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10<br />
8<br />
Spring 2010 Issue<br />
CONNECT is the quarterly magazine of the<br />
<strong>EU</strong>-<strong>China</strong> <strong>Managers</strong> <strong>Exchange</strong> <strong>and</strong> <strong>Training</strong><br />
<strong>Programme</strong> (METP) <strong>and</strong> the <strong>EU</strong>-<strong>China</strong> <strong>Managers</strong><br />
Association (<strong>EU</strong>CMA).<br />
CONNECT is free of charge. Please contact us<br />
for subscription or additional copies.<br />
CONNECT is also available for free download<br />
at www.metp.net.cn.<br />
CONNECT is published with financial<br />
assistance from the European Commission. The<br />
views herein in no way reflect an official<br />
opinion of the Commission.<br />
Editors<br />
Xu Liang, Dr. Stefan Hell<br />
Rachel Zhao, Aless<strong>and</strong>ro Celestino<br />
Contact<br />
<strong>EU</strong>-<strong>China</strong> <strong>Managers</strong> <strong>Exchange</strong> <strong>and</strong> <strong>Training</strong><br />
<strong>Programme</strong> (METP)<br />
Suite 507, Towercrest Plaza<br />
No.3 Maizidian West Road,<br />
Chaoyang District<br />
Beijing 100016, P.R. <strong>China</strong><br />
Tel.: +86-10-8458 0585<br />
Fax: +86-10-8468 0965<br />
Email: info@metp.net.cn<br />
Web : www.metp.net.cn<br />
中 国 - 欧 盟 经 理 人 交 流 培 训 项 目<br />
中 国 北 京 市 朝 阳 区 麦 子 店 西 路 3 号<br />
北 京 新 恒 基 国 际 大 厦 507 室<br />
邮 编 :100016<br />
电 话 :+86-10-8458 0585<br />
传 真 :+86-10-8468 0965<br />
电 子 邮 箱 :info@metp.net.cn<br />
网 站 :www.metp.net.cn<br />
Design & Layout by<br />
Yang Yanchao, Dr. Stefan Hell<br />
Rachel Zhao<br />
Printed in 1,500 copies by<br />
<strong>EU</strong>CMA<br />
29<br />
Editorial 3<br />
METP at a Glance:<br />
An exciting Opportunity for Business <strong>and</strong> Career<br />
Development in Europe <strong>and</strong> <strong>China</strong><br />
项 目 简 介 : 推 动 中 欧 商 贸 发 展 和 人 才 培 养 4<br />
Fourth <strong>EU</strong>-<strong>China</strong> Networking Day in Beijing 6<br />
Pre-selection <strong>and</strong> Selection of Applicants<br />
for METP 5 8<br />
<strong>China</strong> has performed exceptionally well-<br />
Interview with economist <strong>and</strong> METP expert<br />
Prof. M.S.S. El Namaki 10<br />
Letter from the President 12<br />
Photo Contest “Impressions” Award Ceremony 2009 12<br />
<strong>EU</strong>CMA Elections 2010 14<br />
<strong>EU</strong>CMA exp<strong>and</strong>s its activities throughout <strong>China</strong><br />
“Doing Business in <strong>China</strong> - a Practical Approach”<br />
15<br />
16<br />
Making Energy Efficiency Pay Off 18<br />
Chinese Experiences in Europe 20<br />
METP In the Press 24<br />
METP News 26<br />
2
Editorial<br />
Dear Reader,<br />
W<br />
ith the extension of METP rapidly approaching, the past months have<br />
been particularly busy for the METP Team. Not only did we try to offer<br />
the best possible business programme – the series of study tours, lectures,<br />
workshops <strong>and</strong> company visits – to the METP 4 participants in <strong>China</strong>, but in parallel<br />
we organised the selection of new participants for METP 5. The application period<br />
ended at the start of the New Year <strong>and</strong> it took nearly all of the following three months<br />
to carefully pre-select <strong>and</strong> select the best 110 c<strong>and</strong>idates in <strong>China</strong> <strong>and</strong> Europe from<br />
over 400 applicants. METP 5 is now on track to become the largest of all five intakes<br />
<strong>and</strong> will open its doors in May 2010.<br />
The adoption of the Lisbon Treaty in late 2009 also did not go unnoticed in <strong>China</strong>.<br />
At METP we were particularly pleased by the fact that Baroness Catherine Ashton’s<br />
appointment as High Representative of the <strong>EU</strong> for Foreign Affairs <strong>and</strong> Security Policy<br />
came only weeks after her visit of METP in Beijing. We naturally remembered a similar<br />
coincidence, which occurred in 2008 when then-Commissioner Dalia Grybauskaite<br />
was elected President of Lithuania shortly after she presented graduation diplomas to<br />
METP 2 participants in Beijing.<br />
In this issue of CONNECT we bring you an interview with one of the METP<br />
experts, Dr. Sam El Namaki, who is an authority on <strong>China</strong>’s economic development<br />
<strong>and</strong> who weighs in on how <strong>China</strong> is coping with the global economic downturn. We<br />
are very glad to also feature four Chinese METP 3 participants, who describe their<br />
experiences <strong>and</strong> impressions during their work placements in the European Union.<br />
Furthermore, this issue of CONNECT again assembles a host of other information on<br />
our activities in Europe <strong>and</strong> in <strong>China</strong>. The news section describes not only the wide<br />
range of events <strong>and</strong> study tours we organised, but also informs you on the capacity<br />
building activities under METP. And last but not least <strong>EU</strong>CMA, METP’s alumni association,<br />
is featured with an extended 8-page section on the association’s manifold<br />
activities <strong>and</strong> future plans.<br />
If you wish to become involved in METP’s activities as an individual, company<br />
or partner, we would be delighted to hear from you. The METP website with the most<br />
comprehensive <strong>and</strong> up-to-date information on our programme is only a click away, so<br />
do visit us at www.metp.net.cn <strong>and</strong> have a look around the site.<br />
Xu Liang<br />
METP Project Director<br />
Dr. Stefan Hell<br />
METP Team Leader<br />
3
项 目 简 介<br />
推 动 中 欧 商 贸 发 展 和 人 才 培 养<br />
0 0 6 年 7 月 启 动 的 中 国 - 欧 盟 经 理 人 交 流<br />
培 训 项 目 是 中 国 和 欧 盟 在 国 际 贸 易 领<br />
域 开 展 的 政 府 间 合 作 项 目 。 在 中 欧 关 系<br />
日 益 紧 密 的 今 天 , 本 项 目 致 力 于 人 力 资 源 开<br />
发 , 以 达 到 提 高 从 事 中 欧 商 贸 交 流 的 人 才 数<br />
量 和 质 量 的 目 的 。 项 目 计 划 分 别 在 中 国 和 欧<br />
洲 培 训 中 欧 经 理 人 各 200 名 并 资 助 他 们 到 中<br />
欧 企 业 或 机 构 实 习 。<br />
项 目 的 中 方 执 行 机 构 是 中 国 国 际 贸 易 促 进<br />
委 员 会 。 中 国 商 务 部 是 项 目 执 行 的 中 方 主 管 部<br />
门 ; 欧 洲 委 员 会 驻 华 代 表 团 是 项 目 的 欧 方 主 管 机<br />
构 。 项 目 执 行 期 为 四 年 , 总 预 算 为 23000000 欧 元 。<br />
项 目 培 训 分 为 五 期 进 行 : 一 期 培 训 已 于 2007<br />
年 8 月 启 动 , 二 期 培 训 于 2008 年 3 月 启 动 , 三 期 培<br />
训 于 2008 年 10 月 启 动 , 四 期 培 训 于 2009 年 5 月 启<br />
动 , 第 五 期 培 训 计 划 于 2010 年 5 月 启 动 。 所 有 培<br />
训 费 用 将 由 项 目 承 担 , 并 为 每 位 参 训 经 理 人 提<br />
供 生 活 补 贴 和 旅 行 补 贴 。<br />
参 训 中 国 经 理 人 和 欧 洲 经 理 人 将 首 先 在 北<br />
京 展 开 为 期 两 周 的 跨 文 化 交 流 培 训 。 随 后 , 中 国<br />
经 理 人 将 赴 欧 洲 三 所 知 名 商 学 院 ( 巴 黎 高 等 商<br />
学 院 - 欧 洲 管 理 学 院 、 曼 彻 斯 特 城 市 大 学 商 学<br />
院 、 布 鲁 塞 尔 自 由 大 学 索 尔 韦 商 学 院 ) 接 受 7 周<br />
量 身 定 制 的 管 理 培 训 。 培 训 结 束 后 , 项 目 将 支 持<br />
中 国 经 理 人 在 欧 盟 企 业 或 机 构 进 行 为 期 7 到 21<br />
周 的 实 习 。<br />
同 时 , 欧 洲 经 理 人 将 在 北 京 的 对 外 经 济 贸 易<br />
大 学 接 受 为 期 7 个 月 的 全 职 汉 语 语 言 培 训 , 期 间<br />
还 将 参 加 文 化 及 商 业 主 题 的 研 讨 和 访 问 活 动 。<br />
培 训 结 束 后 , 他 们 将 在 中 国 的 企 业 或 机 构 实 习<br />
三 个 月 。<br />
所 有 的 项 目 参 与 者 都 可 以 加 入 中 国 欧 盟 经<br />
理 协 会 。 该 协 会 是 已 顺 利 实 施 的 中 国 - 欧 盟 青<br />
年 经 理 人 培 训 项 目 的 校 友 联 谊 会 。 管 理 协 会 的<br />
理 事 会 由 选 举 产 生 的 志 愿 者 组 成 。 其 宗 旨 是 为<br />
参 与 项 目 的 经 理 人 提 供 更 多 后 续 支 持 , 提 供 各<br />
类 商 务 联 谊 活 动 机 会 , 从 而 扩 大<br />
会 员 的 商 务 联 系 网 络 。<br />
4
METP at a Glance:<br />
An exciting Opportunity for Business <strong>and</strong><br />
Career Development in Europe <strong>and</strong> <strong>China</strong><br />
The <strong>EU</strong>-<strong>China</strong> <strong>Managers</strong> <strong>Exchange</strong> <strong>and</strong> <strong>Training</strong><br />
<strong>Programme</strong> (METP), launched in July 2006, is a fiveyear<br />
intergovernmental cooperation project between<br />
the European Union <strong>and</strong> the Government of the People's<br />
Republic of <strong>China</strong> in the field of international trade. Located<br />
in the dynamic context of continuously developing relations<br />
between the <strong>EU</strong> <strong>and</strong> <strong>China</strong>, the programme aims to enhance<br />
business expertise by developing European <strong>and</strong> Chinese human<br />
resources. METP's main purpose is to organise training <strong>and</strong><br />
financially support internships for 450 Chinese <strong>and</strong> European<br />
managers.<br />
METP is implemented by the <strong>China</strong> Council for the<br />
Promotion of International Trade (CCPIT) in close consultation<br />
with the Ministry of Commerce on the Chinese side <strong>and</strong> the<br />
Delegation of the European Union to <strong>China</strong> <strong>and</strong> Mongolia on<br />
the European side. Over five years the total funding for METP is<br />
23,000,000 euros.<br />
METP <strong>Training</strong> is structured in five intakes: METP 1 started<br />
in August 2007, METP 2 in March 2008, METP 3 started in<br />
October 2008, METP 4 in May 2009 <strong>and</strong> METP 5 is scheduled to<br />
begin in May 2010. METP covers all tuition fees for participants,<br />
provides a generous living allowance <strong>and</strong> travel subsidies.<br />
Each of the five intakes starts with a joint two-week<br />
intercultural training for all selected Chinese <strong>and</strong> European<br />
managers in <strong>China</strong>. Following the intercultural training Chinese<br />
managers receive seven-weeks of tailor-made management<br />
training at three leading European business schools (ESCP<br />
European School of Management, Manchester Metropolitan<br />
University Business School <strong>and</strong> Solvay Business School at<br />
Université Libre de Bruxelles). After their training METP<br />
supports Chinese managers to take up internships of between<br />
seven <strong>and</strong> twenty one weeks with enterprises <strong>and</strong> organizations<br />
in the European Union.<br />
Following their intercultural training European managers<br />
begin an intensive, full-time seven-month Business Chinese<br />
language training at the University of International Business <strong>and</strong><br />
Economics in Beijing; this is complemented by seminars <strong>and</strong><br />
workshops on cultural <strong>and</strong> business issues. Afterwards they are<br />
also assisted to take up internships lasting at least twelve weeks<br />
with a company or organisation in <strong>China</strong>.<br />
E u r o p e a n a n d C h i n e s e participants of<br />
METP may join the <strong>EU</strong>-<strong>China</strong> M a n a g e r s<br />
Association (<strong>EU</strong>CMA), an alumni<br />
a s s o c i a t i o n<br />
originally set up for the JMTP<br />
( E U - C h i n a<br />
Junior <strong>Managers</strong> <strong>Training</strong><br />
<strong>Programme</strong>).<br />
<strong>EU</strong>CMA offers its members<br />
f u r t h e r<br />
assistance <strong>and</strong> a wide variety<br />
of additional<br />
networking opportunities <strong>and</strong><br />
promotional<br />
e v e n t s t o c o n t i n u e t h e<br />
development<br />
of useful business contacts after<br />
the training.<br />
5
Fourth <strong>EU</strong>-<strong>China</strong><br />
Networking Day in Beijing<br />
On 5 February, the European METP 4 participants<br />
gathered at the Beijing Marriott Hotel for the fourth<br />
<strong>EU</strong>-<strong>China</strong> Networking Day. The purpose of the event<br />
was to discuss first experiences with the work placements that<br />
started in January, but also to meet their fellow Chinese METP<br />
4 participants who had just returned from their European programme<br />
legs, as well as with alumni from earlier intakes. All<br />
in all, more than 60 participants to the workshop joined in the<br />
discussions.<br />
An important focus of the workshop was to discuss work<br />
placement experiences. One month into the work placements,<br />
<strong>and</strong> with placement companies ranging from representative<br />
offices of <strong>EU</strong> companies to local CCPIT offices, this was a valuable<br />
opportunity to exchange the challenges <strong>and</strong> discoveries of<br />
working in a new environment. Perhaps as was to be expected,<br />
tackling the language barrier requires a lot of energy for those<br />
not yet fluent in Chinese. Treading carefully on the new ground<br />
of companies whose hierarchies <strong>and</strong> routines are yet unfamiliar<br />
proved to be a challenge for most: how to establish working <strong>and</strong><br />
social relationships, how to become part of information flows,<br />
<strong>and</strong> how to use the limited time in the company for a meaningful<br />
working <strong>and</strong> learning experience – those were the topics<br />
discussed during breakout sessions. As a number of Chinese participants<br />
<strong>and</strong> alumni also joined these discussions, an interesting<br />
6
exchange emerged on the respective “newbie” experiences in a<br />
Chinese versus a European work placement. It was encouraging<br />
to learn that none of the issues observed were perceived as true<br />
obstacles – the participants rather took them as a regular part of<br />
being newcomer trying to work his/her way into a new working<br />
environment.<br />
While the networking day was timed so as to provide<br />
ample opportunity to learn the first lessons from the workplace<br />
experience, it was also designed to provide additional<br />
input for the next steps of the participants' career: life after<br />
METP. Whether as manager or entrepreneur, in the <strong>EU</strong>-<br />
<strong>China</strong> context the creation of cross-cultural workforces <strong>and</strong><br />
the necessity of accommodating skill sets from very diverse<br />
cultural backgrounds will be something most METP participants<br />
face, whether as employer or as employee. To illustrate<br />
these challenges, <strong>and</strong> to provide some answers, the project<br />
invited practitioners from various fields to share their experience<br />
with working <strong>and</strong> doing business in <strong>China</strong>. Invited as<br />
keynote speaker for the morning session, Dominic Johnson-<br />
Hill introduced his strategy for becoming an entrepreneur in<br />
<strong>China</strong>. Not following textbook recommendations, but rather<br />
immersing himself fully into the Chinese environment <strong>and</strong><br />
a specific neighbourhood, he managed to establish his now<br />
famous “Plastered T-Shirt” br<strong>and</strong>, becoming a celebrity on the<br />
way. The afternoon session brought about practical advice on<br />
how to approach international team building <strong>and</strong> staff selection,<br />
introduced from the practitioners' side by Susie Bates,<br />
Vice-President for Recruitment at United Family Healthcare,<br />
