Contents Business Tianjin / July 2012 06 BIZ BRIEFS 12 NUMBERS 13 NEW APPOINTMENTS 14 ECONOMY July China Economy Report 17 Currency Chart DIALOGUE 18 Craig Bond, Chief Executive, Standard Bank China and ICBC Strategic Partnership 22 Dr. Frank McIntyre, Assistant Professor of Economics, Rutgers Business School 26 Raul Harri, Head Principal, Tianjin International School 25 Summer Davos 2012 29 JOB POSTINGS FEATURE STORY 30 Tianjin Track Races for Replacement Investor LEGAL ASSISTANCE ▲ Inside the Financial Mind 34 Recent Legal Developments in CNY Internationalisation for Cross-border Trade and Investment Transactions Standard Bank is Africa’s largest bank with a history dating back 150 years. Also proud to be an African bank with a strong presence in 18 African countries, Standard Bank’s focus REAL ESTATE is connecting BRICS countries and facilitating cross border trade and investment banking 38 Resort Development in Mountain Attraction Areas and transactions between them. See P18 at World Heritage Sites in China POLICY EXPLANATION ◄ Recent Legal Developments in CNY 42 Legal Updates on Real Estate Markets Internationalisation for Cross-border Trade IPR and Investment Transactions 45 Software Copyright Registration in China: Suffering from the depression of the world economy and Know Before You Go the fluctuations of the exchange rates of certain major international currencies, both foreign and domestic investors MARKETING have been calling for a more globalised Chinese Yuan 48 Search Engine Optimisation (CNY), the official currency of China, in international trade and investment transactions. In response to such increasing IT demand, the Chinese government has been making efforts to 52 Creating Your Social Enterprise realise the internationalisation of CNY through comprehensive and profound reform on a gradual basis. See P34 HR 56 Social Media Penetrating Chinese Workplace but Causing Productivity Loss ◄ Search Engine Optimisation Anyone who makes a living off CHAMBER REPORTS communication knows the importance of 58 EU, US, Germany, Benelux, Singapore relevancy. If you are not relevant in your messaging and your timing, then you 61 PAST EVENTS can spend much money on sophisticated China Capital, Global Growth advertising not being worth anything. Renaissance Hotel’s “Get Out & Discover” Global Campaign Even average advertising messages Tianjin Kerry Centre’s “Tianjin Arcadia Court” Exhibition can do wonders, if they are delivered at Centre Opens to Public the right time and place. People within communication have the opportunity ARTS & LEISURE to increase the level of relevance 63 Book Review & Quotations significantly by using and leveraging the internet. Search has changed the way 82 Wine Notes (Châteauneuf-du-Pape) people use the internet, and has made 64 EVENT CALENDAR the likelihood of receiving something relevant much higher. See P48 BUSINESS CHINESE LESSON 66 May I speak with Mr. Chen of the Marketing Department ◄ Creating Your Social Enterprise MAPS Cloud computing is here, it’s now, and it’s 68 China delivering enormous business benefits to 69 Tianjin Industrial Park & Economic Development Areas many companies across the globe every day. Recent developments in social media 70 TRANSPORTATION and mobile technology are converging with cloud computing to create new opportunities 72 LISTINGS for growth and business transformation. 76 Must See Medal Events of the London As a result, enterprise adopters of cloud technologies are now moving beyond the 2012 Olympic Games sizable speed, cost, and risk reduction LAST WORD benefits. See P52 80 Keep it Simple, Stupid

Jul 2012 I Business Tianjin 3 TJ_Business Tianjin Magazine_op.pdf 1 19/6/2012 17:26:58

Business Tianjin JULY 2012 Looking to start or expand your business? Dear Reader,

Half of the year has already passed. We ended the second semester of 2012 with many uncertainties in the air. China is facing a large amount of internal issues Find your office solution at and economically, is slowing down at a fast pace. The Executive Centre in Tianjin Tianjin still shows a dynamic economy, but we have noted recently a demand from investors to make new investments and propose new projects for upcoming years.

Beijing is fighting the slowdown by cutting interest rates. The recent cut is the first The Executive Centre’s premium serviced office since 2008, and the central government is willing to push through more reforms is an inspirational solution to help your business www.businesstianjin.com to boost the economy. Inflation only reached 3% in May, but Beijing will probably be forced to take more measures soon to increase internal demand. succeed. Move into your own office space with MANAGING DIRECTOR J. Hernan Local investment has depended on State Owned Enterprises actions, and their [email protected] customized office layout, complete business hogging the lion’s share of credit from banks has produced a weaker private SENIOR EDITOR sector. SME’s have suffered much during this period, and these measures will support services and meeting facilities. Wang Na [email protected] not be enough. We think the restrictions for foreign investment will be lifted soon, or else it could be too late for China to attract new foreign investment, COPY EDITOR as investors don’t want to increase their dependency on a market with an C Richard Olsen II increasing production cost and too much government control. M Editorial Assistant

Helen Li This month, we offer an interview with the CEO of Standard Bank, the biggest Y [email protected] bank in Africa. This bank is a good example of outbound investment itself, as SIGN UP CM ICBC owns roughly 20%, and is a strategic partner of the group. Outbound CONTRIBUTORS NOW rent MY Josh Cooper, Simon Bai, Manuel Torres investment has been increasing, and some countries have shown their interest * Keith Crane, Jessica Cao, Heidi Skovhus, in receiving investment from China. CY to enjoy 2 months' Christopher Ribeiro, Hyuk-tae Kwon, CMY Mark Gao, Philippe Healey I would also suggest reading our economy article, which speaks of some real FREE K PROOFREADER examples about what is happening in the real estate sector. Housing prices have * PromotionApplies valid to until one-year 31 July 2012. Chris Wilson reached a point where some buyers now prefer to invest in the foreign real Serviced Officeonly. contract GRAPHIC DESIGN estate sector instead of continuing to invest in the restrictive market of China. Li Weizhi, Gao Jie This is another sign of problems with the domestic economy, and how difficult [email protected] it is to predict what will happen in the future. But for sure this is scary. SALES & ADVERTISING Zhang Danni, Vicky Xing, Diana Han As usual, I invite you to send me your comments and suggestions. [email protected]

MARKETING, Events & Promotions Jenny Wang Best regards, [email protected]

PHOTOGRAPHER Wang Yifang DISTRIBUTION Excellent Locations. Excellent Service. Excellent Value. Tang Xiaoyan, Lei Hongzhi [email protected]

ADVERTISING AGENCY Serviced Offices I Virtual Offices I Video Conferencing InterMediaChina Meeting and Conference Facilities [email protected] J. Hernan Business Concierge Services PUBLISHING DATE Managing Director | Business Tianjin Magazine July 2012 TEDA MSD C1 Tower Business Tianjin is FREE [email protected] Level 17, No.79 First Avenue, TEDA +86 22 5985 9888 ONLY for Members The Exchange Tower 2 TEL: +86 22 2576 0956 ISSN 2076-3735 Level 29, 189 Nanjing Road, Heping District +86 22 2318 5000 Tianjin World Financial Center Level 41, 2 Dagubei Road, Heping District +86 22 5830 7888 4 Jul 2012 I Business Tianjin [email protected] www.executivecentre.com Biz Briefs Biz Briefs

TIANJIN NEWS Regus Offers a Smarter Way to Tianjin Marriott Road Show Aston Martin Debuts at Tianjin Port Wellington College in Berkshire iWatt Settles in Tianjin to Promote Grow and Do Business in Tianjin Opens Mandarin Centre IC Design Level of Binhai New Area Rolls-Rolls Motor Cars Sparkled at Tianjin Goldin Metropolitan Polo Club

With the theme of “Welcome to Regus, the world’s leading provider Something Wonderful and New”, iWatt Inc, a world-famous provider of flexible workspaces, has opened its Tianjin Marriott Road Show was held Ten high-end Aston Martin vehicles On 2 June, China’s UK ambassador- Liu for green and energy-saving power first business centre in Tianjin. It offers at Renaissance Tianjin Lakeview Hotel arrived for the first time at the Tianjin port Xiaoming, visited Wellington College management ICs, invested and established “Rolls-Royce Polo Lifestyle Experience” valuable support for businesses looking on 20 June. The Road Show raised from a Singaporean “Musician”. This totals International Tianjin’s partner school- iWatt IC Science & Technology (Tianjin) was held by Rolls-Royce Motor Cars for new markets, or better ways to work. awareness of the 5 different brands 801 vehicles imported from Europe to Wellington College in Berkshire, to open Co., Ltd. in the Tianjin Economic & Tianjin at Tianjin Goldin Metropolitan Polo Tianjin’s economic vitality has created under the Marriott name that have a date, including 522 Land Rover vehicles, its Chinese Language Center. The center is Technological Development Area recently. Club on 9 June. The event was held to show great demand for Regus workspaces, presence in China, namely JW Marriott 75 Peugeots, 35 Citroens, 34 BMWs, 24 the UK’s largest and is dedicated to Chinese Over the next 3 years, iWatt will invest a off the Rolls-Royce Ghost, providing a from companies wishing to expand their Hotels and Resorts, Marriott Hotels Jaguars, 10 Aston Martins, and one Rolls- culture and Mandarin teaching. The pagoda total amount of CNY 300 million in the unique opportunity for consumers to enjoy footprint to Tianjin, to those who want and Resorts, Renaissance Hotels and Royce. Aston Martin Lagonda Limited is building provides a striking contrast to the development area to comprehensively the super luxury car. The theme of the event, to adopt new, flexible ways of working. Resorts, Courtyard by Marriott and a British manufacturer of luxury sports college’s traditional Victorian buildings and promote the IC design level of Binhai “Rolls-Royce Polo Lifestyle Experience”, Hans Leijten, Regus’s Vice-President, Marriott Executive Apartments. Senior cars, based in Gaydon, Warwickshire, according to the ambassador symbolises New Area. iWatt is currently working with was intended to deliver a kind of elegant East Asia, comments: “The efficiency and management representatives from 11 England. The company name is derived ‘a bridge of friendship between UK and global market leaders in mobile phone, and graceful lifestyle. “Ghost encourages productivity benefits of flexible working Marriott properties in Beijing and Tianjin from the name of one of the company’s Chinese young people.’ Dr Anthony Seldon, laptop, and FPD, in particular. Their you to regard either car as appropriate are increasingly clear to businesses in presented their hotel merits during the founders, Lionel Martin, and from the Headmaster of Wellington UK, David global market share of semiconductor for any occasion. We are very honoured China. By opening our first business show and offered guests a chance to Aston Clinton Hillclimb near Aston Cook, Headmaster of Wellington College chips in fields like power adaptors to show the Ghost for all the guests. We centre in Tianjin, Regus is helping engage with them face-to-face in this Clinton in Buckinghamshire. It is known International Tianjin, and Director of Music of smart phones and LED dimmable also welcome all customers who want to businesses here feel those benefits for unique networking opportunity. that various Aston Martin vehicles play an Stephen Griffiths also attended and Mimi lighting drivers is ranked number one. It experience this outstanding luxury car to get themselves. Our flexible workspaces - Business Tianjin, 21 June important role in James Bond films. The Zhou, Wellington Tianjin’s piano prodigy is predicted that the project will achieve to our showroom for a tasting,” said Kevin offer businesses a better way to work in prices of Aston Martin paid directly to the and the youngest piano soloist ever to play CNY 600 million of accumulated sales Ma, General Manager, Rolls-Royce Motor Tianjin, accessing exactly the workspace manufacturer vary from millions of CNY at London’s Royal Albert Hall, performed a and develop 60 intellectual properties over Cars Tianjin. they need, exactly when they need it.” to tens of millions of CNY. traditional Chinese piece. the next 3 years. - Business Tianjin, 10 June - Business Tianjin, 4 June - China Daily, 5 June - Business Tianjin, 11 June - tjbhnews.com, 8 June

6 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 7 Biz Briefs Biz Briefs

Johnson Controls to Build Sino-Singapore Tianjin Eco-city Club Established in Dongjiang Bay Tianjin’s First Fashion Week Kicks Third Wine Exchange Settles in Large Russian and Chinese Aircraft Automotive Battery Manufacturing Cooperates with Singapore School Scenic Area off at the St. Regis Tianjin Dongjiang Free Trade Port Zone of Project Settles in Tianjin Facility in Tianjin of Public Service to Train Quality Tianjin Johnson Controls, Inc., the world’s Social Workers leading supplier of automotive batteries, Sino-Singapore Tianjin Eco-city participated in a signing ceremony in Tianjin management committee has signed a to announce a planned USD 200 million cooperation agreement with Singapore automotive battery plant, pending final School of Public Service. According to approval. “This plant demonstrates our long- the agreement, both parties will jointly term commitment to the rapidly growing launch the plan of the “community During Russian President Putin’s official automotive industry in China,” said Alex administration and community service “Sky•Ocean•Wind”, an aquatic sports club, visit to China, China and Russia signed a Molinaroli, President, Johnson Controls training class”. The plan is to forge a set was inaugurated on the beach of Dongjiang The Tianjin Fashion Week kicked off series of economic and trade agreements, Power Solutions. “We are forecasting 25 of training programmes and courses for Bay in Tianjin. The new club will improve with a series of high-impact events and The world’s third wine exchange settled covering aviation, energy, and other million annual new car sales in China by Tianjin Eco-city social workers and send services, enrich aquatic activities in the runway shows featuring talented young in Dongjiang Free Trade Port Zone of fields. One of the most attractive, related 2015. This plant is a further indication of them to Singapore for internships. It is scenic area, and meet the demands of people designers. As the host hotel of The Tianjin. It’s the third wine exchange to Tianjin, outlines China and Russia the strategic importance of this market the first case of social workers’ training who love the sea. The club owns 14 sailing Tianjin Fashion Week, The St. Regis opened after London International Wine setting up a joint venture to produce a for Johnson Controls.” Johnson Controls based on international cooperation in boats, 16 sailboards, and other waterskiing Tianjin has definitively established Exchange in England and Bordeaux new type of long haul airliner, which Chairman and Chief Executive Officer, China. With a duration of three months equipment. It has more than 1,200 members, itself as the dynamic focal point for Wine Exchange in France. Under the could challenge the status of Airbus Steve Roell, attended the ceremony along the training programme will combine some from other cities and provinces, such sophisticated trendsetters in one of previous system in China investment and Boeing. The corporation will be with local government official Deputy traditional classroom teaching with as Beijing and Heibei province. A sailing China’s most modern and cosmopolitan in wine had been a condition of established in Tianjin by OAK from Secretary-General of the CPC Tianjin internships in Singapore, make students race for people from Beijing and Tianjin cities. The Tianjin Fashion Week events “having a price but no buyers”. Now, Russia and COMAC from China. The Municipal Committee He Lifeng, and Vice get to know macroscopic management has been co-organised by the Dongjiang introduced China and the world to the with Dongjiang’s Mingzhuang Wine total investment is estimated to be USD 7 President and General Manager for Johnson profiles, basic situations and mode of Bay Scenic Services Company and the Autumn and Winter collections of some Exchange, which is cooperating with to 12 billion, and will take around seven Controls Power Solutions Asia, Shu Yang. social administration in Singapore, and “Sky•Ocean•Wind” club to be held in of the most promising talents from Italy German Wiesloch Chateau, investing in years to complete. Russian media released Construction of the Tianjin plant will begin acquaint them with the advanced ideas September. A nationwide sailing camp for and China. “It has been a thrill working wine has become easier. Mingzhuang that China and Russia were promoting between 2012 and the first half of 2013 with of community administrative service as youngsters is expected to begin during the with our partners to roll out the city’s Wine Exchange is where clients can their feeder liner projects and Russia production expected to start in late 2014. well as organisation forms and practical summer holiday. The Dongjiang Bay scenic inaugural Fashion Week,” said Paul trade in the business of distilled spirits, would be the perfect partner for China to The Tianjin Plant will produce more than 6 operations, so as to improve the students’ area is a popular choice for relaxation, Cunningham, General Manager of The bulk wine, and regular bottled wine. speed up its feeder liner development. million batteries annually at full capacity. capabilities of providing services and vacation, and recreation, especially for those St. Regis Tianjin. It also provides services for vintners, - Business Tianjin, 11 June - iStockAnalyst, 6 June carrying out community management. living in Tianjin and Beijing. - Business Tianjin, 11 June distributors, consumers, and investors. - tjbhnews.com, 11 June - China Daily, 5 June - Business Tianjin, 8 June

