Part 1 - AHK Greater China

Transcription

C TICKER
OCTOBER - NOVEMBER
5 | 2010
BEIJING | SHANGHAI | SOUTH CHINA
Free Bi-Monthly Newsletter of the
GERMAN CHAMBER OF COMMERCE IN CHINA
Training
Benefits of having external
and internal Coaches
CSR in China
More than a disguised
Marketing Initiative
Taiwan
Discover the Northern Part of
this stunning Place
FOOD Safety
How production, logistics and retail ensure
the quality of our food
2010 October - November
1
2
October - November 2010
montfort advertising – klaus | ruggell | chicago | shanghai
Experience. Erfahrung. �� .
Essential for 2010, in any language.
28
Prestigious industry awards won
for annual reports since 2000,
with 15 first-place accolades.
1,200,000
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Impressive customer magazines,
Superb direct mailings, exact
published in 48 languages
targeted in 22 languages
for readers in 60 countries.
and delivered to 60 countries
worldwide annualy.
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in 123 events, trade shows and
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countries worldwide every year.
200
Powerful brochures each year,
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worldwide.
built for clients in 66 countries.
Klaus (A) | Ruggell (FL) | Chicago (USA) | Shanghai (CHINA)
Room 1101 | 555 Nanjing West Road | 200041 Shanghai | China
Contact: Oliver Lorenz | T +86 (0)21 5213 6600 - 800
B2B@montfortshanghai.com | www.montfortshanghai.com
3
C TICKER
Publisher
German Chamber of Commerce in China
Offices and Teams in Mainland China:
GC Ticker Team
Managing Editor (Shanghai)
Editor (Guangzhou)
Design (Shanghai)
Ms. Selma Koehn
Ms. Heidrun Buss
Ms. Ye Li
GCC l Beijing
0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd.
Chaoyang, Beijing 100004
' 010 6539-6688 6 010 6539-6689
* germanchamber@bj.china.ahk.de
Executive Chamber Manager
Ms. Donna Hannemann
Chamber Affairs Manager
Ms. Wang Miao 010 6539-6661
wang.miao@bj.china.ahk.de
Regional Manager North China
Mr. Christoph Fazakas
010 6539-6662
fazakas.christoph@bj.china.ahk.de
Editor GC Ticker
Ms. Donna Hannemann
GCC l Shanghai
25F China Fortune Tower, 1568 Century Ave.
Pudong, Shanghai 200122
' 021 5081-2266 6 021 5081-2009
* chamber@sh.china.ahk.de
Ms. Michaela Beck
Ext. 1630 beck.michaela@sh.china.ahk.de
Regional Manager Shanghai
Mr. Jan Höpper
Ext. 1656
hoepper.jan@sh.china.ahk.de
Regional Manager Zhejiang & Jiangsu Provinces
Mr. Sebastian Wegener
Ext. 1830
wegener.sebastian@sh.china.ahk.de
Communications Manager
Ms. Selma Koehn
Ext. 1637
koehn.selma@sh.china.ahk.de
Social Events & Marketing Manager
Mr. Sebastian Zettelmeier
Ext. 1605
zettelmeier.sebastian@sh.china.ahk.de
Project Manager
Ms. Li Yandi
Ext. 1609
li.yandi@sh.china.ahk.de
Chamber Team Assistant
Ms. Liu Li
Ext. 1650
liu.li@sh.china.ahk.de
Holger Sindemann
Chairman of the Board, GCC l South China
President & CEO, MTU Maintenance Zhuhai Co. Ltd.
What’s next?
Food safety and risk avoidance
in China.
With the EXPO in Shanghai coming to an end on 31st October 2010, everybody seems to ask ‘What’s
next?’. China already has an answer: the 16th Asian Games 2010. It is the second largest multi-sport
event after the Olympic Games, being held in November in Guangzhou. Yet another occasion to
present to the world that China is a land full of opportunities and development.
As often, there are two sides of a story. While some celebrate China’s growth potential and
development others still remain hesitant to fully trust the overall positive post-crisis development.
The risks and challenges for Sino-German businesses and the ‘What’s next?’ question are
thoroughly discussed during the biennial Hamburg Summit in November. Minimizing uncertainty
for investment in an environment with frequently changing conditions is only possible through
exchange of information and experience. Therefore, this issue of the GC Ticker provides you with
information about the status quo of the proudly promoted new development zones and areas in
Chongqing Municipality, about active crisis management in China and how CSR activities enable
your long-term growth.
‘You are what you eat’ is what scientists, coaches or even parents have been saying for many years.
In the West, this proverb usually translates directly into the urge of consuming food with more
nutritional value to fuel our health. In an emerging country like China, however, the main concern is
how to ensure food safety, quality and standards from ‘farm to fork’. Our editorial team is shedding
some light on this comprehensive topic with regards to food safety in production & processing,
transport and food retail in China.
GCC l South China
2915 Metro Plaza, Tianhe (N) Rd.
Guangzhou 510620
' 020 8755-2353 6 020 8755-1889
* chamber@gz.china.ahk.de
Ms. Heidrun Buss
020 8755-8203
buss.heidrun@gz.china.ahk.de
Regional Manager
Mr. Max Zenglein
0755 8635-0487
zenglein.max@gz.china.ahk.de
Chamber Affairs Manager
Ms. Esther Hu
020 8755-2353 ext. 217
hu.esther@gz.china.ahk.de
Chengdu Liaison Manager
Ms. Astrid Schröter
1340 2857 262
liaison.manager.chengdu@gmail.com
Even with contingency plans and security/safety measures in place, we will always be confronted
with risks and uncertainties. Awareness is the first step towards the right direction.
Cover images: shutterstock.com
Mr. Ulrich Walker
Chairman GCC l Beijing
Chairman & CEO of Daimler
Northeast Asia Ltd.
Mr. Arved von zur Mühlen
Chairman GCC l Shanghai
Managing Director Greater China
Lufthansa German Airlines
Ms. Jutta Ludwig
Executive Director GCC l Beijing
Mr. Jan Noether
Ms. Alexandra Voss
Executive Director GCC l Shanghai Executive Director GCC l South China
GC Ticker is free of charge. For subscriptions or extra copies please e-mail your
nearest Chamber office. Previous issues of the magazine can be found on our
website www.china.ahk.de/publications.
©2010. German Chamber of Commerce in China. No part of this publication may
be reproduced without the publisher’s prior permission. While every effort has
been made to ensure accuracy, the publisher is not responsible for any errors.
Views expressed are not necessarily those of GIC/GCC
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With this in mind - stay safe, enjoy reading.
Yours sincerely,
Holger Sindemann
GCC All-China Board Members
Mr. Holger Sindemann
Chairman GCC l Shanghai
President & CEO
MTU Maintenance Zhuhai Co. Ltd.
5
26
CONTENTS
Business Focus
Community
8
News from Berlin and Brussels
58
Training & Education
59
Cutting through the Coaching Confusion
10
Member News
Beijing
Shanghai
South China
62
Environment
64
Health
10
12
24
26
26
29
32
34
34
36
38
40
40
41
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Cover Story: Food Safety
Al Dente? China's Ingredients
for safe Food put on the Menu
Watch What You Eat: The growing
Importance of Food Safety in China
The Journey of the Cod –
How the full Supply Chain is managed
Business Articles:
CSR in China
A Safe Bet
The Hamburg Summit
Regional Spotlight:
East China: Hangzhou
South China: Chongqing
Do you ever think about your breathing?
48
66
Sports
China’s Tennis Appeal: Athletics & Apparel
68
Giving Back
Chamber News
69
Art & Culture
42
Chamber Notices
71
New Books
44
Beijing
72
Travel
74
City Tour
Meet the Member:
Davie Lu: Fox Holdings
40
Cleaning Up – A Greener Path for the
Photovoltaic Industry
46
54
GCC Beijing held a press briefing about
current Sino-German business relations for
foreign correspondents while workshop
attendees learned about the importance of a
company’s reputation and climate protection
Shanghai
Double-Dip recession was topic of Augusts’
Chamber Meeting and latest trends of sectors
like legal, finance and automotive were taught
in workshops
Volunteering – the most direct way to help
your community
Updating China – Climate and Culture
North Taiwan: Stunning Nature and
Culinary Delights
Guangzhou: Pearls along the River
76
This & That
76
Church Calendar
78
Chamber Events Calendar
South China
HR and legal issues were the focus of
roundtables around South and West China
66
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7
BUSINESS FOCUS
NEWS FROM BERLIN AND BRUSSELS
NEWS FROM
BERLIN AND BRUSSELS
Summit in Brussels: Economy meets Politics
Brussels. After the success of the first
European ‘Companies Parliament’ two
years ago, more than 750 business men and
women coming from different European
countries – 96 of them from Germany
- will debate about EU politics for the
second time on 14 th of October 2010 in
Brussels. In the presence of high ranking
representatives of the EU parliament and
the EU Commission the economy will point
out its opinion on topics such as class-action
lawsuits, consumer protection, market
entry, education, environment and energy.
Mr. Hans Heinrich Driftmann, Chairman
of the DIHK, states that “the Companies
Parliament offers its participants the
opportunity to explain the economy’s point
of view to the parliamentarians directly.
Europe is our home market. Therefore
taking the basis of our prosperity – our
competitiveness - into consideration is
important.”
Privacy Protection of
employee data
German funds need individual
temporary solutions
Berlin. According to the DIHK the
planned law for privacy protection of
employee data should also incorporate
that employees can still control whether
company compliance regulations are met.
During the legislative procedure the DIHK
is pleading for a balanced positioning
between the employers’ requests and the
employees’ interests in protecting their
personal data. In this regard it should be
possible for employers to randomly control
the employees’ usage of e-mail and internet,
even if the latter is allowed to use them
for private purposes. This is the only way
to prevent corruption or to trace it back.
However, the private usage is in the interest
of the employee and without the option of
controlling it randomly most employers
wouldn’t allow it. Additionally the DIHK
claims that the data handling should still be
permitted as long as the employee agrees
with it.
Contact person: karstedt-meierrieks.
annette@dihk.de;Reppelmund.hildegard@
dihk.de
Berlin. In order to prevent small and
medium-sized companies from making
false decisions the DIHK and other
associations have addressed the importance
of temporary solutions in regards to the
economic fund to Mr. Rainer Brüderle,
Federal Minister of Economics and
Technology. Mr. Hans Heinrich Driftmann,
Chairman of the DIHK, urges that “many
companies are short of liquidity” and have
to get a capital loan. In this case, offers
like those of the KfW-Special Program as
part of the economic fund are a great help.
Furthermore, lack of securities are still
the main loan hinder. This is the reason
why the amplified bond line within the
economic fund should be continued.
The DIHK Chairman also emphasizes
that “the German economic fund was of
great importance to the companies when
overcoming the eco-nomic crisis. But in the
end governmental support can only be a
preliminary solution with an exit scenario.”
Contact person: boehne.alexandra@dihk.de
8
Major Sporting Events – Good
oppor tunities for German
Companies
Berlin. Prior to the preparation of the
World Cup in 2014 and the Olympic
Games in 2016, the Brazilian government
plans to place orders of around EUR 45bn
for the construction of sports facilities,
improvement of safety as well as further
development of the transportation and
tourism infrastructure. Due to excellent
references from the World Cups 2006 and
2010 German companies have good chances
of getting large orders from Brazil. Therefore
the DIHK sees orders of around EUR 5bn as
realistic. Profitable business opportunities
through rewarding World-Cup-deals are not
only offered to the more than 1.200 German
Companies based in Brazil but also to Brazilnewcomers such as innovative German
middle-sized companies. However, time is
short - order placing has already started.
Contact person: parche.oliver@dihk.de
Minister von der Leyen’s View
on Corporate Citizenship
Berlin. According to Mrs. Ursula von der
Leyen, Federal Minister of Labor and Social
Affairs, Corporate Citizenship shouldn’t
only be a matter for a director’s level but for
everybody’s personal engagement in general.