a family of hospitals operating all over <strong>China</strong>’s East <strong>and</strong><br />
South. Offering the identification of appropriate <strong>and</strong> fitting<br />
c<strong>and</strong>idates for a wide range of sectors, how to systematically<br />
eliminate sources of error in the recruiting process by<br />
developing intelligent checks <strong>and</strong> systems, was introduced by<br />
Michael Maeder of Direct HR, a recruitment company specialised<br />
on identifying experts to be placed in <strong>China</strong>. The session<br />
was concluded by Adam Livermore, representing Dezan Shira<br />
& Associates, a company offering a variety of professional<br />
services aimed specifically at newcomers to the Chinese<br />
market. He introduced the Chinese Labour Tax Law <strong>and</strong> the<br />
practical implications for both employers <strong>and</strong> employees.<br />
Adam also shed more light on the importance of underst<strong>and</strong>ing<br />
the relevant HR legal environment when developing a<br />
business <strong>and</strong> staffing plan. Moderated by Dr. Thomas Hart of<br />
the METP, the experts also discussed the findings of the group<br />
sessions <strong>and</strong> provided direct feedback to the typical problems<br />
<strong>and</strong> challenges encountered during the first month of work by<br />
the participants.<br />
By allowing networking time between European <strong>and</strong> Chinese<br />
participants, also across intakes, the Networking Day was<br />
an important element of METP’s efforts to create sustainable<br />
relationships that will continue after the participants leave the<br />
programme. This Networking Day built on a similar event in<br />
August 2009, when METP 4 participants drew on the expertise<br />
of METP 3 graduates, <strong>and</strong> will be followed by another chance<br />
to pick up the findings of the then completed work placements<br />
on the day of the METP4 graduation in March 2010 during a<br />
dedicated workshop on the same topic.<br />
A networking dinner concluded the day <strong>and</strong> brought<br />
together nearly 100 METP participants <strong>and</strong> alumni in a casual<br />
atmosphere.<br />
7
Pre-selection <strong>and</strong> Selection<br />
of Applicants<br />
for METP 5<br />
T<br />
he application period for METP 5 ended on 7 January<br />
2010 <strong>and</strong> over 400 applications from European <strong>and</strong><br />
Chinese applicants were received by the METP Team,<br />
which marked an increase of twenty-five percent compared to<br />
the number of applications received for METP 4.<br />
All parts of each application were incorporated into METP's<br />
database: the personal data sheet, which contains all 'hard data' of<br />
each applicant, such as name, age, nationality, education, company<br />
contacts etc.; the curriculum vitae, a tool for the selection<br />
jurors to quickly have an overview of the person they meet; a<br />
letter of intent from a company agreeing to host the applicant as<br />
an intern in <strong>China</strong> or Europe respectively; <strong>and</strong>, most importantly,<br />
the description of the applicant's personal motivation for joining<br />
METP <strong>and</strong> the description of the project/business plan, which the<br />
applicant asks METP to support. METP's web-based application<br />
procedure has proven effective <strong>and</strong> convenient to use. That all<br />
8
326 408<br />
244<br />
56<br />
179<br />
68<br />
146<br />
87<br />
104<br />
110<br />
METP 1 METP 2 METP 3<br />
Total Applicants<br />
METP 4 METP 5<br />
Participants<br />
applications are submitted electronically <strong>and</strong> by using st<strong>and</strong>ardized<br />
forms, allows the METP Team in Beijing to process them<br />
within reasonable time in spite of the team's small size.<br />
The entire month of January was spent which the first of<br />
the two-tier selection process for METP, the pre-selection.<br />
During this pre-selection each application went through a<br />
st<strong>and</strong>ardized eligibility check <strong>and</strong>, if it passed, was thoroughly<br />
studied by at least two members of an independent jury of<br />
senior experts. By the end of January, just in time for the start<br />
of the Chinese New Year festivities, the pre-selection jury<br />
presented its conclusions: it recommended that 83 shortlisted<br />
Chinese c<strong>and</strong>idates <strong>and</strong> 91 shortlisted European c<strong>and</strong>idates<br />
should be invited to attend the second step of the selection,<br />
the interviews <strong>and</strong> assessment centre.<br />
All selection interviews were scheduled for February <strong>and</strong><br />
March 2010. They kicked off with interviews of all Chinese<br />
c<strong>and</strong>idates in Beijing over the course of three days. METP was<br />
able to financially support the travel <strong>and</strong> stay of the Chinese<br />
c<strong>and</strong>idates <strong>and</strong> they came from all over <strong>China</strong>. Each c<strong>and</strong>idate<br />
spent only a half day with the selection itself, which consisted<br />
of an individual interview <strong>and</strong> a group assessment <strong>and</strong> English<br />
language assessment. The individual interview provided<br />
the opportunity to discuss the c<strong>and</strong>idate's business plan <strong>and</strong><br />
motivation. The group assessment focused on the c<strong>and</strong>idate's<br />
interpersonal skills <strong>and</strong> his/her comm<strong>and</strong> of spoken English.<br />
European c<strong>and</strong>idates were interviewed in two locations:<br />
those already living in <strong>China</strong> were also interviewed in Beijing<br />
in the course of one specially arranged selection day, while<br />
all c<strong>and</strong>idates residing in Europe were invited to Frankfurt for<br />
their interviews over the course of four days. Also in the case<br />
of European c<strong>and</strong>idates, METP was able to financially support<br />
their travel <strong>and</strong> stay in Beijing or Frankfurt respectively,<br />
thereby guaranteeing that financial means of c<strong>and</strong>idates are<br />
not de facto selection criteria. European c<strong>and</strong>idates, as their<br />
Chinese colleagues, had the chance to present their motivation<br />
<strong>and</strong> their business plan in an individual interview <strong>and</strong><br />
participated in a group exercise to assess their interpersonal<br />
skills. In addition, METP's Chinese language instructors from<br />
the University of International Business <strong>and</strong> Economics in<br />
Beijing spent a few minutes with each European c<strong>and</strong>idate for<br />
a Chinese language aptitude test.<br />
An independent jury of seasoned experts conducted<br />
the selections in Europe <strong>and</strong> <strong>China</strong>. The team of ten jurors<br />
consisted of senior officials of the European Commission <strong>and</strong><br />
the Government of <strong>China</strong>, as well as Chinese <strong>and</strong> European<br />
academics <strong>and</strong> experts.<br />
Finally, of the over 400 applications received, 50 Chinese<br />
<strong>and</strong> 60 European c<strong>and</strong>idates were selected to join METP 5 on<br />
17 May 2010 in Beijing.<br />
9
<strong>China</strong> has performed exceptio<br />
Interview with economist <strong>and</strong> METP exp<br />
<strong>China</strong>’s economic policies during times<br />
Could you describe<br />
how <strong>China</strong><br />
has attempted to deal<br />
with the impact of the<br />
credit crisis that has<br />
swept across the globe<br />
in recent months?<br />
The onset of the<br />
credit crisis has<br />
brought about a frantic<br />
search for solutions.<br />
The problem assumed<br />
massive proportions in<br />
the United States <strong>and</strong> induced waves of economic instability to<br />
other countries including <strong>China</strong>. The United States unleashed<br />
a massive set of policy instruments with the explicit aim of<br />
regaining economic balance. Those stretched all the way from<br />
monetary <strong>and</strong> fiscal policy to trade <strong>and</strong> capital market instruments.<br />
Other countries in Europe, notably Germany, pursued<br />
the same track. <strong>China</strong> followed suit. Interest rates were reduced,<br />
government spending increased <strong>and</strong> export promotion initiatives<br />
enhanced. The measures looked identical but the outcome<br />
differed.<br />
What role did monetary policy play in <strong>China</strong>’s approach<br />
to the crisis?<br />
<strong>China</strong>’s central bank had cut interest rates several times<br />
since the onset of the crisis <strong>and</strong> the current PBC (base<br />
rate) is 5.31 %. <strong>China</strong>'s low interest rate did not result in<br />
a massive borrowing rush, though. An explanation could<br />
possibly be found in the Chinese attitude towards debt <strong>and</strong><br />
the fact that they are less likely to resort to debt to finance<br />
durable purchases. Total household debt stood at only 35% of<br />
disposable income in 2009. This is especially manifest in the<br />
property sector. Chinese property developers are less likely<br />
to borrow from banks to finance residential <strong>and</strong> commercial<br />
construction than their American counterparts. Culture seems<br />
to play a key role in the debt behaviour of consumers <strong>and</strong><br />
businesses in <strong>China</strong>.<br />
Fiscal policy instruments were also employed to combat<br />
the effects of the crisis in <strong>China</strong>. Were they effective?<br />
Both the United<br />
States <strong>and</strong> <strong>China</strong><br />
resorted to government<br />
spending as a measure<br />
to combat the imminent<br />
threat posed by the<br />
credit crisis. The impact<br />
<strong>and</strong> achieved results<br />
contrasted sharply. The<br />
United States government<br />
effort was rescueoriented.<br />
Financial<br />
intermediaries, financial<br />
instruments <strong>and</strong> even finance-related executives malfunctioned.<br />
The Chinese government approach was different. It was<br />
growth-oriented. A $586 billion economic stimulus package,<br />
the largest in the country's history, was introduced in 2009. It<br />
included an easing of credit restrictions, an expansion of social<br />
welfare services <strong>and</strong> an enhanced infrastructure construction<br />
drive. Several measures in the new stimulus program<br />
also aimed at specific segments of the Chinese population,<br />
especially those in the countryside, which are facing economic<br />
strain. Affordable housing <strong>and</strong> health care featured here.<br />
The Chinese economy responded to those measures <strong>and</strong><br />
released data shows that 2009 GDP growth amounted to 8.7%-<br />
10.7% in the last quarter of the year. The boost in government<br />
expenditure while instrumental in inducing growth will bring<br />
budget deficit to 4% of GDP.<br />
Did <strong>China</strong>’s trade policy stimulate exports in this situation?<br />
<strong>China</strong>’s trade policy measures were direct <strong>and</strong> clear<br />
in objectives. Exports had to maintain a “life saving”<br />
level in order to avoid a radical contraction of proceeds <strong>and</strong><br />
an ominous rise in unemployment. The economic recovery<br />
programme contained, therefore, strong export promotion<br />
measures. Those included a stimulation of export of<br />
indigenous br<strong>and</strong>s; a rise in export tax rebates, a degree<br />
of stability in RMB exchange rate <strong>and</strong> the introduction of<br />
experimental Yuan settlement measures. <strong>China</strong>'s export<br />
volume grew by a near 15% in 2009 thanks to the measures<br />
10
nally well<br />
ert Prof. M.S.S. El Namaki on<br />
of crisis.<br />
low consumption <strong>and</strong> seemingly undervalued exchange rate<br />
to excessive bank lending <strong>and</strong> oscillating property <strong>and</strong> equity<br />
markets. And all of that during what is likely to be an economic<br />
stimulus withdrawal phase. A premature stimulus withdrawal<br />
could undermine the ongoing recovery while a renewed stimulus<br />
could trigger inflationary forces <strong>and</strong> asset price escalation.<br />
Therefore, critical decisions are undoubtedly awaiting the decision<br />
makers down the road.<br />
<strong>and</strong> despite the global economic downturn. In contrast,<br />
United States exports fell by 15% <strong>and</strong> imports declined by<br />
23% during same period. The external orientation of the<br />
Chinese economy drives economic policy even in times of<br />
crisis.<br />
To summarize, three forces have contributed to <strong>China</strong>’s<br />
exceptional performance: deeply rooted cultural forces that<br />
play a key role in debt behaviour of both consumer <strong>and</strong> businesses;<br />
the planning roots, both strategic <strong>and</strong> operational,<br />
of government functions in <strong>China</strong> seem to play a key role in<br />
government decision making; <strong>and</strong> finally, the external orientation<br />
of the Chinese economy continues to drive economic<br />
policy.<br />
Your assessment of <strong>China</strong>’s policies is quite positive. Will<br />
this positive development continue in the future?<br />
<strong>China</strong> has performed exceptionally well. However, for<br />
<strong>China</strong>’s economic growth to continue, <strong>China</strong> has to<br />
deal with numerous constraints ranging from high savings,<br />
Prof. El Namaki is retired dean<br />
of MSM (Netherl<strong>and</strong>s), President<br />
of Drucker Gulf (UAE), Dean of<br />
Victoria University (Switzerl<strong>and</strong>)<br />
<strong>and</strong> adjunct professor at several<br />
Chinese universities. He<br />
consults for the WB, the<br />
<strong>EU</strong> <strong>and</strong> several multinationals.<br />
His latest<br />
publications include<br />
“Cultural roots of the<br />
credit crisis” <strong>and</strong><br />
“Credit Crisis: Leaders<br />
who failed the<br />
Drucker test”.<br />
11
UCMA<br />
<strong>EU</strong>CMA<br />
<strong>EU</strong>CM<br />
Letter from the President<br />
Aless<strong>and</strong>ro Celestino<br />
<strong>EU</strong>CMA President<br />
Dear <strong>EU</strong>CMA members <strong>and</strong> readers,<br />
I am much honored to have been confirmed <strong>EU</strong>CMA President<br />
2010. This gives me great encouragement to continue the work for<br />
a stronger <strong>EU</strong>CMA.<br />