8 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 9 Biz Briefs Biz Briefs

FINANCE China Foreign Trade Growth Insurance for Foreigners to Be Korean Air Resumes Services to Chinese telecom firms to avoid damaging Rebounds in May Simplified Irkutsk the current “win-win situation.” “China CNY Trades at Lower JPY-12 Level China’s foreign trade growth trumped Social insurance payments for foreigners Korean Air will resume its services to hopes that the EU can stick to the consensus on 1st Direct Trading Day market forecasts to post double-digit rates in China and Chinese citizens working Irkutsk from 1 June until 30 September. that no more protectionist measures should in May, boosted by slightly-improved overseas, will be simplified under Irkutsk, one of the biggest cities in Siberia, be rolled out, (as) agreed during the Group external markets and more working days international agreements currently is known for its architecture, and being a of 20 (G20) Summit,” Chen said at a press in the month. China’s foreign trade rose being discussed, a senior social security gateway to an area famed for its natural conference after meeting with EU Trade 14.1 percent year on year to USD 343.58 official said. “We’ve held three rounds beauty. The Incheon-Irkutsk flight will Commissioner Karel De Gucht. Chen’s billion in May, rebounding from the of talks with Japan and one round with operate two times a week, utilising a B737 remarks came as the EU is reportedly 2.7 percent growth registered in April, France, and we have also held initial aircraft equipped with a ‘Boeing Sky considering action against China’s top data with the General Administration discussions with Sweden and Belgium,” Interior’ which includes full AVOD service. telecoms gear makers Huawei and ZTE. of Customs (GAC) showed Sunday. said Xu Yanjun, Deputy Director of the Operating every Monday and Friday, flight “The two sides must exercise restraint in The figure replaced the monthly trade Social Insurance Administration under KE983 departs Seoul/Incheon at 8:35 p.m. trade remedy measures through thorough On 1 June, the CNY fetched JPY 12.33 in record set in November 2011, when the Ministry of Human Resources and and arrives in Irkutsk at 1:00 a.m. the next exchanges and consultations. Otherwise, the Tokyo foreign exchange market at 9 foreign trade amounted to USD 334.11 Social Security. Xu said 11 countries, day. The return flight KE984 departs Irkutsk both sides are sure to be hurt,” he said. The a.m. local time, the first day for direct JPY- billion, the GAC said. Both imports and including Finland, Singapore, Denmark, at 3:15 p.m. and returns to Seoul/Incheon at minister also called upon the EU to create CNY trading. Japanese Finance Minister exports reached record highs in May, Spain and Switzerland, have expressed 6:55 a.m. the same morning. Geographically an open, equitable and fair environment for Jun Azumi announced that JPY-CNY direct with exports climbing 15.3 percent from their willingness to negotiate with China located on the border of Russia and Chinese enterprises investing in Europe, trading would begin on June 1 at the Tokyo a year earlier to USD 181.14 billion, since a regulation, which stipulates Mongolia, the popular tourist destination adding that China is willing to join hands and Shanghai markets. The direct JPY- and imports rising 12.7 percent to USD that all foreigners working in China Irkutsk is a city that sets the starting point with the EU to launch negotiations on CNY trading will reduce the transaction cost 162.44 billion. In May, the trade surplus will be covered by social security, took of Lake Baikal (‘Blue Eye of Siberia’), the the China-Europe Investment Treaty to and exchange risk in bilateral trading and hit USD 18.7 billion, slightly higher than effect on 15 Oct 2011. China’s Social oldest and deepest freshwater lake in the provide better and more equitable legal and investment, allowing Japanese and Chinese the USD 18.42 billion, seen in April. The Insurance Law allows foreign workers to world. The lake can be enjoyed year-round institutional guarantees for investors from companies involved to benefit from the new better than expected data showed China’s enjoy retirement, medical, work-related as the waters remain cool even in the middle both sides. system. The trading rate will be determined foreign trade has stepped out of its injury, unemployment, and maternity of the summer. Visitors come from all over - Global Times, 1 June in different ways on the two sides. In previous rut, said Huo Jianguo, Director insurance similar to those for Chinese for tourist attractions, nature trails, and lake- Shanghai, Chinese monetary authorities will of the Chinese Academy of International citizens. The agreement between China side activities. GENERAL release a reference rate every morning. In Trade and Economic Cooperation under and Germany exempts workers from the - Skynews.co.kr, 17 June Tokyo, the exchange rate will be determined the Ministry of Commerce. other country from paying endowment China Vows to Make Greater by market. - Global Times, 10 June and unemployment insurance. The deal TELECOM Environmental Protection Efforts - Xinhua News, 1 June with South Korea exempts workers from China will make more efforts to cut LAW & POLICY paying endowment insurance, Xu said. New iPad to Debut on China’s oxynitride emissions and improve the quality China Housing Market Shows Signs - People’s Daily, 5 June Mainland of surface water, an official with the Ministry of Warming China Delays Tough New Capital Apple Inc has received a of Environmental Protection (MEP) said at a Faint signs of warming have emerged in Rules for Lenders until 2013 LOGISTICS telecommunications license to release Tuesday press conference. “China will make China’s property market as the extended China decided to delay the the new iPad in the domestic market and new policies and carry out projects to solve fall in prices began to moderate in May, implementation of new bank capital Scoot Takes off, More than 100,000 will probably launch both the Wi-Fi and environmental problems, such as heavy a key survey showed. The data, compiled rules that are tougher than the Basel III Seats Sold 3G versions on the Chinese mainland, metal pollution and the growing discharge from a survey of property developers and requirements to the beginning of 2013. A Scoot’s ticket sales have exceeded the according to the approval document. of pollutants in rural areas,” Wu Xiaoqing, real-estate agencies, followed a report statement published on the government’s 100,000 mark, one day before the no-frills The new iPad has been approved by Vice Minister of Environmental Protection, by another provider on Wednesday that official website said the new rules, which carrier’s inaugural flight to Sydney on 4 June the Telecommunications Equipment said on Tuesday. He said China will draft a showed transactions were up in some align with international standards and are 2012. Singapore’s first low-cost, long-haul and Certification Center. The iPad law concerning environmental protection major cities in late May. However, in tandem with China’s existing capital airline currently flies to four destinations: will support 3G WCDMA technology, taxes as a form of economic encouragement housing prices in 100 major Chinese regulatory system, will take effect on 1 Sydney, Gold Coast, Tianjin and Bangkok, which is adopted by China Unicom, for polluting companies, adding that the cities were lower year-over-year for the January 2013. Systemically important and its average fare costs 40 percent less according to the website of the center, Ministry of Finance, the MPE, and the State second straight month in May. On 30 May banks must have a capital adequacy ratio than those of full-service airlines. Two an organisation under the Ministry of Administration of Taxation are working figures from data provider China Real of 11.5 percent while non-systemically more routes will be added by the end of this Industry and Information Technology. At together on the draft. “China will apply the Estate Information Corporation showed important lenders need to maintain year. The airline is eyeing destinations in the end of March, Apple received a China environmental protection tax to companies that in terms of floor area, housing sales a ratio of 10.5 percent, the statement China next. Chief Executive of Scoot, Mr. Compulsory Certification for the iPad that are in need of pollution control,” Wu in the final week of May rose 39.6% said. The China Banking Regulatory Campbell Wilson said: “Obviously China’s from regulators, which is necessary for said, adding that enterprises will have to from a week earlier to 107,200 square Commission did not include the definition a market of great interest because of its all electronic devices before their debut bear costs that directly correspond to how metres in Shenzhen, and 27.1% over the of systemically important banks. The growth potential and number of people who in the domestic market. The mainland has much they pollute. A report on China’s previous week to 185,400 square metres CBRC said banks will have to scrutinise are entering the middle class and are looking become Apple’s No. 2 regional market environment for 2011 was also issued in Shanghai. “Transactions have bottomed operational risks in addition to credit to travel.” When setting up the airline, time globally, behind the US. Tuesday. The report said a total of 24.04 out but I don’t think that means prices risk and market risk under the tougher was a key challenge for Scoot, said Mr. - Eastday, 1 June million tonnes of oxynitride were emitted in will go back up,” said Michael Klibaner, rules. It lowered the risk weighting for Wilson. Given only 12 months to start the China last year, up 5.73 percent year on year. Head of Research for China at Jones credit to small and micro enterprises, airline, many projects had to commence China Urges EU to Refrain from - Xinhua News, 5 June Lang LaSalle. “Developers will still have personal loans, as well as debts of public in the early phases: Seats took a long time Protectionism Against Telecom Firms difficulties in regaining pricing power sector entities, while the weighting of to procure, aircraft design took a lot time, Chinese Commerce Minister Chen Deming To subscribe to our daily Biz because of the high inventory levels.” interbank liabilities will be increased to along with interior design and fittings. urged the European Union (EU) to refrain Brief E-newsletter, please email - WSJ, 1 June an appropriate level, the statement said. - AsiaOne News, 3 June from taking protectionist measures against [email protected] - Shanghai Daily, 7 June

10 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 11 Numbers New Appointments 15 597 1,650 The world’s fattest cat The main structure of 117 The first high-end ice rink will Mr. Franz Richter Appointed General Manager of The Ritz-Carlton, Tianjin appeared in an animal shelter Building, the tallest skyscraper in open at TEDA in Tianjin. The The Ritz-Carlton Hotel Company LLC, has announced the appointment of Mr. Franz Richter as General Manager in the US recently. The cat Tianjin, will move above ground Austrian company AST will of The Ritz-Carlton, Tianjin, which is set to open in 2013 as the city’s newest landmark. weighs by the end of July, hopefully on undertake the project, and the Franz has enjoyed 30 successful years in the hospitality industry throughout Asia. He started his career with The about 15 the 30th. 117 Building is designed project area will cover 1,650 Ritz-Carlton Hotel Company in December 2008 as the General Manager of The Ritz-Carlton, Seoul. Under his kilograms, to have 117 floors, with a height square metres. leadership, The Ritz-Carlton, Seoul, took the care and comfort of its guests to new levels, and was recognised with the “Best Improved Guest Engagement Result”, in 2011 by The Ritz-Carlton Hotel Company LLC. equal to of 597 metres. that of a Prior to joining The Ritz-Carlton Hotel Company, Mr. Richter held senior positions with Hyatt, Shangri-La, and InterContinental Hotels Group. He has served in Hong Kong, Bali, Jakarta, Surabaya, Dubai, Fukuoka, 4-year-old and New Delhi. child. A diet Franz is a graduate of Stadthagen Hotel University. He started his hotel career as a trained chef, and his leadership has been 21,196.18 has seen him appointed General Manager early in his career. designed Mr. Tong Mingkang, Vice for it by the Speaking about his new appointment as General Manager of The Ritz-Carlton, Tianjin, Mr. Richter said, “The new Minister of State Cultural Relics Ritz-Carlton project in Tianjin is an opportunity to create a landmark property in the city, and raise the bar for shelter. Bureau, declared during an exceptional luxury experiences in China. I believe innovation combined with a dedicated workforce of engaged event on 5 June, that the total ladies and gentlemen will help to create memorable experiences that will drive our market share in the city.” length of the Great Wall of all the past dynasties is 21,196.18 1,318 kilometres. 9 Tianjin plans to enhance its Tianjin Metro Line 9 will start Mr. Nick Du Appointed Ms. Celin Chen Named inner-city railway network. The test operations beginning in Executive Sous Chef of Director of Sales of rail mileage will be increased September. Then, people will Hyatt Regency Jing Jin Holiday Inn Tianjin up to 1,318 kilometres within be able to travel all the way City Resort and Spa Aqua City the next 5 years. from Tianjin Station to Donghai With over 27 years’ culinary Celin Chen has been named Road in Binhai New Area. The working experience, Mr. Nick Director of Sales of Holiday fare will be CNY 9. Du He has since worked at many Inn Tianjin Aqua City. A 300 bln famous hotels and restaurants in graduate of Blue Mountain Tianjin, Beijing, Japan and US. International Hotels Tianjin Harbour Economic He began his professional career Management School, she has Area has become a hotspot 150m at Tianjin First Hotel, and then worked for Raffles for 3 years worked at Hyatt Regency Tianjin before rejoining IHG. Ms. favoured by investors from The new factory of Tianjin’s and Grand Hyatt Beijing. Prior Chen started her career in home and abroad after 8 years’ 167 Samsung Electronic to his appointment at Hyatt 2002 with Shangri-La Hotels. of development. So far, it has 167 cultural businesses Company, Ltd. began Regency Jing Jin City Resort and Working her way through the attracted more than a CNY 300 have incorporated in Sino- construction in Binhai New Spa, Mr. Nick Du was hired as a ranks since joining IHG as a billion inflow of investments. Singapore Tianjin Eco-City. Area and investment in the chef de cuisine at New York Restaurant, Miami Restaurant, MR. Chow brand management trainee Restaurant and Treasure Restaurant. at Crowne Plaza Park View, It’s predicted that the added project has been increased by Wuzhou Beijing, she decided to return to IHG due to her passion for value of the cultural and CNY 150 million. The project With a third-level Chinese chef certificate and being first-grade dim sum chef, Mr. Nick Du is expert in northern dim sum items, innovative its culture. creative industries will surpass is estimated to be the largest Chinese cuisine and Shandong, Sichuan and Suzhou cuisine, as well In 2006, she joined sales and developed a rich experience with CNY 2.5 billion by the end of outbound manufacturing base th as local food from the north of China. During his culinary career Mr. international chain hotels, such as Shangri-La Hotels Group, the 12 5-Year Plan Period. of Korea’s Samsung Group. Nick Du has been invited to attend the Food Festival and Culinary Intercontinental Hotels Group, and Raffles Hotels & Resorts. Exhibition at Hyatt Regency Macau, Grand Hyatt Fukuoka, Grand Hyatt Seoul, Grand Hyatt Santiago, the Global Hyatt Headquarters and 980m 181 the Culinary Institute of America. Qilihai Wetland, the core of During the 8-day 2012 China Tianjin Ancient Seacoast and Tianjin International Auto Swamp Reserve in China, has Renaissance Tianjin TEDA Ms. Portia Liu Appointed Industry Fair, more than 23,000 become heaven for rare birds Convention Centre Hotel D i r e c t o r o f S a l e s & people visited the exhibition as the environment improves. Announces New Appointment Marketing of Renaissance every day. 6,800 cars were According to statistics, 181 bird Mr. Eric Yuan has been appointed as Tianjin Downtown Hotel sold with a sales amount of species are found in Qilihai Director of Marketing of Renaissance Ms. Liu started her hospitality CNY 980 million. Wetland. Tianjin TEDA Convention Centre career in 2002 and has more than Hotel. 10 years experience with Marriott Mr. Eric has valuable experience in Group for Renaissance, Courtyard, sales and marketing. He used to work as and Marriott brand hotels. In her Director of Sales in IHG, Carlson Hotels new role, she will be responsible and Renaissance Tianjin Lakeview for the development and execution Hotel. Before joining us, he worked of hotel sales and marketing at Holiday Inn Tianjin Aqua City as activities, and leading the entire Director of Marketing. sales team.

12 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 13 Economy Economy

Chinese inflation also slows, stimulus “very likely” goods is falling, finding workers in southern China is harder than last year, according to an annual survey conducted by July China Economy Report China's inflation eased to 3.0 percent in May as other data the Chinese Manufacturers’ Association of Hong Kong. released on 9 June indicated a slowdown in the world's By Hyuk-tae Kwon second largest economy, giving Beijing more room to ease This is surprising, given there are fewer orders to be monetary policy to stimulate growth according to AFP. filled. In the first three months of the year, 86 percent of respondents saw orders fall or stay flat, compared with 72 percent last year. After all, the struggling economies of the US and Western Europe are the biggest importers of Chinese products.

At the same time, over 90 percent are struggling to hire enough workers. On average, they are 14 percent short of the number of staff they need, compared with 11 percent last year.

One reason is the Guangdong government’s December decision to suspend a planned increase in the minimum wage. At the time, that decision was cheered by factory It’s good news that inflation is below the four percent owners who were already struggling to cope with a 21.2 target set for this year and should provide more percent rise in minimum wage imposed in 2010. The flip breathing room for Beijing to stimulate the economy. side is that even fewer migrant workers now feel it’s worth "Inflation is easing as expected, or easing even faster their while to work in the province, where the cost of than expected, which is mainly due to economic living is among the highest in the country. weakening not only in China, but also around the world," said UBS economist Wang Tao. “My friends have built cinemas and bowling alleys in their factories to try and retain staff. They have raffles to lure China’s labour shortage problem is getting worse back workers after the Chinese New Year holiday. But it’s been useless. The migrant workers still don’t want to stay,” Despite that global demand for Chinese manufactured Irons Sze, President of the CMA, and whose family owns

China’s second-quarter economic growth could fall in the second quarter at 7.9 percent. This would also mark below 7 percent the sixth straight quarter of slower growth. They forecasted full year growth is 8.2 percent. China’s economy is slowing down at an alarming pace. China’s industrial output growth, which usually outpaces Beijing has been stepping up policy steps to combat the GDP growth by 3-5 percent, rose 9.6 percent in May from slowdown, cutting interest rates by 25 basis points in early June a year earlier, slightly increasing from a three-year low of for the first time since the depths of the 2008-2009 global crisis 9.3 percent in April. and fast tracking infrastructure and industrial investment projects, according to Reuters. China has also cut bank reserve Zheng Xinli, a former Deputy Director of the Chinese requirements three times since December as policymakers communist party's policy research office, is one of the most hope to boost lending to help growth according to AFP. bearish economists on China’s economic outlook. “GDP growth in the second quarter could fall below 7 percent Cutting interest rates and bank reserve requirements are if there is no significant improvements in economic seen as a policy signal by Beijing of easing monetary policy data for June," the overseas edition of the People's Daily to stimulate the economy. As mentioned in the June China quoted Mr. Zheng, now Deputy Head of the China Center Economy Report, this is not an effective tool to boost the for International Economic Exchanges (CCIEE), a top economy and may undesirably boost inflation. government think-tank, as saying. Inflation, industrial output, and retail sales all showed While the market anxiously waits for Beijing to publish slowed economic growth in May, but exports and imports second-half economic indicators in mid-July, analysts were much better than forecasted as stronger U.S. demand forecast in a Reuters benchmark poll in May that China helped offset weakness in Europe stemming from the would deliver its weakest quarter of growth, in three years, region's debt crisis, according to Reuters.

