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cn December 2010

Journey of a decade
The European Chamber celebrates a milestone anniversary


December 2010

10 President's Foreword

In China
12 Macro
14 Business
15 EU-China

12 ChambEr Updates
16 Chamber news
• "China 2020: The Road Ahead" business

16 conference
• 10th anniversary Beijing gala ball
• Tianjin 5th annual Food and Beverage
• 10th anniversary celebration in Shanghai
• How to protect trade secrets in China
• New members list

22 Global benchmarks
Richard Shentu, managing director of SGS-CSTC
Technical Standards Services, on rising standards
and sustainability

24 All in the design

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

4 December 2010 | EuroBiz
December 2010

26 Growth spurt
Chen Aihua and Laure Deron of Gide Loyrette
Nouel on how China's outbound investment is
both rising and maturing

28 Fraud detection
John Sedgwick of Red Flag Screening on how
businesses in China must be vigilant about fake
employee credentials

30 Cover story History in the making
Looking back on the European Chamber's 10
years in China

36 Regions Wuxi
Wuxi looks to balance technology and tradition


6 December 2010 | EuroBiz
December 2010

38 Information to give
China's philanthropic leaders are aiming to add
transparency to charities

40 Chamber Board
42 Advisory Council
44 China Dining

46 Business Toolkit
48 Company Index

50 Eye on the west

New trade bloc in Central Asia demands attention
from China


8 December 2010 | EuroBiz
EuroBiz magazine is the journal of the European Union Chamber
of Commerce in China, published monthly by SinoMedia Ltd.

Editor: April Fong
Designer: Song Dandan
Design Manager: Frank Zheng
Distribution Manager: Vivien Wang
Circulation Manager: Rebecca Cao
Contributors: Mark Godfrey, David Green, Jessica Li, Zhe Quan
Production Assistants: Christopher Beddor, Kevin Hernandez,
Murray Owen

Director of Sales: Caroline Fontaine
Sales Managers: Felix Deng, Sherry Faller, Obie Gao, Hao Meng,
Nonnie Warren
Accounts Administrators: Ivril Huang, Ralph Wang, Carol Zhao
Tel: (021) 5385 9063

EuroBiz is free of charge. For extra copies please e-mail:
For editorial enquiries please e-mail the editor:

European Union Chamber of Commerce in China

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

EuroBiz | December 2010 9

Presidential Foreword

A milestone year
Dear members and friends,

December is already upon us, marking Paris and Rome.

the end of a momentous and transitional Finally, the European Chamber cele-
year for both China and the European brated its 10th anniversary in November
Chamber. across all of its China chapters. While
For China, 2010 was a year of recovery marking a decade of success in servicing
from the fallout of the global economic its member companies, the festivities
crisis. It appears that Chinese policymak- also included the launch of a new logo.
ers' aim for a post-stimulus "soft-land- The change of our organisation's logo
ing" has been achieved, with sustained embodies the situation and direction of
and strong growth – despite how lending the European Chamber today: looking to
volumes have been winding down since the future while respecting our past.
2009. However, the remarkable success A 10th anniversary is something ex-
Jacques de Boisséson
of transitioning from recovery to growth ceptional. In our organisation's case, this
in 2010 has limited long-term impact, milestone is even more special as we
European Union Chamber of
Commerce in China
compared to embarking on a more sus- reflect on the progress we have made in
tainable growth model. Chinese leaders membership and chapter growth, as well
have discussed this repeatedly in 2010. as quality of service. For the first time
Such a transition will take years, and the ever, the European Chamber has exceed-
necessary foundation for these changes ed 1,500 member companies. Thanks to
are currently being laid out as the 12th this, and through effective management
Five-Year Plan is being drafted. The Eu- by Secretary-General Dirk Moens, the
ropean Chamber is willing to help China European Chamber ends 2010 on firm fi-
meet its goals and looks forward to sub- nancial footing. Our strengthened stabil-
stantial discussion with policymakers on ity will be put to work for members, as
this important set of documents. service quality, visibility and the impact
For the European Chamber, 2010 had of our organisation continues to grow.
several highlights. In April, my prede- I am both humbled and proud to be
cessor Joerg Wuttke, myself and several able to contribute to this success and to
other European business leaders had take the European Chamber into its sec-
the honour of a productive and positive ond decade of existence.
meeting with Premier Wen Jiabao. As the cold approaches and people
In June, the European Chamber start planning their winter holidays, I
launched its 7th Business Confidence take this opportunity to wish all readers
Survey. Based on more than 500 mem- a very merry Christmas.
ber company responses, the survey is
now the most comprehensive and repre- Jacques de Boisséson
sentative document regarding the busi- President
ness environment in China.
The European Chamber launched its
10th Position Paper in September. The
contents of the paper were expanded,
and its voice was strengthened with
clearer examples as requested by Chi-
nese policymakers, a call for unity to
European leaders and the heightened
contributions of our local chapters. Fur-
thermore, the Position Paper was pre-
sented in Europe in an unprecedented
five capitals: Brussels, Berlin, Madrid,

10 December 2010 | EuroBiz

in china


Vice Premier Li calls for China launches national census

faster restructuring China began its census in November, tion base, with millions of migrant
Vice Premier Li Keqiang said greater a 10-day process that saw six million workers moving to urban areas from
efforts must be made to accelerate census takers go door-to-door to the countryside. Although this is
China's economic restructuring in document the country's demographic the country's sixth national census,
order to achieve sustainable develop- changes. The massive head count it will be the first in which people
ment amid global uncertainties. Li, takes place once every 10 years, and are counted by where they live as
who is tipped to succeed Wen Jiabao the 2000 tally put China's official opposed to where their residence cer-
as premier, called for a "deep under- population at 1.295 billion people. tificate, or hukou, is legally registered.
standing" of the proposals for national Over the decade there has been This should make it easier to calcu-
development over the 2011-2015 an extensive shift in the popula- late the true size of China's cities.
period. He said the world economy
is growing slowly and the "structure
of global demand is changing, which sion to inject €444.7 billion into the in the first 10 days of November
puts new pressure on China in its economy may destabilise the global average wholesale prices for 18 types
efforts to stabilise and expand exports financial system. "The major reserve of vegetables in 36 cities rose 62.4
and maintain stable and relatively currency economies should adopt percent year-on-year.
rapid economic growth." Li's remarks responsible policies, thus easing and
were said to reflect a shift in the gov- gradually removing the fundamental China to establish carbon
ernment's economic planning. problems behind foreign exchange trading market by 2013
liquidity," President Hu Jintao said. China may have a carbon trading
World Bank raises China system in place as early as 2013,
2010 GDP growth forecast according to Richard Sandor, who
The World Bank upgraded its 2010 helped found the London-based
growth forecast for China by half a Climate Exchange. "Irony of ironies,
percentage point to 10 percent, but there's a better understanding of
said that Beijing should increase inter- cap and trade in Beijing than in
est rates further to contain inflation- Washington," Sandor told a climate
ary pressure. In its quarterly report, change forum in Hong Kong last
the bank noted China's trade surplus month. Under a cap-and-trade system,
has rebounded sharply and would companies whose carbon emissions
likely continue to grow. It predicts a cross a certain threshold can offset
surplus of €183 billion in 2010, €202 these excess emissions by purchasing
billion in 2011 and €233 billion in HIGH COST: Food prices must stabilise credits from companies that reduce
2012. Earlier this year, China said the carbon by more than a set amount. A
drop in its trade surplus indicated the Extra measures mulled to Chinese official has said that the coun-
economy was already rebalancing and stem rising food prices try is discussing rules to implement a
that substantial exchange rate reform The Ministry of Commerce (MOF- domestic carbon-trading market.
was unnecessary. However, the World COM) may introduce new measures
Bank observed that China has made and work in unison with other China to account for 20% of
only "limited progress" in rebalanc- government agencies to stem growing global energy demand
ing its economy towards domestic inflation. "We would enhance the China will account for more than
consumption. connection between vegetable produc- 20 percent of global energy demand
tion and sales to stabilise supply and by 2035, according to a new report
China fends off US currency prices in the winter and next spring," released by the International Energy
claims at G20 said Yao Jian, a ministry spokesper- Agency (IEA). The IEA's annual
Investors are trimming bets on ren- son. October's consumer price index World Energy Outlook forecasts that
minbi gains following the G20 sum- rose 4.4 percent, the fastest rate in China's energy demand will increase
mit in Seoul where China rebuffed 25 months, leaving the government's by 75 percent between 2008 and 2035
US criticism of its currency regime. full-year inflation target of 3 percent as global demand reaches 16.74 bil-
Beijing responded to US calls for under threat. Food prices have been lion tonnes of oil equivalent by that
faster renminbi appreciation by claim- one of the principal drivers of infla- year. Most of the increase in Chinese
ing that the US Federal Reserve's deci- tion growth. According to MOFCOM, demand will come from the transpor-

12 December 2010 | EuroBiz

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

Death toll from Shanghai

blaze at 58
At least 58 people died after a fire
ripped through a 28-storey apartment
block in downtown Shanghai. The
blaze reportedly broke out at 2:15
BIG COUNT: China's last census was in 2000 p.m. on November 15 and it took
25 fire brigades until 6:30 p.m. to
extinguish the flames. The residential
tation sector. The IEA said oil supply block, which was undergoing external
would reach a peak by 2035, pushing repairs, is located at the junction of
up oil prices to US$113 a barrel in Yuyao and Jiaozhou roads. The State
2009 dollars, or US$204 a barrel in Administration of Work Safety has
nominal terms. blamed the tragedy on unlicensed
welders, illegal sub-contracting and
PBoC raises reserve require- poor management. Shanghai police
ment for big 5 banks have detained 12 people in connec-
The People's Bank of China (PBoC) tion with the fire.
raised reserve requirements for
China's five largest banks by half a
percentage point starting in Novem-
ber, reflecting policymakers' growing
concerns about inflation and excess
liquidity. The reserve requirement
ratio for Industrial and Commer-
cial Bank of China, Bank of China,
Agricultural Bank of China, China
Construction Bank and Bank of Com-
munications rose to 18.5 percent, a
record high. The PBoC announced TRAGEDY: A Shanghai fire causes 58 deaths
the move shortly after China posted a
€20.1 billion trade surplus in October, Wen pays tribute as Shanghai
its second largest this year. World Expo closes
The Shanghai World Expo concluded
Stronger renminbi hurts on October 31 with Premier Wen
Canton trade fair Jiabao paying tribute to the event,
A stronger renminbi and high raw saying that it "truly brought together
material prices discouraged buyers people around the globe." The closing
from attending Guangzhou's China ceremony featured a series of parades
Import and Export Fair (or Canton and performances involving staff
Fair) in November. According to from each pavilion, local volunteers
Canton Fair spokesman Liu Jianjun, and celebrities, including Hong Kong
the event registered 199,266 attend- action film star Jackie Chan. Earlier in
ees, down 2.3 percent from its spring the day, UN Secretary General Ban Ki-
session in April. The show is a key moon joined Wen at an Expo forum
indicator of the mainland's export on urban innovation and sustainable
economy; Liu blamed the increasing development. Ban said Shanghai had
relative value of the renminbi, in- "secured its reputation as one of the
flated raw material prices and labour world's most cosmopolitan ➤➤