First of all <strong>and</strong> on behalf of the newly elected <strong>EU</strong>CMA Board,<br />
I would like to thank all the members who took part in the recent<br />
elections for their enthusiastic participation, which is a clear sign<br />
that we all seek the best from our Association.<br />
2010 is a very important year for <strong>EU</strong>CMA since the <strong>EU</strong><br />
grant will come to an end <strong>and</strong> we will have to reach the financial<br />
sustainability in order to keep our network running. Also this year<br />
new members will join our Association with fresh ideas <strong>and</strong> new<br />
energy, contributing to strengthen the success of our activities <strong>and</strong><br />
events.<br />
Maintaining such a large network, spread in different provinces<br />
<strong>and</strong> countries is a continuous challenge. Major efforts will be<br />
devoted to strengthen the online community through a completely<br />
new website <strong>and</strong> updated members’ data base. To this aim, we<br />
are preparing the first <strong>EU</strong>CMA census: a survey of all the members,<br />
their professional profiles <strong>and</strong> interests, wishes <strong>and</strong> expectations for<br />
the Association.<br />
More networking occasions <strong>and</strong> business encounters are<br />
planned throughout the year, also aimed at building a high-profile<br />
image for the Association <strong>and</strong> attracting new sponsorships <strong>and</strong><br />
partners. The 9th Charity Gala Dinner in Beijing next June, the<br />
Activities Program for the World Expo in Shanghai (June-July), the<br />
2nd European networking in July, the 2nd <strong>EU</strong>CMA Photo Contest<br />
<strong>and</strong> Exhibition in December are the main appointments, but further<br />
local events <strong>and</strong> informal get-together will take place all year<br />
round.<br />
The fruitful cooperation with the European Commission, the<br />
CCPIT <strong>and</strong> the METP Team remains a key factor for our development,<br />
as long as the newly established partnerships with the <strong>EU</strong><br />
Chamber of Commerce <strong>and</strong> the CEIBS. I’m confident we will be able<br />
to further develop this enlarged network into new concrete business<br />
opportunities.<br />
Still, our main resources are <strong>EU</strong>CMA members. So if you<br />
see this might be a chance for you, join us with your ideas <strong>and</strong><br />
skills!<br />
Photo Contest “Impressions”<br />
Award Ceremony 2009<br />
December 11th, 2009, Beijing. The <strong>EU</strong>CMA Photo Contest<br />
“Impressions” Award Ceremony gathered more than 100 members<br />
<strong>and</strong> friends in a 600 year-old temple under the name Contempio<br />
Temple Bar, hidden in one of the Beijing oldest hutongs. Through<br />
the years this temple served different purposes. During the Cultural<br />
Revolution it was used as a factory for machinery parts, later on<br />
it served as a dorm for 200 workers <strong>and</strong> nowadays, completely<br />
renovated, it is used as a theatre <strong>and</strong> exhibition venue, chosen also<br />
to host the 2009 <strong>EU</strong>CMA photo exhibition “City Life”.<br />
A large number of <strong>EU</strong>CMA members participated in the<br />
competition with their author works, however only the best 50 photos<br />
were selected by an independant jury. The first prize went to “Cross<br />
Generation Amazement” by Philippe Comolet-Tirmon, METP3, the<br />
second <strong>and</strong> third prizes for “The Only Way to Mona Lisa” by Han<br />
Qiang, METP2, <strong>and</strong> “Chinese siesta” by Aurelija Kvietkauskait,<br />
METP4, respectively.<br />
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The event featured several artists on stage who played<br />
music composed especially for the event: Fan Qi performed on<br />
xylophone, Edu Bertr<strong>and</strong> (METP4) with his boys staged a breakdance<br />
act <strong>and</strong> DJ Kraus played until late at night. As confessed<br />
by the invitees, it was the most culminate event of all for <strong>EU</strong>CMA<br />
for the last year. In the evening a few hundred postcard prints<br />
with the 50 selected photos were sold.<br />
For those who missed this spectacular event they will<br />
have another chance to have a look at the 2009 photo<br />
collection “City Life” at its next exhibition at the <strong>EU</strong> Pavilion<br />
during the World Expo 2010 in Shanghai. As earlier announced<br />
“City Life” is the first of series photo contests to<br />
be held under the general name “Impressions”. The second<br />
edition is planned to be launched in June 2010. For more<br />
info please check at www.eucma.org.<br />
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UCMA<br />
<strong>EU</strong>CMA<br />
<strong>EU</strong>CM<br />
<strong>EU</strong>CMA Elections 2010<br />
January 19th, 2010, Beijing. The Annual General Meeting took place at the EC Delegation premises in Beijing where<br />
the new <strong>EU</strong>CMA Board was elected. The participation of <strong>EU</strong>CMA members in the election activity 2010 was 48%! Mr.<br />
Aless<strong>and</strong>ro Celestino was re-elected as the President of the Association for a second consecutive year, Mr. Lin Jun was also<br />
reconfirmed for a second time. The other Board members were newly elected: Mr. Ma Zhongqiang, Ms. Mira Lioleva <strong>and</strong> Mr.<br />
Filippo Leddi.<br />
New Board presentation<br />
Aless<strong>and</strong>ro Celestino (METP1)<br />
President<br />
Majored in International Cultural<br />
Management, since 2008 till present Mr.<br />
Celestino holds the position of project<br />
supervisor of the Sino-Italian Cooperation<br />
<strong>Programme</strong> for Environmental Protection.<br />
He has many years experience in <strong>EU</strong><br />
Funding Projects, research <strong>and</strong> demonstration<br />
projects in the field of environmental<br />
protection <strong>and</strong> sustainable development,<br />
with special focus on renewable energy<br />
<strong>and</strong> CDM projects under the Kyoto Protocol.<br />
His main efforts in 2010 will be focused<br />
on establishing <strong>EU</strong>CMA desk in Beijing <strong>and</strong><br />
working on an exit strategy plan from <strong>EU</strong><br />
grants. He will continue to work for the<br />
development of the internal communication,<br />
networking activities <strong>and</strong> the success of the<br />
2010 <strong>EU</strong>CMA Charity event.<br />
Mr. Ma Zhongqiang (METP4)<br />
Board Member<br />
Graduate in Foreign Affairs Management,<br />
Mr. Ma has many years experience in<br />
the field of foreign investment, international<br />
trade <strong>and</strong> Sino-foreign economic relations.<br />
His motivation for joining the Board is to<br />
boost the <strong>EU</strong>-<strong>China</strong> member communication<br />
<strong>and</strong> cooperation in the field of bilateral<br />
investment <strong>and</strong> trade, as well as cultural<br />
<strong>and</strong> educational exchange.<br />
Ms. Mira Lioleva (METP3)<br />
Board Member<br />
A professional with eight years experience<br />
in the International Shipping Industry<br />
Ms. Lioleva is well affiliated with the trade<br />
markets in <strong>China</strong>, Far East, South East<br />
Asia, <strong>and</strong> others. Her vision is to enhance<br />
the long term communication among the<br />
members through developing existing<br />
channels, such as website <strong>and</strong> newsletter,<br />
as well as through business networking <strong>and</strong><br />
matchmaking events planning. She will also<br />
work for exp<strong>and</strong>ing the <strong>EU</strong>CMA membership<br />
with participants from other <strong>EU</strong>-funded<br />
<strong>Programme</strong>s.<br />
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<strong>EU</strong>CMA<br />
<strong>EU</strong>CMA exp<strong>and</strong>s<br />
its activities<br />
throughout <strong>China</strong><br />
Mr. Filippo Leddi (METP4)<br />
Board Member<br />
Presently completing its work exchange placement as<br />
part of METP, Mr. Leddi is majored in Science <strong>and</strong> Technology<br />
of Communications <strong>and</strong> has experience in Marketing<br />
<strong>and</strong> Export Management at Italian Companies. He will<br />
work for the strengthening of <strong>EU</strong>CMA business network<br />
platform <strong>and</strong> its expansion in other cities in <strong>China</strong>, apart<br />
from Beijing.<br />
Mr. Lin Jun (METP1)<br />
Board Member<br />
Master in Maritime Law, Lin Jun has many years<br />
experience in the international shipping industry <strong>and</strong> management.<br />
Since 1997 till now he is heading Freight Care<br />
Marine Service Co., Ltd. located in Shanghai. Re-elected<br />
for second consecutive year Mr. Lin is consistent in his vision<br />
to promote <strong>EU</strong>CMA in <strong>China</strong> on national <strong>and</strong> regional level<br />
by organizing events <strong>and</strong> provide assistance to members,<br />
who work or visit Shanghai <strong>and</strong> the area.<br />
December 12th, 2009, Shenzhen, Several <strong>EU</strong>CMA Chinese<br />
<strong>and</strong> European members got together at a friendly luncheon in<br />
Bense Bar at Overseas Chinese Town Square in Shenzhen to know<br />
each other in person, to exchange interesting ideas <strong>and</strong> to plan<br />
for the future development <strong>and</strong> expansion of <strong>EU</strong>CMA locally. Mr.<br />
Li Jun (METP1), Ms. Mira Lioleva (METP3) <strong>and</strong> Mr. Sun Shengwang<br />
(METP2) met in this informal frame <strong>and</strong> spent time discussing opportunities<br />
in Shenzhen <strong>and</strong> discuss the future development of the<br />
Association in the PRD area. Though few in number the people at<br />
the meeting representing different METP intakes was a clear expression<br />
of good will for future communication <strong>and</strong> common work<br />
in making the <strong>EU</strong>CMA business networking platform in Pearl River<br />
Delta stronger <strong>and</strong> more active. The idea is to spread the <strong>EU</strong>CMA<br />
meetings in other cities in <strong>China</strong> where there are <strong>EU</strong>CMA members<br />
<strong>and</strong> to encourage them to meet on a regular basis.<br />
January 22nd, 2010, Qingdao, The newly elected board<br />
member, the METP4 participant Ma Zhongqiang met his European<br />
colleagues in Qingdao. Mrs. Esther Janssen, the Managing Director of<br />
Culture-Inc, who is having her work exchange placement at Qingdao<br />
Tianrui Garments Making Co, Ltd <strong>and</strong> is in charge of preparing a<br />
strategic plan for the company to adapt to the challenges to be met<br />
going internationally. The meeting joined also Mr. Pere Torrens from<br />
Spain in charge of the financial department of Befesa CTA Qingdao<br />
S.L., the company that conveys the largest desalination project in<br />
<strong>China</strong>, as well as Mr. Michael Tunbjer from Sweden, who is a sales<br />
manager in one of the largest freight forwarding companies globally<br />
- DB Schenker. Mr. Xu Zhiqing, the president of Bank of Communication,<br />
Qingdao EDZ Branch was also invited to join the gathering. Mr.<br />
Xu introduced to the <strong>EU</strong>CMA members the current economic environment<br />
in <strong>China</strong> <strong>and</strong> the new policies taking place regarding finance<br />
<strong>and</strong> investment. All of them were very interested in meeting the other<br />
<strong>EU</strong>CMA members<br />
in the city <strong>and</strong> to<br />
build closer relationship,<br />
to share<br />
information about<br />
the business development<br />
between<br />
<strong>China</strong> <strong>and</strong> Europe<br />
<strong>and</strong> all expressed<br />
willingness to meet<br />
soon again.<br />
15
UCMA<br />
<strong>EU</strong>CMA<br />
<strong>EU</strong>CM<br />
them.<br />
I would recommend to anyone willing to start a business in<br />
<strong>China</strong> to learn Chinese <strong>and</strong> I think that an exchange program like<br />
the METP (www.metp.net.cn) represents a great opportunity to get<br />
familiarized with the language, the business practices <strong>and</strong> to be<br />
part of a strong alumni network, organized under the name “<strong>EU</strong>-<br />
<strong>China</strong> <strong>Managers</strong> Association” (www.eucma.org ).<br />
How has the <strong>EU</strong>-<strong>China</strong> Junior Manager <strong>Training</strong> <strong>Programme</strong><br />
helped you in your career progression?<br />
More than a technical background, what I gained from the<br />
<strong>EU</strong>-<strong>China</strong> Junior Manager <strong>Training</strong> <strong>Programme</strong> is definitely a<br />
mindset; it is the capacity to learn quickly <strong>and</strong> to adapt myself to<br />
fast changing environment. And this is essential for any manager in<br />
<strong>China</strong>!<br />
With <strong>China</strong>’s increasing prominence in global business, are<br />
companies from the west making more of an effort to acclimatise<br />
their operations there with the local culture?<br />
I think that most foreign companies approach <strong>China</strong> with analytical<br />
<strong>and</strong> management tools which have not been adapted<br />
to the local reality. It is not possible to do business in this country<br />
without trying to underst<strong>and</strong> your interlocutor in his own context<br />
<strong>and</strong> adapting the way you approach problems <strong>and</strong> seek to resolve<br />
them (instead of hoping that the Chinese will adapt their own aplnterview<br />
with Beniot Ams about his new book<br />
“Doing Business in <strong>China</strong> –<br />
a Practical Approach”<br />
by Mira Lioleva<br />
Your book “Doing Business in <strong>China</strong> – A Practical Approach”<br />
has just been published at the end of 2009. What is it mainly<br />
about?<br />
The main subject of my book is the difficulty entering <strong>and</strong><br />
dealing with a reality so different from our own. I am surprised<br />
today to see how badly prepared many western business<br />
people are for <strong>China</strong> <strong>and</strong> the problems they are likely to face in<br />
this market, particularly in the interpretation of information, in the<br />
field of negotiation, human resources management <strong>and</strong> the whole<br />
area of crisis management. The evidence is that poor preparation,<br />
the lack of resources <strong>and</strong> the absence of cultural sensitivity are<br />
the main causes of project failures in <strong>China</strong>. Once again, success in<br />
