EuroBizDec2010

OUTBOUND INVESTMENT • PHILANTHROPY • WUXI’S NEW ENERGY

Journey of a decadeThe European Chamber celebrates a milestone anniversary

December 2010www.europeanchamber.com.cn

4 December 2010 | EuroBiz

contentsDecember 2010

26

10 President's Foreword

In ChIna

12 Macro

14 Business

15 EU-China

ChaMBEr UPdatEs

16 Chamber news

• "China 2020: The Road Ahead" business

conference

• 10th anniversary Beijing gala ball

• Tianjin 5th annual Food and Beverage

Celebration

• 10th anniversary celebration in Shanghai

• How to protect trade secrets in China

• New members list

IntErvIEws

22 Global benchmarks

Richard Shentu, managing director of SGS-CSTC

Technical Standards Services, on rising standards

and sustainability

24 all in the design

Fabian Furrer, international department

president of Dongdao, on designing the European

Chamber's new logo

16

12



31

34

COLUMns

26 Growth spurt

Chen Aihua and Laure Deron of Gide Loyrette

Nouel on how China's outbound investment is

both rising and maturing

28 Fraud detection

John Sedgwick of Red Flag Screening on how

businesses in China must be vigilant about fake

employee credentials

FEatUrEs

30 Cover story History in the making

Looking back on the European Chamber's 10

years in China

36 regions Wuxi

Wuxi looks to balance technology and tradition

32



LIFE

38 Information to give

China's philanthropic leaders are aiming to add

transparency to charities

40 Chamber Board

42 advisory Council

44 China dining

46 Business toolkit

48 Company Index

50 Eye on the west

New trade bloc in Central Asia demands attention

from China

36

50

38

EuroBiz | December 2010 9

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European Union Chamber of Commerce in ChinaBeijing Office: Lufthansa Centre, Office C412, 50 Liangmaqiao Lu Chaoyang District, Beijing 100016Tel: (010) 6462 2066 Fax: (010) 6462 2067 E-mail: [email protected] Office: Unit 2204, Shui On Plaza, 333 Huai Hai Zhong Lu, Shanghai, 200021Tel: (021) 6385 2023, 6385 2133 Fax: (021) 6385 2381 E-mail: [email protected] Office: Unit 3005, 30/F, Tower A, China Shine Plaza, No.9 Linhe Xi Lu,Tianhe District, Guangzhou 510613 Tel: (20) 3801 0467 Fax: (20) 3801 0275 Email: [email protected] Office:Rm. 308, 3/F Chinese Overseas Scholars Venture Building, South District,Shenzhen Hi-Tech Industry Park, Shenzhen 518057Tel: (0755) 8635 0920 Fax: (0755) 8632 9785, E-mail: [email protected] Nanjing Office: E1, 30/F Zhujiang Unit 1, 1 Zhujiang Lu, Nanjing, Jiangsu 210009Tel: (025) 8362 7330 Fax: (025) 8362 7331 E-mail: [email protected] Office: B2-1-19-9, Sun Dynasty International, 27 South Renmin Lu Sec. 4, Chengdu 610041Tel: (028) 8529 3477 Fax: (028) 8529 3477 E-mail: [email protected] Office:Room 2-1105, Office Tower 1, City Plaza, Shenyang 110001Tel: (024) 8681 1888 Fax: (024) 8107 7521 E-mail: [email protected] Office:Room 15A17, Suite 17, Magnetic Plaza, Binshui Xi Lu, Tianjin 300381Tel: (22) 2374 1122 Fax: (22) 2741 8822 E-mail: [email protected]: www.europeanchamber.com.cn

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EuroBizEuroBiz magazine is the journal of the European Union Chamber

of Commerce in China, published monthly by SinoMedia Ltd.


a milestone year

PrEsiDEntial ForEworD

Jacques de BoissésonPresident

european Union chamber of commerce in china

Dear members and friends,

December is already upon us, marking the end of a momentous and transitional year for both China and the European Chamber.

For China, 2010 was a year of recovery from the fallout of the global economic crisis. It appears that Chinese policymak-ers' aim for a post-stimulus "soft-land-ing" has been achieved, with sustained and strong growth – despite how lending volumes have been winding down since 2009. However, the remarkable success of transitioning from recovery to growth in 2010 has limited long-term impact, compared to embarking on a more sus-tainable growth model. Chinese leaders have discussed this repeatedly in 2010. Such a transition will take years, and the necessary foundation for these changes are currently being laid out as the 12th Five-Year Plan is being drafted. The Eu-ropean Chamber is willing to help China meet its goals and looks forward to sub-stantial discussion with policymakers on this important set of documents.

For the European Chamber, 2010 had several highlights. In April, my prede-cessor Joerg Wuttke, myself and several other European business leaders had the honour of a productive and positive meeting with Premier Wen Jiabao.

In June, the European Chamber launched its 7th Business Confidence Survey. Based on more than 500 mem-ber company responses, the survey is now the most comprehensive and repre-sentative document regarding the busi-ness environment in China.

The European Chamber launched its 10th Position Paper in September. The contents of the paper were expanded, and its voice was strengthened with clearer examples as requested by Chi-nese policymakers, a call for unity to European leaders and the heightened contributions of our local chapters. Fur-thermore, the Position Paper was pre-sented in Europe in an unprecedented five capitals: Brussels, Berlin, Madrid,

Paris and Rome.Finally, the European Chamber cele-

brated its 10th anniversary in November across all of its China chapters. While marking a decade of success in servicing its member companies, the festivities also included the launch of a new logo. The change of our organisation's logo embodies the situation and direction of the European Chamber today: looking to the future while respecting our past.

A 10th anniversary is something ex-ceptional. In our organisation's case, this milestone is even more special as we reflect on the progress we have made in membership and chapter growth, as well as quality of service. For the first time ever, the European Chamber has exceed-ed 1,500 member companies. Thanks to this, and through effective management by Secretary-General Dirk Moens, the European Chamber ends 2010 on firm fi-nancial footing. Our strengthened stabil-ity will be put to work for members, as service quality, visibility and the impact of our organisation continues to grow.

I am both humbled and proud to be able to contribute to this success and to take the European Chamber into its sec-ond decade of existence.

As the cold approaches and people start planning their winter holidays, I take this opportunity to wish all readers a very merry Christmas.

Jacques de Boisséson President

a milestone year


sion to inject €444.7 billion into the economy may destabilise the global financial system. "The major reserve currency economies should adopt responsible policies, thus easing and gradually removing the fundamental problems behind foreign exchange liquidity," President Hu Jintao said.

Extra measures mulled to stem rising food pricesThe Ministry of Commerce (MOF-COM) may introduce new measures and work in unison with other government agencies to stem growing inflation. "We would enhance the connection between vegetable produc-tion and sales to stabilise supply and prices in the winter and next spring," said Yao Jian, a ministry spokesper-son. October's consumer price index rose 4.4 percent, the fastest rate in 25 months, leaving the government's full-year inflation target of 3 percent under threat. Food prices have been one of the principal drivers of infla-tion growth. According to MOFCOM,

MaCrO

vice Premier Li calls for faster restructuringVice Premier Li Keqiang said greater efforts must be made to accelerate China's economic restructuring in order to achieve sustainable develop-ment amid global uncertainties. Li, who is tipped to succeed Wen Jiabao as premier, called for a "deep under-standing" of the proposals for national development over the 2011-2015 period. He said the world economy is growing slowly and the "structure of global demand is changing, which puts new pressure on China in its efforts to stabilise and expand exports and maintain stable and relatively rapid economic growth." Li's remarks were said to reflect a shift in the gov-ernment's economic planning.

world Bank raises China 2010 GdP growth forecastThe World Bank upgraded its 2010 growth forecast for China by half a percentage point to 10 percent, but said that Beijing should increase inter-est rates further to contain inflation-ary pressure. In its quarterly report, the bank noted China's trade surplus has rebounded sharply and would likely continue to grow. It predicts a surplus of €183 billion in 2010, €202 billion in 2011 and €233 billion in 2012. Earlier this year, China said the drop in its trade surplus indicated the economy was already rebalancing and that substantial exchange rate reform was unnecessary. However, the World Bank observed that China has made only "limited progress" in rebalanc-ing its economy towards domestic consumption.

China fends off Us currency claims at G20Investors are trimming bets on ren-minbi gains following the G20 sum-mit in Seoul where China rebuffed US criticism of its currency regime. Beijing responded to US calls for faster renminbi appreciation by claim-ing that the US Federal Reserve's deci-

SD

in china

China launches national censusChina began its census in November, a 10-day process that saw six million census takers go door-to-door to document the country's demographic changes. The massive head count takes place once every 10 years, and the 2000 tally put China's official population at 1.295 billion people. Over the decade there has been an extensive shift in the popula-

tion base, with millions of migrant workers moving to urban areas from the countryside. Although this is the country's sixth national census, it will be the first in which people are counted by where they live as opposed to where their residence cer-tificate, or hukou, is legally registered. This should make it easier to calcu-late the true size of China's cities.

in the first 10 days of November average wholesale prices for 18 types of vegetables in 36 cities rose 62.4 percent year-on-year. China to establish carbon trading market by 2013China may have a carbon trading system in place as early as 2013, according to Richard Sandor, who helped found the London-based Climate Exchange. "Irony of ironies, there's a better understanding of cap and trade in Beijing than in Washington," Sandor told a climate change forum in Hong Kong last month. Under a cap-and-trade system, companies whose carbon emissions cross a certain threshold can offset these excess emissions by purchasing credits from companies that reduce carbon by more than a set amount. A Chinese official has said that the coun-try is discussing rules to implement a domestic carbon-trading market.

China to account for 20% of global energy demandChina will account for more than 20 percent of global energy demand by 2035, according to a new report released by the International Energy Agency (IEA). The IEA's annual World Energy Outlook forecasts that China's energy demand will increase by 75 percent between 2008 and 2035 as global demand reaches 16.74 bil-lion tonnes of oil equivalent by that year. Most of the increase in Chinese demand will come from the transpor-

BIG COUNT: China's last census was in 2000

HIGH COST: Food prices must stabilise


costs for slowing sales at the trade show. In addition, a new rule exclud-ing participation by service providers also caused some manufacturers to sit out of the event.

death toll from shanghai blaze at 58At least 58 people died after a fire ripped through a 28-storey apartment block in downtown Shanghai. The blaze reportedly broke out at 2:15 p.m. on November 15 and it took 25 fire brigades until 6:30 p.m. to extinguish the flames. The residential block, which was undergoing external repairs, is located at the junction of Yuyao and Jiaozhou roads. The State Administration of Work Safety has blamed the tragedy on unlicensed welders, illegal sub-contracting and poor management. Shanghai police have detained 12 people in connec-tion with the fire.

wen pays tribute as shanghai world Expo closesThe Shanghai World Expo concluded on October 31 with Premier Wen Jiabao paying tribute to the event, saying that it "truly brought together people around the globe." The closing ceremony featured a series of parades and performances involving staff from each pavilion, local volunteers and celebrities, including Hong Kong action film star Jackie Chan. Earlier in the day, UN Secretary General Ban Ki-moon joined Wen at an Expo forum on urban innovation and sustainable development. Ban said Shanghai had "secured its reputation as one of the world's most cosmopolitan

tation sector. The IEA said oil supply would reach a peak by 2035, pushing up oil prices to US$113 a barrel in 2009 dollars, or US$204 a barrel in nominal terms.

PBoC raises reserve require-ment for big 5 banksThe People's Bank of China (PBoC) raised reserve requirements for China's five largest banks by half a percentage point starting in Novem-ber, reflecting policymakers' growing concerns about inflation and excess liquidity. The reserve requirement ratio for Industrial and Commer-cial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank and Bank of Com-munications rose to 18.5 percent, a record high. The PBoC announced the move shortly after China posted a €20.1 billion trade surplus in October, its second largest this year.

stronger renminbi hurts Canton trade fairA stronger renminbi and high raw material prices discouraged buyers from attending Guangzhou's China Import and Export Fair (or Canton Fair) in November. According to Canton Fair spokesman Liu Jianjun, the event registered 199,266 attend-ees, down 2.3 percent from its spring session in April. The show is a key indicator of the mainland's export economy; Liu blamed the increasing relative value of the renminbi, in-flated raw material prices and labour

SD

BIG COUNT: China's last census was in 2000

TRAGEDY: A Shanghai fire causes 58 deaths

➤➤


of China and would help prepare the bank for further potential mon-etary tightening. Beijing announced stricter reserve requirements on banks as lenders issued €65.5 bil-lion in new loans in October, above market expectations.

starbucks to open Yunnan coffee farmStarbucks will set up a coffee farm in southwest China's Yunnan province after signing an agreement with the local government. This will be the coffee chain giant's first self-operated plantation. The plantation will be based in Yunnan's Pu'er area but the locally-grown coffee beans will be roasted in the US. No finan-cial details were released but the Yunnan government says it plans to increase annual coffee bean volumes from the current 35,000 tonnes to 181,000 tonnes by 2020. Nestle and Kraft also source coffee beans from Yunnan province.

