june - july 2007 gc ticker - · pdf filedr. hans schniewind chairman ... documentation and...

Köhler in China

In this issue:

Energy Efficient BuildingThe New Detroit of ChinaChamber News & Events

GC Ticker June - July 2007

Beijing • Guangzhou • Shanghai

SHANGHAI (CN) · KLAUS (A) · RUGGELL (FL) · CHICAGO (USA)

Room 1101, 555 Nanjing West Road, 200041 Shanghai

Contact person: Oliver Lorenz, [email protected]

Tel. +86 (0) 21 / 52 13 66 00 - 800

Wherever you are doing business, we provide

tailor-made solutions. If you know the local

code everything is easy.

Montfort Shanghai utilizes all local market

communication channels to facilitate you in

developing new customers, consolidating

customer relations and exploring sales potential

wherever you are.

Networking: Cracking the code.

M O N T F O R T S H A N G H A I

www.china.ahk.de � | June - July 2007

How long will it last?

ForewordJu

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Dear Members,The German Chamber of Commerce • China continues to grow, total membership numbers currently comprising over 1,300 members. The underlying factor for this positive development is the steady influx of German compa-nies to the Middle Kingdom. But how long will this investment boom continue?

Countervailing factors make it difficult to provide meaningful forecasts, however it seems reasonable to prepare for changing investment profiles regardless of whether investment continues to follow its current upward trend or not. Change has other dimensions in addition to overall volume.

First, there is a geographic dimension. Locations outside the traditional clusters in China are becoming more at-tractive to investors. China’s north-west and central provinces are cases in point, featuring favourable cost lev-els and much improved infrastructure. More purchasing power and more absorbent regional markets also play a role. On a yearly basis, the regional shift of German investment to these regions may not be immediately visible, however a pattern appears if viewed over five to 10 years. The German Chamber • China is responding to this by offering increasing services to member companies outside the big centres of Beijing, Guangzhou, and Shanghai.

There is also a legal dimension to shifting investment patterns. Over the past few years, most investment by the German Mittelstand in China was undertaken in the form of so-called ‘Wholly Foreign-Owned Enterprises’, replacing Joint Ventures as the mode du jure.

China has made substantial progress on its way to becoming a market economy. In many cases, private domestic players are formidable com-petitors to German companies. By the same token, domestic players are interesting partners. As the legal environment evolves, Sino-German mergers and acquisitions (M&A) will become a more realistic option. German investors may take minority or majority stakes in their Chinese counterparts – as will Chinese companies in Germany. In fact, M&A might come to represent a much bigger proportion of German investment in China, meaning it might become less visible. This could blur the dividing line between foreign and domestic players – a trend also seen in other markets.

The German Chamber • China is carefully observing these shifts and there is a continued dialogue within the Chamber how to set the future development course. One important element in the Chamber’s strategy is to provide added value to Chinese-German cooperation by supporting educational and cultural projects. The underlying principle of all the Chamber’s activities is to contribute to the positive development of China and to amicably cooperate with the domestic authorities. We want intensify our dialogue with the Chinese authorities and to nurture trust. Perhaps one day the German Chamber of Commerce will be allowed to accept Chinese member companies, which would take care of the second dimension of a changing investment profile as mentioned above.

If you have any suggestions for how the German Chamber • China should prepare for the future please contact us.

Enjoy Reading!

Dr. Hans SchniewindChairman | German Chamber | Shanghai Board

German Chamber of Commercein China • Shanghai29/F, POS Plaza, 1600 Century AvenuePudong, Shanghai 200122Tel: +86-21-5081 2266Fax: +86-21-5081 2009E-mail: [email protected]: www.china.ahk.de

German Chamber of Commercein China • Guangzhou2915 Metro Plaza, Tian He North RoadGuangzhou 510075 Tel: +86-20-8755 2353Fax: +86-20-8755 1889E-mail: [email protected]: www.china.ahk.de

German Chamber of Commercein China • Beijing0811 Landmark Tower 2, 8 North DongsanhuanRoad, Chaoyang District, Beijing 100004 Tel: +86-10-6590 0926Fax: +86-10-6590 6313E-mail: [email protected]: www.china.ahk.de

June - July 2007 | �

GCC CommitteeJu

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Beijing

Shanghai

Guangzhou

Siemens Ltd. ChinaPresident & CEODr. Richard Hausmann**Board Member

Nordex Energy GmbH, Beijing Representative OfficeGeneral ManagerMr. Hans von SchaperBoard Member

Rittal Electrical Equipment (Sha.) Co., Ltd.Managing DirectorMrs. Bettina Schön-Behanzin*Vice Chairman

German Chamber ShanghaiExecutive DirectorMr. Manfred Rothgänger*Board Member

Siemens Mobile Communications Ltd.President & CEODr. Fan Zhijian*Treasurer

Dresdner Bank AG Shanghai BranchGeneral ManagerDr. Hans Schniewind*Chairman

German Chamber GuangzhouExecutive DirectorMs. Alexandra Voss*Board Member

FAW-VW Audi Regional Director-South China Mr. Laurent Rung*Chairman

Siemens Ltd. China Guangzhou BranchVice President - GM in GuangdongMr. Keith Poon*Board Member

ThyssenKrupp (China) Ltd. President & CEOMr. Alfred Wewers*Chairman

German Chamber BeijingExecutive DirectorMrs. Jutta Ludwig*Board Member

DaimlerChrysler North East Asia Chairman & CEO Mr. Ulrich WalkerBoard Member

Allianz General Representative Office BeijingChief RepresentativeDr. Jörg-Michael LutherTreasurer

China Gruner & Jahr AG & Co. KGPresident & General ManagerMr. Wolfgang KohlBoard Member

Lufthansa German AirlinesChief Representative for ChinaMr. Gregor WendeBoard Member

Bayer (China) Ltd.General Manager/Corporate CommunicationsMr. William ValentinoBoard Member*

Lufthansa German AirlinesManaging Director Greater ChinaMr. Arved von zur MühlenBoard Member

Demag Cranes & Components ShanghaiManaging DirectorMr. Thomas DornBoard Member

TRUMPF SiberHegner Ltd.Managing DirectorDr. Eva Schwinghammer Board Member

Taylor Wessing Shanghai Representation OfficePartnerMr. Ralph Vigo Koppitz Board Member

Allianz China Life Insurance Company LimitedCEOMr. Christian MoltBoard Member

**Chairman of the All-China Board *Member of All-China Board

C. Melchers GmbH & Co. GuangzhouChief RepresentativeMrs. Renate Tietjen*Board Member


Foreword

GCC Committee

Members MixFocus

News and events

Meet the members

Specials

Neighbouring ProvincesSpecial overview

News and events

Chamber News & EventsChamber teams

Recent events

New members

Useful contacts

Coming up

Out & AboutMonthly highlights

Exclusive This MonthHealth

Education & Training

Giving Back

Benefit Program 2007 - 2008

Associate Partners

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The GC Ticker is the internal bi-monthly news-letter of the German Chamber of Commerce in China.

PublisherGerman Chamber of Commerce in China

Managing EditorMs. Emma Schumacher-Voelker (Shanghai)

Editorial TeamMr. Walter Jansen | Ms. Katrin Loch (Beijing)Mr. Paul Gervais (Guangzhou)

Regular ContributersSigrid Seel, Paul von Wittgenstein, World Link Medical & Dental Centers

DesignImage Check Shanghai

GC Ticker is free of charge. For subscrip-tion or extra copies please email your nearest Chamber office

Other issues of the magazine can be found on our website: www.china.ahk.de/en/chamber/shanghai/

For editorial or sponsorship enquiries please contact:

German Chamber of Commerce in China

Beijing OfficeGerman Chamber of Commerce in China • BeijingTel: +86-10-6590 0926 ext. 324Fax: +86-10-6590 6313E-mail: [email protected]

Guangzhou OfficeGerman Chamber of Commerce in China • GuangzhouTel: +86-20-8755 2353DL: +86-20-8755 8203Fax: +86-20-8755 1889 E-mail: [email protected]

Shanghai OfficeGerman Chamber of Commerce in China • ShanghaiTel: +86-21-5081 2266, ext. 1637Fax: +86-21-5081 2009E-mail: [email protected]

© 2007-2008. German Chamber of Commerce in China. No part of this publication may be reproduced with-out the publisher’s prior permission. While every ef-fort had been made to ensure accuracy, the publisher is not responsible for any errors. Views expressed are not necessarily those of GIC/GCC.

Contents Ju

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Contents

Energy Efficient Building | P6

Neighbouring Provinces | P��

Chamber News & Events | P�6

Giving Back | 68

Company News & Events | P1�

June - July 2007 | 6

The German Chamber of Commerce in ChinaMembers Mix Fo

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Wangfujing Street Hotel, renderingArchitectural Design: crossboundaries architects, Beijing

Local Design Institute: Beijing Institute of Architectural Design (BIAD)

Today’s China is prosperous in many ways: the economy has ben-efited from a change in political strategy and economic expansion has been explosive. It seems the whole country is working like a tireless machine towards a bright and promising future.

This is also visible in terms of real estate, where development has been rapid since the 1990’s. This is especially the case in major cities like Beijing, where one-by-one, old buildings have been torn down while modern commercial, public, and residential build-ings, including high rises and community complexes, have been sprouting up along the old street blocks.

With the 2008 Olympic Games in sight, the speed of development is getting even more frantic. Understanding the market and the eco-nomic environment is extremely important for architects involved in this breathtaking reality, especially as planning applications and other building regulations are more complex than they first appear. The constellation of client, private architect’s office, and local de-sign institute can further complicate the planning process in China.

Planning Process

Foreign architectural companies cannot independently undertake Chinese engineering projects. They must co-operate with local

design institutes (LDIs). This applies to small domestic companies too, if they do not have the required Class A, B, or C qualification.

Co-operation usually takes the following form: the foreign ar-chitectural company (or non-qualifying local office) delivers the design, while the LDI is in charge of the construction – including documentation and supervision. The foreign company can take charge of construction design and supervision, however this is rarely the case as costs are higher. It is the client who determines the workload and contract share of the foreign design company. Which party is in charge of what phase is elaborated in the project contract. The division between the design phase (sche-matic design) and construction phase (including construction documents) makes it more difficult for architects to control and manage the planning process and make sure construction is going ahead as scheduled.

The actual design remains an ongoing process until the very end. Wangfujing No. 45 is a case in point: the original design for the hotel was adjusted by both the participating design institute, the Beijing Institute of Architectural Design (BIAD, the LDI for the project), and the client directly. The main reason behind the adjustments were budget constraints, however other factors played into it. These included both feng shui and functional is-

Small Steps for Long JourneysEnergy Efficient Planning and Building

www.china.ahk.de 7 | June - July 2007

The German Chamber of Commerce in China Members Mix

Unfortunately, comparatively small measures, such as Wangfujing No. 45’s energy efficient windows and sun-shading, are extremely cost intensive. Generally speaking, clients are extremely sensitive when it comes to changes in the budget. Given the relatively low cost of energy in China, the typical client has no real interest in building an energy efficient building and certainly not in going beyond the government’s requirements. Inexperienced clients are especially difficult to convince, as they have less ability to fore-see the benefits of reduced operating costs.

As energy scarcity and prices become an increasing issue in China, so too will energy efficiency in building. The Chinese government and public are beginning to realise how critical the waste of en-ergy and resources is for the nation’s development. As such, it is hoped that energy saving will become a more important consid-eration in the building industry too, leading to the development of a market for higher-priced, energy efficient technologies in construction and systems engineering.

Binke Lenhardt, Architect, M.A.Consultant | Beijing Institute of Architectural Design (BIAD)Principal | crossboundaries architects, Beijing

Marc Schlauch, Dipl.-Ing. (FH) VersorgungstechnikGSN Property Services Co. Ltd. Beijing

Focus

sues, featuring ongoing discussions about façade materials and window openings. Political and marketing issues should also not be discounted in China. Like many ongoing projects, Wangfujing No. 45 has been going through diverse phases affected by these factors. All in all, the architect and construction company must be ready to deal with continuous change, with nothing certain until the last brick has been laid and the opening ceremony held.

Efficiency Considerations

Despite increasing national and local regional energy saving reg-ulations, China’s buildings still lag behind the West’s in terms of energy efficiency. Research shows that 158 million m2 of public buildings, covering 42.5 percent of Beijing city’s built up area, use just over 78 percent of the electricity. Calculating the en-ergy consumption per m2, this translates into large public build-ings consuming up to 17 times more electricity than residential buildings.

Given the many parties involved in getting a building off the ground as well as the still relatively low energy prices, it is per-haps not surprising that implementing energy saving measures is not on the list of priorities of most developers and architects. However, the government is beginning to step in with national and local regulations.