<strong>China</strong> depends above all on the ability to decode <strong>and</strong> to manage<br />
a business environment which is rapidly changing, <strong>and</strong> radically<br />
different from our own.<br />
What would you suggest to anyone who would like to start a<br />
business in <strong>China</strong>? Where to start?<br />
If everything is still possible in <strong>China</strong> today, nothing is simple<br />
<strong>and</strong> it is essential to be properly prepared for the “Chinese<br />
adventure”, in order to maximize its chances of success. I do not<br />
want to dissuade young people from starting a business in <strong>China</strong>,<br />
but it is not possible to do business in this part of the world without<br />
adapting the way you approach problems <strong>and</strong> seek to resolve<br />
16
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proach).<br />
If everything is possible in <strong>China</strong>, it is essential to be properly<br />
prepared for the “Chinese adventure”, in order to maximize its<br />
chances of success.<br />
It is naive to assume that “the professional world is governed<br />
by Anglo-Saxon management, <strong>and</strong> the Chinese will end up adapting”,<br />
as one of my European customers suggested to me during our<br />
first meeting. The development of his operations in <strong>China</strong> would<br />
later prove him wrong. It is thus important to put in place a true system<br />
of intercultural management in order to optimize the chances<br />
of success in this ancient country.<br />
Far be it from me to seek to discourage or dissuade western<br />
companies from entering <strong>China</strong>. On the contrary, I believe deeply<br />
in the development of <strong>China</strong> <strong>and</strong>, for this reason, I wish to make<br />
European companies aware of the need to approach this country<br />
armed with appropriate tools <strong>and</strong> thinking processes. As the<br />
Chinese saying goes: “victorious troops begin by conquering <strong>and</strong><br />
seek later to engage in combat, whereas defeated troops start by<br />
engaging in combat, <strong>and</strong> then seek victory”<br />
What kind of questions are you asked when training <strong>and</strong><br />
consulting leaders, both Chinese <strong>and</strong> Western? What are<br />
their biggest concerns <strong>and</strong> what are the most frequent mistakes<br />
they make?<br />
Most of the problems that my clients face in <strong>China</strong> are<br />
directly or indirectly related to a cross cultural management<br />
issue. The most frequently met are about:<br />
• The difficulty for western decision-makers to access (<strong>and</strong><br />
decipher) market information. “If all the Chinese drank a bottle of<br />
wine per year...’ A lot of people who come to <strong>China</strong> plan this way,”<br />
an importer from the Shanghai region told me with a smile, before<br />
adding that “a large number of failures are due to the overestimation<br />
of the size of the market, but also an underestimation of the<br />
<strong>EU</strong>CMA<br />
competition from local businesses in their own market.”<br />
• The difficulty of setting up <strong>and</strong> managing relations with a<br />
local partner.<br />
• The difficulty of optimizing operational structures, exacerbated<br />
by administrative complexities.<br />
• The difficulty of organizing <strong>and</strong> managing local teams.<br />
How can communicator best be sensitized to cross-cultural<br />
issues?<br />
Have you ever heard about the “three yes of communication<br />
in <strong>China</strong>”? Well, for Westerners, the 'yes' is an agreement,<br />
unequivocal adherence to what has been said, while in <strong>China</strong>, there<br />
are three forms of "yes" - "yes, I underst<strong>and</strong>”, “yes, it is possible”,<br />
<strong>and</strong> “yes, I will do”… Everything comes to underst<strong>and</strong> what your<br />
interlocutor wanted to say....<br />
What role, positive or negative, can stereotypes play in<br />
underst<strong>and</strong>ing foreign colleagues?<br />
I like to start my seminars with stereotypes definition. How<br />
do we perceive ‘the other” <strong>and</strong> how do we think we are<br />
perceived by “the other”. Now, the whole idea is to be able to<br />
break the stereotypes <strong>and</strong> to adjust the way we interact with<br />
the others according to the way we are perceived by the others.<br />
For example, European managers are often considered by their<br />
Chinese colleagues to be vague in the instructions they give to<br />
their employees. So, as a European manager you will probably<br />
need to pay careful attention to this point <strong>and</strong> communicate<br />
using tools which enable strong <strong>and</strong> very clear messages to be<br />
conveyed.<br />
A must-read for business professionals you would like to<br />
recommend?<br />
The Art of War by Sun Tzu is one of the oldest (it has been written<br />
in the 6th century BC) <strong>and</strong> best ever written books on strategy <strong>and</strong><br />
is still a must read for anyone interested in doing business in <strong>China</strong>.<br />
About the Author<br />
Benoit D.G. Ams is an alumnus of the <strong>EU</strong>-<strong>China</strong> Junior<br />
Manager <strong>Training</strong> <strong>Programme</strong> 4B intake held in 2001-<br />
2002. As an independent expert in international marketing<br />
helping SMEs in their export strategy he conducted numerous<br />
business development projects in Europe <strong>and</strong> Asia <strong>and</strong><br />
was honoured with the title “Specialist in Foreign Trade”<br />
by the Wallon Export Agency. During his assignment in the<br />
Belgian Foreign Trade Board (OBCE) he was awarded with<br />
the title “Laureate of the Prize of the Ministry of Foreign<br />
Trade”. Mr. Ams is also the founder of New Step International<br />
Limited in Hong-Kong where he has over eight years<br />
of consulting, training <strong>and</strong> leadership experience in <strong>China</strong><br />
<strong>and</strong> in Hong Kong. His book titled “Doing Business in<br />
<strong>China</strong> - a Practical Approach” (Management Books 2000,<br />
2009) has just been published.<br />
17
UCMA<br />
<strong>EU</strong>CMA<br />
<strong>EU</strong>CM<br />
Making<br />
Energy<br />
Efficiency<br />
Pay Off<br />
By Tristan Edmondson<br />
Consider this: to produce one unit of GDP, <strong>China</strong> uses an<br />
amount of energy two-<strong>and</strong>-a-half times the world average.<br />
This places energy efficiency as a key priority for <strong>China</strong>, both<br />
in simple bottom-line <strong>and</strong> environmental terms. It also creates great<br />
opportunities for market-based solutions.<br />
Energy Service Companies (ESCOs) st<strong>and</strong> to benefit from<br />
<strong>China</strong>'s increasing focus on the environment. ESCOs install energysaving<br />
technologies <strong>and</strong> methodologies primarily in factories for<br />
free <strong>and</strong> then share the resulting savings with the customer, thereby<br />
paying off the capital investment. <strong>China</strong>'s ESCO market has been<br />
largely initiated by international development institutions, mainly<br />
the World Bank <strong>and</strong> its commercial arm, the International Finance<br />
Corporation.<br />
A clear example of an ESCO project was undertaken by<br />
Honeywell at Asahi's Shenzhen brewery. Energy saving methods,<br />
including upgrades to heat recovery, cooling <strong>and</strong> control systems,<br />
<strong>and</strong> the resulting energy savings, are shared between Honeywell<br />
<strong>and</strong> Asahi. After the energy performance contract expires Asahi<br />
will continue to enjoy reduced energy bills at no cost.<br />
Despite some successes, <strong>China</strong>'s ESCO market is now at a<br />
critical moment. There are a tremendous number of energy inefficiencies<br />
<strong>and</strong> a large pool of waiting capital, but there are also<br />
serious challenges.<br />
Dr. Stephane Gr<strong>and</strong>, managing partner at SJ Gr<strong>and</strong>, a<br />
financial advisory firm, is a fan of the ESCO model. “<strong>China</strong>'s growing<br />
ESCO sector is a fascinating industry, not just because of the<br />
commercial opportunities, but because of the many economic, legal,<br />
technology <strong>and</strong> policy issues that impact the industry's development.<br />
Every ESCO project is a real test of whether <strong>China</strong>'s legal<br />
structures can st<strong>and</strong> up to such complex contracting. Whereas the<br />
market seems extremely promising, the structural issues can be<br />
daunting for a foreign player.”<br />
The key question is whether <strong>China</strong>'s ESCO market can move<br />
beyond reliance on financial <strong>and</strong> technical assistance from development<br />
institutions <strong>and</strong> become a fully-functioning, organic <strong>and</strong> selfperpetuating<br />
industry.<br />
18
A<br />
<strong>EU</strong>CMA<br />
<strong>EU</strong>CMA<br />
The engineering technology firm ABB has an ESCO practice in<br />
Beijing which conducted a pilot ESCO project for a paper mill. “We<br />
focused on introducing a systematic energy strategy, carrying out<br />
on-site work flow <strong>and</strong> energy analysis, from which we produced a<br />
feasibility study <strong>and</strong> recommendations for reducing energy use,”<br />
says Jiang Haibo, country service manager <strong>and</strong> vice president for<br />
ABB <strong>China</strong>.<br />
ABB's project is a flagship installation to help build its ESCO<br />
practice in <strong>China</strong>. Yet, while international engineering firms such as<br />
Honeywell <strong>and</strong> ABB have been carrying out ESCO projects in <strong>China</strong><br />
for some time, there is now a growing domestic industry.<br />
Dongying Shengdong EMC (DSE) is an ESCO that installs electricity-producing<br />
boilers that burn waste gases such as coal mine<br />
methane or waste gas from coking plants. Clients provide waste gas<br />
to act as a feedstock, <strong>and</strong> buy the on-site electricity from DSE at a<br />
lower cost than grid electricity. Revenue-sharing arrangements, usually<br />
lasting 10 years, enable DSE to recoup its capital in about two<br />
years, <strong>and</strong> then maintain a profitable operation <strong>and</strong> maintenance<br />
relationship for the remainder of the contract.<br />
The biggest problem for ESCOs doing business in <strong>China</strong>,<br />
however, is getting hold of the capital to carry out an energy efficiency<br />
project. The size of typical ESCO loans is often too small to<br />
be worthwhile to Chinese banks; loan amounts usually range from<br />
USD 1 million to 6 million, which is much smaller than the large<br />
infrastructure projects <strong>and</strong> production expansion loans that loan<br />
officers typically appraise. Instead, ESCOs must lend their own<br />
money, or find investment funds elsewhere, which is often difficult<br />
for smaller Chinese firms with limited financial expertise.<br />
Stephane Gr<strong>and</strong> places an emphasis on international collaboration<br />
to stimulate <strong>China</strong>'s ESCO market. “The potential in <strong>China</strong>'s<br />
energy efficient market is large but in need of partnership from<br />
overseas firms who can introduce both technology <strong>and</strong> funding,” he<br />
says. Gr<strong>and</strong> focuses on the industrial sector, “such as the overhaul<br />
of existing equipment like boilers <strong>and</strong> mechanical <strong>and</strong> electrical<br />
systems.” He warns, however, that projects must be “pooled together<br />
to make them attractive to investors.”<br />
Development institutions have sought to make the Chinese<br />
ESCO industry attractive to investors through loan guarantees,<br />
financial <strong>and</strong> technical assistance to banks <strong>and</strong> ESCO companies,<br />
<strong>EU</strong>CMA<br />
as well as helping to bundle up ESCO projects to reduce loan<br />
transaction costs. A USD 200 million World Bank loan together<br />
with a USD 13 million Global Environment Facility grant is the<br />
basis for a program to train Chinese banks for ESCO lending <strong>and</strong><br />
partly guarantee ESCO loans. In addition, a joint effort between<br />
the US Environmental Protection Agency <strong>and</strong> the Chinese State Environmental<br />
Protection Administration is helping Hong Kong-based<br />
ESCOs pursue opportunities in the Chinese mainl<strong>and</strong> through loan<br />
guarantees from the Asian Development Bank. The International<br />
Finance Corporation manages a fund that guarantees non-stateowned<br />
Chinese banks that they will not lose more than 25% of their<br />
loans for the first ESCO projects.<br />
However, despite the considerable work done by these institutions,<br />
<strong>China</strong>'s ESCO industry is still worth fewer than USD 1 billion<br />
dollars a year.<br />
One Chinese manager for an international company, who<br />
asked to remain anonymous, expressed doubt about whether the<br />
traditional ESCO model was the right one for <strong>China</strong>. “Chinese<br />
companies have had their expectations raised to the wrong level.<br />
They want an ESCO company to come along with the money <strong>and</strong><br />
technology in h<strong>and</strong>, wave a magic w<strong>and</strong> <strong>and</strong> save energy. In any<br />
country, an ESCO project needs a serious investment of time <strong>and</strong><br />
effort from the customer, but in <strong>China</strong>, with all the cultural <strong>and</strong><br />
structural barriers in place, customers must work twice as hard.” His<br />
suggestion is that <strong>China</strong> needs a localized model. “Customers could<br />
offer to guarantee loans, or partially finance ESCO projects themselves,”<br />
he says. “ESCOs need to have worked with the company<br />
before to build underst<strong>and</strong>ing <strong>and</strong> strong trust before attempting a<br />
full-service ESCO project.”<br />
<strong>China</strong>'s ESCO market is a useful proxy for <strong>China</strong>'s economic<br />
development. Whether it will take off depends on the extent to<br />
which <strong>China</strong> can develop sophisticated market institutions <strong>and</strong><br />
capabilities; whether Chinese companies can capture the fullservice<br />
capabilities of their American <strong>and</strong> European counterparts;<br />
<strong>and</strong> whether ESCOs can adjust their contracting methodologies for<br />