Gap opens flagship shang-hai storeGap, the US clothing retailer, opened its first of four planned stores in mainland China in Shanghai in November. The 1,140 square-metre flagship, located next to a newly-opened Apple store on Huaihai Road, is part of the retail-er's push to expand sales online and outside of the US, where consumer spending remains tepid. Gap will open another Shanghai store before the end of the year, while additional

cities." The Expo attracted a record-breaking 73 million visitors, handling an average of 370,000 visi-tors daily.

Beijing-shanghai high-speed rail track connectedThe final portion of tracks was laid on the Beijing-Shanghai high-speed railway on November 15, meaning the project is now in its last stage. At 1,318 kilometres in length, it will be the world's longest high-speed railway. Work on the €24.7 billion rail link began in April 2008 and it is due to open in 2012. Travel time between the two cities will be reduced to approximately four hours from the current 10. Several other high-speed rail links have since been opened including lines between Wuhan and Guangzhou, Zhengzhou and Xi'an, Shanghai and Nanjing, Shanghai and Hangzhou. In total, China's high-speed rail network covers 7,431 kilometres of track.

BUsInEss

state banks deny halting developer loansState-run newspaper China Real Estate Business reported that Indus-trial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China had not made any loans to develop-ers since October. It added that no fresh financing would be issued to the sector for the rest of the year. The banks' press offices released state-ments to the contrary. During the first

10 months of 2010, investment in property development reached €421 billion, 36.5 percent higher than the same period last year.

disney, shanghai sign de-tailed agreementWalt Disney said it has signed a detailed agreement with local authorities in Shanghai on the joint operation of a Shanghai Disneyland. The deal – the initial phase of which is expected to cost €2.6 billion – still requires Ministry of Com-merce approval, but a broader plan was approved by the State Council in November last year. The plan includes a 4-square-kilometre theme park, hotels and shopping facilities. Shanghai's government has already begun relocating residents in the area where the park is planned. The park would constitute one of the largest-ever single foreign invest-ments in China.

sina, Microsoft announce Messenger-weibo allianceMicrosoft and Sina have announced a partnership under which Micro-soft's instant-messaging service will be linked with Sina's microblogging platform. No details were provided about when the integration would begin, but users will be able to link Windows Live Messenger accounts with Sina Weibo accounts, allowing them to post across both platforms. Microsoft's Windows Live Spaces blogging service will also be gradu-ally migrated to Sina's blogging service as the US software giant gradually leaves the blogging busi-ness. The companies say the partner-ship could eventually be extended to include mobile internet service collaboration.

ICBC plans €5b rights issueIndustrial and Commercial Bank of China plans to raise up to €5 billion in a new rights issue in Shanghai and Hong Kong. The rights issue comes on the heels of stricter capital requirements by the People's Bank

➤➤

in china

ON TRACK: Beijing-Shanghai rail links laid

FRESH: Starbucks to set up Yunnan farm


stores opened in Beijing last month. In an attempt to reach customers outside of Beijing and Shanghai, the retailer also introduced an online store, www.gap.cn.

EU-ChIna

UK, China sign agreements, aircraft engine dealThe UK and China signed agree-ments on cooperation in education and finance, and announced a €1.2 billion order for Rolls-Royce aircraft engines from China Eastern Airlines. The agreements were made when British Prime Minister David Cam-eron met with Premier Wen Jiabao in Beijing last month. The UK and China agreed to deepen ties between British and Chinese educational institutions and to study the cross-listing of exchange-traded funds in each other's markets. Under the aircraft engine deal, China Eastern will order Rolls-Royce's Trent 700 engines for 16 Airbus A330 aircraft. Cameron's discussion with Wen included human rights, although the prime minister didn't directly raise the issue of jailed Nobel Peace Price winner Liu Xiaobo.

airbus lands 100-plane order from ChinaAirbus secured a Chinese order for 102 aircraft worth more than €10.2 billion. The deal, which was announced during President Hu Jintao's visit to France, is the largest since the €12.5 billion, 160-jet order placed in 2007. Airbus has launched an assembly line in China – its first outside Europe – as part of efforts to win market share from Boeing. The €444 million, Tianjin-based facil-ity assembles single-aisle A320 and A319 models for the local market only. A total of 32 planes have been delivered to customers since June 2009. Airbus is predicted to control 45 percent of the Chinese jet market by the end of 2010.

volvo to hire Chinese design-

ers for new vehiclesVolvo plans to hire a team of Chinese designers, in an effort to ensure its next vehicle meets local tastes. At a research centre that is currently being set up in Shanghai's Jiading district, the designers will contribute ideas for a premium compact model – to rival Audi's A3 and BMW's 1-Series – scheduled for release in 2012. Volvo was bought earlier this year by Zhejiang Geely Holding Group, parent company of Geely Automobile, China's largest independent carmaker. The Swedish company wants to double its sales in China to 800,000 units in a decade. Volvo may also build as many as three manufacturing plants in China.

Metro to open 100 Media Markt stores in ChinaMetro will open 10 consumer electronics stores in Shanghai by the end of 2012 and add a further 100 outlets nationwide by 2015. The German company, which is the world's third-largest retailer, debuted with its first Media Markt store in Shanghai on November 17. At 13,500 square-metres it is the second largest of the 602 Media Markt outlets worldwide. Metro hopes to benefit from ris-ing demand for TVs and laptop computers in China as domestic purchasing power rises. It estimates that consumer electronics sales in the country are growing about 8 percent annually and will reach €188 billion a year by 2020. ■

ON THE GO: Volvo hiring local design team


chamBEr nEws

Looking into the futureEuropean chamber hosts 10th anniversary business conference

The European Chamber proud-ly held its 10th anniversary business conference, "China

2020: The Road Ahead", in Beijing on November 5. The conference offered a high-level platform for prominent policy makers and business leaders to share their insights on China's economic future with more than 340 participants.

It featured keynote speakers includ-ing Peter Mandelson, the UK's former business secretary and former Europe-an Commissioner for Trade, Director General of the Investment Promotion Agency for China's Ministry of Com-merce Liu Zuozhang, Ambassador and Head of the European Commission Delegation to China Serge Abou, and Ardo Hansson, the World Bank's chief economist for China.

A panel discussion among eminent business leaders and academics fol-lowed the keynote speeches. Moder-ated by Duncan Innes-Ker, senior edi-tor and economist for the Economist Intelligence Unit, the panel included Schneider Electric's Executive Vice-President of power and Asia-Pacific business Eric Rondolat, Chief Econo-mist of Deutsche Bank Group Thomas

Mayer, Director General of the State Council's Development Research Cen-ter Long Guoqiang, Philips' Greater China Chairman Patrick S. Kung, as well as Horst Loechel, adjunct profes-sor of economics at the China Europe International Business School.

During the conference, speak-ers called for mutual understanding and close collaboration between the EU and China to achieve sustainable growth. They highlighted the efforts that China has taken to improve its business environment for foreign businesses, such as setting up a legal framework, increasing transparency, and simplifying administrative pro-cesses. These policies have helped at-tract foreign direct investment. Fur-thermore, speakers discussed how China's opening-up policy has been central to the country's economic de-velopment, and will continue to have an impact in the next five-year plan.

Speakers also shared their opin-ions on how China is an important market, and plays a key role in fu-ture global growth as an emerging economy. While the country allows for a unique business environment – a large market, with comparatively

low production and service costs – participants argued that these factors should not make businesses in China become complacent.

For the Chinese economy to shift to a more balanced growth model, while still contributing to global prosperity, many challenges must be overcome. For example, financial reforms should be implemented to support economic development. This would allow for greater flexibility in China's exchange rate mechanism, as well as more open-ness in the financial services market.

European business leaders also dis-cussed key trends in the Chinese mar-ket, including the country's growing middle class, an ageing population, the development of China's central and western areas, and competition from local businesses.

The conference closed with a panel of past and present European Chamber presidents. Past presidents Peter Batey, Ernst Behrens, Serge Janssens de Va-rebeke and Joerg Wuttke joined cur-rent president Jacques de Boisséson to reflect on their respective experiences with the organisation. The event ended on a festive note with a sumptuously-catered networking event. ■


a star-filled nightthe European chamber's gala ball in Beijing celebrates 10th anniversary

Celebrating its 10th anniver-sary, the European Chamber held a gala ball in Beijing on

November 6. The event, titled "Sea of Stars", was an evening of fun and elegance.

More than 400 distinguished guests from EU member state embassies, European Chamber member compa-nies, and other close partner organi-sations joined the European Cham-ber for the special occasion.

During the exquisite dinner, guests were taken on an underwa-ter "journey" of exotic fish, sharks and whales, with the help of a sur-rounding 80 metre-long seamless screen. This massive screen was also the perfect way to officially launch the new European Chamber logo.

After the five-star meal, guests took to the floor and danced along to music performed by LAN Club's

10th Anniversary Diamond Sponsors:

10th Anniversary Platinum Sponsors:

10th Anniversary Golden Sponsors: Beverage Sponsors:

Jackson Twinz band, who are widely considered to be Beijing's premium live act. With more than 180 lucky draw prizes for the event, almost half

of the event's guests went home as winners.

Generous support from the ball's sponsors made the event possible. ■


chamBEr nEws

tianjin treatstianjin's 5th annual Food and Beverage event celebrates European chamber anniversary

The European Chamber's Tianjin chapter hosted its 5th Food and Beverage Cel-

ebration on October 15. The annual event is by far the Eu-

ropean Chamber's most anticipated celebration in Tianjin. With more than 320 guests in attendance this year, business leaders from Ipsen, Airbus, Siemens, Alcan and Goglio – who are also board members of the European Chamber Tianjin chapter – dined alongside guests from lead-ing European companies in Tianjin and nearby areas.

The upscale Raffles Hotel in downtown Tianjin hosted the

event in its Grand Ballroom. The ambience was relaxed and elegant, while traditional food from France, Italy, Germany and other European countries was served with Torres wine from Spain and fresh German beer. An oversized cake, presented to the tune of Beethoven's "Ode to Joy", helped celebrate the European Chamber's 10th anniversary.

The festivities also included a best dressed competition and lucky draw, with prizes including a TUI Yangtze River cruise, Dikara Spa treatment, Westin fitness center membership and a variety of com-plimentary five-star hotel packages.

A special congratulations goes out to Morten Stenkilde, who won a one-night stay for two in the Radis-son Plaza Hotel's presidential suite and a seven-course breakfast with free-flow wine.

Guests danced the night away to live music performed by St. Lucia's Dee and her saxophonist Jab, as well as music mixed by DJ Moha. Many thanks to the event's corporate sponsors – including Airbus, Goglio, Ipsen, Jones Lang LaSalle, Siemens, Vestas, Business Tianjin, DK 1308 and the Raffles Hotel – and all of our special guests who made the night nothing short of magical. ■

DIGGING IN: The Tianjin board cuts cake to celebrate the European Chamber's 10th anniversary

GETTING FESTIVE: Gentlemen from Airbus' big family of staff

GORGEOUS GOWNS: Winners of the best dressed women competition from Airbus and Gurit


shanghai celebrationsmembers in shanghai celebrate 10 years of the European chamber

Vue Bar was packed to the hilt on the evening of November 4, with a merry gathering of

members and special guests celebrat-ing 10 years of the European Cham-ber in China.

Bringing together a diverse range of companies, entrepreneurs, Chi-nese government dignitaries and European consul generals, the event sought to unite everyone in celebra-tion of the European Chamber's growth and success since its found-ing in 2000.

Combining food and drinks with retro music, historic photos and a massive birthday cake – and not to mention the venue's breathtaking PARTY TIME: Guests enjoyed an entertaining night at the Hyatt on the Bund's Vue Bar

view of the city – the night was filled with entertainment.