For example, in July 2005 the national energy code for public buildings (Design Standard for Energy Efficiency of Public Build-ings) was issued by the Beijing Municipal Commission of Urban Planning and Beijing Municipal Construction Committee. This standard, applicable to Beijing only, requires that all new con-struction projects be at least 50 percent more energy efficient than buildings from the 1980’s. While showing a clear initiative on the part of the government to implement energy saving in buildings, limited enforcement means that only a few projects with low energy use, water recycling systems, and ‘intelligent’ integrated design and materials are being realised at the mo-ment.

Small Steps for Long Journeys

The goal for the Wangfujing No. 45 project was not to design an unrealistically low-energy use, high-cost building that could not be afforded by the client. Instead, the aim was to seek compro-mises that met the demands of the Chinese market and complied with the Design Standard for Energy Efficiency of Public Buildings. A focus was put on the building’s structure. Using software cre-ated by the German company Solar Computer, the starting point was an analysis of future energy demand.

By comparing different structural designs, the building quality was evaluated in order to develop better solutions in terms of energy efficiency. Higher energy efficiency also reduces operating costs, increases the value of the building, and makes it more attractive to potential tenants. Different design options showed that using additional insulation and optimising the window and sun-shading system could reduce energy demand for heating and cooling by 12 percent and 40 percent respectively.

June - July 2007 | 8

The German Chamber of Commerce in ChinaMembers Mix Fo

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Although relatively small in 2000, the automobile industry is cur-rently one of the fastest developing sectors in Guangdong. Ever since the three large Japanese car manufacturers Honda, Nissan, and Toyota made extensive investments settling in the city, the local pro-duction of vehicles has risen exponentially. As the importance of the Cantonese automobile industry grows, the region regards itself today as an increasingly serious competitor to Shanghai, currently China’s dominant automobile production hub.

Over the past year, nearly half a million cars were manufactured in Guangdong; as a result, the Province has risen to become the second most important car manufacturing base in China. It is expected that the region will further consolidate its position over the next two years, increasing the total production to over one million cars by 2008/2009. This would mean Guangzhou would overtake Shanghai, to take pole position as the ‘new Detroit’ of China.

Although positive, one of the biggest challenges confronting Guangzhou is the dependence on Japanese technology. While German and American car manufacturers engaged themselves in North China

The New Detroit of ChinaSouth China Automobile Sector Gains Momentum

and Shanghai, and French carmakers took over Wuhan in the eighties and nineties, South China initially played no predominant role in at-tracting any significant automotive player.

This changed in 2000, when Japanese carmakers stepped in to fill the void and set out to make extensive investments in the construc-tion of modern production lines locally. Their aim was to build a base for the Chinese segment of their business in Guangzhou. Since then, this aim has become a reality: Japanese cars roll out into dealerships neighbouring prosperous households in the epicentre of the Chinese car boom. They are also benefiting from Guangdong’s well developed road infrastructure, which, according to the 10th Five Year Plan and in view of the Asian Games, will continue to develop well into 2010.

Meanwhile, the local government hopes that the positive develop-ment of the automobile industry in Guangdong will attract new investors from Europe – especially from Germany – to settle in the Province. For investors who are thinking of investing in the automo-tive branch in China, a practical way to test the waters is to visit the Guangzhou International Motor Show, an important instrument for automobile promotion in South China.

The show, which last took place in July 2006, is the third largest automobile fair in the country after Shanghai and Beijing. As such, it is the most important auto-show for the whole distribution area of South China, which includes the Fujian, Guangxi, Yunnan, and Hainan provinces. Especially the luxury segment of the show offers many op-portunities due to the relatively high level of income in the region, which covers two of the top three cities (Guangzhou and Shenzhen) with the highest average income per head in China.

The Fifth Guangzhou International Motor Show will be held from 20th-2�rd November 2007.

(For a full version of this article in German, please visit: China News Report link http://www.aw-portal.de/?main=p10 )

The automobile market in South China’s Guangdong Province is growing rapidly. Guangzhou, the provincial capital, already produces almost the same number of cars as Shanghai.

Comparison of the � Biggest Car Manufacturers in Shanghai and Guangzhou

Region Guangzhou Shanghai

Car Manufacturer Guangzhou Guangzhou Dongfeng Shanghai Shanghai Honda Toyota Nissan VW GM

Founding Year 7,1998 9,2004 6,2003 3,1985 6,1997

Production Capacity 240,000 100,000 250,000 450,000 300,000(Cars/Year)

Production Quantity 231,502 164,755 235,300 331,586200�

Production Quantity 126,357 4,524 101,478 174,065 219,373Q1 and Q2, 2006

China Turnover 108,900 99,000 173,600 201,900Q1 and Q2, 2006

Source: German Consulate Guangzhou



Two hundred years ago, China was the largest economy on earth, and in a few decades, the country will most certainly reclaim that posi-tion. There can therefore be little doubt that the future of China will shape the global economy; the question is in what direction?

In the WWF’s ‘Re-think China’s Outward Investment Flows’ report, released on 25th April, the global conservation organisation examines one of the greatest challenges of the 21st Century: how to combine global economic development with a sustainable use of natural re-sources.

Given China’s role as the manufacturing ‘factory’ of the world, Chinese outward investments are relevant not only for the direct impact they have and the opportunities they provide, but also as an indicator for the world economy. For example, a more sustainable global economy would result in increased demand for cheap sustainable services, something that would result in more Chinese outward investment in high-technology and service sectors, to ensure distribution resource-efficient solutions. On the other hand, a less sustainable global economy will result in more investments to secure natural resources.

Two key challenges exist in relation to global investment flows and global resource use. Firstly, there exists a requirement to ensure that investments aimed at securing natural resources are managed in such a way that they minimise environmental impacts, support sustainable economic development, and benefit the local population. This is the area on which most discussion is current focused; it is important to ensure that countries avoid a ‘race to the bottom’, in which investors and recipient countries are lowering environmental and social stand-ards.

The second challenge, and the primary focus of the WWF report, is the development of a global economy that does not equate increased living standards and quality of life with large-scale consumption of natural resources. This is an area that is often ignored, but as emerg-ing economies start to increase their welfare, it becomes a key point in terms of national security.

From a global perspective, it is obvious that the question of absolute levels of natural resource consumption and the distribution of these resources between developed, developing, and least-developed coun-tries is a vital one in terms of ensuring sustainable development and avoiding conflicts over natural resources.

The global quest for natural resources is closely linked to questions of poverty alleviation, corruption, transparency, regulations of trans-national corporations and human rights. The degree to which the Chinese government and corporate sector are supported by foreign governments and businesses as they engage in these issues will be of great importance.

Rethink on China’s New Role in theGlobal Economy

(Continue on next page)

Focus

June - July 2007 | 10

The German Chamber of Commerce in ChinaMembers Mix

Most natural resources imported to China are re-exported in the form of value-added items or products ready for consumption in other countries. For example, it is often said that China poses a threat to tropical forests by importing tim-ber from Southeast Asian countries, but it must be

borne in mind that 70% of the timber is made into furniture exported to European and North American consumers.

“The current unsustainable consumption patterns in developed coun-tries are spreading to other parts of the world, thereby triggering a global hunt for natural resources and causing the environmental ecosystem to collapse. Intensified by the current economic growth in China, India, and other emerging economies, this trend requires a re-think of how to achieve global sustainability,” said Li Lin, Head of Conservation Strategies, WWF China.

The world needs to depart from its current linear model of economic development that ignores the inconvenient truth that the Earth’s natural resources are finite, and change into a resource-efficient global ‘circular economy.’ The ‘Re-think China’s Outward Investment Flows’ report recommends a ‘triangular approach’ in both global diplomacy as well as trade and investment policy-making, that cat-egorises countries and regions into three groups: providers of natural resources; producers or manufacturers of products and services; and consumers within the global trading system.

“The current Chinese infrastructure and investment patterns being developed and implemented present a window of opportunity to put in place a structure that ensures that both government and business policies in China support long-term sustainable development around the world,” Li said.

If urgent attention is not given to the development of socio-econom-ic models that can provide welfare with drastically reduced natural re-source consumption, China can be expected to dramatically increase its outward investments, in order to secure access to the natural resources it requires to meet the demands of its rapidly emerging population.

If, on the other hand, investment in the developed world is chan-neled into the search for sustainable solutions, China and other emerging economies will be in a position to direct a higher percent-age of their outward investments into high-technology and service sectors, in order to provide the world with the innovative products and services for these solutions, thereby increasing their own welfare as well as that of their trading partners, while reducing consumption of natural resources.

This article is based on WWF report Re-think China’s Outward In-vestment Flows

For more information, please contact Ms. Carine Seror: Tel: 021-61�2 �871 | E-mail: [email protected]

Investments that allow people to increase their welfare while at the same time reducing the utilisation of natural resources, should be promoted. This implies less focus on end-of-pipe technologies that attempt to mitigate the negative effects of traditional industrialisa-tion, and a heightened emphasis on new systems and solutions that provide services and increase welfare while minimising or even elimi-nating negative environmental effects.

As an example, strategic investment in sustainable urban solutions, e.g. energy efficient houses, e-governance, and telecommunications that allow for flexible working environments and telecommuting, will result in a decline in the demand for basic commodities such as oil, minerals, and timber or paper. Such investments would allow society to travel less, use less energy in buildings, and use less paper.

Global agreements reached at major conferences, such as the Johan-nesburg World Summit on Sustainable Development in 2002, have repeatedly stated that the key responsibility for reining in the global quest for natural resources lies in the hands of those countries with the highest resource use per capita, those with the most resources to invest, and those who promote resource-intensive lifestyles. Compa-nies from these countries are also often those which, through invest-ment abroad, are moving much of their polluting and labour-intensive production and manufacturing activities to countries like China.

The main economic driver behind China’s growing outward investment is the country’s need to acquire natural resources to supply products to developed nations such as the US and EU and build economic wel-fare at home through a Western development model.

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The German Chamber of Commerce in China Members Mix N

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Shanghai Daily German Supplement 2007For the 4th year running, Shanghai Daily will be featuring a German supplement in October 2007. Based on the success of previous years, we are expecting a substantial pull out in which we look forward to seeing your company represented.

Shanghai Daily is the largest English language newspaper in Shanghai, read by over 150,000 people every day of which around 50% are Chinese. The German Supplement is thus an excellent way to reach high-level executives from both international and Chinese target groups.

For more information or to book an ad, please contact: Maria Fernandez | Shanghai Daily | Tel: 021-6102 2�� ext 2��E-mail: [email protected]

Extended Office HoursTo meet the demands of our members, business partners and other interested parties, our recep-tion is now open continuously Monday to Friday, from 8am - 7pm to receive visitors and take your calls.

German Ball • Beijing 2007Don’t miss the 7th German Ball on 10th November 2007! With more than 600 guests, last year’s German Ball was completely sold out. Guaran-tee your company a table at this year’s event by becoming a sponsor. But hurry – only a few sponsorship places are still available!

For more information about sponsorship options, please go to: www.china.ahk.de/en/chamber/beijing/

Visa Service for Chinese Em-ployees of Member CompaniesThe Delegation of German Industry and Com-merce • Beijing will soon provide a new visa service to members of the German Chamber of Commerce in China, in cooperation with the German Embassy in Beijing. This service is avail-able for the following regions: Beijing, Tianjin, Hebei, Henan, Liaoning, Jilin, Heilongjiang, Shandong, Shanxi, Shaanxi, Jiangxi, Inner Mon-golia, Gansu, Ningxia, Qinghai, Xinjiang, Hubei, Hunan, and Tibet.

Employees of member companies can submit their application documents to our office and do not have to go to the Embassy for a personal interview (applies to individuals who have been granted a visa to travel to a Schengen country within the past two years). Visas in the follow-ing classifications can be granted: business, visiting, tourist, and transit visa.

The fast track visa means that applicants can usually obtain a visa within three to five work-ing days of submitting the relevant documents. Price: 190 RMB service charge plus German Em-bassy fees (approx. 600 RMB).

Contact:Telephone-Hotline: 010-6��0 61�1 (Monday – Friday 8:�0-12:00, 1�:00-17:�0)E-mail: [email protected] (Chinese): http://china.ahk.de/ch/eiinccoe/��c/

Oktoberfest South China 2007It’s back and this time not only in Guangzhou! This year’s South China Oktoberfest will take place in Guangzhou, Zhonshan, and Shenzhen. Running from 12-22nd Sep-tember 2007, the Oktoberfest is the biggest German event in South China. A tent will host German food and beer, as well as a live German band – the Bavarian Noten-hoblers who appeared last year. Don’t miss out!

