting frames for the non-woven and
film industry as well as segmented roller guiders for the textile industry. Other products are planned to follow. Besides this, the implementation of SAP as the new IT platform will also start in January 2011.
Both projects improving the strength of the company demonstrate the
importance of the Chinese market for the whole E+L group.
13
BUSINESS FOCUS
Lots of Little Solutions to One Very Big Problem.
The 21st September 2010 was the responsible
Business Day for interContinental Hotels
& resorts globally. in connecting people
to all that is special about a place, we have
the responsibility to respect and protect
the nature, heritage and communities that
make it unique. This is why interContinental
Hotels & resorts has chosen to partner with
national Geographic's Centre for Sustainable
Destinations started in 2007. Working together,
they aim to encourage a deeper appreciation
of our world and inspire a passion for its
preservation. interContinental Shanghai
Pudong is committed to minimising its impact
on the environment through traveling by
environmentally
friendly ways (e.g.
bicycles, "rideshares",
public transportation)
to reduce carbon
emission. A signing
ceremony was held
at the front gate of
the hotel, aimed at
rising awareness of
eco-friendly practices
among hotel guests
and employees.
Boehringer Ingelheim inaugurates the Shanghai “Centre of Competence”
On 26th August 2010, Boehringer ingelheim celebrated the inauguration
of its new “Centre of Competence” (CoC) in Shanghai. As part of
the company’s eUr 100mn expansion project in China, the CoC
entails an investment of eUr 10mn and will specialise in optimising
active pharmaceutical ingredients (APis) and chemical intermediates
procured in China. So far, more than 20 highly-qualified organic
and analytical chemists have been recruited for the CoC. “This
reinforces our company’s determination and commitment to continue
investing in China,” said Dr. Wolfram Carius, Member of the Board of
Managing Directors of Boehringer ingelheim and responsible for the
Board Division Human resources and Operations. “We attach great
importance to the exchange with our Chinese partners. We have a longterm commitment to this market and we are driving innovation in the
country’s pharmaceutical industry.”
ribbon cutting by Dr. Wolfram Carius (left), member of the Board of Managing
Directors of Boehringer ingelheim and Mr. endi Zhang (right), Vice Governor of
Pudong Government
Continental Tires Opens BestDrive Flagship Shop
Continental Tires has announced the
introduction of BestDrive shops to the
Chinese market. The first BestDrive shop,
which is also Continental's 1,000th certified
image shop, was opened in Guangzhou on
31 st August 2010. The opening ceremony
was decorated with three giant Continental
tire models and the noticeable number
“1,000” representing Continental’s milestone
achievement in China. “The BestDrive
flagship shop, offering a one stop solution
in tire and auto services, is intended to
provide Chinese consumers with more
comprehensive and more professional
services on driving safety,“ indicated
Mortimer von Tschirschky, Continental Tires
China General Manager. As one of the top
five global leading automotive suppliers,
Continental introduces some automotive
parts such as belts and brake pads into the
BestDrive shop, which also offer well-known
products from strategic partners such as
Mobil, Corghi and Teck to provide the
consumers with premium and value-added
services.
14
www.china.ahk.de
Pleasures of Senses in the Bathroom —
Duravit Beijing Flagship Store Opening
Duravit Beijing's flagship store opened on 28th August 2010.
As the largest showroom in China, Duravit Beijing's flagship
store explains the meaning of “living bathrooms” to China
consumers by itself. As a renowned top sanitaryware brand in
the world, Duravit leads the global trend of this industry by its
rich art elements and superior designs. It turns dull and plain
bathrooms into a heaven full of sensory pleasures.
New Hire and Location for Landesbank
Hessen-Thüringen
On 1 st September 2010,
M s . Wa n g Yi h a s b e e n
appointed the new Chief
Representative of the
R e p re s e n t a t i v e O ff i c e
of Landesbank HessenThüringen (Helaba)
in Shanghai. Since its
opening, the office
has been successfully
supporting Helaba’s
German corporate clients,
but also showing a clear
focus on the customers of
the savings banks for their
China-related business.
There are various services
provided by the office on behalf of German companies and the
savings banks, such as the support for trade transactions, the
establishment of payment channels, or the analysis of the Chinese
markets and business environment. Helaba also provides product
expertise, e.g. Real Estate, Corporate Finance, Global Markets and
Asset Management. Ms. Wang has comprehensive knowledge
and longtime working experience in financial sectors in Germany
& China. The Helaba Representative Office relocated to its new
premises in the HSBC Tower in Lujiazui, Shanghai.
TÜV SÜD New Labs Opening in Wai Gao
Qiao Free Trade Zone, Shanghai
The opening ceremony for the TÜV SÜD labs located in Wai Gao
Qiao Free Trade Zone, Shanghai was held on 1st September 2010. As
the second lab base in Shanghai, the labs are equipped with testing
facilities in life sciences (food, microbes, cosmetics, etc.), chemical,
softlines, packaging and environmental reliability. Product safety
and quality requirements in both international and domestic
markets are becoming more strict and regulated. Therefore,
TÜV SÜD is continuously updating its lab capacity to adapt to
constantly updated international regulations and standards, to
developing the most optimal technical solutions for monitoring
quality and safety of made-in-China products, so as to ensure
quality reputation and economic profit in the market.
15
BUSINESS FOCUS
Bureau Veritas Completes the
Acquisition of Inspectorate
Bureau Veritas completed the acquisition of
Inspectorate, having obtained the approvals
of all relevant competition authorities. On
21st June 2010 an agreement was signed by
Bureau Veritas and Inspicio (majority-owned
by private equity firm 3i and funds managed
by 3i) regarding this GBP 450mn acquisition.
The acquisition of Inspectorate is a major
step forward for Bureau Veritas in its global
leadership strategy, making it one of the
world leaders in commodities inspection and
testing. Headquartered in Witham in the UK,
Inspectorate is present in 60 countries and
employs over 7,000 people. Its activities are
organised into three main market segments
in which the company enjoys leading global
positions: oil and petrochemicals, metals,
minerals and agricultural products. In 2009,
Inspectorate posted GBP 246mn in revenues.
In the first half of 2010, its business held up
well with an organic growth of 10.8%.
ABiC Implements Kingdee for WashTec and ThyssenKrupp
Two well known German companies,
WashTec Car Cleaning Equipment (Shanghai)
Co. Ltd. and ThyssenKrupp Materials
(Shanghai) Co. Ltd. partnered with ABiC
information systems (Shanghai) Co. Ltd.
as their service provider to implement the
ERP system. Kingdee K/3, the Chinese local
system chosen by both companies, would
be deployed to support a sophisticated
manufacturing operation of car wash
machines and a trading business supplying
and processing of plastic and metal materials.
ABiC, a German company formed in 2009,
is dedicated to providing procurement,
implementation and maintenance services
for the Kingdee ERP system, a well known
local management applications product.
The expectations of both companies are
commonly characterised by shortened
implementation duration under a tight
project budget. The WashTec project started
in July and the ThyssenKrupp project started
at the end of September. Both projects plan to
be finished before the end of 2010.
First Outsourced Clean Room Laundry in China
CWS-boco Laundry and Hygiene Service Co.
Ltd. has two big industrial laundries in China
and is a leading international service company
with a full-service laundry and rental of work
wear, uniforms, linen, washroom hygiene,
dust control mats and clean room garments.
In October 2010, CWS-boco opened the first
ever outsourced clean room in Beijing, which
was developed in close cooperation with
the pharmaceutical customer NovoNordisk
Group. With the new facility, CWS-boco meets
the rising demand for outsourcing services
and will offer a rental service including
the sourcing, delivery and management of
customer garments. The clean room will serve
ISO 4 (Class 10) and provides washing service
in a full rental model for the pharmaceutical,
medical and electrical industry. The plant is
equipped with the most modern test devices,
washing and drying equipment, and follows
strictly international quality standards.
16
www.china.ahk.de
New Transaction Ser vices New German Tax Manager Dezan Shira & Associates
Manager at KPMG Shanghai at PwC Shanghai
Announces New Partner
Mr. Olaf Griese
Mr. Claudio
Chiandussi,
an ACCA
qualified and
a Transaction
Services
Manager
with KPMG
has recently
transferred
from the
KPMG office
in Munich to
Shanghai, now focusing on leading financial
due diligence engagements in China while
serving both European Corporate and
multinational Private Equity clients. Prior to
joining KPMG, Mr. Chaindussi also worked
for Haarmann Hemmelrath, Shanghai office.
He is the author of several publications on
topics such as Private Equity investments in
China.
Mr. Ulrich Reuter
recently joined
the European
tax desk of
PricewaterhouseCoopers China
in Shanghai as
new member of
the accounting
firm’s German
Business Group.
As a Certified
G e r m a n Ta x
Advisor (Steuerberater), he has worked
more than five years with PwC Germany’s
China Business Group in Düsseldorf,
including but not limited to issues like
tax treaty application, PE issues, transfer
pricing, secondment arrangements, transfer
of functions, international restructuring,
VAT and individual income taxation. Fluent
not only in German and English, but also in
Mandarin and Japanese, Mr. Reuter has more
than 15 years of China experience and holds
a PhD from Nagoya University in Japan. At
PwC China’s Shanghai office, Mr. Reuter
succeeds Mr. Ralph Dreher, who moved on to
PricewaterhouseCoopers Tokyo, Japan.
Dezan Shira &
Associates, a
specialist foreign
direct investment practice,
providing business advisory,
accounting, tax
and payroll services to companies investing in
Asia is pleased
to announce the appointment of Mr. Olaf
Griese as a partner since September 2010.