the Chinese market. To a large extent, the likelihood that <strong>China</strong><br />
can develop from a low-cost manufacturing economy to a high<br />
technology <strong>and</strong> knowledge-based economy depends on many of<br />
these same factors.<br />
Tristan Edmondson graduated from London School of Economics<br />
<strong>and</strong> Political Science. He is an entrepreneur with a background<br />
in international business, especially in <strong>China</strong>. His work experience<br />
has leant towards project management, research <strong>and</strong> sales<br />
where he has developed his communication skills. Currently Mr.<br />
Edmondson is a partner at Mint Research, a Beijing-based clean<br />
technology consultancy <strong>and</strong> works on projects including a market<br />
report on <strong>China</strong>'s Energy Service Company (ESCO) industry, a<br />
feasibility study for a solar farm <strong>and</strong> a CDM benchmark database<br />
project. (www.mintresearch.cn).<br />
Tristan Edmondson<br />
METP 3<br />
19
Chinese Experiences in Europe<br />
On the following pages we introduce three Chinese participants in METP 3. Deng Weihua, Sun Yang<br />
<strong>and</strong> Zhu Weiping have rather different backgrounds <strong>and</strong> utilized their participation in METP in different<br />
ways. The following are summaries of the reports these three participants on their internships in<br />
Europe. The full reports were selected for publication by METP’s consortium of European business<br />
schools <strong>and</strong> the <strong>EU</strong> Delegation in Beijing <strong>and</strong> can be found on the METP website.<br />
Deng Weihua<br />
D<br />
eng Weihua hails from Beijing<br />
<strong>and</strong> joined METP 3 at the age<br />
of 38. Her sending company<br />
is Beijing Hyde Communication &<br />
Technology Co. Ltd. (Hyde), an<br />
international training company with<br />
headquarters in Beijing, a branch in<br />
Shanxi province <strong>and</strong> a representative<br />
office in the United Kingdom. The<br />
company has designed <strong>and</strong> implemented<br />
training programmes for more than<br />
1,500 Chinese managers in the past ten<br />
years, offering professional training<br />
courses to senior officials of central<br />
<strong>and</strong> local governments <strong>and</strong> managers<br />
from state-owned enterprises in <strong>China</strong>.<br />
The training subjects cover a wide field<br />
including Human Resources Management,<br />
Public Finance, Reform in State<br />
Development <strong>and</strong> Investment, Statistics,<br />
Taxation Reform, Road Transport<br />
Management, Education, Healthcare,<br />
Insurance, <strong>and</strong> many others.<br />
Deng Weihua spent several weeks<br />
at Northumbria University in Newcastle<br />
Upon Tyne, United Kingdom, which<br />
is the British partner of her sending<br />
company. Northumbria University<br />
has strong links with industry <strong>and</strong><br />
academia. The hosting department for<br />
her internship was Northumbria Commercial<br />
Enterprises (NCE), which is<br />
the commercial arm of Northumbria<br />
University. Relations between Hyde in<br />
<strong>China</strong> <strong>and</strong> Northumbria University include<br />
are such that Hyde determines the<br />
20
Chinese Experiences in Europe<br />
objectives of the training courses which<br />
are then delivered by the university;<br />
Northumbria University, in turn, carries<br />
out the training plan <strong>and</strong> provides the<br />
courses. When Chinese officials arrive<br />
in Newcastle Upon Tyne, Hyde provides<br />
services including accommodation,<br />
food, transport, communication, insurance,<br />
flight tickets, etc.<br />
According to Deng Weihua, the<br />
contribution of Northumbria University<br />
is quite an important one because it<br />
brings experience in providing practical,<br />
relevant <strong>and</strong> innovative solutions<br />
to industry, commerce <strong>and</strong> the public<br />
sector. It offers a wide range of problem<br />
solving <strong>and</strong> knowledge support<br />
tools for business, including consultancy,<br />
applied research <strong>and</strong> customized<br />
training <strong>and</strong> development, short course<br />
training <strong>and</strong> development for managers<br />
<strong>and</strong> staff.<br />
In her report, Deng Weihua writes<br />
that the main aim of her internship was<br />
to promote <strong>and</strong> further develop the<br />
relationship between her company <strong>and</strong><br />
the university by helping to reach a longterm<br />
contract. This job proved to be<br />
challenging but she was able cope with<br />
the difficulties.<br />
In addition to the main objective<br />
of her internship, Deng Weihua soon<br />
understood that she could benefit from<br />
the everyday experience of seeing<br />
how similar problems were tackled in<br />
different ways, <strong>and</strong> of implementing<br />
the new ideas that she had learned in<br />
the courses provided by METP, in particular<br />
Human Resource 360 Degree<br />
evaluation structure, risk management<br />
<strong>and</strong> strategy analysis. According to<br />
Deng Weihua, “My experiences prove<br />
the ideas we were taught at METP<br />
were interesting <strong>and</strong> both my sending<br />
company <strong>and</strong> host company benefited<br />
from them.”<br />
S<br />
un Yang, 33, lives <strong>and</strong> works in<br />
Nanjing. After graduating from<br />
university, he began to work for<br />
the state tax bureau <strong>and</strong> later for a tax<br />
agent office, engaging in taxation <strong>and</strong><br />
commercial service work. Among his<br />
duties he has to provide consultation<br />
for customers to help them comply with<br />
tax laws, offering the most appropriate<br />
taxation practices for each customer. Sun<br />
Yang joined METP <strong>and</strong> carried out his<br />
internship in Cologne, Germany from<br />
23 February to 9 April 2009 at IHDE<br />
& Partner, a medium-sized nationwide<br />
law firm in Germany that specializes<br />
in the provision of legal advice to high<br />
technology <strong>and</strong> media companies. The<br />
firm has nearly 30 employees in Berlin<br />
<strong>and</strong> Cologne, six of whom are partners.<br />
The internship was divided into two<br />
stages. In the first stage Sun Yang spent<br />
six weeks in the Cologne office, while the<br />
last week was spent at the Berlin office.<br />
Many of Sun Yang’s customers are foreign<br />
enterprises that invested in <strong>China</strong>. Most<br />
of them knew little about Chinese laws<br />
<strong>and</strong> regulations on taxation <strong>and</strong> finance<br />
issues. Normally they paid more attention<br />
to the markets, production, research <strong>and</strong><br />
development, management <strong>and</strong> financing<br />
Sun Yang<br />
21
than to Chinese regulations on taxation <strong>and</strong><br />
finance. This might have lead them to take<br />
greater risks or incur losses <strong>and</strong> caused<br />
the investment results to fall behind their<br />
strategic predictions. At the same time,<br />
more <strong>and</strong> more Chinese investors are<br />
confronted with similar issues in <strong>EU</strong><br />
countries. Sun Yang was always asking<br />
himself how these confusions could be<br />
reduced. He says, “I think the internship<br />
played an extremely important role in the<br />
successful implementation of my plans.<br />
I learned the commerce <strong>and</strong> culture of<br />
<strong>EU</strong> countries more directly, <strong>and</strong> I had the<br />
opportunity to learn the tax system <strong>and</strong><br />
relevant laws of Germany as well as the<br />
other <strong>EU</strong> counties.” In fact, Sun Yang had<br />
the opportunity to get to know the German<br />
Federal Chamber of Tax Advisers, which<br />
collaborates with multiple international<br />
tax advisers’ organizations around the<br />
world.<br />
In addition, Sun Yang advised in the<br />
matter of a gr<strong>and</strong> plan in the transport<br />
<strong>and</strong> logistic industry, to “make a delivery<br />
airport-to-airport within 3 days or doorto-door<br />
within 7 days.” According to<br />
Mr. Sun, this service would be “the most<br />
effective solution from <strong>EU</strong> to <strong>China</strong>.” He<br />
writes in his report that “this internship<br />
will be very useful for my future career,<br />
indeed. I believe, taking part in the METP<br />
project is the best way to help achieve<br />
more convenient trade <strong>and</strong> communication<br />
between the <strong>EU</strong> <strong>and</strong> Chinese clients.”<br />
Zhu Weiping<br />
Z<br />
hu Weiping from the city of<br />
Wuxi in Jiangsu Province<br />
joined METP when she was<br />
39. She is a very active person. As she<br />
writes, “I have many roles in society,<br />
as director of the Research Institute for<br />
the Management <strong>and</strong> Development of<br />
Small <strong>and</strong> Medium-Sized Enterprises<br />
(RIMD-SMES), as professor of<br />
Jiangnan University in business law,<br />
as a professional lawyer, <strong>and</strong> as one<br />
of the owners of a company.” For<br />
her seven-week internship she chose<br />
the Frankfurt School of Finance &<br />
Management (FS), which was founded<br />
in 1957 <strong>and</strong> is now one of the leading<br />
private German business schools.<br />
Headquartered in Frankfurt am Main<br />
the school has regional education<br />
centres across Germany <strong>and</strong> several<br />
joint ventures abroad. FS offers diverse<br />
range of doctoral programmes at an<br />
international level as well as executive<br />
training programmes, providing career<br />
starters <strong>and</strong> high potential employees<br />
with the means to greatly improve their<br />
professional prospects. All courses<br />
offered by FS have three aspects in<br />
common: high st<strong>and</strong>ards, diversity <strong>and</strong><br />
practice-orientation.<br />
22
Chinese Experiences in Europe<br />
Zhu Weiping’s internship had<br />
three main goals: to get to know the<br />
organization of FS; to investigate the<br />
operation <strong>and</strong> management of education<br />
<strong>and</strong> research in FS; <strong>and</strong> to carry out her<br />
own research on SMEs. Specifically, Zhu<br />
Weiping intended to develop a strategy<br />
for the business school because, as she<br />
reports, “Without clear strategy of one<br />
organisation, how could it achieve,<br />
sustain <strong>and</strong> renew its competitive<br />
advantage in order to get into favourable<br />
positions?” In addition, she planned to<br />
set a series of measures to guarantee that<br />
the strategy was carried out properly <strong>and</strong><br />
intended to introduce the above measures<br />
on international education at her home<br />
university. She also collected a great deal<br />
of information on other relevant research<br />
about SMEs.<br />
Zhu Weiping was asked to contribute<br />
to FS by giving some lectures to the<br />
postgraduate students in line with her<br />
professional background. She decided to<br />
concentrate her lectures on “Enterprise<br />
Law of <strong>China</strong>”, a topic of interest to the<br />
students. In the words of Zhu Weiping, “I<br />
am quite happy to have these experiences<br />
in Europe. My training, seeing <strong>and</strong> doing<br />
in Europe gave me more thoughts <strong>and</strong><br />
ideas for my home university, for my<br />
research institute <strong>and</strong> for my law firm. I<br />
hope the collaboration between Europe<br />
<strong>and</strong> <strong>China</strong> will be more, <strong>and</strong> that more<br />
Chinese <strong>and</strong> European people can benefit<br />
from each other.”<br />
23
Bloomberg/Christophe Bosset<br />
APA/EPA/Lane<br />
Publication: Wirtschaftsblatt kompakt<br />
Date: 13.11.2009<br />
Kind of media: Economic Press<br />
METP in the Press<br />
MPublication: ETP Manager has received broad attention in the press both in <strong>China</strong> <strong>and</strong> across the European Union. On this page you<br />
Date: 03.12.2009 will find a small selection of newspaper <strong>and</strong> magazine articles about METP. We welcome inquiries from media<br />
Kind of media: Economic Press<br />
representatives in <strong>China</strong> to Ms. Rachel Zhao (rachel.zhao@metp.net.cn) <strong>and</strong> in Europe to Ms. Steffi Fahjen (steffi.<br />
fahjen@publicis-consultants.de).<br />
Publication: Latvijas Avize<br />
Date: 05.12.2009<br />
Kind of media: Economic Press<br />
8 MONTAG,<br />
INTERNATIONAL/OST<strong>EU</strong>ROPA<br />
2009 wirtschaftsblatt.at<br />
Publication: The Asia Pacific Times<br />
KONJUNKTURBAROMETER<br />
Date: 14.12.2009<br />
Kind of media: Economic Press<br />
Konsum: Fürs Gegensteuern fehlt meist das Geld<br />
PRIVATER UND ÖFFENTLICHER KONSUM (Veränderung real in %)<br />
Tschechien Slowakei Ungarn<br />
Slowenien<br />
Polen<br />
10<br />
10<br />
10<br />
10<br />
10<br />
5<br />
5<br />
5<br />
5<br />
5<br />
0<br />
0<br />
0<br />
0<br />
0<br />
-5<br />
-10<br />
2007 2008 2009e 2010e 2011e<br />
-5<br />
-10<br />
2007 2008 2009e 2010e 2011e<br />
-5<br />
-10<br />
2007 2008 2009e 2010e 2011e<br />
-5<br />
-10<br />
2007 2008 2009e 2010e 2011e<br />
Bulgarien Rumänien<br />
Estl<strong>and</strong> Lettl<strong>and</strong> Litauen<br />
16<br />
16<br />
16<br />
16<br />
16<br />
8<br />
0<br />
-8<br />
-16<br />
-24<br />
2007 2008 2009e 2010e 2011e<br />
8<br />
0<br />
-8<br />
-16<br />
-24<br />
2007 2008 2009e 2010e 2011e<br />
8<br />
0<br />
-8<br />
-16<br />
-24<br />
2007 2008 2009e 2010e 2011e<br />
8<br />
0<br />
-8<br />
-16<br />
-24<br />
2007 2008 2009e 2010e 2011e<br />
-5<br />
-10<br />
2007 2008 2009e 2010e 2011e<br />
8<br />
0<br />
-8<br />
-16<br />
-24<br />
2007 2008 2009e 2010e 2011e<br />
Quelle: Eurostat, Quartalszahlen für Bulgarien noch nicht verfügbar<br />
Publication: Ziarul Financiar<br />
Date: 24.11.2009<br />
Kind of media: Economic Press<br />
So steht’s im Lehrbuch: Wenn in Folge eines Konjunktur- Ungarn musste sich beim Internationalen Währungsfonds (IWF) Rumänien, wo es derzeit politisch drunter und drüber geht,<br />
Einbruchs die private Nachfrage nachlässt, muss der Staat um Hilfe anstellen, um Zahlungsunfähigkeit zu vermeiden. musste zumindest seine Ausgaben nicht zurückfahren.<br />
eingreifen und durch öffentliche Investitionen sowie durch In einer ähnlich unerfreulichen Situation bef<strong>and</strong>en sich die<br />