For information about sponsorship opportunities, please get in touch with: Paul Gervais | Tel: 020-86�� 820� | E-mail: [email protected]

New edition! German Chamber Membership Directory 2007/08Compiled annually in English and Chinese, the German Membership Handbook is the number one guide to German companies, German partner companies, com-panies engaged in Sino-German trade, associated companies and business repre-sentatives in China and the region. We are currently working on the new edition and have included many new prominent advertising options to better highlight your company.

Give your company colour! Take out a colour ad in this b/w book to boost the visibility of your company in the German business community. Already well known? Why not advertise new services and company features to attract business associates in and newly entering China.

For further details on the placements available and to book your ad, please contact:

BeijingMs. Lina [email protected] Tel: 010-65900926 x 210Fax: 010-65906313

ShanghaiMs. Yandi [email protected] Tel: 021-50812266 x 1609Fax: 021-68758573 x 5609

GuangzhouMs. Grace [email protected]: 020-87552353 x 205Fax: 020-87551889

June - July 2007 | 12


AHK Beijing Signs MoU with NDRC

The Delegation of German Industry & Commerce Beijing signed a Memorandum of Understanding with the International Co-operation Centre (ICC) of the National Development and Reform Com-mission (NDRC) on 10th April 2007. Considering the long-term efforts made by the Delegation of German Industry & Commerce Beijing to promote economic exchange between China and Germany, and in order to facilitate smooth and orderly project implementation procedures between the two countries, it was necessary to establish a platform between ICC/NDRC and the Delegation. Both parties agreed to establish a steady and re-sponsible co-operative relationship.

In compliance with the requirements of the mem-bers of the German Chamber of Commerce, the two parties will co-organise meetings and events, and support each others’ events. Moreover they will join forces to promote the business development of German companies in China as well as economic co-operation between the countries. To achieve these targets, a working committee has been set up. The picture shows the signing ceremony: Mr. Zhang Xiaochong, Director, ICC/NDRC, represented the Chinese side, while Mrs. Jutta Ludwig, Del-egate and Chief Representative, Delegation of Ger-man Industry & Commerce Beijing, Executive Di-rector and Board Member of the German Chamber of Commerce in China, signed for the German side. Zhang Sijia (left), General Secretary, ICC/NDRC, and Mr. Florian Keßler (right), General Manager, German Industry & Commerce • Beijing, are also members of the working committee.

If you have recently had a grand opening ceremony, special company event or have some interesting news that you would like to share with other readers, please send your information (up to 2�0 words) together with any photos to:

Beijing Guangzhou ShanghaiEmail: [email protected] Email: [email protected] Email: [email protected]

Get to know...Hartmut Heine

GM and Chief Representative of Georgsmarienhütte Holding Group, China

Hartmut Heine was born in Bremen in 1954. He studied busi-ness studies and economics at the universities of Münster, Westfalen and Hamburg. Parallel to his studies, he worked full time with C. Melchers & Co. and moved to Beijing to serve as their Representative after obtaining his diploma. Follow-ing this position, he set up offices in Beijing and Shanghai for Salzgitter Stahl GmbH, holding the position of Chief Representative for the Salzgitter Group of Industries in China from 1982 to 1988. In 1989 Mr. Heine moved to the Thyssen

Handelsunion AG as Chief Representative for China and Hong Kong. Shortly thereafter he was appointed Chief Representative for Thyssen AG and Otto Wolff Industrieanla-gen AG. Finally he served as the country head for China and Hong Kong in the newly merged ThyssenKrupp AG from 2000. He also held the position of Chief Representative of Transrapid International in China and Hong Kong in 2001. Mr. Heine has been Gen-eral Manager and Chief Representative of the German-based Georgsmarienhütte Hold-ing Group in China since 2004. The group specialises in alloyed steel; forgings and castings; and components and machinery for the automobile, railway, shipbuilding, and power industries.

Mr. Heine lives in Beijing with his wife Peggy and his sons Henning and Hermann. In his free time, he enjoys a round of golf, a game of tennis, or a few laps in the swim-ming pool. Travelling with his family and his classic Mercedes Benz car collection also belong to his hobbies. Besides these activities, Mr. Heine has recently been re-elected to the Board of the German Embassy School in Beijing, having previously served as Chairman from 1999 to 2003.

Mr. Heine has been so kind as to answer a number of questions, which we hope will allow readers to get to know him from a different perspective:

Your favourite place in Beijing? The magnificent Forbidden City

Your favourite Chamber event? The monthly gatherings

The thing you like most about China? Experiencing and seeing the simply incredible development in China in practically all ways of life here and participating in that

Three things you would take to a lonely island? I would rather go for four things: My wife, my two sons and our lovely dog

The person in history you would have liked to have been? Albert Einstein

Your philosophy in life? Treat everybody you meet in life with respect and think positive

Your favourite song? Rolling Stones: Sympathy for the Devil

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Deutsche Bank Launches Private & Business Banking in China

On 14 th March 2007 Deu t s che Bank an -nounced the launch o f i t s p r i v a t e a nd business banking serv-ices in China. Through branches in Bei j ing and Shanghai, Deut-sche Bank p rov ides customised financial solutions, high quality products, and advisory services to meet the financial needs of private clients and SMEs in China.

The first retail outlet in China was opened in Beijing by Peter Schedl, Head of Private & Business Clients Asia-Pacific, who said that the scale of the market, rapid increase in consumer afflu-ence, and need for sophisticated banking solutions for demanding private clients and SMEs made China a market of significant po-tential for Deutsche Bank.

Lee Zhang, Chairman of Deutsche Bank China, said “Deutsche Bank has built strong relationships with leading companies and institu-tional clients in China and participated in many of the country’s largest and most innovative investment banking transactions. We now extend the bank’s global financial expertise to private and business clients.”

George Wang, Head of Private & Business Clients, China, said, ”We are introducing a wide range of exciting new products and services covering private banking, business banking and retail assets. With a dedicated and professional team and the strong support from Deutsche Bank’s global platform, we are confident that we are the right partner for demanding clients in China.”

Germa-tech (Tianjin) Ltd. Moves to New Location

In order to meet the demands of expanding business activities, Germa-tech (Tianjin) Ltd. is moving to a new location in June. The new office is located in Tianjin’s Nankai District, easily ac-cessible from the outer ring road, near the Tianjin International School. Germa-tech has been offering comprehensive services and solutions for Chinese business for over twelve years. The company specialises in offering companies in and around Tianjin start-up support, company formations, reporting to head office, accounting services, revision services, payroll, HR, etc.

The new address is: Germa-tech (Tianjin) Ltd. | Office 80� | Huake Center� Kaihua Road | Huayuan Industrial Area | TianjinTel: 022 8�71-78�� | Fax: 022 8�71-78��E-mail: [email protected]

George Wang | Head of Private & Business Clients - China, Deutsche Bank speaking at the launch event

June - July 2007 | 1�


the MBA participants’ study trip abroad. SUB specialises in dual education at a university level; students are all management assistants working on specific growth oriented projects in com-panies of all sizes throughout Germany. SUB’s office has been lo-cated at the German Chamber of Commerce • Beijing since 2005.

Since January 2007, SUB has also been offering its customised (academic and non-academic) Corporate Programmes to German companies in China. With its Corporate Programmes, SUB aims to solve both the business and HR development issues of a com-pany. The core strength of these custom programmes is the focus on a systematic transfer of management knowledge into real business projects, creating a combination of hands-on, strategic business development and targeted employee development.

In March 2007, SUB and IBM India Global Business Services started a custom programme for the long-term development of a German speaking and “German thinking” senior Indian con-sultant pool, to co-ordinate Indian project-input for German customers. IBM’s strategic business goal is to increase the com-petitiveness of IBM Germany in the German speaking areas of Europe. Similar Corporate Programmes with German companies in China are planned.

For more information please contact:Jens Hildebrandt | Programme Director China | Steinbeis University Berlin | E-mail: [email protected] Web: www.steinbeischina.com

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ShortsGruner + Jahr (Beijing) Advertising Co. Ltd.

– Office Relocation Notice

Gruner + Jahr (Beijing) Advertising Co. Ltd. has relocated its Beijing

office to new premises. From now on we can be contacted under the

following address:

6th Floor, Huaxia Mansion

22 Jianguomennei Avenue

Dongcheng District

Beijing 100005, China

MAN Ferrostaal AG – Office Relocation Notice

MAN Ferrostaal AG has relocated its Beijing office to new premises.

We can now be contacted at the following address:

10F, 1001-1008 CYTS Plaza

Dongzhimen South Avenue

Dongcheng District, Beijing 100007

Tel: 010 5815-6015

Fax: 010 5815-6017

RAIL.ONE Founds Chinese Subsidiary

The RAIL.ONE Group, an international provider of concrete sleep-ers, rail track systems, and track engineering solutions, has opened a subsidiary in China to expand its market and technol-ogy position. Beijing RAIL.ONE Pfleiderer track systems Technol-ogy Co. Ltd. (inc. Dec. 2006), was formally opened on 16th March 2007 in an Inauguration Ceremony in Beijing. Representatives of the Chinese Ministry of Railways, leading government officials, and business people from China and Germany attended.

The GM is Mr. Ekkehard Lay, formally Director of Management Technology at Deutsche Bahn Netz AG. Lay will focus on further expanding the company’s market and technology position in China and Asia. As a Chinese company, Beijing RAIL.ONE will primarily employ local specialists and executives. Its objective is to play a key role in the construction and expansion of a high-performance rail track infrastructure in China.

The RAIL.ONE Group has been active in China since 2000. In January 2006, the company signed an agreement with the Chinese Railways Ministry to implement the RHEDA 2000® bal-lastless track system. China will employ RHEDA technology, while RAIL.ONE and its partners (Eichholz, Heitkamp, and the Royal BAM Group) will play a major role in the implementation of the double-track Passenger Dedicated Line from Wuhan to Guangzhou. Nearly the entire 980km line, due to go into opera-tion in 2010, will be built using RHEDA 2000®.

For more information please contact: Beijing RAIL.ONE Pfleiderer track systems Technology Co. Ltd. | Ekkehard Lay | Managing Director | Room 802 Tower No. 7| Central Park | 6 Chaowai Street | Chaoyang DistrictBeijing 100020 | Tel: 010 6��7-0�7� | Fax: 010 6��7-0�72 E-mail: [email protected]

2nd Anniversary - Steinbeis Co-operation

A group of Steinbeis’ German MBA students visited Beijing’s Ts-inghua University in the last week of April to celebrate the 2nd

anniversary of the co-operation between Steinbeis University Berlin (SUB) and Tsinghua University. This visit was also part of

Beijing Inauguration ceremony of RAIL.ONE subsidiary

Roland Lamprecht, Relationship Manager - Asia PacificSEB Private Banking, Singapore

Jedes Vermögen wird auf einzigartige Weise aufgebaut. Ob durch harte Arbeit, brillante Ideen, außergewöhnliches Ta-lent oder auf dem Fundament einer Erbscha�. Jeder Mensch hat ganz persönliche Vorstellungen, wie dieses Vermögen geschützt und vermehrt werden soll. Diese Erkenntnis hat uns geholfen, in unserem skandinavischen Kernmarkt die Nummer 1 im Private Banking zu werden.

Die SEB ist ein führender Finanzdienstleister, der mehr als fünf Millionen Kunden betreut. In unseren nordeuropäischen Kernmärkten (einschließlich Deutschland) und weltweit – auch in Singapur.

Suchen Sie Lösungen für den Au�au Ihres Vermögens, die auf Sie persönlich zugeschni�en sind?Roland Lamprecht in Singapur freut sich auf ein Zeichen von Ihnen! Tel.: +65 6357 [email protected]

SEB Private Banking50 Raffles Place #36-01Singapore Land Tower, Singapore 048623Oder besuchen Sie uns auf www.sebgroup.com/privatebanking.

Private Banking

“You work hard for your money,We promise to do the same.”SEB – beste Privatbank in Nordeuropa und den Baltischen Staaten

June - July 2007 | 16


Adidas and Audi Hold a Friendly Football Match Adidas (Blue) and Audi (Red) organised a friendly team-building football match on Thursday March 22nd in Guangzhou in order to highlight their collaboration in the upcoming Be-ijing 2008 Olympics. Heading the squads were Harald Haber-mann Country Manager of Adidas and Laurent Rung Regional Director - South China for Audi. The match ended with a tied 3-3 score.