14 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 15 Economy Economy

Three-month CNY trends

CNY vs USD

6.38 6.35 6.32 6.29 6.26 6.23 6.2

CNY vs GBP 10.5

10.3 a fibre manufacturing business told Financial Times. of debt. Shares in overextended builders listed in Hong Times, there has been a “huge” influx of wealthy mainland 10.1 Kong slumped last year on fears of a cash crunch. Chinese shopping for high-end properties in New York 9.9 The only way out seems to be a move up the value chain. since the start of the year. 9.7 Having your own brands would bring better profit margins Now, some developers see green shoots. Alarmed by 9.5 and better growth prospects, especially if they appeal slowing economic growth, Beijing has begun to ease up on “It’s extraordinary,” she says. “Five years ago, we never to mainland Chinese consumers. More than half of the credit restrictions and fast track public spending. “Market talked about Chinese buyers. We started noticing them survey’s respondents are moving in that direction. sentiment is very positive,” says Simon Fung, Chief 18 months ago, but they have only become much more Financial Officer of Greentown China Holdings, a luxury prevalent in the past year.” Sze warns that the bureaucracy and taxes involved are developer. He says sales data showed an uptick in May as together more complicated than a traditional contract buyers sensed that prices have bottomed out. The National Association of Realtors says that from March CNY vs EUR manufacturer is used to. “That is why original equipment 2010 to March 2011, the Chinese became the second largest 8.75 manufacturers have started switching to [manufacturing Greentown isn’t alone. Moody’s said in May that 11 of the foreign source of home buyers in the U.S. after Canadians, 8.5 for other brands] in recent years. It’s not because they 29 Chinese developers that it rates face liquidity pressures. making some $7.4 billion worth of private home purchases, particularly want their own brands. It’s just that they don’t In total, the 29 rated developers owe USD 25 billion in or 25 percent more than the previous year. 8.25 have a choice,” he said. debt that matures in 2012, of which USD 5 billion is held 8 offshore. Credit costs have risen sharply. Developers rated Reasons for purchases, explained by Financial Times, vary 7.75

Chinese real estate market in chaos below investment grade are paying yields of over 12% on say those who have dealt with overseas Chinese buyers. 7.5 offshore bonds, according to Moody’s. Some are buying because they want to emigrate or they The below story, by Financial Times, captures Chinese have children who will go to school in the US. Others home-buyer sentiment these days. While developers argue that they’re building to meet real buy because the numbers add up; despite its recent dip, demand, property remains a favoured depository of wealth the CNY is still up more than 4 percent against the US Feng Mingshun emerges from the condo showroom, in China, as in much of Asia. Poorly performing stock dollar since the start of 2010, while US house prices are blinking in the midday sunshine. He’s just signed over markets, limits on overseas investments, and bank deposit still in recovery mode and appear cheap compared with CNY vs JPY a 50% down payment on his first home, a $250,000 rates that lag inflation, have all reinforced this bias towards Australia or Canada. 0.084 apartment in a half-finished tower in a distant Beijing speculation in real estate. This in turn drives up prices to 0.082 suburb. To do so, he had to pool savings of his parents and levels that squeeze out would-be owner-occupiers. “When you look at how cheap US real estate is now 0.08 his in-laws, who plan to live with Feng and his wife. Still, compared with China, it makes a lot of sense to buy there, 0.078 the 31-year-old is playing it cool. “I feel some relief. We’ve China’s wealthy upper class, flush with cash, isn’t happy especially since you have more rights when you own a 0.076 been looking for a long time,” he says. “For us, this is a with sitting on money in the meantime. Its hunger for property in America,” said a wealthy Chinese investor who 0.074 good time (to buy).” property is now sending buyers overseas. Wealthy Chinese has bought several properties in the US, but asked not to 0.072 home buyers are now regularly shopping for properties in be named so as not to draw attention to the fact of shifting Chinese property developers have been gripped by places like New York City, Los Angeles, and San Francisco assets abroad. government policies aimed at slowing down widespread in the U.S., and in Vancouver and Toronto in Canada. real-estate speculation. After peaking in early 2011, prices Visit us online: of residential property in cities across China have dropped, Amela Liebman, Chief Executive of The Corcoran Group, btianjin.cn/120701 Data source: Oanda.com interbank rate leaving developers troubled by unsold inventory and piles a residential real estate brokerage company, told Financial

16 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 17 Dialogue Dialogue Where is Standard Bank operating at acquire or projects to pursue in Africa, York to source and close unique cross- the moment? Russia or Brazil?” Then we investigate border opportunities with Chinese Inside the financial mind We are an emerging markets focused and package opportunities, develop investors and contractors. Interview with Craig Bond, Chief Executive, Standard Bank China and ICBC Strategic Partnership retail and investment banking group . solutions, broker deals, and raise the We have universal banks in 18 African capital required. Standard Bank is thus What kind of investments is Standard countries, significant operations in a partner, rather than a competitor Bank involved in? Asia, and a presence in key capital to Chinese banks, as we assist their Standard Bank specialises in three markets like London, New York, large Chinese clients to ‘go out’ and major sectors: Mining and Minerals, tandard Bank is Africa’s Dubai, and Hong Kong where capital invest abroad. ICBC (Industrial and Oil and Gas, and Power and largest bank with a history and liquidity for emerging markets Commercial Bank of China) is our Infrastructure. Most of our customers dating back 150 years. Also are sourced. We are absolutely focused main strategic partner and our group’s are Chinese state owned enterprises Sproud to be an African bank with on the BRICS and select emerging biggest shareholder with a 20.1% stake. looking to invest in other BRIC nations a strong presence in 18 African markets, and so you won’t see us (Brazil, Russia, India, and China). countries, Standard Bank’s focus pitching for business in the developed We also do many deals across Africa. is connecting BRICS countries markets of Europe, the US., or Japan. What are your main responsibilities? In fact, we just facilitated the largest and facilitating cross border My day job is running Standard Bank’s mining deal in Africa for 2011-2012. trade and investment banking Where does Standard Bank fit into operations in China. This includes our We acted as advisor in the acquisition transactions between them. the Chinese financial sector? investment banking advisory business by Jinchuan Group of Metorex, a large At the centre of the bank’s China Our role in China is a fairly unique in Beijing, and our commodities African copper mining company. operations and its strategic one. We help private Chinese trading business in Shanghai. I also The deal was worth ZAR 9.1 billion. partnership with the world’s companies and State Owned work very closely with ICBC, but in Our role is to source opportunities, largest bank, ICBC, is Chief Enterprises (SOE’s), to source, invest truth my primary role is to ensure our help Chinese clients understand local Executive, Craig Bond. Craig’s in, and fund large assets and projects Beijing, Shanghai, and Hong Kong markets and risks, raise capital, develop resume is an impressive read. in foreign markets. Our clients ask teams are connected to our teams risk mitigation strategies, and then Born in Johannesburg in 1978, us, “are there good value assets to in Africa, London, Dubai, and New hopefully close the deals. he obtained a Bachelor of Commerce, Bachelor of Law, and Higher Diploma in Tax Law degree. He later attended Harvard Business School to complete the Senior Executive Programme. His career history includes a number of important positions within the banking sector and elsewhere. Some of his previous posts include Managing Director of American Express Cards, Travel and Foreign Exchange Services; Managing Director of Tourvest, Africa’s largest tourism company; Chairman of Mastercard (Asia, Middle East, and Africa Region), and Chief Executive of Standard Bank Africa. In his current role, Craig runs Standard Bank’s operations in China.

18 Jul 2012 I Business Tianjin Photo by Meng Yu Jul 2012 I Business Tianjin 19 Dialogue Dialogue

This is a unique and exciting time Many people around the world have rogue traders or poor risk management low cost work force, and in many liken Africa to China 30 years ago, for Chinese investors. We hope to blamed investment banks for the systems. Personally, I believe instances resource rich geographies. where infrastructure was poor, encourage the use of China’s large global financial crisis. What are your regulations should be aimed at making Investing in these opportunities has education was lacking. and resources foreign capital reserves to find good views on that? banks go back to basics, helping the potential for excellent returns. were not very abundant. One major investment opportunities that will This is a complex topic. I personally provide finance and safe investment difference is that Africa has huge help other nations develop their believe that the economic cycle products to individuals, companies, untapped natural resources to fund infrastructure and their economies. has much to do with our current and governments. We ought to be In reality, good the required infrastructure refresh In Africa, the first wave of investment difficulties in the world economy. working to provide the capital and banks will always required. Africa also has a young was infrastructure: roads, rail, bridges, Prior to the financial crisis, we had liquidity required to help companies population which is great for labour dams, and airports; the next wave looks been through 15 years of boom and economies grow, create jobs, and survive and play a markets and economic growth. The to be renewable energy, and hopefully around the world, and at some point stimulate jobs and innovation. positive and important weather and rainfall over much of the third wave will be manufacturing. the world economies had to cool Africa is very good for agricultural This is not one-way traffic. China down, deleverage, and rebalance. The What were your bank’s aims at role in facilitating production, urbanisation is rapid, and needs Africa for its resources and new sub-prime mortgage situation in the the 2012 China Global Outbound improvements in the continent already has some of the consumer markets, whilst Africa needs U.S, and the way investment banks Investment Summit? economies and world’s fastest growing economies. China for its capital, infrastructure, and hedge funds packaged and sold In terms of the summit, we wanted It’s very hard not to be optimistic and engineering skills. I see continued those assets, undoubtedly had a role to get the message out that there people’s quality of life. long-term, but there are likely to be potential for the development of a win- to play in the eventual meltdown. are many fantastic investment some challenges and bumps in the win relationship going forward. The financial products got far too opportunities in some parts of road. Good investment opportunities complicated. However, I still believe the world that people wouldn’t What does Africa’s economic future are abound in Africa, but investors With increasing globalisation, how much of what happened was simply usually consider. We want to tell look like? will need to do their homework, important is the Bank’s image as a highly leveraged world needing to Chinese investors that there are Africa’s population is growing understand their risks, and seek good a South African brand? Does this rebalance itself to regain equilibrium. great opportunities in many African fast with a very young urbanising advisors before taking the plunge. China now has a much greater give the company any advantages in It’s a difficult time to be a banker countries. There are many African population. Coupled with the amount of capital. How does emerging markets? because it is so easy to blame bankers countries which have increasingly growing affluence and sophistication Standard Bank help it utilise this new That’s an interesting question. We for the financial crisis, and in many stable democratic societies, good of Africans, I have no doubt that Visit us online: financial capability? don’t consider ourselves to be a South instances we’re an easy scapegoat institutions, solid economic Africa will become an increasingly btianjin.cn/120702 We do many things in this regard. We African bank; we are really a pan- for politicians who are keen to avoid foundations, a willing and able important consumer market. I often serve as advisors to Chinese SOE’s, African Bank. It is great that our brand blame. multinational corporations, African is regarded as being ‘the most trusted’ governments, and Central Banks in and that it is gaining stature in Africa, In reality, good banks will always order to make deals happen. We take China, and abroad. We are very proud survive and play a positive and Chinese investors to Africa and BRIC of the reputation we have developed. important role in facilitating countries to show them the kind of Our history and legacy is a very improvements in economies and assets that are available. These include important part of our culture. people’s quality of life. Correctly mining and energy assets and large managed, banks have a very positive infrastructure projects, for example. There are many unique things about role to play in society and facilitating We help them to understand the South Africa. As a result of years of economic growth. People need processes and risks involved with isolation during the Apartheid era, to have faith because the current operating in these markets, and help a very innovative and self sufficient situation will eventually give greater them structure and manage the risks of national culture developed. Apart balance to the global economy. large financial transactions. In one such from the world’s first heart transplant, The rebalancing is taking time but deal we worked with the Botswana the world’s first coal to oil technology, I believe that the world’s troubled Power Company, ICBC, the World and many other innovations , a economies will indeed bounce back, Bank, and contractor CNEEC (Chinese very sophisticated financial sector even though it will take longer than National Electrical Engineering developed including our capital and most people had hoped or expected. Company) to finance and build a new equity markets and banking systems power station in Botswana. It’s not only and technology. I think another very Do you think there needs to be about resources and infrastructure, we positive benefit of being a South more regulating of financial sectors are also very involved in agricultural African bank is that we are very to prevent this kind of crisis in the finance. Ghana is the world’s largest multicultural. Due to our difficult future? producer of coco beans. Every year history, we are used to encountering The short answer is yes. There needs to the farmers of this massive crop need racial and cultural challenges, seeking be more of the right kind of regulation, to be funded, and so for the past few strength out of diversity, overcoming more transparency, and more scrutiny years we, have worked with a syndicate racial and cultural barriers, and this of the complicated financial systems of Chinese and International banks to helps us to integrate and operate and product we see today. Every week, fund this annual crop. successfully in difficult foreign markets. there are stories of money being lost by

20 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 21 Dialogue Dialogue

a huge problem for China, but if the usually get this money is through the has a huge return of capital spread financial and banking sectors hit a financial markets, and it depends on across all these people, and if it brings rough patch it will probably be hard how well they are working. You need people into the education system it for them. to have good financial markets, and will be a success. to do that you need to have a society, A World of Why are some countries growing a culture, and a government that China is investing heavily in the quickly and not others? What are enables people to lend money and pay quantity and quality of education the most important factors? it back. In Greece right now, they [the but competition remains intense Well firstly, we should recognise financial institutions] are worried and the selection of talented Difference: that countries’ not growing is really that the country is not going to pay students is still limited. Do you the norm. We’ve had thousands of money back. One thing we have been think China will eventually slow years, and hundreds of countries reminded of in the last few years is down because of the competition it Why are some that have not grown. When a person that financial markets are vulnerable. has with the West in this regard? has a certain amount of capital, that If you don’t have sound financial Something I see in the United States countries growing individual becomes less effective as markets then it’s very difficult to get is how many students from mainland they get more capital. For instance, your country to grow. China get into degree programmes in he or she can only use one plough the U.S. If they go over to learn in the rapidly while or one computer. So the question is; Some economists say that in 2015 United States, then take those things ‘how can you get that person to use China will be the biggest economy back to their country, you will get others’ stagnate? more resources and more capital?’ in the world. Do you think we will innovation and knowledge. If you do If you don’t, then you are just going continue to grow at 7-8% per year that for a generation, then you have a Interview with Dr. Frank McIntyre, to slow down and not keep growing. and achieve this target? generation of people with training in The two key answers are education, I don’t know. I could guess, but we the right places. Assistant Professor of Economics at so that this person can learn to will have to wait to find out. If it’s not Rutgers Business School. use more things and technological 2015 or 2016, it will continue to grow How is foreign aid currently helping innovation, so that machinery is and if you keep growing 6, 7, or 8% countries in their development? Photo by Peter Zhang easier to use and you can use more of and the United States grows at 2 or It seems like it should do more than Text by Josh Cooper it. For both of these to happen, you 3% then the math is in your favour. it does. Over the last 30 or 40 years, need to have money upfront. There Sooner or later, it will become the over USD 1 trillion in foreign aid are many situations where countries largest economy because there are has been spent across the globe. So, don’t have this money, and they end so many people producing. China up in a poverty trap. The way we

he global economic crises of modernisation. Why is it that some looked at how institutions and the laws recent years has, more than countries are experiencing robust governing bankruptcy affect how many ever before, exposed the stark economic growth, while others are people file. We look, for example, at how Tcontrasts between dynamic emerging lingering in stagnation and endless financial incentives amongst different markets and those economies that cycles of boom and bust? Business lawyers affects corporate decisions, like are stuck in the grips of recession, Tianjin talked to Dr. Frank McIntyre, what kind of bankruptcy people are financial turmoil, and economic Assistant Professor of Economics filing, and the rates of success in these stagnation. On one hand, China, at Rutgers Business School, and proceedings. India, Malaysia, and Singapore, as a specialist in developing nations well as many countries in the Middle and global economics, to find some What do you think will be the effects East and South America continue answers to this economic paradox. of the current global economic booming, despite decreased demand situation? from the ruined west. Conversely, What has been the key focus of your Well certainly, China has been while Europe and the U.S. are research throughout your career? growing at a phenomenal rate. There struggling to stimulate sustained The area that I have worked most heavily are various concerns now about growth, Japan remains stuck in a on is financial markets and looking at inflation and how the slowdown in prolonged economic stagnation people filing for personal bankruptcy. the financial sector in Europe will that began in the early 1990’s, and I have done a fair bit of research on affect China, certainly in terms of raw there are still parts of the world questions like why bankruptcy rates exports. A recession or a slowdown yet to experience a rapid economic vary amongst different places, and in Europe is probably not going to be

22 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 23 Dialogue Summer Davos

Summer Davos 2012 – A look ahead to the biggest issues at Tianjin’s biggest economic event By Josh Cooper there are many examples of countries methods. Many African countries much on foreign investment. China receiving foreign aid, yet there is don’t have access to good waterways. is more of a lender than a borrower n just over two months time, the most global markets presents challenges for on how to utilise new technology and very little evidence that the foreign This is something that could be and if there is a financial meltdown, prominent gathering of economic and policymakers. Trade imbalances and advances in science. Important debates aid has consistently helped much at fixed in the long run. I don’t know it’s better to be a lender than a business minds takes place right here protectionist policies continue to hinder free will revolve around how to mobilise Iin Tianjin. The event, which runs between market trading. Participants at the forum will human capital and how to encourage all. For every example where aid is whether or not Africa will boom but borrower. So if that happens, China 11-13 September, is the annual summer be keen to give their thoughts on how the investment in technological innovation. seen to have benefited, there is an with all the jobs being created in East may be better insulated and it could conference held by the WEF (World world can promote fairness, competitiveness, Other big themes include space technology, example where aid has made things Asia and increasing wages in these be a position that they could take Economic Forum). It is known by many and supportive relationships between methods to leverage advances in medicine, worse. It is often like trying to fill a countries, there will be incentives for advantage of. as ‘Summer Davos’. Some of the world’s advanced economies and those still on the communication technology and data bucket with water when the bucket producers to move over to Africa. In most prominent economists, investors, path of development. Rapid urbanisation management. has a hole in it. When we think about terms of population increases, Africa In the West, should policymakers business people, and social commentators and the need for infrastructural change will The Future of Consumption: Energy, will arrive in Tianjin to discuss a range of be major subjects within discussions about how to structure these programmes, will either grow in population or grow act to correct the system and thus Food, and Resources we need to figure out a way to fill the economically. When a country grows stimulate growth? issues and hopefully shed some light on the future of developing societies. With the hole. I think the World Bank is aware economically and people get richer the You don’t need someone to decide to important socio-economic issues around global population set to rise rapidly over the The need for renewable energy has never the world. The Summer Davos is one of next 20-30 years, strategies for managing of these problems, and is trying to population growth really slows down. do this for it to happen. If you are not been greater. Now more than ever, the the most exciting and intriguing occasions mass demographic movements will also be world needs to consider how it can utilise be more effective with the kind of So if Africa grows economically, I making enough money, and you are for those in the business world. Over key to these debates. sustainable and efficient sources of power. foreign aid that they give out, but the would expect that they won’t have 4 spending even more than that, gravity three days, the conference will deal with The distribution and consumption of CHINA (and the rise of Asia) history of foreign aid is abysmal. On billion people by 2050. will take care of the problems. I don’t a broad range of issues. Here is a look natural resources is always an important the other hand, the history with trade know if you need to think about it as ahead to some of the prominent topics at Nowadays, it is almost impossible to have an talking point, as is the future of rural has been quite good. As countries With the current economic troubles some agent trying to rework things, this year’s event. economic discussion without the mention of economies and global food supplies. Key China. The rise of China, as a major player discussions will be held on the ways in trade they learn things from each in Europe, what are the major there is a sort of equilibrium. Greece The Global Economic Situation other and gain new technology and concerns for Chinese companies in has spent 50 of the last 100 years in in the global economy, provides an endless which businesses and governments can investment. We need to see these terms of future trade with the 27 default of one debt or another. The At present, there are large imbalances source for speculation and discussion. encourage better use of clean fuels and sorts of things happening in Africa. member states of the EU? surprise was that they were allowed and contrasts between the economic Members of the WEF will likely dedicate create thriving agricultural sectors. circumstances of different nations. Currently, a great deal of time to consider China’s Their main concerns are not so much into the European Union, not that this Corporate Issues there is turbulence in global financial economic and socio-cultural future. This will Analysts are suggesting that between the direct effects on exports as much problem has occurred. The United markets, as well as uncertainty for certain likely include themes such as: the impact of The event will not only discuss macro- now and 2050 Africa will have as the financial markets. If the EU States and the rest of the world are currencies, and a general lack of investor Chinese growth on global markets, Chinese economic questions, it is also very much significant population increases (up comes apart and it creates another heading for a debt crisis of some sort. confidence. Perhaps the crucial questions for financial reforms, the future of Chinese concerned with corporate culture and to 4 billion) and will become more worldwide financial crisis, then I can’t the global economy will be: How can the U.S society, and implications of the country’s business related issues. A vast range of topics important in the global economy. think of a worse example than the If you had USD 1 million, which and Japan stimulate growth? What should cultural renaissance. The rise of other Asian will be examined including: developing What are your opinions? effects it would have on the financial currency would you buy? the Euro zone do to stabilise its currency? economies will also be a central focus of the creativity, ‘intrapreneurship’, business ethics, Africa has some unique challenges markets this time. Financial markets (Laughs) I think I’ll pass on that! How can China, India, and other emerging conference. The ways in which these new enhancing corporate citizenship, and the because of their governments, but could completely shutdown, with markets prevent a further slowdown? capital and consumer markets will change importance of networks. the face of global capitalism remains a hot they also don’t have great water no one lending or borrowing to the Challenges of Globalisation, topic in economic discourse. transportation. The cheapest way extent that the companies relying on Visit us online: Urbanisation, Population Growth, and Visit us online: to transport goods is to sail across this money will struggle. Having said Structural Change Innovation in Science and Technology btianjin.cn/120703 btianjin.cn/120704 water rather than by train or other that, I don’t think China relies very The ever-expanding network of interrelated Contributors will share their vision