A special thanks goes out to the event's sponsors, Mazars and New Concept Mandarin, who helped make the night even more memorable. ■


chamBEr nEws

Prevention and protectiona step-by-step guide on how to protect trade secrets in china

Nearly all businesses in all industries possess trade se-crets, which are a valuable

and highly useful form of intellectual property rights (IPR). Unlike intellec-tual property (IP) that is registered and has a finite term, trade secrets theoretically enjoy an infinite term of protection as long as the trade se-cret remains just that – a secret. How-ever, once the information becomes public, it no longer enjoys any legal protection.

Prevention is the golden rule when it comes to trade secrets. Con-sider the following steps to protect trade secrets in China.

step 1: Know your secretsA trade secret is any non-public in-formation with commercial value that is guarded by confidentiality measures.

Examples of trade secrets include business models, new online con-cepts, design techniques, formulas, work flow processes, customer lists, contract terms, marketing strategies, and any other information with po-tential commercial value. It is impor-tant to catalogue what trade secrets you may have, rank them and regu-larly update the list.

step 2: Keep it safeIt is important to remember that once trade secrets become publicly known, they can no longer be pro-tected. Keeping trade secrets safe therefore involves using a combina-tion of physical, technical and con-tractual barriers, and implementing a trade secrets protection policy. Any business can and should take simple, sensible precautions.

Simply mark documents as "Con-fidential" or lock files away after business hours (physical barriers). Use passwords and log-in features on documents (technical barriers). Final-ly, contractual barriers include non-disclosure or confidentiality agree-ments, which are considered one of

the best ways to protect trade secrets.

step 3: remind employeesA typical theft of trade secrets gener-ally involves a former employee leav-ing the company for a competitor and leaking secrets to the new employer. The best way to avoid such a situa-tion is to include a non-disclosure agreement in employment contracts. Consider holding exit interviews and require leaving employees to return documents and other potentially sen-sitive materials.

Trade secrets may also be inad-vertently disclosed by employees. In China in particular, employees may need a lesson to better understand IP rights. Periodically remind your em-

BeijingAellio Web AgencyBeijing Scandinavian Furniture Couleurs De VieNovartis Country OrganizationResources Global Professionals

ChengduMeineke Auto Center

Pearl River DeltaEPCOS (Zhuhai FTZ) Fazhilong Sports Production (Shen-zhen) Star Prototype Manufacturing TüV SüD ChinaZhongshan Winco Industries

ShanghaiAchats Service Global Procurement

SolutionsAsecorp (Shanghai) Business Con-sultingBerlitz International

TianjinChaoyang General Construction Engineering CompanyWellington College International Tianjin

new members

MARK IT: Prevention is the key to protecting trade secrets


ployees what kind of information is proprietary, how it should be kept confidential, and what your expecta-tions are.

step 4: third partiesAnother common way trade secrets are disclosed is during negotiations with business partners. Many for-eign companies in China find it dif-ficult to insist on a pre-negotiation non-disclosure agreement with Chi-nese parties, who often claim a hand-shake between two friends should be enough.

When confronted with this sce-nario, it is important to know when to walk away. The party that refuses a reasonable request for a mutual non-disclosure agreement is also the party that is most likely to misappro-priate trade secrets.

Even after an agreement is signed, make sure you continue to monitor your partners, suppliers or licensees

to ensure they are complying with your trade secrets protection policy.

step 5: the secret is outChina provides for administra-tive, civil and criminal protection for trade secrets, but by the time you have to consider legal action through any one of these channels, your trade secret and commercial advantage may already be lost.

Litigation is the primary chan-nel for pursuing a remedy for the misappropriation of trade secrets in China. If successful, the court can require the infringer to pay damages and stop using the trade secret. Un-like in many other countries, China provides an option of administrative enforcement for simple trade secret cases in addition to litigation. In se-rious cases where losses total more than RMB500,000, the infringer may be fined and/or imprisoned for up to three years.

Key to protectionPrevention is the key to protecting trade secrets. Establish an internal (employees) and external (third par-ties) management system of trade secrets using a combination of physi-cal, technical and contractual barri-ers. A few simple preventative steps can go a long way to avoid intention-al or unintentional trade secret leaks.

The China IPR SME Helpdesk is a European Commission funded proj-ect that provides free, practical, busi-ness advice relating to China IPR to European SMEs. To learn about any aspect of intellectual property rights in China, visit www.china-iprhelp-desk.eu. For free advice on China IPR for your business, e-mail [email protected]. Helpdesk ex-perts reply within seven working days. The China IPR SME Helpdesk is jointly implemented by DEVELOP-MENT Solutions and the European Chamber. ■


chamBEr intErViEw • richarD shEntU, sGs-cstc

Global benchmarksrichard shentu of sGs-cstc, an inspection and certification services provider, on rising standards and evaluating sustainability

Richard Shentu is the managing di-rector of SGS-CSTC, a global firm spe-cialising in inspection, verification, testing and certification services. He is also SGS Group's global manager of automotive testing and services. Since joining SGS-CSTC in 1990, Shentu has held a series of leadership positions, including branch manager, operations manager of the consumer product division, director of consumer testing and director of SGS China and Hong Kong's strategic business unit. Shentu earned a bachelor degree in knitting engineering at Tianjin Indus-trial University and an EMBA at the University of Texas. He spoke to Euro-Biz about changes in manufacturing standards among Chinese companies, and how inspection and certification services can help firms reach sustain-ability goals.

Q: In your 20 years' involvement in the testing and certification indus-try, what changes have you seen with China-made products?A: The first thing we've seen among big manufacturers in China is that their quality is improving. More products are being shipped over-seas, so obviously more companies must adapt to international stan-dards. We see ourselves as a bridge between Chinese manufacturers and international standards. Our job is to increase awareness about how in-ternational standards are changing – mainly through training, providing testing services, technical newsletters and offering consultation services.

Q: How can companies ensure that their products are up to interna-tional standards?A: Awareness is very important. You

have to keep a close eye on changing norms or regulations in overseas markets, especially ones that the company wants to ship to. Compa-nies can register themselves with relevant organisations to receive updates on international standards. SGS-CSTC also provides this kind of information, and since we have a big network with presence in many countries, it's easier for us to keep abreast of changes. Even before regulations are effective, we have technical staff who are compiling first-hand information regarding the changes and we communicate this information to our clients. Another issue is related to how companies deal with their suppliers. Some com-panies may have a good quality con-trol system, but they might not focus on supplier management. It's impor-tant to spend some effort on manag-ing suppliers, as it will certainly af-fect the quality of a manufacturer's product.

Q: What kind of challenges is SGS-CSTC facing in China?A: We were the first special testing company to enter the Chinese mar-ket. But in recent years there have been more newcomers in this sector, which has resulted in stiff competi-tion for finding talent. As such, our company is spending a lot of effort on training and establishing an ef-fective retention scheme. The other issue we've seen is that some small companies are issuing fake SGS-CSTC reports and certifications. To combat this, we have been working on enhancing our IT system and of-fering e-solutions, where customers can verify their test results on our website. Customers can take their hard copy report, input the report number, and see if it's fake or real.

Q: The global market is increasingly turning its attention to issues of en-vironmental protection and energy efficiency. Has SGS-CSTC seen a rise in companies seeking green solu-tions and consultancy services? A: Environmental protection has become a really hot topic in recent years, especially among overseas buy-ers and consumers, and SGS-CSTC has been increasing its services to help clients find sustainable solu-tions. For example, we have been working with one renowned Chinese seafood producer on developing car-bon footprint evaluations. Exporters have been making technical requests for this and manufacturers must be prepared, too. We have a lot of other projects for green solutions in the pipeline.

Q: How does SGS-CSTC conduct its carbon footprint evaluations?

Richard Shentu, managing director of SGS-CSTC in China


A: We send our engineering team to look through the whole production process and evaluate each stage – including the overall life cycle and supply chain of the product. They look at carbon emissions and pin-point certain stages where this can be reduced.

Q: How much do you think Chinese consumers consider product safety and green standards when making a purchase?A: For Chinese consumers, sustain-ability is not a big concern. However, there has been a growing concern about the quality and safety of con-sumer products, as the media has paid more attention to these issues. In particular, Chinese consumers are paying special attention to prod-uct safety, especially with food and toy products. This is increasing ev-ery day. In SGS-CSTC's commercial division, we normally only receive

business-to-business requests, where companies ask us to do testing for them. But in the last two years – es-pecially after the milk and melamine scandal – we've received a lot of in-quiries from consumers themselves regarding food products, and health and beauty products.

Q: How popular are auditing servic-es among Chinese companies versus multinationals in China? A: The largest proportion of audit re-quests we receive are still from over-seas customers. This is because, nor-mally, they are more concerned with environmental and ethical issues than domestic companies. That said, we also help Chinese brands with im-proving quality, and managing their suppliers better. These particular certification services are still usually driven by overseas buyers.

Q: To what extent is the use of

restricted substances an issue in China?A: I think it is a big issue. The most challenging part is related to a lack of control in the production and dis-tribution of hazardous chemicals. Based on our testing, we've found that from time to time, products have residue from harmful substances. Recently there was a major problem with heavy metal residue found in cigarettes. This is probably more of an issue related to regulation, rather than the manufacturer being at fault.

Q: How much regulatory work needs to be done in order for China to meet various international stan-dards?A: There's a lot of work to do and it's not only China's responsibility. Standards from various countries need to be harmonised to lift tech-nical barriers and facilitate interna-tional trading. ■


it didn't want a drastic change. It still had to reflect the previous logo and give it some recognition.

Q: How do you think the new logo represents the European Chamber?A: Unlike the old logo, which fea-tures the flags of China and the EU, the new version has stronger red and blue colours to represent the two sides, while also reflecting the seri-ousness of the European Chamber. We actually pinpointed the exact colours from the official flags. The colours are also shaded and overlap, which represents Europe and China's close cooperation in certain areas. On the other hand, the colours do not mix, clearly illustrating China and the EU's respective independence. The logo's circle of stars represents the unity of both China and the EU, while the single, enlarged star on the top right corner represents China. Implicitly, the stars also refer to the European Chamber as a platform of exchange between the China and the European countries, with many com-mon visions.

all in the design

CHAMBER INTERVIEW • DONGDAO

Fabian Furrer is president of the in-ternational department at Dongdao, a leading brand design and manage-ment agency in China. The Beijing-based firm was founded in 1997, and has developed brand identities for companies like Air China, Sina and various Chinese government minis-tries. Originally from Switzerland, Furrer previously helped develop the Chinese brand of Swiss-based Hol-cim, a Fortune 500 supplier of build-ing materials, and also served as ex-ecutive director of the Swiss Chinese Chamber of Commerce in Beijing. He spoke to EuroBiz about how Dongdao developed the European Chamber's new logo, and what the new image represents.

Q: Why was it necessary to change the European Chamber logo?A: I believe the previous logo served its purpose well – and did so for a de-cade. The initiative to update the logo came within the European Chamber itself. The organisation has evolved and increasingly become a major voice in China for European interests, and therefore rose in significance and importance. Companies and organi-sations change over time, and so does the necessity to adjust those changes in branding strategies.

Q: How did Dongdao come up with the European Chamber's new logo?A: Actually, the process began last year when the European Chamber approached Dongdao to design the logo. When I started my new role, I arranged a meeting between the two sides. This was very important be-cause we needed to understand the European Chamber's design require-ments and the ideas behind redoing the logo. One of the key issues the Eu-ropean Chamber identified was that

Fabian Furrer, international department president of Dongdao, on designing the European chamber's new logo

Q: How does designing a brand for a non-profit organisation compare to providing services for a corporation?A: The design process is the same. You still need to meet and gain an un-derstanding of what an organisation or a corporation wants, and pay the same kind of attention to both enti-ties. However, with many non-profit organisations you need to go to the next level and provide support on how to use the logo in various appli-cations. For example, it's a problem if you have nice logo, but all the differ-ent chapters are utilising it different-ly. Big companies, however, usually have sufficient funds to come up with their corporate identity, along with handbooks on how to manage them.