Steigerung staatlicher Konsumausgaben den Nachfrage rückgang drei baltischen Länder Estl<strong>and</strong>, Lettl<strong>and</strong> und Litauen. Auch sie Der private Konsum ist die wichtigste Komponente des BIP. Er<br />
ausgleichen. Auch die Senkung von Massensteuern zwecks waren schon vor Ausbruch der Weltwirtschaftskrise in die Rezession<br />
gerutscht, auch sie haben budgetär keinerlei Spielraum, des BIP aus – sein Wachstum entscheidet daher über Steigen<br />
macht zwischen 48,1 (Tschechien) und 69,1 Prozent (Bulgarien)<br />
Stimulation der privaten Konsumnachfrage sind ein probates<br />
Mittel. In Österreich ist es vor allem der private Konsum, der um gegen die Krise zu intervenieren – allen voran Lettl<strong>and</strong>, das oder Fallen des Wirtschaftswachstums ingesamt. In den meisten<br />
Oststaaten hängt der Konsum aber stark von der Verfüg-<br />
durch die Steuersenkung im April angekurbelt wurde, der im ja ebenfalls auf IWF-Hilfe angewiesen ist. Ganz im Gegenteil:<br />
dritten Quartal den Karren aus dem Dreck (sprich: die Wirtschaft Alle drei baltischen Staaten mussten heuer ihre Konsumausgaben<br />
massiv zurückfahren, um ihre Budgets zu retten. ausschließlich über Kredite finanziert werden. Und Kredite sind<br />
barkeit von Krediten ab, da größere Anschaffungen praktisch<br />
aus der Rezession) gezogen hat.<br />
Lehrbücher dieses Inhalts finden sich auch in osteuropäischen<br />
Bibliotheken. Und es mangelt sicher nicht daran, dass sie Wirklich unterstützen konnte seine Wirtschaft freilich keiner 2008 gerade in den stark von Kapitalzuflüssen aus dem Aus-<br />
bekanntlich seit dem Ausbruch der Liquiditätskrise im Frühjahr<br />
nicht gelesen würden. Das Problem ist vielmehr, dass die neuen<br />
<strong>EU</strong>-Mitgliedstaaten schlicht und einfach nicht das Geld ha-<br />
die Slowakei, ihre staatlichen Konsumausgaben ein wenig stär-<br />
Am leichtesten haben es noch Tschechien und die Slowakei,<br />
der neuen <strong>EU</strong>-Staaten. Immerhin schafften es Tschechien und l<strong>and</strong> abhängigen Wachstumsregionen Mangelware geworden.<br />
ben, um die eigene Konjunktur mit öffentlichen Mitteln wieder ker auszuweiten als in den Jahren davor, und Slowenien gelang in denen die Spareinlagen mehr ausmachen als die aushaftenden<br />
Kredite. In Polen ist das Verhältnis annähernd ausgegli-<br />
in Fahrt zu bringen.<br />
es, nur den Zuwachs geringer ausfallen zu lassen.<br />
Am Beispiel Ungarn: Das L<strong>and</strong> bef<strong>and</strong> sich bereits am Ende Polen steuerte bereits 2008 kräftig dagegen – wohl mit ein chen. Aber etwa im Baltikum ist doppelt soviel Geld ausgeliehen<br />
wie auf den Banken eingelegt.<br />
einer hausgemachten Rezession, als es mit voller Härte vom internationalen<br />
Konjunktureinbruch erwischt wurde. Der natiose<br />
ohne Rezession zu überstehen. Bulgarien, das zwar in den Die UniCredit Group, die in ihrer jüngsten Prognose ihre<br />
Grund, dass es dem L<strong>and</strong> als einzigem in Europa gelang, die Krinale<br />
Teil des Wirtschaftseinbruchs war dadurch entst<strong>and</strong>en, vergangenen Jahren stabile Budgetüberschüsse abgeliefert hat, Wachstumsaussichten für Osteuropa im Jahr 2010 leicht angehoben<br />
hat (von 1,1 auf 1,4 Prozent), rechnet allerdings damit,<br />
dass die Regierung nach Jahren des Schuldenmachens gezwungen<br />
war, eine scharfe Budgetkonsolidierung zu fahren. Als bleme geriet, wird erst ab kommendem Jahr durch verstärkte dass sich die Lage verbessern wird. Dann sollten Konsum – und<br />
durch die starke Ausl<strong>and</strong>sabhängigkeit aber ebenfalls in Pro-<br />
dann die Weltwirtschaft kippte, herrschte im Staathaushalt Ebbe. Staatsausgaben etwas für seine Konjunktur tun können, und in der Folge Wirtschaftswachstum – wieder steigen. (hg)<br />
FLUCHTGELD<br />
Schweiz und Italien<br />
verschärfen Steuerkrieg<br />
Rom/Bern. Zwischen der<br />
Schweiz und Italien ist ein<br />
Steuerkrieg ausgebrochen.<br />
Die Behörden in Bern haben<br />
empört auf die Durchsuchung<br />
von 76 Filialen von<br />
Schweizer Banken durch die<br />
italienische Finanzpolizei<br />
reagiert. Die Polizeiaktion<br />
mit über 100 Beamten steht<br />
im Zusammenhang mit der<br />
Jagd auf Steuersünder. Von<br />
der Razzia betroffen waren<br />
Schweizer Geldinstitute in<br />
der Nähe von San Marino.<br />
Die italienische Finanzpolizei<br />
will abklären, ob die<br />
Banken ihrer Pflicht nachkamen,<br />
die Kundenbeziehungen<br />
dem Fiskus zu melden.<br />
Diese Meldepflicht sei<br />
im Kampf gegen die Steuerhinterziehung<br />
von elementarer<br />
Wichtigkeit.<br />
Der Schweizer Bankenverb<strong>and</strong><br />
kritisierte das Vorgehen:<br />
Es sei seltsam, dass<br />
nur Schweizer Institute<br />
durchsucht worden seien,<br />
sagte Verb<strong>and</strong>ssprecher<br />
James Nason. Er persönlich<br />
habe das Gefühl, den italienischen<br />
Behörden gehe es<br />
um eine Art politisches Signal.<br />
Das Schweizer Außenminister<br />
ließ den italienischen<br />
Botschafter vorladen.<br />
Die Beziehungen zwischen<br />
der Schweiz und Italien<br />
sind derzeit wegen<br />
einer großzügigen italienischen<br />
Steueramnestie für<br />
repatriiertes Fluchtgeld angespannt.<br />
Die Schweiz und<br />
San Marino fürchten, dass<br />
das Gesetz zu einem massiven<br />
Abfluss von Anlegergeldern<br />
führt. Die Schweiz<br />
hat gegen die Umsetzung<br />
der Amnestie protestiert,<br />
weil die italienische Polizei<br />
hierzu die Kontrollen an den<br />
Grenzübergängen „übertrieben“<br />
verstärkt hat.<br />
Italiens Außenminister<br />
Franco Frattini warnte die<br />
Schweizer vor Gegenmaßnahmen.<br />
„Ich glaube nicht,<br />
dass der Weg von Maß nahmen<br />
und Gegenmaßnahmen<br />
der korrekte Weg ist“,<br />
sagte Frattini. (mt)<br />
Italienische Filialen Schweizer Banken fühlen sich von<br />
der Polizei gemobbt – die Ausein<strong>and</strong>ersetzung wird härter<br />
AUSBILDUNG Bis Jänner 2010 läuft Bewerbungsfrist für nächste Runde<br />
Publication: Ekonom<br />
Date: 19.11.2009<br />
Kind of media: Economic Press<br />
<strong>EU</strong>-<strong>China</strong>-Programm<br />
vermisst Österreicher<br />
Die <strong>EU</strong> will Managern helfen, im Reich der Mitte Fuß zu<br />
fassen – und hat dafür 17 Millionen € lockergemacht<br />
Die <strong>EU</strong> schickt Manager<br />
für fast elf Monate<br />
nach <strong>China</strong>, primär um<br />
die Sprache zu lernen.<br />
Der Verb<strong>and</strong> für KMU<br />
kritisiert die Initiative.<br />
Sie sei nicht für ihre<br />
Zielgruppe konzipiert.<br />
Brüssel. „Wir hoffen, dass wir<br />
diesmal einen Teilnehmer aus<br />
Österreich kriegen.“ Stefan<br />
Hell, Leiter eines <strong>EU</strong>-finanzierten<br />
Austauschprogramms<br />
mit <strong>China</strong>, will Österreicher<br />
für seine Sache begeistern.<br />
Manager, vorzugsweise aus<br />
KMU, erhalten die Chance<br />
eines knapp elfmonatigen<br />
Aufenthalts in <strong>China</strong>.<br />
Am Anfang steht interkulturelles<br />
<strong>Training</strong> und eine siebenmonatige<br />
Sprachausbildung.<br />
„Es soll ein Niveau erreicht<br />
werden, mit dem man<br />
einen Geschäftspartnern beeindrucken<br />
kann“, sagt Hell.<br />
Die Probe folgt aufs Exempel,<br />
in Form einer dreimonatigen<br />
Praxis in einem Betrieb.<br />
Die Teilnehmer erhalten einen<br />
Zuschuss von 1000 € pro<br />
Monat. Der nächste Austausch<br />
startet im Mai 2010, die<br />
Bewerbungsfrist dafür endet<br />
am 7. Jänner. K<strong>and</strong>idaten sollten<br />
zwischen 26 und 40 Jahre<br />
alt sein, mindestens fünf Jahre<br />
Arbeitserfahrung (zwei davon<br />
im Management) und einen<br />
„starken akademischen<br />
Hintergrund“ haben. Hauptkriterium<br />
ist laut Hell aber ein<br />
überzeugender Geschäftsplan.<br />
Ziel der Initiative ist es, die<br />
Präsenz europäischer Manager<br />
in <strong>China</strong> zu erhöhen, erklärt<br />
Franz Jessen von der <strong>EU</strong>-<br />
Kommission. Die <strong>EU</strong> hat das<br />
Programm, das seit Anfang<br />
2007 läuft, mit 17 Millionen €<br />
unterstützt. <strong>China</strong> steuerte<br />
sechs Millionen € bei. Bis dato<br />
gab es rund 320 Teilnehmer<br />
aus dem Reich der Mitte und<br />
aus 23 <strong>EU</strong>-Staaten.<br />
Kritik an Kriterien<br />
Laut Luc Hendrickx vom <strong>EU</strong>-<br />
Verb<strong>and</strong> für KMU (Ueapme),<br />
hat das Programm allerdings<br />
einige Schwachstellen: „Es ist<br />
nicht passend für KMU“, stellt<br />
er fest. Diese hätten nicht die<br />
personellen Kapazitäten, um<br />
einen Mitarbeiter für fast ein<br />
Jahr ziehen zu lassen.<br />
Außerdem liege der Fokus<br />
zu stark auf Sprachtraining.<br />
„Chinesisch kann man auch<br />
in einem Kurs in der <strong>EU</strong> lernen.“<br />
Hendrickx hält einerseits<br />
eine Verkürzung der<br />
Laufzeit des Programms für<br />
sinnvoll. Andererseits kritisiert<br />
er die Selektionskriterien:<br />
„Die meisten Manager<br />
von Klein- und Mittelunternehmen<br />
haben keinen akademischen<br />
Hintergrund.“<br />
SABINE BERGER<br />
sabine.berger@wirtschaftsblatt.at<br />
24
Publication: bizz<br />
Date: 23.11.2009<br />
Kind of media: Economic Press<br />
Publication: Narodno Delo<br />
Date: 12.11.2009<br />
Kind of media: Economic Press<br />
Publication: <strong>China</strong> Review<br />
Date: 08.12.2009<br />
Kind of media: Economic Press<br />
6667&$%8*96:7;<<br />
L’Echo, 12/11/2009, page/bladzijde 10<br />
LA COMMISSION RECONDUIT SON PROGRAMME D’ÉCHANGE DE BUSINESSMEN AVEC PÉKIN<br />
L’UE casse sa tirelire pour<br />
offrir la Chine aux PME<br />
ix mois en Chine pour ap-<br />
le chinois des affai-<br />
Dprendre<br />
res et faire un stage en entreprise.<br />
Tous frais payés. Pour la cinquième<br />
année consécutive, la<br />
Commission européenne et le<br />
gouvernement chinois financent<br />
un programme d’échange d’entrepreneurs:<br />
le <strong>Managers</strong> <strong>Exchange</strong><br />
<strong>and</strong> <strong>Training</strong> Program<br />
(METP). Il comprend quinze<br />
jours de «cours culturels» au fil<br />
desquels les participants européens<br />
se familiarisent à leur nouveau<br />
sujet d’étude tout en rencontrant<br />
les Chinois qui<br />
s’apprêtent à vivre la même expérience<br />
en Europe. Puis viennent<br />
les choses sérieuses: sept mois<br />
d’apprentissage intensif du chinois<br />
– parsemés de visites de terrain.<br />
Et enfin, trois mois de stage<br />
dans une entreprise au choix. Les<br />
c<strong>and</strong>idats participants sont d’ailleurs<br />
sélectionnés en fonction de<br />
leur projet d’affaire et de la pertinence<br />
du stage qu’ils se proposent<br />
de faire.<br />
Non seulement les cours sont<br />
gratuits, mais les déplacements<br />
sont pris en charge par la Commission<br />
européenne, et les participants<br />
reçoivent chacun une indemnité<br />
de 1 000 euros par mois<br />
durant leur séjour.<br />
ON NE SE BOUSCULE PAS<br />
Pour les petites et moyennes entreprises<br />
européennes intéressées<br />
par la Chine, c’est une opportunité<br />
rare de s’offrir un<br />
Des rencontres avec des Chinois qui s’apprêtent à vivre la même expérience en Europe sont prévues.<br />
spécialiste du pays. Mais en Belgique,<br />
elles ne se bousculent pas<br />
pour participer. Depuis l’existence<br />
du programme, quatre Belges<br />
ont pris part au METP<br />
(contre onze Néerl<strong>and</strong>ais). Francis<br />
du Bois est l’un d’eux. Avant<br />
d’aller en Chine, il menait une petite<br />
entreprise de consultance, il<br />
aidait des sociétés européennes à<br />
exporter vers l’Asie du Sud-Est.<br />
Vers des pays comme le Vietnam,<br />
le Népal, la Thaïl<strong>and</strong>e… Mais pas<br />
la Chine: «L’environnement d’affaires<br />
y était trop différent, explique-t-il.<br />
Ne fût-ce que parce que<br />
© Reuters<br />
les Chinois parlent très peu l’anglais.»<br />
Le programme était l’occasion<br />
d’élargir son champ de<br />
compétence. Après avoir terminé<br />
la session de cours de chinois en<br />
mai dernier, il a fait son stage<br />
dans un think tank. Entre-temps,<br />
la crise l’a forcé à mettre la clé de<br />
son entreprise sous le paillasson.<br />
Mais rien n’est perdu: «Ce programme<br />
m’a permis de me<br />
construire un réseau, c’est précieux.»<br />
Reste à l’exploiter à bon<br />
escient.<br />
Le but du programme – lancé en<br />
juillet 2006 – est «d’élargir l’expertise<br />
d’affaires en développant<br />
des relations plus fortes» entre<br />
Europe et Chine. Au total, le<br />
METP devrait former 200<br />
«<strong>China</strong> Guys» européens et autant<br />
de «spécialistes» chinois du<br />
marché européen. Le programme<br />
représente un budget<br />
total de 23 millions d’euros, cofinancé<br />
par l’UE et la Chine. <br />
F.R.<br />
Les inscriptions se clôturent le 7 janvier<br />
2010, le cinquième groupe<br />
d’échange partira en chine en mai de<br />
la même année. www.metp.net.cn<br />
Copyright Mediafin<br />
25
Continuous Improvements to<br />
METP’s Chinese<br />
Language <strong>Training</strong><br />
T<br />
he European Technical Assistance<br />
Team of METP organised a<br />
capacity building seminar for<br />
the trainers who teach Chinese to the<br />
European METP participants at the<br />
Beijing University of International Business<br />
<strong>and</strong> Economics (UIBE) from 18<br />
to 20 September 2009. 19 participants<br />
actively took part in this training. Prof.<br />
Wang Fuming, who is responsible for the<br />
Chinese language training under METP,<br />
took part as an observer <strong>and</strong> contributed<br />
with ideas <strong>and</strong> interesting comments.<br />
The objective of the training was<br />
to underst<strong>and</strong> the principles of training<br />
management <strong>and</strong> to be able to set learning<br />
objectives for one’s own language<br />
training”. An evaluation at the end of the<br />
seminar verified that the training was a<br />
success: All participants confirmed that<br />
they had achieved this objective <strong>and</strong> that<br />
they will apply what they have learnt in<br />
their work. During the three days they<br />
learned how to set objectives using the<br />
SMART criteria <strong>and</strong> understood why this<br />
is so important for any type of training,<br />
including language training.<br />
The seminar took place at the<br />
famous Longmai Hot Spring in the<br />
northwest of Beijing. This popular location<br />
provided a pleasant framework for<br />
the training. New friends were made <strong>and</strong><br />
many teachers expressed their wish to<br />
continue the training.<br />
26
Coaching of<br />
UIBE<br />
Language<br />
Trainers<br />
I<br />
n November <strong>and</strong> December 2009 the<br />
UIBE language trainers, who teach<br />
the European METP participants<br />
Chinese language, were coached by a<br />