Mr. Griese joined the company in 2006.
During the last four years, he has taken
over increasing responsibilities in the
management of the firm’s Yangtze River
Delta Region operations. With this broad
experience he is going to be a valuable asset
and a strong contributor for the growing
development of the company. He will be
in charge of the Shanghai regional office of
Dezan Shira & Associates. The Hangzhou
and Ningbo offices are also under his
responsibility.
Facility Management
Service can be this perfect.
Dussmann Established in 1963 in Germany, with almost 53,000 employees in 24 countries and being the most successful private multi‐service providers worldwide, the Dussmann Group offers many different facility services: z
z
z
z
z
z
Cleaning Services Security and Reception Services Catering Services Technical Services Commercial Management Energy Management Dussmann is present in China with nearly 4000 employees in 10 locations. It has been providing “Made in Germany” services to the clients by adapting professional service know‐how with local needs in the industries of properties, manufacture, hotels, schools, exhibitions, etc. For service inquiries:
Tel: + 86 21 5255 1535
E-Mail: [email protected]
Fax: + 86 21 3250 5738
Web: http://www.dussmann.com.cn
17
BUSINESS FOCUS
Charles-Edouard Bouée Elected as Member
Mr. Charles-Edouard Bouée, President of
Roland Berger Strategy Consultants Asia,
was recently elected as a member of Roland
Berger Global Executive Committee. This
reflects the growing importance of the
China market as a strategic corner stone
in the firm's international expansion
plan. With an MBA from Harvard and a
background in law, Mr. Bouée has been
with Roland Berger since 2001. Since he
joined the Shanghai office in 2006, the
company has grown rapidly, doubling
revenue and staff size under his strong
leadership. In his new role, Mr. Bouée will
be committed to leading the firm into a
new level of fast growth and promoting
cooperation among business communities
in both China and Europe. He is also an
economic advisor to the French Government
in China, and a member of the Shanghai
board of the European Chamber of
Commerce in China.
Kirchhoff Joins New Alliance
With the continuous efforts and great achievements in high strength
material forming technologies and the correspondent products to
automotive industries, Kirchhoff Automotive (Suzhou) successfully
joined the “Industry Technology Innovation Strategic Alliance for
Automobile Lightweight (ITSAL)” as the only foreign enterprise
member this September. On 27th September 2010, Dr. Sam Li from
Kirchhoff Automotive (Suzhou) was invited to present in the Fourth
Annual Forum of Lightweight Vehicle Solution, which was held
by ITSAL. As one of the eleven speakers, Dr. Sam Li delivered
a presentation of on the "Forming of High Strength Steels for
Automotives” to the audiences. He also introduced Kirchhoff’s
development work on the lightweight solutions to automotives in
18
using new materials and forming technologies. His presentation
drew a great attention from the audiences. This was only the first
step for Kirchhoff after joining the alliance.
SCHÜCO
During the recession in 2009, the Beijing government proclaimed
an economic policy of “expanding domestic demand and
adjusting structure” in order to keep growth steady despite the
worldwide crisis. SCHÜCO International (Beijing) Co. Ltd. was
one of the drivers for helping the Beijing government achieve
its target of 8% growth rate for the year. Therefore, a reward of
RMB 200,000 was given from the Official Bureau to SCHÜCO
based on its annual income of RMB 156,431,601.59 in 2009, which
represents a growth rate of 36.5% compared to the previous
fiscal year of 2008. The award was given by the Beijing Industrial
Development Fund and the Beijing Small and Medium-Sized
Enterprises Supporting Fund. The award was given through a
formal notice in writing. SCHÜCO had the chance to receive such
a prize due to the rare and serious recession all around the world,
which brought a lot of pressure on domestic economic growth in
China. It was a unique reward.
Hartung:consult Extends its Presence in Asia
To respond to the requirements of its global corporate customers,
hartung:consult has strengthened its SAP Global Services in Asia
Pacific. As the first local partner of SAP in China, hartung:consult
has completed more than 400 SAP projects since 1995. Worldwide,
hartung:consult has over 700 clients with offices in Germany
(Berlin), China (Shanghai, Chengdu and Beijing) and the US (San
Jose). With the merger of Astrums Consulting, hartung:consult has
now extended its operations to Singapore, Malaysia and india.
Left: President and CEO Dr. Oswin Hartung reached a final agreement to enter into
a merger (capital alliance) with the Singapore based company Astrums Consulting
Managing Director Sreenivas Kurup with a capital of 70% of Astrums' shares
outstanding
Oldenburger Wins Swarovski Tender
in China, the worldwide largest furniture manufacturer,
competition is tremendous, quality often superseded by
Chinese cost-engineering. As Mr. Klaus Scholz, Head of
Business Development at Oldenburger (Shanghai) explains,
“German quality and craftsmanship is often just the beginning
to win contracts. Without the right attitude offering one-stop
solutions without compromises, our competitors often succeed
by playing the ‘lower cost card’. One of our strengths as an old
German company is excellent project management, maintaining
schedules without compromises and keeping promises – not
excuses”. Swarovski has chosen Oldenburger to outfit their stores
in China, other Asian countries and north-/South America.
Besides store interior, OiP also manufactures for famous hotels,
real estate developers, and four expo Pavilions. As the only
German manufacturer in China offering design furniture for
internationally renowned architects, OiP has just set up a new city
office to better serve their Chinese and international clients.
Hirschvogel China Launches Two New
Presses in 2010
it has been over four years since Hirschvogel Automotive
Components (Pinghu) Co. Ltd. (HAC) delivered its first product to
its customers. in order to fulfill the capacity requirement on both
quantity and products range, HAC planned to launch two new
presses throughout 2010. With the winter coming, a 1,600t warm
forge equipment has finished its assembly and start production. This
press will enable HAC to produce common rails, balance, excentric
camshaft, etc, thus extending the products range of HAC. Another
press is a 1,600t cold forge equipment, this press will not only
increase the capacity of HAC but also enlarge the dimension range of
our products, e.g. of transmission shafts or pinions. With these two
new presses HAC will be able to meet more customer requirements
in the automobile industry.
19
BUSINESS FOCUS
Polar Postpress Machinery Delivers 500th Unit
Polar Postpress Machinery (Shanghai) Co. Ltd. had the honor
to hand-over the 500th unit of its Paper Cutter 115XC, produced
in Polar’s Qingpu Factory, to its Customer Lihua Color Printed
in Kunshan. Together with the management team of Heidelberg
China and Polar’s Managing Director, Mr. Alfred Henschel, the
factory’s team welcomed Lihua’s CEO, Mr. Fuchu Sun, and his
management team for the ceremony. After the traditional ribbon
cutting ceremony, the machine was transferred to Lihua as the
latest addition to their existing machinery supporting their
further business development. In his speech, Mr. Sun highlighted
the long lasting partnership between the companies and ended
it by wishing everyone a bright and successful future. While
the ceremony came to an end, the day was not yet over – all
participants joined in for a Polar Oktoberfest.
Bosch at CIAPE 2010
On 25th-27th September 2010, Bosch exhibited its holistic clean, economic
and safe solutions at the 4th China International Auto Parts Expo (CIAPE),
encompassing the full product range for power train electrification,
technologies for increased fuel saving and CO2 emission reduction of
internal combustion engines and the latest localised developments to
enhance automotive safety. During the period of CIAPE 2010, Bosch
also arranged a media test drive with the theme of "Clean Diesel Power,
Fun of Driving". Some 30 journalists experienced the "economical, clean
and powerful" features of modern diesel passenger cars. More than ten
different types and
brands of domestic
and international
cars were part of
the test drive, with
vehicles ranging from
SUV and MPV to
sedans. All of them
were equipped with
Bosch common rail
systems. During the
event, the journalists'
long distance drives
resulted in an
average of 6.9l fuel
consumption per
100km, which was
over 40% less than
the national standard.
20
CognoLink Expands in Asia
Cognolink opened an office in
Shanghai, its new Asia Pacific hub.
The expansion gives Cognolink
the chance to increase networking
opportunities with international
investors for Cognolink’s senior
specialists. “After getting an
increasing number of requests in Asia,
we have decided to expand into this
region to better serve our clients,”
says rodolphe de Hemptinne,
Chief Operating Officer and CoFounder of Cognolink. “We are keen to seize the opportunities
in this promising region, where access to accurate and non-biased
information is at a significant premium.” Cognolink has been
recognised in the industry for its matching capabilities between
clients and specialists and its stringent compliance framework. its
leadership intends to apply these same attributes to the Asia Pacific
region to aid Cognolink’s clients in making informed investment
decisions. The Shanghai office has been operational for several
months, with a rapidly growing team on the ground.
Award for Salans
international law firm Salans has
been ranked third tier tax law firm in
China by the Asia Pacific legal 500
2009/2010. Salans' China Tax Group
currently consists of eight members
and has been actively advising on tax
issues combining legal indications
in China. The group is led by Of
Counsel, Ms. Yun Wei, and Greater
China Managing Partner Dr. Bernd-Uwe Stucken. The latter also
is part of the editorial board of CCH’s China Tax intelligence. This
is the first time that Salans’ China practice has been ranked by The
legal 500. However, the group was awarded “Tax Firm of the Year”
by Asian-Counsel in 2007, and their articles on China’s tax policies
with legal perspectives are often quoted by independent publishers,
such as london-based BnA international. The legal 500 directories
have been published for over twenty years, and are among most
comprehensive providers currently available on legal services in
over 100 countries.