Before the summer break she received a
detailed report dealing with recommendations
about how to further corporate citizenships. The
report was elaborated by 44 experts of fields
like economy, labor unions, non governmental
organizations and different ministries. In
their report representatives from several top
economic organizations could successfully
stress the voluntary nature of corporate
citizenship and hold against a legal obligation
and standardization that had been claimed by
labor unions and other organizations. During
the presentation of the report Mr. Achim
Decker, Deputy General Manager of the DIHK,
pointed out that corporate citizenship is already
very common among medium-sized companies
in Germany. Based on the report the Federal
Government will pass a national CSR-Strategy.
Contact person: huels.klaudia@dihk.de
9
BUSINESS FOCUS
MEMBER NEWS BEIJING
MEMBER NEWS
BEIJING
Innovation Award for
Sartorius
On 3rd June the 2010 edition of the “Ringier
Food & Beverage Technology Innovation
Awards” ceremony was hosted by Ringier
Industry’s International Food Processing
& Packaging Business, International
Food & Beverage Ingredients, China
Beer Brewing Industry and Food Pacific
Manufacturing Journal at the Shanghai
New International Expo Centre. It
honored those who have made a
significant technological contribution
to China’s food industry in its annual
technology innovation awards issue.
The Sartorius NIR PMD500 process
analyzer received the “Process Analytical
Technology Innovation Award—Food
Safety”.
Sartorius utilizes its PMD series process
analyzer and control technology to
eliminate hidden quality risks and
completion of quality control during
p ro d u c t i o n p ro c e s s . I t a l s o o ff e r s
practical solutions for the improvement
of productivity, cost savings and turning
i n n o v a t i o n s i n t o re a l c o m p e t i t i v e
advantages.
New Management for
Viessmann
The China and Hong Kong presence of
the German heating systems provider
Viessmann is now under the general
management of Mr. Torsten Dietze.
The mechanical engineer previously
held various multinational executive
positions in the heating technology sector
and is continuing his China path with
Viessmann, to whose Chinese subsidiaries
he also acts as Chairman of the Board.
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German Experts in China
With an increasing number of Western
companies operating in the rapidly
developing Chinese market, there is
a growing need for first-class training
specialised for leaders and managers of
international companies in China. In order to
respond to this need and provide a platform
to exchange ideas and experiences, AsiaPacific Management Consulting (APMC)
will be organizing the
GERMAN EXPERT
FORUM for the second time this year.
From October 15th to
December 16 th, nine
German experts with
various specializations in subjects such
as Risk Management,
Planning & Budgeting, International
Sales Organization,
Certified Management Systems, Leadership Skills, and
much more, will act
as trainers in a series
of seminars in Shanghai and Beijing.
APMC launched the GERMAN EXPERT
FORUM for the first time last year. The great
response to this event series convinced Dr.
Kuang-Hua Lin, President of APMC, of the
need for personal coaching and training of a
high international standard in China.
www.china.ahk.de
New Office for Freudenberg IT
Freudenberg IT China has opened a new
office facility in Beijing. With the newly
equipped office, Freudenberg IT strengthens
its footprint in the North China region. The
new facility is located in Chaoyangmen,
within the business heart of Beijing.
Freudenberg IT China is an IT service provider
for enterprises in the manufacturing and automotive industry. As an international IT company, Freudenberg IT implements, optimizes and
operates SAP solutions. Freudenberg IT China
offers consulting services, outsourcing solutions and application management support for
SAP. The adicom software suite is Freudenberg
IT’s own Manufacturing Execution System
(MES) software product.
After one year in temporary facilities, the
new office marks a milestone for established
and growing business in the region. Beside
the headquarters in Suzhou, Freudenberg
IT has branches in Shanghai, Beijing and
Guangzhou and is established in all regions
throughout China. The regional offices allow
Freudenberg IT China to maintain closer
customer relationships and to have a strong
connection to regional market developments.
Team Expansion and new Office for Dezan Shira
Dezan Shira & Associates (DSA), the
specialist foreign direct investment practice,
has opened a branch office in Qingdao, to
better service and expand its business in
this region. After ten years servicing clients
there, the relationship with this city has
been cemented in early September. The
firm’s Qingdao office will provide business
advisory, corporate establishment, tax,
accounting and due diligence services to
foreign investors in and around the city.
In an effort to expand its local operations,
DSA also welcomes Mr. Fabian Knopf as
a new Business Development Associate in
Shanghai. Recently transferred from the
firm’s Beijing office, Mr. Knopf will be in
charge of further enhancing DSA’s presence
in Suzhou by establishing a new branch
office.
11
BUSINESS FOCUS
MEMBER NEWS SHANGHAI
MEMBER NEWS
SHANGHAI
Food Safety Campaign for
Kids
On 10th July 2010, METRO Cash & Carry
China rolled out a nationwide campaign
for food safety education in major China
cities. It was an initiative to promote food
safety awareness and spread knowledge
to children during their summer vacation.
The campaign, themed ‘Safe Food, Happy
Life’, spanned across two months, with
attendance of about 1,500 children from 12
cities such as Shengyan, Beijing, Shanghai,
Hangzhou, and Guangzhou. Children
enjoyed and learned from a vivid cartoon
movie, lectures and interactive games with
food safety experts.
“We are very pleased to share our expertise
with children all over the country and
help them and their parents to understand
the importance of food safety,” said Ms.
Katrin Sulzmann, Head of Corporate
Communications, External Affairs & CSR,
METRO Cash & Carry China.
LANXESS Eco-Consciously expands Capacity
LANXESS AG, a German specialty chemicals
c o m p a n y, i n a u g u r a t e d a n u p g r a d e d
wastewater treatment plant in Liyang,
Jiangsu province on 19th July 2010. The new
state-of-the-art facility will help reduce the
plant’s emissions to build an even more
environmentally sustainable production site.
LANXESS applied its advanced production
processes based on German technology
and leading environmental standards to
the project. The wastewater treatment plant
in Liyang not only complies with all local
and national regulations, but naturally has
been designed to stay consistent with the
company’s global standards.
Additionally, LANXESS announced the
facility in Liyang will be upgraded in order
to expand production capacity. The first
phase is scheduled for completion by the
end of 2010 and the second phase by the end
of 2011. The new capacity will be more than
double the current one.
New President Asia at Brose
Since July 2010,
formerly Executive
Vi c e - P r e s i d e n t
( P ro d u c t i o n ) a t
the Brose Group
Mr. Thomas
Spangler has been
re s p o n s i b l e f o r
Brose Asia. His
aim is to grow
the business supported by the regional
presidents in China, Korea and Japan
and to advance market development in
the ASEAN nations. As a group board
member, Mr. Spangler will also support
the development of electric mobility in
Asia and regional sourcing activities.
12
M r. S p a n g l e r s e e k s t o e x p a n d t h e
success of Brose China, which has been
recently honored: Three Brose plants in
Shanghai and Wuhan have been awarded
in recognition of their outstanding
achievements in regards to technology,
quality, competitiveness, timely delivery
and customer orientation which are
Shanghai Brose Automotive Components
Co. Ltd. with the “Excellent Quality
Performance Silver Medal” by Shanghai
Volkswagen, Shanghai Brose Electric
Motors Co. Ltd. with the “Top 10 Supplier
Award” by Dongfeng Peugeot Citroen
Automobile Company Ltd. and Brose
Wuhan Automotive Systems Co. Ltd. with
the “Excellent Supplier Award” by Geely
Holding Group.
New Arbitration Expert at
Salans
M r. D a r r e n
FitzGerald joined
Salans on 7 th June
2010, as the firm's
first international
Arbitration Partner
in Hong Kong. He
has worked in the
Asia-Pacific region
for 15 years and will
focus on international arbitration and crossborder litigation, with particular emphasis
on Hong Kong and China-related disputes.
Mr. FitzGerald is a fellow of the Chartered
Institute of Arbitrators, Shanghai Arbitration
Commission, Hong Kong International
Arbitration Centre and Hong Kong ICC
committee.
Ms. Brenda Horrigan, co-head of Salans
International Arbitration Practice Group
who recently relocated from Paris to
Shanghai, said, "Salans International
Arbitration Practice in Asia is growing
rapidly, and with Mr. FitzGerald’s profound
experience and his knowledge of the region,
he is well-positioned to help us continue to
expand.”
Mr. FitzGerald speaks German, English and
French, and is a member of Salans German
International Practice Group that tends to
the particular need for German-language
advice in international markets.
www.china.ahk.de
New F&B Director at InterContinental
Pudong
Mr. Emmanuel Stavrakakis has
been appointed Director of Food
& Beverage at InterContinental
Shanghai Pudong. He will be in
charge of all F&B activities and
contribute his expertise to bring a new
perspective to his role at the hotel.
Mr. Stavrakakis is a German national, with many years of experience
in the F&B field. Having started
his career as an apprentice at the
Crowne Plaza Heidelberg in 1994,
he occupied many F&B positions at
international hotels on his way to
his current standing. Prior to his appointment, Mr. Stavrakakis was
Executive Assistant Manager-F&B at Crowne Plaza Fudan.
A New Beginning
The first continuous press production line independently researched
and manufactured by Shanghai Wood-based Panel Machinery Co.
Ltd. (SWPM) has produced its initial board successfully. After a
smooth beginning of operations on 29th April 2010, SWPM could
already serve their first customer on 4th June 2010.
Located in Anting Industrial District, SWPM occupies an area of
88,000m2. Strictly abiding by ISO9001-2000 International Quality
Management System, it exercises quality control throughout the
entire production process. In addition, SWPM’s highly experienced
experts provide each customer a systematic and distinctive solution
to his or her individual project.
New CEO at Ipsen
Since 1 st June 2010 Mr. Oemer
Akyaziciis is the new CEO at Ipsen China. His appointment has
been announced by CEO of Ipsen
International Holding, Dr. H. Grobler, during a welcome ceremony
in Shanghai. Mr. Akyazici has a
profound executive background
in an international environment,
especially in the field of supplying
solutions and systems including
services, standardised and specialpurpose machines, components and
products for different business fields
and industries.
Ipsen, a leading heat treatment equipment and solution provider,
has an exciting and unique business expansion in China since
1994. Under leadership of the new management, Ipsen China will
move into the next phase of its development.
New PwC Partner in Shanghai
Mr. Marc Wintermantel became a
partner in the advisory practice of
PwC in July 2010. He has fourteen
years of experience in transaction
services. He started his career
with PwC in Stuttgart, Germany,
where he spent eight years before
transferring to New York, USA,
where he worked for three years.
Mr. Wintermantel came to Asia
two and half years ago, working
at the Singapore office as the
valuations leader for Asia Pacific.
Focusing on valuations for financial
reporting under US GAAP and
IFRS and on M&A valuations, he has extensive hands-on experience
in transaction services projects, i.e. financial due diligence, M&A
valuations and Purchase Price Allocations.
13
BUSINESS FOCUS
Schaeffler receives
Chang’an Ford Mazda Q1
Award
Weidmuller cooperates with SJTU and relocates
Headquarter
In late July Weidmuller held a signing
ceremony with the Shanghai Jiao Tong
University (SJTU). Mr. Victor Wan, President
Greater China of Weidmuller, and Mr.
Yu Wenxian, the Director of the School of
Electronic and Electric Engineering of SJTU,
presented the grand ceremony.
Weidmuller is the leading manufacturer of
electrical connection technology and electronics
in the world. Next to its activities the company
pays also a growing attention to cooperate with
universities in order to contribute to cultivating
talents in the electric disciplines. As one of the
best universities in China, SJTU has already
graduated a numerous number of outstanding
students. Having had this signing ceremony
for the strategic cooperation with SJTU,
Weidmuller will further continue to contribute
more in China.
Weidmuller's China Headquarter has moved
into 25F, BM Intercontinental Business Center
100 Yutong Road in Shanghai. The company
will continue its on-going steps to provide the
China market more prompt services response,
highly-effective industry solutions and
excellent products.
Does your consultant
provide general knowledge?
您的咨询顾问只提供您些常识?