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The Adidas (Blue) and Audi (Red) Football Teams

June - July 2007 | 18

The German Chamber of Commerce in ChinaMembers Mix Co

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Fundraising – Project IntegrationOn 28th March, the Project Integration team handed over the schools fees for 222 children of migrant workers, amounting to a total of over RMB 175,000, to five schools in the Shanghai area. There are over 400,000 migrant workers in Shanghai today. Project Integration sponsors children whose families’ monthly income is RMB 500 or less.

Many individuals and companies have been doing their best to raise money for Project Integration over the past few months. We would like to thank all our supporters for their effort – you are making a big contribution to the lives and future of migrant workers in Shanghai. The Project Integration team would like to give a special thank you to Danielle Grassi, a long-time supporter of the Charity, who raised money for the charity in lieu of presents to her farewell party in March. All the best in Germany Danielle, and thank you for your help!

For more information, please see: www.china.ahk.de/chamber/shanghai/community/To make a donation, please get in touch with Ms. Lorenz | German Chamber • ShanghaiE-mail: [email protected]. Kaehler | E-mail: [email protected]

Fundraising - German Club

The Charity Event Saturday Night Fever organised by the German Club on 31st March raised over RMB 40,000 for terminally ill Pu Yelin as well as the Roots & Shoots foun-dation, thanks to sponsor-ship by the German Chamber Shanghai, Lufthansa, the Ger-man Centre, and the German community in Shanghai.

As well as having a great time boogy-ing the night away to music from the 70s and 80s, members of the German community in Shanghai managed to raise enough money to pay the medi-cal costs of a terminally ill Chinese girl, who is in the Pudong Children’s Hospital with heart problems.

The remaining proceeds went to support the environmental protec-tion programme Roots & Shoots, enabling them to plant a further 2,000 pine trees in Inner Mongolia in an effort to save the area from desertification.

First HR Fair for German Enterprises in ChinaOn 21st March 2007 the first HR fair for graduates of the University of Applied Sciences and German Enterprises took place at the Ger-man Centre, Shanghai. 22 German companies from the industry-network of the CDHAW and 170 students took part.

Many visitors, amongst them the Konrad Adenauer Stiftung, the German Chamber of Commerce, the GTZ, and other companies of the industry network of the CDHAW took part in this event, the first fair of this kind in China. The fair was opened by Dr. Peter Kreutzberger, German Vice Consul General, Christian Sommer, Head of the German Centre, and the organiser of the fair, Dr. Carola Hantelmann, Repr. Head-Co-ordinator / German Vice Director of the CDHAW.

Although some large com-panies were present at the exhibition, the main focus was on the contact between middle-sized Ger-man companies and their potential future employees from the field of mechani-cal engineering. This was deemed to have been suc-

cessful by both sides and it was especially encouraging to see that many of the top management attended the event. Interviews al-lowed students to learn more about career possibilities while com-panies were given the chance to inform themselves about future interns and employees.

The event will now be held on an annual basis, the next event to take place in March 2008.

New Concept Mandarin Launches New Centre in Beijing

On 13th March 2007 New Concept Mandarin proudly announced its newest language training centre in Beijing. This follows in the path of the new centre which recently opened in Shanghai on 1st Febru-ary 2007.

John Han, responsible centre director of the newly opened Bei-jing centre, is proud to join this fast growing language institute,

The Yang family visit the German Chamber to express their gratitudeBack row (from left): Constantin Schnaecker, Theodora Lorenz, Mr. & Mrs Yang, Li Yandi. Front row: The Yang quadruplets.

Students attending the CDHAW Fair

www.china.ahk.de 1� | June - July 2007


ShortsDrozak Consulting GmbH Shanghai Branch - Office Relocation Notice

Due to our business expansion in China, we have moved to new offices in Shanghai. We welcome you to our new office:

Rm 120� | Bund Center Building | No.222 East Yan’an Road | Shanghai Tel: 021 ��8�-8111 | Fax: 021 ��8�-�08�E-mail: [email protected] | Web: www.drozak.com

TRUMPF SiberHegner Ltd. at CIMT 2007

250,000 participants took part in this years 10th China International Machine Tool Show, the most important Machine-tool fair in China, took place in Beijing from 9th to 15th April 2007. TRUMPF SiberHegner was among the companies at the fair. They presented their laser cutting machine TruLaser 2525 and the stamping press TruPunch 1000. This year TRUMPF was awarded the Ringier

Metalworking Technology Award 2007 in the Laser Cutting Technology cat-egory.

Coni Executive Consulting (Shanghai) Co. Ltd

We are pleased to inform you that our office has moved from the previous address at Plaza 66 Tower I to the following new site:

Room �10� | �1/F | Tower II | Plaza 66 | 1�66 Nanjing West RoadShanghai 2000�0 | ChinaTel: +86 21-6288 77�� | Fax: +86 21-6288 7��E-mail: [email protected]: www.coni-partner.com

Finnair Launches Flights to Nuremberg

Nuremberg became Finnair’s seventh destination in Germany when flights were launched on 2nd May. “Timetables for the new route have been planned according to local German business wishes for connections from Nuremberg via Helsinki to Asia, as well as for local business travel,” explains Finnair VP Global Sales Petri Schaaf. Daily departures to the city leave Helsinki in the mornings on Monday, Tuesday and Sunday and on other days connecting with early evening arrivals from Asia.

Looking for Interns?

If your company is interested in hosting a talented American undergraduate, graduate, or MBA students as a summer intern, please get in touch with us. We do not charge service fees.

Please contact:Anna Jin | General Manager | Abroad China Shanghai OfficeTel: 021 6��1-��1 | Fax: 021 6��1-��1x12 | Mobile: 1�6816�78�6 E-mail: [email protected] | Web: www.abroadchina.net

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which is opening new centres across China to meet the grow-ing demand by foreign executives to acquire Mandarin Chinese language skills. He said: “New Concept Mandarin has a proven teaching method designed for expatriates living in China. Our teaching methods were developed through linguistic university research in Australia into how Westerners best learn Chinese. Over 10,000 people have successfully learnt Chinese with us. Now, by opening new centres in Beijing and Shanghai, foreign-ers here can also benefit from learning Chinese using our blend-ed teaching methods, which include classroom learning, online courses, our course materials, and CD-ROM.”

For the foreigners living and working in China, knowing how to respond and act in social or business situations with some knowledge of Chinese is important. It demonstrates respect for Chinese culture, gives ‘face’ and makes it easier to do busi-ness and make new friends. Besides its centres world-wide, the institute currently has 8 centres throughout China, covering: Hong Kong, Shenzhen, Guangzhou, Dongguan, Suzhou, Nanjing, Shanghai, and Beijing.

Our Beijing office is located at:Room 701 | Ocean Express Building | Dongsanhuan Zhong Road | Bing 2 | Chaoyang District | Beijing

2007 Special Olympics World Summer Games

The 2007 Special Olympics World Summer Games will be held in Shanghai from 2 - 11th October 2007.

The event will mark the first time the World Summer Games will be held in Asia, the second time outside of the US. In addi-tion to some 7,000 athletes, Special Olympics expects the 2007 World Summer Games to draw 40,000 volunteers, 3,500 event officials and thousands of families, volunteers, spectators, and journalists from around the world.

Special Olympics athletes of all ability levels will compete in 21 different Special Olympics and Olympic-type sports: Aquatics, Ath-letics, Badminton, Basketball, Bocce, Bowling, Cricket, Cycling, Dragon Boat Racing, Equestrian, Football (Soccer), Golf, Gymnas-tics, Handball, Judo, Kayaking, MATP, Power lifting, Roller Skat-ing, Sailing, Softball, Table Tennis, Tennis, and Volleyball.

TRUMPF SiberHegner stand at CIMT 2007

June - July 2007 | 20


Olympic Waters in Qingdao

With a population of nearly 80 million, Qingdao is both an important seaport and a popular bathing resort. The area is well known for its fisheries, textiles, and electronic industry. It is also the found-ing city and namesake of the formerly German brewery which has become a global company.

In preparation for the Olympic sailing regatta, which will be hosted by the city, Qingdao has reaffirmed it’s ties with Germany forming a co-operation with Kiel, which organises the world’s biggest sailing regatta every year. The co-operation, which has existed for a few years, has led to events such as the Kiel Qingdao Sailing Business Cup, the second event of which took place in the Olympic Sailing centre in June 2006. At the time around twenty business rep-resentatives of important international companies from Beijing travelled to Qingdao, along with representatives of the German Embassy and businessmen from Kiel.

The sailing cup was thus also a success in terms of creating business contacts through sport. This year, a three-day event will be held in Kiel from 1-3rd June to deepen the relationship. This event will include the ‘Kiel China Busi-ness Forum’ and the ‘Kiel China Business Gala Dinner’ followed by the ‘Kiel China Sailing Cup.’ Qingdao has made impres-sive investments in preparation for the

Olympic Games, which will undoubtedly put the city on the map for sailors around the world.

German-Chinese Projects

In preparation for the ‘Green Games,’ great efforts have been made to help China im-prove its environmental protection, includ-ing numerous Sino-German co-operative projects. The Technische Universität Berlin has been working on new techniques for water recycling for the Olympic Park since 2004. Originally started in 1995, this Sino-German venture achieved new momentum and is now supported by the German Federal Ministry of Education and Research and the Chinese Ministry of Science and Technology.

The aim of the various joint projects for the Olympics between universities and gov-ernmental institutions is to show ecologi-cal improvements including, in the above example, success in water recycling and its ecological use in the arid regions of north-ern China. In 2005, German and Chinese scientists from the Technische Universität Berlin, Tsinghua University, and Beijing Drainage Group setup a testing facility in the north of Beijing to develop a water reutilisation procedure. This Membrane-Bio-Reactor, with a capacity of 60,000m3, is the biggest of its kind in the world, permitting domestic sewage to be turned into the wa-ter to fill the Olympic Lake. The Lake thus sets an example for Chinese environmental protection plans for the Olympic Games and for the future co-operation with Western experts.

Growing Import of Sports Articles

China is not only an important producer of sports articles, but also a huge import mar-ket for the sector. With the Olympic Games coming up, China’s population is more and more interested in physical training. While the German market is almost saturated, there is a huge pent-up demand in China,

especially in the big cities. So far, about one third of the population regularly gets exercise. Though sports goods of foreign companies made in China are very successful, imported products play a growing role – although the higher price still bars the majority of the population from buying these articles. Beyond private consumer demand, in-dustrial demand will be important in the future. Considering the rising popularity of outdoor activities and the increasing number of gyms in big cities, foreign products of high quality and with a good safety standard will receive more atten-tion.

The Olympic spirit has not only changed the infrastructure, architecture, and environment of it’s 2008 host city Beijing and the participating cities of Hong Kong, Qingdao, Qinhuangdao, Shanghai, Shenyang, and Tianjin. The Olympic Summer Games 2008 are having a much wider impact on China, visible in the opti-mistic attitude of the people. This update provides some of the latest Olympics related news as well as an introduction to a few of the Chinese athletes.

China’s Olympics DreamLin Dan 林丹

Lin Dan, born in Fujian Province on 14th October 1 9 8 3 , i s t h e Ch i ne s e hope for a badmin-ton gold medal. Since 2004, he has consistently b e e n r a n k e d wor ld number

one, making this a realistic hope. One of his greatest competitors is Lee Chong Wei from Malaysia. Lin Dan shared some of his successes with his well-known girlfriend Xie Xingfang − who also leads in the international badminton ranking. Both strengthened their positions through victory in the singles tournaments of the prestigious All England Championships in 2006 and 2007 in Birmingham, as well as dur-ing the 2006 IBF World Champion-ships, where Lin Dan defeated his compatriot Bao Chunlai to capture his first World Championship title.

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Expo-Hotline

The World Expo Shanghai organisers have launched a hotline to provide Expo-relat-ed services to the public in both Chinese and English. The 962010 Expo-hotline is operated by Shanghai Telecom, part of China Telecom, who became an official partner of the event last September. The hotline is expected to grow to provide a multi-language service, including the ad-dition of French.

Callers can also consult with experts about site construction, marketing plans, and participation services, or register as vol-unteers and take part in Expo knowledge contests to win prizes. The 962010 hot-line, as the sole official service line, will co-operate with the 962288 Shanghai Call Centre, to provide local information.

Zhong Yanqun (fulltime Deputy Director of the World Expo 2010 Shanghai Execu-tive Committee), Hong Hao (Director of the Bureau of Shanghai World Expo Coor-dination), Huang Jianzhi (Deputy Direc-tor of the Bureau of Shanghai World Expo Coordination), and Zhang Weihua (Chair-man of Shanghai Telecom) attended the hotline’s launch ceremony on 16th May.