LAR Process Analysers – Major Deal with
Frankfurt Airport Plant in Yantai
in September 2010, lAr Process Analysers AG – manufacturer and
supplier of on-line analysers for the measurement of TOC, COD
and other composite parameters – has gained a major deal with the
Frankfurt Airport. Thus, in the course of the airport's extension, lAr
will provide it with 20 of its COD and 2 TOC on line analysers for
the analysis of de-icing water in the drainage system until 2013. This
drainage concept has been planned by independent engineering
companies and laboratories as well as approved by the Hessian Chief
Administrator and TÜV. Hence, lAr is continuously extending its
lead regarding analysis of de-icing water applications. Moreover,
this project also strengthens the network among the German Water
Partnership bringing together the competencies of the German water
sector. engineering companies like Dr. Born & Dr. ermel, Dorsch
Consult GmbH and equipment manufacturers like lAr have been
successfully integrated complementing each other at best.
21
BUSINESS FOCUS
9Diamond Awarded econet china Green
IT Certificate
Agility Appointed Exclusive Forwarder for
Gunnebo in China
Shanghai-based online diamond retailer, 9Diamond, has achieved
a 5-star Green IT rating from econet china and Totuba, confirming
9Diamond’s role as an innovative and sustainable IT solution
provider. 9Diamond was consulted on optimizing the air-flow in the
company’s server room and on utilising thin-client technology for
future investments in IT assets, an experience 9Diamond will share
with other Chinese IT managers and engineers in order to support
them to also be awarded the econet china Green IT Certificate.
Agility, a leading global logistics provider, has been appointed by
Gunnebo, the world’s leading specialist in security solutions, as
the exclusive forwarder for all its transport flows from China to
Europe. China is a key expansion market for Gunnebo and with a
strong presence and in-depth understanding of emerging markets,
Agility offers invaluable industry expertise. Since 2009, Agility has
handled Gunnebo’s road freight in Europe and project logistics
in emerging markets like Latin America and Africa. As part of the
extension of this strategic partnership, Agility manages Gunnebo’s
freight deliveries from China to Europe via air, sea and combined
sea/air routes.
Freudenberg Inaugurates Vibracoustic®
Plant in Yantai
The Freudenberg Business Group Vibracoustic® celebrated the
opening of their new Vibracoustic® plant in Yantai Shandong with a
traditional ceremonial inauguration on 29th October 2010. Over 100
employees are producing airsprings and chassis parts for the Chinese
automotive industry in this new production site of 8,000m2. In
addition to customers, partners and government officials, employees
from China, Europe, Japan and Korea also joined the ceremony. By
2014 Vibracoustic® will have invested EUR 14mn in the production
and infrastructure of Yantai. Another EUR 3.5mn will be invested in
new buildings. Vibracoustic® will employ about 200 people by 2014.
With the new plant in Yantai Vibracoustic® supplies the product
requirements of its Chinese customers. Proximity to customers and
suppliers, availability of skilled labour and its favourable location at
the Yellow Sea Coast were decisive factors for the site selection.
22
23
BUSINESS FOCUS
MEET THE MEMBER
Mingming Liu
Company: Voith Paper
Job Title/Position: President of Voith Paper Asia
Year of Foundation: 1867
HQ (location): Heidenheim, Germany
Main Business: Leading supplier in Papermaking
industry
Number of Employees (optional): 1,000
Sales/Revenue (optional): EUR 11mn
(FY 2009/2010)
Tell us a little about your company and
activities in China?
In 1994, Voith Paper set the first sales office
in Beijing. Previously, Chinese customers had
to buy paper machines and obtain service
from Voith Paper in Germany and Austria.
At that time, our market share was very low
and certainly the Chinese market was also
premature. However, we know that we can
expect more in China. With increasing orders
received over the following years, in 1998,
we set up our first plant in China, Voith
Paper Fabrics Co. ltd. in 2007, Voith Paper
City was completed. Furthermore, it became
the Voith Asian headquarters in 2009.
Why did you choose Nansha to build
up the third service center?
There are three concentrated areas of
papermaking in China. Together with
Voith Paper’s two existing service centres
operating in Dongying, Shandong Province
in north China and in Kunshan, Jiangsu
Province in eastern China, the nansha
site has been set up to complement and
complete a well-covered service network
in South China. it is designed to produce
leading-edge technology roll covers and
provide services for the widest and heaviest
rolls installed in the region where quite a
few industry giants are located such as nine
Dragons, lee & Man, APP Hainan Jinhai
Pulp & Paper, Guangzhou Paper, Yueyang
Tiger Forest Group, etc. Furthermore,
with its quality service focusing on paper
machine efficiency, machine uptime savings
and paper quality enhancement, the facility
is expected to be an important partner
contributing to the success of papermakers
in Southern China.
The paper industry is called the
“Sundown” industry. What are your
aims and hopes for the future?
We have a very positive perspective towards
the future for papermaking in China. Paper
consumption is still very high in the Asian
region. However, the growth rate will be
little lower in the future. Currently, the
paper consumption per capita in China and
other Asian countries is still very low. We
can anticipate that China will be the largest
paper consumption country in the future
and will surely have the greatest potential.
You are the president of Voith Paper
Asia and also the only female and
Chinese leader in Voith Paper's top
management level. Why do you think
that you can make a difference?
Think bigger and think longer. Whenever you
work out a plan, you should stick to it, execute
it and finally complete it. Never give up.
Ideas for resource-saving production:
Integrated solutions ensure growth
Industries worldwide are occupied with the question of how growth can be
ensured while at the same time saving resources. Voith Paper, for decades
at the cutting edge in the development of modern technologies, offers real
answers for paper manufacturing that can be summarized by the term
“integrated solutions.”
24
25
BUSINESS FOCUS
MEMBER NEWS SOUTH & SOUTHWEST CHINA
MEMBER NEWS
SOUTH CHINA
After the maintenance, the engine will be installed under the wing of a Boeing 737
New GM at Deutsche Bank
Guangzhou
Mr. Stefan
Baumann has
taken on the
position as
General Manager
at the Guangzhou
b r a n c h o f
Deutsche Bank
(China) Co. ltd.
Set up in 1995, the
Guangzhou office
was the bank’s
first branch after China’s economic opening.
Branches in Shanghai, Beijing and Tianjin
were soon to follow and the company is now
locally incorporated, employing around 500
employees in Mainland China with a further
1,700 in Hong Kong. Mr. Baumann succeeds
Mr. Brian Xu who is going to set up a new
branch in Chongqing. Until recently Mr.
Baumann worked for the bank’s Shanghai
branch at which he was responsible for the
German companies in the Yangtze river
Delta. Having lived in China for almost
seven years, his first contact with the country
was in 1998 when he went to Beijing to study
Chinese after completing his undergraduate
studies in Germany. He holds an MBA from
the China europe international Business
School in Shanghai, as well as an economics
Degree from a German university.
26
A Step into Nippon
MTU Maintenance Zhuhai signed an
engine maintenance contract with All
nippon Airways (AnA) in november
2009. in August 2010, the first AnA
engine, the CFM56-3C1, finally arrived at
the Zhuhai shop. With the disassembly
starting a couple of days later, the
assigned work scope was a full overhaul.
At the end of October, the engine was
returned to Japan to be remounted under
the wing of a Boeing 737. While AnA is
MTU Maintenance Zhuhai’s first Japanese
customer, the aero engine manufacturer
is the first engine maintenance shop in
China working for a Japanese airline. The
14th July 2010 therefore marked another
historic milestone: For the first time, a
Chinese shop was granted approval from
the Japanese Civil Aviation Bureau (JCAB).
With the JCAB certificate in hand, MTU
Maintenance Zhuhai may knock on the
doors of other Japanese operators to gain
more business. Meanwhile, work goes on
for AnA. The next engine is expected in
December.
A New Battery Testing Laboratory in Guangzhou
in response to the recent changes of
regulations and the market demand fuelled
by widespread public concern about the
safety of batteries, DeKrA, the world’s third
largest testing inspection and certification
organisation, has opened a battery testing
laboratory in Guangzhou, South China. in
accordance with regulations published by the
international electrotechnical Commission
(ieCee), as of 27 th June 2011, portable
rechargeable batteries containing alkaline or
other non-acid electrolyte, such as lithium,
must be tested and certified according to the
standard ieC 62133. The safety requirements
laid down in the standard consider two sets
of conditions, i.e. intended use, as well as
reasonable foreseeable misuse. in July this
year, the European Committee has confirmed
the new eU directive regarding capacity
labelling of portable rechargeable and
automotive batteries. it states that portable
rechargeable batteries shall be marked with
a label indicating capacity in “mAh” and
“Ah” respectively.
A Network of Warehouses
Arvato logistics services China has expanded
its network of warehouses in October to
a total of 25 to cover among others the
provinces of Guangdong, Fujian, Guangxi,
and Shanghai. With the opening of the
additional nine warehouses, arvato can offer
its clients even better delivery lead times
and warehousing solutions. The nationwide
expansion will be completed by the end of
2011. Arvato logistics services specialises in
high quality warehousing and distribution
services focusing on domestic to-shopdeliveries and high value products. every
month the company distributes more than
2mn phones to over 10,000 shops as well
as thousands of accessories and marketing
materials to car dealerships and other
point of sales for its automotive, electronics
manufacturing and health care clients.
inside one of the nine new warehouses: arvato is
expanding its network.
www.china.ahk.de
An Award for Developing More Than Just the Company’s Business
M r. C h i n g p o n g Q u e k i s a w a rd e d f o r h i s
commitment to promote Xiamen as an investment
location
On 30th September, linde (China) CeO Mr.