Better yet,
he demonstrates
expertise
他最好能具有
专业知识
Schaeffler (China) Co. Ltd. located in
Taicang, has received the prestigious
Q1 Award from Chang’an Ford Mazda
Automobile Corporation in recognition
of its supplier performance. The award is
testament to the product quality, timely
delivery and customer satisfaction that
Schaeffler exerted while manufacturing
and supplying wheel bearings to
Chang’an Ford Mazda.
The Chang’an Ford Mazda Q1 award
was established to encourage suppliers to
constantly provide high-quality products
and has become the benchmark to
evaluate quality performance of suppliers
in the automotive industry. Receiving the
Q1 award symbolises exceeding efforts to
deliver quality products and performance.
Once a supplier is granted with this
award, it becomes the qualified supplier
in Chang’an Ford Mazda’s global system.
Taicang Abodes New VAST Plant
Vehicle Access Systems Technology Alliance (VAST Alliance) China
began constructing a third plant in the Taicang Development Zone
of Jiangsu. This new plant will expand their current capabilities
in China by adding injection molding, painting and assembly for
automotive door handles. This enables VAST Alliance partners to
provide the same level of products and service in China as they do in
their home markets of Europe and North America. In addition, the
new facility will also produce lock sets, latches, driver controls and
power access products.
Furthermore the Taicang site encompasses over 35,000m2 of land that
will also house the VAST China headquarters in an office building
with around 800 employees.
Moving Your Enterprise
www.M anagem ent Engineer s . c om
14
www.china.ahk.de
New R&D Center for Bosch
Bosch signed a contract with the local
Changsha government to extend its land
plot for manufacturing and R&D facility
expansion on 16th August 2010. Covering an
area of 30,000m2, the design plan includes
a new production facility, office-laboratory
and auxiliary building. The project’s
total investment reaches CNY 240mn and
construction is expected for completion by
mid 2012. In addition, a new R&D center
for electrical drives and starter motors &
generators divisions will be located at the
site. It is Bosch’s fifth local R&D center
for automotive technology in China, after
Shanghai, Suzhou, Wuxi and Chongqing.
After completing in 2012, the new center
will have another 150 engineers in addition
to the current 200 staff.
New CEO at Putzmeister
Shanghai
PM Group has appointed Mr. Li Tao as
Chief Executive Officer of Putzmeister
Shanghai. He has over 20 years experience
within business fields such as sales,
engineering and manufacturing. He
g r a d u a t e d f ro m S h a n g h a i J i a o To n g
University and majored in Marine
Engineering and got a master degree of
business administration from Wu Han
University.
Bizerba receives Award
Bizerba China received the Technology
Innovation Award from the Organizer Ringier
Media on July 14th 2010. The Award was
initiated by Ringier Media in order to publicly
honour new technological innovations
which benefit the
industry and the
society in general.
Main concern of
this year ’s award
criteria has been
“green technology” –
technology that leads
to lower waste or carbon emission, improving
product safety, achieving sustainable growth.
Bizerba has been given the Award for its
solution that can significantly reduce the
material giveaway and production costs.
15
BUSINESS FOCUS
Award for Bureau Veritas
B u r e a u Ve r i t a s ( C h i n a ) h a s b e e n
awarded with major Construction Project
Management and Technical Consultancy
contracts in May 2010. These major deals
include a contract with Sogo Properties Ltd.
to provide technical consultancy for their
new shopping mall project in Shenyang, as
well as a project management contract with
local DIY retailer Red Star Macalline for
construction in Tianjin.
Duisport Packing Logistics - New Hire at Deutsche Bank
New Technical Director
S i n c e 1 st A u g u s t
2010, the Shanghai
Representative
Office of Duisport
Packing Logistics
GmbH has a new
Technical Director.
Mr. Hans-Guenter
Mueller comes
to Shanghai from
DPL Headquarters
in Duisburg. He brings around 30 years
of professional experience in the field of
export packing. He looks forward to the
upcoming challenges and opportunities that
lay ahead in working with the China market
and servicing a client base with multiple
requirements.
Since the opening of DPL Shanghai office
in August 2008, the company has grown to
embody ten staff including three Germans,
serving mostly German companies and their
local suppliers with professional packing
solutions directly at their facilities or from
the DPL warehouse in Baoshan.
Mr. Tilmann Dengler
has relocated
from Germany to
Shanghai to join
Deutsche Bank
(China) Co. Ltd. As a
Senior Relationship
Manager, he will
further deepen the
bank’s coverage of
German companies
in the greater Shanghai area. He will work
together with Mr. Andreas Odrian, who is
heading the business with multinational
clients. Deutsche Bank is serving corporate
and individual clients out of branches in
Shanghai, Beijing, Guangzhou and Tianjin
with around 600 employees.
Mr. Tilmann joined Deutsche Bank in 1998
in Munich. Before his move to Shanghai he
looked after clients of German small and
medium-sized companies in Wuerzburg,
the northern part of Bavaria. Serving the
subsidiaries of German small and mediumsized companies will also be a focus during
his work in Shanghai. Mr. Tilmann holds
a German law degree and has various
international experience including working
in the legal department of the Indo-German
Chamber of Commerce in Mumbai, India.
New Sales Manager at Sofia Group
Ms. Amanda
Zhu was recently
promoted to work
as sales manager
within Sofia Group’s
team of commercial
real estate agents.
She assists Western
multinational
companies with
office rental
16
research and negotiations. Mrs. Zhu joined
the company only six months ago and is
promoted after strong performance and
excellent customer feedback.
At Sofia Group Mrs. Zhu serves as tenant
representative for office tenants, amongst
others providing information on available
offices and discounted lease rates of Grade
A buildings to existing key-accounts and
potential new clients.
These two contracts will significantly
reinforce Bureau Veritas’ presence in the
construction market in China. Bureau
Veritas (China) is now building new
facilities from coastal China to Mainland
China and Hong-Kong with major players.
Hilton Worldwide appoints
new General Manager
Hilton Worldwide hired Mr. Brice Péan
as General Manager of its newest hotel
in China, the Hilton Shanghai Hongqiao.
Mr. Péan will be responsible for all aspects
pertaining to the success of the hotel from a
commercial, operational and financial point
of view, in line with the Hilton values. Mr.
Péan joins from The Fiji Beach Resort & Spa
managed by Hilton Worldwide, where he
held the position as General Manager.
He brings to the role more than 20 years of
experience, which spans four continents
and some of the world’s most exclusive
hotels. He has spent the past 11 years with
the Hilton group. He is of French origin and
holds a degree in hotel and tourism from the
Tourism College of Innsbruck, Austria.
Ceremony for Continental
Continental, one of the leading international automotive suppliers
and tire producers worldwide, held the machinery installation
ceremony for its new car tire plant in Hefei on 4 th July 2010.
The ceremony coincided with the visit of a Lower Saxony State
Government delegation from Germany at Anhui Province. The
delegation, led by Mr. Jörg Bode, the Minister for Economics,
Labor and Transport and Deputy Prime Minister of Lower Saxony,
attended the Continental machinery installation ceremony.
The first project phase has been successfully accomplished, with
70,000m2 of plant constructional area and state of the art machinery
for tire manufacturing. Over EUR 185mn of investment has been
poured into Continental’s Passenger and Light Truck Tires (PLT)
Division, which is the first manufacturing unit for tires in China and
part of the expansion and growth strategy of Continental in Asia.
ruhlamat relocated Suzhou Factory
Due to the surpassing growth rate of the industrial markets in Asia,
the head office of ruhlamat China moved to a new plant in Suzhou
Industrial Park, expanding the research & design office and the
production facility. Now ruhlamat (Suzhou) has two buildings and a
total plant area of 6500m2 with 160 employees.
17
BUSINESS FOCUS
Niedersachsen Office held
Reception
T h e N i e d e r s a c h s e n R e p re s e n t a t i v e
Office, together with Niedersachsen
Global, the foreign trade and investment
promotion agency of Niedersachsen,
held a reception on the occasion of
“transport logistic China” trade fair in
Shanghai. More than 100 high ranking
guests, including senior managers from
Cosco and China Shipping attended the
event to learn about Niedersachsen as the
“Gateway to Europe”. The development
of the new deep-water container harbour
“JadeWeserPort” is of great significance
also for China. Most of the guests were
impressed by the presentations about
Niedersachsen’s transport connections
as well as the current and future
opportunities in regards to mobility and
logistics.
New Branch Managers at Kuehne + Nagel
News from Abendbrot
Kuehne + Nagel Ltd. is pleased to announce
the appointment of Mr. Gino Marzola as
Branch Manager Shanghai since 1st August
2010.
Mr. Karl Breitenwieser is the newest
addition to the ABENDBROT-team. In the
course of their expansion Mr. Breitenwieser
will be responsible for website development,
customer care and logistics optimization.
Starting his career in the airfreight division
of Kuehne + Nagel Zurich, Mr. Marzola has
been working in the international transport
and logistics industry for more than 25 years.
Since 1991 he assumed various managerial
positions in different Asian countries for
Kuehne + Nagel until he became Branch
Manager for the Beijing organization in 2003.
Mr. Peer Rasmussen has been appointed
as Branch Manager for Kuehne + Nagel
Beijing since 15 th July 2010. With vast
industry experience in Europe and the USA,
Rasmussen joined Kuehne + Nagel Malaysia
in 2004. Prior to joining Kuehne + Nagel
Shanghai as Seafreight Manager in 2008, he
was General Manager – Seafreight at Kuehne
+ Nagel Thailand and Cambodia.
Mr. Gino Marzola
Kuehne + Nagel is one of the world’s leading
logistics providers with a presence at 40
locations in China. The company employs
more than 2,600 employees in the country.
Mr. Peer Rasmussen
18
On multiple customer requests
ABENDBROT added spelt bread (not
containing wheat) to their selection of
professionally produced breads made with
ingredients imported from Germany and
also offers most of their breads in already
cut versions. Furthermore they provide
customers with free delivery without any
minimum order quantity.
New Losberger Branch in Chengdu
Tent specialist Losberger recently opened a new branch in Chengdu.
It is the fourth branch after Shanghai, Beijing and Guangzhou where
Losberger will offer a complete range of tent rental, sales services as
well as an independent warehousing facility. Furthermore professional
project managers and setup teams provide their support to customers.
General Manager Christopher Odin and his team are looking forward
to providing Losberger’s premium event tents, festive marquees and
temporary warehouses to West China’s finest events, exhibitions and
to the manufacturing industry.
New Marketing & Sales Manager
at Ingenics
Ms. Carolin Frey recently joined
Ingenics Consulting in Shanghai.
She will be responsible for
Marketing and Sales as well
as the Customer Relationship
Management. “China is one of
the most rapidly emerging and
dynamic markets. We always have
to keep our eyes open, be sensitive
about the development and
recognize our customer needs,”
said Ms. Frey.
Prior to coming to China, Ms.
Frey was working in the Ingenics
Headquarters in Germany
since 2005. After graduating
in International Business
Administration, Ms. Frey was active in Marketing for Central and
Eastern Europe at the BMW Headquarters Munich, before joining
the Marketing and Sales Team at BMW in Slovenia. Ms. Frey added
that she is very excited about the challenges which lie ahead, as “we
are already on the right course – our current projects all over China
prove that we have made the right decisions in the past”.
19
BUSINESS FOCUS
Grand Opening of WM Trading in Shanghai
On 28th July 2010 WM Trading (Shanghai) Ltd. held an opening
ceremony in the Kirin Plaza, Shanghai. The company is a subsidiary
of WM Motors and will offer services for marketing environmental
and green power products, technical support, after sales and
distribution network. Furthermore, WM Trading was established in
order to expand overall business in Asia and to handle local projects
in China.
Ms. Michaela Beck, Executive Chamber Manager and Mr. Edward Hsu, General
Manager of Kirin Real Estate opening the ceremony.