Q: Dongdao's slogan is "European fashion with direct Far East price." How are you able to balance these two features? A: Dongdao's chairman, Xie Jianjun, has stressed the importance of hav-ing an international mindset since he first founded the company. His phi-losophy mainly stems from the fact that he was in the first generation of graduating students at the China Cen-tral Academy of Fine Arts, where his art and design education in the 1990s had heavy Western influence. At the same time, compared to major for-eign players in the industry, I think it takes a Chinese player to understand the needs of the domestic market. ■

Fabian Furrer, international department president of Dongdao

CHAMBER INTERVIEW • DONGDAO


colUmn • oUtBoUnD inVEstmEnt

In the last two years, the development of Chinese outbound direct invest-ment (ODI) has stepped up signifi-

cantly. This is partly because policy-mak-ers swiftly adapted the legal framework, allowing the country's massive €1.8 tril-lion of foreign reserves to be utilised at a time when many economies are under a capital crunch.

China delegated the authority to ap-prove outbound investments to the Min-istry of Commerce's (MOFCOM) provin-cial agencies, and refined guidelines for administrative procedures in 2009. Reg-ulatory conditions were widened, allow-ing foreign currency to be released for overseas investment and financial tools – such as the credit-support mechanism, or the reimbursement of incurred fees in certain strategic industries – to be more readily available.

Although fewer regulations were im-posed in 2010, several government agen-cies reaffirmed their willingness to help Chinese companies invest abroad. The State Administration of Taxation, for example, announced some measures to adjust tax policies, standardise tax pro-cedures and strengthen tax treaties. In October 2010, the State Administration of Foreign Exchange also launched pilot policies in selected provinces that al-lowed export earnings to be deposited in overseas bank accounts, instead of being repatriated to China.

Making changesThe result of these changes have been impressive: MOFCOM figures show that China's ODI totalled €41.6 billion in 2009, while 12,000 Chinese enter-prises invested in 177 nations and re-gions worldwide. This is a substantial increase from the €19.5 billion of total

china's outbound investment is both rising and maturingBy Chen aihua and Laure deron

Chen aihua is an associate at Gide loyrette nouel in Beijing. her specialties include mergers and acquisitions, foreign direct investment and corporate law.

Growth spurt

ODI among 7,000 Chinese enterprises in 2007. As such, China is now the fifth-largest global investor, up from its 12th-place ranking two years ago.

Some of the ODI comes from private-owned enterprises which invest abroad with business-driven agendas – such as developing new markets or seeking lower production costs. Many expect, for example, that recent workers' demands will eventually lead to an increase in wages and production costs in China.

According to a Nottingham Universi-ty study, private firms that lack access to state-backed credit channels are invest-ing overseas to take advantage of funds in international capital markets. Green-field investments, with their ensuing de-velopment of sales channels abroad, are preferred methods of investment.

At the same time, Chinese companies are increasingly willing to embark on global mergers and acquisitions (M&A). This is a result of their growing experi-ence and a move away from some of the rigid management methods that led to high-profile failures. Chinese electron-ics manufacturer TCL, for example, lost €150 million as a result of its acquisition of Thomson Electronics.

Companies in China now pay great-er attention to post-deal management. There is greater emphasis on integrat-ing the target company by keeping the local team and using professional advi-sors throughout the process. As one CEO said to us before signing the agreements for an important acquisition: "We don't want a situation where we purchased a reputable restaurant but could not retain any of the good cooks."

The increase in M&A transactions is mostly a result of a massive flow of state-driven ODI. The above policies have par-

Laure deron is an associate at Gide loyrette nouel in Beijing. she is a member of the Paris Bar and her practice mainly focuses on foreign investment, international restructuring, and mergers and acquisitions.


ticularly benefited state-owned enter-prises, which form the vast majority of China-based multinationals and overseas investors. Their main moti-vation for going global is usually to acquire strategic assets like valuable technology, knowledge and access to natural resources.

target regionsAsian countries are the preferred des-tinations for ODI. However, accord-ing to a recent KPMG report, large companies with annual revenues of more than €110 million are also look-ing to Europe for future investments. In the EU, the China Council for the Promotion of International Trade found that Chinese investors mainly target Germany, France and the Unit-ed Kingdom. That said, they realise that more recent member states also provide opportunities by granting easier access to a unified market with a single currency and a highly-valued

reliable regulatory environment. The noticeable rise of China as

a key world investor has been met with mixed feelings. For example, some argue that the recent signing of a protocol to stimulate Chinese investments in Greece is an attempt by China to use its financial might to garner EU support for the country's global political ambitions.

At the same time, the tightening of export rules by the Chinese gov-

ernment on Rare Earth Elements (REE) initiated at the end of 2009 created fears that China will manage its strategic assets in an increasingly protectionist manner. The shortage in REE could further weaken produc-tion companies abroad, resulting in a greater number of available targets for Chinese ODI willing to trade a guaranteed source of supply for a Chinese stake.

China's business community, which prioritises economics and not politics, is aware of European concerns over the sudden increased inflow of Chi-nese capital. The country's outbound investors are therefore anxious to be seen as willing to learn from past mis-takes, demonstrated by management improvements and a willingness to adapt to local environments. Mean-while, China's business leaders aim for sustainable development – all the while hoping to alleviate worries about their global ambitions. ■


Column • HumAn RESouRCES

Anyone who has browsed the stalls of Beijing's Silk Market or Nanjing Road West in Shanghai

can see that China is synonymous with all kinds of knock-offs and fake goods. Businesses face the same problems in the country too. As such, the recruitment sector must be vigilant that it does not fall prey to a similar fate, where fake cre-dentials and falsified applications domi-nate the job market.

During the summer, in an incident that did much to damage the image of China's business elite, the former presi-dent of Microsoft China and current CEO of New Huadu Industrial Group, Tang Jun, came under fire over claims that he fabricated his PhD credentials.

His doctorate was obtained from the Pacific Western University, a private institution in Hawaii accused of being nothing more than a "diploma mill" that offers degrees for a fee. The school had not attained accreditation from a reliable authority to confirm the quality of post-secondary education.

Following the incident, suspicions about Pacific Western University led to some commentators calling into ques-tion the educational background of other Chinese public figures who also gradu-ated from the same or similar unaccred-ited overseas universities.

New forgery methodsFake institutions aren't just an overseas problem, though. Advertisements offer-ing diploma certificates and qualifica-tions for a fee – with anonymous email addresses and phone numbers – are ap-pearing at an alarming rate on buses and subway trains in China.

Meanwhile, forgers are becoming in-creasingly aware of companies' require-ments to screen their employees and cre-

Businesses in China must be vigilant about fake employee credentialsBy Richard Bensberg

Richard Bensberg is co-founder and managing director of Red Flag Screening, a firm that provides pre-employment and company background screening services throughout the Asia Pacific region. For more information please visit www.redflag-screening.com.

Fraud detection

ating new fraud methods. Though they are quickly shut down when discovered, the diploma mill business model is gain-ing traction in China. Certificates, for ex-ample, are being produced along with an online system that verifies the authentic-ity of the purchased "degree."

In India and the UK, there are compa-nies which do nothing else but provide fabricated employment information, or payslips as proof of employment for job applicants. Businesses in China should be prepared for the emergence of simi-lar trends and have processes in place to maintain a reputation of good business practices.

Proper pre-screeningFradulent credentials are increasing as demand for cross-border talent and la-bour migration throughout Asia rises. In addition, greater numbers of students are returning from abroad with a wider range of qualifications from different in-stitutions.

These developments mean that it is becoming much harder for all employ-ers, from large multinationals to small local businesses, to verify that a can-didate's qualifications and experience are genuine. In China's competitive job market, it is crucial that businesses have sufficient procedures to identify fake cre-dentials of untrustworthy, insufficiently skilled applicants and to ensure a good candidate is not overlooked.

Running an internet search for pre-vious employers, or checking the can-didate's profile on social media are not reliable as a sole basis for verification. Candidates can easily fabricate online in-formation prior to application. Further-more, reference letters, service letters and payslips provided by an applicant, and even official-looking company web-


Businesses in China must be vigilant about fake employee credentialsBy Richard Bensberg

Fraud detection sites, can be fabricated.However, there are some initial,

basic steps that managers or hu-man resource professionals can take. Be wary of companies you haven't heard of, and check with the AIC (Administration of Industry and Commerce) to verify whether the company does legally exist. Probing interview questions can also be used. For example, employers should ask applicants which office the candi-date worked in, the address, direc-tions, number of employees, and the name and phone number of their line manager.

But in reality, the above steps can only create or alleviate suspicions on the authenticity of the candidate's qual-ifications and experience. Carrying out thorough background screening is the only way to confirm suspicions.

While meticulous background screening can be a time-consuming burden for human resources profes-

sionals, difficulties also lie in keeping up with forgers' latest techniques. Completing criminal record, credit or civil litigation checks on a global scale requires specific knowledge and paid access to databases, as well as knowledge of the different data privacy and employment regulations in different countries. Time restric-tions, time zone or linguistic issues may also mean that effective back-ground screening processes are not completed or conducted at all – leav-ing potentially crucial negative infor-mation concealed.

Preventive measuresCompanies should take steps to en-sure that background checks are fair and independent of recruitment, in order to avoid issues of bias or conflict of interest. Professional pre-employment screening companies use experienced researchers who are trained to operate according to

standardised procedures. All reports undergo strict quality control pro-cesses, and are verified to avoid any potential legal issues that may arise if candidates claim not to have been judged equally during the recruit-ment process.

As the huge labour force in China gradually migrates in vast numbers towards more knowledge-based roles in the commercial sector, the compe-tition for jobs – and the risks associ-ated with them – will increase. ■

Running an internet search for previous employers, or checking the candidate's profile on social media are not reliable as a sole basis for verification


History in the makingLooking back on the European Chamber's 10 years in ChinaBy April Fong, Jessica Li and Zhe Quan

cover story • 10TH ANNIVERSARY SPECIAL


recalls borrowing staff from his own company to help with the publica-tion. "The final text was hammered out over a weekend at my flat, with the full team in attendance," he says. "At about 60 pages, the position pa-per was a small fish compared to the comprehensive volume that is pub-lished annually now."

Still, it was just what the organi-sation needed to build its public pro-file. The position paper was launched at a press conference attended by the EU Ambassador to China, and subsequently presented at the vice-ministerial level to China's Ministry of Commerce, the State Planning Commission (now the National De-velopment and Reform Com-mission), the State Economic

Since its inception in 2000, the European Union Chamber of Commerce in China has en-

deavoured to be a voice and leader of European businesses in the country. Growing from 51 member compa-nies to more than 1,500 today, the organisation's authority and influ-ence has risen substantially – proven also by its 10 annual position papers. On the European Chamber's 10th an-niversary, EuroBiz looks back at the organisation's exciting journey with its past and present presidents.

CreationWith Beijing gearing up for its entry into the WTO, and business leaders from both Europe and China prepar-ing for deepened integration, 2000 was an appropriate time to create the European Chamber. Quite simply, it was becoming increasingly impor-tant for industries across Europe to pull together.

The Chamber was established with Jean-Francois Fichaux, Peter Batey, Serge Janssens de Varebeke and Ernst Behrens at the helm, while European Commission repre-sentatives provided crucial support. Batey – who took over as Chamber president in the summer of 2001 af-ter the organisation's first president, Fichaux, was posted to Jakarta – says European industry working groups were key to the organisation's estab-lishment.

"We used a bottom-up approach," says Batey, now chairman of finan-cial advisory firm Vermillion Part-

2001 2002Peter Batey is elected president. The first position paper (left) is published with input from 14 working groups. Membership: 220

Ernst Behrens is elected president. In the same year, the Chamber launches a Shanghai office, the Advisory Board, and a monthly magazine, EuroBiz.

Membership: 300

ners. "The working groups were tied together and form the engine room of the European Chamber. An organ-isational superstructure was then put on top to represent all of the working groups – as a whole – properly."

Batey, who was also previously in-volved with establishing the British Chamber of Commerce in China, still remembers the humble beginnings of the European Chamber's annual position paper, European Business in China. Working groups were each asked to produce a summary of is-sues affecting their respective sec-tors, and to make recommendations on how to maximise opportunities from China's market opening.

While the Chamber was still small and in its development stages, Batey ➤➤

VOICE TO BE HEARD: Peter Batey is one of the European Chamber's founding fathers


2003 2004The Chamber launches its annual Brussels Circuit to present the annual position paper in Europe.

Membership: 350

Serge Janssens de Varebeke is elected president. The Nanjing chapter opens.

Membership: 500

and Trade Commission, the Chi-na Council for the Promotion of In-ternational Trade, the People's Bank of China and the Legislative Affairs Office of the State Council.