24 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 25 Dialogue Tianjin International School Becomes Even More International By Chris Wilson

he life story of incoming case, I have two (Australia and any disadvantages of such a We have the potential to achieve However, there’s always room for to foster a climate of creativity and Tianjin International School Finland). Secondly, you have the lifestyle? wonderful things here, and I also improving the curriculum. Yes, innovation, together with academic (TIS) Head Principal, country you currently live in. The One disadvantage can be a loss of want the expat community to feel we want to prepare students for excellence. I want TIS to be a school TRaul Harri, is as impressive as his third culture is a blend of these patriotism. I admire, and sometimes welcome at TIS, not just to study university, regardless of where they which enables students to reach qualifications and credentials. Born two. Also, different countries envy, my American and Chinese but to do other things. choose to go, and we’ll certainly do their potential, and the best way to in Papua New Guinea to Finnish have had different meanings, and friends who truly love, and have this, but we also need to do more than do this is to have teachers who have a parents, he moved to Australia represented different phases of my a special bond with their country. What are your aims for TIS and simply prepare students for college. passion for teaching, life, and truth. when he was twelve, graduated life. If you really pushed me on it, However, I personally believe how do you aim to achieve them? I believe an excellent education from an international high school I’d say Papua New Guinea, as I had the advantages of my lifestyle far One of my aims is to use my prepares students for what they do Are there any unique difficulties in India, returned to Australia to an ideal childhood there, and the outweigh the disadvantages. experience as a drama director after college, for life. International that come with teaching or working attend university, and has spent nature and beaches were amazing. and English teacher to continue to school students are the cream of at an international school? the last thirteen years living in But, all the countries I have been to What attracted you to TIS? build on TIS’s reputation for fine the crop. They are from educated There can be cultural boundaries various places throughout China. have been amazing, and I wouldn’t The biggest attraction is that TIS is arts. In many ways, fine arts are an families, and have advantages most to overcome. Those who are from a Therefore, difficult to imagine how have spent so much time in China truly looking to be international. international language, and I want other kids do not. They are going to mono-cultural background, and who TIS could possibly have found a if it didn’t have such a special place One reason I have been hired, is to to celebrate them. Another aim is be leaders in industry, and I feel we are teaching internationally for the more international candidate for in my heart. use my international background academic excellence. Of course this have a unique opportunity to give first time can often be tempted to the position, Harri’s intriguing to make TIS into a place where isn’t revolutionary; we are after all them a well rounded education, and compare things such as the food, the and multi-cultural upbringing is You moved around a lot everybody feels welcome regardless a school so academic excellence help them experience and prepare for rules, and the curriculum to those supported by sound qualifications, throughout your life. Are there of culture, belief systems, etc. has always been a priority at TIS. life. In order to achieve this, I want back home and think the grass is and over two decades experience in the education industry. With his appointment also enhancing TIS’s reputation of being able to attract outstanding candidates to the school, Business Tianjin was delighted to meet the latest administrator and hear his thoughts.

You have lived in many countries. Which one did you like the most? That’s difficult because I am what some people call a ‘third culture kid’. This is where, firstly, you have the passport country. In my

26 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 27 greener there. This is human nature. unique perspectives. They make TIS have recently moved. What So, our challenge is to try and lower friends from all over the world, are your thoughts on the new these cultural walls so that, rather and therefore learn empathy for facilities? than seeing the negative aspects of different views and cultures. It I was amazed. They are purpose the culture they are in, they can see broadens their horizons and opens built, international standard and enjoy the good aspects. doors to the world. I have three facilities. They are an excellent children who have been educated asset for the school, and in addition You yourself studied at an by this system, and my eldest has to benefiting our students, teachers, International School. Is this an just graduated. I see them entering and staff, I also hope they can be of advantage as a Headmaster? the world with the confidence to service to the Tianjin community. It means I can empathise with the face new and unexpected things, struggles and joys of being an expat. I and this is something that is Any closing thoughts? know it can be hard for kids who are hard to achieve without such an I believe that parents are responsible, away from their passport country, and experience. Nowadays, we live in a and also ultimately accountable, for when I was younger, I truly valued the world where borders and walls are how they educate their children. The teachers who cared for me, took an less important than they once were, best kind of school is a partnership interest in me, and who understood and international school prepares between parents, teachers, and what I was going through. They students for this global world. the administration. When this made a big difference. Hopefully, as partnership is healthy, then students Principal of TIS, I can help promote a Why should expat students are in the best possible place to culture of empathy where kids know enroll in TIS rather than other benefit from school. I encourage they have people who understand international schools in Tianjin? perspective parents to come to the what they are going through, and are Tianjin has a growing expat school, see the facilities, and have willing to journey with them through population and is big enough a chat. I look forward to moving to the challenges of life. for many international schools Tianjin and working at TIS. to coexist. I look forward What are the biggest advantages to collaborating with other of studying at an international international schools in Tianjin. Visit us online: school? I do believe that TIS has a unique btianjin.cn/120705 International school students program and culture to offer, and I learn to see life and the world from invite parents to come and see why.

About TIS: Tianjin International School moved to brand new facilities in Hexi District in January 2012. The new campus is 2.5 times the size of the old campus and features 75 classrooms, 5 science laboratories, 2 libraries, a full performing arts center, auditorium, gymnasium, separate playgrounds for the kindergarten and elementary students, and much more! The facility is purposefully designed to serve international students to help them reach their full potential.

28 Jul 2012 I Business Tianjin Feature Story Feature Story Tianjin Track Races for Replacement Investor Local conglomerate seeks to replace Dubai investor, builder By Mark Gao

huge equestrian-themed original plan, announced in 2010, development in Tianjin’s most of the construction was to outskirts is racing to find have been already been completed Ainvestors after a Dubai-based real by a joint Chinese-Dubai venture. estate developer withdrew earlier this year. Zhang Yu Hai, Chairman Surprisingly, the site shows little of Hua Zhi Jie Horse Industry evidence of the signage or slogans Investment Co, part of the Tianjin with which Chinese officials like State Farms Group, told Business to announce new major projects. Tianjin that while his Tianjin Horse Factories, filling stations, and a City project lost the Meydan (Dubai) tame river are the main landmarks group as principle investor, he hopes marking the local area. Guards at a Malaysian design firm, the TAK the gate of the new Lian Run Meat Group, will bring new investors to Co factory, directly opposite the the project, which is estimated to be site, said they were unaware of valued at USD 2bln. Among the new when construction would begin. 4 investors lined up, is renowned Irish- 1 based Coolmore group, one of the The equine project is nothing, if world’s leading race horse breeding not ambitious, for Ninghe County, 3 and training centres. hitherto a rural township of Tianjin 2 city. When first announced in The Meydan Horse City, also 2010 by Meydan City Corporation, 1. (left to right foreground) Mr. Eddie Irwin, Finance Director known as Tianjin Horse City, and this 5,000 mu (approximately 3.33 of Coolmore Stud; Mr. Bai Zhisheng, Chairman of the most recently called the Tianjin million square metres) site was Tianjin State Farm Agribusiness Group and Mr. Teo Ah Equine Culture City (TECC), set to eventually host training and Khing, Managing Director of The TAK Group. Second Row: Ireland's Minister for Agriculture, Food and the Marine, project was front-page news in racing facilities for 8,000 equestrian Simon Coveney TD and Vice Mayor of Tianjin, Mr. Ll Wen Xi. the world business press when professionals and breed 1,000 high 2. Workers planting trees on the site of the proposed Equine City it was announced in 2010. The quality studhorses. 3. A Chinese rider practises showjumping on an imported project includes 4,000 horse stalls, Dutch horse at an equestrian club near Beijing airport

150 trainers’ offices, five training In addition to an equestrian college, 4. A ground-turning ceremony for the project, in March tracks, two international standard feedstuff plant, breeding base, horse was not attended by any representative from Dubai race tracks, and an international hospital, and quarantine centre, construction group Meydan equestrian college. Tianjin Horse City also promised to include “five-star to seven-star” Most recently, UK and Irish media luxury hotels, as well as offices and The company Zhang heads, Hua reputation and success. Mr. mares in the next three years, as “This may eventually happen,” reports during the Irish Agricultural apartments. All of this was planned Zhi Jie Horse Industry Investment Zhang’s understanding is that both well as the acquisition of stallions explains Zhang, “but, I also expect Minister’s visit to Tianjin suggested to be in a comparative backwater Co Ltd, is a joint venture between Coolmore and TAK will invest over the same period. The ‘Irish there will be Irish investment.” As the project was already underway. belt of Tianjin. Horse City also International Equine Group and in the project, with his group Examiner’ newspaper reported that, Zhang understood it, the Ireland- However, the site in the industrial promised to “hold international and Tianjin Farm Group. The joint investing 30%. Additionally, he’s “the Tianjin Horse City will require based Coolmore would sell hinterlands of Tianjin remains domestic professional horse races, venture was set to develop the surprised international media between 600 and 800 racehorses in horses to them while the business a large leveled field adjacent promote and impart equine culture Tianjin Horse City project. reports haven’t included this 2013, and Irish breeders are hoping delegation was here, “but the Farm to several industrial projects and knowledge to youths, provide fact. Press reports on the Irish for some of that market. … Irish Group contacted TAK first, and under construction. Aside from tourism services for the public, and Speaking exclusively to Business Agricultural delegation’s visit to expertise will be used to build up TAK looked for other investors landscapers planting trees along protect the wellbeing and interests Tianjin, Zhang says he is very China suggested a Coolmore-led TECC to rival established centres … they brought several European the boundary next to a public road, of equines.” keen to have Ireland’s Coolmore horse breeding programme will such as Kentucky, or Deauville in companies’ representatives to no construction has begun. In the involved because of its international involve importing over 100 Irish France.” Tianjin, but no one contacted us at

30 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 31 Feature Story Feature Story

China needs is not one project, reported USD 100 million, the track the announcements two years ago. activities, makes the club a viable rather several coordinated, projects is currently idle, and much of the It doesn't take two years to build proposition, even though we talked across the country. However, facility mothballed, though horse- anything in this part of the world, in the club’s eerily empty five-star without legalisation of gambling, breeding continues at the stables. where Rome would have been done hotel. This enormous luxury club horse racing is not sustainable in and dusted by lunchtime, let alone has 200 horses, but after two years, China. “Someday it will open up, Aitken argues that any Tianjin in a day.” only 200 of 2,000 membership spots but there’s no timeline. No one project will have to figure out have been taken. really knows when.” how to be commercially viable. Noticeably, Tianjin already has a “Racing anywhere, with the large, underused equestrian facility. Snodgrass puts the construction of possible exception of Dubai, needs Patrick Lau, Senior Manager at the Visit us online: existing racetracks, most noticeably a commercial basis to exist, and Tianjin Goldin Metropolitan Polo btianjin.cn/120706 in Wuhan, down to a “risk-reward without betting, that simply can't Club says, “extremely wealthy” concept,” on the Chinese side. happen. Until China approves locals’ desire for luxury lifestyles, “There’s an idea it [horse racing gambling on horse racing on the including polo and equestrian with gambling] will open up. People mainland, which is not on any Masterplan: the proposed Tianjin Equine City have built massive tracks. There radar yet, there is no commercial are many already. They’re gearing imperative to make these things the Tianjin Farm Group after that. continues to ban gambling. Hence, up so that when it does open up, happen the right way, and there So actually, we are also thinking that there’s no revenue model to support they’re not left in the dust. There must be doubts about the we could talk to foreign investors a racing industry. Beijing-based are people importing horses, but it’s backers of some of directly about the cooperation and David Snodgrass, General Manager definitely not profitable. If they win these projects even the amount of the investment.” for East Asia operations at Alltech, those, they’ll make money. It won’t being capable of that.” which sponsored the World be a big industry until that key is Construction has yet to commence Equestrian Games 2011, and sells turned on wagering.” Aitken points out on anything at the site, and it equestrian feed products in China, how, “the real estate appears unlikely that 600 racehorses says horse racing is not profitable Corporate sponsorship of racing development side of will arrive in 2013. TAK is in in China and won’t be without will remain a less lucrative norm things looked like charge of the design of this project parimutuel betting being allowed. in China’s limited racing scene in a real possibility,” as they have extensive experience “That will have to be a political the absence of on-site gambling. when the Tianjin in designing projects such as the decision if and when it happens,” Sponsorships, CNY 10,000 would be equine mega- Horse City. As for a construction says Snodgrass. a large purse, for existing races are project was first contractor, Zhang says his firm being put up by local government announced. Real will put the project out to tender. Having observed racing in or corporations. Likewise, barrel estate has been “However, all this depends on the various parts of China with racing, a US equestrian discipline integral to the partner who holds more shares in local governments putting up introduced to China, has seen prize horseracing this project.” prize money, Snodgrass believes money of CNY 20,000 to CNY scene in development of China’s equestrian 30,000 per event. Dubai, whose Zhang, who currently farms scene won’t mirror anything seen emir, Sheikh 2,000 donkeys at a large feed lot in Western countries. “China Contacted for comment on Mohammed, “even adjacent to the Horse City site, does things top down, has to the Tianjin project, editors at sent a couple of stallions to China says the project has all the required be government supported, and Horsemanship Magazine, which to stand during 2012, though not certification from the Tianjin there has to be capital with that claims to be the only official print anything he might miss.” government to start construction, government support.” Given a media authorised by the CEA “but since TAK never brought any culture of equestrian sport doesn’t (Chinese Equestrian Association), Government credit tightening, investor as promised, construction exist, “successful projects are were unable to comment on the since 2011, has ensured the cooling funds are not in place yet and we large-scale, but more like a Disney Tianjin project. of China’s real estate market. Aitken are not sure when we should start production, getting Chinese used points out how in the original construction.” to being around horses and with Meanwhile, writing on the project, plan, “all sorts of facilities were aspirations to build on that.” Racing Correspondent at the South already supposed to be opened in The commercial viability of the China Morning Post, Alan Aitken, Tianjin by 2012, and we can't find project may also be in question. Snodgrass thinks the Tianjin points out how public racing at the anything further on them since Horse industry figures in China, project is one of several being Beijing Jockey Club was forced to spoken to for this article, point planned in China, “there are a lot of close in 2005 because of the ban out that there’s no racing industry competing forces, a lot building up on gambling. Set up by Hong Kong in China because the government infrastructure for racing,” but what businessman Cheng Yun-pung for a

32 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 33 Legal Assistance Legal Assistance

1. CNY Settlement in Cross-border Trade According to the 2009 Measures, only onshore enterprises recommended by the provincial level People’s Recent Legal Developments in On 8 April, 2009, the Chinese government opened the Government, within Onshore Pilot Areas, may conduct gate to CNY settlement in cross-border trade, allowing a CNY settlement in cross-border trade transactions. small number of selected enterprises in Shanghai and four CNY Internationalization for cities in Guangdong Province (Guangzhou, Shenzhen, Upon the First Expansion, all onshore enterprises Zhuhai and Dongguan) (Onshore Pilot Areas) to trade within Onshore Pilot Areas, with import and export with offshore enterprises in Hong Kong, Macau, and qualifications, have been allowed to conduct CNY Cross-border Trade and Investment Transactions member states of the Association of Southeast Asian settlement for import trading. In addition, such Nations (ASEAN) (Offshore Pilot Areas) in CNY instead enterprises have also been allowed to conduct CNY of foreign currencies. On 1 July, 2009, settlement in cross-border service a detailed regulation, Measures for transactions, and other transactions, the Administration of Pilot RMB under current account items. Settlement in Cross-border Trade, the Chinese was jointly issued by People’s Bank of government has However, for CNY settlement in China (PBOC), Ministry of Finance export trade, the mechanism for (MOF), Ministry of Commerce been making selection of Pilot Enterprises, for such (MOFCOM), General Administration efforts to realise the participation, was maintained until 3 of Customs (GAC), State February, 2012. According to Circular Manuel Torres internationalisation Administration of Taxation (SAT), on Relevant Issues Concerning the and the China Banking Regulatory of CNY through Administration on the Enterprises Commission (CBRC). On 3 July, comprehensive and with RMB Settlement in Export 2009, PBOC further issued Detailed Trade, all onshore enterprises, with Rules for the Implementation of the profound reform on a import and export qualifications, Measures for Administration of Pilot gradual basis would be allowed to conduct RMB Settlement in Cross-border CNY settlement for export trades. Trade. Until then, the basic legal Nevertheless, the six authorities framework for CNY settlement in cross-border trade had required provinicial level People’s Governments to been established by the aforesaid measures. submit their respective list of enterprises which shall be monitored for CNY settlement in export trade, Jessica Cao After the issuance of the 2009 Measures, CNY settlement considering noncompliance of such enterprises during by Manuel Torres (Parter) in cross-border trade has been developing continuously, the last two years in terms of customs, finance, and and Jessica Cao (Associate) and in order to promote such transactions, certain taxes.. After joint examinations by the six authorities, all of Garrigues Shanghai restrictions have been relaxed by the Chinese government: onshore enterprises nationwide, with import and export qualifications, could conduct CNY settlement in export • Expansion of Onshore and Offshore Pilot Areas trade.