Mrs. Isabel Wiedenroth, CEO of WM Motors GmbH, said, “In this
way we show our trust in the Chinese market, our confidence in our
cooperation partners and we believe in our China success, due to
experienced intercultural knowledge, intelligent marketing strategy
and sustainable company concept.” The event was supported by
the German Chamber of Commerce  Shanghai. During the opening
ceremony Mr. Titus Freiherr von dem Bongart, Board Member
German Chamber of Commerce  Shanghai, explained in his speech
that China is still a challenging place to do business, in particular
for small and medium-sized companies. He stated that despite all
circumstances WM Trading has already successfully taken the first
hurdle in upgrading its operational set up from a representative
office to a legal entity and this within only two years.
Ernst & Young moves into Shanghai World Financial Center
Catering for further expansion in China
Ernst & Young has moved into a new office
in China’s tallest building and premier
location - Shanghai World Financial Center
(SWFC) in the Pudong District of Shanghai.
The new office brings together Ernst &
Young’s 2,500 people under one roof
enabling the company to provwide better
services to its clients and catering for its
further expansion in the China market.
Previously with its Shanghai office in three
different locations, Ernst & Young now
occupies eight floors at SWFC, equivalent
to approx. 30,000m², helping meet Ernst &
Young’s growing demand for office space as
business needs accelerate in China.
people in China, and will further grow our
manpower with the business”.
important role in the development of the
Shanghai and national economy”.
Mr. Albert Ng, Ernst & Young’s China
Chairman and Greater China Managing
Partner, said, “The move to our new home
at SWFC underscores how committed we
are to expand our business in China. China
offers exciting growth prospects for Ernst
& Young, and we are proud to play an
Ernst & Young is a global leader in assurance,
tax, transaction and advisory services.
Worldwide, our 144,000 people are united
by our shared values and an unwavering
commitment to quality. We make a difference
by helping our people, our clients and our
wider communities achieve their potential.
The grand opening ceremony in August
2010 was officiated by Mr. Xu Lin, Party
Secretary of Shanghai Pudong New Area
(PDNA) People’s Government, Standing
Committee of the CPC Shanghai Municipal
Committee, and Mr. Yan Xu, Deputy
Governor of Shanghai PDNA, Standing
Committee of the CPC Shanghai PDNA.
Mr. James Turley, Global Chairman and
CEO of Ernst & Young, said, “Our business
in China, which is one of the world’s largest
economies, forms an essential part of our
business globally. Our confidence in the long
term prospects in China is demonstrated
in the investment in our business and
our people. We currently have over 9,000
20
Mr. Albert Ng, China Chairman and Greater China Managing Partner of Ernst & Young (left) and
Mr. James Turley, Global Chairman and CEO of Ernst & Young
21
BUSINESS FOCUS
MEET THE MEMBER
What is your personal and business
background?
village model from Europe to the Chinese
market. This model combines travel with
shopping, like our Douglas Brands Village
in Suzhou. We feel that this concept is getting more and more popular. That’s why
we are planning to build more than seven
garden-style shopping villages in the cities
of Beijing, Chengdu, Guangxi, Changzhou,
Wuhan, Shenyang and Nanjing in the years
2010 to 2012. Each village will cover an area
of more than 100,000m2.
Could you tell us a little bit about your
company and activities in China?
What is your competitive selling point?
While I was doing my MBA abroad, I recognised that “outlet” as a business field would
have a potential market in China. Therefore,
I decided to introduce this retail format to
China. Luckily, I was the first person with
this idea and in 2003 I established Fox Holdings in Shanghai. Up until now, the company
has grown into one of the most popular and
largest discount retail chains in China.
Davie Lu
Company: Fox Holdings
Job Title/Position: CEO
Year of Foundation: 2003
HQ (location): Shanghai, China
Main Business: Outlet Shopping Mall
Number of Employees: Above 1,000
22
Fox Holdings manages outlet retail chains
as its main business. We own two outlet
brands, Foxcity and Douglas. In addition to
outlet retail chains, we also offer services in
the B2C (business-to-consumer) field. In this
regard we are cooperating with a popular
German duty-free store, Jelmoli, which developed an entertaining shopping internet
platform named Mysiq.com. It provides
clients with global luxury goods at European
prices, similar to an online shopping centre.
What are your short- and long-term objectives, especially in China?
Within the next two years we are planning to
open more stores like the Guiyang store and
Eerduosi store. Furthermore, Fox Holdings
is introducing the garden-style shopping
Our business philosophy is “big brands,
small prices”. This basically means that we
always strive to provide high-end brands
at affordable prices. Our goal is to ensure
that customers have the possibility to either
choose their favourite brands or just enjoy a
pleasant shopping experience.
Any top tips for doing business in
China?
Since China is so big, its business market is
very complex. There are a lot of opportunities
but also huge challenges. Furthermore, the regional differences are extreme, e.g. between the
northern and the southern parts of China. And
since people’s lifestyles and habits are very different, it’s very important to make an analysis
of the market and its environment before you
decide on a special kind of business.
23
BUSINESS FOCUS
MEMBER NEWS SOUTH CHINA
MEMBER NEWS
SOUTH CHINA
The 300t heavy two colour plastic injection machine has arrived at IPTA Shenzhen
TDK-EPC Corporate Culture
and Vision Alignment
TDK-EPC Zhuhai FTZ Managers shaping the
visions for 2020.
On 2nd and 3rd July 2010, the management
of TDK-EPC Zhuhai FTZ gathered in order
to review the local core ideology of the
company and its vision for 2020. This second
step in their ongoing vision and corporate
culture alignment project gave the managers
a unique opportunity to contribute to the
local culture and to shape the vision for
2020.
On the first day of the workshop, around
forty leaders reviewed the core values and
created the behaviour traits for each value.
On the following day, leaders focused on the
TDK-EPC’s 2020 vision and strategic roles.
In addition to that, they also identified key
leadership competencies and behaviours
necessary to hit their target.
German Industry & Commerce Greater
China | Guangzhou and Sino Associates
facilitated the workshop which was held in
Sofitel Royal Lagoon Hotel Dongguan.
24
Allianz set up Subsidiary in
Guangzhou
With the official approval from the Chinese
Insurance Regulatory Commission, Allianz
Insurance Company Guangzhou Branch has
transformed from a branch into a subsidiary.
It has recently completed all legal processes
including business license application
procedures to reconstitute itself as Allianz
China General Insurance Company Ltd.
The new subsidiary has offcially commenced
operations on 1 st July 2010 and provides
insurance coverage for large commercial
entities in the fields of property, engineering,
liability and marine. The official ribbon
cutting ceremony took place on 23 rd July
2010.
From left: CEO Mr. K. Voeste und Regional Manager
Mr. K-H. Jung cut the ribbon on 23rd July 2010
State of the Art Machine
arrived at IPTA Shenzhen
The Institute of Plastic Technology
and Application (IPTA) in Shenzhen
announced the arrival of its new two
colour plastic injection machine. Built
by one of the leading plastic processing
machine manufacturers, the German
Krauss Maffei, it offers a clamp force
of up to 300t with two injection units
and integrated turn table. Completely
equipped with German Koch drying and
dosing equipment and a closed cooling
system of German Single, this state of
the art unit offers high precision plastic
part manufacturing according to German
industry standards. With this IPTA now
has widened its service range of mould
testing and qualification to all its clients,
specifically in the two colour technology.
Having increased the machine capacity
IPTA will now also be able to offer plastic
injection processing workshops to the
public.
Grand Opening for Hella
With successful operations at Hella Beijing
and its Chengdu Representative Office, Hella
Trading (Shanghai) Co. Ltd. opened the third
Representative Office in Guangzhou in July
2010. Guangzhou is one of the largest spare
parts markets and a strategic focus of Hella
in South China. With the establishment
of the Guangzhou Rep. Office, Hella will
provide faster and better sales service as
well as a platform to promote new products
to customers in this region. “Guangzhou
Rep. Office has been established to carry
out the ‘4+2' concept and to be closer to
the customers of this region and to offer
them full-service solutions,” said Mr. Lionel
Vautrin, General Manager of Hella Trading
(Shanghai) Co. Ltd.
Customer Service Award for Linde
On the GE (China) Supplier Day on 22 nd
July 2010, Linde (China) received the "2009
Customer Service Excellence Award". Mr.
SC Tee, Strategic Marketing Director of
Linde (China), was glad that his company
emerged among the many suppliers who
were invited to the event. As an equipment
manufacturer, it was the only company
of its industry that received this service
excellence award. GE recognized Linde
for being a “responsible company with
high integrity, while also being simple and
efficient in the services provided to GE
across the various business units.”
www.china.ahk.de
Opening Party SEC & OYNT
New Office Space for Companies in Hong Kong
On 16th June, South East Consulting (SEC) and
Shenzhen Ou Ya Nike Technologies (OYNT)
celebrated their office opening. Members of
the German Community, members of GCC l
South China as well as business partners and
key suppliers of SEC and OYNT attended the
opening of the 128m² office. The new office
is located between LongHua and Meilin and
will enable six employees to consult German
companies in China as well as to trade “green”
products to Europe. Furthermore, the office
improves the cooperation between SEC and
OYNT whose CEO is Dr. Martin Sonnek.
OYNT is a recently founded company which
produces plastic and metal products at an
own factory. It mainly focuses on professional
technical, automotive and medical goods.
With the opening of its 12th business centre
in Hong Kong, the workplace solutions
provider Regus offers companies the
space they need to grasp the opportunities
opened up by Asia’s continued economic
recovery. Real estate services firm Jones
Lang LaSalle (JLL) expects office rentals in
the city to go up by at least 20-25% in 2010
as a result of lack of supply combined with
growing demand. Grade-A office space in
Hong Kong is particularly scarce in the
central business district where the
Regus Hong Kong Entertainment
Building centre is situated.
Adding almost 30 muchneeded offices to the city’s
portfolio, it is located on
the 30th and 31st floors
in the highest zone
of the building.
CEO Dr. Martin Sonnek has a toast on the new
office
Ambrosius works for EXPO 2010.
More than 5 years experience in Asia and more than
130 years experience in Germany make us your best
partner for your next EXHIBITIONS, EVENTS, INTERIORS,
MUSEUMS, ENGINEERING.
We provide solutions.
Shanghai 2010 EXPO
Shanghai Pavillion
Sweden Pavillion
Bremen Pavillion
Ambrosius Exhibition Design and Building (Shanghai) Co., Ltd.
Suite 2504 / Sheng Gao International Mansion No. 137 / Xian Xia
Road 200051 Shanghai / ph. +86(21)62285533 / m. +86 18601790188
info@ambrosius-china.com
25
BUSINESS FOCUS
COVER STORY
Scrutinizing gummy candy at Trolli Guangzhou Confectionary Co. Ltd.
Al Dente?
China's Ingredients
for safe Food put on
the Menu
26
Recalling the media hysteria during the recent food scandals in
China, one could easily assume that Chinese food safety legislation
is slack. However, did you know that bakeries need a separate room
in which to process high risk products such as eggs? Or that workers
in a food factory have to get fully changed before going for lunch?
Not to mention that water for drinking is only allowed in specially
designated areas outside of the food production line? Or, that you
need four separate locker rooms for workers inside packaging,
outside packaging, warehouse and maintenance as well as kitchen
areas of which each is divided into male and female? Considering
these examples, it is worth taking a closer look at two exemplary
food producers in South China who share their experiences of this
highly complex topic.
Let’s get one thing straight right from the beginning: “China has
one of the strictest food safety laws in the world,” reveals Mr. Karl
Inninger, General Manager of the world’s second-largest gummy
candy producer Trolli. “Many links in the production chain are
over-regulated,” he concedes. This observation might be quite
true for a gummy candy factory. From a food safety point of view,
the production of gummy candy involves comparably low risk
because the main ingredients such as sugar and flavours are neither
temperature sensitive, perishable or in any other way perilous.
However, the Chinese food safety law does not distinguish between
high and low risk products and therefore applies the welcomingly
strict regulations for high risk meat or milk to Trolli as well.
According to Mr. Inninger, China’s regulatory food safety system
today very much resembles the one in Western countries 30 years
ago. Germany, for example, experienced and acknowledged that too
detailed and too strict regulations might cause the opposite effect
www.china.ahk.de
to what they intended. Nowadays, it is more common to introduce
guidelines and reward adherence to voluntary standards, which help
to increase overall food safety, quality and awareness.