EuroBiz | December 2010 13

in china

➤➤ cities." The Expo attracted a 10 months of 2010, investment in of China and would help prepare
record-breaking 73 million visitors, property development reached €421 the bank for further potential mon-
handling an average of 370,000 visi- billion, 36.5 percent higher than the etary tightening. Beijing announced
tors daily. same period last year. stricter reserve requirements on
banks as lenders issued €65.5 bil-
Disney, Shanghai sign de- lion in new loans in October, above
tailed agreement market expectations.
Walt Disney said it has signed
a detailed agreement with local Starbucks to open Yunnan
authorities in Shanghai on the joint coffee farm
operation of a Shanghai Disneyland. Starbucks will set up a coffee farm
The deal – the initial phase of which in southwest China's Yunnan
is expected to cost €2.6 billion province after signing an agreement
– still requires Ministry of Com- with the local government. This will
merce approval, but a broader plan be the coffee chain giant's first self-
was approved by the State Council operated plantation. The plantation
ON TRACK: Beijing-Shanghai rail links laid in November last year. The plan will be based in Yunnan's Pu'er area
includes a 4-square-kilometre theme but the locally-grown coffee beans
Beijing-Shanghai high-speed park, hotels and shopping facilities. will be roasted in the US. No finan-
rail track connected Shanghai's government has already cial details were released but the
The final portion of tracks was laid begun relocating residents in the Yunnan government says it plans to
on the Beijing-Shanghai high-speed area where the park is planned. The increase annual coffee bean volumes
railway on November 15, meaning park would constitute one of the from the current 35,000 tonnes to
the project is now in its last stage. largest-ever single foreign invest- 181,000 tonnes by 2020. Nestle and
At 1,318 kilometres in length, it will ments in China. Kraft also source coffee beans from
be the world's longest high-speed Yunnan province.
railway. Work on the €24.7 billion Sina, Microsoft announce
rail link began in April 2008 and it Messenger-Weibo alliance
is due to open in 2012. Travel time Microsoft and Sina have announced
between the two cities will be reduced a partnership under which Micro-
to approximately four hours from the soft's instant-messaging service will
current 10. Several other high-speed be linked with Sina's microblogging
rail links have since been opened platform. No details were provided
including lines between Wuhan and about when the integration would
Guangzhou, Zhengzhou and Xi'an, begin, but users will be able to link
Shanghai and Nanjing, Shanghai Windows Live Messenger accounts
and Hangzhou. In total, China's with Sina Weibo accounts, allowing
high-speed rail network covers 7,431 them to post across both platforms.
kilometres of track. Microsoft's Windows Live Spaces
blogging service will also be gradu- FRESH: Starbucks to set up Yunnan farm
BUSINESS ally migrated to Sina's blogging
service as the US software giant Gap opens flagship Shang-
State banks deny halting gradually leaves the blogging busi- hai store
developer loans ness. The companies say the partner- Gap, the US clothing retailer,
State-run newspaper China Real ship could eventually be extended opened its first of four planned
Estate Business reported that Indus- to include mobile internet service stores in mainland China in
trial and Commercial Bank of China, collaboration. Shanghai in November. The 1,140
Bank of China, China Construction square-metre flagship, located next
Bank and Agricultural Bank of China ICBC plans €5b rights issue to a newly-opened Apple store on
had not made any loans to develop- Industrial and Commercial Bank of Huaihai Road, is part of the retail-
ers since October. It added that no China plans to raise up to €5 billion er's push to expand sales online and
fresh financing would be issued to in a new rights issue in Shanghai outside of the US, where consumer
the sector for the rest of the year. The and Hong Kong. The rights issue spending remains tepid. Gap will
banks' press offices released state- comes on the heels of stricter capital open another Shanghai store before
ments to the contrary. During the first requirements by the People's Bank the end of the year, while additional

14 December 2010 | EuroBiz

stores opened in Beijing last month. ers for new vehicles
In an attempt to reach customers Volvo plans to hire a team of
outside of Beijing and Shanghai, the Chinese designers, in an effort to
retailer also introduced an online ensure its next vehicle meets local
store, tastes. At a research centre that is
currently being set up in Shanghai's
EU-CHINA Jiading district, the designers will
contribute ideas for a premium
UK, China sign agreements, compact model – to rival Audi's A3
aircraft engine deal and BMW's 1-Series – scheduled for
The UK and China signed agree- release in 2012. Volvo was bought
ments on cooperation in education earlier this year by Zhejiang Geely
and finance, and announced a €1.2 Holding Group, parent company of
billion order for Rolls-Royce aircraft Geely Automobile, China's largest
engines from China Eastern Airlines. independent carmaker. The Swedish
The agreements were made when company wants to double its sales in
British Prime Minister David Cam- China to 800,000 units in a decade.
eron met with Premier Wen Jiabao Volvo may also build as many as
in Beijing last month. The UK and three manufacturing plants in China.
China agreed to deepen ties between
British and Chinese educational
institutions and to study the cross-
listing of exchange-traded funds
in each other's markets. Under the
aircraft engine deal, China Eastern
will order Rolls-Royce's Trent 700
engines for 16 Airbus A330 aircraft.
Cameron's discussion with Wen
included human rights, although the
prime minister didn't directly raise
the issue of jailed Nobel Peace Price
winner Liu Xiaobo.
ON THE GO: Volvo hiring local design team
Airbus lands 100-plane order
from China Metro to open 100 Media
Airbus secured a Chinese order Markt stores in China
for 102 aircraft worth more than Metro will open 10 consumer
€10.2 billion. The deal, which was electronics stores in Shanghai by
announced during President Hu the end of 2012 and add a further
Jintao's visit to France, is the largest 100 outlets nationwide by 2015.
since the €12.5 billion, 160-jet order The German company, which is
placed in 2007. Airbus has launched the world's third-largest retailer,
an assembly line in China – its first debuted with its first Media Markt
outside Europe – as part of efforts to store in Shanghai on November
win market share from Boeing. The 17. At 13,500 square-metres it
€444 million, Tianjin-based facil- is the second largest of the 602
ity assembles single-aisle A320 and Media Markt outlets worldwide.
A319 models for the local market Metro hopes to benefit from ris-
only. A total of 32 planes have been ing demand for TVs and laptop
delivered to customers since June computers in China as domestic
2009. Airbus is predicted to control purchasing power rises. It estimates
45 percent of the Chinese jet market that consumer electronics sales in
by the end of 2010. the country are growing about 8
percent annually and will reach
Volvo to hire Chinese design- €188 billion a year by 2020. ■

EuroBiz | December 2010 15

Chamber News

Looking into the future

European Chamber hosts 10th anniversary business conference

T he European Chamber proud- Mayer, Director General of the State low production and service costs –
ly held its 10th anniversary Council's Development Research Cen- participants argued that these factors
business conference, "China ter Long Guoqiang, Philips' Greater should not make businesses in China
2020: The Road Ahead", in Beijing on China Chairman Patrick S. Kung, as become complacent.
November 5. The conference offered well as Horst Loechel, adjunct profes- For the Chinese economy to shift to
a high-level platform for prominent sor of economics at the China Europe a more balanced growth model, while
policy makers and business leaders International Business School. still contributing to global prosperity,
to share their insights on China's During the conference, speak- many challenges must be overcome.
economic future with more than 340 ers called for mutual understanding For example, financial reforms should
participants. and close collaboration between the be implemented to support economic
It featured keynote speakers includ- EU and China to achieve sustainable development. This would allow for
ing Peter Mandelson, the UK's former growth. They highlighted the efforts greater flexibility in China's exchange
business secretary and former Europe- that China has taken to improve its rate mechanism, as well as more open-
an Commissioner for Trade, Director business environment for foreign ness in the financial services market.
General of the Investment Promotion businesses, such as setting up a legal European business leaders also dis-
Agency for China's Ministry of Com- framework, increasing transparency, cussed key trends in the Chinese mar-
merce Liu Zuozhang, Ambassador and and simplifying administrative pro- ket, including the country's growing
Head of the European Commission cesses. These policies have helped at- middle class, an ageing population,
Delegation to China Serge Abou, and tract foreign direct investment. Fur- the development of China's central
Ardo Hansson, the World Bank's chief thermore, speakers discussed how and western areas, and competition
economist for China. China's opening-up policy has been from local businesses.
A panel discussion among eminent central to the country's economic de- The conference closed with a panel
business leaders and academics fol- velopment, and will continue to have of past and present European Chamber
lowed the keynote speeches. Moder- an impact in the next five-year plan. presidents. Past presidents Peter Batey,
ated by Duncan Innes-Ker, senior edi- Speakers also shared their opin- Ernst Behrens, Serge Janssens de Va-
tor and economist for the Economist ions on how China is an important rebeke and Joerg Wuttke joined cur-
Intelligence Unit, the panel included market, and plays a key role in fu- rent president Jacques de Boisséson to
Schneider Electric's Executive Vice- ture global growth as an emerging reflect on their respective experiences
President of power and Asia-Pacific economy. While the country allows with the organisation. The event ended
business Eric Rondolat, Chief Econo- for a unique business environment on a festive note with a sumptuously-
mist of Deutsche Bank Group Thomas – a large market, with comparatively catered networking event. ■

16 December 2010 | EuroBiz

A star-filled night
The European Chamber's gala ball in Beijing celebrates 10th anniversary

C elebrating its 10th anniver-

sary, the European Chamber
held a gala ball in Beijing on
November 6. The event, titled "Sea
of Stars", was an evening of fun and
Jackson Twinz band, who are widely
considered to be Beijing's premium
live act. With more than 180 lucky
draw prizes for the event, almost half
of the event's guests went home as
Generous support from the ball's
sponsors made the event possible. ■ 

elegance. 10th Anniversary Diamond Sponsors:

More than 400 distinguished guests
from EU member state embassies,
European Chamber member compa-
nies, and other close partner organi-
sations joined the European Cham-
ber for the special occasion.
During the exquisite dinner,
guests were taken on an underwa-
ter "journey" of exotic fish, sharks 10th Anniversary Platinum Sponsors:
and whales, with the help of a sur-
rounding 80 metre-long seamless
screen. This massive screen was
also the perfect way to officially
launch the new European Chamber
logo. 10th Anniversary Golden Sponsors: Beverage Sponsors:
After the five-star meal, guests
took to the floor and danced along
to music performed by LAN Club's

EuroBiz | December 2010 17

Chamber News

Tianjin treats
Tianjin's 5th annual Food and Beverage event celebrates European Chamber

T he European Chamber's event in its Grand Ballroom. The A special congratulations goes out
Tianjin chapter hosted its ambience was relaxed and elegant, to Morten Stenkilde, who won a
5th Food and Beverage Cel- while traditional food from France, one-night stay for two in the Radis-
ebration on October 15. Italy, Germany and other European son Plaza Hotel's presidential suite
The annual event is by far the Eu- countries was served with Torres and a seven-course breakfast with
ropean Chamber's most anticipated wine from Spain and fresh German free-flow wine.
celebration in Tianjin. With more beer. An oversized cake, presented Guests danced the night away to
than 320 guests in attendance this to the tune of Beethoven's "Ode to live music performed by St. Lucia's
year, business leaders from Ipsen, Joy", helped celebrate the European Dee and her saxophonist Jab, as well
Airbus, Siemens, Alcan and Goglio – Chamber's 10th anniversary. as music mixed by DJ Moha. Many
who are also board members of the The festivities also included a thanks to the event's corporate
European Chamber Tianjin chapter best dressed competition and lucky sponsors – including Airbus, Goglio,
– dined alongside guests from lead- draw, with prizes including a TUI Ipsen, Jones Lang LaSalle, Siemens,
ing European companies in Tianjin Yangtze River cruise, Dikara Spa Vestas, Business Tianjin, DK 1308
and nearby areas. treatment, Westin fitness center and the Raffles Hotel – and all of our
The upscale Raffles Hotel in membership and a variety of com- special guests who made the night
downtown Tianjin hosted the plimentary five-star hotel packages. nothing short of magical. ■

GETTING FESTIVE: Gentlemen from Airbus' big family of staff

DIGGING IN: The Tianjin board cuts cake to celebrate the European GORGEOUS GOWNS: Winners of the best dressed women
Chamber's 10th anniversary competition from Airbus and Gurit

18 December 2010 | EuroBiz

Shanghai celebrations
Members in Shanghai celebrate 10 years of the European Chamber

V ue Bar was packed to the hilt

on the evening of November
4, with a merry gathering of
members and special guests celebrat-
ing 10 years of the European Cham-
view of the city – the night was filled
with entertainment.
A special thanks goes out to the
event's sponsors, Mazars and New
Concept Mandarin, who helped make
ber in China. the night even more memorable. ■
Bringing together a diverse range
of companies, entrepreneurs, Chi-
nese government dignitaries and
European consul generals, the event
sought to unite everyone in celebra-
tion of the European Chamber's
growth and success since its found-
ing in 2000.
Combining food and drinks with
retro music, historic photos and a
massive birthday cake – and not to
mention the venue's breathtaking PARTY TIME: Guests enjoyed an entertaining night at the Hyatt on the Bund's Vue Bar

EuroBiz | December 2010 19

Chamber News

Prevention and protection

A step-by-step guide on how to protect trade secrets in China

N early all businesses in all

industries possess trade se-
crets, which are a valuable
and highly useful form of intellectual
property rights (IPR). Unlike intellec-
tual property (IP) that is registered
and has a finite term, trade secrets
theoretically enjoy an infinite term
of protection as long as the trade se-
cret remains just that – a secret. How-
ever, once the information becomes
public, it no longer enjoys any legal
protection. MARK IT: Prevention is the key to protecting trade secrets
Prevention is the golden rule
when it comes to trade secrets. Con- Step 2: Keep it safe the best ways to protect trade secrets.
sider the following steps to protect It is important to remember that
trade secrets in China. once trade secrets become publicly Step 3: Remind employees
known, they can no longer be pro- A typical theft of trade secrets gener-
Step 1: Know your secrets tected. Keeping trade secrets safe ally involves a former employee leav-
A trade secret is any non-public in- therefore involves using a combina- ing the company for a competitor and
formation with commercial value tion of physical, technical and con- leaking secrets to the new employer.
that is  guarded by confidentiality tractual barriers, and implementing The best way to avoid such a situa-
measures. a trade secrets protection policy. Any tion is to include a non-disclosure
Examples of trade secrets include business can and should take simple, agreement in employment contracts.
business models, new online con- sensible precautions. Consider holding exit interviews and
cepts, design techniques, formulas, Simply mark documents as "Con- require leaving employees to return
work flow processes, customer lists, fidential" or lock files away after documents and other potentially sen-
contract terms, marketing strategies, business hours (physical barriers). sitive materials.
and any other information with po- Use passwords and log-in features on Trade secrets  may also  be inad-
tential commercial value. It is impor- documents (technical barriers). Final- vertently disclosed by employees. In
tant to catalogue what trade secrets ly, contractual barriers include non- China in particular, employees may
you may have, rank them and regu- disclosure or confidentiality agree- need a lesson to better understand IP
larly update the list. ments, which are considered one of rights. Periodically remind your em-

