SHANGHAI SOUTH CHINA ALL CHINA - AHKs

Balancing Expatriate Rewards
Expatriates continue to be needed in China
in years of financial crisis. In new corporate
entrants, expatriates are typically managers in
senior level positions, implying high costs to
the company. In the growing business – foreign
companies in the growth stage – there is still a
need for technical skill transfer. In the ‘old China
Hand’ business – foreign companies in the
mature stage – more expats are from the surrounding
Asia-Pacific region and/or on openended
contracts with China-hire cash packages.
In the past three years, the pace of localisation
has increased, and after the financial crisis, premiums
and allowances for many expats were
reduced or completely eliminated. Locally
hired foreigners were situated between locals
Built for Business
It was a full house for another popular ‘Baustammtisch’
session, whose diverse audience
was drawn to the topic by professional and
personal interest. Presenting her recent study
findings, Corinne Abele highlighted indicators
for the demand of German architecture services
in China, how German architects in particular
could contribute, and the highly specific operational
but also attitudinal challenges they face
in China.
The figures made it clear that the Chinese
architecture and building sectors were not a
market in crisis. Although not every foreign architecture
studio will be able to secure a ‘dream
project’ as the now legendary Olympic landmarks,
the National Library or the troubled
CCTV tower, Abele showed that there was still
plenty of opportunity and profit to seize for
foreign architects. Abele identified and broke
down the common discrepancies of expectations
and experiences between foreign architects
and Chinese project owners – and gave an
outright look at what could be done in avoidance
of the resulting pitfalls and in preparation
for a hopefully successful China venture.
Ashley Howlett added his expansive insights
from 23 years in international construction law.
Although, as he pointed out, the WTO didn’t
necessarily improve the situation, he granted
that the industry was rapidly changing for the
better. Foreign-Chinese construction JVs proved
highly problematic and barely successful. More
or less sporadically enforced laws with a lot of
room for interpretation would leave any construction
lawyer frustrated. Developing regulations
remain rather experimental, in favour
of domestic businesses and unpredictable for
foreign players.
and ‘true’ expats, and complaints from Chinese
managers about inequity increased. In fact,
long-term expats feel comfortable with local
packages. Therefore, only 13% of the foreign
companies in China do not have any plan for
expatriate localisation.
China’s social security for expatriates is a hot
topic and new regulations have created the following
development: Foreigners and overseas
Chinese working in Shanghai can now participate
in the city’s social security insurance
scheme. In brief, specified in the employment
contract upon mutual agreement by company
and employee on an individual basis, eligibility
and payment method for the social security
pension follow the same rules that apply to lo-
Construction Roundtable
Howlett vividly illustrated how crucial it was
for foreign architects to pinpoint their niche
on the market, particularly when it came to
new technology they could contribute – one
of the general strengths of foreign designers
and builders. “If you come here to build highrise
apartment blocks, forget it. The Chinese
can build them cheaper, quicker and, well, on
the quality side it’s improving.” His advice
for a successful architecture project in China:
“Be innovative, be valuable, be prepared to
take risks.”
In the architectural loop: Corinne Abele…
…and Ashley Howlett.
Event: Architecture Services and Construction
Law in the PRC
Date: 28 th January 2010
Speaker: Ms. Corinne Abele | Beijing
Correspondent, Germany Trade and Invest;
Mr. Ashley M. Howlett | Partner, Jones Day
Event: 2009 Hewitt Expatriate, China Hire
and Returnee Compensation and Benefits
Study Results Presentation
Date: 2 nd February 2010
www.china.ahk.de
Study Results Presentation
cal Shanghai employees, as do medical and jobrelated
insurance. If the employees leave China
before retirement, they are only entitled to their
individual account balance – they will not benefit
from the social pooling account in which
most employer contributions are deposited.
Speaker: Mr. Fan Sun | Retirement and
Benefits Director North China, Hewitt Talent
and Organisation Consulting
NEW
MEMBERS
BEIJING
For full contact information and company profiles
of our new and existing members please visit www.
german-company-directory.com
Mr. Holger Hanisch
Beijing
' 139 1078-7469
* holger_hanisch@yahoo.com
Mr. David Hiebaum
Managing Director
Mediaman Beijing
Beijing
' 010 8451-3651 ext.878
* david.hiebaum@mediaman.com.cn
www.mediaman.com.cn
Mr. Michael Jaehrling
General Manager
Oakwood Residence Chaoyang Beijing
Beijing
' 010 5995-2862
* michael.jaehrling@oakwoodasia.com
www.oakwoodasia.com
Mr. David Stegnitz
Beijing
' 010 5881-6391 ext.1008
* david.stegnitz@tech-sonic.net
www.tech-sonic.net
Mr. Tan Wee Liat
Chief Representative
SAP Beijing Software System Co. Ltd. Dalian Branch
Dalian, Liaoning
' 0411 8483-6356
* wee.liat.tan@sap.com
2010 April - May 39