As a rule of thumb, Chinese legislation tries to generalise laws
and regulations rather than to specify in regard to products or
regions. New laws passed by the central government in Beijing
are often unfunded mandates which pose an enormous burden on
local officials as they lack the resources and means to carry out the
directives. “The officials in Beijing do have an extensive knowledge
of food safety related issues,” Mr. Inninger notes, “however,
local authorities often lack the full understanding and means for
implementation.” Furthermore, officials in China’s rural areas are
faced with difficult decisions when enforcing new directives. If
they shut down a food processor, not only do much needed jobs get
lost but also rural incomes such as taxes decrease. In its 2008 paper
“Advancing Food Safety in China”, the United Nations pointed out
that “because of difficulties of coordination within government, there
are corresponding difficulties of coordination between the different
inspection and enforcement authorities at the local level. This gives
rise to duplication in enforcement in some areas and insufficient
enforcement in other areas.”
Local authorities face an additional challenge when as yet unknown
production or processing methods are applied by foreign companies.
A good example is provided by the small traditional German bakery
Backstube [the better bakery] in Shenzhen. First of all, it is of course
difficult to implement a traditional German production concept in
China that does not fit into the Chinese definition of a bakery. It is
even more difficult to explain why there might not be any need to
build a separate room to process high risk ingredients like eggs.
The ingredients for handmade German bread are flour, water, yeast
and salt – no potentially decaying eggs, no emulsifying, stabilising
and preserving agents and no colours or other critical ingredients
common in industrial bread production. In contrast, a very common
ingredient in German bakeries is the potentially hazardous lye
needed for pretzel or lye bread production. Therefore, its storage and
handling is stated precisely by German ordinances. However, as this
ingredient is not common in China, no such official regulations for
the food industry exist.
Another peculiarity of China’s food production and processing
industry is the dominance of small processors, with almost 80% of
them having less than ten employees. Regulating these small and
mobile entities is particularly difficult as they are flexible enough
to move locations or switch products when faced with an adverse
situation. Therefore, the government focuses on imposing food safety
regulations first on bigger companies that export to international
markets. With total food exports of about USD 7.17bn in the first
quarter of 2009, China continues to grow as a major food exporter
and subsequently becomes more and more dependent on trade with
the international community.
Moreover, a food scandal abroad threatens to seriously damage
the reputation of products made in China. As a result, the State
Administration of Quality Supervision, Inspection and Quarantine
(AQSIQ) rigorously monitors all food products that leave the country.
As a supplier to the entire Asia-Pacific and American market, Trolli
in Guangzhou exports 75% of its annual gummy candy production
to over 50 countries. Every container is checked and released by
AQSIQ officials who take samples. This procedure can take up to ten
working days. The officials also visit Trolli’s production facilities once
a month, checking the flow of materials and finished goods, taking
samples, speaking to the workers and so on.
Testing, analysing and auditing are the key to ensure food quality
Apart from adhering to local government controls, Trolli has also
made the effort to transfer German food safety principles to its
China operations. In 2007, the Guangzhou factory was successfully
certified by the German TÜV technical inspection association
according to the International Featured Standard Food (IFS),
pioneering this certification in China. The standard was introduced
in 2003 by the German Association of Retailers and its counterpart,
the French Retailers & Wholesalers Association. Based on the quality
EWM焊接技术扎根中国
以德国最先进的技术服务于中国和亚洲
EWM WELDING TECHNOLOGY MADE IN CHINA
GERMAN STATE-OF-THE-ART TECHNOLOGY FOR CHINA AND ASIA
手弧焊
MMA welding
钨极氩弧焊
TIG welding
伊达高科焊接 (昆山)有限公司
EWM Kunshan, China
熔化极气体保护焊
MIG/MAG welding
等离子焊
PLASMA welding
伊达高科焊接德国总部
EWM Mündersbach, Germany
EWM HIGHTEC WELDING (Kunshan) Ltd.
10 Yuanshan Road,
Kunshan New & High-Tech Industry Development Zone,
Kunshan, Jiangsu, 215300 P.R.China
伊达高科焊接(昆山)有限公司
江苏省昆山市昆山高新技术产业开发区圆山路10号
邮编: 215300
Phone: +86(0) 512 57867188
Fax: +86(0)512 57867182
www.ewm.cn · info@ewm.cn
27
BUSINESS FOCUS
COVER STORY
a crucial role in product innovation. Due to the relatively low cost
of labour in China, the factory is able to produce very innovative
gummy candy in relatively low quantities at a competitive price.
However, this labour intensive and manual production process
poses further challenges to the adherence of food safety standards.
Safety and hygiene are considerably dependent on the education,
training, discipline and awareness of the workforce. Food safety can
only be achieved if everyone involved in every step of the process
knows about the risks. According to Mr. Inninger, food scandals are
the most powerful means of increasing public awareness. As China’s
economy continues to develop, Chinese consumers are more and
more taking into account the quality of the food they eat.
An underestimated challenge: producing traditional German bread in China
management norm ISO 9001:2000, it also includes the principles of
HACCP (Hazards-Analysis Critical Control Point) as defined by the
World Health Organization. The aim of this concept is to minimise
food-related illnesses – such as food poisoning – and thus make food
safer.
The Chinese government understands the importance of food
safety for the health of the country’s population as well as for its
trade economy. Passing new bills and improving existing ones is
the first step to ensuring safe food. It will not be an easy task to
coordinate responsibilities among the many relevant authorities
across the country, but increasing funds will help. As more and more
international companies set up shop in China, they will not only
bring with them new food processing methods but also better food
safety standards. Some of those standards, such as the IFS certificate,
might inspire China in its quest to guarantee safe food. HB/CSS
In order to achieve this level of compliance, critical points within
the food production chain are precisely monitored and documented,
while the producer must ensure traceability and regular training in
conjunction with self-inspection. A 16 person quality management
team with its own lab handles all the related testing of samples
directly at Trolli China. To ensure objectivity, Trolli sends 25 samples
per month to a third-party lab run by the Global Business Academy
in Berlin and frequently works with international testing centres and
providers like TÜV and SGS.
In addition to testing, the company must ensure proper
documentation and traceability. Trolli produces 8t of gummy candy
per eight-hour shift with production running 24/7. Within the next
six months capacity will even double to over 16t. Every sample
of every batch of "mini burger” or “sour gummy worms” has to
be archived for up to 15 months depending on the shelf life of the
product. The bigger the product portfolio the more complicated the
documentation process becomes.
The quality of ingredients can usually only be guaranteed if they
are imported or if they are sourced from international, certified food
producers based in China. The Backstube in Shenzhen imports all of
its flour from Germany. Trolli Guangzhou uses the same suppliers
for ingredients and flavours as its German business. All suppliers
have to withstand a thorough annual audit. Furthermore, the
main equipment and production machinery is also imported from
Germany. The German bakery in Shenzhen has a proofer in place
that features a cooling function as well. This is very uncommon
for Chinese proofers but comes in handy in South China, where
temperatures often range above 30°C – the optimum condition under
which germs spread.
Another critical element in promoting food safety and the adherence
to obligatory or voluntary standards is education. Trolli’s factory in
Guangzhou might not be the biggest plant in the group but it plays
28
The essentials of gummy candy: mixing flavours at Trolli Guangzhou
www.china.ahk.de
Watch What
You Eat:
The Growing Importance
of Food Safety in China
Over the past five years, food product sales in China have recorded
double-digit growth. This reflects the growing spending power of
Chinese consumers, who are earning more and have access to a
wider range of foodstuffs than ever before. At the same time, public
awareness of food safety is rising sharply, as is the demand for better
food safety practices. Today, when consumers dine at a restaurant,
they do not only consider price, taste and dining environment, but they
also evaluate the quality of the ingredients in the food on their plate.
产品追溯码 Traceability Code:
09022410001001001
Processing Plant
Code: 1 bit
Tent No.: 2 bit
In response to these changing market conditions, the Chinese
government has made food safety a top priority. The Food Safety Law,
which came into force on 1st June 2010, sets out specific food safety
standards and requirements for the production and sale of food.
The theme of the 2010 Shanghai World Expo, “Better City,
Better Life”, has drawn the world’s attention to ensuring a liveable
and sustainable future. To apply this theme to the food industry,
enterprises engaged in the production of food should establish
collaborative efforts along the entire food supply chain to create safe
and sustainable solutions.
Farm Base Code: 3 bit
Product Code: 2 bit
LAC ID: 3 bit
Date: 6 bit
At the Duesseldorf Pavilion in the Urban Best Practices Area at the
Expo, the German wholesale giant METRO Cash & Carry has
translated the Expo theme into “Better Food, Better Life” with its
traceability restaurant Good Food Bistro. The bistro provides local
German dishes with ingredients coming from traceable products
grown locally in China. Through information terminals inside the
pavilion, Expo visitors can track the journey of onions, potatoes, sword
beans, pork, beef and other food materials “From Farm to Fork”.
A Star Farm product with traceability code
29
BUSINESS FOCUS
COVER STORY
Understanding the Food Story
According to Mr. Tino Zeiske, President
of METRO Cash & Carry China, it is
“prerequisite for best food safety practices
to know the story behind the food.”
METRO sets an example with its traceability
restaurant, the only one in the world.
Furthermore, it encourages China’s food
industry to make product information
transparent to their customers.
To be sure, not every supplier can meet these
requirements. Leading food production
and supply enterprises often have unique
business models and promote innovative
initiatives. This allows them to develop the
best practises in China’s food industry.
all about sweeping the floor, isn’t it? Why
should I bother to systemise it?” In reality,
factory sanitation requires much more. One
of the most advanced factory management
techniques is the 5S management mode,
according to which the manufacturing
environment is systematically arranged into
5 areas: sort, set order, sanitise, standardise
and sustain. Take “set order” for example:
the factory is required to put all of its tools in
set places so that it is easy to find them when
they are needed and avoid possible mistakes
from arising if they are stored together.
Meanwhile, all the tools must be categorised
by frequency of use, with different storage
areas distinguished from each other by
different colours. Only in this way can the
factory not only ensure its
sanitary standards
From Farm to Fork
but also enhance
One way of ensuring
production
I am an apple, a unique apple,
food safety is to
e f f i c i e n c y. O f
in that I have an “ID” card of my
establish local
course, factory
own. Through the traceability system,
p ro j e c t s i n
sanitation is
this 17-digit “ID” card enables you to
China based on
just a tiny
immediately check out my life experience.
I was born on a 220-acre farm in Laiyang,
international
part of quality
Shandong Province. After tests for diseases,
standards such as
control, and
insects and pesticide residues, I was sent
GAP, IFS and ISO
more systematic
by a third-party logistics company with
22000. Star Farm,
work has to be
professional certification to the METRO
which METRO
finished so as to
store on 20th June 2010. I hope this
has established in
guarantee product
information will ensure your trust
2 0 0 7 , p ro v i d e s l o c a l
quality. Ignoring
in food safety.
farmers and agricultural
these details can affect
enterprises in China with
a producer’s sales.
training and consultation on
production, processing, packaging and
Cold Chain Management
logistics. A team of trainers visits sites across
China, inspecting farm base management Growing demand for seafood, meat and
m e t h o d s a n d d e s i g n i n g c u s t o m i s e d other cold foods is forcing suppliers to come
improvement plans for each manufacturer.
up with better ways of moving goods from
farms to factories and into retail stores. This is
The traceability system, invented by METRO especially necessary in a developing country
China, record every detail in the process of
packaging, storage and transportation, and
deliver all the information to customers
through a unique traceability barcode on the
product package.
such as China, which lacks an adequate
transport infrastructure, particularly in its
central and western regions.
Leading suppliers are developing advanced
cold chain management systems for
sustained safe food supply. Cold chain
management is more than just the transport
route; it includes processing, storage,
transport, distribution and sales. The best
companies working in this field cover the
entire supply chain with a temperature
monitored environment, which safeguards
the freshness and safety of frozen and chilled
food products.