The Onshore and Offshore Pilot Areas where CNY As per the news published on the official website of settlement in cross-border trade could be conducted PBOC on 12 June, 2012, a list with 9502 enterprises were expanded twice. under the monitoring for CNY settlement in export trading has been issued. Therefore, the limitation on The first expansion took place on 17 June, 2010 Pilot Enterprises participating in CNY settlement in according to Circular on Relevant Issues Concerning export trade has been removed. the Expansion of Pilot RMB Settlement in Cross- border Trade, under which, Offshore Pilot Areas were With all the above developments, currently, all onshore uffering from the depression of the CNY through comprehensive and profound expanded worldwide, and Onshore Pilot Areas included enterprises nationwide, with import and export world economy and the fluctuations reform on a gradual basis, which consists all the cities in Guangdong Province and an additional qualifications, could conduct CNY settlement in cross- of the exchange rates of certain major of, including without limitation, reforms 18 provinces, including Tianjin. border trade and service transactions or other transactions Sinternational currencies, both foreign and in cross-border trade settlement, foreign under the current account items, with offshore enterprises domestic investors have been calling for a direct investment, and outbound direct The second expansion occured on 1 August, 2011 according worldwide. more globalised Chinese Yuan (CNY), the investment. In this article, we would like to Circular on Expanding the Regions Supporting RMB official currency of China, in international to present readers with a quick look at Settlement in Cross-border Trade, under which, Onshore 2. Inbound Foreign Direct Investment in Offshore CNY trade and investment transactions. In recent Chinese legal developments in such Pilot Areas were expanded nationwide. response to such increasing demand, the CNY denominated cross-border trade and Inbound foreign direct investment in offshore CNY refers Chinese government has been making investment transactions. • Expansions of Scope of Pilot Enterprises to direct investment made in China by offshore investors efforts to realise the internationalisation of with legally obtained offshore CNY denomiated funds.

34 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 35 Legal Assistance Legal Assistance

of MOFCOM shall submit a review request to MOFCOM. Only after such review is satisfactory to The main features of ODI in onshore CNY as set forth by MOFCOM, the local counterpart of MOFCOM may the aforementioned measures include without limitation issue an approval letter and certificate of approval for the following: such FDI in CNY: • Outward Remittance of CNY Funds for ODI Investment of CNY funds of CNY 300 million or more; For remittance of upfront fees for ODI, or ODI without Investment in industries such as finance remitting upfront fees, the onshore investor shall apply guarantees, finance leasing, microfinance, or for an upfront fee remittance or ODI registration. Upon auctions, etc.; completion of such procedure, the onshore investor Investment in foreign-funded investment may go to the bank to conduct the remittance of CNY companies, foreign invested venture capital funds for ODI or remittance of upfront fees in CNY. enterprises, or foreign invested equity investment In principle, the accumulative upfront fees remitted by enterprises; or an Onshore Investor shall not exceed 15% of the total Investment in industries under the Chinese investment. If the upfront fees exceed the macroeconomic control of the state, e.g. cement, threshold of 15%, the onshore investor shall explain the iron and steel, electrolytic aluminum, and situation and submit relevant supporting documents to shipbuilding, etc. the local counterpart of SAFE.

3. Go Abroad Strategy: Outbound Direct Investment in • Inward Remittance of CNY Funds for ODI Onshore CNY The onshore investor may have its profits gained through Outbound direct investment (ODI) refers to the ODI returned to China in CNY. The bank may, after establishment of a new offshore non-financial enterprise, verifying the supporting documents such as the resolution or obtaining ownership, control, or business management on profit disposal issued by the board of directors of the Compared with CNY settlement in cross-border trade, of offshore CNY denominated bonds or stocks. rights, of an existing offshore non-financial enterprise offshore company, etc., enter such return of ODI profits in FDI in offshore CNY is relatively new, which is officially through new establishment or merger and acquisition by CNY into the account of the onshore investor. established by Circular on Relevant Issues on Regulating • Scope of Using Offshore CNY enterprises legally established in China. the Operational Procedures of Cross-border RMB Capital The onshore investor may also, for the CNY income Account Item Business issued by State Administration FDI in offshore CNY shall not be made directly or On 6 January, 2011, PBOC issued the Measures on the derived from capital reduction, liquidation, etc. of its of Foreign Exchange on 7 April, 2011, Circular on Issues indirectly in the investment of negotiable securities and Administration for Pilot RMB Settlement in Outbound Direct offshore company, go to the bank for a receipt of such Concerning the Cross-border Direct Investment in RMB financial derivatives with limited exceptions, nor be Investment, allowing onshore non-financial enterprises to income in CNY with relevant approval documents issued by MOFCOM on 12 October, 2011, and Measures used for making entrusted loans, within China. make ODI in onshore CNY. The onshore investor shall issued by authorities. on Administration of RMB Settlement in Foreign Direct obtain approval from the authorities of ODI, and when going Investment, issued by PBOC on 13 October ,2011. In addition, FDI in offshore CNY shall also comply with through approval formalities, the anticipated amount of ODI The issuances of the aforementioned regulations by the Chinese laws and regulations on FDI, e.g. Catalogue in onshore CNY shall be specified. Chinese government in recent years represent significant The main features of FDI in offshore CNY as set forth by of Industries for Guiding Foreign Investment, issued steps in the process of CNY internationalisation, and have the aforementioned regulations include without limitation, by MOFCOM and National Development and Reform offered both onshore enterprises and offshore investors an the following: Commission, relevant national security regulations, and import currency alternative for cross-border trade settlement, anti-monopoly regulations. inbound, and outbound investment. It is recommended • Legitimate Sources of Offshore CNY for those enterprises and investors who are interested in • Examination and Approval by MOFCOM or its CNY denominated transactions to pay close attention to the The offshore CNY used in FDI shall be legitimate, which Competent Counterpart further development of the Chinese legal framework of CNY includes: internationalisation and the implementation thereof. - Apart from the application documents required - CNY income obtained by offshore investors through for FDI in foreign exchange, offshore investors shall CNY settlement of cross-border trade; submit to MOFCOM or its competent counterpart Visit us online: the following documents, i.e. supporting documents btianjin.cn/120707 - CNY profits and CNY funds from share transfer, certifying the source of CNY funds, an explanation capital reduction, liquidation, and advance recovery of the use of CNY funds, and a completed standard Garrigues has over 13 years of experience in advising companies in their investments in China. The team of investments which are legally obtained by offshore governmental form on cross-border direct of experienced Western and Chinese professionals investors from China and remitted out of China; and investment in CNY. at Garrigues Shanghai provides legal advice to foreign companies on a wide range of issues such as incorporation of companies and negotiation of joint ventures, commercial contracting, M&A, tax, real - CNY funds legally obtained by offshore investors - If the FDI in offshore CNY falls under any of the estate, employment, intellectual property, arbitration and infrastructures, as well as outside China, including but not limited to, the issuance circumstances below, the provincial level counterpart to Chinese companies with investments abroad.

36 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 37 Real Estate Real Estate

income of Wuyishan is greater than companies are showing interest in the figure for Dujiangyan although operating resorts in such mountain Resort Development its arrivals are lower, most likely regions. The chart below shows the due to stronger spending power in current star-rated hotel market in the in Mountain Attraction Areas and Wuyishan. previously mentioned mountain areas: Mountain destinations are highly influenced by their natural environment, at World Heritage Sites in China scenery, climate, and so on, but also national and global social and external By Annie Wang, Head of CBRE Hotels, China economic factors. For instance, many of the buildings and heritage properties in Mount Qingcheng and Dujiangyan were damaged by the 5.12 scale earthquake in 2008. Additionally, countrywide travel restrictions applied during the Beijing Olympic Games and the more recent Annie Wang, Associate Director, global financial crisis have all restrained CBRE Hotels said “the performance travel demand to mountain areas. of mountain resorts is affected by several main factors. New high end, Mountain Attractions – Star Ratings Huangshan is the leader in terms of international brands will drive the tourism revenue generation over the Most existing mountain resorts are ADR’s to higher levels. For example, past four years, as both arrivals and of a relatively small scale, and are the opening of Howard Johnson at tourism income reached a new peak located in the related town or city Mount Qingcheng and The Pullman in 2010. The income from tourism centre, or near the main attractions in Zhangjiajie have already driven in Shangrao also increased rapidly themselves. Usually, the local ADR’s higher than those of resorts and outranked Zhangjiajie in 2010, government or an investor takes over in other mountain destinations. On while the income of Wuyishan also major responsibilities in developing the other hand, special characteristics increased sharply in 2010, an annual and managing the resorts. However, of a resort, such as hot springs or increase of 54%. Interestingly, tourist more and more international hotel forest reserves, can help the resorts

ecent research conducted adventure, and new experiences. Sanqing, (v) Mount Qingcheng, (vi) by CBRE Hotels has noted However, compared to urban hotels, Mount Wuyi and (vii) Mount Emei that the World Heritage insufficient hotel supply and generally Scenic Area. RCommittee has now included 41 low service and product quality at Tourist arrivals in the cities where China based properties on the mountain destinations has restrained the above mountains are located World Heritage List, 13 of which are some of the demand from mountain have increased rapidly from 2006 mountain associated destinations. lovers and other potential guests,” Mr. to 2010. Those cities with the most Further investigations have found Keith Humphreys, Executive Director attractive natural resources and more that great potential exists for of CBRE Hotels said. sophisticated tourism products, the development of mountain resorts, Mountain Attractions – Tourist Arrivals prefecture-level cities : Huangshan, with opportunities currently being Zhangjiajie, and Shangrao (where sought both by developers and hotel CBRE Hotels recently undertook in- Mount Sanqing is located), have operators. depth research of seven well-known enjoyed the most tourist arrivals mountain destinations in China: (i) “Traditionally, people visit mountain in absolute numbers, whereas Mount Huangshan, (ii) Wulingyuan attractions, mainly to enjoy the the number of arrivals in Mount Scenic and Historic Interest Area, (iii) scenery, but more and more, they Changbaishan increased the fastest at Mount Changbaishan, (iv) Mount are looking for better quality hotels, a rate of 26% annually.

38 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 39 Real Estate Real Estate differentiate themselves from other The changes of lifestyle, from Banyan Tree Resort in the old town of locations, a notable example being sightseeing to leisure experiences Lijiang, InterContinental Resort Jiuzhai Paradise in Jiuzhaigou, Howard Johnson Hongzhushan Hotel at Mount Emei.” Nowadays, experiencing a destination Hotel in Dujiangyan, near Mount lifestyle has been emphasised as being Opportunities Qingcheng, or Anantara Xishuangbanna more important than sightseeing. Resort & Spa in Yunnan Province. Such “As hotel supply in many first, or even For example, an international ‘first movers‘, are likely to enjoy larger second tier cities, in China, is close to tourism resort which is currently market shares and higher profitability; saturation, more investors are seeking under construction in Changbaishan the so called ‘first mover advantage’. He niche markets such as mountain reserve area will offer a world class ski added that, “of course, some projects destinations for development. Such resort, including pedestrian villages, have higher risks in terms of uncertainty resorts will usually enjoy a lower cost of internationally branded hotels, visitor of market trends, limited local market land and construction, compared with centres, theatres, shopping streets, evidence or knowledge, government urban hotels. The low seasons of urban recreation centres, spas, villas, and regulations. and so on, but generally the hotels are usually considered as the leisure facilities. peak season for resorts; for instance, an pioneers tend to do well.” “Seasonality is one of the major increasing number of Chinese travellers Accommodation product mix is concerns for mountain resort like to go to mountain resorts for skiing considered important as it helps to developments. It is important to in the winter, especially during the determine the best fit of the product, provide a variety of on-mountain Chinese New Year period,” continued and its supporting land uses to the activities and facilities for today’s Ms. Wang. natural landscape, and to further meet discerning mountain travellers. the varying needs of target markets. Keith Humphreys agreed, adding, Activities such as rafting, climbing, The real estate component, if any, may “Demand for exploring spectacular Bungee jumping, fishing, golfing, and include strata titled hotels, timeshares, scenery and experiencing diverse bike riding in summer and hot springs, and other vacation ownership options cultures within one’s home country skiing, or snowboarding in winter will (second homes). This model has been has increased dramatically. Chinese not only become the unique selling recognised and applied by many real travellers have shown strong points of a mountain resort, but also estate developers in order to secure interest in experiencing quality local will increase the profit margins in low early return on capital. For example, attractions, international standard seasons.” added Ms. Wang. accommodation, and service without a project developed by Greentown having to fly a number of hours to get Generally, comprehensive, integrated Properties, located in the Qiandao to their destination.” tourism facilities, standardised, Lake area contains a 250-room quality management, comfortable Sheraton Qiandao Lake Resort, and Large scale, better quality accommodation, a natural scenic two blocks of ‘hotel-apartments’. development in mountain resorts environment, and application of Keith added, “Mixed-use leisure been relatively low, it can take about 2 tourist arrivals and expenditure world famous Guilin Scenery, can be not only reflects increased demand environmentally friendly practices developments in mountain areas to 2.5 years to achieve the investment are only a small proportion considered as some of the competitive from the market, but also shows the are factors which will all, going have the potential to generate high return for some well known, compared with the numbers of travel options to China mountain increasing confidence of international forward, reinforce a mountain resort’s hotel management companies. The profits within short investment return internationally branded properties Chinese domestic travellers. In the destinations. performance. who have developed, or manage increasingly competitive international move towards hotels being operated periods. However, the requirements Resort development in mountain mixed use hotel/residential projects.” tourism market, raising regional or by international hotel brands is Types of Development for distinctive locations, good brands, areas, and tourism development quality products, and personalised even global awareness of an attraction expected to continue. From an Keith Humphreys also revealed that Challenges and Suggestions of World Heritage Sites in China services are much higher than with is critical at the initial stage of investor’s point of view, co-operation some resort developers have been is still in its preliminary stages. In other hotel types.” He continued, “in Our research shows that, for mountain resort development as it with international brands can both prepared for the risk of being the first order to blend with the local social some cases, where the land cost has mountain destinations, international will take a long period to establish ‘value add’ and induce demand. hotel to open at a location, such as and economic environment, and to the destination and expand market determine whether the proposed share. World renowned international mountain resort has the potential mountain destinations, such as to be economically viable, a market the Swiss Alps Jungfrau-Aletsch, study and financial feasibility analysis Yellowstone National Park in the is required to indicate the potential USA, the Canadian Rocky Mountain return on investment associated with Parks, the Great Blue Mountain the proposed resort(s). Area in Australia, or even domestic locations which are already well known by international tourists, such Visit us online: as Sanya in Hainan, the Old Town of Lijing, Dali in Yunnan, or the btianjin.cn/120708

40 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 41 Policy Explanation Policy Explanation

shall be no less than 30% of the total one year. Circular by PBC expressly any family who purchases a second price; while the down payment by provides that no mortgage loans shall residential property financed by bank any family who purchases a second be made available for any purchase of loan shall be no less than 60% of the Legal Updates on the residential property shall be no less a third residential property. total property price, which is a 10% than 50% of the total property price. increase from that of the requirement In the meantime, mortgage rates under Circular 10 2010. Circular that apply for a second residential The Chinese 1 2011 further provides that any property shall be 1.1 times that of the local family who has proof of local Real Estate Markets government, first property, i.e. the base rate of the tax returns for more than one year bank. concerned by the or payment of local social security dues for more than one year, and On 29 September, 2010 the People’s steep run-up in who already owns one property can Bank of China and the China Banking only purchase one more property. Regulatory Commission issued prices and residents' Moreover, any local family who the Circular on Issues Concerning frustration with the already owns two properties, or Improving Differentiated Housing hefty cost of housing, any non-local family who owns one Loan Policies (“Circular by PBC”) property and cannot supply proof which further tightened mortgage started to take actions of local tax returns for more than policies across the board for all banks in 2010 to rein in one year or payment of local social by requiring that down payments for Simon Bai speculation. security dues for more than one Winners Law Firm the first residential property shall be year, are prohibited from purchasing more than 30% of the purchase price, additional properties. regardless of the size of the property. The State Council again on 26 January, In particular, the Circular by PBC 2011 issued the Circular on Issues forbids any bank loans to be granted Regarding the Further Regulation Restrictive Measures on Real to any non-local buyers who fail to and Control of the Real Estate Market produce local tax returns for more (“Circular No.1 2011”) which further Estate Developers than one year or payment of local restricts buying qualifications by On 7 January, 2010, the State Council social security dues for more than requiring that the down payment by published the “Circular on Promoting

rior to 2010, the real estate market in Restrictive Measures on the Buyers China had experienced incredible, red-hot growth. Wary of worsening The government has, since April 2010, Pinflation and with few other investments implemented a series of measures to cool options, Chinese had been pouring their down the overheated residential property money into housing over the last decade. The market and curb speculation. Some of the key Chinese government, concerned by the steep measures are designed to restrict purchases. run-up in prices and residents’ frustration According to the Circular on Firmly with the hefty cost of housing, started to take Restraining Housing Prices from Too Rapid actions in 2010 to rein in speculation. Market Rising in Certain Cities (“Circular 10 2010”) correction programs with various tightening issued by the State Council on 17 April, 2010, policies have been gathering pace ever since. a differentiated housing credit system was This essay reviews the government’s efforts adopted under which the down payment by to cool down the residential housing market any family, including the borrower, spouse, over the past two years and discusses the and under-aged children, who purchases a outlook for the future. residential property that has a floor space of more than 90 square metres with a loan,

42 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 43 Policy Explanation IPR

Stable and Healthy Development attributable to government” or investment in the construction and of the Real Estate Market”, which force majeure, the developers may operation of villas. Software Copyright Registration in China: indicates the government’s face an “idle surcharge” of “20% determination to crack down on of the land grant premium or land price gouging, land and property allocation cost” if the land has Outlook for the Real Estate Know Before you Go hoarding, spreading misleading remained idle for more than a year Market Regulation market information, and disrupting but less than 2 years. Further, the Despite all these stringent market order. government has the right to recover measures aimed at deflating the the land without compensation Moreover, The PRC Ministry of bubbles in the real estate market, if the land has remained idle for Land and Resources (the“MLR”) home prices in China have not more than 2 years. has recently released the revised exactly taken a nosedive. However, Rules on the Disposal of Idle they have steadily declined in Land which will come into Residential Real Estate Tax small increments over the last force on 1 July 2012 (the “2012 Pilot Scheme two years. There are good reasons Amendments”). Under the 2012 to believe that the market is Amendments, “idle land” is In January 2011, the municipalities simply correcting itself following defined as a plot of state-owned of Shanghai and Chongqing rolled excessive speculation, and the land designated for development out pilot schemes for imposing real estate market will not crash purposes, the land user of which real estate taxes on residential as witnessed in 2007 in the US. has failed to commence the properties owned by individuals. The current round of correction construction project within 1 year Although currently limited to in the property sector is driven by after the commencement date Shanghai and Chongqing, it is government policy rather than due of construction as set out in the expected that the programme will to developers’ deteriorating balance compensable land use contract, or be expanded to other cities which sheets, widespread default by the date of allotment decision, or will have their own discretion to home owners, or lack of interested within 1 year after the date of land draft local rules. buyers. Thus, it won’t lead to delivery if the commencement date systemic risk and a massive panic is not specified by such documents induced sell-off. or cannot be ascertained) There Measures Restricting Foreign Looking ahead to the rest of 2012 and are two circumstances under which Investors 2013, the future for the real-estate land plots will be deemed idle, market will be largely determined being the circumstances where On 4 November, 2010, the Ministry by policy changes, macroeconomic construction has been suspended of Housing and Urban-Rural factors, monetary policy, and for 1 year with less than 1/3 of Development issued Circular exchange-rate policy. the proposed area constructed, or 186, which underscored the rules less than 1/4 of the proposed total first introduced by Opinions Although, there is no indication capital invested. In the event that Governing the Market Access as to when China will eventually a land plot is found to be idle due and Administration of Foreign ease property restrictions, there to reasons other than “reasons Investment in Chinese Real Estate is an aura of hope that the market Market, issued in July 2006 will soon turnaround, particularly which includes (i) each foreign if property restrictions are eased individual may only purchase one further in light of the recent reduction residential property for self-use, of reserve interest rate. and (ii) each foreign branch office or representative office may only purchase non-residential property in the city where it is registered for Visit us online: its own office use. btianjin.cn/120709 It is noteworthy that the newly amended Catalogue for the W I N N E R S h a s n Europe, registering software as a copyright is a relatively uncommon practice, with Guidance of Foreign Investment been recognised consecutively as only few EU member states providing copyright registration. Instead, evidence to prove in Industry issued by Ministry of "Tianjin Firm of the Year" by two international legal authorship is usually sufficient to enforce IPR ownership. This is not, however, the case Commerce and coming into force journals: Asia Legal Business from 2008-2012, and by China Law & Practice from 2009-2011. Iin China, where copyright registration is highly recommended. This article discusses the in early 2012 prohibits foreign importance of registering software as a copyright in China, and describes the registration process in China.