New members
Beijing Pearl River Delta Solutions
Aellio Web Agency EPCOS (Zhuhai FTZ) Asecorp (Shanghai) Business Con-
Beijing Scandinavian Furniture Fazhilong Sports Production (Shen- sulting
Couleurs De Vie zhen) Berlitz International
Novartis Country Organization Star Prototype Manufacturing
Resources Global Professionals TüV SüD China Tianjin
Zhongshan Winco Industries Chaoyang General Construction
Chengdu Engineering Company
Meineke Auto Center Shanghai Wellington College International
Achats Service Global Procurement Tianjin

20 December 2010 | EuroBiz

ployees what kind of information is to ensure they are complying with Key to protection
proprietary, how it should be kept your trade secrets protection policy. Prevention is the key to protecting
confidential, and what your expecta- trade secrets. Establish an internal
tions are. Step 5: The secret is out (employees) and external (third par-
China provides for administra- ties) management system of trade
Step 4: Third parties tive, civil and criminal protection for secrets using a combination of physi-
Another common way trade secrets trade secrets, but  by the time you cal, technical and contractual barri-
are disclosed is during negotiations have to consider legal action through ers. A few simple preventative steps
with business partners. Many for- any one of these channels, your trade can go a long way to avoid intention-
eign companies in China find it dif- secret and commercial advantage al or unintentional trade secret leaks.
ficult to insist on a pre-negotiation may already be lost. The China IPR SME Helpdesk is a
non-disclosure agreement with Chi- Litigation is the primary chan- European Commission funded proj-
nese parties, who often claim a hand- nel for pursuing a remedy for the ect that provides free, practical, busi-
shake between two friends should be misappropriation of trade secrets in ness advice relating to China IPR to
enough. China. If successful, the court can European SMEs. To learn about any
When confronted with this sce- require the infringer to pay damages aspect of intellectual property rights
nario, it is important to know when and stop using the trade secret. Un- in China, visit www.china-iprhelp-
to walk away. The party that refuses like in many other countries, China For free advice on China IPR
a reasonable request for a mutual provides an option of administrative for your business, e-mail enquiries@
non-disclosure agreement is also the enforcement for simple trade secret Helpdesk ex-
party that is most likely to misappro- cases in addition to litigation. In se- perts reply within seven working
priate trade secrets. rious cases where losses total more days. The China IPR SME Helpdesk
Even after an agreement is signed, than RMB500,000, the infringer may is jointly implemented by DEVELOP-
make sure you continue to monitor be fined and/or imprisoned for up to MENT Solutions and the European
your partners, suppliers or licensees three years. Chamber. ■

EuroBiz | December 2010 21


Global benchmarks
Richard Shentu of SGS-CSTC, an inspection and certification services provider,
on rising standards and evaluating sustainability

Richard Shentu is the managing di- Q: What kind of challenges is SGS-

rector of SGS-CSTC, a global firm spe- CSTC facing in China?
cialising in inspection, verification, A: We were the first special testing
testing and certification services. He company to enter the Chinese mar-
is also SGS Group's global manager ket. But in recent years there have
of automotive testing and services. been more newcomers in this sector,
Since joining SGS-CSTC in 1990, which has resulted in stiff competi-
Shentu has held a series of leadership tion for finding talent. As such, our
positions, including branch manager, company is spending a lot of effort
operations manager of the consumer on training and establishing an ef-
product division, director of consumer fective retention scheme. The other
testing and director of SGS China and issue we've seen is that some small
Hong Kong's strategic business unit. companies are issuing fake SGS-
Shentu earned a bachelor degree in CSTC reports and certifications. To
knitting engineering at Tianjin Indus- combat this, we have been working
trial University and an EMBA at the on enhancing our IT system and of-
University of Texas. He spoke to Euro- fering e-solutions, where customers
Biz about changes in manufacturing Richard Shentu, managing director of SGS- can verify their test results on our
standards among Chinese companies, CSTC in China website. Customers can take their
and how inspection and certification hard copy report, input the report
services can help firms reach sustain- have to keep a close eye on changing number, and see if it's fake or real.
ability goals. norms or regulations in overseas
markets, especially ones that the Q: The global market is increasingly
Q: In your 20 years' involvement in company wants to ship to. Compa- turning its attention to issues of en-
the testing and certification indus- nies can register themselves with vironmental protection and energy
try, what changes have you seen relevant organisations to receive efficiency. Has SGS-CSTC seen a rise
with China-made products? updates on international standards. in companies seeking green solu-
A: The first thing we've seen among SGS-CSTC also provides this kind tions and consultancy services?
big manufacturers in China is that of information, and since we have a A: Environmental protection has
their quality is improving. More big network with presence in many become a really hot topic in recent
products are being shipped over- countries, it's easier for us to keep years, especially among overseas buy-
seas, so obviously more companies abreast of changes. Even before ers and consumers, and SGS-CSTC
must adapt to international stan- regulations are effective, we have has been increasing its services to
dards. We see ourselves as a bridge technical staff who are compiling help clients find sustainable solu-
between Chinese manufacturers and first-hand information regarding the tions. For example, we have been
international standards. Our job is changes and we communicate this working with one renowned Chinese
to increase awareness about how in- information to our clients. Another seafood producer on developing car-
ternational standards are changing issue is related to how companies bon footprint evaluations. Exporters
– mainly through training, providing deal with their suppliers. Some com- have been making technical requests
testing services, technical newsletters panies may have a good quality con- for this and manufacturers must be
and offering consultation services. trol system, but they might not focus prepared, too. We have a lot of other
on supplier management. It's impor- projects for green solutions in the
Q: How can companies ensure that tant to spend some effort on manag- pipeline.
their products are up to interna- ing suppliers, as it will certainly af-
tional standards? fect the quality of a manufacturer's Q: How does SGS-CSTC conduct its
A: Awareness is very important. You product. carbon footprint evaluations?

22 December 2010 | EuroBiz

A: We send our engineering team to business-to-business requests, where restricted substances an issue in
look through the whole production companies ask us to do testing for China?
process and evaluate each stage – them. But in the last two years – es- A: I think it is a big issue. The most
including the overall life cycle and pecially after the milk and melamine challenging part is related to a lack
supply chain of the product. They scandal – we've received a lot of in- of control in the production and dis-
look at carbon emissions and pin- quiries from consumers themselves tribution of hazardous chemicals.
point certain stages where this can regarding food products, and health Based on our testing, we've found
be reduced. and beauty products. that from time to time, products have
residue from harmful substances.
Q: How much do you think Chinese Q: How popular are auditing servic- Recently there was a major problem
consumers consider product safety es among Chinese companies versus with heavy metal residue found in
and green standards when making multinationals in China? cigarettes. This is probably more of
a purchase? A: The largest proportion of audit re- an issue related to regulation, rather
A: For Chinese consumers, sustain- quests we receive are still from over- than the manufacturer being at fault.
ability is not a big concern. However, seas customers. This is because, nor-
there has been a growing concern mally, they are more concerned with Q: How much regulatory work
about the quality and safety of con- environmental and ethical issues needs to be done in order for Chin
sumer products, as the media has than domestic companies. That said, a to meet various international stan-
paid more attention to these issues. we also help Chinese brands with im- dards?
In particular, Chinese consumers proving quality, and managing their A: There's a lot of work to do and
are paying special attention to prod- suppliers better. These particular it's not only China's responsibility.
uct safety, especially with food and certification services are still usually Standards from various countries
toy products. This is increasing ev- driven by overseas buyers. need to be harmonised to lift tech-
ery day. In SGS-CSTC's commercial nical barriers and facilitate interna-
division, we normally only receive Q: To what extent is the use of tional trading. ■

EuroBiz | December 2010 23


All in the design

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

Fabian Furrer is president of the in- it didn't want a drastic change. It still
ternational department at Dongdao, had to reflect the previous logo and
a leading brand design and manage- give it some recognition.
ment agency in China. The Beijing-
based firm was founded in 1997, and Q: How do you think the new logo
has developed brand identities for represents the European Chamber?
companies like Air China, Sina and A: Unlike the old logo, which fea-
various Chinese government minis- tures the flags of China and the EU,
tries. Originally from Switzerland, the new version has stronger red and
Furrer previously helped develop the blue colours to represent the two
Chinese brand of Swiss-based Hol- sides, while also reflecting the seri- Q: How does designing a brand for
cim, a Fortune 500 supplier of build- ousness of the European Chamber. a non-profit organisation compare to
ing materials, and also served as ex- We actually pinpointed the exact providing services for a corporation?
ecutive director of the Swiss Chinese colours from the official flags. The A: The design process is the same.
Chamber of Commerce in Beijing. He colours are also shaded and overlap, You still need to meet and gain an un-
spoke to EuroBiz about how Dongdao which represents Europe and China's derstanding of what an organisation
developed the European Chamber's close cooperation in certain areas. On or a corporation wants, and pay the
new logo, and what the new image the other hand, the colours do not same kind of attention to both enti-
represents. mix, clearly illustrating China and ties. However, with many non-profit
the EU's respective independence. organisations you need to go to the
Q: Why was it necessary to change The logo's circle of stars represents next level and provide support on
the European Chamber logo? the unity of both China and the EU, how to use the logo in various appli-
A: I believe the previous logo served while the single, enlarged star on the cations. For example, it's a problem if
its purpose well – and did so for a de- top right corner represents China. you have nice logo, but all the differ-
cade. The initiative to update the logo Implicitly, the stars also refer to the ent chapters are utilising it different-
came within the European Chamber European Chamber as a platform of ly. Big companies, however, usually
itself. The organisation has evolved exchange between the China and the have sufficient funds to come up with
and increasingly become a major European countries, with many com- their corporate identity, along with
voice in China for European interests, mon visions. handbooks on how to manage them.
and therefore rose in significance and
importance. Companies and organi- Q: Dongdao's slogan is "European
sations change over time, and so does fashion with direct Far East price."
the necessity to adjust those changes How are you able to balance these
in branding strategies. two features?
A: Dongdao's chairman, Xie Jianjun,
Q: How did Dongdao come up with has stressed the importance of hav-
the European Chamber's new logo? ing an international mindset since he
A: Actually, the process began last first founded the company. His phi-
year when the European Chamber losophy mainly stems from the fact
approached Dongdao to design the that he was in the first generation of
logo. When I started my new role, I graduating students at the China Cen-
arranged a meeting between the two tral Academy of Fine Arts, where his
sides. This was very important be- art and design education in the 1990s
cause we needed to understand the had heavy Western influence. At the
European Chamber's design require- same time, compared to major for-
ments and the ideas behind redoing eign players in the industry, I think it
the logo. One of the key issues the Eu- Fabian Furrer, international department takes a Chinese player to understand
ropean Chamber identified was that president of Dongdao the needs of the domestic market. ■

24 December 2010 | EuroBiz


Growth spurt
China's outbound investment is both rising and maturing
By Chen Aihua and Laure Deron