An automatic temperature logger is used
during the distribution of frozen and
chilled foods, ensuring that the temperature
complies with regulations. In order to strictly
monitor the third-party service provider,
suppliers require that each cool truck has
to submit electronic temperature control
records as soon as it arrives at the designated
receiving site. This allows quality control
staff to trace the changes in temperature that
occurred on the road.
In addition, the loading platforms at
distribution centres are pre-cooled when
sending and receiving products. Meat and
aquatic products are strictly measured
to ensure both the interior and exterior
temperatures meet the required standards.
Big companies sell thousands of types of
food every day, each requiring different
temperature control. The best storage
temperature for salmon and fresh pork is
0 - 4℃, 0 - 10℃ for fruit and vegetables and
-18℃ for frozen food. To this end, suppliers
install multi-temperature controls in their
distribution vehicles to effectively maintain
the freshness of all products.
This code, whether on a box of apples or
a bag of chicken wings, allows customers
to clearly trace all the production
information (farm location, processing
details, distribution, etc.) of the food on the
terminals provided at a supplier’s stores or
related websites.
While adopting innovative systems might
seem like a logical thing to do, many Chinese
food production companies are still coming
to terms with the changes in the industry.
One such example is Mr. Xu, the Director of
a local food processing plant in Hefei, who
was once indifferent to the need to systemise
his factory’s sanitation procedures said, “It’s
30
One of the farm bases that has accepted Star Farm training and guidance
www.china.ahk.de
At each METRO
store for example,
meat, fish, fruit
and vegetables
a re m a r k e d w i t h
different colours;
corresponding
operating tables,
tools and staff
uniforms share
the same colour
to minimise the
possibility of cross
contamination. All
the semi-finished
and bare products
Good Food Bistro: the only traceability restaurant in the world
are put into logistic
boxes and loaded
onto pallets that are kept away from floors
and walls. Pork halves, upon their arrival at
HACCP - A Hazard-Proof Gate
a store, are suspended from special slide rail
The Hazard Analysis & Critical Control devices.
P o i n t ( H A C C P ) s y s t e m e n s u re s t h a t
various hazards in the process of receiving, It is not only Chinese consumers and
processing, storing and selling of goods private enterprises that are becoming more
can be identified and controlled. It has, concerned about food safety; government
according to the World Health Organization, and public departments are also taking
become the universally recognised and extra measures. The Chengdu Jinjiang
accepted method for food safety assurance. District Government wanted to take steps to
With such a scientific system in place, food guarantee sanitary standards at its affiliated
safety or quality problems can be prevented. canteen, but workers there were operating
under outdated sanitation concepts. In
addition, there was no systematic plan for
related measures.
To address this issue, workers at the canteen
were enrolled on a training programme and
educated on best practices based on HACCP
ideas and approaches. The canteen director
was very interested in HACCP colour
management. In the past, kitchen tools such
as knives, towels, chopping boards and
mops were not separated, jeopardising food
safety. Soon after the programme ended,
employees were trained to strictly separate
different tools and began using HACCP
colour-coded knives.
By improving food safety along the entire
supply chain - and not just focusing on selling
end-products - food suppliers can improve
their business operations and establish a
strong reputation in the Chinese market.
Ms. Katrin Sulzmann is the Head of
Corporate Communications, External Affairs
& CSR, METRO Cash & Carry China.
For further information please contact her at:
* katrin.sulzmann@metro.com.cn
31
BUSINESS FOCUS
COVER STORY
The Journey of the Cod
How the full Supply Chain is managed
Seafood is a popular type of food the world over,
especially fish, which is regarded as a good source of
natural high-quality protein. The fresher the better, most
consumers would agree, but that is not always the most
convenient option. Over the years, frozen fish products,
such as fish filets, have proliferated, and can now be
found in grocery stores almost anywhere.
© Shutterstock
Like almost all other goods, seafood is now a part
of the global trade network, but unlike many other
products, it is much harder to move around. Over the
years, refrigerated transport has become an essential
link in the supply chain for cold food, ensuring that the
customer is supplied with safe and high-quality food.
There are three basic types of transport
available: sea, which includes conventional
ships and container ships, land, primarily
road and rail as well as air. The seafood
supply chain often combines more than one
of these methods of transport; this combination
is known as an intermodal transport system.
Catching the Cod
China’s Role in the Supply Chain
The North Atlantic is one of the world’s most valuable fishing
grounds. For countries such as Norway and Iceland, the seafood
industry is the driving force of their economies - Iceland alone
catches nearly 2.7mn tons of fish per year, including over 200 species.
Qingdao, commonly known for its production of the beer with the
same name, is also the hub of the nation’s seafood reprocessing
industry. In 2009, China exported over 6mn tons of seafood products
and imported nearly 4mn tons. The export value reached USD 16bn,
while the import value topped USD 5.3bn in the same year.
Historically, the most valuable fish is cod, a popular white fish that
today remains highly sought after by most fishermen. The northeast Atlantic harbours the world’s largest population of cod, and
is primarily fished by European Union member states. The largest
consumer market for this species is Europe.
The fish caught in the North Atlantic undertake a long journey to
your local grocery store. After being unloaded, the cod are moved
to a cold storage facility, where they are frozen for transportation.
Frozen goods are transported at a temperature of -18℃ or lower,
while chilled cargo is shipped at a temperature above its freezing
point.
32
The cod are transported to a main shipping port in the
EU, where the container is prepared for export to China now the world leader in seafood processing.
Once the shipment arrives in China, the frozen fish are put into cold
storage or sold directly to local processing plants. They are thawed
so that factory workers can fillet the cod by hand. This makes use of
the cheap local labour force and reduces the cost for both consumers
and food companies.
Processing plants in China have been handling this business for
more than ten years. As a result, they are very aware of the demands
of the European market, and are internationally focused in their
business operations.
For the return trip, the cod are refrozen and then shipped to the EU
or to other markets such as the United States or Australia. Careful
www.china.ahk.de
quality control inspections are carried out in cold storage facilities
in the receiving countries. After the stock passes inspection, it is
trucked to a distributor where it is stored, re-packed and branded for
retail markets.
ships and intermodal container transport units with monitoring
systems. Rail and road vehicles have less strict specifications
which are acceptable for shorter journeys, while comparatively lax
temperature control is acceptable for rapid air transport.
Customers are then able to find their choice of filleted cod in
local grocery stores all over the world, completely unaware of the
extensive journey the fish has taken. In total, this process takes
roughly 80 days.
Getting Ahead in the Business
It is essential to the supply chain that the cod remains cold, but there
are still only a few transport companies that offer full supply chain
support. The refrigerated food market is a growing industry with
many new opportunities and offers a significant rate of return.
Keeping the Food Cool
For the whole supply chain, specialised refrigerated equipment is
required to monitor and control the cargo’s temperature. Besides
their role in transporting cold food, refrigeration systems can be
used to both cool down and heat up goods. This is useful if an order
has specific or changing temperature requirements, and is also
an important property for chilled goods transportation,
especially when the outdoor temperature changes (e.g.
in cold climates).
Depending on the requirements of the commodity
in question, refrigerated systems are used to
maintain a specified temperature at all times.
Therefore, the food should already be precooled to the required temperature before it is
loaded.
Success in this trade is built on know-how and connections in the
food industry. A winning business in this field must be able to offer
cutting edge insight. The key priority for a logistics company is the
establishment of a fully integrated service and the ability to supply
the customer with safe and wholesome goods. Compliance with
strict rules governing hygiene is also essential.
More recently, environmental issues have come to play an important
role in the industry. The development of refrigerated transport
systems with high energy-efficiency is a new requirement designed
to cut both costs and energy use. As the next step, end-user
awareness should be raised regarding the long-term environmental
and economic benefits of such energy-efficient equipment.
Mr. Bjoern Traemann is the Ocean Freight Product Manager,
Northern China, at DB Schenker Beijing. Over the past five years,
he has worked in various locations in Northern China. For further
information, please feel free to contact him:
' 010-8042-0426
* bjoern.traemann@dbschenker.com
The technical requirements for refrigerated
transport units are more stringent than for
most other applications of refrigeration.
Amongst other things, the equipment in a
refrigerated transport unit has to operate in a
wide range of ambient temperatures and under
extremely variable weather conditions – especially
when it is transported by ship. It has to be able to carry
an array of cargo with different, yet specific, temperature
requirements. Finally, it must be durable and reliable in the
often harsh transport environment.
A low temperature is needed for frozen goods, but in general a
specific temperature range is not a critical requirement. For example,
a cargo with a requested temperature of -18℃ usually has a generous
tolerance level and will not suffer if it cools even further. A reliable
on/off control switch system is used, which begins cooling the cargo
whenever the temperature rises to a set point.
On long journeys however, frozen food shouldn’t be exposed to
big changes in temperature. This can potentially cause moisture
migration and result in a loss in quality. Some chilled goods also
require close temperature control, especially where two given limits
are asserted. Too low a temperature will damage them, while too
high a temperature will reduce their shelf life.
Close temperature control systems for chilled goods require
continuous, modulated refrigeration combined with high rates of
air circulation. This inherently requires a greater deal of power and
energy for frozen foods with an on/off control system. The control
of these systems, particularly for long journeys, needs to be rigorous.
The best way of managing temperature conditions is to equip the
33
BUSINESS FOCUS
CSR in China
CSR (Corporate Social Responsibility) is concerned with open and responsible practices by businesses in relation to
the environment, communities, consumers, employees and other important business stakeholders. Until recently CSR
was a relatively unknown concept amongst the majority of Chinese companies, often viewed in the very narrow sense
of corporate philanthropy and addressed as a thinly disguised marketing initiative. In the last five years however,
understanding and practice of CSR in China has transformed.
Amongst Chinese companies and the public CSR awareness has grown significantly. After the first major National
CSR Summit took place in the Great Hall of the People in February 2006, there have been a host of conferences and
seminars on the topic. CSR reporting from Chinese companies has become increasingly commonplace. The number
of CSR reports issued by Chinese companies was just 64 in 2007. Now that figure has grown to over 600 (Goldenbee
China CSR Board). Beyond the pace of change, China’s CSR awakening is unique to the extent that it has been
determined by the country’s interaction with the outside world and the determined top-down efforts by the Chinese
government. This sits in stark contrast to the grassroots activism that propelled CSR’s emergence in Europe and the
United States.
Internationally-driven CSR
China’s accession to the WTO in 2001 and rising level of exports has brought about growing demand for CSR from overseas business
customers. Business customers have been a
key factor in diffusing CSR practices in China,
through the spread of responsible supply chain
management procedures, responsible sourcing
and procurement policies, as well as promoting global quality and management standards
(such as SA8000, ISO9001, ISO14000) to Chinese manufacturers. The role model of MNCs
operating in China has also been a significant
contributor to CSR development. Leading
MNCs are increasingly expected to bear responsibility for their business partners and
suppliers overseas, and as a result, are actively
engaging Chinese companies on CSR.
Government-driven CSR
The desire to improve competitiveness and
boost the ‘China brand’ internationally has
prompted several government-led CSR standards at the local and provincial level. In 2005,
34
China Textile and Apparel Council created
CSC9000T, a management system for social
compliance focused on protecting worker’s
rights and promoting CSR in the textile industry. CSC9000T was one of several initiatives
which have served to highlight the growing
confidence of the Chinese government in setting the domestic agenda on CSR. The Shanghai Municipal CSR Standard, developed by
the Shanghai Bureau of Quality and Technical
Supervision, is another example of an original
government-led CSR initiative. The voluntary
standard, currently covering over 300 companies in the Shanghai Pudong area, gives incentives to companies to improve their social commitment, environmental friendliness, product
safety, and so on. Participating companies are
rewarded with preferential policies in securing
government procurement contracts and corporate tax.
In the last two years the central government
has stepped up as the major force behind CSR
development, mandating CSR legislation at
the national level, such as the Ministry of Commerce draft guidelines on CSR Compliance for
Foreign Invested Enterprises (2008) and CSR
Guidelines for Financial Institutions (2009).