Hunt for World’s Urban Best Practices Begins

The ‘Urban Best Practices Area’ is located in the red part of the Expo Site master plan. Shanghai yesterday began the proc-ess of selecting best practices that will showcase their urban innovation at the World Expo 2010 site.

Zhou Hanmin, deputy director of the Bu-reau of Shanghai World Expo Co-ordina-tion, yesterday described the Urban Best

Practices Area as one of the biggest chal-lenges in preparation for Expo 2010. He said Shanghai has earmarked a 15-hectare-area on the Puxi-side of the Expo site to exhibit Best Practices from around 30 international cit-ies in areas such as urban architecture, real landscapes, and design concepts.

Cities around the world are invited to submit their projects for consideration, either by themselves or as a joint project with interna-tional organisations and companies. A Shang-hai International Selection Committee will help propose and select the best examples for the Area, which will be announced later this year. The Bureau will then be in charge of merging the selected best practices into the Area in a harmonious way, Zhou said.

The Urban Best Practices Area will take the form of a simulated city block which will, among other aspects, include water landscap-ing, residential houses, street arrangements, conservation of heritage houses, and the use of environmentally friendly products.

Sites planned for the area include: An old power plant that will be transformed into a pavilion called ‘Exploration of Future Cities’; the construction of a new Global Urban Plaza; other old factories that will be transformed into exhibition halls.

East-West Compositions

Eight French composers took part in a con-cert at the Shanghai Grand Theatre in May to present a concert of Western orchestral work using traditional Chinese instruments. The aim was to embody the ‘harmonious multi-cultural’ spirit of World Expo 2010, by using Chinese instruments and incorporating some familiar Chinese melodies such as ‘The Jas-

mine Flower’ into the piece. Each of the eight French composers wrote a concerto using the erhu (two-stringed bowed instru-ment), suona (oboe), or both.

The eight composers, candidates for a competition entitled ‘Presences China’, visited Shanghai last spring to gather im-pressions to harmonise into their music. During their stay they visited the Yuyuan Garden, an instrument factory, and had the opportunity to talk with Chinese folk musicians.

“Chinese culture is distant to me. But I saw a corner of Chinese culture during my short stay last year,” said composer Guillaume Connesson, who wrote an erhu concerto inspired by the Yuyuan Garden. “When I returned to Paris, I was often steeped in a mood of Shanghai, which is in a word, ‘contrast’.”

The audience will vote for the three most popular pieces, which will be staged dur-ing the Festival Presences in France in 2008. The three winners will be awarded USD 25,000, USD 15,000 and USD 10,000 respectively.

“I’ve had this idea in mind for a long time,” says France-based Chinese com-poser Chen Qigang, artistic director of the project. “They [the musicians] will promote Chinese music and culture to the world in the future, [while at the same time giving] Chinese people an oppor-tunity to look at our own culture from a new angle. I hope it will also arouse Chi-nese passion for the long-forgotten charm of traditional Chinese music.”

At the event in Shanghai, invitations were extended to eight Scandinavian composers, in preparation for next years competition.

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‘Urban Best Practices Area’ in the red part of the Expo Site master plan.

Erhu performance

June - July 2007 | 22


• What are Weidmüller China’s aims and hopes for the future?The long-term perspective of our client industries in China seems set to maintain a dynamic growth in future. Through the excellent overall framework set out by the government, I am convinced that there will be plenty of opportunities for our company over the next years and decades. Nevertheless, competition remains tough with both domes-tic and international competitors on the market. To stay successful in the long run, we will further increase our local content and, step-by-step, add more products to the line which have been both developed and produced in China.

With the further development of industry in China, the necessity to sell imported products is shrinking and the stiff competition can only be matched by a high level of local production and local services. For Weidmüller, China is not just an extended work-bench or another sales region. It is a milestone in the development of the entire group. This is also expressed in terms of size: the Weidmüller China Operation ranks

no. 2 after Germany in terms of employees. We are very committed to helping grow the Chinese economy and to our local clients.

Besides competitive products and local production, we know that it is people who do business. Thus another pillar of our strategy is to continue our steady efforts to recruit the best people and support their daily work with training and encouragement. We are very proud of our loyal and highly capable employees and efficient organisation here in China. Maintaining this will be one of the biggest challenges in the next step of our expansion.

• How do you enjoy living in Shanghai?Shanghai is without doubt one of the hot-spots at the moment and my wife and I are happy to have the opportunity to be right in the middle of the excitement, gaining rich and varied experiences and personal impressions.

Shanghai is not the first Mega-City I have lived in, but it is definitely the most dynamic one I have experienced. I very much respect the effort local people have, keeping pace with their city, which seems a daily challenge. For foreigners, I think Shanghai is a good place to live in China if you do not want to be completely disconnected from your own culture. In my eyes, Shanghai’s unique mix of people from the most varied places make it a very interesting place to live.

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Whether you have just arrived in China or you have been here for a long period of time...... Why not introduce yourself and your company or representative office to us?

• Tell us a little about your backgroundBorn in Munich in 1963, I went to school there before doing a 3-year apprenticeship. Following that, I studied business administration – also in Munich! Between graduation and moving to China, I spent 14 years working for Daimler-Benz AG, RWE AG, and for an international management consultant. Assignments took me around the world: I have worked in the US, Dubai, several European countries, and South Africa. Having joined Weidmüller in Germany in 2004, I came to China as President of China Operations in January 2005.

• What type of business is Weidmüller? Weidmuller is a family owned German company with a 150-year his-tory. It employs approx. 3,000 employees, spread over 70 countries around the world. Weidmuller offers its clients a wide range of 30,000 articles for electrical connectivity – both components and modules. This means that Weidmüller products can usually be found wherever electrical power flows and analogue or digital signals need to be transferred or processed, for example in factory- and process-automa-tion, machines, power plants, chemical or petrochemical plants, or in railway cars and infrastructure.

• Tell us a little about your company and activities in ChinaWeidmüller started its China operation in 1994 as a Joint Venture in Cheng Du. Since then, we have set up two wholly owned foreign en-terprises. One represents the sales and marketing side of our business, while the other, located in Suzhou, takes care of the production and development. We currently have a total of 650 employees in China and expect this tremendous growth to continue over the next few years.

Our business focus remains on the above key industries and in further optimising the product- and service bundles we can offer our clients in these branches. Our China factory and R&D centre is part of our world-wide production and development network and works to the same quality level and technical standards as other company of the group. The largest part of our sales so far has been to local Chinese companies, while China-based subsidiaries of our international clients from the electro- and electronics industries make up the second larg-est portion.

We are convinced that we can only offer the best products and serv-ices to our clients if we have the most qualified and motivated staff working for us. As such, we place a strong emphasis on staff training and motivation, and offer the best working environment and career opportunities in both companies.

Rainer Berthan Weidmüller Interface International Trading

(Shanghai) Co. Ltd.

Weidmüller Interface (Suzhou) Co. Ltd.

President & Chairman

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We are also able to use the by-product of the desulphurisation proc-ess (flue gas desulphurisation gypsum or gypsum REA), to turn it into building materials. In addition to recycling waste, the benefit of gyp-sum REA is that it can be created in a matter of hours, whereas natu-ral gypsum takes millions of years to form. China’s mandate to clean the atmosphere gives Knauf the chance to show how environmentally friendly and cost effective gypsum boards can be made. With power plants required to recycle their desulphurisation by-products, we find it more convenient to manufacture the product and serve the increasing construction market in China. Our gypsum building materi-als weigh less, are more efficient, and perform better in earthquakes than traditional building materials like concrete and brick.

• What are Knauf China’s aims and hopes for the future?Knauf plans further expansion in China over the next five to 10 years. In two years time, Knauf will have its fourth gypsum board plant in Shanghai. This is an indication that we are indeed experiencing in-creasing business in the booming Chinese landscape. Aside from our gypsum products, we are also seeing a growing demand for insulation materials. Knauf has recently invested in a facility in Tianjin, which will produce extruded polystyrene insulation materials. We are check-ing the markets for this product for the longer term, and believe that our other products will also have a big market in China. We are also considering offering mineral insulation, either consisting of metal fi-bre or glass fibre insulation, in the future. As local builders get more educated, we expect to see a higher demand for more sophisticated products on the Chinese construction market. World-wide and in Chi-na, Knauf continues to develop new products and applications that are more durable, cost-efficient, safe, and environmentally friendly.

• Do you enjoy living in China?Actually, I don’t live in China. Each year I visit our China operations two to three times, to speak with the employees and other senior management. My time during the visits is mostly spent in the Beijing, Shanghai, and Dongguan areas. I always find the people here friendly and accommodating and the food delicious. Our other senior expat management, who have been stationed here for many years, have found the local lifestyle to be interesting and are quite comfortable to stay on and help us develop our business in East Asia.

• Special offers for members of the German Chamber?For more information on high-performance products available in East Asia and German Chamber Member Promotional offers, please contact John Davis, National Brand Manager at [email protected] or visit our website at www.knauf.com.cn

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Baldwin Knauf Global Managing Director

Knauf Group

• Tell us a little about your company’s backgroundThe Knauf Group originally started as a plasterboard production facil-ity in 1932, located in Perl-an-der-Mosel. Now, more than 75 years later, we are one of the world’s leading building material manufactur-ers, with over 20,000 employees in 140 facilities across 35 countries.

• What type of business is Knauf? Knauf is known world-wide for its innovative building materials, which include gypsum plasterboards, plasters, insulation materials, and external renders. In East Asia, the Knauf Group focuses on the production of high-performance gypsum based building solutions and insulation products.

For our plasterboard product, we focus mainly on the high-end mar-ket. This segment demands more sophisticated technical solutions and better products. As a manufacturer of modern building products, we try to convince the government and local design institutes to use less steel and concrete in buildings, to reduce the overall weight. Our gypsum board partitions weigh less than a brick wall and are more cost efficient and less labour intensive.

• Tell us a little about your company and activities in ChinaDespite stiff competition from both local and foreign competitors, Knauf has experienced steady growth in China since it set up its first factory in the mid-nineties. All facilities are 100% owned and operat-ed by Knauf, and we have no immediate plans to seek local partners or enter joint ventures. While Knauf supplies neighbouring countries in Asia and even the United States with products from our Chinese facilities, our investment in China is primarily directed to serve the demands of the local market. Despite perceived difficulties that most foreign businesses associate with China, we are comfortable in China and intend to stay here for the next 100 years. This is not just a phase.

With 85-90% of our Chinese production going to domestic sales, we are poised to meet the growing demand for environment-friendly construction materials in Mainland China. While most foreign com-petitors only have one plant in China, we have three plasterboard factories (in Wuhu, Tianjin, and Dongguan) that enable us to bet-ter respond to local and technical requirements in the northern and southern parts of China.

As China implements stricter environmental standards to combat air pollution, our environmental products are well positioned. New legislation in China requires power plants to reduce sulphur dioxide emissions through desulphurisation. The desulphurisation process requires expertise that Knauf has been practising for 30 years in Eu-rope, experience which is critical when operating Chinese production facilities. China has benefited greatly from the modern processes, extensive R&D, and technology transfers between Knauf’s gypsum plants, of which there are more than 40 around the world.

New gypsum plant design (Taicang)

June - July 2007 | 26


the commonly available Q235, which has lower yields and tensile strength,” highlighted Mr. Miles.

When designing warehousing systems to these heights, companies must make their own risk assessment as to what they are buying. What appears to be a competitive quote can turn out to be a potential safety hazard and ultimately costly investments, if supporting posts do not have sufficient strength to withstand the impact of pallets or forklifts hitting the lower post during operation. FEM’s high safety factor requires the beams to support the frame even if the lower leg is severely damaged, or to limit collapse to a vertical localised failure.

“Everyone is familiar with- and accepts that a beam will deflect under loading, FEM calls for a maximum deflection of span /200, with the beam returning to the horizontal when pallets are off loaded. But they forget that the posts are subjected to even higher loads and forces.”

“The lower leg of a post will also deflect under stress, and once hit by either pallet or forklift, it will immediately fail if under-designed, causing a cross-aisle collapse which, by domino effect, could wipe out the whole warehouse,” added Mr. Miles.

Although Occupational Health and Safety programmes are not as strin-gent in Asia as in Western countries. In a recent incident, a racking installation collapse killed 11 and hospitalised another 35 warehouse staff. The authorities arrested the warehouse owner and the ware-house manager.

These are some of the challenges faced by Schaefer in the booming Chinese market, where dynamic growth has fuelled a massive invest-ment in distribution centres for internal distribution and the export of China’s vast range of products.