Chingpong Quek received the 2010 egret
Friendship Award at a ceremony held by the
Xiamen Municipal Government. Mr. Ding
Guoyan, Municipal Standing Committee
Member and executive Vice Mayor, conferred
certificates and medals to all in all seven foreign
experts, of which Mr. Chingpong Quek was
the only overseas Chinese and expert from the
machinery industry. even though the Xiamen
egret Friendship Award has already been
established since 2004, only 22 foreign experts
have been rewarded with it so far. The award
acknowledges not only Mr. Chingpong Quek’s
efforts in developing the company’s business
in China, but also rewards his great support in
promoting Xiamen to the world as a location
for international investments.
Doing Well in Business
On 10 th September, The Garden Hotel,
Guangzhou was awarded as the “Best
Business Hotel in Guangzhou” by the
Business Traveller Asia-Pacific Magazine.
This marks the seventh consecutive year that
the hotel is honoured with this prestigious
international travel award. its great reputation
is also proved by the fact that The Garden
Hotel served as the Headquarters Hotel of
the 16th Asian Games in Guangzhou. ViPs
and delegates from 45 countries and regions
Expanding Production
Capacity in China
Packaging machine producer KHS announced
that it intends to expand the production of its
subsidiary KHS GlM2 in China. At the “9th
international Brew & Beverage Processing
Technology and equipment exhibition for
China” in September, KHS Germany Co.
ltd. investor Dr. Fuhrmann and Mr. Song
Fei, General Manager of KHS China GlM2
ltd. outlined the targets for the company’s
development. According to them, they are
not only going to upgrade the beer lines but
also enhance their global competitiveness.
Their aim is to be present in international
consumer markets such as Brazil as well as
to meet the needs of other global customers.
KHS is a global company with machinery and
equipment for diverse product lines including
liquor, beer, water and beverages.
General Manager Mr. ronnie Cheng receives the
award
comprising the Olympic Council of Asia have
enjoyed the high standard of lingnan style
hospitality.
Prof. Dr. Fuhrmann and Mr. Song Fei (from left)
27
BUSINESS FOCUS
25th Anniversary in Guangzhou
Solving Packaging Problems
The Chinese proverb 富不过三代 ("Wealth
only lasts three generations") does not apply
to Melchers. Founded in 1806, the Melchers
Group is 204 years old and still going
strong. Celebrating Melchers Guangzhou
representation’s 25 th Anniversary is
nonetheless another great achievement. Since
1866 Melchers’ ships have been sailing to
Canton and in 1892 a branch was opened to
export mainly Chinese goods. in the '60s and
'70s large Melchers delegations participated
at the Canton Fair, not only to buy products
but also to bring suitcases full of catalogues
with technical goods to import to China.
With China opening up, Melchers was one of
the first foreign companies to return and to
start an office in Beijing in 1979. In 1985 the
Guangzhou office followed. Today, Melchers
With freight accounting for around 10% of
the cost of offshore sourcing, even a slight
increase in transport prices can run riot
with expenses. Firms can save an average of
15% on these costs by simply implementing
better packaging and loading plans. in
2006, packaging made up more than USD
8bn of the USD 400bn of exported products
from China to the US and europe. To
solve common pitfalls such as the damage
of goods, product loss, extra handling/
repacking or resending costs, OBC express
ltd. Shenzhen has recently launched its new
multi-facetted packaging consulting service.
The company is now able to support their
clients with a complete range of related
services varying from the right packaging
designs and materials, to processes for
managing cross cultural communications
and the support for using every inch of a
container.
Melchers' Guangzhou office, 1892 on Shamian Island
engages among many others in extensive
import/export, application engineering,
marketing and sales of machinery, spare
components and chemical raw materials, as
well as industrial production tools.
Strengthening Cooperation with Partners in China
TÜV rheinland Group shows further
commitment to the Chinese market with the
visit of Mr. Friedrich Hecker, CeO of TÜV
rheinland AG, and the signing of MOUs
with three leading Chinese entities. His two
days visit at the end of September in Beijing
has set a strong foothold for the quality
certification company to expand its business
in the world’s most rapidly developing
economy. The stopover coincided with
TÜV rheinland’s sponsorship of the rote
Funken’s Beijing - Cologne Sister City
Celebration tour in the Capital’s nCPA
on 25 th September. entitled “The 2010
Cologne Culture Day”, the event included
a joint musical performance by the Beijing
Philharmonic Orchestra and Cologne’s rote
Funken. TÜV rheinland’s support for the
event mirrors the Group’s effort to create
further ties and cooperation in China.
A handshake from Mr. Friedrich Hecker and Mr.
Zhao Hang, President of CATArC initiates future
cooperation
Saving More Energy in Guangzhou
Urbanisation, demographic change and climate
change are some of the toughest challenges
for the world’s mega cities. Siemens recently
signed a Memorandum of Understanding
(MoU) with the Guangzhou institute of energy
Conversion (GieC) of the Chinese Academy
of Sciences in Guangzhou to jointly conduct
a sustainability study on the city’s urban
development. As Siemens’ first in-depth citywide sustainability research programme
in China, the study will provide specific
technology levers and recommendations to the
local government on how to improve energy
efficiency and to protect the environment
in fields of energy supply, buildings,
transportation and industry. The study
builds upon earlier city sustainability studies
conducted by Siemens in london, Munich and
other major cities worldwide and the Green
City indexes for europe and Asia.
A moment of sustainability: Mr. nong Keqiang, Senior Vice President and General Manager region South
China of Siemens, signs the MoU
28
Giving Back to Nature on a
Business Trip
Combining your business trip with some
volunteer work? Guests of the ritz-Carlton,
Shenzhen did not hesitate and took the
chance to give back something to the
environment. On three dates during this
autumn and winter, they contributed to
protect the breathtaking Mangrove Wetlands
at the Futian nature reserve in Shenzhen
through a combination of education and
fieldwork. The Futian Mangrove natural
reserve Area in Shenzhen is the only reserve
located in the centre of a Chinese metropolis
while also being the smallest national nature
reserve. As it is an important “rest station”
for migratory birds, guests planted and took
care of trees, removed invasive species of
plants and built birdhouses.
Building birdhouses while being on a business trip
to give back to nature
www.china.ahk.de
New State of the Art Tool Shop in Dongguan
On 8 th July 2010, BOCK China limited,
l o c a t e d i n D o n g g u a n H e n g l i To w n ,
celebrated the official opening of its own
tool shop in conjunction with the visit of
Mr. Jens Hildebrandt, General Manager,
German industry & Commerce Greater
China i Guangzhou and Ms. Heidrun Buss,
executive Chamber Manager, GCC l South
China. The tool shop is equipped with
state of the art, brand-new machines: two
CnC milling centres, two eDM machines,
electrical wire cutting machines, big scale
milling and grinding machines and one
blasting machine. in total, the yearly
capacity is scheduled to be around 100sets
Al die casting and plastic injection moulds.
Mr. Tim leitschuh, General Manager of BOCK China ltd (third from left) with his guests
at the tool shop opening
Furthermore, the company will do the
internal overhaul of current used mould in
house. led by two foreign tool managers
and with a qualified team in house, the new
tool shop will ensure the high quality of
moulds will meet German standards.
Setting Up Business in Guangzhou
in its new plant, Telefield produces iSO-certified
medical devices
The Telefield Group, a Hong Kong based
electronic and manufacturing company, has
set up a formal business unit earlier this year
specialising in design and manufacture of
medical devices complying with iSO13485/
US FDA QSr requirements. The facility
in Guangzhou China was awarded the
iSO13485 Certificate from SGS and the
Medical Device Production license from
SFDA of China to manufacture and export
Class ii medical devices since 2008. The
new company is named Telefield Medical
Devices ltd. (TFMD), and together with
the newly opened r&D office located in
Hong Kong Science Park in May 2010,
the Telefield Group, has now set foot into
advanced and high value added product
markets. TFMD also plans to get certified
for iSO14971 in risk Management and to
comply with iSO14155 for Good Clinical
Trial Practices before the end of 2011.
29
BUSINESS FOCUS
More Space for Legal Matters
A Strategic Agreement of Cooperation on
Product Certification
On 9 th September, Midea Group reached a strategic agreement
with TÜV SÜD Group concerning future all-round certification
cooperation for export products at the Midea headquarters in
Shunde. TÜV SÜD will provide comprehensive assistance for
various household appliances produced by Midea in its domestic
and household overseas production bases, including product
certification, overseas market supervision as well as r&D and
training. The signing of the agreement will substantially strengthen
Midea’s overseas product supervision, thereby enhancing its market
penetration worldwide. For many years TÜV SÜD has continuously
expanded its cooperation with Midea Group to enable its products
to access global markets. As a close strategic partner, TÜV SÜD
will establish an expert service team emphasising improved service
quality and aiming to improve the certification cycle to help Midea
consolidate its leading position globally.
The law firm’s new office on the 11th floor of the newly developed G. T. Land
Plaza in Zhujiang new Town, Guangzhou
Wang Jing & Co. law Firm has relocated their offices to Zhujiang
new Town – Guangzhou’s fast developing city district. Until
recently, the law firm was located at the Guangzhou World Trade
Centre but with growing demands, the company decided to move
to the new city centre with its numerous convenient office facilities.
About a hundred employees are now able to serve domestic and
international clients from the 1,800m2 office, occupying a whole floor
of the modern building. The development, however, does not yet
stop: by March next year, the office will expand to all in all 2,700m2
in the Zhujiang new Town area in Guangzhou.