The Chinese government clearly attaches great
importance to CSR, part of its effort to build an
all-round affluent and harmonious society, and
the departure from a growth-centric development model to one which balances economic
development against pressing social and environmental challenges. In this sense, CSR is being mobilized as a policy instrument by which
the state can share some of its heavy burden
for addressing tough issues like environmental
protection, social inequality, and food safety, by
rallying the expertise, resources and creativity
of the private sector.
Another motivation in the government’s push
for CSR is enhancing the competitiveness of
domestic companies. Arguably the most influential recent CSR legislation, was the CSR
Guidelines for State-owned Enterprises (SOEs),
enacted by the State-owned Assets Supervision
and Administration Commission (SASAC) on
4th January 2008. In addition to the strong focus
on conventional CSR issues (energy efficiency,
labor standards, product safety, environmen-
www.china.ahk.de
tal protection and philanthropy), there is also
stong emphasis on leveraging CSR to improve
operational efficiency, promote innovation and
advance overall competitiveness and profitability. This is increasingly relevant as SOEs
expand their horizons to overseas markets. Following the guidelines, there has been a surge
of first time CSR reporting by SOEs (SOEs accounted for 70% of all reports issued in 2009).
CSR and Food Safety
Ensuring an effective food safety regime is
closely linked with the development of CSR
in China. Like CSR, the government is the
dominant agent of change. Due to the size and
complexity of China’s food production system
(covering 450,000 food production and processing enterprises) and weak state inspection and
enforcement capacity, self-regulation and business ethics in the industry are of great importance. The basic ‘Food Safety Law’, implemented in June of 2009, combined a raft of targeted
measures aimed at rationalizing the food management and inspection system. With it, the
new law also assigned greater responsibility to
individual companies for implementing food
safety management, control and inspection
systems, and introducing new procedures for
product recall. All these measures are backed
up by tougher penalties for violations.
China’s increasing connectedness with the
world is also a factor in driving improvement
in food safety. China is the world’s largest
food exporter and faces strong pressure from
importers and consumers overseas to ensure
the quality and safety of its products. Food
importers demand that the products they
import are safe, and that the production facilities from which they were produced comply
with food safety and management standards,
such as HACCP and ISO22000. On a domestic
level, the spread of international food industry
standards is important as it allows even greater
oversight and control over each link in the
food production and delivery chain, from the
farm all the way to the consumer dinner tables.
Through their CSR efforts, multinational companies have also led to positive spillovers in
China’s food industry.
Rising Consumer Activism
The weakness of civil society and media scrutiny has been a long-standing obstacle for the
development of CSR in China, creating a large
disconnect between companies and the general
public. For the food industry, the lack of consumer watchdog groups, combined with local
government protectionism of food companies
has led to many serious food safety scandals,
and has reduced incentives for the industry to
act in an open and responsible manner. As a
result serious food safety scandals that occur
often get repeated, and important lessons for
the industry go unlearned. Recent incidents
such as the reemergence of melamine contaminated milk powder in Qinghai province
(affecting 76t of dairy products), and the growing nationwide alarm over the use of recycled
waste cooking oil, serve to highlight the scale
task law-makers face.
But today, Chinese consumers are demanding
higher quality and safe products for themselves and their families. The State Food and
Drug Administration of China published a survey in 2007 showing 65% of respondents were
concerned about food safety. With the rampant
rise of blogging and social networking among
Chinese, a strong public demand for CSR is
growing, to which many companies seem to be
responding. One example in the food industry
is Beijing Sanyuan Group, a large state-owned
food producer and processor, which displays
its strong commitment to ‘win-win development for customers, employees and shareholders’ and promoting ‘harmony between business
and society’ as a centerpiece of its corporate
website. In fact, across the board, Chinese
companies are waking up to the lofty public
expectation on their shoulders, as evidenced by
the great corporate outpouring in the aftermath
of the Sichuan earthquake. Looking ahead, the
growing activism and CSR consciousness of
Chinese consumers will provide an important
boost for CSR development.
Conclusion
In summary, it seems likely that the current
momentum in Chinese CSR practice will
continue. China's growing visibility on the
world stage post-Olympics, and during the
current World Expo in Shanghai, is further
pushing the CSR agenda, as the Chinese
government is keen to establish itself as
a conscientious global player, responsive
to widespread concerns from diverse
stakeholders. In 2009, China became the
worlds’ largest exporter. As such it seems likely
that pressure from overseas business customers
and MNCs will continue to push demand
for CSR. However, it seems likely that the
contribution of Chinese companies to domestic
CSR development will be more influential
in the future, especially as many seek to
improve their competitiveness and reputation
internationally. In 2008, China Mobile became
the first Chinese company to be included in the
prestigious Dow Jones Sustainability Index,
which tracks the financial performance of the
world’s most sustainable companies.
The rising activism of the Chinese consumer
perhaps represents the last link in the chain.
Combined with the top-down initiatives from
government, pressure from Chinese consumers will give added impetus for companies to
raise their CSR game. As already evidenced by
the growth of CSR reporting and the spread
standards on CSR, companies in China are already becoming more open and responsible in
the way they act and communicate with their
stakeholders.
Sam Lee is CEO and co-founder of InnoCSR
strategic consultancy based in Shanghai,
and works in the areas of sustainability and
CSR. To know more contact Sam at:
* sam-lee@innocsr.com
35
BUSINESS FOCUS
Fire Safety
Particularly in fire safety, German and Chinese systems diverge significantly. While, for instance, the standards for structural fire prevention are gradually being adjusted, China still suffers from a noticeable
lack of organisational fire safety. Preventative measures such as routine employee safety training, fire prevention inspections and regular
evacuation drills remain a rare exception, and when they are ordered
by a company, they happen on voluntary terms.
The fatal factor is that it is organisational fire safety that provides the
most crucial contribution to minimising physical damage in the case of
a fire emergency, as well as saving lives. Specifically when it comes to
sensitive objects, it is not enough to direct and control fire safety in China
from a distance through the responsible department in Germany. This
can hardly ensure the necessary transparency or effective and sustainable integration of organisational measures. More promising is what you
can do long-term and on site, from the deployment and training of longterm employees to the local commissioning of an external fire prevention
officer. Both options offer powerful protection for your company in conjunction with clear and predictable financial and time frames.
The selection criteria for a suitable employee or service provider
should be based on professional qualifications, a pronounced ethic of
foresight and responsibility and a respectable chunk of persistency to
guarantee that the required measures really are implemented.
A Safe Bet
Emergency and Crisis
Management
Setting up a comprehensive and
dependable emergency and crisis
management system that will not
let you down when worse comes
to worst is a challenging mission
for a company in China. It is a job
that should only be entrusted to
a trained specialist. What already
aggravates any planning in this
field back in Germany complicates matters even more in China,
where there are numerous additional elements of uncertainty that need
to be taken into account. Experience shows that any efforts put into an
emergency plan by far outweigh the degree of the material and immaterial damage one may regularly find oneself faced with even in comparison to any damage deemed inevitable by a diligent plan. Another
point that has repeatedly proven valid in practice is what an immense
difference it makes for a company whether in the event of personal
damage it can in retrospect certify a proper emergency plan that was
optimally executed. If it can’t then it may subsequently have to justify
an absent or inadequate emergency plan and the resulting operational
errors to family members or even the press.
Strategies and Solutions
for a secure China Engagement
Do you know how safe your China activities really are?
Entrepreneurs and executives seriously looking into this subject
often come to mixed conclusions. On the one hand, CCTV cameras,
fire extinguishers and other security systems are installed in highly
visible spots, meaning that plant security has a significantly stronger
presence here than in Germany, and so-called emergency response
plans also exist in one form or another.
On the other hand, getting to the more critical and detailed bottom
of the simple question “what if?” can quickly expose quite alarming
prospects. Delegating responsibility for the safety and security for
example of a production facility to one individual or a department
on location in the shape of an additional duty assignment seems like
the easy way out. At the end of the day however, once an incident
occurs - especially when it includes casualties - liability very swiftly
returns to the delegating company or the executive management. In
anticipation of the at times unpleasant consequences of a security
incident, a proactive, strategic approach to safety and security in
your company is most certainly worth it.
36
A striking number of large international companies with a presence
in China still address the issue of emergency and crisis management
with a rather step-motherly treatment. Unsuitable or inexperienced
employees are assigned to devise the plans stipulated by the German
insurance company and then integrate them into the respective company divisions. That these plans are consequentially designed according to the popular “copy and paste” method and can’t be effectively
applied shouldn’t be a great surprise. For example, incorrect information or unsuitable partial information that was already passed on to the
media can not be easily revised or even retracted. The planning and integration of an emergency and crisis management system should always
www.china.ahk.de
be preceded by an analysis of the existing situation as well as an evaluation of the individual risks. Here, a comparison with corresponding reference values from companies in a similar situation can be of great help –
along with access to a sufficient level of experience and a well developed
professional network. An evaluation of the analysis results maps out
which possible cases and scenarios need to be addressed with an emergency plan, and to what extent. In the drafting of emergency plans it
is vital that the single process steps are thoroughly examined and the
overall process chain is designed to be as simple and straightforward
as possible. A routine inspection of existing emergency plans still too
frequently highlights the incorrect entry of basic information such as
emergency call numbers. Such a seemingly small but grave flaw in the
emergency plan can interrupt and disable the entire sequence chain.
An easy-to-follow, straightforward structure to your company’s
emergency processes is fundamental. In a crisis situation and under
circumstances that cause extreme stress or distress, people may feel
overwhelmed and helpless with the simplest, most plausible instructions. Instructions that are too complexly or extensively formulated
can cause mistakes in their execution, or, in the worst case scenario,
lead to non-performance. To ensure a smooth course of action under
the severe conditions of an emergency or crisis situation, all parties
should be walked through the various scenarios and processes in exercises and drills at regular intervals.
Corporate Security
The significance and relevance of an internal security department
depends greatly on which company values are to be protected from
which events. While the values to be secured are relatively easy to assess – material assets and employees as well as company continuity,
development and reputation – potential threats and dangers are an en-
tirely different ball game. Events such as theft, sabotage, fraud, labour
disputes or espionage are widely disregarded.
Of prime importance to corporate security is a company’s management. With the backing of the management team and in close cooperation with the executive levels, an experienced security specialist
who comes with the requisite soft skills and intercultural competence
can integrate the necessary security structure into the company’s operational processes and refine or enhance them accordingly. Quality
service of course has its price: this also includes a qualified security
manager. Nevertheless, transferring the additional function of “security management” to the already busy HR department for instance
does the company a huge disservice. Unrelated departments will most
certainly not be able to conjure up neither the time nor the interest to
meet the company requirements in this field.
Another common practice – simply filling the position with a former
local police or military officer – is not recommended. Although an
expansive government authority network is essential to the position,
the right qualifications, experience in private security and last but not
least compliance competencies are more imperative. Foreign companies are still only catching up with corporate safety and security in
China, but it’s better to address this topic today rather than tomorrow.
Mr. Armin Liebler is a certified Industrial Master of Protection and
Security and General Manager of the first German security and fire
consulting company in China, GST Security Technique Consulting,
Ltd. Beijing. Mr. Liebler can be contacted under:
' 010-647-1-7120
* armin.liebler@gst-security.com
37
BUSINESS FOCUS
The Hamburg Summit –
Where China meets Europe
Deputy Prime Minister Zhang Dejiang and Former Deputy
Chancellor Frank-Walter Steinmeier in a talk with President Horch
Economic relations between China and Europe are among the most important in the
world. Europe is by far the most important
trading partner for China and China’s growing importance for the developed regions is
getting more obvious by the hour. In today’s
world nothing can be done without the Chinese. Vice versa China cannot establish itself
among the world’s great powers without
cooperation with the West. Surprisingly the
opportunities for open and fair dialogue between representatives of East and West are
few. The “Hamburg Summit: China meets
Europe” has set out to achieve just that: For
leaders from both regions the “Hamburg
Summit” will serve as a forum for networking and the exchange of ideas. An open, fair
and trusting communication can lead to new
ideas how to face common challenges.