44 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 45 IPR IPR

Who can register copyright in of the supplemental materials. • Exceptional deposition should be China? However, registration may be delayed considered and used if possible; Any business or individual can apply if registration fees are not paid within confidential areas of the source to register copyright, but applicants 10 days of receipt of the notice for code programme can be redacted. without a registered business in China payment. • The first 10 pages, preferably the will need to provide a copy of their first 30 pages of the source code, business license (both in their original should contain as little important language and translated into Chinese) information as possible. authorised by the Embassy of the • Apply for ‘sealing’ of the source P.R.C in their home country. In place code programme, documentation, of the business license, an individual or samples. Only the right holder is required to submit a copy of their and judicial departments are then passport and its Chinese translation. permitted to open the sealed Why register software in China? to rely on formally registered 1)Bibliographical details of the Copyright holders may apply directly material. China has a software copyright documentary evidence. Therefore, owner, including name and for copyright registration, or entrust registration system, which is not software registration effectively and address. an agent to apply on their behalf. Furthermore, to ensure efficient proof mandatory in order to enjoy legal substantially reduces the burden of 2)Copy of proof of identification Where an agent is used, the agent of ownership and infringement by a protection of rights, but is very ensuring proof of ownership when of owner, for example business must additionally submit his or third party, it is desirable to insert some useful in proving ownership if enforcing IP. registration certificate of a her identification documents and a specific identification, for example you ever need to enforce your company. Power of Attorney from the copyright name, trademark, or even slogan of IP. This is because in most cases, In short, one copyright registration 3)Details of the software holder. It is recommended that EU- How much does it cost? the owner into the source code. It is enforcement occurs at least 1-2 certificate can replace a large programme including: based applicants consult a Chinese The costs to register software as a preferred for such specific identification years after a software programme amount of weaker ownership • Date of establishment. legal firm to ensure translations of copyright in China are in the region of to appear in the first 10 to 30 pages of is finished, and consequently it evidence during litigation in China. • Operating environment, their documents are accurate. CNY 2,200 to 3,200 (about EUR 240 to the source code, and should be unique can be difficult for the plaintiff to Not registering your software may including details of hardware 345), including official fees, depending to each software programme, for collect evidence of authorship at save you money today, however you requirements and operating Time on the number of documents involved. example the name of the software, the that time. Additionally, in practice, risk incurring significantly greater system. Applications for copyright registration Exceptional deposition will cost an relevant version, and the programmer(s) such evidence is almost always costs in future. • Programming language used. are processed within 30 days after additional CNY 320 (about EUR 35) involved. China Copyright Law clearly challenged by the defendant, • IF the software is not developed the CPCC accepts the application, for each item. provides that where there is no evidence especially the date of establishment Where and how to register? by the owner: how the rights or if supplemental materials are to the contrary, the citizen, legal entity, and ownership of the programme. The Copyright Protection Centre to the software are derived, required, within 30 days of receipt Handy Tips or organisation whose name is shown In China, authorities, including of China is the official body for example by assignment It is always desirable to disclose on a work shall be deemed the author of the Chinese People’s Courts, responsible for software registration or inheritance, and related the source code of your software the work. have shown a strong tendency in China. documentary proof. as little as possible. The following The following is required for • Substance of the software, which should be considered in order to software registration: can be submitted in either the achieve this purpose: Visit us online: form of ordinary deposition btianjin.cn/120710 or exceptional deposition, as described below.

Take-Away Message Copyright registration of your software offers an easy way to prove your IP ownership in case there are any problems of IP infringement. If you do not register your software through the Chinese copyright Ordinary deposition b)First 10 pages of source code, plus any registration system, it may be very difficult to prove ownership when enforcing your IP. First and last 30 pages of: consecutive 50 pages of any other portion of the source code. 1)Source code. c)First and last 30 pages of target code, plus any 2)Specification/operation manual or entire consecutive 50 pages of any other portion of the documents if these have less than 60 pages each. source code.

Exceptional deposition (any one of the below) The above rules a) to c) are also applicable to the a)First and last 30 pages of source code with submitted specification/operation manual and it The China IPR SME Helpdesk is a European Commission funded project that provides free, practical, business advice confidential portions concealed, but the total should be noted that each page of the source code relating to China IPR to European SMEs. To learn about any aspect of intellectual property rights in China, visit our concealed portions not exceeding 50% of the must have at least 50 lines. online portal at www.china-iprhelpdesk.eu. For free expert advice on China IPR for your business, e-mail your questions submitted source code. to: [email protected]. You will receive a reply from one of the Helpdesk experts within seven working days. The China IPR SME Helpdesk is jointly implemented by DEVELOPMENT Solutions and the European Union Chamber of Commerce in China.

46 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 47 Marketing Marketing

different techniques: Search Engine that comes to your website from Search Engines in China Optimisation (SEO), which adjusts search engines. It is the process of and rewrites website content to improving the visibility of a website in Before going into more detail about Search Engine achieve a higher ranking in search a search engine’s ‘natural’ or ‘un-paid’ how to work with SEO, it is important engine results pages, and Pay-Per- search results. In general, the earlier to note that the search engine market Click (PPC), focusing on only paid in China is quite different from the components. They are completely rest of the world. In the rest of the different types of marketing. Let’s People within world, Google is the dominate player, Optimisation look at the differences. and therefore, is already mentioned By Heidi Skovhus communication several times in this article. However, The purpose of SEO is to appear as have the opportunity the situation is different in China. near to the top as possible in search Here is a list of the most popular results for keywords. The purpose of to increase the search engines in China: PPC is to instantly attract qualified level of relevance prospects to your website and convert significantly by using Baidu is by far the leading Chinese them. The end result of SEO is free search engine for websites, audio files, traffic for which the quality depends and leveraging the and images. Baidu was established in on your keywords and ranking. The internet. 2000. Google China is number two in end result of PPC is paid for traffic for the market and was founded in 2005. which you control the quality and the It is remarkable that Google China number of visitors that result. and more frequently a site appears has so far failed to take over the in the search results list, the more Chinese search engine market, and Search Engine Optimisation visitors it will receive from the search Baidu may be the only company in – The Definition engine’s users (those sites that appear the world that is still beating Google on page 1 of Google’s organic search in their niche. There is very limited So what is SEO? Search engine receive 36% of the clicks). SEO is not information available in English optimisation describes a diverse set advertising nor public relations, its about how to do search engine of activities that you can perform to main goal is to gain targeted visitors. optimisation on Baidu, which is a increase the amount of targeted traffic great challenge for SEO professionals

nyone who makes a living Search Engine Marketing increasing their visibility on search off communication knows engine result pages, e.g. Google, the importance of relevancy. Search Engine Marketing (SEM) is Yahoo, or Bing. This is done through AIf you are not relevant in your a form of internet marketing that optimisation and through advertising. messaging and your timing, then involves the promotion of websites by SEM consists of two completely you can waste lots of money on sophisticated advertising that is not worth anything. Even average advertising messages can do wonders, if they are delivered at the right time and place. People within communication have the opportunity to increase the level of relevance significantly by using and leveraging the internet. Search has changed the way people use the internet, and has made the likelihood of receiving something relevant much higher.

48 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 49 Marketing Marketing operating in China. Sogou is the third tools available on Google that are Multiple URLs can be a solution. information thinking that the most engines work, what people search for, SEO is becoming increasingly largest search engine in China, which useful for this. Try, for example, the Instead of stuffing all the keywords important information should be at the actual search terms or keywords important, and for many companies, can search text, images, music, and keyword tool in Google Adwords. into a homepage, optimising all the top. Typically, a search engine will typed into search engines, and which mandatory. However, SEO is in maps. It was launched in 2004. Sogou When top keywords are found, the URLs in the site for different only go down about 80% of the page. search engines are preferred by most companies not a stand- means ‘Search dog’ in Chinese. they analyse the results that search keywords can be a solution. It is their targeted audience. Optimising alone marketing tactic that can do engines are returning when you type important to achieve a good balance Furthermore, please note that the age a website may involve editing its everything. It has to be supported by SEO rules for the Chinese internet between content and form, and of each HTML page is also taken into content, HTML, and associated other marketing tactics, very often market are a bit different than remember not to let extra content account, so keep your information coding to both increase its relevance both online and offline. that of any other country due kill the design of the site. If the URL fresh. How quickly your page loads is for specific keywords, and to remove to various social, political, and address contains the keyword, then also considered when ranking. barriers to the indexing activities technological reasons. For example, Google gives it more weight. of search engines. Promoting a site Visit us online: Baidu is extremely sensitive to To sum up, as an Internet marketing to increase the number of links is btianjin.cn/120711 some information, so it totally Page rank is another important area strategy, SEO considers how search another SEO tactic. avoids mentioning adult content, in SEO. Page rank is a simple formula pornography, or forbidden Chinese to check relevancy and quality of a government keywords. Having any site. It is nothing but a vote that shows of those will not only affect the page how other sites look upon your site. the content is on, but also the entire If site A points a link to site B, then website. When targeting China, it’s that is a vote for site B. The more links important to have Chinese text, since you have the better. So, you have to not many Chinese people search lobby and work hard on getting more in English. These are just some of people to link to your website. There the more straightforward and non- are four main types of links: inbound technical differences to consider. in these keywords. Try to understand links, outbound links, reciprocal links this. Analyse how many times a and one-way links. Inbound links are How to Optimise a Website’s Search particular keyword appears in the links that originate from an external Engine Results title, the description, the URL, and website. Outbound links are links in the page content as such. Limit from your pages pointing to a page on Keywords are the most important your list of keywords to 15 or so. an external domain. Reciprocal links beginning for SEO. It is important to The more specific and focused the are when both your page and a page know which keywords are important keywords are, the more likely the on another site links to each other to optimise for. If you are a retailer search engines will be able to properly (the worst kind of link, since search of kitchen machines, it is important classify your page for searches. If you engines might suspect that a phone to know what consumers type into put the time and effort into choosing call took place and so it is rated lower). Google, Baidu etc. while searching the right keywords, you will be One-way links are when either site A for kitchen machines. There are many rewarded with a higher rank, as well links to site B, or site B links to site A, as more click-throughs because your but does not receive a reciprocal link keywords will be more relevant, and from the page it is linking to. more conversions, because you are attracting more qualified leads. Copywriting in general is very important when conducting SEO. The page title is one of the most Here are a few points: Text must important elements in SEO. First of be actual text to be readable by the all, ensure that the title of your page search engine, so remove or reduce is no more than 60 characters, since the use of flash (at least when strictly that is all that will be read by Google. considering SEO optimisation). When analysing the keywords is done, Reduce the use of dynamically built then understand how the content can pages (filled in via a database). be structured in the title, description, Keyword rich copy is good for both URL, and home page, in that order. search engines and customers to It is always relative, so do not forget help reinforce what was searched to ensure that you are higher in the for. Each page should have its own search results than your competitors, set of unique keywords to increase but of course without stuffing all your odds of being seen. Also, keep the keywords in such a way that the in mind that search engines will only content does not make any sense. go down so far on a page to find

50 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 51 IT IT

with an amazing opportunity responsive service to customers. Leveraging social media to gain new insights into their Social enterprises do this by using with Accenture customers. Many organisations trusted, secure social networking Creating Your already track basic contact technologies to connect employees Accenture helps organisations information on customers and directly to each other and to the harness the full power of the social prospects. But now, they can really best experts and information across enterprise. The key is getting social understand who their customers their business, anywhere in the media working in your business, Social Enterprise are and what they like. By creating world. by applying insights. Leveraging a customer social profile that key learnings from early adopters, incorporates additional information Accenture has identified five extracted from applications principles that drive social like LinkedIn, Facebook and media success: Twitter, a more complete picture of customers 1. Pick a strategy can be developed and before it picks a better prediction you—develop a can be created of robust social media what they want strategy that aligns and expect. This to the overall leads directly business strategy to competitive and is supported advantage in the by appropriate marketplace. metrics.

Three of the 2. You’re not on crucial levers that stage anymore; companies can pull Welcome into the to win market share crowd—transform are product innovation, marketing and sales, loud computing is here, Against this background, successful salesforce.com practices. distribution, and it’s now, and it’s delivering organisations are investing in cloud Accenture also helps companies building collaborative customer intimacy. In the customer-company enormous business computing to deliver measurable extract real business value from past, competing on customer Cbenefits to many companies business benefits. To become cloud social media, something that many and company-company intimacy has been costly and relationships. across the globe every day. Recent enabled, more and more businesses have struggled with to date. difficult, with few big winners. The developments in social media and across all sectors are choosing social communication revolution 3. It’s not just a new channel; it is mobile technology are converging to team with salesforce.com and Toward the social enterprise has changed this. Customers no 3. Build customer and product with cloud computing to create consulting firms such as Accenture. a catalyst of big change—use social longer go to corporate websites or social networks media to service and respond to new opportunities for growth Salesforce.com offers a suite of Salesforce.com and Accenture dial call-centers: they speak to each and business transformation. As platform and application services, customers in previously undreamt- recognise organisations that other. So businesses are racing to To help reap the fullest possible number of ways. a result, enterprise adopters of delivered on its real-time, multi- are taking advantage of the join and re-engage their customers benefits from the first two steps, cloud technologies are now moving tenant architecture. Companies convergence of social, mobile, and in these conversations. Social social enterprises reshape not only 4. The time for experimenting is beyond the sizable speed, cost, and are using these capabilities to cloud technologies to help develop enterprises will win by redefining the way they interact internally risk reduction benefits. transform how they collaborate and up; mobilise the masses—capitalise the “social enterprise.” These their customer interactions, and externally, but also the on social media’s pervasive impact communicate, both internally and organisations are fundamentally creating social and mobile products and services they offer. In a world where customers and externally, in an ever more social, on functions beyond the front changing how they collaborate experiences that transform brand The result is a business whose office, including R&D, HR and IT. employees have become social mobile, connected, and cloud- internally and interact with engagement. interactions and products are tuned and mobile, leading companies enabled world. customers. To revolutionise in to its employees and customers. 5. New rules for tools—create an are taking ever bolder steps. They customer relationships and drive 2. Create employee social This social enterprise vision is are rethinking customer intimacy Accenture brings the vision, integrated social media technology growth using salesforce.com, networks compelling. It delivers on the platform that enables you to and employee collaboration to skills and know-how to plan and organisations can take three key bottom line, powered by salesforce. define their path to a truly “social navigate this transformation, identify and aggregate in one place steps to become a social enterprise: Today’s organisations are looking to com and its continuous innovation, all interactions with customers as enterprise”, one that redefines including industry leading change improve the way their people work which helps drive and optimise all interactions and relationships not management skills, deep industry well as the online chatter of those 1. Develop a customer social profile together and collaborate, creating the components into a cohesive customers about the company. just in the Business-to-Consumer knowledge, and practical technology a more rewarding workplace, and transformational business (B2C) space, but also in the implementation experience from The explosive growth in social while empowering employees to capability. Business-to-Business (B2B) domain. one of the world’s largest and A cloud-enabled business reaps networks provides organisations provide a higher quality and more immediate and permanent business

52 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 53 IT IT benefits ranging from lower controls and manage risk. It’s enterprise, many will need to costs to higher speed, agility, equally important to factor in the focus on tactical implementations and scalability, all enabled by “people change” effort, which is as they start their journey. Some flexible access to applications and typically more demanding than the organisations have implemented processing power on a pay-per-use technology issues. salesforce.com to solve specific basis. Together, these advantages needs, while many others have add up to quicker and more cost- Designing a strategic adopted it as their core strategic effective ways to meet emerging blueprint and roadmap platform. Both approaches are valid business requirements, such as ever for different companies at different increasing workforce mobility and With salesforce.com, businesses stages of the journey. In each case, smarter, speedier decision-making. embark on the journey to become the key is to understand clearly They also enable the business to social enterprises. To complete how salesforce.com solutions will reach its full potential for growth, the transformation successfully, fit into the business and drive its including faster, cheaper, and leadership needs a clear vision, efficiency and growth. lower-risk expansion into new grounded in business strategy, of geographies, product areas and what the social enterprise will look A social enterprise strategy needs supply chain relationships. like, the goals it will achieve, and to clearly establish the key elements how it will deliver against them. of the business case for migrating The vision for the social enterprise to a social enterprise. These include is one of the key hallmarks of a For decades, Accenture has the value of improved operational cloud-enabled business, one that is been helping organisations in processes and collaboration; the better connected to customers and all industries plan and execute value of growth, including new citizens, better at attracting and technology strategies that support services and geographic expansion; retaining employees. How do you their strategic business objectives. the impacts on the organisation’s make the vision real? Early adopters of the cloud have operating model; and the roadmap gained significant and sustainable for implementation. Like any journey, this one begins competitive advantage, and with the creation of a blueprint Accenture has a proven approach The process starts with assisting showing the destination. It then for helping organisations use the client in crystallising its focuses on effective orchestration salesforce.com to its fullest. own unique strategy and vision, and governance across cloud enabling the creation of a blueprint roadmap. Accenture and salesforce. of the social enterprise model can Media Management Handbook: Get com help to kick-start the journey deliver. This feeds into the roadmap going: Listen - Engage – Optimise. services, both to unleash the While all companies should be for the new target operating by working with the client’s from its current state to the social These three steps align closely with speed and flexibility that the thinking about their longer- model and IT architecture. This leadership to pinpoint their unique enterprise it aspires to become. the social enterprise vision, and social enterprise creates, and term transformation into a social in turn is used to develop a clear simultaneously to enforce and executable implementation vision for the social enterprise, and support the journey to a cloud- then refine the vision through a In helping the client develop the enabled business. series of interviews and workshops. right cloud strategy and roadmap, The resulting user stories and Accenture follows a proven solutions are quickly prototyped to approach that mirrors the action Visit us online: show the company what the power plan recommended in its Social btianjin.cn/120712

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Accenture has conducted business in Greater China for more than 20 years. Today, it has more than 7,100 people working in Greater China, throughout offices in Beijing, Shanghai, Dalian, Chengdu, Guangzhou, Hong Kong and Taipei. With a proven track record, Accenture is focused on leveraging local best practices and successes, and is dedicated to delivering premium client value and results. Accenture helps clients define strategy, streamline business processes, integrate systems, promote innovation and enhance overall competitive advantage to ultimately attain high performance. For more information about Accenture, please visit its corporate homepage www.accenture.com and its Greater China homepage www.accenture.cn.