“We are confident that Multi National Companies moving into China will demand similar safety standards as in their own counties. Many MNC’s do have existing corporate governance, which clearly states minimum operational safety standards,” said Mr. Miles. “The potential Chinese market is huge and growing every year, but with so many lo-cal ‘copy’ manufacturers using all types of steel, customers will need to set rigid buying standards to ensure the quality of the systems they are buying”.

Schaefer’s Shanghai based sales operation is managed by Gary Ooi, a Singaporean with over 6 years of sales experienced in China.

Spec

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Special features, interviews and articles.

SSI SCHAEFER to Set Standards in Racking SafetyGerman’s largest racking manufacturer expands its presence in Asia, with pallet racking systems manufactured to European Standards in China.

Fritz Schäfer GmbH, acknowledged as the world’s largest supplier of Industrial Storage and Automated Warehouse Systems, have now com-missioned their own manufacturing facility in Kunshan, some 80km east of Shanghai.

“Whilst the company has been in China for the past 13 years, initially with a representative office and then briefly with an ill-fated joint venture, we believe we have now finally got it right,” said Brian Miles, SSI Schaefer’s Regional Director for the Asia Pacific & Middle East region. “The failure of the joint venture left a bad image with the par-ent company in Germany of doing business in China, so we decided to follow the same model as we used in Malaysia of building and operat-ing a solely owned Schaefer plant.”

The design of the factory was geared to suit the production of the I600, an identical product to the ones made in Malaysia, based on the original German PR600 system. The two systems use the same end connectors so that pallet-racking beams from Asian and German facto-ries were completely compatible.

As an International company, Schaefer’s pallet racking systems have been tested in Europe to the recently implemented FEM 10.02.02 standards with weight loadings calculated to second order analysis with a system safety factor of 1:1.54.

“This puts us at a disadvantage compared to some Chinese rack manu-facturers who have traditionally quoted a safety factor of 1:1.30” added Mr. Miles. “However I would seriously challenge any local manu-facturer to prove their ‘claimed’ safe working loads, as we know that there is no authority in Asia which has the experience to undertake all the tests necessary to determine the safe working loads of cold rolled punched profiles with hooks in adjustable beams. We see all manufac-turers claiming accreditation of every safety standard issued world-wide, from RMI and SEMA to AS and FEM, and it is really up to the customer to undertake due diligence to challenge these claims and request proof of certification from bone fide test authorities.”

Schaefer, as an international supplier, cannot have dual standards. The company has global insurance policies that provide customers with Product Liability Insurance. This guarantees that the product will per-form to the weight loadings as stated in their quotations, in accord-ance to FEM safety factors.

“In Germany and Malaysia we use a high grade steel for the posts, which support higher weight loads; material handling equipment is now capable of lifting 1,000kg pallets to over 10m and narrow-aisle machines over 14m in height. The weight transmitted through the posts meanwhile can now be above 16,000kg per end frame. In China it is not as easy to buy this quality of steel, so most companies use

Schaefer-GCTicker260x190.indd 2 5/2/07 11:32:05 AM

June - July 2007 | 28


Gemeinsam in Bewegung

Räumlich und zeitlich setzt die Kampagne neue Akzente: Sie erweitert die traditionellen Spielfelder ausländischen Engagements in China bewusst um attraktive Millionen-städte der so genannten »zweiten Reihe«. Die Kampagne startet im Herbst 2007 und läuft bis zur EXPO 2010 im Herbst 2010 in Shanghai, wobei sie an das EXPO-Motto »Better City, Better Life« anknüpft. Die durchgängige Ver-wendung der Dachmarke »Deutschland – Land der Ideen« stärkt deren Nachhaltigkeit.

Das Projekt steht unter der Schirmherrschaft des Bundespräsidenten und wird durch den Arbeitsstab Deutschland-China im Auswärtigen Amt gesteuert. Der Projektausschuss in China setzt sich zusammen aus der deutschen Botschaft in China, der Geschäftsführung der Deutschen Handelskammer in China, Beijing sowie dem jeweils örtlich zuständigen Generalkonsulat und der Geschäftsführung der Regionalkammer. Mit der Leitung des Projektes wurde das Goethe-Institut beauftragt. Für die Kampagne in jeder ausgewählten Provinz stellt das

Auswärtige Amt eine Grundfinanzierung von einer Million Euro bereit. Angestrebt ist eine breite Beteiligung der Bundesregierung, der Bundesländer, deutscher Wis-senschaftsinstitutionen, der deutschen Wirtschaft und deutscher Kulturträger.

»Deutschland und China – Gemeinsam in Bewegung« beginnt mit einer Auftakt-veranstaltung und einer mehrmonatigen Veranstaltungsserie im Herbst 2007 in Nanjing. Die Kampagne wird 2008 in Kanton und Chengdu fortgesetzt und findet 2009/2010 in weiteren ausgewählten Provinzen und Städten statt.

Nutzen einer Beteiligung• Starker Imageauftritt: Die Kampagne verwendet die Dachmarke »Deutschland –

Land der Ideen« und ist Bestandteil der weltweit einheitlichen Imagekampagne Deutschlands.

• Nachhaltige Wirkung: Die über das Jahr 2010 hinaus fortbestehende Dachmarke »Deutschland – Land der Ideen« fördert die nachhaltige Wirkung. Jedes Un-ternehmen kann die Dachmarke auch nach Beendigung der Kampagne im Rah-men der Lizenzbedingungen von »Deutschland – Land der Ideen« für die Kom-munikation nutzen.

• »First-Mover«-Effekt: Wenige Themen werden in China in Zukunft so wichtig sein wie die Urbanisierung. Mit dem breiten thematischen Schwerpunkt »Stadt der Zukunft« können deutsche Firmen bereits heute ihre innovativen Ideen und Lösungen einbringen.

• Neuer Projektansatz: Die Staffelung des Projekts in mehreren Provinzen und Städten setzt neue Akzente in der räumlichen und zeitlichen Ausgestaltung und hebt sich damit von Imagekampagnen anderer Länder ab.

• Synergieeffekte: Die Einbettung einzelner Projekte deutscher Unternehmen in den Gesamtauftritt sichert einen zusätzlichen Nutzen.

• Kontinuierliche Optimierung: Durch die zeitliche Staffelung können Erfahrungen der Provinzwochen in der frühen Phase des Projekts bei der Gestaltung der fol-genden Kampagnenblöcke genutzt werden.

• Netzwerk und politische Flankierung: Mit der Beteiligung entstehen neue Part-nerschaften. Die hochrangige Flankierung durch die Bundesregierung erleich-tert Kontakte zu politischen Entscheidungsträgern.

Beteiligungsmöglichkeiten• Kampagnenprojekte: Über eine Ko-Finanzierung können sich Unternehmen an

einzelnen zentral umgesetzten Projekten beteiligen. • Partnerprojekte: Unternehmen können Projekte nach ihren individuellen

Vorstellungen und Themen unter dem gemeinsamen Kampagnendach einbrin-gen.

• Sponsoring: Außerdem besteht die Möglichkeit, sich über Sponsoring an dem Gesamtprojekt »Deutschland und China gemeinsam in Bewegung« zu beteili-gen.

• Der deutsche Pavillon auf der EXPO 2010 in Shanghai ist der thematische Ab-schluss der Imagekampagne. Die deutsche Wirtschaft wird über das Bundesmin-isterium für Wirtschaft und Technologie in die Gestaltung des deutschen EXPO-Auftritts eingebunden.

Mit der Veranstaltungsserie unter dem Motto »Deutschland und China – Gemeinsam in Bewegung« verankern und festigen der Projektträger Auswärtiges Amt und seine Projektpartner Asien-Pazifik-Ausschuss der Deutschen Wirt-schaft, Goethe-Institut und »Deutschland – Land der Ideen« das positive Image Deutschlands in China als innova-tives und zukunftsorientiertes Land. Mit dem thematischen Schwerpunkt »Stadt der Zukunft« soll gezeigt werden, wie Deutschland und China gemeinsam Visionen und innovative Lösungen für die Herausforderungen der Urbanis-ierung erarbeiten und umsetzen können.

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June - July 2007 | �0

Neighbouring Provinces The German Chamber of Commerce in China

Province: JilinPopulation: 450,000Area: 20,600km2

GeographyChangchun, which literally means “Long Spring,” is the capital and largest city of Jilin Province. At the centre of the three north-east provinces (Liaoning, Jilin and Heilongjiang), it is an ideal location for operations in the region as a whole. Changchun lies in the middle of the Songliao Plain, one of the country’s most significant bases of grain production. The most important rivers and lakes of the municipal-ity are the Yitong River, Songhua River, Moon Lake, and South Lake.

HistoryChangchun is a young city, with only about 200 years of history. It was developed by the Japanese as the capital of Manchuria and was home to the puppet ruler Pu Yi, the last emperor of the Qing Dynasty.

Infrastructure• Airport: Changchun Longjia International Airport, the largest airport in

Jilin Province, opened in August 2005. It is 40km away from downtown Changchun and 80km from Jilin city. The old Jilin airport has been sus-pended. Changchun Airport has a handling capacity of 3.2 million pas-sengers yearly. Presently it is connected to over 30 domestic cities and serves international flights to Hong Kong, Tokyo, Sendai, and Seoul.

• Highways: Changchun is well connected with the neighbouring provinces through expressways. The nearest big cities are Shenyang (300km) and Harbin (250km), which can be reached conveniently.

• Railway: A high-speed train (dong che zu) has been in operation be-tween Beijing and Changchun since April 2007. The new trains, which can go up to 200-250 km/h, shorten the trip from 10 to 6.5 hours. The train also serves routes from Changchun to Harbin and Shenyang.

• Port: There is no direct access to the sea. Dalian port lies 600km to the south-west.

Industry• Changchun’s four leading industries are: automobile, food processing,

photo-electronic/software technology, and bio-pharmaceuticals.• The automobile industry is the most important sector. Changchun is

home to China’s First Automobile Works (FAW), a huge automotive enterprise that is acclaimed as the cradle of China’s auto industry. Es-tablished in 1953, FAW produced China’s first Liberation truck and the first Red Flag car. In 1991 FAW set up a joint venture with Volkswagen Group. Audi joined the joint venture FAW-VW in 1993. Today Changchun is regarded as the second-largest automobile manufacturing centre in China, after Shanghai.

• In 2005, the total number of automobile and spare parts enterprises reached 330, including more than 70 JVs and wholly foreign owned enterprises.

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Changchun

Useful LinksChangchun Government: www.changchun.gov.cn Changchun Municipal Foreign Affairs Office: www.ccfao.com.cnChangchun Science & Technology: www.ccst.gov.cnCETDZ www.cetdz.com.cn

The German Chamber of Commerce is expanding its membership to other provinces in China. In 2007, the Chamber is organising regular events in other provinces and is offering its services to these areas.

Business

• Changchun has made great efforts in developing the corn industry. Changchun Corn Industry Park, covering an area of 42km2, was founded in October 2005. It is expected to become the largest corn-based indus-try park in China.

Development ZonesChangchun Economic & Technological Development Zone (CETDZ). Estab-lished in April 1993, Changchun Economic & Technological Development Zone is a national development zone approved by the State Council of Chi-na. It enjoys all the preferential policies stipulated for economic and tech-nological development zones of coastal open cities. CETDZ has established six leading industries up to now: automobile spare parts manufacturing, electronics, photo-electronics, food processing, bio-pharmaceuticals, and construction materials.

Changchun High-Tech Industries Development Zone (CHIDA) was one of the first 27 national high-tech development areas that were approved by the State Council in March 1991. CHIDA is located in the south-west of Changchun and covers a total area of 49km2. The five main industries are: bio-engineering, automobile engineering, new material fabrication, photo-electronics, and information technology.

Changchun Jingyue Pond Tourist and Economic Development Zone is a provincial level development zone approved by the Jilin Provinicial Gov-ernment and established in 1995. It is a comprehensive development area which also integrates tourism, including holidaymaking, entertainment, and health.

ExhibitionsFrom 15-21st July the first China Changchun Auto Festival will be held. The Auto Festival is set to become a new addition to the list of important auto shows in cities such as Beijing and Shanghai.

Economic Facts of Jilin Province

Item Value Unit 200� % Change on 200�

GDP bn RMB 362 22.3

Primary Industry bn RMB 62.6 11.6

Secondary Industry bn RMB 158 14.6

Tertiary Industry bn RMB 141.4 39

Per capita GDP RMB 13,348 22.1

FDI utilized amount m USD 661.1 -

(Source: China Statistical Yearbook 2006)

In 2006, the export volume of Jilin Province reached USD 2.97bn and import volume reached USD 4.92bn. In both categories, growth of more than 21 per-cent was visible, compared to 2005. Germany is the biggest exporter to Jilin Province. German goods account for 45.5 percent of Jilin’s imports.