I n the last two years, the development

of Chinese outbound direct invest-
ment (ODI) has stepped up signifi-
cantly. This is partly because policy-mak-
ers swiftly adapted the legal framework,
ODI among 7,000 Chinese enterprises
in 2007. As such, China is now the fifth-
largest global investor, up from its 12th-
place ranking two years ago.
Some of the ODI comes from private-
allowing the country's massive €1.8 tril- owned enterprises which invest abroad
lion of foreign reserves to be utilised at a with business-driven agendas – such
time when many economies are under a as developing new markets or seeking
capital crunch. lower production costs. Many expect, for
China delegated the authority to ap- example, that recent workers' demands
prove outbound investments to the Min- will eventually lead to an increase in
Chen Aihua is an istry of Commerce's (MOFCOM) provin- wages and production costs in China.
associate at Gide Loyrette cial agencies, and refined guidelines for According to a Nottingham Universi-
Nouel in Beijing. Her administrative procedures in 2009. Reg- ty study, private firms that lack access to
specialties include mergers ulatory conditions were widened, allow- state-backed credit channels are invest-
and acquisitions, foreign
ing foreign currency to be released for ing overseas to take advantage of funds
direct investment and
overseas investment and financial tools in international capital markets. Green-
corporate law.
– such as the credit-support mechanism, field investments, with their ensuing de-
or the reimbursement of incurred fees in velopment of sales channels abroad, are
certain strategic industries – to be more preferred methods of investment.
readily available. At the same time, Chinese companies
Although fewer regulations were im- are increasingly willing to embark on
posed in 2010, several government agen- global mergers and acquisitions (M&A).
cies reaffirmed their willingness to help This is a result of their growing experi-
Chinese companies invest abroad. The ence and a move away from some of the
State Administration of Taxation, for rigid management methods that led to
example, announced some measures to high-profile failures. Chinese electron-
adjust tax policies, standardise tax pro- ics manufacturer TCL, for example, lost
cedures and strengthen tax treaties. In €150 million as a result of its acquisition
October 2010, the State Administration of Thomson Electronics.
Laure Deron is an
of Foreign Exchange also launched pilot Companies in China now pay great-
associate at Gide Loyrette
Nouel in Beijing. She is
policies in selected provinces that al- er attention to post-deal management.
a member of the Paris lowed export earnings to be deposited in There is greater emphasis on integrat-
Bar and her practice overseas bank accounts, instead of being ing the target company by keeping the
mainly focuses on foreign repatriated to China. local team and using professional advi-
investment, international sors throughout the process. As one CEO
restructuring, and mergers Making changes said to us before signing the agreements
and acquisitions. The result of these changes have been for an important acquisition: "We don't
impressive: MOFCOM figures show want a situation where we purchased a
that China's ODI totalled €41.6 billion reputable restaurant but could not retain
in 2009, while 12,000 Chinese enter- any of the good cooks."
prises invested in 177 nations and re- The increase in M&A transactions is
gions worldwide. This is a substantial mostly a result of a massive flow of state-
increase from the €19.5 billion of total driven ODI. The above policies have par-

26 December 2010 | EuroBiz

ticularly benefited state-owned enter- ernment on Rare Earth Elements
prises, which form the vast majority (REE) initiated at the end of 2009
of China-based multinationals and created fears that China will manage
overseas investors. Their main moti- its strategic assets in an increasingly
vation for going global is usually to protectionist manner. The shortage
acquire strategic assets like valuable in REE could further weaken produc-
technology, knowledge and access to tion companies abroad, resulting in
natural resources. a greater number of available targets
for Chinese ODI willing to trade a
Target regions guaranteed source of supply for a
Asian countries are the preferred des- Chinese stake.
tinations for ODI. However, accord- China's business community, which
ing to a recent KPMG report, large prioritises economics and not politics,
companies with annual revenues of reliable regulatory environment. is aware of European concerns over
more than €110 million are also look- The noticeable rise of China as the sudden increased inflow of Chi-
ing to Europe for future investments. a key world investor has been met nese capital. The country's outbound
In the EU, the China Council for the with mixed feelings. For example, investors are therefore anxious to be
Promotion of International Trade some argue that the recent signing seen as willing to learn from past mis-
found that Chinese investors mainly of a protocol to stimulate Chinese takes, demonstrated by management
target Germany, France and the Unit- investments in Greece is an attempt improvements and a willingness to
ed Kingdom. That said, they realise by China to use its financial might to adapt to local environments. Mean-
that more recent member states also garner EU support for the country's while, China's business leaders aim
provide opportunities by granting global political ambitions. for sustainable development – all
easier access to a unified market with At the same time, the tightening the while hoping to alleviate worries
a single currency and a highly-valued of export rules by the Chinese gov- about their global ambitions. ■

EuroBiz | December 2010 27


Fraud detection
Businesses in China must be vigilant about fake employee credentials
By Richard Bensberg

A nyone who has browsed the

stalls of Beijing's Silk Market or
Nanjing Road West in Shanghai
can see that China is synonymous with
all kinds of knock-offs and fake goods.
ating new fraud methods. Though they
are quickly shut down when discovered,
the diploma mill business model is gain-
ing traction in China. Certificates, for ex-
ample, are being produced along with an
Businesses face the same problems in online system that verifies the authentic-
the country too. As such, the recruitment ity of the purchased "degree."
sector must be vigilant that it does not In India and the UK, there are compa-
fall prey to a similar fate, where fake cre- nies which do nothing else but provide
dentials and falsified applications domi- fabricated employment information, or
nate the job market. payslips as proof of employment for job
During the summer, in an incident applicants. Businesses in China should
Richard Bensberg is
that did much to damage the image of be prepared for the emergence of simi-
co-founder and managing
director of Red Flag
China's business elite, the former presi- lar trends and have processes in place to
Screening, a firm that dent of Microsoft China and current maintain a reputation of good business
provides pre-employment CEO of New Huadu Industrial Group, practices.
and company background Tang Jun, came under fire over claims
screening services that he fabricated his PhD credentials. Proper pre-screening
throughout the Asia His doctorate was obtained from the Fradulent credentials are increasing as
Pacific region. For more Pacific Western University, a private demand for cross-border talent and la-
information please visit institution in Hawaii accused of being bour migration throughout Asia rises.
www.redflag-screening. nothing more than a "diploma mill" that In addition, greater numbers of students
offers degrees for a fee. The school had are returning from abroad with a wider
not attained accreditation from a reliable range of qualifications from different in-
authority to confirm the quality of post- stitutions.
secondary education. These developments mean that it is
Following the incident, suspicions becoming much harder for all employ-
about Pacific Western University led to ers, from large multinationals to small
some commentators calling into ques- local businesses, to verify that a can-
tion the educational background of other didate's qualifications and experience
Chinese public figures who also gradu- are genuine. In China's competitive job
ated from the same or similar unaccred- market, it is crucial that businesses have
ited overseas universities. sufficient procedures to identify fake cre-
dentials of untrustworthy, insufficiently
New forgery methods skilled applicants and to ensure a good
Fake institutions aren't just an overseas candidate is not overlooked.
problem, though. Advertisements offer- Running an internet search for pre-
ing diploma certificates and qualifica- vious employers, or checking the can-
tions for a fee – with anonymous email didate's profile on social media are not
addresses and phone numbers – are ap- reliable as a sole basis for verification.
pearing at an alarming rate on buses and Candidates can easily fabricate online in-
subway trains in China. formation prior to application. Further-
Meanwhile, forgers are becoming in- more, reference letters, service letters
creasingly aware of companies' require- and payslips provided by an applicant,
ments to screen their employees and cre- and even official-looking company web-

28 December 2010 | EuroBiz

sites, can be fabricated. sionals, difficulties also lie in keeping Running an internet
However, there are some initial, up with forgers' latest techniques. search for previous
basic steps that managers or hu- Completing criminal record, credit
man resource professionals can take. or civil litigation checks on a global employers, or checking
Be wary of companies you haven't scale requires specific knowledge the candidate's profile
heard of, and check with the AIC and paid access to databases, as well on social media are not
(Administration of Industry and as knowledge of the different data
Commerce) to verify whether the privacy and employment regulations reliable as a sole basis
company does legally exist. Probing in different countries. Time restric- for verification
interview questions can also be used. tions, time zone or linguistic issues
For example, employers should ask may also mean that effective back-
applicants which office the candi- ground screening processes are not
date worked in, the address, direc- completed or conducted at all – leav- standardised procedures. All reports
tions, number of employees, and the ing potentially crucial negative infor- undergo strict quality control pro-
name and phone number of their mation concealed. cesses, and are verified to avoid any
line manager. potential legal issues that may arise
But in reality, the above steps can Preventive measures if candidates claim not to have been
only create or alleviate suspicions on Companies should take steps to en- judged equally during the recruit-
the authenticity of the candidate's qual- sure that background checks are fair ment process.
ifications and experience. Carrying out and independent of recruitment, As the huge labour force in China
thorough background screening is the in order to avoid issues of bias or gradually migrates in vast numbers
only way to confirm suspicions. conflict of interest. Professional pre- towards more knowledge-based roles
While meticulous background employment screening companies in the commercial sector, the compe-
screening can be a time-consuming use experienced researchers who tition for jobs – and the risks associ-
burden for human resources profes- are trained to operate according to ated with them – will increase. ■

EuroBiz | December 2010 29


History in the making

Looking back on the European Chamber's 10 years in China
By April Fong, Jessica Li and Zhe Quan

30 December 2010 | EuroBiz

S ince its inception in 2000, the
European Union Chamber of
Commerce in China has en-
deavoured to be a voice and leader of
European businesses in the country.
Growing from 51 member compa-
nies to more than 1,500 today, the
organisation's authority and influ-
ence has risen substantially – proven
also by its 10 annual position papers.
On the European Chamber's 10th an-
niversary, EuroBiz looks back at the
organisation's exciting journey with
its past and present presidents.

With Beijing gearing up for its entry
into the WTO, and business leaders
from both Europe and China prepar-
ing for deepened integration, 2000 VOICE TO BE HEARD: Peter Batey is one of the European Chamber's founding fathers
was an appropriate time to create the
European Chamber. Quite simply, it ners. "The working groups were tied recalls borrowing staff from his own
was becoming increasingly impor- together and form the engine room company to help with the publica-
tant for industries across Europe to of the European Chamber. An organ- tion. "The final text was hammered
pull together. isational superstructure was then put out over a weekend at my flat, with
The Chamber was established on top to represent all of the working the full team in attendance," he says.
with Jean-Francois Fichaux, Peter groups – as a whole – properly." "At about 60 pages, the position pa-
Batey, Serge Janssens de Varebeke Batey, who was also previously in- per was a small fish compared to the
and Ernst Behrens at the helm, volved with establishing the British comprehensive volume that is pub-
while European Commission repre- Chamber of Commerce in China, still lished annually now."
sentatives provided crucial support. remembers the humble beginnings Still, it was just what the organi-
Batey – who took over as Chamber of the European Chamber's annual sation needed to build its public pro-
president in the summer of 2001 af- position paper, European Business file. The position paper was launched
ter the organisation's first president, in China. Working groups were each at a press conference attended by
Fichaux, was posted to Jakarta – says asked to produce a summary of is- the EU Ambassador to China, and
European industry working groups sues affecting their respective sec- subsequently presented at the vice-
were key to the organisation's estab- tors, and to make recommendations ministerial level to China's Ministry
lishment. on how to maximise opportunities of Commerce, the State Planning
"We used a bottom-up approach," from China's market opening. Commission (now the National De-
says Batey, now chairman of finan- While the Chamber was still small velopment and Reform Com-
cial advisory firm Vermillion Part- and in its development stages, Batey mission), the State Economic ➤➤

2001 Peter Batey is elected

2002 Ernst Behrens is elected president.
president. The first position In the same year, the Chamber
paper (left) is published with launches a Shanghai office, the
input from 14 working groups. Advisory Board, and a monthly
magazine, EuroBiz.
Membership: 220
Membership: 300

EuroBiz | December 2010 31


➤➤ and Trade Commission, the Chi-

na Council for the Promotion of In-
ternational Trade, the People's Bank
of China and the Legislative Affairs
Office of the State Council.
Furthermore, its conclusions were
shared at a large dinner attended by
more than 300 European business
leaders, including Pascal Lamy, who
was the European Commissioner for
Trade at the time.
"We began to develop a relation-
ship with the Chinese government
and heightened our media profile,"
Batey says. "We realised that we not
only had to formulate our positions,
but communicate them effectively."