54 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 55 HR HR Social Media Penetrating Chinese Workplace But Causing Productivity Loss

ocial media is gaining a has become almost an entitlement. Results of the survey in China also social media rather than through media in the workplace is occurring issues relating to privacy, monitoring, firm foothold in China’s It’s something that is a fundamental show: traditional methods such as faster than any rules designed to and access to sensitive business workplaces, with more than part of their communications • Among the main workforce newspapers, online job boards, and manage it,” Mark said. “While many information.” Sthree-quarters of employees armoury, and they’re using it to generations, 83 percent of Gen Y (aged recruitment firms. employees are quick to see the approving of the personal use of make career decisions and to search 19-30) believe it is acceptable to use benefits, employers and managers are social media while at work, but for jobs,” said Mark Hall, General social media for personal use while “The reality is that the spread of social still grappling with a host of complex Visit us online: with others seeing it as disruptive Manager, Professional & Technical at work, compared with 78 percent of btianjin.cn/120713 to workplace harmony, according to Operations, Kelly Services China. Gen X (aged 31-48) and 64 percent of the latest survey results from global “Alongside the positives, there is Baby Boomers (aged 49-66). workforce solutions leader, Kelly nervousness about the pitfalls if the Services®. personal and professional worlds • More than half (58 percent) feel it is About Kelly Services of social media are allowed to acceptable to share opinions about More than a quarter (29 percent) say intermingle.” work with friends and colleagues Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on that mixing personal and professional on social media. a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides connections through social media The findings are part of the latest employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion. can cause problems in the workplace, survey results from the Kelly Global • Almost a quarter (22 percent) have Established in China since 2002, Kelly’s 8 Offices in Greater China provides specialist Professional and and 18 percent say social media Workforce Index (KGWI), an annual been told to stop using social media Technical recruitment, and Recruitment Process Outsourcing. has a negative impact on workplace survey conducted by Kelly Services. at work. Our strengths encompass mid-senior level recruitment across the following industries and practices: Industrial & Manufacturing, productivity. Nearly 170,000 people in 30 countries Banking & Finance, Consumer, Information Technology, Human Resources and Accounting. Visit us kellyservices.cn participated in the survey, including • 38 percent of respondents are more This article comes from Kelly Services China. “For many workers, social media almost 5,000 in China. inclined to search for jobs via

56 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 57 Chamber Report

Past Events Luncheon with Delegates from the US Embassy: Beijing 5 June – The Astor Hotel On 5 June, a special luncheon, with delegates from the U.S. Embassy in Beijing, was held for AmCham China, Tianjin, members over a 4-course lunch at The Astor Hotel in Tianjin. Delegates included Robert Wang, Deputy Chief of Mission, and Gregory S. D'Elia, Provincial Outreach Coordinator of the US Embassy. Robert Wang shared his view on recent China US relations and many other topics that members are very interested in. Past Events 2012 EU Family Day Upcoming Events: On 2 June, 2012, more than 50 members came together with their family and friends to enjoy a relaxing and pleasant AmCham China Tianjin’s Annual AmCham China, Monthly Tianjin AmCham China, Monthly Tianjin afternoon organised by the European Chamber Tianjin Chapter for this year’s EU Family Day. Besides the delicious US Independence Day Celebration Executive Breakfast Briefing Women’s Professional Committee 4:30 - 8:30 PM, Sunday, 1 July, 7:15 - 9:00 AM, Thursday, 19 July food and fresh German beer at the outdoor garden of Drei Kronen 1308 Brauhaus, participants also enjoyed an amazing (WPC) Executive Lunch - 18th floor courtyard of The St. Regis – The Westin Tianjin 12:00-2:00 PM, Thursday, 26 July boat tour along Haihe river while seeing the scenic beauty of both the remains of old Tianjin, as well as its new and Tianjin This event is a great opportunity to meet – Qing Wang Fu modern skyline! Gather your family, friends, and colleagues the members of our Executive Committee The WPC aims to reach out to working and and join AmCham China Tianjin for our and be involved in the Tianjin professional non-working women in Tianjin to make yearly Fourth of July celebration! This holiday community. The goal of this executive Tianjin a better place to work and live. means plenty of food, fun, and entertainment breakfast is to increase networking Through such regular get-togethers, we hope for one and all! opportunities and information sharing with to strengthen the business and friendship ties executives of various companies, all the while amongst ladies. enjoying a delicious breakfast at a great price!

Room 2918, 29F, The Exchange Tower 2,189 Nanjing Lu Heping District Tel: +86 22 2318 5075 Fax: +86 22 2318 5074 www.amchamchina.org

Event review: Seminar - Energy Management Systems (EnMs) and Green Building Solutions 能源管理系统及建筑节能解决方案 Tuesday, 5 June, 2012 In TEDA Eco Center, at the first Low-Carbon Economy Promotion Agency, working in the area of environmental protection and energy conservation in China, over 20 participants spent valuable time with Mr. Wenxuan Dou from TÜV SÜD concerning setting up EnMs and Mr. Zhidan Wang from Honeywell in the field of BEMs. Intensive competition in the global market and the risk of climate change has led to greater challenges for local enterprises, including the rising costs of energy, materials, production, and operation as well the need to practice corporate social responsibility. Identifying ways to improve energy efficiency, establish comprehensive energy management systems, and enhance corporate competitiveness and influence is critical for Chinese enterprises. Owners and tenants of non-domestic buildings are under mounting pressure to cut their energy usage and carbon emissions. They are faced with the prospect of higher utility prices and ever more stringent regulations, not to mention public and stakeholder demands that they show high standards of corporate social responsibility. The first priority for hard-pressed energy and facilities managers is nothing else then developing their building energy management system. The principal role of a BEM is to regulate and monitor heating, ventilation, and air conditioning, and often lighting too. A BEM can efficiently control as much as 84% of a building’s energy usage. By applying a range of control and monitoring routines, both simple and sophisticated, it is capable of operating building services in strict accordance with demand, thereby avoiding unnecessary use of energy. Visit of TiMEC and Tianjin Binhai New Area Planning & Exhibition Center

Room15A17, Suite 17, Magnetic Plaza, BinShui Xi Dao, Nankai District, Tianjin 300381. Tel: +86 22 2374 1122 Fax: +86 22 2374 1122 Email: [email protected] Website: www.europeanchamber.com.cn Room 1502, Global Center, No. 309 Nanjing Road, Nankai District, Tianjin 300073 Tel / Fax: +86 22 8787 9249

58 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 59 Past Events Chamber Report China Capital, Global Growth

Every spring, BenCham brings people together for an entertaining night of fine food and swinging music. This year, the gala took place on 26 May, at the Marriot Northeast in Beijing. Everyone went home a winner from our lucky draw, and our affiliated charities were pleased with the evening, raising both money and awareness for their organisations. We want to thank “The Phenomenon” Boogie Boy, the band, and N8N for creating a fantastic atmosphere and bringing everybody to the dance floor. We also want to give a big thank you to the guests and sponsors for making this great party happen!

1 2

hina Global Outbound of, “China Manufacturing, US and The discussed topics of the summit Investment Summit 2012 European Consumption”, to the new were "The Globalisation of Chinese was held on 15 June at Kerry model of, “China Investment, Global Enterprises", "New Banking Policies CHotel in Beijing. Approximately Consumption”. In 2011, China global for Outbound Investment and M&A", 400 distinguished guests from outbound investment and M&A’s "New Opportunities in Global Energy government and academia, top grews to USD 43 billion, a 12% growth and Mining", "New Thinking on 100 China SOEs (State Owned year over year, encompassing energy, Chinese Company Going Global”, and Enterprise), private companies, mining, agriculture, infrastructure, “How to Build a Global Brand". financial institutions, and investment financial services, auto, luxury An award ceremony was held during funds, as well as international brands, high-end manufacturing, the dinner where a series of awards investment banks, law firms, pharmaceuticals, medical, health were issued, Standard Bank receiving accounting firms, and other service care, real estate, and high-end the award of “Best Investment Bank”, providers, joined the summit. travel properties in 28 fields and Benelux Chamber of Commerce, Beijing Office – (mailbox No. 78) 1601 Zhongyu Plaza,A6 Gongtibei Road, Chaoyang District, Beijing; 100027 Merchant Bank getting “Best Offshore 52 countries. At the same time, the 北京市朝阳区工体北路甲6号, 中宇大厦1601, 78 号邮箱， 邮政编码: 100027 Mr. Li Tong, Secretary General of Bank”, King & Wood PRC Lawyers assets under management of China Tel: +86 (0)10 8523 6101/05 - Fax: +86 (0)10 8523 6305 China Enterprise Forum, welcomed winning “Best Law Firm”, Ernst & Investment Corp (CIC) reached USD Email: [email protected] - Website: www.bencham.org the attendees with an opening Young (China) won “Best Accounting 400 billion, and China's national speech. The theme of the summit Firm”, Hill+Knowlton Strategies foreign-exchange reserve grew to USD was, "China Capital, Global Growth", received “Best Public Communication 3.1 trillion, making China the world in light of the world’s economy Firm”, and Towers Watson was named No. 1 in foreign reserves. transitioning from the old model “Best Human Resource Company”. SingCham Tianjin Chapter Professional Ladies’ Networking Lunch SingCham Tianjin Chapter held the first Professional Ladies’ Networking Lunch at the well-known Qing Wang Fu on 8 June 2012. It was a good platform for ladies to get to know one another both in both business and social circles. Nearly 20 professional ladies from government agencies and industries as varied as consulting, hotels, legal firms, design, and real estate chatted whilst soaking in the sun and enjoying the specially prepared food. We warmly welcome you to join us! 3 4 5 6 7 1. Panel Discussion 2. Summit Attendees 3. Best Investment Bank - Standard Bank Address: Unit 2003, Level 20, The Exchange Tower 2, No. 189 Nanjing Road, Heping District, Tianjin 300051 China 4. Best Public Communication Firm - Hill+Knowlton Strategies 5. Best Law Firm - King & Wood PRC Lawyers Tel: +86 22 8319 5055 Fax: +86 22 8319 5056 6. Best Human Resource Company - Towers Watson 7. Best Accounting Firm - Ernst & Young (China) Email: [email protected] Website: www.singcham.com.cn Photo by Meng Yu

60 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 61 Past Events Art & Lesiure Book Review Renaissance Hotel’s "Get Out & Discover" FAT CHINA – How Expanding Waistlines are Changing A Nation Global Campaign Reviewed by Keith Crane

hile much has been wet markets in cities have been n June 7, 2012, Renaissance Hotels officially asked their hotel guests to “get out” written about China’s replaced by supermarkets, and of their hotel rooms…and discover. For one incredible day, 152 Renaissance economic development major food giants have managed to properties in 34 destinations around the world encouraged more than 30,000 Wand opening up over the past 30 plus change a nation of tea drinkers into Oof their hotel guests to leave their rooms to get out and discover unforgettable moments years, little has been written about coffee drinkers, and create a huge at the hotel through unexpected onsite activities and fascinating local experiences. one of the alarming side effects.It’s dairy industry in a previously lactose The global “Get Out & Discover” initiative was created to bring to life the brand’s core one that’s a must-read for employers, intolerant population. The one-child mission, as seen in the first-ever global advertising campaign, "Live Life to Discover." not just in Tianjin, but across the policy brings its own issues with In Tianjin, Renaissance hotel guests experienced local “Get Out & Discover” activities country, if they’re concerned about doting, increasingly wealthy parents that vibrantly reflected the abundant and rich culture Tianjin has to offer. In Renaissance their own bottom lines. It’s the weight and grandparents, allowing that one Sanya Resort and Spa, however, the spirit of the tropics was all over the hotel as a live of their Chinese employees that offspring to eat and drink to their fill. performance was held with cool cocktails served as a treat for hotel guests. Renaissance Tianjin should bother them. I remain at odds with them over Downtown Hotel Long-term British researchers, Shenzhen, a city a I lived in for Paul French and Matthew Crabbe, three years, which had more wet don’t mince words in their analysis markets built into its infrastructure Language: English of a startling, growing number of than where I live now in Beijing. Paperback: 250 pages overweight and obese people along However, the overall picture, and its Price: £16.99 + Shipping the eastern seaboard. As incomes consequences, they paint are at times have risen, tastes for western diets horrifying. Renaissance Tianjin TEDA have grown, and so have people’s Renaissance Tianjin Lakeview Hotel Convention Centre Hotel Renaissance Sanya Resort & Spa Take the levels of obesity among hope a better educated middle class waistlines. schoolchildren, which is already may wake up to the crisis, and change It’s a complicated picture, and the leading to surgery, with liposuction its lifestyle before it’s too late. authors are careful (as much, maybe becoming increasingly common. Interestingly, while reading the book Tianjin Kerry Centre “Tianjin Arcadia Court” for fear of litigation) to not just blame French and Crabbe look at what this at work, my Chinese colleagues fast food giants such as Mc Donald’s growing crisis means for the country looked at me accusingly, and even and KFC. Although, they do tell an and its healthcare system, as obesity asked “Why? Surely people in Europe Exhibition Centre Opens to Public interesting sub-story about how both leads to increasing levels of associated and the US are fatter?” “Yes,” I replied, have tried to win the stomachs and disorders: heart problems, diabetes, “but this book says you’re getting minds of the Chinese. hypertension, and strokes; a real fatter at twice the rate we did.” n 28 May, Tianjin Kerry Centre “Tianjin Arcadia Court” Exhibition Centre In detail, it’s how urbanisation has wake up call to act. That’s the lesson to learn. Opening Ceremony was officially held at its exhibition centre located at the grown, rural farming has slumped, junction of Jiefang Bei Lu and Baoding Dao, Heping District. Mr. Liu Dongshui, The authors offer no real solution, but FAT CHINA is published by Anthem Press. OVice Director of Tianjin Commission of Commerce, Mr. Khoon-tsen Kuok, General Manager of Tianjin Kerry Real Estate Development Co., Ltd., distinguished guests and If you want to purchase this book, please send an email to [email protected], we will deliver the book to your door. Tianjin’s mainstream Media attended the ceremony. Tianjin Arcadia Court covers an area of around 180,000 square meters. It comprises of three 200 meter high-rise buildings facing the Haihe River, and contains approximately 1,126 well appointed units. Surrounded by various living facilities as well as an excellent transportation network, Tianjin Arcadia Court is designed to meet the ever growing demands and requirements of modern, urban family life. QUOTATIONS OF THE MONTH You don't get in life what you want; you get in life what you are. ------Les Brown

Love takes off masks that we fear we cannot live without and know we cannot live within. ------James Baldwin

Sports do not build character. They reveal it. ------John Wooden What we call the secret of happiness is no more a secret than our willingness to choose life. ------Leo Buscaglia

62 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 63 Calendar Special Days: Calendar 1 July Anniversary Day of Hong Kong’s Reversion 7 July Xiǎo Shǔ (Slight Heat) 11 July World Population Day Include your event Dà Sh (Great Heat) JULY 2012 22 July ǔ email to [email protected] TIANJIN & BEIJING EVENTS

AmCham China Tianjin’s Annual BBC National Orchestra Editor’s China (Beijing) International AmCham China, Tianjin Monthly pick US Independence Day Celebration of Wales Concert Exhibition on Furniture Home Executive Breakfast Briefing Courtyard at the 18F of the St. Regis Tianjin BBC威尔士国家交响乐团 Fashion & Decoration The Westin Tianjin Hotel 01 天津瑞吉金融街酒店18层空中花园 06 音乐会 12 中国（北京）国际时尚家居装饰展览会 19 天津威斯汀酒店 SUN 16:30-20:30 FRI Tianjin Grand Theatre THU New China International Exhibition Center, THU 07:15-09:00 星期日 Member adults: CNY 200 星期五 天津大剧院 星期四 Tianzhu Airport Industrial Zone, 星期四 Cardholding members: CNY 60 Non Member adults: CNY 350 19:30 Shunyi District, Beijing Employee of member companies: CNY 100 Children between 4 -12: CNY 100 180 / 280 / 480 中国国际展览馆新馆 Non-members: CNY 150 Children under 4: Free 680 / 880 / 1080 (顺义区天竺空港城商务区) [email protected] [email protected] 12-14 July