team of three language training experts.<br />
In a first phase the experts observed<br />
the language training at UIBE <strong>and</strong> then<br />
discussed ways to make the training even<br />
more effective <strong>and</strong> enjoyable with the<br />
trainers. This approach can be compared<br />
with the function of a coach in sports,<br />
who observes his team during a competition<br />
<strong>and</strong> afterwards discusses with the<br />
athletes what has happened <strong>and</strong> how to<br />
learn from it.<br />
In a second phase the experts<br />
conducted a two-day workshop for the<br />
language trainers in Beijing. The experts<br />
presented successful methods used in European<br />
language training <strong>and</strong> discussed<br />
the theories behind them. At the end of<br />
the workshop the participants saw some<br />
photos of their own language training<br />
that illustrated crucial training situations<br />
as well as successful ways to deal with<br />
them.<br />
All phases of the coaching took<br />
place in a pleasant <strong>and</strong> constructive atmosphere.<br />
This was mainly thanks to the<br />
willingness to learn <strong>and</strong> the open-mindedness<br />
of the UIBE language trainers,<br />
who showed great enthusiasm <strong>and</strong><br />
contributed actively to all discussions. In<br />
fact, one can say that the learning benefit<br />
was mutual, as the whole exercise was<br />
conducted in the form of a dialogue with<br />
the objective to improve the training –<br />
<strong>and</strong> not in the form of instructions from<br />
the experts.<br />
The experts therefore would like to<br />
thank all participating teachers for their<br />
cooperation <strong>and</strong> their valuable inputs.<br />
They would also like to thank Professor<br />
Wang Fuming, who personally supported<br />
the coaching <strong>and</strong> took part in many<br />
discussions as well as the final workshop.<br />
The experts sincerely hope that the<br />
outcomes of the coaching exercise will<br />
directly benefit the European participants<br />
of the forthcoming intake, METP 5.<br />
The coaching was one link in a<br />
longer process of capacity building activities<br />
for the UIBE language teachers,<br />
which had started earlier in 2009 with a<br />
series of seminars. A further seminar for<br />
this target group is currently planned for<br />
coming May, when the language teachers<br />
will learn how to select <strong>and</strong> design<br />
effective training methods on the basis of<br />
given learning objectives.<br />
27
METP welcomes new Team Members<br />
D<br />
r. Thomas Hart joined<br />
the European Technical<br />
Assistance Team (ETAT)<br />
of METP in late 2009 as HR<br />
D<br />
r. Michael Mechthold-Jin<br />
also joined ETAT in 2009 as<br />
Capacity Building Co-ordinator.<br />
Michael has been working as a training<br />
Development Expert. Thomas is expert with international organisations<br />
consultant for <strong>EU</strong>-<strong>China</strong> economic all over <strong>China</strong> for more than 10 years.<br />
<strong>and</strong> policy cooperation with a focus His main responsibility in METP is<br />
on communications <strong>and</strong> media policy organising capacity building activities<br />
<strong>and</strong> has worked with numerous <strong>EU</strong> for UIBE, the university that conducts<br />
<strong>and</strong> Chinese government <strong>and</strong> private stakeholders. For the the language training for all European METP participants.<br />
METP, he is primarily developing training modules, but also Michael also implements ETAT’s internal evaluation<br />
monitors participants’ work placements.<br />
programme.<br />
METP round table in the <strong>EU</strong> capital Brussels:<br />
Turning challenges into opportunities for<br />
<strong>EU</strong> companies in <strong>China</strong><br />
O<br />
n 27 October 2009 a round table event in Brussels<br />
brought together <strong>EU</strong> policy-makers, METP managers<br />
<strong>and</strong> participants, as well as business associations <strong>and</strong><br />
journalists to mark the extension of the programme <strong>and</strong> the<br />
launch of its fifth call for applications.<br />
METP team leader Stefan Hell was the key speaker at the<br />
event. He was joined on the<br />
panel by Franz Jessen, Head of<br />
Unit for <strong>China</strong> at the European<br />
Commission; Frédéric Poncin,<br />
a Belgian METP 3 graduate;<br />
Luc Hendrickx of the European<br />
SME association UEAPME;<br />
<strong>and</strong> Philippe Le Corre, <strong>EU</strong>-<br />
<strong>China</strong> expert with Publicis<br />
Consultants, who moderated<br />
the discussion.<br />
The speakers presented<br />
their insights into the needs of European companies for<br />
doing business with <strong>China</strong> with special reference to the role<br />
of the METP in bridging the gaps in language, culture <strong>and</strong><br />
underst<strong>and</strong>ing of the local business environment. Mr. Jessen<br />
welcomed the extension of the programme for a fifth intake.<br />
“This programme creates a powerful example for others to<br />
follow. It is built on years of experience <strong>and</strong> the participants<br />
have been overwhelmingly satisfied – they feel like they<br />
have been put on a new <strong>and</strong> better career track.”<br />
Dr. Stefan Hell introduced the programme as a joint<br />
European-Chinese investment in human resources <strong>and</strong><br />
explained how training is organised for both <strong>EU</strong> <strong>and</strong> Chinese<br />
participants. “The concept of METP is based on the conviction<br />
that a ten-month programme with language courses,<br />
intercultural training, internships <strong>and</strong> company visits creates<br />
the foundation for long-term<br />
success in one of the world’s<br />
most dynamic economies”,<br />
said Dr. Hell. “Perhaps best of<br />
all, METP is not limited to a<br />
specific industry, so managers<br />
from all sectors can apply <strong>and</strong><br />
use METP as a springboard<br />
for their particular business<br />
plans.”<br />
Frédéric Poncin, who<br />
graduated from METP in<br />
August this year shared insights <strong>and</strong> images from his time in<br />
<strong>China</strong> with much enthusiasm. He emphasised the on-the-ground<br />
experience that METP provides. “There is a huge gap between<br />
theory <strong>and</strong> practice in an area like this – you really have to live<br />
it. METP is your survival kit.”<br />
During the discussion that followed it was revealed that<br />
good business plans <strong>and</strong> strong motivation for learning are<br />
key to succeed in the selection for METP as well as for doing<br />
business with <strong>China</strong>.<br />
28
Matchmaking – Real Business in Chengdu<br />
O<br />
n 17 <strong>and</strong> 18 October 2009, 35 METP 4 participants<br />
took part in the <strong>EU</strong>-<strong>China</strong> Business & Technology<br />
Cooperation Fair in Chengdu, Sichuan Province.<br />
The fair is in its fourth year <strong>and</strong> marked one of the largest<br />
trade events between the <strong>EU</strong> <strong>and</strong> <strong>China</strong> in 2009. The event<br />
provides an important platform of trade, investment <strong>and</strong> technological<br />
cooperation that commits to help SMEs from both<br />
<strong>EU</strong> <strong>and</strong> <strong>China</strong>. More than 200 European enterprises joined this<br />
matchmaking event together with 600 Chinese enterprises.<br />
European METP 4 participants found the event quite useful;<br />
for many it was their first participation in a matchmaking<br />
setting or their first time to do business with Chinese in <strong>China</strong>.<br />
While METP organises a wide range of business-related visits,<br />
lectures <strong>and</strong> study tours, the Chengdu fair provided many participants<br />
with tangible business opportunities through meeting<br />
potential Chinese partners from their respective industries.<br />
Jochen Schmidt<br />
METP 4<br />
The Chengdu matchmaking event was a very interesting<br />
opportunity for intercultural business activities. I had 14<br />
matchmaking meetings in 2 days with Chinese companies<br />
of various business fields. All meetings were worth the<br />
experience, some of them lead even to further contacts. The<br />
timing <strong>and</strong> scheduling of the program was very good, the<br />
meeting sessions of 40 minutes each could be realized in an<br />
appropriate meeting environment. Due to the short time <strong>and</strong><br />
the high number of encounters the individual sessions had<br />
to be well structured, highly concentrated <strong>and</strong> intensively<br />
communicative. I met very competent <strong>and</strong> engaged session<br />
partners from the Chengdu region, willing to share their<br />
experiences on their home market <strong>and</strong> to know more about<br />
European business activities. With the help of an excellent<br />
English-Chinese translator I could enjoy this event as a truly<br />
intercultural experience platform. Although there were no<br />
direct matches with my concrete working field, I nevertheless<br />
could learn a lot about Chinese markets <strong>and</strong> business structures<br />
in general - what I consider being helpful for further<br />
business activities in <strong>China</strong>.<br />
29
Who are you really<br />
negotiating with?<br />
Lecture on negotiating<br />
with Chinese partners<br />
A<br />
ntony Dapiran, partner of international law firm<br />
Freshfields Bruckhaus Deringer LLP <strong>and</strong> the chair<br />
of the European Chamber of Commerce in <strong>China</strong>’s<br />
legal working group, shared his knowledge <strong>and</strong> experience on<br />
negotiation skills in negotiations with Chinese partners with<br />
European METP 4 participants on 13 October 2009.<br />
As a lawyer specialized in securities offerings, private<br />
equity <strong>and</strong> cross-border mergers <strong>and</strong> acquisitions, Mr.<br />
Dapiran has lived <strong>and</strong> worked in Greater <strong>China</strong> for over 12<br />
years. He first introduced basic concepts in Confucianism <strong>and</strong><br />
Taoism, the bureaucratic structure of decision-making process<br />
in State-owned Enterprises, <strong>and</strong> regional variations in <strong>China</strong>.<br />
Before entering detailed negotiation tactics, Mr. Dapiran<br />
quoted a well-known sentence from “The Art of War” by Sun<br />
Tzu -- “Know yourself <strong>and</strong> know your enemy, <strong>and</strong> you will<br />
be victorious”. It became clear from his presentation that<br />
Chinese business practices are changing rapidly, but also that<br />
influences from 5,000 years of Chinese culture <strong>and</strong> history<br />
should never be underestimated. The key to successfully<br />
negotiating with Chinese partners, according to Mr. Dapiran,<br />
was to underst<strong>and</strong> their common values <strong>and</strong> how these values<br />
influence the Chinese legal framework <strong>and</strong> business decisions.<br />
In the end, he analyzed a few typical cases that on-theground<br />
foreign managers would face when negotiating with<br />
Chinese partners. Mr. Dapiran’s presentation triggered lively<br />
discussions among METP participants who found the<br />
lecture very useful for their preparations for their future<br />
business in <strong>China</strong>.<br />
Protect Your Intellectual<br />
Property Rights<br />
METP lecture on IPR<br />
<strong>and</strong> other legal aspects<br />
O<br />
n 27 October 2009, Mr. Edouard Schmitt zur<br />
Höhe gave a lecture on IPR <strong>and</strong> other legal<br />
aspects to the European METP 4 participants.<br />
Mr. Schmitt zur Höhe has been advising on intellectual<br />
property rights in Asia for over 15 years. He has worked<br />
on a wide range of cases throughout Asia <strong>and</strong> specializes<br />
in providing corporate clients with comprehensive<br />
IPR strategies throughout the region based on their<br />
needs <strong>and</strong> IPR issues.<br />
Before giving an overview of IPR registering in<br />
<strong>China</strong>, Mr. Schmitt zur Höhe reminded the audience<br />
of making sufficient preparations before entering the<br />
<strong>China</strong> market. Later on, he shared a number of real<br />
cases of IPR infringements in <strong>China</strong> <strong>and</strong> gave a number<br />
of practical suggestions <strong>and</strong> tips on dealing with<br />
such issues. The METP participants raised a number<br />
questions related to specific real cases that Mr. Schmitt<br />
zur Höhe mentioned in his presentation as IPR is one<br />
of their key concerns of doing business in <strong>China</strong>.<br />
The event was co-organized by the <strong>EU</strong> Chamber<br />
of Commerce in <strong>China</strong> <strong>and</strong> the <strong>EU</strong>-<strong>China</strong> <strong>Managers</strong><br />
<strong>Exchange</strong> <strong>and</strong> <strong>Training</strong> <strong>Programme</strong> as a part of the<br />
business programme exclusive for the European METP<br />
4 participants. The business programme provides<br />
complementary information on the Chinese economy,<br />
culture society, improving the participants’ underst<strong>and</strong>ing<br />
of the local environment <strong>and</strong> their chances for<br />
doing business in <strong>and</strong> with <strong>China</strong>.<br />
30
METP 4 visits Daimler Automotive<br />
O<br />
n 20 November 2009 the European METP 4 participants<br />
visited Beijing Benz-DaimlerChrysler<br />
Automotive Co., Ltd. (BBDC) located in Yizhuang,<br />
Beijing Economic-Technological Development Area.<br />
Established on 8 August 2005, BBDC is joint venture<br />
founded by Beijing Automotive Industry Holding Co., Ltd.,<br />
Daimler AG <strong>and</strong> Daimler North East Asia Ltd. Mr. Holger<br />
Marquardt, the CFO of BBDC gave a comprehensive company<br />
presentation He introduced the history, the products, the<br />
advanced technologies, the quality controls, the team-building<br />
<strong>and</strong> the social responsibility of BBDC. From his presentation<br />
participants got the impression<br />
of BBDC as a positive<br />
example of a joint venture<br />
with a good mix of Chinese<br />
<strong>and</strong> Western culture. Joint<br />
venture partners are using<br />
their respective strengths for<br />
the development of the joint<br />
company. Although the economic<br />
crisis has hit the automobile industry seriously in Europe<br />