The next challenge in the Chamber's
formative years was to lay down
organisational building blocks – de-
spite having limited finances and
only a small pool of members.
"The establishment of the EUCCC UNITING FORCE: Ernst Behrens led the Chamber through a period of financial stability
was not an easy thing to do because
the national chambers feared they and in return were able to meet with in the Philippines from 1995-1997
would lose influence. There was a European political leaders on visits and was president of the German
bit of resistance," says Behrens, who to China. Chamber of Commerce in China
served as the organisation's third With financial support from the when it was first formed in 1999.
president from 2002 to 2004. advisory board, the organisation "I am a convinced European," Beh-
Members did not want to pay two gained greater influence – using ad- rens says. "I realised, having been
fees to both national chambers and ditional funds to secure office space president of the German Chamber,
the European Chamber, making it and professional staff, as well as pro- that the quality of change and voice
difficult to employ professional staff. viding higher-quality services. The you can have as one single national
To combat the problem, Behrens advisory board has since grown to 27 state is very limited. If you want a
created an advisory board of 10 key companies and membership contin- voice for your industry, you need a
European businesses. Companies, in- ues to rise. chamber that is united."
cluding Siemens (of which Behrens Before his tenure at the European
was CEO at the time), made an extra Chamber in China, Behrens served as Growth
contribution to be part of this board, president of the European Chamber Building on momentum from the

2003 The Chamber launches its

2004 Serge Janssens de Varebeke is
annual Brussels Circuit to elected president. The Nanjing
present the annual position chapter opens.
paper in Europe.
Membership: 500
Membership: 350

32 December 2010 | EuroBiz

built a strong team of experienced
staff and young, energetic graduates.
"We hired young, dedicated busi-
ness managers who monitored dif-
ferent working groups, and helped
out with meetings and various issues
to improve the quality of chamber
operations," says de Varabeke, who
has been chief representative of For-
tis Bank Beijing since 1999.
This, he says, helped bolster the
Chamber's service quality, putting it
in a better position to face problems
that were emerging with the slow-
down in membership growth leading
up to the global recession.

Despite the threat posed by the
global economic downturn, Joerg
Wuttke, who became the European
Chamber's fifth president in 2007,
brought the organisation's visibility
to new levels. Seeking to deepen en-
LEADERS: Serge Janssens de Varebeke meets with former Minister of Commerce Bo Xilai gagement with both the media and
the Chinese government, Wuttke
European Chamber's strengthened The organisation was also able to helped the Chamber ignite pivotal
financial situation, Serge Janssens hold a series of large-scale events, discussions about European and Chi-
de Varebeke became president co-organising the EU-China Summit nese business issues.
in 2004 and led the organisation in Beijing in 2005, an appreciation "I think, as a chamber, if you
through a period of strong growth: dinner for China's Minister of Com- are just doing diligent work behind
Within three years, five new offices merce Bo Xilai in 2006, as well as the closed doors, then members don't
were opened in Nanjing, Chengdu, first Shanghai gala ball in May 2005 really see your achievements," says
Tianjin, the Pearl River Delta and and a charity ball in Beijing in No- Wuttke, chief representative of Chi-
Shenyang. Meanwhile, membership vember 2005. na for BASF.
rose from 369 to more than 1,000. Aside from being credited for the "My goal was to raise our pro-
De Varebeke, the Chamber's Chamber's rapid growth, de Vare- file, where we could be seen as good
longest-serving president, says beke also focused on improving the enough to be on the front page of the
the expansion could not have oc- organisation's operations. Hiring Financial Times. The point was to be
curred without the financial stability dedicated business managers to run an active group, where members feel
brought about by his predecessor. the working groups, for example, he proud to be involved because ➤➤

2005 Chengdu and Tianjin chapters

2006 Pearl River Delta and Shenyang
open. In the same year, the chapters open.
Chamber hosts the first
European Ball and co-organises Membership: 1,000
the EU-China Summit in China.

Membership: 700

EuroBiz | December 2010 33


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

➤➤ we are a crucial organisation state, nor an unstoppable monolith. bringing forth more content to the
that people listen to." Instead, Europe needs to respect Chi- business community – thus provid-
Wuttke – who also served as chair- na's strengths, understand its weak- ing additional opportunities for face
man of the German Chamber from nesses and take on the many oppor- time in the public arena.
2001-2004 – believed that a higher tunities its rise offers." Wuttke's strong voice in the me-
media profile had to be built upon In November 2009, the Chamber dia was also seen in the spring of
facts, integrity and message consis- published its first business survey, 2009, when he began raising con-
tency, while also staying away from "Overcapacity in China - Causes, cerns about Chinese protectionism
"China bashing." Impacts and Recommendations", in the wind turbine industry.
"My motto has always been, 'Don't an industry-led report on the causes "After I spoke up, there was a
preach. Focus on the issues,'" he says. and effects of overcapacity across six massive campaign among the Chi-
"To engage effectively with China, key sectors. Publishing a survey, in nese media, where they argued that
it's important to understand that addition to the annual position pa- protectionism was not happening.
it is neither a fragile authoritarian per, meant that the organisation was International media were also very

2007 Joerg Wuttke is elected

2008 IPR Helpdesk is created. In the
president. The Shenzhen office same year, 11 high-level ministerial
opens, expanding the Pearl meetings between the Chinese
River Delta chapter. government and European
Chamber are held.
Membership: 1,100
Membership: 1,300

34 December 2010 | EuroBiz

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

Looking forward
Working for Total, a multinational
energy company, Jacques de Boissé-
son has been posted to a variety of
places, including Paris, the Middle
East, Latin America and now China.
Since arriving in 2005, de Boisséson
says the country has offered count-
less exciting experiences.
"It's been the most different from
all the other countries I've been in.
It's great to be in this country at this
time, when China is reshaping the
world," de Boisséson says. "And one
of the most important features of
this reshaping is the relationship be-
tween China and Europe."
As such, de Boisséson – who first
got involved with the European
Chamber three years ago as an ex- NEW ERA: Jacques de Boisséson meets with Chinese Premier Wen Jiabao
ecutive vice-president – believes the
Chamber has a pivotal role to play in Chamber advocates. are the best on-the-ground source
China's global impact as he leads the In April, for example, de Bois- of information for European policy-
organisation into its next decade. séson, Wuttke, and several other makers. Brussels has a distant view
"I have the privilege of leading the European business leaders met with of China."
European Chamber at a time when it Chinese Premier Wen Jiabao. A few As he leads the organisation into
is already working well, and sound in months later, the Chamber launched its next era, de Boisséson says he will
all its dimensions," he says. its 10th position paper, presenting it continue to strengthen it as an au-
Since taking on his presidential not only to European leaders in Brus- thoritative voice on European busi-
role at the end of April, de Boissé- sels as in previous years, but also in ness in China.
son has concentrated on building Berlin, Madrid, Paris and Rome. "Our target in the next decade is to
upon the momentum of the organi- "We really have to share our expe- be seen as an entity that says things
sation's strengthening voice, further riences in China with European lead- for the benefit of China and our
increasing membership and also ers," de Boisséson says. members. This will be the best way
boosting the impact of what the "We have an impact because we to improve the business climate." ■

2009 The study, “Overcapacity

2010 Chinese Premier Wen Jiabao meets
in China-Causes, Impacts with a delegation of European
and Recommendations”, is Chamber senior representatives.
published. The Chamber has 20 Jacques de Boisséson is elected
ministerial-level meetings with president.
the Chinese government.
Membership: 1,500
Membership: 1,400

EuroBiz | December 2010 35


Fuelled with new energy

Wuxi looks to balance technology and tradition
By Zhe Quan

W uxi is a city of many

names. Known liter-
ally as "without tin" and
nicknamed the "Pearl of Lake Tai",
the southern city in Jiangsu prov-
ince is also called "Little Shanghai"
for its rapid economic development
and proximity to its eastern big
While its rapid economic and
technological development today re-
flects the growing power of China's
second-tier cities, Wuxi's progress
is often overshadowed by famed
neighbors such as Shanghai, Nan-
jing and Suzhou. Yet, Wuxi's prog-
ress is no less impressive: In 2009
it was one of China's top 10 cities in
terms of GDP growth.
Much of its economic might can TRADITIONAL BEAUTY: The city "without tin" is known for historical tourist attractions
be attributed to the fact that Wuxi
has risen as one of China's premium tal of €18.7 billion. and creativity."
cities to do business. Sixty-two per- In addition, the Wuxi New Dis- The city's efforts and the building
cent of the city's GDP can be attrib- trict (WND), built in 1992 in a sub- of WND have helped propel Wuxi
uted to its 180,000 privately-owned urb, is a major regional industrial to become one of China's leading re-
companies. The textile industry tra- park focusing on precision machin- newable energy hubs.
ditionally dominated a large portion ery and electronics. An export pro- Local firm Suntech Power, for ex-
of the economy, but now, the city is cessing zone, located within the ample, is the largest manufacturer
gradually shifting its attention to- WND, offers free customs clearance of crystalline silicon photovoltaic
ward R&D, as well as high-tech in- and preferential foreign currency modules in the world and current-
dustries. management programs as part of ly delivers solar products to more
Wuxi's efforts to encourage and at- than 80 countries. Furthermore, the
Investors flood in tract foreign investment. Wind Power Science & Technology
In recent years, Wuxi has attracted "In recent years, the Wuxi New Industrial Park, located in the Huis-
many foreign giants such as General District has changed its train of han Economic Development Zone in
Electric, IBM, Siemens and Toyota. thought by supporting lots of local northern Wuxi, focuses on R&D as
Conveniently positioned on the Yang- enterprises with competitive tech- well as manufacturing new energy
tze River, the city offers a comprehen- nologies," says Haidong Liu, prod- equipment and components.
sive transportation network consisting uct development director at  MEM- Wuxi is also the country's lead-
of air, water, rail and expressways to SIC Wuxi, a company specialising ing producer of pharmaceuticals,
facilitate the flow of people and goods in semiconductor sensors and sys- with companies such as Wuxi Phar-
coming in and out of the city. As of tems. "The city is heading in a really matech, which focuses mainly on
2009, 76 Fortune 500 companies from good direction, and the industrial laboratory services, manufacturing
11 countries had invested in more park is setting an example of how and medical device outsourcing. In
than 100 projects in Wuxi worth a to- small businesses have fresh ideas 2007, the company acquired Ap-

36 December 2010 | EuroBiz

pleTec Laboratory Services, a US plant spills caused a water contami-
pharmaceutical firm, and then pro- nation crisis, sparking a blue-green
ceeded to gain international atten- algae bloom in Lake Tai. Much of
tion with an initial public offering the lake habitat was destroyed, while
on the New York Stock Exchange in water turned flourescent green, pu-
the same year. trid and was rendered undrinkable
"It has been very rewarding for for several days. The dangerous acci-
the Wuxi government to change dent tainted Wuxi's vibrant natural,
its economic infrastructure from ecological image – prompting the
traditional industries, to more val- national government to pinpoint
ue-added industries such as phar- Lake Tai's clean-up and restoration
maceuticals," says Wei Zhang, a as a national priority.
management professor at China Eu- "The Wuxi government poured
rope International Business School. in a lot of effort and money to im-
"The city will not only be able to prove the conditions of Taihu Lake,
minimise pollution by incorporating GROWING UP: Wuxi reflects the growing and the waters have indeed im-
more high-tech industries and ab- power of China's second-tier cities proved greatly," says Deane Dai, di-
sorbing a broader knowledge-based rector of sales and marketing at the
economy, but it can also help these a tourism hotspot. The city draws Doubletree by Hilton Resort Wuxi
industries develop into a cluster." millions of visitors each year to at- Lingshan.
Despite its immense efforts to- tractions such as Lake Tai, Lingshan "I think the government is do-
ward rapid economic development Buddha, Jichang Garden, Xihui Park ing a good job promoting Wuxi:
and industrialisation, the govern- and Three Kingdoms city. popular sites draw tourists, while
ment still focuses plenty of atten- But balancing a dual identity has the industrial parks attract business
tion on preserving Wuxi's image as been challenging. In 2007, chemical travellers." ■

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EuroBiz | December 2010 37


Information to give
China's philanthropic leaders are aiming to add transparency to charities
By David Green