Frederic Maury, Managing Director, Tüv Süd Hong Kong (3rd from right) at the
signing of the strategie partnership with Midea.
Freudenberg IT China
科德宝集团是一家拥有 160 年历史的
国际化家族企业，总部设在德国魏因海姆
（Weinheim）。
科德宝宜合是隶属于科德宝集团的一
家为中小型企业提供 IT 一站式服务的信息技
术咨询公司。
Address: Unit A1-2, Floor 5,
International Science Park,
Jin Ji Hu Avenue 1355,
Suzhou 215021, China
Tel: +86 (512)6262 1986
Fax: +86 (512)6262 1980
Website: www.freudenberg-it.com
E-mail: [email protected]
30
31
BUSINESS FOCUS
COVER STORY
Electronics
Industry –
Competing in the
World’s Largest
Economic Sector
According to the German Electrical and
Electronic Manufacturers' Association
(Zentralverband Elektrotechnik- und
Elektronikindustrie e.V. (ZVEI)), the
electronics industry is the world's largest
industry. In 2009, the industry accounted
for more than EUR 2.5tr, with China as
the largest market. The country alone
had a turnover of almost EUR 714bn last
year. Moreover, it was due to the People's
Republic that the world market only fell by
5%. While the market volume in 46 of the 50
largest production countries was declining,
China recorded a double-digit growth. Now,
many other markets, including Germany,
are bouncing back and starting to grow. The
electronics industry is expected to grow 6%
in production during 2010 and 2011. Losses
made in 2009 and the pre-crisis growth path
could be recovered within one year.
Developing and emerging economies are
still the driving factor though. In 2010, they
are expected to increase their GDP by 10%
and by another 8% in 2011. Especially for
other Asian countries, the Chinese market
is the most important sales region. In 2009
more than four fifths of around EUR 240bn
Chinese electrical imports are from Japan,
Taiwan, South Korea, Malaysia and the
Asiatic developing countries. The People’s
Republic only imports 9% of its electrical
goods from Europe, of which 4% are from
Germany.
32
For the industrial countries, however, the
ZVEI projected a growth rate of 1% this year
and 4% in 2011. Germany should develop
above average according to the Association.
Since the beginning of 2010 up until now,
there was a significant growth in both
incoming orders and revenue, e.g. in the first
quarter of 2010 orders were 20% compared
to the previous year and the revenue was
more than 9% — mainly due to the inland
demand. In March, the order volume in
Germany grew by 38%, and orders from
abroad grew by 17%. The general business
outlook improved greatly and for the first
time since 2008, the electronics companies
look to the future with confidence.
German Electrical Exports to China
After a slump in 2009 where German
electrical exports sank worldwide around
16.4%, German exports are on the rise again,
especially to China. Even in the crisis year
of 2009, China was the world’s largest sales
market without any losses. In fact, in the
first two months of 2010, German electrical
exports to China increased by 47.1%. China
became the third-most important customer
country for electro technical and electronic
products from Germany, with a total
value of exports at EUR 1.3bn (JanuaryFebruary 2010). Only France (EUR 1.7bn,
15.6% increase) and the USA (EUR 1.4bn,
4.8% decrease) are still more important for
the German electrical exports. Meanwhile,
over EUR 1bn of German electrical exports
went to Italy, Great Britain and into the
Netherlands. Looking at individual product
groups, which were sold to China, it
appears that above all, more heavy current
condensers (+87%) were in the lead. Directly
behind it, receiving antennas and broadband
distribution technology with a plus of
86% (product range of the professional
association satellite & cable) follow. Also
batteries (+22.4%) as well as lighting system
(+18%) increased.
China: Export Structure 2009
Although China’s electrical exports were
not as strongly affected by the worldwide
financial and economic crisis as those of
most other countries, the country had —
on Euro-basis — a decrease of nearly 7%
(in RMB it was nearly 13%). Even with a
decrease of 5% (in RMB 11%), the imports
of electronic goods to China went down
less strongly than in the other industry
and developing countries. In the first nine
months of 2010, imports also grew faster
than exports (38.3% compared to 34.7%).
According to the Ministry of Industry and
Information Technology, exports to the
European Union slowed, while exports to
emerging markets such as Russia and Brazil
rose by 126% and 84.7%.
Challenges and Innovation
China has achieved a spectacularly high rate
of economic growth over a sustained period
for more than two decades. Nevertheless,
today China faces the challenge of making
the transition from sustained to sustainable
growth from social, economical, ecological
www.china.ahk.de
Regional Export Structure
Regional Export Structure 2009
Around half of China's electrical export value of
approximately EUR 350bn remained on the Asian
continent (4% less compared to the previous year),
one quarter went to America (3% decrease) and 23%
to Europe (15% decrease). Overall, China obtained
an export surplus of nearly EUR 110bn from foreign
electronics, a lower figure than the previous year
(2009, EUR 120bn) for the first time in nine years.
Germany
4%
Rest of World
4%
Rest of America
5%
Rest of Asia
5%
Rest of Europe
15%
USA
20%
Southeast Asia
43%
Source: Destatis and ZVEI
Sectoral Export Structure
Sectoral Export Structure 2009
Nearly 80% of China’s electrical expor ts were
generated from the electronics industry in the last year.
The information technology counts for 30%, followed by
the communication technology at 18% and the electronic
components at 16%. In the last year the export cutback
affected nearly all sub-ranges of the electronics industry
in China. Only two fields grew: power capacitors
with 14%, and electro medicine with 5%. As for the
communication technology field, it maintained the
previous year’s level with 1%.
16%
30%
13%
10%
18%
5%
4%
4%
Information Technology
Misc.
Automation
Power Engineering
Home Appliances
Communication Technology
Consumer Electronics
Electronic Components & Systems
Source: Destatis and ZVEI
and environmental points of view. As a global
manufacturing powerhouse, China relies on
low-cost labour and thin margins. However,
this approach is not sustainable because it
hardly supports long-term economic growth
and green development. And the challenges
to overcome aren’t easy: high consumption
of energy and raw materials, environmental
degradation which also leads to damage to
human health, uneven distribution of the
benefits of economic development across
regions, and between urban and rural
populations, large migration flows that
contribute to rapid urbanisation and strain the
social fabric and the environment. Although
innovation has been identified as a main engine
for this new growth model, innovation was
one of the fields cut off by most of companies
during the crisis.
now, to make Chinese-based companies alter
their current business models to one that
supports innovation and collaboration along
the value chain is a hard task. But the Chinese
government is determined. it has set growth
objectives to be met until 2020 which focus on
innovation through research and development.
The government wants to increase the GDP
r&D investment from 1.2% to 2.5%, increase
science and technology contribution from 39%
to 60%, and reduce dependence on foreign
technology. rising as a significant player in
science and technology as well as innovation
will have important implications for the
global knowledge and innovation system, as
China will inevitably and increasingly become
integrated in the global system of knowledge
creation, diffusion and use. The country will be
able to make a positive contribution to global
knowledge production and use, and thus to
addressing global challenges. However, this
will also create competitive pressures and give
rise to concerns and issues that must be dealt
with appropriately. it is important that China’s
emergence not be viewed as a threat and the
outcome as a zero-sum game. SK
33
BUSINESS FOCUS
COVER STORY
Plug It In:
CCC for Safe Electronics in China
China has established itself as a key player in
the global electronics industry. From simple
assembling in early years, the industry has
become mature with advanced technologies
and research facilities introduced by foreign
invested and local Chinese companies. One
recent example of this technology leap is
the world’s fastest supercomputer Tianhe
1 that was built in China. The 2010 study
by the Fraunhofer institute for Systems
and innovation research particularly
highlights Guangdong’s position at the
forefront of patent applications (>10.000)
and industry specialisation in the fields
of “Telecommunication”, “Audio-visual
electronics”, and “Computers”. From the
market perspective, the Chinese middle-class
is enthusiastic about consumer electronics
and information and communication devices.
Therefore, they represent a strongly growing
market that no electronics company wants
to miss. in order to set foot into the Chinese
market for electronic products, the importer,
seller or manufacturer has to comply with a
distinctive set of market access rules, namely,
the China Compulsory Certification (CCC).
local branches are only responsible for market
surveillance and on-site inspections. After
filing the application, the certification body
will secure a sample product and conduct
respective tests in its own designated lab.
On-site factory inspections are required in
order to confirm quality standards, prove the
implementation of processes, documentation
and to ensure traceability and the consistency
of the actual product and the type-tested
sample. The application procedure takes about
2-3 months with costs depending on the type
of product. Upon approval, the CCC mark is
valid for five years. Any modification of the
product must be filed to the certification body
and might result in the necessity to renew
the certification. Follow-up inspections and
tests are common to ensure the consistency of
the actual product with the original certified
sample. However, due to the sheer amount of
electronic manufactures and traders in China,
the authorities focus on subsidiaries of famous
international brands or big local Chinese
factories. Follow-up inspections at the overseas
factory of an importer involve much more
coordination efforts and are often avoided.
The regulation is according to GB standards,
which is based on the international electrotechnical Commission (ieC) and resembles
very much european standards. it covers 135
products divided into 20 categories, including household appliances, motor vehicles,
medical devices, lighting apparatus, cables and
wires, information technology equipment (iT),
etc. if the respective product falls into one of
the defined categories, the importer, seller or
manufacturer ("the applicant") must entrust a
certification body designated by the Chinese
government to carry out the certification procedure. The largest professional certification body
is the China Quality Certification Centre (CQC),
which is mainly responsible for the certification
of industrial and household products. in general, there are different certification bodies for
different product categories, e.g. wireless electrical devices or agricultural machinery. However, in certain cases companies can apply for
an exemption from CCC, e.g. if the imported
product is directly used by the end consumer
for maintenance or replacement reasons.