<strong>and</strong> the United States, in <strong>China</strong> the industry continues to grow.<br />
BBDC is confident that focusing on the booming mainl<strong>and</strong> Chinese<br />
market will continue to pay off, <strong>and</strong> for this reason BBDC<br />
is investing in production facilities for a new model to be rolled<br />
out shortly.<br />
METP participants showed a strong interest in the company<br />
in particular <strong>and</strong> the automotive sector in general. They<br />
also had an opportunity to tour the production facilities of the<br />
Mercedes Benz C-Class, including stamping, painting, assembling<br />
<strong>and</strong> testing procedures.<br />
Roundtable Seminar<br />
on <strong>China</strong>'s Legal <strong>and</strong> Judiciary System<br />
P<br />
rofessor Stéphanie Balme, senior research fellow at Sciences<br />
Po in Paris <strong>and</strong> permanent visiting Professor at the<br />
Tsinghua University School of Law in Beijing, gave a<br />
stimulating presentation on <strong>China</strong>’s Legal <strong>and</strong> Judiciary System<br />
at a roundtable seminar with European METP 4 participants on<br />
3 November 2009. The event was hosted by the EC Delegation<br />
in Beijing.<br />
Prof. Balme, who is also actively involved in the <strong>China</strong>-<br />
<strong>EU</strong> School of Law (CESL), corrected a common preconception<br />
held by many Europeans that <strong>China</strong>’s legal system is backward<br />
compared to European systems. She analysed on the historical<br />
evolution, current state <strong>and</strong> development trends of <strong>China</strong>’s<br />
legislative system <strong>and</strong> its judiciary <strong>and</strong> put particular emphasis<br />
on civil law. While recognizing<br />
that <strong>China</strong>’s<br />
legal system has been<br />
greatly improved <strong>and</strong><br />
modernized since<br />
1978, she also pointed<br />
to a number of aspects<br />
which require further<br />
changes, in order to establish<br />
an efficient <strong>and</strong> modern<br />
system in <strong>China</strong>. The European<br />
audience was struck<br />
by revelations like the one<br />
that <strong>China</strong>, in stark contrast<br />
to European judicial systems,<br />
has significantly more<br />
judges than lawyers.<br />
In the following Q&A<br />
session, METP participants<br />
<strong>and</strong> the speaker discussed<br />
various questions like the<br />
regional disparity of legal<br />
awareness in <strong>China</strong>. Prof.<br />
Balme pointed out that most lawyers <strong>and</strong> lawsuits were concentrated<br />
in the large cities of eastern <strong>China</strong> while many judges in<br />
other parts of <strong>China</strong> were only working part-time due to a lack<br />
of cases. At the end of the session Prof. Balme shared some<br />
pieces of personal advice on living <strong>and</strong> doing business in <strong>China</strong><br />
from a legal perspective.<br />
31
Airbus welcomes METP<br />
O<br />
n 27 November the European METP 4 participants<br />
visited Airbus Tianjin, which is a joint venture<br />
between Airbus <strong>and</strong> a Chinese consortium of Tianjin<br />
Free Trade Zone (TJFTZ) <strong>and</strong> <strong>China</strong> Aviation Industry<br />
Corporation (AVIC). The visit was organized in cooperation<br />
with the <strong>EU</strong> Chamber of Commerce in <strong>China</strong>.<br />
Airbus Tianjin is the first Airbus final assembly line to<br />
operate outside of Europe <strong>and</strong> was opened in September 2008.<br />
It complements the two existing assembly lines in France <strong>and</strong><br />
Germany. In Tianjin the Airbus A320 is assembled, of which a total<br />
of 11 aircraft shall be delivered to costumers by the end of 2009.<br />
Ms. Nancy Fan, Communication & PR Manager of<br />
Airbus Tianjin, received the METP group <strong>and</strong> took them on a<br />
tour of the plant which lasted over two hours <strong>and</strong> took in the<br />
vast assembling line <strong>and</strong> the hangar. She also gave detailed<br />
presentation on regional advantages for the location in Tianjin,<br />
the firm's management, HR development policies as well as<br />
client <strong>and</strong> partner relations.<br />
En route to Tianjin the group stopped at Xianghe<br />
Economic <strong>and</strong> Technological Development Zone in Langfang,<br />
Hebei Province. Facilitated by CCPIT, they visited a production<br />
facility of the well-known Swedish firm SCA Packaging <strong>and</strong><br />
were interested to learn that there was not a single non-Chinese<br />
person in the company's management in Xianghe. The group<br />
also toured the economic zone <strong>and</strong> visited Epoch City, the<br />
zone's splendid meeting centre.<br />
Photo: O.Geibel<br />
Photo: O.Geibel<br />
32
Supply Chain<br />
Management<br />
in <strong>China</strong><br />
M<br />
r. Justin Barrow, Director<br />
for Business Development<br />
with Penske<br />
Logistics, gave an informative<br />
lecture on supply chain management<br />
to the European METP<br />
4 participants on Tuesday, 17<br />
November 2009. Mr. Barrow, who<br />
has been working in <strong>China</strong> for<br />
13 years, raised four intriguing<br />
questions at the beginning of his<br />
presentation: Have you ever lost<br />
business due to logistics costs being too high? Have you ever lost<br />
business due to logistics service failure? Have you ever lost business<br />
due to lack of inventory? Do you calculate the total l<strong>and</strong>ed<br />
cost when sourcing parts or developing pricing?<br />
He then analysed the trends <strong>and</strong> challenges of <strong>China</strong>'s logistics<br />
market. Mr. Barrow pointed out that four major factors,<br />
namely poor legal/regulatory environment, lack of expertise<br />
<strong>and</strong> technology, problematic infrastructure <strong>and</strong> fragmented<br />
market, led to a high risk <strong>and</strong> low efficiency market with poor<br />
on-time delivery, high damage rate <strong>and</strong> poor visibility. When<br />
analysing the domestic transportation market structure, Mr. Barrow<br />
also pointed out that independent truck owners provided<br />
ninety percent of the trucking capacity in <strong>China</strong> <strong>and</strong> analysed<br />
the common problems in the industry, such as overloading <strong>and</strong><br />
government-controlled fuel prices.<br />
In the realm of <strong>China</strong>'s international logistics, Mr. Barrow<br />
pointed out that the industry was severely hit by the global<br />
economic crisis. He then shared some best practices in managing<br />
logistics <strong>and</strong> also a few useful suggestions in the context of<br />
global economic crisis.<br />
Online Marketing<br />
in <strong>China</strong><br />
P<br />
rofessional marketing <strong>and</strong> advertising on<br />
the Chinese Internet are in great dem<strong>and</strong>.<br />
Accordingly, <strong>and</strong> upon initiative by METP<br />
participant Esther Janssen, METP co-organised a lecture<br />
on online marketing in <strong>China</strong> on 24 November<br />
2009.<br />
In a three part presentation, Jurriaan Meyer <strong>and</strong><br />
Tim Metz from online marketing company ‘Yourzine’<br />
gave an overview of trends on the Internet in <strong>China</strong>,<br />
explained how online br<strong>and</strong>ing of Chinese corporations<br />
differs from that of their Western counterparts,<br />
<strong>and</strong> how online marketing can help enterprises to<br />
successfully generate leads <strong>and</strong> turn these into loyal<br />
customers. Also, they outlined the importance of<br />
connecting the online with the offline world <strong>and</strong><br />
dealing with Chinese customers in particular.<br />
Mr. Meyer’s career focuses on Internet, e-business<br />
<strong>and</strong> software industries in Europe <strong>and</strong> <strong>China</strong>. Before<br />
joining ‘Yourzine’, he was responsible for sourcing the<br />
national travel <strong>and</strong> payment smartcard ‘OV-chipkaart’<br />
from <strong>China</strong> to The Netherl<strong>and</strong>s. Mr. Metz has been<br />
active in online media for more than a decade, running<br />
several companies <strong>and</strong> projects in Europe, Africa <strong>and</strong><br />
Asia. His experience ranges from simple web design up<br />
to complex online concepts <strong>and</strong> digital video production.<br />
33
METP 4 Participants<br />
meet Chief Representative<br />
of St<strong>and</strong>ard Chartered Bank<br />
in <strong>China</strong><br />
O<br />
n 26 November 2009 European METP 4<br />
participants visited the St<strong>and</strong>ard Chartered Bank<br />
at Oriental Plaza, Beijing. With over 150 years<br />
of experience in <strong>China</strong>, St<strong>and</strong>ard Chartered has one of the<br />
largest foreign bank networks in <strong>China</strong> with 15 branches, 37<br />
sub-branches, a representative office <strong>and</strong> a village bank.<br />
The chief representative of St<strong>and</strong>ard Chartered in <strong>China</strong>,<br />
Ms. Lyn Kok, who has been working in the financial industry for<br />
25 years, first introduced St<strong>and</strong>ard Chartered<br />
in general <strong>and</strong> then went into details of the<br />
bank’s business in <strong>China</strong>, namely private<br />
banking, corporate banking <strong>and</strong> wholesale<br />
banking. She pointed out that although<br />
there was still much room to improve,<br />
the banking industry in <strong>China</strong> had been<br />
gradually opening since 2007. Participants<br />
inquired about banking in foreign trade, real<br />
estate banking <strong>and</strong> corporate lending.<br />
Chinese Media Markets<br />
O<br />
n 1 December 2009, the <strong>EU</strong> Delegation hosted the<br />
final METP round table for the participants of its<br />
fourth intake. Dr. Thomas Hart, who has been working<br />
in Beijing since 2005, spoke on the topic of Chinese media<br />
markets, with a special focus on the development of new media.<br />
Thomas gave an overview over the various market<br />
segments: the old mass media are still of utmost importance,<br />
CCTV is the premier Chinese media br<strong>and</strong>, <strong>and</strong> has set out<br />
to internationalise its offerings, engage in international coproductions,<br />
etc. In the realm of print media all newspapers are<br />
also state-owned. The new media, namely all services that come<br />
under the “Internet” label, break out of this picture, because<br />
state ownership to all opinion-forming gateways is not possible<br />
here. News <strong>and</strong> information services are, however, heavily<br />
regulated, with a wide range of license requirement depending<br />
on the specific service<br />
offered online (news,<br />
financial information,<br />
audiovisual content, etc.).<br />
Thomas Hart sought<br />
in his presentation not<br />
only to focus on the<br />
existing limitations <strong>and</strong><br />
restrictions, but also on<br />
user behaviour <strong>and</strong> taste<br />
that may be very different<br />
when comparing the <strong>EU</strong><br />
<strong>and</strong> <strong>China</strong>. <strong>China</strong>’s young<br />
native Internet users do<br />
not hesitate to take on new technology <strong>and</strong> services, but they are<br />
very averse to fee-based services. They spend more time online,<br />
less time using other mass media. Regulatory restrictions may<br />
not matter as much when seen from the inside perspective of a<br />
Chinese user as they do from the outside perspective, because<br />
many aspects that are being discussed internationally only<br />
affect a small number of users.<br />
As a result of the strong state intervention in the production<br />
<strong>and</strong> distribution of Chinese media, production <strong>and</strong> artistic<br />
quality remains poor in international comparison. The ensuing<br />
trade deficit for cultural products is something that is currently<br />
being realised by decision-makers in <strong>China</strong>.<br />
34
European METP 4<br />
<strong>Managers</strong> participate<br />
in the Canton Fair<br />
M<br />
ETP supported European participants in the<br />
programme to join the Canton Fair in Guangzhou<br />
in October <strong>and</strong> November 2009. The Canton Fair is<br />
<strong>China</strong>’s top annual event for buyers <strong>and</strong> sellers from a very<br />
wide range of industries. The Canton Fair has the longest<br />
history, the largest scale, the biggest buyer attendance, the<br />
broadest buyer distribution, the greatest business turnover, <strong>and</strong><br />
the best credit st<strong>and</strong>ing of all trade fairs in <strong>China</strong>.<br />
A total of 20 METP 4 participants travelled to Guangzhou<br />
individually for the part related to their individual industry <strong>and</strong><br />
received financial support from METP. They found the fair to<br />
be an excellent platform to meet possible business partners in<br />
very specified <strong>and</strong> targeted sectors. Most participants managed<br />
to find potential business partners relating directly to their<br />
business plans. They were able to establish new business<br />
relations by meeting with potential partners face to face, which<br />
is of great importance in Chinese business culture.<br />
Belgian participant Vincent Mottrie explains: “I found new<br />
suppliers <strong>and</strong> new products in the sector of natural stones, the<br />
traditional talks with existing suppliers were more then useful,<br />
<strong>and</strong> by going to the Canton Fair, I got the opportunity to see<br />
new trends <strong>and</strong> new applications in my sector.”<br />
35
(<strong>EU</strong>CMA). CONNECT is published quarterly as<br />
hardcopy <strong>and</strong> electronically. For inquiries please<br />
<strong>Managers</strong> <strong>Exchange</strong> <strong>and</strong> <strong>Training</strong> <strong>Programme</strong><br />
(METP) <strong>and</strong> the <strong>EU</strong>-<strong>China</strong> <strong>Managers</strong> Association<br />
CONNECT is the magazine of the <strong>EU</strong>-<strong>China</strong><br />
<strong>Managers</strong> <strong>Exchange</strong> <strong>and</strong> <strong>Training</strong> <strong>Programme</strong><br />
(METP) <strong>and</strong> the <strong>EU</strong>-<strong>China</strong> <strong>Managers</strong> Association<br />
(<strong>EU</strong>CMA). CONNECT is published quarterly as<br />
hardcopy <strong>and</strong> electronically. For inquiries please<br />
contact Rachel Zhao at rachel.zhao@metp.net.cn<br />
contact Rachel Zhao at rachel.zhao@metp.net.cn