B usiness icons Warren Buffet

and Bill Gates pulled China's
burgeoning class of million-
aires uncomfortably into the spot-
light with a visit to the country in
plans to expand the online database
to allow donors and foundations to
connect with non-governmental or-
ganisations seeking grants – but only
groups that meet disclosure criteria
September to promote their global will have access.
philanthropic agenda. But behind Daniel Foa, co-chair of 51Give,
the scenes, charitable organisations says the CFC will help promote trans-
are trying to attract financial sup- parency in the sector. His website
port from China's wealthy in a sub- serves as an online microfinance do-
tler fashion. nation platform, linking individual
There are numerous impediments donors with 19 sub-charities. "For
to charitable giving in China, ranging donors, the most attractive charities
from the absence of tax deductions for HELPING HAND: Actor Jet Li's One Foundation are those that report the most about
charitable contributions, to limitations helped launch the China Foundation Center what they are doing. If there is a plat-
on how one can make donations. form to receive funding they will try
But the overarching issue plaguing scribes the centre's work as being harder – the CFC is part of the solu-
charities in China is public mistrust. in its initial stage, which involves tion," Foa says.
This stems from an absence of sound raising awareness about the impor-
government regulation, as well as tance of disclosure among the 1,956 Rules emerge
negative publicity focusing on fraud- foundations onboard so far. It is also While the CFC may help boost self-
ulent attempts to set up charities and sourcing basic information and fi- governance among China's philan-
misallocation of donations. nancial reports, as well as details of thropic organisations, regulatory prog-
Enter the China Foundation Cen- endowments and board membership, ress is also happening at the local level.
ter (CFC). Launched in July, the or- and posting them online. "Before we Jiangsu and Hunan provinces, as well
ganisation aims to increase the trans- launched there was no place to find as the cities of Beijing and Ningbo, are
parency of Chinese charitable groups this data. That's one of our greatest already experimenting with, or prepar-
– including the Narada Foundation, achievements so far – to build the ing to implement, their own regula-
China Youth Development Founda- first China database," she says. tions on charitable donations.
tion and the Chinese Red Cross – by While foundations are not le- "This is one of the instances of
making information about their ac- gally obligated to work with CFC, using experimentation with locali-
tivities available to the public. the group operates on the principle ties to help write the national law,"
that charities have a responsibility to according to Karla Simon, professor
Steps ahead disclose information. "It's a mutual of law at the Catholic University of
The CFC hopes this will instil confi- effort among the 35 founding organi- America's Columbus School of Law.
dence and encourage wealthy compa- sations to promote the sector's devel- Simon says that one of the impor-
nies and individuals to give. opment, and to really obtain the pub- tant stipulations in the Jiangsu regu-
The initiative was formed from a lic's support and trust," Zhuang says. lation is that charities must spend
mix of 35 public and private founda- Besides basic training, the centre at least 70 percent of the previous
tions – including the China Founda- intends to offer more professional year's profits on charitable activities.
tion for Poverty Alleviation and the support – helping to develop web- The Hunan legislation, currently in
Jet Li One Foundation – aiming to sites (only a third of the foundations draft form, will reportedly clarify
actively promote self-regulation in it works with currently have an on- the obligations of donors for the
the sector. line presence), capacity building and first time, and strive to ensure ben-
CFC President Zhuang Ailing de- supporting research. There are also eficiaries' accountability. ■

38 December 2010 | EuroBiz

chamber board

European Chamber Office Team Executive Committee of the European Chamber

President Vice-President Vice-President Vice-President

Secretary General: Dirk Moens
Jacques de Boisséson David Cucino David Tang Piter de Jong
Total Fata Nokia ING Bank

Beijing Office Chengdu Office

Vice-President States Representative States Representative States Representative
General Manager: Adam Dunnett General Manager: Yue Zhou
Jens Ruebbert Andreas Feege Jens Eskelund Enrico Perlo
Tel: 010 6462 2066 Tel: 028 8529 3447
Deutsche Bank KPMG Maersk China Guala Closures
Fax: 010 6462 2067 Fax: 028 8529 3447
E-mail: E-mail:

Treasurer Member* Member* Member*

Michael Fredskov Koen Verniers Alberto Vettoretti Paul Sives
Christiansen Oiltanking Nanjing Dezan Shira & Associates Proton
Nanjing Office Pearl River Delta Office Novozymes
General Manager: Patricia General Manager: Francine
Enzmann Hadjisotiriou
Tel: 025 8362 7330 Tel: 020 3801 0267
Fax: 025 8362 7331 Fax: 020 3801 0275
Email: E-mail:

Marianne Gumælius
European Delegation

chengdu Board

Shanghai Office Shenyang Office

General Manager: Ioana Kraft General Manager: Sierra Wang
Tel: 021 6385 2023, 6385 2133 E-mail:
Fax: 021 6385 2381
Chairman Anthony Chau Changmin Wang Jan Scheidgen
Paul Sives KPMG Siemens FAW-Volkswagen

Tianjin Office
General Manager: Kitty Wang Stephane Schrickx Adam McWhirter
E-mail: Maxxelli Real Estate Maxxelli Chongqing
*Local Board

40 December 2010 | EuroBiz

Nanjing Pearl River Delta shanghai Shenyang Tianjin
Board Board Board Board Board

Chairman Chairman Piter de Jong Chairman Chairman

Helmut Guesten Alberto Vettoretti ING Bank Sven Kunath Eric Bouteiller
EMZ Dezan Shira & Associates Jinbei Johnson Controls Ipsen

Carlo D'Andrea Benoit Stos Charles-Edouard Thierry Laurent Gary Scheide Hermann Georg Kleinod
Picozzi & Morigi Mazars Guangzhou Bouee Roquette Asia Michelin Shenyang Tire Siemens Electrical Drives
Roland Berger

Li Dongjie David Gustin Marco Marazzi Dr Stefan Sack George Van Oosten Gabriele Castaldi
Lufthansa GlaxoSmithKline Baker & McKenzie Voith Industrial Services Shenyang Lido Sheraton Goglio

Gerhard Roeck Holger Kunz Marcus Wassmuth Dr Dahai Yu Hans Kroeppelt Gilles Desesquelles
BSH TUV Rhineland Landesbank Baden- Evonik BMW Brilliance Airbus (Tianjin)

Wilhelm Hummerjohann Nong Ke Qiang Xiaobai Wang Ivan Salamin, Alcan

BASF-YPC Siemens Siemens (Tianjin) Alloy

Susanne Zhang Pongrantz

Austria AG

EuroBiz | December 2010 41

Advisory Council

The Advisory Council of

the European Chamber
The European Union Chamber of Commerce in China is driven and funded by its members. The
27 members of the Advisory Council are particularly active in representing and advising the
Chamber, and make an enhanced contribution to the Chamber's funding.

42 December 2010 | EuroBiz

EuroBiz | December 2010 43
China dining

Shanghai 上海 1/F, New Building, 200 Yan'an Tel: +86 21 6882 8888 127 Datian Road
Road West Kagen Teppanyaki Tel: +86 21 6217 9797
American Tel: +86 21 6248 8499 28D Taojiang Road Coconut Paradise
KABB Bar & Grill Amici Tel: +86 21 6433 3232 38 Fumin Road
Building 5, North Block 2/F, 1116 Yan'an Road West Haiku by Hatsune Tel: +86 21 6248 1998
Xintiandi, Lane 181 Taicang Tel: +86 21 6115 9624 B28 Taojiang Road Muang Thai Kitchen
Road Bella Napoli Tel: +86 21 6445 0021 288 Chengdu Road North
Tel: +86 21 3307 0798 140 Xikang Road LG1-36, IFC Mall, 8 Century Tel: +86 21 6327 7579
Element Fresh Tel: +86 21 6253 8358 Avenue, Pudong Naam Thai
112 East Tower Shanghai Cameo Italian Restaurant Tel: +86 21 3882 0792 1107-1108 Highstreet Loft,
Center, 1376 Nanjing Road A2, Green Sports & Leisure Sushi Inc. 508 Jianshan Road
West Center, 633 Biyun Road, 2/F, 33 Huayuanshiqiao Road Tel: +86 21 5465 6005
Tel: +86 21 6279 8682 Jinqiao, Pudong Tel: +86 21 5877 6551 Tai Thai Cuisine
1/F, Super Brand Mall, 168 Tel: +86 21 5030 2166 Back Door, 18, Lane 248,
Lujiazui Road West, Pudong Casanova Italian Restaurant French Taikang Road
Tel: +86 21 5047 2060 913 Julu Road Allure Tel: +86 21 6466 8331
4-5/F, Kwah Centre, 1028 Tel: +86 21 5403 4528 11/F, 789 Nanjing Road East Thai House
Huaihai Road Central Tel: +86 21 3318 9999 ext. 205 Building 12, Lane 657
Tel: +86 21 5403 8865 7022 Wuding Road Da Marco Italian Restaurant Café Montmartre Tel: + 86 21 5213 1656
Wagas (Citic Square) Golden Bridge Garden, 103 66-69 Wulumuqi Road
B1-11A, 1168 Nanjing Road Dongzhu'anbang Road Tel: +86 21 5158 9377 German
West Tel: +86 21 6210 4495 3911 Hongmei Road Hofbraeuhaus Shanghai
Tel: +86 21 5292 5228 Isola Bella Italian Restaurant Tel: +86 21 6261 8089 309 Jinyan Road
Blue Frog 2/F, 41, Lane 816 Huaihai Road Epicvre Tel: +86 21 6163 3699
102-103A, Block 6, Daning Life Central 98 Xinle Road Paulaner Brauhaus
Hub, 1918 Gonghexin Road Tel: +86 21 5467 0170 Tel: +86 21 5404 7719 150 Fenyang Road
Tel: +86 21 6631 3920 Tel: +86 21 6474 5700
Indian Club Shanghai 2967 Lujiazui Road West
Chinese 4/F, Door 7, Shanghai Concert Tel: +86 21 6888 3935
1221 Hall, 523 Yan'an Road East 19-20 Lane 181 Taicang Road
1221 Yan'an Road West Tel: +86 21 5383 9989 Tel: +86 21 6320 3935
Tel: +86 21 6213 6585
Crystal Jade Franck Greek
12A-B 2/F, Building 6-7 376 Wukang Road Greek Taverna
Xintiandi Plaza, Lane 123 Tel: +86 21 6437 6465 Unit 41, 1/F, 43 Lane 199
Xingye Road Le Bouchon Fangdian Road
Tel: +86 21 6385 8752 1455 Wuding Road West Tel: +86 21 5033 7500
7/F, West Gate Mall, 1038 Tel: +86 21 6225 7088 Mythos
Nanjing Road West La Grange Building 6, Lane 505,
Tel: +86 21 5228 1133 794 Julu Road Zhongshan Road South
Guilin Garden Tel: +86 21 6248 2185 Tel: +86 21 6152 6755
188 Caobao Road Tandoor Le Cygne
Tel: +86 21 6451 5098 Jinjiang Hotel, 59 Maoming 169 Jinxian Road Mexican Road South Tel: +86 21 5157 5311 Cantina Agave
Tian Di Restaurant Tel: +86 21 6472 5494 Jean Georges 291 Fumin Road
3/F, 6 Zhongshandongyi Road Masala Art 4/F, Three on the Bund, 3 Tel: +86 21 6170 1310
Tel: +86 21 6329 7333 397 Dagu Road Zhongshandongyi Road MAYA Tel: +86 21 6327 3571 Tel: +86 21 6321 7733 2/F, Lane 568 Julu Road
Punjabi Tel: +86 21 6289 6889
Cantonese 5/F, 627 Huaihai Road Central Sichuan
Bi Feng Tang Tel: +86 21 6472 5464 La Zi Yu Nepalese
175 Changle Road 53 Fengxian Road Nepali Kitchen
Tel: +86 21 6467 0628 Moroccan Tel: +86 21 6267 0097 4, Lane 819, Julu Road El Wajh - Moroccan Cuisine 187 Anfu Road Tel: +86 21 5404 6281
1/F, Golden Magnolia Plaza, 1 1800 Jinke Road Tel: +86 21 5403 7684
Dapu Road Tel: +86 21 5027 8261 2/F, 1 Shuangfeng Road North Taiwanese
Tel: +86 21 5396 1328 Tel: +86 21 6487 1015 Din Tai Fung (Nanjing Road Pin Chuan West)
98 Changshu Road Spanish 47 Taojiang Road A104, 1/F, Shanghai Centre,
Tel: +86 21 5396 0368 Gran Bodega Tel: +86 21 6437 9361 1376 Nanjing Road West 1/F, 789 Wuyi Road Sichuan Court Tel: +86 21 6289 9182
China Bistro Tel: +86 21 5206 0719 39/F, Hilton Hotel, 250 Din Tai Fung (Pudong)
3/F, Renaissance Shanghai La Verbena Huashan Road Unit 24, 3/F, Super Brand Mall,
Yuyuan Hotel, 159 Henan Road Unit E, North Section, Binjiang Tel: +86 21 6248 7777 ext. 168 Lujiazui Road West
South Avenue, 2967 Lujiazui Road 1890 Tel: +86 21 5047 8883
Tel: +86 21 2321 8888 West, Pudong South Beauty 881 Din Tai Fung (SWFC)
Tan Wai Lou Tel: +86 21 5878 9837 881 Yan'an Road Central Unit 318, 3/F, Shanghai World
5/F, Bund 18, 18 Restaurant Martin by Martin Tel: +86 21 6247 1581 Financial Center, 100 Century
Zhongshandongyi Road Berasategui Avenue, Pudong
Tel: +86 21 6339 1188 811 Hengshan Road Thai Tel: +86 21 6877 6886
Wan Hao Chinese Restaurant Tel: +86 21 6431 9811 Little Face Din Tai Fung (Xintiandi)
39/F, Tomorrow Plaza, 399 30 Donghu Road Unit 11, 2/F, Building 6, South
Nanjing Road West Japanese Tel: +86 21 6466 4328 Block, 123 Xinye Road
Tel: +86 21 5359 4969 MoonSha Japanese Cuisine Royal Thai Kitchen Tel: +86 21 6385 8378
Yuan Yuan (Xuhui) 3/F, 5 on the Bund, Zhongshan 3, 3911 Hongmei Road
201 Xingguo Road Road South Tel: +86 21 6262 6260 Grill
Tel: +86 21 6433 9123 Tel: +86 21 6323 1117 Simply Thai Hongmei Avalon Wood Grill & Wine Bar 28 Hongmei Leisure Street, 2/F, 139-19 Changle Road
Nadaman Lane 3338, Hongmei Road Tel: +86 21 5382 0862
Italian 2/F, Tower 2, Pudong Shangri- Tel: +86 400 880 7729
Ad Domus Italian Restaurant La, 33 Fucheng Road, Pudong Thai Gallery