Challenges encountered in practice
Application Procedures
All applications have to be filed at the
responsible certification body in Beijing. The
34
When asked about the challenges with the
China Compulsory Certification, international
certification companies commonly state that
“it is almost impossible that everything is
sorted out from the beginning”. it starts with
the simple question how to define whether a
certain product has to be CCC marked. The
certification bodies, like CQC, judge whether
the products are within CCC scope according
to applicable ieC or product standards.
However, the supervisory department,
such as customs, sometimes applies the
harmonised system code (HS code) instead.
This constellation stipulates the necessity to
confirm the status with both authorities before
importing the respective product. Ms. Guo Jing,
Market Access Manager at DeKrA Shanghai
confirms that “many technical requirements
are not very transparent and details are in
Chinese only”. Also, for foreign companies, it
is more difficult to obtain the CCC due to “the
complex procedures, such as customs clearance
of samples, communication with CQC test
engineers or special technical requirements
issued by CQC”. Therefore, foreign companies
might especially want to consider working
with an international certification company
that can support and monitor the application
procedure. local companies usually do not
struggle with obtaining timely and direct
updates on legal and technical requirements,
but might encounter high costs for re-testing,
adjustments and modifications when failing an
application.
The Compulsory Product Certification was
implemented after China joined the WTO.
it follows the basic approach to safeguard
consumer rights and interests, and to protect
personal and property safety. in March 2009
the Chinese authorities surveyed the status
of the CCC. They identified a penetration
rate of 90.43%, meaning the vast majority of
companies obligated to obtain the certification
were either in the process of application or
already passed successfully. in conjunction
with China’s aim to further strengthen its
position in the global electronics industry,
current ambiguities and challenges underlying
a CCC are expected to be smoothened out step
by step. HB
Contributors:
Guangdong Zhenghao Yonghang is
a full-service law firm situated in Zhuhai with
customers all over China and a professional
team formed by European and American
educated lawyers. Further information at
http://www.zhyhlawyer.com
DEKRA SE is one of the world’s leading
expert organisations with more then 2,000
employees being committed to ensuring
long-term safety, quality and environmental
protection. Together with the subsidiary
KEMA Quality, DEKRA has been operating
five product testing laboratories in China
since last year. Further information at
http://www.dekra.com/en/industrial
www.china.ahk.de
35
BUSINESS FOCUS
COVER STORY
The Electronics and
Electrical Industry in China
China successfully took over first place in producing
electrical and electronic goods – but the fast economic
success has left the environment behind.
Switching Camouflage for Blue Environmental Impact of the Industry
Back in the '80s, this sector was still in its
infancy. China introduced economic reforms
and an open door policy. At that time, excessive
production capacity in the military industrial
complex was converted into manufacturing
lines for basic home appliances such as TV
sets and refrigerators. local governments set
up one firm after another and soon, with the
use of their sales channels and networks, these
companies developed from technological
backwardness to big players that could rival
with foreign-affiliated firms.
While the economic benefits of sustained
growth have contributed to poverty alleviation
and improved living standards in China, it
has also raised concerns related to energy use,
environmental degradation, workers’ and
consumers’ safety. The energy and resource
consumption of the Chinese electrical and
electronics sector remains high compared
to international best practices. Furthermore
unhealthy and unsafe working conditions,
including nonessential use of toxic and
hazardous substances as well as e-waste from
the recycling and disposal of used electronic
goods remain major issues for this industry.
in China, the electrical and electronics industry
then developed into a major manufacturing
branch involving stunning growth rates after
the mid-'90s, making a clean sweep to the
status of a global leader in the production of
refrigerators, air conditioners and TV sets and
similar electrical appliances, supported by a
rising domestic demand for consumer goods
and an overall shift of world production from
west to east.
nonetheless the Chinese government has
recently taken full hearted actions to cap the
waste of natural resources and steer the electric
and electronic industry into a green future.
A new regulation drafted by the Ministry of
industry and information Technology (MiiT),
which will be effective on 1st January 2011,
requires producers and importers to pay into a
national fund that will subsidise the recycling
of discarded electrical and electronic products.
Boosted by WTO accession in 2001 and
enhanced economic liberalisation, China
was ready to fire its exports on a large scale
to overseas markets and enjoyed an average
annual market growth of 23%.
in addition and against the backdrop of
aggressive policies such as energy shut-offs and
severe taxation targeted at inefficient plants,
the central government of China recently
reported a 15.61% reduction in energy intensity
from 2005 levels. There is also a consumer and
industry trend towards energy-saving products
and an energy efficient production fuelling the
green development of Chinas electrical and
electronic sector. Management consultancies
point out that the demand for energy efficiency
is a billion euro market. The ee industry, with
its raft of diverse products, is likely to snap off
a good share of it by providing products such
as energy-efficient electric motors.
Collar
The global electrical and electronic industry
is an economic heavyweight with its centre
of gravity lying in Asia. Its heterogeneous
structure and interdependent segments make
it difficult, even for experts like the German
Electrical and Electronic Manufacturers’
Association and the Federal Statistical Office,
to define which individual sectors fall within the
definition of this manifold industry.
With increasingly internationalised division
of labour, Ger many stands out as the
major European exporter of electrical and
electronic goods. The country focuses on highprofile capital goods, such as switchgear,
semiconductors, electric motors as well as on
intermediate goods that require sophisticated
manufacturing processes and add up for 89%
of the total national production in this sector.
In contrast to Europe, the Asian continent, with
China stemming almost one third of world
production in 2007, dominates the production
of electrical and electronic consumer goods,
driven by low labour cost and minimum
hurdles on the manufacturing processes of
such products. However a remarkable two
thirds of electrical and electronic products
exported by China already classify as capital
goods of the segments information technology,
communication technology and electronic
components and systems, confirming China’s
desire to push forward to higher-value market
segments.
36
in 2006 the US watched China, led by FDi
inflow and export-orientation, whiz by and
conquer the number one position in the
electrical and electronic goods global market.
Today, this market, which according to the
ZVei is 10% larger than the entire eU-27
market, is characterised by fierce competition.
German exporters scramble for a vanishingly
low 1.1% market share. However, as a recent
Deutsche Bank research study argues, the
potential for German exporters in this attractive
market remains huge, “especially as per capita
sales here are still far lower than in europe or
in the Americas”, according Mr. Philipp ehmer,
Senior economist at the Deutsche Bank.
Consumers will increasingly buy lighting and
household appliances that meet energy-saving
standards. According to the German Federal
environment Agency this trend would allow
Germany to save eUr 4bn annually through
www.china.ahk.de
improved standby operation of electrical
products.
national and eU policymakers catalyse those
industry trends by enacting regulations for
products that are sold on the eU market.
Framework directives such as the eco-Design
Directive of energy-using Products and
energy-related Products (euP/erP), as well
as regulations on chemicals and their safe use
(reACH) and the restriction of the use of
certain hazardous substances (roHS), cause
high costs and risks of non-compliance to
businesses worldwide.
Chinese small and medium-sized enterprises
(SMes) and other suppliers who do not receive
assistance in second and lower tiers of the
ee industry are struggling to find reliable
information and a management response to
this challenge. These SMes are the backbone
of the Chinese manufacturing sector, but due
to fierce competition and lack of resources,
devote only limited investment to addressing
environmental and social issues often perceived
as non-core business requirements. The result
is unhealthy and unsafe working conditions
and a heavier burden to recycle and treat waste
on the consumer market.
European Expertise for China’s
Green Future
in 2008, the european Commission launched
the SWiTCH-Asia programme with over 30
projects in 14 countries for an overall budget
of eUr 90mn to help interested consumers,
businesses, and supporting associations
switch to a more “sustainable consumption
and production”. Under this umbrella,
the SWiTCH-Asia project “improving
environmental and Safety Performance in the
electrical & electronics industry in China”
is implemented by a consortium led by the
Delegation of German industry and Commerce
Beijing and consisting of partners such as the
China national institute of Standardisation
(CniS), China Standard Certification Center
(CSC) and the Chinese institute of electronics
(Cie). representing the private sector, project
associate Deutsche Telekom supports the
project by contributing its international
experience in sustainable supply chain
management.
and standards. With the recently launched
e-learning platform on eco-efficiency, OHS
and CSr and the growing involvement of the
ee industry large players in China, the project
will reach out to the wider pool of SMes
throughout the supply chain.
Within a timeframe of four years, the project
training and certification programme will
encourage more than 500 Chinese SMes to
improve the eco-efficiency of their products
and manufacturing processes, as well as
their workplace safety and corporate social
responsibility (CSr) through complying with
international standards and best practices.
Companies will also be incentivised to integrate
advanced management instruments such as
carbon footprinting or flow-cost accounting
with a view to reducing negative impacts on
China’s environment caused by the production
of electrical and electronic goods.
in turn, european businesses will benefit
from strengthened partnerships with more
reliable Chinese suppliers. Through project
training, this will comply with green supply
chain requirements. Furthermore, business
opportunities may arise for those companies
that can feed the demand of Chinese SMes for
state of the art machinery and clean technology
needed to achieve efficiency targets.
in addition to the project benefits for
companies, Chinese auditing and certification
bodies will also be enabled to improve capacity
on standards management, eco-efficiency,
Occupational Health and Safety (OHS) and
CSr practices.