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Jilin Province

www.china.ahk.de �1 | June - July 2007

Neighbouring ProvincesThe German Chamber of Commerce in ChinaO

verview

Province: GuangdongPopulation: 8.3 millionArea: 1,953km2

GeographyShenzhen is located in South China’s populous and booming Guang-dong Province, centred between Guangzhou City and Hong Kong. The Special Economic Zone covers an area of approximately 2,000km2 and has a population of 1.8m. It is located in a subtropical humid zone with an annual average temperature of 22.4°C. Shenzhen consists of six city districts: Luohu, Futian, Nanshan, Yantian, Bao’an and Longguan. The Special Economic Zone is located in Luohu, Futian, Nanshan and Yantian.

As Shenzhen became the first Special Economic Zone in China in 1979, it developed from a small fishermen’s town of only 30,000 inhabitants into a big city with an annual growth of more than 15 percent in 2005. The GDP per capita is currently ranked No. 1 in China at USD 7,500.

Infrastructure• Shenzhen is considered the bridge link to mainland China. Yan-

tian, the city harbour is the 4th busiest container port world-wide. Two further ports exist: Shekou and Chiwan.

• Shenzhen also has an international airport, located only 35km away from the inner city. During the last years it has developed into an important logistics centre for air freight and domestic passenger flights.

• The railway station in Luo Hu is also of importance as it is con-nected with the KCR of Hong Kong, and therefore offers a con-venient connection for people travelling from Shenzhen to Hong Kong for shopping or business. The train connection takes less than two hours, tightly linking the two cities.

• Another means of transportation is the high speed ferry link be-tween Shenzhen and Hong Kong, which takes 55min from Hong Kong Kowloon to Shekou/Shenzhen.

Industry• The industrial sector contributes 53.2 percent of Shenzhen’s out-

put, while the Service sector adds 46.6 percent. The agricultural sector is notably small, contributing only 0.2 percent!

• Shenzhen posted RMB 326.65bn in output value of hi-tech prod-ucts in 2004, maintaining a high growth speed and expanding ap-prox. 30 percent from the year before, if calculated in accordance with the current price. Of that, hi-tech products with independent intellectual property reached over RMB 185bn, up 33.4 percent, accounting for 56.7 percent of the city’s total industrial output value, almost one percent higher than the year before.

• The most important high-tech industries in Shenzhen are Com-

Shenzhen

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puter Manufacturing and Software Development, Telecommu-nications, Digital Audio-Visual Technology, Networks, Photo-Mechatronics, Biological Engineering, Microelectronics and Basic Components, New Materials, New Energy, and Environmental Pro-tection Industries.

Foreign TradeGovernment projects for Shenzhen focus on hi-tech industries, of-fering highly developed infrastructure for foreign investors in the city’s hi-tech industrial zone. Located next to the western part of Shennan, the Shenzhen Hi-tech Industrial Park (SHIP) was estab-lished in 1996, covering a planned area of 11.52km2, of which the area for hi-tech industry covers 3.3km2.

Shenzhen’s foreign trade is mainly based on exports and has grown to about USD 100bn in 2005, which accounts for nearly half of the whole of the Guangdong Province’s export value. FDI in Shenzhen increased at a rate of approximately 27 percent to more than USD 5bn in 2005.

TourismShenzhen is not famous for its tourist attractions, but neverthe-less offers some interesting places. Beside the modern architecture, there is the Lotus Hill Park featuring a statue of Deng Xiaoping. The Dongmen Circle is a shopping mall with many little shops spread over ten streets. In the Dafen district, one can find artists working on oil paintings.

Other attractions in Shenzhen are its multiple theme parks. Among them is the Splendid China Park, where scaled down replicas of China’s historical buildings, scenery, and folk customs are exhibited. There is also a Safari Park, the Xianhu Botanical Garden, and a Sea World in the Xiaomeisha Tourist Resort.

Guangdong Province

Shenzhen

Guangzhou

Hongkong

(Source: China Statistical Yearbook 2006)

Useful Links• Guangdong Statistical Yearbook 2006• Shenzhen Government Online http://english.sz.gov.cn/economy• www.travelchinaguide.com/attraction/guangdong/shenzhen• Shenzhen High-Tech Industrial Park: www.shipgov.net• Shenzhen Customs: www.sz-customs.gov.cn• Shenzhen Statistics: www.sztj.com

Item Value Unit 200� % change on 200�

GDP bn RMB 495.51 15.1

Industrial Output bn RMB 986.76 23.0

Agricultural Output bn RMB 2.17 -12.2

Accumulative Foreign Trade Value bn USD 182.79 24.1

Overseas-Funded Enterprises bn USD 60.93 (15,266(accumulated companies)investment)

Economic Facts of Shenzhen

June - July 2007 | �2

Neighbouring Provinces The German Chamber of Commerce in China

Province: JiangsuPopulation: 74.745 million Area: 823km2

GeographyLocated on the southernmost tip of the Jiangsu Province, Taicang City is part of the fertile flatland of the Yangtze Delta, located close to Shanghai, Suzhou, Wuxi, and Nan-jing in the ‘Golden Triangle’ of key economic cities. Although the history of the town can be dated back much further, the city got its name around 2,000 years ago when it was appointed the royal gra-nary to Emperor Chunshen. Taicang literally means ‘granary of the Court’. Today Taicang is better known as ‘the town of German-fund-ed enterprises’, a nickname it got towards the end of the 1990’s due to the large number of German companies and staff located in the area.

Infrastructure• Airport: Shanghai Hongqiao and Shanghai Pudong airports are

40km and 80km, or 30min and 60min drive away respectively. To-gether, these airports offer connections around the globe as well as a comprehensive coverage of domestic airports.

• Highways: Taicang ranks first in the Jiangsu Province in terms of density of high-level roads and connection to national express-ways. The road network connects the Taicang Economic Develop-ment Area with Shanghai to the south (40km), Suzhou in the West (50km), as well as Wuxi and Nanjing.

• Railway: A direct train connection to Shanghai that takes less than 30min is in place. The closest train stations for both cargo and passengers are in Kunshan (15km away) and Suzhou.

• Port: As well as linking the Yangtze River and the Beijing-Hangzhou Grand Canal, Taicang’s 40km Yangtze deep-water coast-line has meant that the local port, an affiliate harbour of Shang-hai International Shipping Centre, has become a major container port in the area. Shanghai Port itself is only 40km away.

IndustryTaicang’s pillar industries are: machinery, automotive, and electron-ics industries, especially in the high-end spectrum. By the end of 2006, over 300 foreign invested enterprises from over 30 countries and regions settled in Taicang, investing a total of over RMB 30bn. The area has become a particular investment favourite in China among European and American enterprises. Around 1,500 foreign-ers work in the Taicang area, of which over 2/3 work in the Taicang Economic Development Area. Of those, there are around 200 Ger-mans alone and with 80 German companies in Taicang, the area boasts the most concentrated amount of German-funded enterprises in China.

Taicang

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Shanghai

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Taicang Economic Development Area, located to the west of Taicang Port, hosts a number of famous international enterprises which has encouraged further top brands to establish close by. Corporations such as Nike, Trane, and A. O. Smith Electrical Products of America; Walls of the UK; Schaeffler, Kern-Liebers precision machinery, and Fischer Fixings of Germany; Tiger-coatings and Ebner Industrieofen-bau of Austria; Alpine Electronics and Kowa-denshi of Japan; C&H Toys and Kostat of Korea have helped establish Taicang Economic Development Area as a prestigious international one.

Living EnvironmentTaicang’s proximity to Shanghai was one of the main selling points to the initial Western investors. Beyond the amenities in Shanghai, Taicang now has a well developed service industry which caters to the many international residents. This includes five star hotels, 20 Western restaurants, entertainment including two cinemas, interna-tional schools and hospitals, as well as many recreational facilities including a golf course.

German Educational SystemIn 2001, to encourage the growth and development of the industry in Taicang, several German companies banded together with the city government to plan and implement an education-centre for toolmak-ers according to the German dual educational system. Beyond pro-ducing, operating, and maintaining the machines, these students will also be able to go into more general fields of production.• Developed by Taicang city government, the Land Baden-Würt-

temberg, and the Delegation of German Industry and Commerce Shanghai.

• German-style school at the Taicang Industry School, with teachers and trainers supported and trained by the Hanns-Seidel Founda-tion in Shanghai and Weifang, with some training in Germany.

• 3.5 years dual education system − theoretical teaching at the Taicang Industry School supplemented with apprenticeships and internships at one of the 14 participating production facilities.

Item Value Unit 200� % change on 200�

Population million people 74.745 2.21

GDP tr RMB 1.82 14.5

Primary Industry % 7 2.8

Secondary % 57 16.0

Tertiary % 36 14.8

Retail Sales bn RMB 570 16.0

Exports bn USD 123 40.5

Imports bn USD 105 26.1

FDI bn USD 13.18 29.2

Useful LinksJiangsu Provincial Government: www.js.gov.cnJiangsu Provincial Foreign Affairs Office: www.jsfao.gov.cnJiangsu Economic Information Network: www.js.cei.gov.cnTaicang Economic Development Area: www. jstced.com

Economic Facts of Jiangsu Province

June - July 2007 | ��

Neighbouring Provinces The German Chamber of Commerce in ChinaN

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Northern China

Changchun Workshop: Develop your Workforce in 2nd Tier Cities12th April 2007, Shangri-La Hotel Changchun

Speakers: Ms. Yin Shunyu | Managing Director - Move On Profes-sional Business Consultant Ltd.Mr. Robert Ploeger | GM - TKAS (Changchun) Tailored Blanks Ltd.

The workshop entitled ‘Develop your Workforce in 2nd Tier Cit-ies’ marked the expansion of activities of the GCC • Beijing into northeast China.

Companies operating outside the major cities face additional challenges when it comes to

motivating their staff to come to and stay with them. In order to tackle this issue, two experts from Changchun presented their experi-ences and solutions for effective HR management.

Ms. Yin Shunyu, Managing Director of Move On Profes-sional Business Consultant Ltd, gave an interesting overview of the talent market in Changchun. In her pres-entation, she discussed the strengths and weaknesses of talent resources and gave valuable tips on how a company can better retain its staff.

Mr. Robert Ploeger, General Manager of TKAS (Changchun) Tailored Blanks Ltd, focused on the training and education of engineers and technicians in China. Afterwards he gave a short introduction to a concrete project, the Sino-German Laser Academy, which will be set up in Changchun.

Both presentations generated a lot of interest and a lengthy discus-sion afterwards. They are both available on our website: http://chi-na.ahk.de/en/chamber/beijing/chamber-news/

Tianjin Roundtable: Meeting with Mayor Dai Xianglong21st March 2007, Renaissance Hotel Tianjin

On 21st March the Board of GCC • Beijing invited German compa-nies from Tianjin to a roundtable discussion at the Renaissance Hotel Tianjin. The main purposes were to exchange information on investment conditions in Tianjin and to discuss site-related fac-

tors as well as difficulties experienced in the past.

The German companies located there consider Tianjin a good in-vestment location with many advantages. They especially pointed out the proximity to Beijing, the ready availability of talent, and the cost-advantages in comparison to Beijing.

Following the roundtable discussion, the GCC • Beijing Board held talks with the mayor of Tianjin Municipality, Dai Xianglong. The vis-it of the German Chamber to Tianjin underlines our strong interest in the location and our concern for German industry in the region. Tianjin is a main focus within the scope of the extension of activi-ties of the German Chamber to North China.

Zhejiang Roundtable: Adapting Entry Strategies to Today’s China27th March 2007, Holiday Inn Hangzhou

Speaker: Ms. Brigitte Wolff | CEO - ABA-CUS Corporation Ltd.

Most large companies and many SMEs are now present in China. However after years of change and rapid development, strategies need to be re-evaluated and possibly even adapted to suit the cur-rent business situation. Increasing com-petition from local producers, a shifting target market (from internationals to building up domestic customers) and a continuing lack of market data need to be taken into account. Sales and

marketing are further areas where domestic competitors have become stronger, often through Western employees.

A strategy check is accomplished in four steps: analysis, strategy de-velopment, planning, and implementation. Of these, the last point is without doubt the most critical – the pace of business hardly leaves enough time for it. Making sure the product pallet is up-to-date and corresponds to demand is key in maximising growth. In terms of strategy development, analysing the value-added chain is important. By knowing the development of your customer’s customers, you can predict movements in the demand for your own products.