44 December 2010 | EuroBiz

Beijing 北京 Road, Chaoyang 1/F, Ritz-Carlton Hotel, 1 Tel: +86 10 6505 2266
Tel: +86 10 6561 8833 ext. 41 Jinchengfang Street East, Athena
American Yao Chi Xicheng 1 Xiwu Street, Sanlitun,
The American Cafe Grand Millennium Tel: +86 10 6601 6666 Chaoyang
1/F, Blue Castle International Beijing, Fortune Plaza, 7 Daccapo Tel: +86 10 6464 6036
Apartments, 3 Xidawang Road, Dongsanhuanzhong Road, 2/F, Grand Hyatt Hotel, Oriental Happy Valley
Chaoyang Chaoyang Plaza, 1 Chang'an Avenue East, 1/F, 2 Chaoyangmenbei
Tel: +86 10 8599 7428 Tel: +86 10 8587 6888 Dongcheng Avenue, Dongcheng
The Astor Grill Yu Tel: +86 10 6510 9628 Tel: +86 10 6553 2288
3/F, St. Regis Hotel Apartment, Ritz-Carlton Hotel, China Luce Cafe Mare
21 Jianguomenwai Avenue, Central Place, A83 Jianguo 138 Jiugulou Avenue, Xicheng C12 Guanghua Road, Chaoyang
Chaoyang Road, Chaoyang Tel: +86 10 8402 4417 Tel: +86 10 6595 4178
Tel: +86 10 6460 6688 Tel: +86 10 5908 8888 Sophia's W Dine & Wine
Eudora Station ZEN The Presidential, A9 22-1 Dongzhimenwai Avenue,
Opposite of Lido Plaza, 5/F, InterContinental Beijing, 11 Fuchengmenwai Road, Xicheng Chaoyang
6 Fangyuan Road West, Jingrong Street, Xicheng Tel: +86 10 5858 5588 Tel: +86 10 6416 9838
Chaoyang Tel: +86 10 5852 5888
Tel: +86 10 6437 8331 Japanese Sichuan
Grandma's Kitchen Chinese Haiku by Hatsune Chilli Peppers
11A Xiushui Street South, Tian Di Restaurant No. 8 Apartments, West Gate 1/F, Longchengligong Hotel,
Chaoyang 140 Nanchizi Avenue, Chaoyang Park, Chaoyang Huilongguan
Tel: +86 10 6503 2893 Dongcheng Tel: +86 10 6508 8585 Tel: +86 10 8079 9988
103, Building B, Jianwai SOHO, Tel: +86 10 8511 5556 Ajitoku Chuan Ban
39 Dongsanhuanzhong Road, B113 Raycom Infotech Park 5 Gongyuantoutiao,
Chaoyang Tower C, 2 Kexueyuannan Jianguomennei Avenue,
Tel: +86 10 5869 3055 Indian Road, Haidian Dongcheng
47-2 Nanchizi Avenue, Tel: +86 10 8286 1993 Tel: +86 10 6512 2277
Dongcheng Hatsune
Tel: +86 10 6528 2790 2/F, Building C Heqiao Building, Thai
The Grill A8 Guanghua Road East, Very Siam
Radisson SAS Hotel, A6 Chaoyang A10 Xinyuanxilidong Street,
Beisanhuandong Road, Tel: +86 10 6581 3939 Chaoyang
Chaoyang Izaka-ya and Ushi-Ya Tel: +86 10 8451 0031
Tel: +86 10 5922 3388 4 Gongti Road North, Chaoyang Banana Leaf
Steak & Eggs Tel: +86 10 6585 3570 4 Gongti Road North
Xiushui Street South, Kagen Teppanyaki Tel: +86 10 6506 8855
Jianguomenwai Avenue B1/F, Tower C, Heqiao South Side, Block B,
Tel: +86 10 6592 8088 Mansion, A8 Guanghua Road Zhongguancun
Outback Steakhouse (Hotel East, Chaoyang Shopping Centre, 15
Store) Tandoor Tel: +86 10 6583 2332 Zhongguancun Avenue
A-1, East Building Hotel, 1/F, Zhaolong Hotel, 2 Gongti Nadaman Tel: +86 10 5986 3666
33 Chang'an Avenue East, Road North, Chaoyang 3/F, China World Hotel, 1 Bali Papaya
Dongcheng Tel: +86 10 6597 2211 Jianguomenwai Avenue, 2/F, Nali Patio, 81 Sanlitun
Tel: +86 10 6528 2858 Taj Pavilion Chaoyang Street North, Chaoyang
Outback Steakhouse L128, 1/F, West Tower Tel: +86 10 6505 2266 ext. 39 Tel: +86 10 5208 6029
(Workers' Stadium) China World Trade Center, Shota Muni Jimmy's Thai Kitchen &
1/F, East Wing North Gate, 1 Jianguomenwai Avenue, S-108, Building C, Blue Castle Lounge
Workers' Stadium, Gongti Road Chaoyang Apartments, 3 Xidawang Road, 1/F, East Gate Plaza Building,
North, Chaoyang Tel: +86 10 6505 5866 Chaoyang Dongzhimen, Dongcheng
Tel: +86 10 6506 5166 Tel: +86 10 8599 9009 Tel: +86 10 6418 5157
Beijing Tairyo Teppanyaki Laburnum
Cantonese Summer Palace 3/F, Building 6, China View, West Gate, Beijing Worker's
Ah Yat Abalone Restaurant 2/F, China World Hotel, 1 C2 Gongti Road East, Chaoyang Stadium, Gongti Road West,
4/F, Building 4, Yard 11, Jianguomenwai Avenue, Tel: +86 10 8587 1180 Chaoyang
Sanlitun Road, Chaoyang Chaoyang Tel: +86 10 6652 9999
Tel: +86 10 6508 9613 Tel: +86 10 6505 2266 Korean Lantung Thai Bar & Bistro
DI Ai Jiang Shan 16-1 Solana Park, 6 Chaoyang
InterContinental Beichen French North Gate, Side Park, Jiangtai Park Road, Chaoyang
Beijing, 8 Beichen Road West, Bleu Marine Road West, Chaoyang Tel: +86 10 5905 6213
Chaoyang 5 Guanghuaxili, Chaoyang Tel: +86 10 8456 9336 Patara
Tel: +86 10 8437 1288 Tel: +86 10 6500 6704 2 Zhengfu Temple, Haidian 6/F, Jinbao Place, 88 Jinbao
Lei Garden La Vin Tel: +86 10 5190 6655 Street, Dongcheng
3/F, Jinbao Tower, 89 Jinbao 6 Beisihuandong Road, Tel: +86 10 8522 1678
Street, Dongcheng Chaoyang Suraon Purple Haze Thai Restaurant
Tel: +86 10 8522 1212 Tel: +86 10 8457 2839 9-8, Side Park, Jiangtai Road & Bar
Monsoon West, Chaoyang A55 Xingfuyicun, Chaoyang
5/F, InterContinental Beijing, 11 German Tel: +86 10 8456 8008 Tel: +86 10 6413 0899
Jinrong Street, Xicheng Der Landgraf Sorabol Restaurant
Tel: +86 10 5852 5916 A2 Pufang Road, Fangzhuang 2/F, Landmark Building,
Shang Palace Tel: +86 10 6768 2664 8 Dongsanhuanbei Road,
2/F, Shangri-La Hotel, 29 Drei Kronen 1308 Chaoyang
Zizhuyuan Road, Haidian Building 5 China View, C2 Gongti Tel: +86 10 6590 0630 To have your
Tel: +86 10 6841 2211 Road East, Chaoyang restaurant
Mei Jing Jin Yuan Tel: +86 10 6503 5555 Saveurs de Coree
3/F, Jiangsu Building, D88 29 Nanluogu Alley, Dongcheng featured in these
Andingmenwai Avenue, Italian Tel: +86 10 6401 6083 pages, please
Dongcheng Agrilandia
Tel: +86 10 6426 6355 Baigezhuang Village, Mapo Mediterranean contact one of our
The Horizon Chinese Town, Shunyi Aria
Restaurant Tel: +86 10 6940 7801 2/F, China World Hotel, 1
representatives at
1/F, Shangri-La Kerry Center Jianguomenwai Avenue, (021) 5385 9063
Hotel Beijing, 1 Guanghua Cepe Chaoyang

EuroBiz | December 2010 45

business toolkit

A handy guide to professional Health Care


services around China

Landison Plaza Hotel

333 Tiyuchang Road, Hangzhou
Accounting Tsinghua University, Haidian, Tel: +86 571 8515 8888
Ernst & Young Hua Ming Beijing
Beijing Tel: +86 10 6279 7196
16/F, Ernst & Young Tower Sofitel Shanghai Hyland
Oriental Plaza, 1 Chang'an mbaadmissions@sem.tsinghua. 505 Nanjing Road East
Avenue East, Dongcheng Tel: +86 21 6351 5888/4088
Tel: +86 10 5815 3000 Car Rental
36/F, Tower B Center Plaza, International Schools
161 Linhe Road West, Tianhe, Beijing
Guangzhou ParkwayHealth Medical
Tel: +86 20 2881 2888 Centers 24-Hour Appointment Service
Tel: +86 21 6445 5999
Gleneagles Medical and
Surgical Center
4/F, 389 Nanjing Road West,
Tomorrow Square
Shanghai Centre Medical and
Dental Centers
Rising Shanghai Car Rental 203-4 West Retail Plaza, 1376
Provides professional service Nanjing Road West
including: Specialty and Inpatient Center
- Long-term leasing 2-3/F, 170 Danshui Road Beanstalk International
- Short-term car rental Hong Qiao Medical Center
Bilingual School (BIBS)
- Airport pick-up / drop-off 2258 Hongqiao Road
LehmanBrown International 6 North Road of East Fourth
- Business travel service Jin Qiao Medical and Dental
Accountants - Exhibition & conference Ring Road, Chaoyang
Center service Tel: +86 10 5130 7951
51 Hongfeng Road, Jinqiao,
Beijing - Tourism trip service
602, Dongwai Diplomatic Office Tel: +86 21 5447 8361
Mandarine City Medical Center
Building, Tel: +86 21 5447 8362 Mandarine City, Unit 30, 788
23 Dongzhimenwai Fax: +86 21 5447 8369 Hongxu Road Beanstalk International
Avenue,Chaoyang Kindergarten (BIK)
Tel: +86 10 8532 1720 Jing Xian Dental Clinic 1/F, B Building, 40 Liangmaqiao
E-mail: 4 Paris Garden, Lane 119 Road, Chaoyang
Shanghai Shanghai Longhui Car Rental Ronghua Road East Tel: +86 10 6466 9255
1504, WanTai International 203, 24, Lane 300 Jinxiu Road, Tel: +86 21 6278 0936
Building, Pudong
480 North Urumqi Road Tel: +86 21 5169 9238 Beijing
Tel: +86 21 6249 0055 Tel: +86 21 5109 9838 Hong Kong International Beanstalk International
E-mail: shanghai@ Fax: +86 21 5854 2832 Medical Clinic, Beijing Middle/High School 9/F, Office Tower Hong Kong 38 Nanshiliju, Chaoyang
Guangdong Macau Center-Swissôtel, Tel: +86 10 8456 6019
3317, China Shine Plaza, 2 Chaoyangmen Avenue North,
9 LinHe West Road Anji Car Rental & Leasing Dongcheng
Tel: +86 20 2205 7883 1387 Changning Road, Tel: +86 10 6553 2288 / 2345
E-mail: guangzhou@ Shanghai /2346 / 2347 International School of Beijing Tel: 400 882 1119 Fax: +86 10 6502 3426 10 Anhua Street, Shunyi
Tel: +86 21 6229 1119 Tel: +86 10 8149 2345
Business Schools
Beijing International MBA at
Peking University Hotels Canadian International School
101, China Center for Economic Financial Consulting Hotel New Otani Chang Fu Gong of Beijing
Research, Peking University Austen Morris Associates 26 Jianguomenwai Avenue 38 Liangmaqiao Road,
Tel: +86 10 6275 4800 Beijing Tel: +86 10 6512 5555 Chaoyang 2509, Silver Tower, Tel: +86 10 6465 7788
2 Dongsanhuan Road North,
CEIBS Chaoyang
Shanghai Tel: +86 10 6410 7030 Courtyard by Marriott Beijing
699 Hongfeng Road, Pudong Northeast Tianjin
Tel: +86 21 2890 5890 101 Jingshun Road, Chaoyang Tel: +86 10 5907 6666
Beijing Austen Morris Associates Tel: 400 888 5551
Building 20, Zhongguancun Shanghai www.
Software Park, 8 Dongbeiwang 19/F, Guangdong Development
Road West, Haidian Bank Tower, 555 Xujiahui Road cy.bjsne.reservations@
Tel: +86 10 8296 6600 Tel: +86 21 6390 1233 Crowne Plaza Beijing International School of Tianjin
Tsinghua University MBA 48 Wangfujing Avenue, Weishan Road, Shuang Gang,
119, Shunde Building, School of Dongcheng Jinnan
Economics and Management, Tel: +86 10 5911 9999 Tel: +86 22 2859 2001