Furthermore, its conclusions were shared at a large dinner attended by more than 300 European business leaders, including Pascal Lamy, who was the European Commissioner for Trade at the time.

"We began to develop a relation-ship with the Chinese government and heightened our media profile," Batey says. "We realised that we not only had to formulate our positions, but communicate them effectively."

ConsolidationThe next challenge in the Chamber's formative years was to lay down organisational building blocks – de-spite having limited finances and only a small pool of members.

"The establishment of the EUCCC was not an easy thing to do because the national chambers feared they would lose influence. There was a bit of resistance," says Behrens, who served as the organisation's third president from 2002 to 2004.

Members did not want to pay two fees to both national chambers and the European Chamber, making it difficult to employ professional staff. To combat the problem, Behrens created an advisory board of 10 key European businesses. Companies, in-cluding Siemens (of which Behrens was CEO at the time), made an extra contribution to be part of this board,

and in return were able to meet with European political leaders on visits to China.

With financial support from the advisory board, the organisation gained greater influence – using ad-ditional funds to secure office space and professional staff, as well as pro-viding higher-quality services. The advisory board has since grown to 27 companies and membership contin-ues to rise.

Before his tenure at the European Chamber in China, Behrens served as president of the European Chamber

in the Philippines from 1995-1997 and was president of the German Chamber of Commerce in China when it was first formed in 1999.

"I am a convinced European," Beh-rens says. "I realised, having been president of the German Chamber, that the quality of change and voice you can have as one single national state is very limited. If you want a voice for your industry, you need a chamber that is united."

GrowthBuilding on momentum from the

➤➤

UNITING FORCE: Ernst Behrens led the Chamber through a period of financial stability



2005 2006Chengdu and Tianjin chapters open. In the same year, the Chamber hosts the first European Ball and co-organises the EU-China Summit in China.

Membership: 700

Pearl River Delta and Shenyang chapters open.

Membership: 1,000

European Chamber's strengthened financial situation, Serge Janssens de Varebeke became president in 2004 and led the organisation through a period of strong growth: Within three years, five new offices were opened in Nanjing, Chengdu, Tianjin, the Pearl River Delta and Shenyang. Meanwhile, membership rose from 369 to more than 1,000.

De Varebeke, the Chamber's longest-serving president, says the expansion could not have oc-curred without the financial stability brought about by his predecessor.

The organisation was also able to hold a series of large-scale events, co-organising the EU-China Summit in Beijing in 2005, an appreciation dinner for China's Minister of Com-merce Bo Xilai in 2006, as well as the first Shanghai gala ball in May 2005 and a charity ball in Beijing in No-vember 2005.

Aside from being credited for the Chamber's rapid growth, de Vare-beke also focused on improving the organisation's operations. Hiring dedicated business managers to run the working groups, for example, he

built a strong team of experienced staff and young, energetic graduates.

"We hired young, dedicated busi-ness managers who monitored dif-ferent working groups, and helped out with meetings and various issues to improve the quality of chamber operations," says de Varabeke, who has been chief representative of For-tis Bank Beijing since 1999.

This, he says, helped bolster the Chamber's service quality, putting it in a better position to face problems that were emerging with the slow-down in membership growth leading up to the global recession.

RecognitionDespite the threat posed by the global economic downturn, Joerg Wuttke, who became the European Chamber's fifth president in 2007, brought the organisation's visibility to new levels. Seeking to deepen en-gagement with both the media and the Chinese government, Wuttke helped the Chamber ignite pivotal discussions about European and Chi-nese business issues.

"I think, as a chamber, if you are just doing diligent work behind closed doors, then members don't really see your achievements," says Wuttke, chief representative of Chi-na for BASF.

"My goal was to raise our pro-file, where we could be seen as good enough to be on the front page of the Financial Times. The point was to be an active group, where members feel proud to be involved because ➤➤

LEADERS: Serge Janssens de Varebeke meets with former Minister of Commerce Bo Xilai


2007 2008Joerg Wuttke is elected president. The Shenzhen office opens, expanding the Pearl River Delta chapter.

Membership: 1,100

IPR Helpdesk is created. In the same year, 11 high-level ministerial meetings between the Chinese government and European Chamber are held.

Membership: 1,300

we are a crucial organisation that people listen to."

Wuttke – who also served as chair-man of the German Chamber from 2001-2004 – believed that a higher media profile had to be built upon facts, integrity and message consis-tency, while also staying away from "China bashing."

"My motto has always been, 'Don't preach. Focus on the issues,'" he says. "To engage effectively with China, it's important to understand that it is neither a fragile authoritarian

state, nor an unstoppable monolith. Instead, Europe needs to respect Chi-na's strengths, understand its weak-nesses and take on the many oppor-tunities its rise offers."

In November 2009, the Chamber published its first business survey, "Overcapacity in China - Causes, Impacts and Recommendations", an industry-led report on the causes and effects of overcapacity across six key sectors. Publishing a survey, in addition to the annual position pa-per, meant that the organisation was

bringing forth more content to the business community – thus provid-ing additional opportunities for face time in the public arena.

Wuttke's strong voice in the me-dia was also seen in the spring of 2009, when he began raising con-cerns about Chinese protectionism in the wind turbine industry.

"After I spoke up, there was a massive campaign among the Chi-nese media, where they argued that protectionism was not happening. International media were also very

➤➤

MORE VISIBILITY: Joerg Wuttke with Peter Mandelson, the UK's former business secretary and former European Commissioner for Trade



2009 2010The study, “Overcapacity in China-Causes, Impacts and Recommendations”, is published. The Chamber has 20 ministerial-level meetings with the Chinese government.

Membership: 1,400

Chinese Premier Wen Jiabao meets with a delegation of European Chamber senior representatives. Jacques de Boisséson is elected president.

Membership: 1,500

noisy, and then, the Chinese govern-ment began discussing government procurement policies," Wuttke says. "That was when I felt, 'My God, we really have an impact.'"

Looking forwardWorking for Total, a multinational energy company, Jacques de Boissé-son has been posted to a variety of places, including Paris, the Middle East, Latin America and now China. Since arriving in 2005, de Boisséson says the country has offered count-less exciting experiences.

"It's been the most different from all the other countries I've been in. It's great to be in this country at this time, when China is reshaping the world," de Boisséson says. "And one of the most important features of this reshaping is the relationship be-tween China and Europe."

As such, de Boisséson – who first got involved with the European Chamber three years ago as an ex-ecutive vice-president – believes the Chamber has a pivotal role to play in China's global impact as he leads the organisation into its next decade.

"I have the privilege of leading the European Chamber at a time when it is already working well, and sound in all its dimensions," he says.

Since taking on his presidential role at the end of April, de Boissé-son has concentrated on building upon the momentum of the organi-sation's strengthening voice, further increasing membership and also boosting the impact of what the

Chamber advocates. In April, for example, de Bois-

séson, Wuttke, and several other European business leaders met with Chinese Premier Wen Jiabao. A few months later, the Chamber launched its 10th position paper, presenting it not only to European leaders in Brus-sels as in previous years, but also in Berlin, Madrid, Paris and Rome.

"We really have to share our expe-riences in China with European lead-ers," de Boisséson says.

"We have an impact because we

are the best on-the-ground source of information for European policy-makers. Brussels has a distant view of China."

As he leads the organisation into its next era, de Boisséson says he will continue to strengthen it as an au-thoritative voice on European busi-ness in China.

"Our target in the next decade is to be seen as an entity that says things for the benefit of China and our members. This will be the best way to improve the business climate." ■

NEW ERA: Jacques de Boisséson meets with Chinese Premier Wen Jiabao


REGIONS • WUXI

Fuelled with new energyWuxi looks to balance technology and traditionBy Zhe Quan

Wuxi is a city of many names. Known liter-ally as "without tin" and

nicknamed the "Pearl of Lake Tai", the southern city in Jiangsu prov-ince is also called "Little Shanghai" for its rapid economic development and proximity to its eastern big brother.

While its rapid economic and technological development today re-flects the growing power of China's second-tier cities, Wuxi's progress is often overshadowed by famed neighbors such as Shanghai, Nan-jing and Suzhou. Yet, Wuxi's prog-ress is no less impressive: In 2009 it was one of China's top 10 cities in terms of GDP growth.

Much of its economic might can be attributed to the fact that Wuxi has risen as one of China's premium cities to do business. Sixty-two per-cent of the city's GDP can be attrib-uted to its 180,000 privately-owned companies. The textile industry tra-ditionally dominated a large portion of the economy, but now, the city is gradually shifting its attention to-ward R&D, as well as high-tech in-dustries.

Investors flood inIn recent years, Wuxi has attracted many foreign giants such as General Electric, IBM, Siemens and Toyota. Conveniently positioned on the Yang-tze River, the city offers a comprehen-sive transportation network consisting of air, water, rail and expressways to facilitate the flow of people and goods coming in and out of the city. As of 2009, 76 Fortune 500 companies from 11 countries had invested in more than 100 projects in Wuxi worth a to-

tal of €18.7 billion. In addition, the Wuxi New Dis-

trict (WND), built in 1992 in a sub-urb, is a major regional industrial park focusing on precision machin-ery and electronics. An export pro-cessing zone, located within the WND, offers free customs clearance and preferential foreign currency management programs as part of Wuxi's efforts to encourage and at-tract foreign investment.

"In recent years, the Wuxi New District has changed its train of thought by supporting lots of local enterprises with competitive tech-nologies," says Haidong Liu, prod-uct development director at MEM-SIC Wuxi, a company specialising in semiconductor sensors and sys-tems. "The city is heading in a really good direction, and the industrial park is setting an example of how small businesses have fresh ideas

and creativity."The city's efforts and the building

of WND have helped propel Wuxi to become one of China's leading re-newable energy hubs.

Local firm Suntech Power, for ex-ample, is the largest manufacturer of crystalline silicon photovoltaic modules in the world and current-ly delivers solar products to more than 80 countries. Furthermore, the Wind Power Science & Technology Industrial Park, located in the Huis-han Economic Development Zone in northern Wuxi, focuses on R&D as well as manufacturing new energy equipment and components.

Wuxi is also the country's lead-ing producer of pharmaceuticals, with companies such as Wuxi Phar-matech, which focuses mainly on laboratory services, manufacturing and medical device outsourcing. In 2007, the company acquired Ap-

TRADITIONAL BEAUTY: The city "without tin" is known for historical tourist attractions


Wuxi looks to balance technology and traditionBy Zhe Quan

pleTec Laboratory Services, a US pharmaceutical firm, and then pro-ceeded to gain international atten-tion with an initial public offering on the New York Stock Exchange in the same year.

"It has been very rewarding for the Wuxi government to change its economic infrastructure from traditional industries, to more val-ue-added industries such as phar-maceuticals," says Wei Zhang, a management professor at China Eu-rope International Business School.

"The city will not only be able to minimise pollution by incorporating more high-tech industries and ab-sorbing a broader knowledge-based economy, but it can also help these industries develop into a cluster."

Despite its immense efforts to-ward rapid economic development and industrialisation, the govern-ment still focuses plenty of atten-tion on preserving Wuxi's image as

a tourism hotspot. The city draws millions of visitors each year to at-tractions such as Lake Tai, Lingshan Buddha, Jichang Garden, Xihui Park and Three Kingdoms city.

But balancing a dual identity has been challenging. In 2007, chemical

plant spills caused a water contami-nation crisis, sparking a blue-green algae bloom in Lake Tai. Much of the lake habitat was destroyed, while water turned flourescent green, pu-trid and was rendered undrinkable for several days. The dangerous acci-dent tainted Wuxi's vibrant natural, ecological image – prompting the national government to pinpoint Lake Tai's clean-up and restoration as a national priority.

"The Wuxi government poured in a lot of effort and money to im-prove the conditions of Taihu Lake, and the waters have indeed im-proved greatly," says Deane Dai, di-rector of sales and marketing at the Doubletree by Hilton Resort Wuxi Lingshan.

"I think the government is do-ing a good job promoting Wuxi: popular sites draw tourists, while the industrial parks attract business travellers." ■

GROWING UP: Wuxi reflects the growing power of China's second-tier cities

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scribes the centre's work as being in its initial stage, which involves raising awareness about the impor-tance of disclosure among the 1,956 foundations onboard so far. It is also sourcing basic information and fi-nancial reports, as well as details of endowments and board membership, and posting them online. "Before we launched there was no place to find this data. That's one of our greatest achievements so far – to build the first China database," she says.