Workshop attendees

Participants enjoy dinner after the workshop

Meeting with local business representatives in Tianjin

Mr. Valentino, Bayer (China) Ltd; Dr. Luther, Allianz General Representative Office Beijing; Mrs. Ludwig, German Chamber of Commerce in China; Dr. Hausmann, Siemens Ltd. China; Dai Xian-glong, Mayor of Tianjin Municipality; He Ronglin, Secretary General of Tianjin Municipality Govern-ment; Li Guangda, Chairman of CCPIT Tianjin Branch

Zhejiang & Jiangsu

www.china.ahk.de �� | June - July 2007

Neighbouring ProvincesThe German Chamber of Commerce in China

Taicang Business Brunch: Intellectual Property Rights in China11th April 2007, Taicang Century Hotel

Speaker: Dr. Paolo Beconcini | Attorney-at-Law - Schulz Noack Bärwinkel

Dr. Beconcini discussed what kind of IPR can be protected in China, how to go about protecting your IPR rights, infringement and en-forcement. He began by pointing out that there are different kinds of infringement, such as grabbing domain names or internet keywords, pattern infringement and theft of trademark, domain or trade names. Theft means that a third party registers one‘s trademark or trade name in China. Therefore an early registration of IPR in China such as trademark, pattern etc. is extremely important for foreign companies.

The IP Law in China is formally very good, but actual enforcement of rights are required to protect your IPR. Thus monitoring the Chinese market is necessary to prevent infringement. The weakest link in the Chinese legal system is the ‚Unfair Competition Law‘, which is outdat-ed and old. It has not been modified since 1993 and is insufficient in terms of protection offered.

Dr. Beconcini gave the following example: what can you do if some-one copies the shape of your machine, which is not protected by pat-ent in China? In other countries, domestic legislation protects you even if you do not have a design patent in that country. In China, if your product, design or invention is not registered in China you are not protected.

Various enforcement options against infringement exist. In situations where there is no legal option, a quick development of your product will make competitors irrelevant. Before taking action against in-fringers, make sure to check the existence of your own right in China.

Northern China

For more information about events and activities in Northern China, membership to the Chamber and general information, please contact:

Ms. Claudia BarkowskyRegional Manager North ChinaTel: 010-6��0 0�26 ext. �2�Fax: 010-6��0 6�1�E-mail: [email protected]

New

s & Even

ts

Calendar of Events

Date Event/Topic Venue Time

Zhejiang & Jiangsu

Wed. 2nd June DUSA Summer Party Suzhou 4pm

Sun. 10th June Ningbo City Tour GIC Office, Ningbo 10am

Tue. 26th June Zhejiang Roundtable Hangzhou 7pm Holiday Inn

Wed. 27th June Taicang Business Brunch Century Hotel 12pm - Taicang

Zhejiang & Jiangsu

For more information about events and activities in the neighbouring provinces of Shanghai, mem-bership to the Chamber and general information, please contact:

Mr. Arndt SchulzeProject Manager Zhejiang and Jiangsu ProvincesTel: 021-�081 2266 ext. 16�� E-mail: [email protected]

Dr. Jörg-Michael ScheilDr. Paolo BeconciniFacts & Figures – Infringement Situation

Theft of domain name

Theft of trade name

Theft of trademark

Counterfeiting

Imitation of outer design

Use of foreign name/reputation

Sale of cracked software Theft of patent applications

Use of patented technology

Theft of Know-howTo take account of the summer holidays, no events have been planned for July. Please check our website in case of changes.

June - July 2007 | �6

Chamber News & Events The German Chamber of Commerce in ChinaCh

ambe

r Te

ams

Ms. Katrin LochExecutive Chamber ManagerTel: 010-6590 6930E-mail: [email protected]

Ms. Lina SunChamber Affairs ManagementTel: 010-6590 0926 ext. 210E-mail: [email protected]

Ms. Claudia BarkowskyRegional Manager North ChinaTel: 010-6590 0926 ext. 329E-mail: [email protected]

Mr. Paul GervaisManager Membership & EventsTel: 020-8755 8205E-mail: [email protected]

Ms. Grace LiMembership & EventsTel: 020-8755 8203 E-mail: [email protected]

Ms. Theodora LorenzSenior Manager Tel: 021-5081 2266 ext. 1630Fax: 021-5081 2266 ext. 5630E-mail: [email protected]

Mr. Constantin SchnaeckerProject ManagerMembership & Events Tel: 021-5081 2266 ext. 1656Fax: 021-5081 2266 ext. 5656E-mail: [email protected]

Ms. Emma Schumacher-VoelkerPublicationsTel: 021-5081 2266 ext. 1637Fax: 021-5081 2266 ext. 5637E-mail: [email protected]

Ms. Haili RuanAssistant Manager Tel: 021-5081 2266 ext. 1605Fax: 021-5081 2266E-mail: [email protected]

Mr. Arndt SchulzeRegional Manager Jiangsu & Zhejiang Tel: 021-5081 2266 ext. 1644Fax: 021-5081 2266E-mail: [email protected]

Ms. Li YandiProject Manager Tel: 021-5081 2266 ext. 1609Fax: 021-5081 2266E-mail: [email protected]

Beijing

Shanghai

Guangzhou

For more information on Chamber events and membership: www.china.ahk.de/en/chamber/beijing/

For more information on Chamber events and membership: www.china.ahk.de/en/chamber/guangzhou/

For more information on Chamber events and membership: www.china.ahk.de/en/chamber/shanghai/

The German Chamber of Commerce • China organises regular events to provide you with the most up-to-date information on

China and provide networking opportunities within the German community. Events include monthly and weekly Chamber Meetings,

Joint Venture Round Tables, and Workshops throughout the year, as well as special events featuring distinguished speakers and

guests such as German President Köhler and former Chancellor Schröder. Special community events are also held.

For further information about how to take part in our events, or to get a list of current events, please contact the respective

Chamber or visit our website: www. china.ahk.de

Mr. Walter JansenManager, Chamber PublicationsTel: 010-65900926 ext. 308E-mail: [email protected]

www.china.ahk.de �7 | June - July 2007

Chamber News & Events The German Chamber of Commerce in ChinaB

eijing

Mr. Kersten

Stuttgart was this year’s host city for the 7th Business Forum, organised by the Ger-man Chamber of Commerce • China. The one day event, held in co-operation with the IHK Stuttgart, featured presentations, panel discussions, and workshops provid-ing insight into the Chinese market. 200 German entrepreneurs attended the event, which received positive media and partici-pant feedback.

Speakers included members of the Board of GCC • China, as well as high-ranking business representatives from China and Germany. Dr. Volker Stanzel, Ambassador of Germany to China, also took part in the event. The Board of the German Chamber was represented by:

• Dr. Richard Hausmann | President & CEO - Siemens Ltd. China Chairman of the German Chamber of Commerce • China Committee

• Dr. Zhijian Fan | President & CEO - Siemens Shanghai Mobile Com-munications Ltd. | Treasurer − GCC • Shanghai Committee

• Dr. Roman Jaklitsch | GM - Beijing Fortune Dräger Safety Equip-ment Co. Ltd. | Board Member − GCC • Beijing Committee

• Mrs. Jutta Ludwig | Executive Director − German Chamber of Com-merce • Beijing

• Mrs. Alexandra Voss | Executive Director − German Chamber of Commerce • Guangzhou

Presentations, covering topics like “China in the Global Economy – Status and Recent Developments” and “Regional Focal Points of De-velopment and Market Strategies,” gave a macroeconomic overview of China as well as providing further details on the regions repre-sented by the local Chambers in Beijing, Guangzhou, and Shanghai.

Workshops focused on current issues relating to trade with China. Business representatives shared their experiences on topics such as staff training and retainment, research and development, intel-lectual property, and technology transfer. A fourth workshop evalu-ated the Chinese market for environmental and process technology, an area generally regarded as having a high business potential for

German enterprises. The forum closed with a panel discussion com-paring China and India from the viewpoint of German companies in China.

Further details (including presentations, press clippings, and additional information) available at: http://china.ahk.de/en/market-place/

Workshop Intellectual Property and Technology Transfer: Dr. Huber Robert Bosch GmbH; Dr. Zhijian Fan | Siemens Shanghai Mobile Communications Ltd; Dr. Stricker-Kellerer | Freshfields Bruckhaus Deringer; Mrs. Voss | GCC • Guangzhou

Panel Discussion: Dr. Jaklitsch, Beijing Fortune Dräger Safety Equipment Co. Ltd; Mrs. Ludwig | GCC • Beijing; Mr. Lauk | German Embassy - Beijing; Dr. Hausmann | Siemens Ltd. China; Mrs. Voss GCC • Guangzhou

Opening speech by Dr. Stanzel Ambassador of Germany to China

Presentation by Dr. Hausmann Siemens Ltd. China

Business Forum: China at First Hand14th March 2007, Chamber of Industry and Commerce (IHK) • Stuttgart

June - July 2007 | �8

Chamber News & Events The German Chamber of Commerce in ChinaB

eiji

ng

Annual General Meeting – GCC • Beijing17th April 2007, Hilton Hotel Beijing

The highlight of this year’s AGM of the German Chamber of Commerce • Beijing was the speech of Her Excellency Ma Xiuhong, Vice Minister at the Ministry of Commerce. Minister Ma is responsible for the De-partments of Treaty and Law, American and Oceanian Affairs, Foreign Investment Administration, as well as the Investment Promotion Agency, the China Association of Enterprises with Foreign Invest-ment, and the China Council for International Investment Promotion.

After a short welcome address by Dr. Richard Hausmann, CEO & Presi-dent of Siemens Ltd. China and Chairman of GCC • China, Minister Ma gave an interesting and in-depth speech on the current development trends and goals of the Chinese economy, as well as on Chinese-German economic co-operation. She explained that an increase of FDI is essential for China’s development and is especially welcome in sec-tors such as modern agriculture, environmental protection, and en-ergy conservation. Ma also commented on the new Corporate Income Tax Law, which will continue to offer incentives to foreign invested companies, e.g. in Western China and in certain sectors such as high technology. She placed special emphasis on the measures China is taking to protect IPR and to reduce its high balance of trade surplus. In this context, she announced the long-term goal to reach an im-port volume of more than USD 1.5tr.

After the speech, Mr. Alfred Wewers, President and CEO of Thys-senKrupp (China) Ltd. and Chairman of the GCC • Beijing Committee, opened the AGM and gave a short overview on the Chamber’s work during the last year. His speech was followed by Mrs. Jutta Ludwig, Executive Director of GCC • Beijing, who presented the annual re-port for 2006, and Dr. Hausmann, who summarised the outcome of the work of the All-China Board. Mr. Peter Schmidt, GM of Dresdner Bank AG, Beijing Branch and treasurer of GCC • Beijing Committee,

The new board of the German Chamber of Commerce in China • Beijing

Gregor Wende | Chief Representative China - Lufthansa German Airlines Regional Board Member

Wolfgang Kohl | President & GM - China Gruner & Jahr AG & Co. KG Regional Board Member

Hans von Schaper | GM - Nordex Energy GmbH, Beijing Representative Office | Regional Board Member

Alfred Wewers | President & CEO - ThyssenKrupp (China) Ltd. Chairman - Beijing Committee

Jutta Ludwig | Executive Director - German Chamber • Beijing Delegate & Chief Representative – AHK Beijing | All-China Board Member

Dr. Jörg-Michael Luther | Chief Representative - Allianz General Repre-sentative Office Beijing | Treasurer - Beijing Committee

Dr. Richard Hausmann | President & CEO - Siemens Ltd. China Chairman - All-China Board

Ulrich Walker | Chairman & CEO - DaimlerChrysler North East Asia Regional Board Member

William Valentino | General Manager - Bayer (China) Ltd. All-China Board Member (not pictured)

Vice Minister Mrs. Ma Xiuhong | Ministry of Commerce and the GCC • Beijing Board

Mrs. Ludwig - GCC • Beijing and Dr. Hausmann - Siemens Ltd. China welcome Vice Minister Mrs. Ma Xiuhong | Ministry of Commerce

Speech by Vice Minister Ma Xiuhong | Ministry of Commerce

presented the statement of accounts to Chamber members and was granted discharge by the attending members, along with the other board members.

Due to relocation, Dr. Roman Jaklitsch, GM of Beijing Fortune Dräger Safety Equipment Co. Ltd. and Mr. Schmidt resigned from the board. We would like to thank them for their hard work and continuous sup-port and wish them success for their future. During the AGM by-elec-tions, Mr. Ulrich Walker, Chairman and CEO of DaimlerChrysler North East Asia, and Mr. Hans von Schaper, GM of Nordex Energy GmbH, Beijing Representative Office, were elected as their successors. We warmly welcome them to the Board and are looking forward to suc-cessful co-operation.

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