Since its inception in 2004 the “Hamburg
Summit” has grown into one of the most
important Sino-European conferences on
economic issues. Already with its second
edition in 2006 the “Hamburg Summit”
established itself as a top-level event and
was honored by the presence of Mr. Wen
Jiabao, Prime Minister of the PR China.
Mr. Wen stressed the importance of the
conference in maintaining and strengthening
the ties between China and Europe.
The third edition of the “Hamburg Summit”
again saw top-level attendance as shown
by the presence of Deputy Prime Minister
of the PR China, Mr. Zhang Dejiang and
then-Minister of Foreign Affairs and Deputy
Chancellor of Germany, Mr. Frank-Walter
38
Former Deputy Chancellor Frank-Walter Steinmeier und Deputy Prime Minister Zhang Dejiang sign
the Golden Book of the Hamburg Chamber of Commerce
Steinmeier. As former German Chancellor
Helmut Schmidt remarked in his speech,
the third edition “marked the beginning of a
tradition” which will continue this year with
the fourth event.
The Hamburg Chamber of Commerce is
initiator and organizer of the conference and
will also host the fourth “Hamburg Summit” from November 24 th – 26 th, 2010. As
before, political and economic keynotes on
current economic topics will be held by outstanding personalities and numerous expert
panels will discuss diverse fields of the SinoEuropean relations. For this purpose high
ranking international economic, political and
academic leaders will meet for three days at
the Hamburg Chamber of Commerce.
Two of the most important discussion panels
of this year’s “Hamburg Summit: China meets
Europe” will focus on issues of the crisis
aftermath and the all important global trade.
On the panel „Shaping the post-crisis world:
China and the EU in Search for sustainable
Growth” questions will be asked about what
both regions can do to recover in a more
balanced way. When is the right moment to
put an end to governmental financed support
for industries and consumers? How can new
asset bubbles and inflation be avoided? What
are the results of the stimulus packages, the
different exit strategies of China and the EU
countries and the lessons learned from the
crisis? Additionally, the panel will discuss
whether and if so to what extent the crisis has
contributed to an economic power shift from
Western countries to China.
Another panel is titled “China and the EU in the
Global Trading System: Trends and Strategies”.
The global financial crisis demonstrated that
outward oriented economies like China or
Germany are not able to decouple from the
economic performance of other large countries.
The strong dependence on foreign trade led
to a vulnerability to external shocks. Given
the fragility of world trade, the development
of sustainable growth depends on a healthy
global trading system with strong enforcement
of existing governance mechanisms. Certain
issues of trade policy such as protectionism,
non-tariff barriers, enforcement of intellectual
property rights, and even the choice of
currency exchange rate regimes need to be
addressed on a global level. Given the fact
that Europe is China’s biggest trading partner
this topic is particularly important for bilateral
Sino-European relations.
Economic leverage is shifting towards Asia,
especially in times of crisis the importance
of partnership and open dialogue can
therefore not be overestimated. As our world
gets smaller, the need for exchange and
cooperation grows. The “Hamburg Summit”
will again be an indisputable source of
information and inspiration, thus acting as
an important contributor in improving and
fostering Sino-European relations.
Mr. Jonathan Vogelsang, Hamburg Chamber
of Commerce, International Department
* Jonathan.Vogelsang@hk24.de
www.china.ahk.de
39
BUSINESS FOCUS
EAST CHINA
Beautiful Scenery –
Growing Economy
Hangzhou in brief
Along China’s south-eastern coast lies yet
another city that is becoming more important
for the country’s growth. Hangzhou encompasses roughly 16,000km2 of land that lies
192km south of Shanghai. As the northerly
capital of Zhejiang Province with about 8mn
inhabitants, the city is the centre of politics,
economics and culture.
It is no wonder that 65 of the world’s top
500 enterprises had invested in 107 projects
in Hangzhou by 2008, considering it was labelled the No. 1 City in China for business by
Forbes magazine for three consecutive years.
Hangzhou also has the eighth highest per
capita GDP in China and a higher average
sales value for industrial economy than the
entire rest of the province – and revenues are
not going any direction but up.
To facilitate such an economically booming
city, 86km2 was set aside to construct Hangzhou’s High and New Technology Industry
Development Zone (Hi-tech Zone). This colossal district aims to sustain business development in the high-tech, software, IC, telecom
equipment and ecommerce industries. The
zone is divided into functional sectors including the Binjiang District, Zhejiang Sci-Tech Industrial Park, Xiasha Sci-Tech Industrial Park,
Qianjiang Economic Development Zone, Hitech Pioneering Service Centre, Pioneering
Park for Returned Overseas Intellectuals,
University Science Park and Headquarters
Industrial Park.
Manufacturing
Hangzhou has recently expanded in other industries such as cotton textiles, iron and steel
products, motor vehicles, pharmaceuticals,
cement, rubber, paper and bamboo products,
chemicals, machine tools, electronic equipment, and processed tea. The city has also
reserved bragging rights as the only overseas
host of a Toshiba production plant for laptop
computers.
Furthermore, as one of China’s most important manufacturing bases, Hangzhou sustains
a bulk of China’s light industrial business
and is considered an important logistical hub.
As a corporate destination, it contains the
headquarters of Wahaha, the nation’s largest
beverage company.
40
Culture
Home to the eminent 3.7ha China National
Tea Museum, Hangzhou’s economy and
society is engulfed by a deeply situated tea
culture. The museum is a modern facility for
cultural shows, popular science promotion,
talent training, research, academic exchange,
tea drinking, catering, conferences, recreation and other services.
Leifang Pagoda, West Lake, Hangzhou
Hangzhou is also known for its artistic creations, such as umbrellas, Chinese hand-held
folding fans and silk. Nicknamed the ‘Silk
Town’ with the biggest flax textile factory
in China, the city’s silk industry has a long
history and tradition with its internationally
renowned quality production process ranking top in the nation.
Tourism
Hangzhou is also an attractive tourist destination. The city is famous for its natural
beauty and historic relics. The main attraction is the infamous West Lake, which is
considered the most beautiful lake in the
country. Over the years it grew from being
an ordinary bay off the Qiangtang River into
a 600ha paradise, surrounded by temples,
pagodas, pavilions and parks.
Infrastructure
Equipped with a complete system of land,
water and air transportation, Hangzhou
handles river traffic through its port on
the Fuchun River at the head of Hangzhou
Bay. Soaring across the bay, is the longest
trans-oceanic bridge in the world, which
extends its six two-directional lanes across a
35,673km stretch.
The Hangzhou Xiaoshan International
Airport connects the city nationally and
internationally. The Maglev transrapid train
that transports Shanghai travellers to and
from its Pudong International Airport is
now undergoing an extension to Hangzhou.
This multibillion dollar railway project
expected to be completed by 2014, boasts a
new travelling time between the two cities
at a brisk 27 minutes while the train reaches
speeds of up to 450km/h.
Silk Market in Hangzhou © Imagine China
The construction of a subway system has long
been planned for the city, and only recently
received approval from the central government. The completion of the first two lines
was expected to be this year, but the target
has now been pushed back to China National
Day on 1st October 2012.
Opportunity
Although the revenue by commodity trading
in Hangzhou shrank 12% in 2009 in comparison to the year before, the service-outsourcing
sector jumped by an astounding 350% in the
same period. In fact, from January to April
this year, Hangzhou’s executed outsourcing
contracts reached almost US 400mn, of which
off-shore contracts amounted to US 319mn.
This is a 153% expansion from last year.
In interest of German professionals, Hangzhou became the sole Asian twin city of Dresden in 2009 and as such is recently stepping
up the active exchange of information regarding city planning and construction, environmental protection, cultural affairs and education. This agreement provides a platform for
open communication between Hangzhou and
German companies, opening the door to a
land of unlimited opportunity. ATD
WEST CHINA
www.china.ahk.de
Chongqing’s
Liangjiang
New Area
Adding Attraction to West China
The time to reconsider their strategies for
market entry and expansion in China has
come for foreign investors. As coastal areas
of South and East China are becoming
increasingly expensive and labour costs
are rising while the pool of available
migrant workers is shrinking a relocation
of businesses might be the right move.
One of the places that so far have been
ignored as a potential investment hub due
to its geographical location is Chongqing.
Therefore the question arises if its Liangjiang
New Area, a newly created state-level
industry zone that is going to attract foreign
investors. With a size as big as Austria, the
city of Chongqing is home to 30mn citizens.
Some therefore regard it to be the biggest city
of the world. Its rapid progress owes much to
China’s strategy of d e v e l o p i n g western
regions. Ten years ago the government set its
target to achieve a balanced economic growth
between Western and Eastern China. During
the past decade, China has therefore invested
USD 100bn in 23 major infrastructure projects
in the western region which has resulted in an
annual economic growth of 11.9%. Regarding
the city’s own development agenda, it plans
to quadruple its industrial output to RMB
4trl within the next ten years, driven by pillar
industries like IT, automobile, equipment and
machinery manufacturing.
There are more than
40 industry zones
in Chongqing,
around 20 of
them being
l o c a t e d
within the
boundaries of
the city area.
All of them
offer decent
infrastructure
i n t e r m s
of roads and
buildings. For foreign
investors the creation of
Liangjiang New Area - Chongqing’s newest
“achievement” – will add some attraction to
this West China city.
After Shanghai Pudong New Area and Tianjin
Binhai New Area, the Central Government
announced Liangjiang to be the third
municipal-level new area in China. With an
impressive area of 1.200km² (550km² are usable
land), it combines six industry zones into one
big industrial area. Regarding logistics it is
conveniently located just north of Chongqing’s
city centre. At the same time this means
heavy industry is not welcome. The industrial
development mode of Liangjiang New Area
will focus on five strategic industries, e.g.
railway transportation, power equipment, new
energy cars, national defense and electronic
information. Several companies have already
started operations in the region, including
some multinationals.
Liangjing New Area will profit of the same
benefits which also apply for the Shanghai
Pudong New Area and the Tianjin Binhai
New Area. What makes Liangjing New
Area so attractive for investors, however,
is that additionally it benefits from the
policies that apply to Chongqing and the
western region. These include the priority
in experimenting with pilot policies on
land, finance, taxation, investment
a s w e l l a s f o re i g n t r a d e .
Furthermore the region
receives support in testing
certain unprecedented
major reform measures.
Additionally, this area
features China’s first
inland river port plus
airport bonded zone.
But what’s in for foreign
companies? Why choosing
Chongqing’s Liangjiang
New Area over well
established investment locations
in Southern or Eastern China?
One big advantage is surely the preferential
tax and policy treatments for companies
investing in Western China which are
applicable until 2020. For Chongqing these
include a 15% corporate tax (10% for hightech ventures) instead of the usual 25% as
well as preferential policies on loans and
registered capital for foreign investors.
Companies starting business operations
in 2010 can also benefit of the preferential
rental for leasing periods over two years at
the Chongqing Free Trade Port. The second
advantage is the labour costs in Chongqing
which are more competitive compared to
those of the coastal areas. The minimum
wage is at around 70% of the one paid in
Shenzhen (RMB 680 versus ca. RMB 1,100 as
of July 2010). But looking into the numbers
more thoroughly shows that the average
blue collar workers’ salaries amount to
RMB 1,200 per month. Companies are not
depended on migrant labour since workforce
can be supplied locally for the vast suburbs
of the city.
Last but not least the transportation to logistic
hubs in South and East China or abroad
will become faster and more cost efficient.
The biggest change regarding logistics
will be introduced by the “Three Gorges
Project” – 300km upstream of the Yangtze
River. The extensively discussed project is
surely controversial, yet brings along many
advantages such as a rise of the water level
thanks to the hydro electric dam. Consequently,
large cargo ships weighing up to 5,000t to
8,000t will soon be able to sail to Chongqing's
harbours throughout the year. As for air
transportation, the city’s major airport, Jiangbei
International Airport, is currently serving
approximately 70 domestic and international
air routes. Taking all these developments
and advantages into account, Chongqing is
definitely about to become a true Metropolis.
For companies considering Western China as
a sales market, Liangjiang New Area might be
the place to be. JH
41

Part 1 - AHK Greater China

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