While foundations are not le-gally obligated to work with CFC, the group operates on the principle that charities have a responsibility to disclose information. "It's a mutual effort among the 35 founding organi-sations to promote the sector's devel-opment, and to really obtain the pub-lic's support and trust," Zhuang says.

Besides basic training, the centre intends to offer more professional support – helping to develop web-sites (only a third of the foundations it works with currently have an on-line presence), capacity building and supporting research. There are also

LIFE • CHARITIES

Information to giveChina's philanthropic leaders are aiming to add transparency to charitiesBy David Green

Business icons Warren Buffet and Bill Gates pulled China's burgeoning class of million-

aires uncomfortably into the spot-light with a visit to the country in September to promote their global philanthropic agenda. But behind the scenes, charitable organisations are trying to attract financial sup-port from China's wealthy in a sub-tler fashion.

There are numerous impediments to charitable giving in China, ranging from the absence of tax deductions for charitable contributions, to limitations on how one can make donations.

But the overarching issue plaguing charities in China is public mistrust. This stems from an absence of sound government regulation, as well as negative publicity focusing on fraud-ulent attempts to set up charities and misallocation of donations.

Enter the China Foundation Cen-ter (CFC). Launched in July, the or-ganisation aims to increase the trans-parency of Chinese charitable groups – including the Narada Foundation, China Youth Development Founda-tion and the Chinese Red Cross – by making information about their ac-tivities available to the public.

Steps aheadThe CFC hopes this will instil confi-dence and encourage wealthy compa-nies and individuals to give.

The initiative was formed from a mix of 35 public and private founda-tions – including the China Founda-tion for Poverty Alleviation and the Jet Li One Foundation – aiming to actively promote self-regulation in the sector.

CFC President Zhuang Ailing de-

HELPING HAND: Actor Jet Li's One Foundation helped launch the China Foundation Center

plans to expand the online database to allow donors and foundations to connect with non-governmental or-ganisations seeking grants – but only groups that meet disclosure criteria will have access.

Daniel Foa, co-chair of 51Give, says the CFC will help promote trans-parency in the sector. His website serves as an online microfinance do-nation platform, linking individual donors with 19 sub-charities. "For donors, the most attractive charities are those that report the most about what they are doing. If there is a plat-form to receive funding they will try harder – the CFC is part of the solu-tion," Foa says.

Rules emergeWhile the CFC may help boost self-governance among China's philan-thropic organisations, regulatory prog-ress is also happening at the local level. Jiangsu and Hunan provinces, as well as the cities of Beijing and Ningbo, are already experimenting with, or prepar-ing to implement, their own regula-tions on charitable donations.

"This is one of the instances of using experimentation with locali-ties to help write the national law," according to Karla Simon, professor of law at the Catholic University of America's Columbus School of Law.

Simon says that one of the impor-tant stipulations in the Jiangsu regu-lation is that charities must spend at least 70 percent of the previous year's profits on charitable activities. The Hunan legislation, currently in draft form, will reportedly clarify the obligations of donors for the first time, and strive to ensure ben-eficiaries' accountability. ■

Information to give


chamBEr BoarD

EuropEan ChambEr offiCE TEam

Shanghai officeGeneral manager: Ioana Kraft

Tel: 021 6385 2023, 6385 2133 Fax: 021 6385 2381

E-mail: [email protected]

beijing officeGeneral manager: adam Dunnett

Tel: 010 6462 2066 Fax: 010 6462 2067


Shenyang officeGeneral manager: Sierra Wang


pearl river Delta officeGeneral manager: Francine

hadjisotiriouTel: 020 3801 0267Fax: 020 3801 0275


ExECuTivE CommiTTEE of ThE EuropEan ChambEr

Treasurermichael Fredskov

christiansenNovozymes

States representativeEnrico Perlo

Guala closures

ChEngDu boarD

States representativeJens Eskelundmaersk china

President Jacques de Boisséson

Total

Vice-President David cucino

Fata

States representativeandreas Feege

KPmG

Tianjin officeGeneral manager: Kitty WangE-mail: [email protected]

Vice-PresidentJens ruebbertDeutsche Bank

chairmanPaul Sives

Proton

Jan Scheidgen FaW-Volkswagen

Stephane Schrickxmaxxelli real Estate

member*Paul Sives

Proton

adam mcWhirtermaxxelli chongqing

member*alberto Vettoretti

Dezan Shira & associates

Chengdu officeGeneral manager: Yue Zhou

Tel: 028 8529 3447Fax: 028 8529 3447


nanjing officeGeneral manager: Patricia

EnzmannTel: 025 8362 7330Fax: 025 8362 7331

Email: [email protected]

*Local Board

observermarianne GumæliusEuropean Delegation

changmin WangSiemens

Secretary General: Dirk moens

anthony chau KPmG

Vice-President David Tang

Nokia

Vice-PresidentPiter de Jong

ING Bank

member*Koen Verniers

oiltanking Nanjing


pEarl rivEr DElTa boarD

David GustinGlaxoSmithKline

Nong Ke QiangSiemens

Benoit Stosmazars Guangzhou

Tianjin boarD

chairman Eric Bouteiller

Ipsen

Gabriele castaldiGoglio

ShEnyang boarD

nanjing boarD

Wilhelm hummerjohannBaSF-YPc

Li Dongjie Lufthansa

carlo D'andreaPicozzi & morigi

chairmanalberto Vettoretti

Dezan Shira & associates

Xiaobai WangSiemens

George Van oosten Shenyang Lido Sheraton

hotel

charles-Edouard Bouee

roland Berger

marco marazziBaker & mcKenzie

Thierry Laurentroquette asia

holger Kunz TUV rhineland

ShanghaiboarD

marcus WassmuthLandesbank Baden-

Wurttemberg

Dr Stefan SackVoith Industrial Services

chairman Sven Kunath

Jinbei Johnson controls

hans KroeppeltBmW Brilliance

Dr Dahai YuEvonik

Gilles Desesquellesairbus (Tianjin)

Susanne Zhang Pongrantzraiffeisenzentralbank

austria aG

Gary Scheidemichelin Shenyang Tire

hermann Georg KleinodSiemens Electrical Drives

Ivan Salamin, alcan (Tianjin) alloy

Products

chairmanhelmut Guesten

EmZ

Piter de JongING Bank

Gerhard roeck BSh


aDVISorY coUNcIL

The European Union chamber of commerce in china is driven and funded by its members. The 27 members of the advisory council are particularly active in representing and advising the chamber, and make an enhanced contribution to the chamber's funding.

The Advisory Council of the European Chamber



chINa DINING

americanKabb bar & grill Building 5, North BlockXintiandi, Lane 181 TaicangroadTel: +86 21 3307 0798Element fresh112 East Tower Shanghaicenter, 1376 Nanjing roadWestTel: +86 21 6279 86821/F, Super Brand mall, 168 Lujiazui road West, PudongTel: +86 21 5047 20604-5/F, Kwah centre, 1028 huaihai road centralTel: +86 21 5403 8865 www.elementfresh.comWagas (Citic Square)B1-11a, 1168 Nanjing road WestTel: +86 21 5292 5228blue frog102-103a, Block 6, Daning Life hub, 1918 Gonghexin roadTel: +86 21 6631 3920

Chinese12211221 Yan'an road WestTel: +86 21 6213 6585Crystal jade12a-B 2/F, Building 6-7Xintiandi Plaza, Lane 123Xingye roadTel: +86 21 6385 87527/F, West Gate mall, 1038Nanjing road WestTel: +86 21 5228 1133guilin garden188 caobao roadTel: +86 21 6451 5098www.guilingarden.comTian Di restaurant3/F, 6 Zhongshandongyi roadTel: +86 21 6329 7333www.tiandigroup.cn

Cantonesebi feng Tang175 changle roadTel: +86 21 6467 0628www.bifengtang.com.cn1/F, Golden magnolia Plaza, 1 Dapu roadTel: +86 21 5396 1328www.bifengtang.com.cn98 changshu roadTel: +86 21 5396 0368www.bifengtang.com.cnChina bistro3/F, renaissance Shanghai Yuyuan hotel, 159 henan road SouthTel: +86 21 2321 8888Tan Wai lou5/F, Bund 18, 18 Zhongshandongyi roadTel: +86 21 6339 1188Wan hao Chinese restaurant39/F, Tomorrow Plaza, 399 Nanjing road WestTel: +86 21 5359 4969yuan yuan (xuhui)201 Xingguo roadTel: +86 21 6433 9123www.yycy.cn

italianad Domus italian restaurant

1/F, New Building, 200 Yan'an road WestTel: +86 21 6248 8499amici2/F, 1116 Yan'an road WestTel: +86 21 6115 9624bella napoli140 Xikang roadTel: +86 21 6253 8358Cameo italian restaurant a2, Green Sports & Leisure center, 633 Biyun road, Jinqiao, PudongTel: +86 21 5030 2166Casanova italian restaurant913 Julu roadTel: +86 21 5403 [email protected] marco italian restaurantGolden Bridge Garden, 103 Dongzhu'anbang roadTel: +86 21 6210 4495isola bella italian restaurant2/F, 41, Lane 816 huaihai road centralTel: +86 21 5467 0170

indian

TandoorJinjiang hotel, 59 maomingroad SouthTel: +86 21 6472 5494masala art397 Dagu roadTel: +86 21 6327 3571punjabi5/F, 627 huaihai road centralTel: +86 21 6472 5464

moroccanEl Wajh - moroccan Cuisine1800 Jinke roadTel: +86 21 5027 8261www.facebars.com

Spanishgran bodega1/F, 789 Wuyi roadTel: +86 21 5206 0719la verbenaUnit E, North Section, Binjiang avenue, 2967 Lujiazui road West, PudongTel: +86 21 5878 9837restaurant martin by martin berasategui 811 hengshan roadTel: +86 21 6431 9811

japanesemoonSha japanese Cuisine3/F, 5 on the Bund, Zhongshan road SouthTel: +86 21 6323 1117www.moonsha.netnadaman2/F, Tower 2, Pudong Shangri-La, 33 Fucheng road, Pudong

Tel: +86 21 6882 8888Kagen Teppanyaki28D Taojiang roadTel: +86 21 6433 3232haiku by hatsuneB28 Taojiang roadTel: +86 21 6445 0021LG1-36, IFc mall, 8 century avenue, PudongTel: +86 21 3882 0792Sushi inc.2/F, 33 huayuanshiqiao roadTel: +86 21 5877 6551

frenchallure11/F, 789 Nanjing road EastTel: +86 21 3318 9999 ext. 7022Café montmartre66-69 Wulumuqi roadTel: +86 21 5158 93773911 hongmei roadTel: +86 21 6261 8089Epicvre98 Xinle roadTel: +86 21 5404 7719www.epicvre.comClub Shanghai4/F, Door 7, Shanghai concert hall, 523 Yan'an road EastTel: +86 21 5383 9989www.clubshanghai.com.cnfranck376 Wukang roadTel: +86 21 6437 6465le bouchon1455 Wuding road WestTel: +86 21 6225 7088la grange794 Julu roadTel: +86 21 6248 2185le Cygne169 Jinxian roadTel: +86 21 5157 5311jean georges4/F, Three on the Bund, 3 Zhongshandongyi roadTel: +86 21 6321 7733

Sichuanla Zi yu53 Fengxian roadTel: +86 21 6267 0097187 anfu roadTel: +86 21 5403 76842/F, 1 Shuangfeng road North Tel: +86 21 6487 1015pin Chuan47 Taojiang road Tel: +86 21 6437 9361Sichuan Court39/F, hilton hotel, 250 huashan roadTel: +86 21 6248 7777 ext. 1890South beauty 881881 Yan'an road centralTel: +86 21 6247 1581

Thailittle face30 Donghu roadTel: +86 21 6466 4328royal Thai Kitchen3, 3911 hongmei roadTel: +86 21 6262 6260Simply Thai hongmei28 hongmei Leisure Street,Lane 3338, hongmei roadTel: +86 400 880 7729Thai gallery