Currently, regional launch events are
implemented in 5 cluster regions of the ee
industry in order to promote participation
of local SMes in the project activities and
gather support from provincial and municipal
authorities. To date, more than 500 SMes
received training on sustainable production
Project SWITCH Asia
European Commission co-financing
EUR 2,079,270.22
Target Sector
Electrical and electronics industry in China
Mr. Igor Darbo, Team Leader of the SWITCHAsia Project “Improving Environmental
and Safety Performance in the Electrical &
Electronics Industry in China”, oversees the
management of the joint European-Chinese
team and cooperation mechanism between
the project partners, associates, experts and
relevant stakeholders. To learn more about
the project, please visit the project website
(www.switch-china-sme.eu) or contact
Mr. Darbo directly at:
* [email protected]
37
BUSINESS FOCUS
COVER STORY
Innovation is Key to Gain
Lead in the Chinese Home
Appliance Market
China has become the number one market
for home appliances manufacturing and
consumption market across the globe. The
Chinese home appliances market is a thorny
rose, fascinating and captivating but with risks.
To try to understand why some global brands
have outperformed the others requires a deep
look back into their early years in China. Since
the '80s of last century, hundreds of global
home appliances companies have come to
China and tried to establish themselves in the
market. Over 30 years later, only a few of
them have survived, amongst which Siemens,
Sony and Samsung are the most representative
ones. By studying their successes, it is not hard Sticking to High-End Strategies:
to understand their secrets to winning in China:
From Red Sea to Blue Sea
sticking to high-end strategies and focusing on
In the late '80s and '90s, many international companies entered China,
technological innovation.
a virgin market where consumers were eager for almost every kind of
goods after a long time of supply shortage. The market was alluring
with huge opportunities. However, soon after entrance, these global
brands started to realise that this market was much more complicated
than they thought. The flourishing supply provided opportunities, but
also bubbles, where risks and traps were hiding below. That was when
some companies won their battle on the market, while others gave up or
failed, only a few of which attempted to stand up again.
One of the latter has been Siemens. Being the leading company in the
home appliances market today, its early struggles in China seem to have
never existed. During the first three years after the establishment of its
first subsidiary in 1994, Siemens faced nothing but bad revenues. In
1998, the situation reached its climax forcing Siemens to choose between
closing its company in China or drastically changing its strategy. Other
companies and competitors of Siemens were leaving the market and the
future didn’t seem to have an optimistic outlook, making the decision
even harder. Despite all that, Siemens decided to stay and to re-enter
the market, but this time in a different way. First of all, the company
changed its local management and increased its investment to USD 8mn
for China alone. Mr. Gutberlet, who was the President and CEO of BSH
Home Appliances (China) Co. Ltd. at that time and was later promoted
to be the President and CEO of BSH group, planned and executed a
complete reconstruction of both the Siemens brand and marketing
strategy. Siemens abandoned the low-end sub-brand Yangzi Refrigerator,
38
www.china.ahk.de
which was stuck in a severe price war, and started to provide high-end
Siemens refrigerators.
ever since, Siemens Home Appliances affirmed its high-end brand
strategy and finally struggled through the tough red sea to the blue
sea. Thanks to its precise positioning and marketing strategies, Siemens
won high recognition and preference amongst consumers in first tier
and second tier cities. According to CMM reports, Siemens has already
become the number one global home appliances brand in China now.
Focusing on Technological Innovation
right positioning with market insights and appropriate, well-executed
strategies alone cannot lead companies to success without technological
innovation. All the outstanding brands, including Siemens, Sony and
A.O Smith have all been investing heavily in r&D, obtaining unique
technological advantages. Mr. Gerke, current President and CeO of BSH
Home Appliances (China) Co. ltd. believes that only innovation could
bring Siemens to rank in the top three of all sub markets. According to
him, it’s the only way to gain long-lasting success.
Siemens difficulties and successes are an echo of the Chinese home
appliances market’s development. Despite its bubbles and disorders
in the early years, China today has already become the largest home
appliances manufacturing and consumption country. in the just
released national 12th 5-year plan, government has again strengthened
the importance of resource optimisation, technology innovation, and
standard production and distribution in the home appliances industry.
The plan also encouraged home appliances companies to realise
technology advantages instead of low-price advantages to win in the
more severe international competitions.
it is reasonable to believe that vision, rules and innovation are also the
top 3 elements of success for all home appliances companies in China.
Only those who can appropriately target the high-end market and focus
on technology innovation with deep understanding of its consumers
despite all the difficulties will become the winners of the Chinese home
appliances market.
Various concepts in the refrigerator market have emerged, including
3-door refrigerators, French-door refrigerators, non-frozen refrigerators,
etc. Most of these concepts are just a pretty name for promotion and
cannot provide consumers with any actual benefit. As a matter of fact,
consumers do not care about how companies make a refrigerator, or
whether it is defined as a high-end one. What they really care is whether
the product can provide outstanding preserving effect. in fact, the one
that preserves food the best for the longest time is a high-end one.
This is why the Fresh Cool technology launched by Siemens has been
one of the most recognised standards of a good refrigerator for a long
time. Siemens would not have targeted this technology without its deep
understanding of consumer needs. Siemens is aiming at providing
products fulfilling people’s needs and even potential needs. This is why
its series products, including a 3D polar wash washer-dryer, vacuum
fresh cool refrigerator and inspiration water heater, have all been warmly
welcomed by consumers.
To focus on innovation and further include it into the company’s strategy
during turbulent years is hardly bearable. The financial crisis hit the
home appliances industry severely, forcing multinational companies
with large percentages of fixed assets to cut their budgets not only in
innovation but in their investments in order to survive. One of them was
Panasonic, which announced an investment cut of USD 1.5bn in 2009.
Toshiba did the same in regards to equipment investment, cutting over
JPY 540bn in value.
While downsizing seemed like the only option for some, Siemens Home
Appliances decided to further focus on innovation and enhance its
investment in China. “The economic downturn is a crisis, but it is also a
good opportunity. And Siemens never traded its long term development
for short term profits,” said Mr. Gerke, “By expanding manufacturing
bases, speeding up technology innovation, enriching product portfolio
and establishing more integrative channels, we have produced
impressive double-digit growth.”
in fact, capturing the expansion chances provided by the economic
downturn, Siemens Home Appliances has established three
manufacturing bases, set up five r&D centres, and has established
an r&D team with over 300 professional staff in China. it has also
developed better distribution channels not only in first tier and second
tier cities, but also in third tier and fourth tier ones. Besides, Siemens
Home Appliances has started cooperation with various third parties
including real estate constructors and interior designers.
Ms. Liu Bin, Marketing Director BSH, Siemens Ltd., China
Contact via:
025 - 8470 1918 * [email protected]
39
BUSINESS FOCUS
Rare Earth Curbing by
Chinese Government
Is the world — after surviving the oil and economic crisis — now slipping into a new
raw material one? What happens when the highly demanded rare earth materials from
China are no longer available to industrial companies worldwide?
At the Beijing rare earth Workshop in midSeptember, about 50 prominent participants
from economic, political and other
organisations discussed the recent high
profile issue regarding China’s decision to
limit exports of rare earth.
This comes at a time when China extracts
97% of rare earth worldwide — basically
a monopoly — and also owns about
40% of worldwide reserves. Though not
immediately visible, limiting the availability
of these materials will have a crucial impact
on important industry branches. rare earth
is needed in branches like the metal working
industry (35%), ceramics and glass industry
(25%), automotive industry (20%), electrical
and electronics industry (13%), as well as
in other important branches like renewable
energy or even military technology. For
example, a single Toyota Prius hybrid
car needs about 15kg of rare earth, and a
modern computer chip consists of about 70
metals, mainly coming from rare earth.
Consequently, the Chinese government’s
decision to drastically reduce the export of
these materials led to a political earthquake
in industrialised nations worldwide. China
argues that it wants to condemn illegal
exploitation and focus on a sustainable raw
material basis. The Ministry of Finance and
Commerce (MofCom) stated that since the
mid-‘90s, China’s deposits of rare earth have
already decreased by 37%.
40
At the rare earth Workshop in Beijing,
Ms. Jutta ludwig, Head of the Delegation
of German industry in China and board
member of the German Chamber of
Commerce in China, stated that there
are reasonable concerns to think that the
Chinese government is downplaying the
situation. Other attending experts like
Dr. Peter Buchholz, representative of the
German Federal Agency for Geosciences and
natural resources (BGr), and Dr. Harald
elsner, one of the most globally reknown
economic geologists in the area of rare earth,
were also very concerned about the recent
developments in China. Although they said
there are sufficient sources of rare earth
outside of China — for example in Vietnam,
Malaysia and india — it will take time to set
up exploitation sites. Furthermore, many
of these sources have a lower concentration
level, and consequently, exploiting them will
be more expensive. Another obstacle is that
exploiting rights of many of these sources
already have been sold to big non-european
companies, which will make it more difficult
for european companies to get fair prices.
let alone potential future consequences, shortterm implications of the Chinese rare earth
curbing are very severe. Since the measurements
include a lot of economical and political
calculus, the world is likely to face some supply
bottleneck in the near future. Actual BGr-data
shows that the future, especially after 2012,
holds a lot of question marks.
Professor liu Shuchen, representative of
the information Centre of the Ministry of
land and resources (Mlr), pointed out
that the Chinese government is mainly
focused on closing the approximately 1000
illegal exploitation sites in China. They
make up for about a sixth of the exploitation
(around 20,000t per year). in the future the
exploitation will be controlled through state
licences. rare earth curbing, now openly
admitted, has three main goals according
to Mr. liu: to restructure the market, to get
reasonable prices for rare earth material and
to protect the Chinese environment.