46 December 2010 | EuroBiz

Fax: +86 22 2859 2007 Unit 230, Bailing Mansions Building 18, Lakeville Regency, Fax: +86 21 5270 6631 Office Building, 168 Xinghai 168 Shunchang Road, Shanghai Road, Suzhou Industrial Park Tel: +86 21 2320 6688 GRM Beijing
Tel: +86 512 6288 6250 6 Shuangyang Road, Beijing
HR/Recruitment suzhou@newconceptmandarin. Economic and Technology
Beijing com Development Area
Beijing Foreign Enterprise Shenzhen Marriott Executive Tel: +86 10 6789 2800
Service Group 3/F, Bitao Center, 8 Taizi Road, Apartments Union Square Fax: +86 10 6789 2900
Foreign Enterprise Building, 15 Shekou Pudong
Dawang Road West Tel: +86 755 2688 3577 506 Shangcheng Road, Pudong GRM Guangdong
Tel: +86 10 6777 9999 shenzhen@ Tel: +86 21 2899 8888 8 Qiufulu District, Fumin Fax: +86 21 2899 8877 Industrial Park, Dalang Town,
Guangzhou Dongguan
China International Unit 2001, Tower D Phase 2 Shama Xujiahui Tel: +86 769 8222 9922
Intellectech Corp. Tianyu Garden,138 Linhe Road Tower 11-12, Novel Century, Fax: +86 769 8222 9900
25/F, West Wing Hanwei Plaza, Central, Tianhe Lane 81 Xingeng Road,
7 Guanghua Road, Chaoyang Tel: +86 20 3893 4200 Shanghai
Tel: +86 10 6561 3920 guangzhou@ Tel: +86 21 2411 8888 Serviced Offices
Shanghai 3/F,15 Begonia Road, New
China Team World Garden, Dongcheng Oakwood Residence
6008, Novel Building, 887 Tel: +86 769 2248 9240 Hangzhou
Huaihai Road Central dongguan@ 28 Jiaogong Road, Hangzhou
Tel: +86 21 6474 7064 Tel: +86 571 8899 3131 Fax: +86 571 8899 3030 TLI-IYU reserve.reshangzhou@
Heidrick & Struggles 40 Liangmaqiao Road,
3701, Tower 2, Plaza 66, 1366 Chaoyang Relocation Services
Nanjing Road West Tel: +86 10 6461 2973
Tel: +86 21 6136 1988 Tel: +86 10 6468 3311 x3509
The Executive Centre
Michael Page International Law Firms Xintiandi, 159 Madang Road
Consulting Lehman, Lee & Xu Tel: +86 21 6135 7188
602-603, Shanghai Kerry Beijing CITIC Square, 1168 Nanjing
Centre, 1515 Nanjing Road 10-2, Liangmaqiao Diplomatic Road West
West Compound, 22 Dongfang Road Tel: +86 21 5252 4618
Tel: +86 21 3222 4758 East, Chaoyang The Center, 989 Changle Road Tel: +86 10 8532 1919 Tel: +86 21 5116 6888 Chong Hing Financial Center,
Shanghai 288 Nanjing Road West
Language Schools 16/F, Tower F, Mirae Asset Tel: +86 21 51169191
Ambassador Mandarin Tower, 166 Lujiazuihuan Road,
Tel: +86 10 5870 2833 Pudong Crown Worldwide Vo_Shanghai@
www.ambassadormandarin. com Tel: +86 21 5877 9296 Crown Beijing
course@ambassadormandarin. Crown Worldwide Building,
com 16 Xingmao 1st Street, SERVCORP
CBD Office Tongzhou Logistics Park,
Unit 505, The Spaces K&L Gates Majuqiao Town, Tongzhou Beijing
International Center Tel: +86 10 5801 8088 24/F, Tower 3 China Central
8 Dongdaqiao Road Beijing Fax: +86 10 5801 8099 Place, 77 Jianguo Road,
Chaoyang, Beijing 711, Tower W1, Oriental Plaza, Chaoyang
Sanyuanqiao Office 1 Chang'an Avenue East, Tel: +86 10 8588 0100
Jingxin Mansion 222, 2A Dongcheng Crown Shanghai Shanghai
Dongbeisanhuan Road, Tel: +86 10 8518 8528 Crown Worldwide Building, 59 23/F, Citigroup Tower, 33
Chaoyang, Beijing Shanghai Lane 729-75, Suide Road Huayuanshiqiao Road
3705, Park Place, 1601 Nanjing Tel: +86 21 6250 8820 Tel: +86 21 6101 0000
New Concept Mandarin Road West Fax: +86 21 6250 8978 Tel: +86 21 2211 2000 AsianBiz
Shanghai 3-4/F, Senben Plaza, 567
9H, Ladoll International Residence & Serviced Apts Tianyaoqiao Road, Shanghai
Building, 831 Xinzha Road, Lanson Place Jin Qiao Service Providers Tel: 400 630 2216
Jing'an Residences, Shanghai
Tel: +86 21 5228 2950 17-18, Lane 399, Zaozhuang
shanghai@ Road, Pudong Tel: +86 21 5013 3592
1903, Tower B, Ocean Express,
Yard 66, Xiaguangli,
Sanyuanqiao, Chaoyang Fraser Suites Top Glory  To have your
Tel: +86 10 8446 6455 1, Lane 600, Yincheng Road business featured
beijing@newconceptmandarin. Central, Lujiazui, Pudong,
com Shanghai in these pages,
Nanjing Tel: +86 21 6378 8888 please contact
D1 17/F, Shangmao Century Fax: +86 21 5877 1928
Plaza, 49 Zhongshan Road South one of our
Tel: +86 25 8487 2361 sales.fsshanghai@ representatives at
nanjing@newconceptmandarin. GRM Shanghai
com 2 Lane 271 Qianyang Road (021) 5385 9063
Suzhou Shama Luxe at Xintiandi Tel: +86 21 5270 3311

EuroBiz | December 2010 47

company index

Advertisers in red

51give 38 Gap 14 Sheraton Sanya 29

A-D Geely 15 Siemens 18, 32, 36
Agricultural Bank of China 13, 14 General Electric 36 Sina 14, 24
Air China 24 Gide Loyrette Nouel 26 Starbucks 14
Air France 52 Goglio 18 Suntech 36
Airbus 18 Holcim 24 TCL 26
AppleTec Laboratory Services 37 Hyatt Regency Hangzhou 21 Thomson Electronics 26
Audi 15 IBM 36 Total 36
Bank of China 13, 14 Industrial and Commercial Bank Toyota 36
Bank of Communications 13 of China 13, 14 Vermillion Partners 31
BASF 34 Ipsen 18 Vestas 18
Beanstalk International Bilingual Jet Li One Foundation 38 Volvo 15
School 37 Jones Lang LaSalle 18 Walt Disney 14
BMW 15 Kingkey Palace Hotel 11 Western Academy of Beijing 39
Boeing 15 KPMG 27 Westin 18
Catholic University of America 38 LAN Club 17 Westin Fuzhou 7
China Construction Bank 13, 14 M-P World Bank 12
China Eastern Airlines 15 Manchester MBA 2 World Med MBA 9
China Europe International Mazars 19 Wuxi Pharmatech 37
Business School 16, 37 MEMSIC Wuxi 36
China Foundation Center 38 Metro 15
China Foundation for Microsoft 14, 28
Poverty Alleviation 38 New Concept Mandarin 19
China Real Estate Business 14 New Huadu Industrial Group 28
China Team 3 Nottingham University 26
Chongqing Wanda Hotel 25 Okura Garden Hotel 15
Climate Exchange 12 Pacific Western University 28
Courtyard Jiading 19 Parkway Health
Deutsche Bank Group 16 Medical Centers 13
Dikara Spa 18 People's Bank of China 13, 14, 32
DK 1308 18 Philips 16
Dongdao 24 Q-T
Doubletree by Hilton Radisson 18
Wuxi Lingshan 37 Raffles Hotel 18
E-L Red Flag Screening 28
Economist Intelligence Unit 16 Rolls-Royce 15
Eleganza Uomo 51 Schneider Electric 16
Finnair 5 SGS-CSTC Technical Standards
Fortis Bank 33 Services 22, 23

48 December 2010 | EuroBiz

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OUT OF the Box

Eye on the west

New trade bloc in Central Asia demands attention from China
By Mark Godfrey

R adical change may be on the

horizon for some of China's
western neighbours, which
are coming together in a customs
union. Frustrated by its lack of prog-
ress in entering the WTO, Russia
created a customs union with Ka-
zakhstan and Belarus this year. The
plan involves eventually creating a
common market with a population
of some 170 million people by the
end of 2012.
This could have great impact on
China. Central Asian neighbours like BRIDGE TO EUROPE: A Central Asian customs bloc may have an impact on China
Kazakhstan are strategically impor-
tant to China in terms of resources, line the shipment of goods. Horn- dependent on Russia as a source of
and also providing an overland rail brook says he was shocked to find exports and emigrant remittances.
route to Europe – something that has that Kyrgyz exporters are required to The affect of duty-free Russian
long been proposed by Beijing. China, provide 27 separate documents at the goods on Chinese export markets re-
for example, has made efforts to in- country's borders. Such red tape – and mains to be seen. Many predict that
crease integration through the Shang- bribes paid to avoid it – is largely why products from Russia will be more af-
hai Cooperation Organisation, which the private sector remains weak in fordable for Central Asian consumers
was founded in 2001 by leaders of Kyrgyzstan, as well as neighbouring than imports from other countries,
China, Kazakhstan, Kyrgyzstan, Rus- states like Tajikistan and Uzbekistan. including China. "Kyrgyzstan is not
sia, Tajikistan and Uzbekistan. Training local bureaucrats to in the position to compete with a cus-
Yet, Central Asia has enjoyed little change, GTZ borrowed a "single win- toms union," Shin says. "It will buy
of China's manufacturing-driven eco- dow" customs model which elimi- manufactured goods from Russia. It
nomic success. As a result, it has been nates paper work for exporters and al- will go back to driving Ladas."
looking to Europe and the US to stim- lows countries exchange information. Increased economic integration
ulate trade and economic growth. In addition, the GTZ project is also and cheaper goods may be just what
helping Central Asia to implement some Central Asian countries need.
Integrating markets internationally- recognised standards, Already crimped by substandard pow-
Encouraging cooperation between such as the International Organiza- er and infrastructure systems, poorer
Central Asian countries is the focus tion for Standardization. states like Kyrgyzstan and Tajikistan
of assistance programmes separately Initial enthusiasm among Central suffered from a drop in remittances
funded by the German state aid agen- Asian governments bodes well for from migrant workers – which con-
cy, German Technical Cooperation change, though progress may be slow, stituted about 20 percent of Kyrgyz-
(GTZ) as well as the United States says Allen Shin, who runs the USAID- stan's and 37 percent of Tajikistan's
Agency of International Development funded Regional Trade Liberalization GDP in 2008 and 2009, respectively
(USAID). & Customs Project across Central Asia. – in Russia.
Jonathon Hornbrook, GTZ's pro- China will have to keep a close As such, China may find it needs
gramme manager in the Kyrgyz watch on the impact of the Central to be more proactive in embracing its
capital of Bishkek, says his project Asian customs bloc. Hornbrook says western neighbours, and find a way
has been assisting Central Asian gov- China's neighbours Kyrgyzstan and to boost the Shanghai Cooperation
ernments with simplifying customs Tajikistan are also seriously consider- Organisation's activity on an eco-
regimes so that exporters can stream- ing participation, since both remain nomic level. ■

50 December 2010 | EuroBiz

EuroBiz | December 2010 51