127 Datian roadTel: +86 21 6217 9797Coconut paradise 38 Fumin roadTel: +86 21 6248 1998muang Thai Kitchen288 chengdu road North Tel: +86 21 6327 7579naam Thai1107-1108 highstreet Loft, 508 Jianshan roadTel: +86 21 5465 6005Tai Thai CuisineBack Door, 18, Lane 248, Taikang roadTel: +86 21 6466 8331Thai house205 Building 12, Lane 657Wuding roadTel: + 86 21 5213 1656

germanhofbraeuhaus Shanghai309 Jinyan roadTel: +86 21 6163 3699paulaner brauhaus150 Fenyang roadTel: +86 21 6474 57002967 Lujiazui road WestTel: +86 21 6888 393519-20 Lane 181 Taicang roadTel: +86 21 6320 3935

greekgreek TavernaUnit 41, 1/F, 43 Lane 199 Fangdian roadTel: +86 21 5033 7500mythosBuilding 6, Lane 505, Zhongshan road SouthTel: +86 21 6152 6755

mexicanCantina agave291 Fumin roadTel: +86 21 6170 1310maya2/F, Lane 568 Julu roadTel: +86 21 6289 6889

nepalesenepali Kitchen4, Lane 819, Julu roadTel: +86 21 5404 6281

TaiwaneseDin Tai fung (nanjing road West)a104, 1/F, Shanghai centre, 1376 Nanjing road WestTel: +86 21 6289 9182Din Tai fung (pudong)Unit 24, 3/F, Super Brand mall, 168 Lujiazui road WestTel: +86 21 5047 8883Din Tai fung (SWfC)Unit 318, 3/F, Shanghai World Financial center, 100 century avenue, PudongTel: +86 21 6877 6886Din Tai fung (xintiandi)Unit 11, 2/F, Building 6, South Block, 123 Xinye roadTel: +86 21 6385 8378

grillavalon Wood grill & Wine bar2/F, 139-19 changle roadTel: +86 21 5382 0862

Shanghai 上海


americanThe american Cafe1/F, Blue castle International apartments, 3 Xidawang road, chaoyangTel: +86 10 8599 7428The astor grill3/F, St. regis hotel apartment, 21 Jianguomenwai avenue, chaoyangTel: +86 10 6460 6688Eudora Stationopposite of Lido Plaza, 6 Fangyuan road West, chaoyangTel: +86 10 6437 8331grandma's Kitchen11a Xiushui Street South, chaoyangTel: +86 10 6503 2893103, Building B, Jianwai Soho, 39 Dongsanhuanzhong road, chaoyangTel: +86 10 5869 305547-2 Nanchizi avenue, DongchengTel: +86 10 6528 2790The grillradisson SaS hotel, a6 Beisanhuandong road, chaoyangTel: +86 10 5922 3388Steak & EggsXiushui Street South, Jianguomenwai avenueTel: +86 10 6592 8088outback Steakhouse (hotelStore)a-1, East Building hotel, 33 chang'an avenue East, DongchengTel: +86 10 6528 2858outback Steakhouse (Workers' Stadium)1/F, East Wing North Gate, Workers' Stadium, Gongti road North, chaoyangTel: +86 10 6506 5166

Cantoneseah yat abalone restaurant4/F, Building 4, Yard 11, Sanlitun road, chaoyangTel: +86 10 6508 9613DiIntercontinental Beichen Beijing, 8 Beichen road West, chaoyangTel: +86 10 8437 1288lei garden3/F, Jinbao Tower, 89 Jinbao Street, DongchengTel: +86 10 8522 1212monsoon5/F, Intercontinental Beijing, 11 Jinrong Street, XichengTel: +86 10 5852 5916Shang palace2/F, Shangri-La hotel, 29 Zizhuyuan road, haidianTel: +86 10 6841 2211mei jing jin yuan3/F, Jiangsu Building, D88 andingmenwai avenue, DongchengTel: +86 10 6426 6355The horizon Chinese restaurant1/F, Shangri-La Kerry center hotel Beijing, 1 Guanghua

road, chaoyangTel: +86 10 6561 8833 ext. 41yao ChiGrand millennium Beijing, Fortune Plaza, 7 Dongsanhuanzhong road, chaoyangTel: +86 10 8587 6888yuritz-carlton hotel, china central Place, a83 Jianguo road, chaoyangTel: +86 10 5908 8888ZEn5/F, Intercontinental Beijing, 11 Jingrong Street, XichengTel: +86 10 5852 5888

ChineseTian Di restaurant140 Nanchizi avenue, DongchengTel: +86 10 8511 5556www.tiandigroup.cn

indian

Tandoor1/F, Zhaolong hotel, 2 Gongti road North, chaoyangTel: +86 10 6597 2211Taj pavilionL128, 1/F, West Tower china World Trade center, 1 Jianguomenwai avenue, chaoyangTel: +86 10 6505 5866

beijingSummer palace2/F, china World hotel, 1 Jianguomenwai avenue, chaoyangTel: +86 10 6505 2266

frenchbleu marine5 Guanghuaxili, chaoyangTel: +86 10 6500 6704la vin6 Beisihuandong road, chaoyangTel: +86 10 8457 2839

germanDer landgrafa2 Pufang road, FangzhuangTel: +86 10 6768 2664Drei Kronen 1308Building 5 china View, c2 Gongtiroad East, chaoyangTel: +86 10 6503 5555

italianagrilandiaBaigezhuang Village, mapo Town, ShunyiTel: +86 10 6940 7801www.agrilandia.cnCepe

Beijing 北京

To have your restaurant featured in these pages, please contact one of our representatives at (021) 5385 9063

1/F, ritz-carlton hotel, 1Jinchengfang Street East,XichengTel: +86 10 6601 6666Daccapo2/F, Grand hyatt hotel, oriental Plaza, 1 chang'an avenue East, DongchengTel: +86 10 6510 9628luce Cafe138 Jiugulou avenue, XichengTel: +86 10 8402 4417Sophia'sThe Presidential, a9 Fuchengmenwai road, XichengTel: +86 10 5858 5588

japanesehaiku by hatsuneNo. 8 apartments, West Gate chaoyang Park, chaoyangTel: +86 10 6508 8585ajitokuB113 raycom Infotech Park Tower c, 2 Kexueyuannan road, haidianTel: +86 10 8286 1993hatsune2/F, Building c heqiao Building,a8 Guanghua road East,chaoyangTel: +86 10 6581 3939izaka-ya and ushi-ya4 Gongti road North, chaoyangTel: +86 10 6585 3570Kagen TeppanyakiB1/F, Tower c, heqiao mansion, a8 Guanghua road East, chaoyangTel: +86 10 6583 2332nadaman3/F, china World hotel, 1 Jianguomenwai avenue, chaoyangTel: +86 10 6505 2266 ext. 39Shota muni S-108, Building c, Blue castleapartments, 3 Xidawang road, chaoyangTel: +86 10 8599 9009Tairyo Teppanyaki3/F, Building 6, china View,c2 Gongti road East, chaoyangTel: +86 10 8587 1180

Koreanai jiang ShanNorth Gate, Side Park, Jiangtai road West, chaoyangTel: +86 10 8456 93362 Zhengfu Temple, haidianTel: +86 10 5190 6655www.aijiangshan.comSuraon9-8, Side Park, Jiangtai road West, chaoyangTel: +86 10 8456 8008Sorabol restaurant 2/F, Landmark Building, 8 Dongsanhuanbei road, chaoyangTel: +86 10 6590 0630www.hwrfood.comSaveurs de Coree29 Nanluogu alley, DongchengTel: +86 10 6401 6083

mediterraneanaria2/F, china World hotel, 1 Jianguomenwai avenue, chaoyang

Tel: +86 10 6505 2266athena1 Xiwu Street, Sanlitun,chaoyangTel: +86 10 6464 6036happy valley1/F, 2 chaoyangmenbei avenue, DongchengTel: +86 10 6553 2288marec12 Guanghua road, chaoyangTel: +86 10 6595 4178W Dine & Wine22-1 Dongzhimenwai avenue, chaoyangTel: +86 10 6416 9838

SichuanChilli peppers1/F, Longchengligong hotel, huilongguanTel: +86 10 8079 9988Chuan ban5 Gongyuantoutiao, Jianguomennei avenue, DongchengTel: +86 10 6512 2277

Thaivery Siama10 Xinyuanxilidong Street, chaoyangTel: +86 10 8451 0031banana leaf4 Gongti road NorthTel: +86 10 6506 8855South Side, Block B, ZhongguancunShopping centre, 15 Zhongguancun avenueTel: +86 10 5986 3666bali papaya 2/F, Nali Patio, 81 Sanlitun Street North, chaoyangTel: +86 10 5208 6029jimmy's Thai Kitchen & lounge 1/F, East Gate Plaza Building, Dongzhimen, DongchengTel: +86 10 6418 5157laburnumWest Gate, Beijing Worker's Stadium, Gongti road West, chaoyangTel: +86 10 6652 9999lantung Thai bar & bistro 16-1 Solana Park, 6 chaoyang Park road, chaoyang Tel: +86 10 5905 6213patara6/F, Jinbao Place, 88 Jinbao Street, DongchengTel: +86 10 8522 1678purple haze Thai restaurant & bar a55 Xingfuyicun, chaoyangTel: +86 10 6413 0899


BUSINESS TooLKIT

a handy guide to professional services around ChinaaccountingErnst & young hua mingBeijing16/F, Ernst & Young Toweroriental Plaza, 1 chang'anavenue East, DongchengTel: +86 10 5815 3000www.ey.comGuangdong36/F, Tower B center Plaza,161 Linhe road West, Tianhe,GuangzhouTel: +86 20 2881 2888www.ey.com

lehmanbrown international accountantswww.lehmanbrown.comBeijing602, Dongwai Diplomatic office Building, 23 Dongzhimenwai avenue,chaoyang Tel: +86 10 8532 1720 E-mail: [email protected], WanTai International Building, 480 North Urumqi road Tel: +86 21 6249 0055E-mail: [email protected], china Shine Plaza, 9 Linhe West roadTel: +86 20 2205 7883E-mail: [email protected]

business Schoolsbeijing international mba at peking university101, china center for Economic research, Peking UniversityTel: +86 10 6275 4800www.bimba.edu.cn

CEibSShanghai699 hongfeng road, PudongTel: +86 21 2890 5890www.ceibs.eduBeijingBuilding 20, Zhongguancun Software Park, 8 Dongbeiwang road West, haidianTel: +86 10 8296 6600www.ceibs.edu

Tsinghua university mba119, Shunde Building, School of Economics and management,

Tsinghua University, haidian, BeijingTel: +86 10 6279 [email protected]

Car rental

rising Shanghai Car rentalProvides professional serviceincluding:- Long-term leasing- Short-term car rental- airport pick-up / drop-off- Business travel service- Exhibition & conferenceservice- Tourism trip serviceTel: +86 21 5447 8361Tel: +86 21 5447 8362Fax: +86 21 5447 [email protected]

Shanghai longhui Car rental203, 24, Lane 300 Jinxiu road,PudongTel: +86 21 5169 9238Tel: +86 21 5109 9838Fax: +86 21 5854 [email protected]/cn

anji Car rental & leasing1387 changning road, ShanghaiTel: 400 882 1119Tel: +86 21 6229 [email protected]

financial Consultingausten morris associatesbeijing 2509, Silver Tower,2 Dongsanhuan road North,chaoyangTel: +86 10 6410 [email protected]

austen morris associatesShanghai19/F, Guangdong DevelopmentBank Tower, 555 Xujiahui roadTel: +86 21 6390 [email protected]

health CareShanghai

parkwayhealth medicalCenters 24-hour appointment ServicecenterTel: +86 21 6445 5999www.parkwayhealth.cnGleneagles medical andSurgical center4/F, 389 Nanjing road West, Tomorrow SquareShanghai centre medical andDental centers203-4 West retail Plaza, 1376Nanjing road WestSpecialty and Inpatient center2-3/F, 170 Danshui roadhong Qiao medical center2258 hongqiao roadJin Qiao medical and Dentalcenter51 hongfeng road, Jinqiao,Pudongmandarine city medical centermandarine city, Unit 30, 788hongxu road

jing xian Dental Clinic4 Paris Garden, Lane 119 ronghua road EastTel: +86 21 6278 0936

Beijinghong Kong internationalmedical Clinic, beijing 9/F, office Tower hong Kongmacau center-Swissôtel,2 chaoyangmen avenue North,DongchengTel: +86 10 6553 2288 / 2345/2346 / 2347Fax: +86 10 6502 [email protected]

hotelshotel new otani Chang fu gong26 Jianguomenwai avenueTel: +86 10 6512 [email protected]

Courtyard by marriott beijingnortheast101 Jingshun road, chaoyangTel: +86 10 5907 6666Tel: 400 888 5551www.courtyardbeijingnortheast.comcy.bjsne.reservations@courtyard.com