The workshop and other activities of the
German Chamber in Beijing aim to address
this crucial industry issue. Previously, the
Chamber organised economic delegations
and briefed the German Minister of economy,
rainer Bruederle, on the situation when he
recently met with his Chinese counterpart.
The rare earth topic also raised important
concerns in Germany. The president of the
Federal Association of German industry
(BDi), Hans-Peter Keitel, recently stated that
China’s curbing had seriously tightened the
situation for German companies. Shortly
before that, the German Chancellor, Angela
Merkel, also addressed the issue when
meeting with China’s Premier Minister
Wen Jiabao, as per the concerns of many
important German companies. iS
NORTH CHINA
www.china.ahk.de
Energetic metropolis Shenyang
becomes China’s new showcase of
economic transformation
With its more than 7.7mn inhabitants, Shenyang is, according to recent studies on regional
competitiveness among Chinese metropolises,
ranked worldwide among those cities with the
greatest potential for economic development.
Closely located to the Beijing-Tianjin hub, the
industrial city of Changchun and to the port
city of Dalian, Shenyang builds a perfect gateway to China’s booming northeastern region.
To underline the growing importance of the region, the provincial government of liaoning is
dedicated to developing Shenyang into another
showcase of successful economic transformation. For that they want to merge its strategic
location and its long developed industrial roots
with innovative future technologies.
Favourable Investment Location
investment in liaoning only started to become
popular among global Fortune 500 enterprises
in recent years. MnCs from various industries
have already established and set up business
operations in Shenyang, including General
Motors, Toshiba, nokia, BASF, ABB, Panasonic
and Siemens. lntel selected Dalian to invest
USD 2.5bn in Asia’s first 300mm wafer fabrication facility. Auto maker BMW set up a joint
venture and built a first production line in
Shenyang in 2004. BMW Brilliance Automotive
became so successful that German headquarters decided to invest USD 750mn in a second
factory for their 3 and 5 “long” Series. Other
major industries include equipment manufacturing, machinery, chemicals and electronics.
According to the revised 2010 World Bank
analysis of the economically strongest regions
below the national level, liaoning ranks first
in economic growth and is listed as the top
global growth province. As a matter of fact,
within China, liaoning Province has surpassed
Shanghai in terms of total GDP. in April 2010,
the State Council of China approved a national
development strategy for the Shenyang Metro
Area. The core of this strategy is innovation
in industrial development, integration of the
eight cities, integration of urban and rural areas
as well as interventions towards more marketoriented development. The fact that the “rejuvenation” of Shenyang and the northeastern
Shenyang is the core of China's fast developing liaoning province
region is also at the top of the agenda of the
Central Government in Beijing underlines the
tremendous potential.
Strong Industrial Roots
Shenyang is a traditional industrial base in
the People’s republic of China and can be
compared with the German “ruhrgebiet”. it
has an industrial system attracting and supporting investments in the field of mechanical
processing. This embraces the automobile,
petrochemical, aviation, pharmaceutical, building materials, metallurgical, textile, electronics,
coal and light industries - just to name a few.
no less than 44 among 77 types of equipment
products manufactured in Shenyang are top
ranked in China when it comes down to technical level and market share. Hence, Shenyang is
well-known in this regard all over the country,
and is even famous worldwide for producing
heavy machine tools, complete sets of highvoltage equipment for power transmission
and transformation, heavy-duty mining and
metallurgical equipment, non-ferrous metal
smelting equipment, petrochemical engineering equipment, large-sized cement production
equipment for superhighway construction, and
many other products.
Unique Selling Proposition –
Shenyang’s ‘key advantages’
Shenyang lies right in the centre of liaoning
Province. it is also the centre of northeast
Asia and the hinterland of liaotung Peninsula
along with the cities of Anshan, Benxi Fushun,
liaoyang, Tieling and Yingkou. A well-trained
Unknown
Heavyweight
industrial labour force works there for wages
below national average. The current minimum
wage of liaoning is between rMB 500 and
700 per month (about USD 73 to 102), much
lower than competing provinces like Zhejiang,
Guangdong or Jiangsu. At the same time, the
cost of living and cost of business operations
is equally below the national average. in Shenyang there are also a lot of industrial colleges,
related research institutes and some of the best
vocational schools in China. Many families
have a strong industrial background, working
at the same enterprise for generations, thus
passing on technical knowledge from one generation to the other.
Already holding the densest railway network
in China, the provincial government is constructing high speed trains between Dalian and
Harbin, and from Shenyang to Beijing. liaoning’s major six airports (Shenyang, Dalian,
Anshan, Jinzhou, Dandong and Chaoyang)
are linked to the United States, Japan, russia,
Germany, Korea, and Hong Kong, as well as to
over a hundred large or medium-sized cities
in China. A comprehensive integrated transportation network, which connects the ports
as gateways, railways as arteries and roads as
backbones, is also well established.
The central government has recently confirmed
in documents concerning the next five-year
plan (2012-2016) that preferential policies will
continue and that major additional budget
allocations are to be expected. They will particularly focus on two regional economic
development schemes. One will focus on the
strengthening of synergies of coastal areas in
liaoning along the Bohai Gulf (Ber Belt =
Bohai economic rim). The other will promote
the inland Shenyang economic Area (Shenyang
Megalopolis)
Chances are good that liaoning will further
develop to become the backbone of China’s
industrial strength. Shenyang will be at its core
and serve as the main industrial and manufacturing base. CF
41
BUSINESS FOCUS
SOUTH & SOUTHWEST CHINA
Meeting for business in Macau? What other
business could that be than the one of gambling? The image of a gambling capital is right
there when speaking of the Special Administrative region (SAr) on the western side of
South China’s Pearl river Delta.
However, the local government has been doing a lot
lately in order to diversify the economy of the
SAr.
The home of about
550,000 citizens
clearly benefits
from its gambling
industry. Since the
end of the monopoly in the gambling
industry in 2001,
the annual GDP has
more than tripled to
USD 21.17bn in 2009,
with the gaming sector
accounting for 71.1% of it.
Macau has already surpassed
las Vegas in terms of gambling revenues. The government, however, does not
want to rely on only one sector despite its 9.6%
growth last year. Building on its position in
tourism and gambling similar to las Vegas,
the government is trying to position Macau as
a MiCe (Meetings, incentives, Conferences,
and exhibitions) industry centre. last year
saw nearly 1,500 conferences and seminars in
addition to the 80 exhibitions attracting about
700,000 attendees. However, considering that
the total number of Macau bound visitors
reached 21.75mn in 2009, the overall impact is
still limited. Additionally, MiCe sector competition in the Pearl river Delta is already intense.
Tourism will remain a corner stone of Macau,
which has far more to offer than gambling
only. rich in cultural heritage, tourists are also
attracted by the tantalising diversity of historic
european and Chinese architecture of the
former Portuguese colony. naturally, improving the way to get visitors to Macau is a key
objective for the local government. Upon completion, the Guangzhou-Zhuhai light rail will
end directly at Gongbei border crossing. Furthermore Macau’s own light railway, due to be
completed in 2014, will improve getting around
the city. The Hong Kong-Zhuhai-Macau Bridge
is clearly the largest infrastructure project and
is expected to further increase the regional integration once completed in 2016. Competing
with the regions four airports in Guangzhou,
Shenzhen, Hong Kong and Zhuhai, Macau is
trying to find its niche in the market. next to
catering to the dominating visitors from Mainland China, the Airport is trying to develop
itself as a low-cost-carrier hub with connections
42
A whole industry built on
the dream of becoming rich:
the Grand lisboa Casino
towering Macau's city centre
Growing
Pains
Macau diversifies its
economy
to all over
Asia.
With one of the world’s
highest population density,
Macau does not have much space for development. land reclamation projects are a common solution. The former islands of Taipa and
Coloane are now already connected to each
other. Additionally, the government has started
a new land reclamation project which is supposed to be completed in five years. The new
zones will increase Macau’s existing 29.2km²
of land by 12.3%. in contrast to the majority
of previously reclaimed land, it has been announced that no new gaming developments
will be permitted there. instead the government intends to focus on green space, public
buildings and community facilities. it also
intends to occupy some of the space to further
develop business sectors promoting economic
diversification. next to traditional offshore
banking, this also includes iT solutions, which
are needed to reduce Macau’s heavy reliance
on gaming and tourism.
in recent years local authorities have increasingly invested in the education sector. Between
1999 and 2008 its investment into non-tertiary
education has more than tripled amounting to
USD 305.64mn. Furthermore, a new campus of
the University of Macau is being built on Hengqin island. Although the neighbouring island
belongs to Zhuhai, the campus will be under
Macau jurisdiction and connected to Taipa via
tunnels. Additionally the Macao Polytechnic
institute is also expanding its campus. Thriving
all the projects, the government is clearly acknowledging that a well educated youth is the
key to a successful economy as it will lay the
foundation of any further diversification.
Macau’s gaming industry greatly benefited its
economy. Gambling has created a well paying
sector but it has also crowed out other industries leaving Macau in a dilemma. On one
hand, the Special Administrative region wants
to further expand its position in gambling and
tourism, on the other hand its limited resources
in land and labour are a major obstacle in diversifying the economy. it will not be an easy
task for Macau to diversify its economy but by
focusing on education and resulting innovation, it definitely does have the potential to get
there. Hopefully further integration with its
neighbouring city Zhuhai as well as its close
connection to other economies with Portuguese
roots provide Macau the necessary opportunities to go beyond gambling. CSS
Old village in Taipa with strong Portuguese influence

Part 1 - AHK Greater China

Transcription

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