Crowne plaza beijing48 Wangfujing avenue,DongchengTel: +86 10 5911 9999

www.crowneplaza.com/[email protected]

landison plaza hotel333 Tiyuchang road, hangzhouTel: +86 571 8515 8888www.landisonplazahotel.com.cn

Sofitel Shanghai hyland 505 Nanjing road EastTel: +86 21 6351 5888/[email protected]

international SchoolsBeijing

beanstalk international bilingual School (bibS)6 North road of East Fourthring road, chaoyangTel: +86 10 5130 [email protected]

beanstalk international Kindergarten (biK)1/F, B Building, 40 Liangmaqiaoroad, chaoyangTel: +86 10 6466 [email protected]

beanstalk international middle/high School38 Nanshiliju, chaoyangTel: +86 10 8456 [email protected]

international School of beijing10 anhua Street, ShunyiTel: +86 10 8149 2345www.isb.bj.edu.cn

Canadian international School of beijing38 Liangmaqiao road,chaoyangTel: +86 10 6465 [email protected]

Tianjin

international School of Tianjin Weishan road, Shuang Gang,JinnanTel: +86 22 2859 2001


To have your business featured in these pages, please contact one of our representatives at (021) 5385 9063

Fax: +86 22 2859 2007www.istianjin.org [email protected]

hr/recruitmentBeijingbeijing foreign EnterpriseService group Foreign Enterprise Building, 15Dawang road WestTel: +86 10 6777 9999www.fescogroup.com.cn

China internationalintellectech Corp.25/F, West Wing hanwei Plaza,7 Guanghua road, chaoyangTel: +86 10 6561 3920www.ciic.com.cn

ShanghaiChina Team6008, Novel Building, 887 huaihai road centralTel: +86 21 6474 [email protected]

heidrick & Struggles3701, Tower 2, Plaza 66, 1366 Nanjing road WestTel: +86 21 6136 1988www.heidrick.com

michael page international Consulting602-603, Shanghai Kerry centre, 1515 Nanjing road WestTel: +86 21 3222 [email protected]

language Schoolsambassador mandarinTel: +86 10 5870 2833www.ambassadormandarin. [email protected] OfficeUnit 505, The SpacesInternational center8 Dongdaqiao roadchaoyang, BeijingSanyuanqiao OfficeJingxin mansion 222, 2aDongbeisanhuan road,chaoyang, Beijing

new Concept mandarinwww.newconceptmandarin.comShanghai 9h, Ladoll InternationalBuilding, 831 Xinzha road,Jing'anTel: +86 21 5228 [email protected] 1903, Tower B, ocean Express, Yard 66, Xiaguangli,Sanyuanqiao, chaoyangTel: +86 10 8446 6455beijing@newconceptmandarin. comNanjing D1 17/F, Shangmao century Plaza, 49 Zhongshan road SouthTel: +86 25 8487 2361nanjing@newconceptmandarin. comSuzhou

Unit 230, Bailing mansionsoffice Building, 168 Xinghairoad, Suzhou Industrial ParkTel: +86 512 6288 6250suzhou@newconceptmandarin. comShenzhen 3/F, Bitao center, 8 Taizi road,ShekouTel: +86 755 2688 [email protected] Unit 2001, Tower D Phase 2Tianyu Garden,138 Linhe roadcentral, TianheTel: +86 20 3893 [email protected]/F,15 Begonia road, NewWorld Garden, DongchengTel: +86 769 2248 [email protected]

Tli-iyuBeijing40 Liangmaqiao road,chaoyangTel: +86 10 6461 2973Tel: +86 10 6468 3311 x3509www.bjtli.cn

law firmslehman, lee & xuBeijing10-2, Liangmaqiao Diplomatic compound, 22 Dongfang road East, chaoyangTel: +86 10 8532 1919www.lehmanlaw.comShanghai16/F, Tower F, mirae asset Tower, 166 Lujiazuihuan road, PudongTel: +86 21 5877 [email protected]

K&l gateswww.klgates.comBeijing711, Tower W1, oriental Plaza, 1 chang'an avenue East, DongchengTel: +86 10 8518 8528Shanghai3705, Park Place, 1601 Nanjing road WestTel: +86 21 2211 2000

residence & Serviced aptslanson place jin Qiao residences, Shanghai17-18, Lane 399, Zaozhuangroad, PudongTel: +86 21 5013 [email protected]

fraser Suites Top glory 1, Lane 600, Yincheng roadcentral, Lujiazui, Pudong, ShanghaiTel: +86 21 6378 8888Fax: +86 21 5877 1928www.fraserhospitality.comsales.fsshanghai@frasershospitality.com

Shama luxe at xintiandi

Building 18, Lakeville regency,168 Shunchang road, ShanghaiTel: +86 21 2320 [email protected]

marriott Executive apartments union Square pudong506 Shangcheng road, PudongTel: +86 21 2899 8888Fax: +86 21 2899 8877

Shama xujiahuiTower 11-12, Novel century,Lane 81 Xingeng road,ShanghaiTel: +86 21 2411 [email protected]

oakwood residence hangzhou28 Jiaogong road, hangzhouTel: +86 571 8899 3131Fax: +86 571 8899 [email protected]

relocation Services

Crown Worldwide Crown Beijing crown Worldwide Building,16 Xingmao 1st Street,Tongzhou Logistics Park,majuqiao Town, TongzhouTel: +86 10 5801 8088Fax: +86 10 5801 [email protected] Shanghai crown Worldwide Building, 59Lane 729-75, Suide roadTel: +86 21 6250 8820Fax: +86 21 6250 [email protected]

Service providers

www.grmchina.comgrm Shanghai 2 Lane 271 Qianyang roadTel: +86 21 5270 3311

Fax: +86 21 5270 [email protected] beijing6 Shuangyang road, BeijingEconomic and TechnologyDevelopment areaTel: +86 10 6789 2800Fax: +86 10 6789 [email protected] guangdong8 Qiufulu District, FuminIndustrial Park, Dalang Town,DongguanTel: +86 769 8222 9922Fax: +86 769 8222 [email protected]

Serviced offices

The Executive CentreXintiandi, 159 madang roadTel: +86 21 6135 7188CITIC Square, 1168 Nanjing road WestTel: +86 21 5252 4618 The Center, 989 changle roadTel: +86 21 5116 6888 Chong Hing Financial Center,288 Nanjing road West Tel: +86 21 [email protected]

SErvCorpwww.servcorp.netBeijing24/F, Tower 3 china centralPlace, 77 Jianguo road,chaoyangTel: +86 10 8588 0100Shanghai23/F, citigroup Tower, 33huayuanshiqiao roadTel: +86 21 6101 0000

asianbiz3-4/F, Senben Plaza, 567Tianyaoqiao road, ShanghaiTel: 400 630 [email protected]


comPaNY INDEX

Advertisers in red

51give 38

a-D

Agricultural Bank of China 13, 14

Air China 24

Air France 52

Airbus 18

AppleTec Laboratory Services 37

Audi 15

Bank of China 13, 14

Bank of Communications 13

BASF 34

Beanstalk International Bilingual

School 37

BMW 15

Boeing 15

Catholic University of America 38

China Construction Bank 13, 14

China Eastern Airlines 15

China Europe International

Business School 16, 37

China Foundation Center 38

China Foundation for

Poverty Alleviation 38

China Real Estate Business 14

China Team 3

Chongqing Wanda Hotel 25

Climate Exchange 12

Courtyard Jiading 19

Deutsche Bank Group 16

Dikara Spa 18

DK 1308 18

Dongdao 24

Doubletree by Hilton

Wuxi Lingshan 37

E-l

Economist Intelligence Unit 16

Eleganza Uomo 51

Finnair 5

Fortis Bank 33

Gap 14

Geely 15

General Electric 36

Gide Loyrette Nouel 26

Goglio 18

Holcim 24

Hyatt Regency Hangzhou 21

IBM 36

Industrial and Commercial Bank

of China 13, 14

Ipsen 18

Jet Li One Foundation 38

Jones Lang LaSalle 18

Kingkey Palace Hotel 11

KPMG 27

LAN Club 17

m-p

Manchester MBA 2

Mazars 19

MEMSIC Wuxi 36

Metro 15

Microsoft 14, 28

New Concept Mandarin 19

New Huadu Industrial Group 28

Nottingham University 26

Okura Garden Hotel 15

Pacific Western University 28

Parkway Health

Medical Centers 13

People's Bank of China 13, 14, 32

Philips 16

Q-T

Radisson 18

Raffles Hotel 18

Red Flag Screening 28

Rolls-Royce 15

Schneider Electric 16

SGS-CSTC Technical Standards

Services 22, 23

Sheraton Sanya 29

Siemens 18, 32, 36

Sina 14, 24

Starbucks 14

Suntech 36

TCL 26

Thomson Electronics 26

Total 36

Toyota 36

Vermillion Partners 31

Vestas 18

Volvo 15

Walt Disney 14

Western Academy of Beijing 39

Westin 18

Westin Fuzhou 7

World Bank 12

World Med MBA 9

Wuxi Pharmatech 37

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oUT oF ThE BoX

Eye on the westNew trade bloc in central asia demands attention from china By Mark Godfrey

Radical change may be on the horizon for some of China's western neighbours, which

are coming together in a customs union. Frustrated by its lack of prog-ress in entering the WTO, Russia created a customs union with Ka-zakhstan and Belarus this year. The plan involves eventually creating a common market with a population of some 170 million people by the end of 2012.

This could have great impact on China. Central Asian neighbours like Kazakhstan are strategically impor-tant to China in terms of resources, and also providing an overland rail route to Europe – something that has long been proposed by Beijing. China, for example, has made efforts to in-crease integration through the Shang-hai Cooperation Organisation, which was founded in 2001 by leaders of China, Kazakhstan, Kyrgyzstan, Rus-sia, Tajikistan and Uzbekistan.

Yet, Central Asia has enjoyed little of China's manufacturing-driven eco-nomic success. As a result, it has been looking to Europe and the US to stim-ulate trade and economic growth.

integrating marketsEncouraging cooperation between Central Asian countries is the focus of assistance programmes separately funded by the German state aid agen-cy, German Technical Cooperation (GTZ) as well as the United States Agency of International Development (USAID).

Jonathon Hornbrook, GTZ's pro-gramme manager in the Kyrgyz capital of Bishkek, says his project has been assisting Central Asian gov-ernments with simplifying customs regimes so that exporters can stream-

line the shipment of goods. Horn-brook says he was shocked to find that Kyrgyz exporters are required to provide 27 separate documents at the country's borders. Such red tape – and bribes paid to avoid it – is largely why the private sector remains weak in Kyrgyzstan, as well as neighbouring states like Tajikistan and Uzbekistan.

Training local bureaucrats to change, GTZ borrowed a "single win-dow" customs model which elimi-nates paper work for exporters and al-lows countries exchange information. In addition, the GTZ project is also helping Central Asia to implement internationally- recognised standards, such as the International Organiza-tion for Standardization.

Initial enthusiasm among Central Asian governments bodes well for change, though progress may be slow, says Allen Shin, who runs the USAID-funded Regional Trade Liberalization & Customs Project across Central Asia.

China will have to keep a close watch on the impact of the Central Asian customs bloc. Hornbrook says China's neighbours Kyrgyzstan and Tajikistan are also seriously consider-ing participation, since both remain

dependent on Russia as a source of exports and emigrant remittances.

The affect of duty-free Russian goods on Chinese export markets re-mains to be seen. Many predict that products from Russia will be more af-fordable for Central Asian consumers than imports from other countries, including China. "Kyrgyzstan is not in the position to compete with a cus-toms union," Shin says. "It will buy manufactured goods from Russia. It will go back to driving Ladas."

Increased economic integration and cheaper goods may be just what some Central Asian countries need. Already crimped by substandard pow-er and infrastructure systems, poorer states like Kyrgyzstan and Tajikistan suffered from a drop in remittances from migrant workers – which con-stituted about 20 percent of Kyrgyz-stan's and 37 percent of Tajikistan's GDP in 2008 and 2009, respectively – in Russia.

As such, China may find it needs to be more proactive in embracing its western neighbours, and find a way to boost the Shanghai Cooperation Organisation's activity on an eco-nomic level. ■

BRIDGE TO EUROPE: A Central Asian customs bloc may have an impact on China


EuroBizDec2010

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