The International Symposium Editor’s pick String Quartet Concert on Society, Technology, Editor’s Education and Politics Beijing International pick 心灵随想——弦乐四重奏音乐会 Packaging Fair Western Shore Art Gallery 25 社会、科技、教育、政治国际研讨会 WED 北京国际包装博览会 西岸艺术馆 The Presidential Beijing, 07 星期三 03 New China International Exhibition Center, SAT 20:00 No.9 Fuchengmenwai Road, Xicheng District TUE Tianzhu Airport Industrial Zone, 星期六 100 北京国宾酒店(西城区阜城门外大街9号) 星期二 Shunyi District, Beijing +86 22 2326 3505 Beijing International Jewellery Fair www.isstep.org 中国国际展览馆新馆 [email protected] 国际珠宝展 (顺义区天竺空港城商务区) 25-28 July China World Trade Center, 09:30-16:30 No.1 JianGuoMenWai Avenue, Beijing 3-6 July Construmat China 13 国贸中心(建国门外大街 号) FRI 1 中国国际精品建筑装饰博览会 星期五 09:30-17:00 AmCham China, Tianjin Monthly China National Convention Center, No.7 13-16 July Women’s Professional Committee 11 Tianchen East Road, Chaoyang District, Executive Lunch WED Beijing 庆王府 国家会议中心(朝阳区天辰东路7号) 26 Qing Wang Fu 星期三 THU +43 93 2332 000 12:00-14:00 星期四 [email protected] 11-13 July International Mobile Phone Industry Exhibition & Forum 国际手机产业展览会暨首届中国数字信息应用大会 Editor’s Binhai International Convention & Exhibition Centre Concert by Chinese 滨海国际会展中心 pick Guqin Masters 26-27 July 琴汇——中国古琴大师雅集 Sino-US Women’s Volleyball Editor’s 12 Tianjin Grand Theatre Ukraine Children Ballet Drama Competition pick THU 天津大剧院 - Cinderella The Butterfuly Lovers: Sheng Editor’s pick 2012“渤海银行杯” 星期四 19:30 浪漫童话盛典 Zhongguo and Seta Hiroko 05 中美超级女排对抗赛 50 / 80 / 120 / 180 / 280 / 380 14 乌克兰少儿芭蕾舞舞团芭蕾舞剧《灰姑娘》 Concert THU Tianjin People’s Stadium SAT Beijing Poly Theatre 保利剧院 27 梁祝——盛中国濑田裕子 星期四 天津人民体育馆 星期四 50-500 FRI 钢琴小提琴名曲音乐会 15:30, 19:30 400-610-3721 星期五 Tianjin Grand Theatre 50 / 80 天津大剧院 5-7 July 19:30 Shoes From Italy 50 / 80 / 120 / 180 北京千禧大酒店 280 / 380 Taiwan Trade Fair 台湾名品展 Grand Millenium Hotel 10:00-18:00 Tianjin Meijiang Convention Centre 天津梅江会展中心 First Winoly Cup - Manchester City VS. Arsenal 16 16-17 July +86 22 8838 3311 TICC Coffee Mornings!咖啡时光 MON 首届圣殿杯英超足球挑战赛(曼城VS阿森纳) 5-8 July 星期一 The National Stadium Costa Coffee, Magnetic Plaza (opposite McDonalds) 国家体育场(鸟巢) 南开区时代奥城 Costa Coffee 20:00 10:00 380-2012 [email protected]

64 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 65 Business Chinese Lesson Business Chinese Lesson

66 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 67 TEL: +86 22 25760956 TEL: +862225760956 Transportation Transportation

for more, contact [email protected] Selected INTERNATIONAL FLIGHTS (1=Mon, 2=Tue, 3=Wed, 4=Thu, 5=Fri, 6=Sat, 7=Sun) From Tianjin To Tianjin From Beijing To Beijing DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days 11:20 14:00 KE806 09:20 10:10 KE805 Istanbul 23:55 05:25 TK21 1234567 Istanbul 00:35 14:00 TK20 1234567 Seoul* 1234567 Seoul* 1234567 15:20 18:05 KE864 13:20 14:10 KE863 * Flights from Beijing to Istanbul, from Istanbul to Beijing provided by Turkish Airlines. The summer extra flights KE863/KE864 are operated between May 28 - Oct 27,2012. Schedules are subject to government approval and may be changed without prior notice. From Beijing To Beijing DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days 11:50 15:10 KE2852 1234567 9:30 10:30 KE2851 1234567 TIANJIN-BEIJING AIRPORT Shuttle Bus TEDA-BEIJING AIRPORT Shuttle Bus 13:20 16:20 KE856 1,3,5,7 11:05 12:10 KE855 1,3,5,7 Seoul* Seoul* ¥83 one way ¥90 one way 21:15 00:10+1 KE854 1234567 19:00 20:05 KE853 1234567 Tianjin - Beijing Airport Terminals 2/3 TEDA - Beijing Airport Terminals 2/3 04:00-18:00, runs every hour. Tian Huan Distance Bus Passenger Station 06:45, 08:45, 14:45, 17:15. 1st Avenue, TEDA. From Seoul To Seoul The junction of Hongqi Lu and Anshan Xi Dao. Tel: +86 2305 0530 Tel: +86 22 6620 5188 DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days Beijing Airport Terminals 2/3 - Tianjin Beijing Airport Terminals 2/3 - TEDA 11:10 08:50 KE001 1234567 11:05 19:25+1 KE002 1234567 07:00, 08:00, 09:00, 10:00 then every 30 minutes until 23:00. Exit on the 1st floor 10:30, 13:00, 18:30, 20:30. Exit on the 1st floor at Gate 15 /Terminal 2 and 15:15 10:25 KE017 1234567 12:45 17:50+1 KE018 1234567 at Gate 15 / Terminal 2 and Gate 1 / Terminal 3. Tel: +86 10 6455 8718 Gate 1 / Terminal 3. Tel: +86 10 6455 8718 Los Angeles Los Angeles 20:00 14:45 KE011 1234567 23:30 04:20+2 KE012 1234567 21:35 16:35 KE061 1.3.5.. 23:50 04:50+2 KE062 .2.4.6. Las Vegas 20:50 16:00 KE005 1.3.5.. Las Vegas 23:00 04:15+2 KE006 1.3.5.. BULLET (C) TRAIN San Francisco 17:05 11:20 KE023 1234567 San Francisco 13:20 17:50+1 KE024 1234567 Beijing-Shanghai High-Speed Railway TJ ~ BJS (¥55 - ¥66) BJS ~ TJ (¥55 - ¥66) Seattle 18:15 12:05 KE019 .234.67 Seattle 14:05 17:35+1 KE020 .234.67 Train Tianjin Beijing Train Beijing Tianjin Origin Departure Time Destination Duration Price Dallas 11:00 09:30 KE031 .234.67 Dallas 12:10 16:30+1 KE032 .234.67 C2002 06:25 06:55 C2001 06:35 07:05 Tianjin Tianjin Shanghai First Second C2094 22:45 23:15 C2093 23:00 23:30 Tianjin Sorth West Sleeper Chicago 11:40 10:25 KE037 1234567 Chicago 12:45 16:25+1 KE038 1234567 Hongqiao Class Class Station Station 10:30 11:00 KE035 1234567 00:30 04:05+1 KE034 ..3.5.7 TG ~ BJS (¥66 - ¥80) BJS ~ TG (¥66 - ¥80) Atlanta Atlanta G315 09:17 17:16 07.59 600 370 1065 Train Tanggu Beijing Train Beijing Tanggu 18:00 18:40 KE033 .2.4.6. 13:15 16:55+1 KE036 1234567 D325 07:10 15:15 08.05 375 C2274 12:40 13:10 C2273 10:45 11:15 Washington , D.C. 10:30 11:10 KE093 1234567 Washington , D.C. 13:35 16:55+1 KE094 1234567 D365 08:44 15:42 06.58 855 370 799 C2280 20:25 20:55 C2279 18:50 19:20 10:20 11:35 KE081 1234567 00:50 04:00+1 KE086 1234567 G33 10:09 15:08 04.59 870 510 New York New York G41 07:05 12:12 05.07 855 515 19:30 20:40 KE085 1234567 14:00 17:20+1 KE082 1234567 Wuqing ~ BJS (¥39 - ¥46) BJS ~ Wuqing (¥39 - ¥46) Train Wuqing Beijing Train Beijing Wuqing G129 12:45 17:33 04.48 855 510 19:00 08:20 KE051 1234567 10:15 15:40+1 KE052 1234567 G145 15:12 20:06 04.54 870 510 Honolulu Honolulu C2202 06:53 07:18 C2201 06:45 07:07 21:00 10:05 KE053 1234567 12:10 17:30+1 KE054 1234567 C2232 20:43 21:08 C2231 21:15 21:37 G211 12:11 17:25 05.14 870 515 G21 14:26 19:28 05.02 515 Vancouver 18:50 12:35 KE071 1234567 Vancouver 14:35 17:50+1 KE072 123.56. Toronto 10:00 10:15 KE073 .23.567 Toronto 12:15 14:45+1 KE074 .23.567 Sao Paulo 21:35 10:45 KE061 1.3.5.. Sao Paulo 12:45 04:50+2 KE062 .2.4.6.

* Flights from Beijing/Tianjin to Seoul to Beijing/Tianjin provided by Korean Air. Schedules are subject to government approval and may be changed without prior notice.

Introducing our new flight schedule to Nairobi Kenya Changes to Korean Air Korean Air will launch 3 non-stop flight services Baggage Regulations per week from Incheon, Korea to Nairobi, Kenya In regard to free baggage allowance and baggage fee, on June 21. Korean Air will become the first air Korean Air currently applies the Weight System which carrier in Northeast Asia regulates the total weight of baggage and the Piece to extend flight services to System which regulates the number of pieces differently for Nairobi. Fly to Nairobi with each route. However, Korean Air will only apply the Piece Korean Air and enjoy the grand African savanna, System for all routes starting on May 31, 2012 (based on the safari tour, and the date of issuance). indigenous people full of Changes to Korean Air baggage regulations are as follows: primitive energy. Free Baggage Allowance Introducing our new flight schedule to Gatwick (Domestic and Intl routes, excluding the Americas) London Current (Weightsystem- regulates Class Revised In addition to the daily flights the total weight of baggage) to Heathrow, London, Korean Air proudly introduces its (Piece system- regulates First 40kg new flight service to Gatwick, the number of pieces) London from Seoul 3 times per week starting on April 28, Prestige 30kg 3 Piece (32kg each) 2012. With our convenient schedule of 10 flights per week to London, paired with Economy 20kg 2 Piece (32kg each) unparalleled in-flight service, traveling will become even For more information, please refer to www.koreanair.com baggage information. more comfortable.

70 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 71 Lifestyle Recommendations / Tianjin Lifestyle Recommendations / Teda & Tanggu DINING DINING SERVICES

Yan Ting Chinese Restaurant Bars Education Catering Solutions Hyatt Regency Jing Jin City

2F, The St. Regis Tianjin, No. 158 A: China Bleu International Schools Resort & Spa TIANJIN Zhang Zizhong Lu, Heping District Promenade Restaurant A: 50F, Tangla Hotel Tianjin, No. 219 A: No. 8, Zhujiang Da Dao T: +86 22 5830 9999 A: 1F, The St. Regis Tianjin Nanjing Lu, Heping District Zhouliang Zhuang, Baodi District 宴庭中餐厅 Chinese No. 158, Zhang Zizhong Road T: +86 22 2321 5888 T: +86 22 5921 1234 和平区张自忠路158号瑞吉金融街 京津新城凯悦酒店 China Station Bistro Thonet Heping District 中国蓝酒吧 酒店2楼 No.55 Chongqing Road, 宝坻区周良庄珠江大道8号 A: 2F, Radisson Plaza Hotel Tianjin A: T: +86 22 5830 9959 南京路219号天津唐拉雅秀酒店50层 International School of Tianjin 河岸国际餐厅 No. 66, Xinkai Lu, Hedong District Heping District A: Weishan Lu, Jinnan District Flo Prestige +86 22 8713 5555 和平区张自忠路 号天津瑞吉金 T: +86 22 2457 8888 T: 158 JV’S Bar T: +86 22 2859 2001 A: No.37, Guangfu Road Japanese 融街酒店一层 国际学校天津分校 中国站 E: [email protected] A: 1F, Main Building, Sheraton Hotel Tianjin Italian Style Town, Hebei District 津南区津南微山路 河东区新开路66号天津天诚丽笙世 Benkay Japanese Dining W: qingwangfu.com Zi Jin Shan Lu, Hexi District T: +86 22 2662 6688 庭悦咖啡 福楼外宴策划 嘉酒店2层 A: 5F, Hotel Nikko Tianjin, No. 189 T: +86 22 2731 3388 ext. 1846 和平区重庆道55号庆王府院内 河北区意大利风情区光复道 号 Radisson Blu Plaza Hotel Tianjin Nanjing Lu, Heping District JV’S 酒吧 37 +86 22 8319 8888 ext. 3558 A: No. 66, Xinkai Lu, Hedong District Fortune Restaurant T: 河西区紫金山路天津喜来登大酒店 和平区南京路189号天津日航酒店5层 Riviera Restaurant T: +86 22 2457 8888 2F, Crowne Plaza Tianjin Binhai 主楼1层 A: 弁慶日本料理餐厅 A: 1F,The St. Regis Tianjin. Hotels & Apartments 天津天诚丽笙世嘉酒店 No. 55, Zhongxin Da Dao Brasserie Flo Tianjin No. 158, Zhang Zizhong Road 河东区新开路66号 Airport Industrial Park O’Hara’s Hotels A: No.37, Guangfu Road Heping District T: +86 22 5867 8888 ext. 2355 Kasumi A: 1F, The Astor Hotel Tianjin Italian Style Town, Hebei District T: +86 22 5830 9962 Tangla Hotel Tianjin 富淳中餐厅 A: 1F, Crowne Plaza Tianjin Binhai No. 33, Tai’er Zhuang Lu Tianjin International School T: +86 22 2662 6688 蔚蓝海法餐厅 A: No. 219, Nanjing Lu, Heping District 空港物流加工区中心大道55号 No. 55, Zhongxin Da Dao Heping District A: No.4-1, Sishui Dao, Hexi District 福楼 和平区张自忠路158号天津瑞吉金 T: +86 22 2321 5888 天津滨海圣光皇冠假日酒店2层 Airport Industrial Park T: +86 22 2331 1688 ext. 8919 +86 22 8371 0900 河北区意大利风情区光复道37号 融街酒店一层 T: 天津唐拉雅秀酒店 T: +86 22 5867 8888 ext. 2322 海维林 天津国际学校 Crowne Plaza Tianjin Binhai 霞日式料理 和平区南京路219号 Fountain Lounge 和平区台儿庄路33号天津利顺德 河西区泗水道4号增1号 A: No.55 Zhongxin Avenue Airport 空港物流加工区中心大道55号 1863 the Dining Room Spectrum All-Day Dining A: Hyatt Regency Jing Jin City 大饭店豪华精选酒店1层 Economic Area Tianjin 天津滨海圣光皇冠假日酒店1层 A: 1F, The Astor Hotel Tianjin A: 7F, Hotel Nikko Tianjin Resort & Spa T: +86 22 5867 8888 No. 33, Tai’er Zhuang Lu No. 189, Nanjing Lu, Heping District No. 8, Zhujiang Da Dao 天津滨海圣光皇冠假日酒店 Heping District Kushi Grill T: +86 22 8319 8888 ext. 3570 天津市空港经济区中心大道55号 Zhouliang Zhuang, Baodi District 彩西餐厅 A: 2F, Radisson Blu Plaza Hotel Tianjin T: +86 22 2331 1688 ext. 8918 The St. Regis Bar T: +86 22 5921 1234 至尊西餐厅 南京路 号天津日航酒店 层 碧泉茶园 No. 66, Xinkai Lu, Hedong District 1863 189 7 A: 1F, The St. Regis Tianjin. No. 158 和平区台儿庄路 号天津利顺德大 宝坻区周良庄珠江大道 号 T: +86 22 2457 8888 33 Zhang Zizhong Road, Heping District 8 饭店豪华精选酒店 层 GEMS World Academy Renaissance Tianjin Lakeview 京津新城凯悦酒店 串烧 1 +86 22 5830 9958 Wine T: Tianjin Eco City, China Hotel 河东区新开路66号天津天诚丽笙世 瑞吉酒吧 A: Unit 3-307, TEDA MSD Block A: No. 16, Binshui Dao, Hexi District 嘉酒店2层 Café@66 和平区张自忠路158号天津瑞吉金 C 79 1st Avenue, TEDA T: +86 22 5822 3388 A: 1F, Radisson Bul Plaza Hotel Tianjin 融街酒店一层 T: +86 22 6622 7888 万丽天津宾馆 Seitaro No. 66, Xinkai Lu, Hedong District 天津杰美司国际学校 河西区宾水道16号 Sheraton Hotel Tianjin T: +86 22 2457 8888 Holiday Inn Tianjin Riverside A: 开发区第一大街79号泰达MSD-C区 Zi Jin Shan Lu, Hexi District 咖啡66 Accounting A: Phoenix Shopping Mall 河东区新开路 号天津天诚丽笙世 3楼307室 T: +86 22 2731 0909 66 Haihe Dong Lu, Hebei District Qing Wang Fu 清太郎日本料理 嘉酒店1层 T: +86 22 2627 8888 A: No. 55, Chongqing Road 河西区紫金山路喜来登大酒店 天津海河假日酒店 Heping District 河北区海河东路凤凰商贸广场 Café Majestic T: +86 22 8713 5555 SóU A: 1F, The Astor Hotel Tianjin +86 22 5835 2555 A: 49F, Tangla Hotel Tianjin, No.219 No. 33, Tai’er Zhuang Lu [email protected] E: Nanjing Road, Heping District T: +86 22 2331 1688 ext. 8910 Tianjin Office: W: qingwangfu.com 凯旋咖啡厅 A: Unit 2901 - 104 Sheraton Tianjin Hotel 庆王府 T: +86 22 2321 5888 ext.5106 A: Zi Jin Shan Lu, Hexi District 思创 和平区台儿庄路33号天津利顺德大 The Exchange Tower 2 Wellington College 和平区重庆道55号 饭店豪华精选酒店1层 No.189, Nanjing Lu International Tianjin T: +86 22 2731 3388 南京路219号天津唐拉雅秀酒店49楼 Hotel Nikko Tianjin 天津喜来登大酒店 Heping District A: No. 1, Yide Dao, Hongqiao District +86 22 2318 5056 A: No. 189, Nanjing Lu, Heping District 河西区紫金山路 Riverside Chinese Restaurant Café Venice T: T: +86 22 8758 7199 ext. 8001 F: +86 22 2318 5001 +86 22 8319 8888 A: 3F, Holiday Inn Tianjin Riverside Thai +86 187 2248 7836 T: A: 2F, Holiday Inn Tianjin Riverside Mobile: 天津日航酒店 Phoenix Shopping Mall E: [email protected] YY Beer House Phoenix Shopping Mall E: [email protected] 和平区南京路 号 East Haihe Road, Hebei District 天津市和平区南京路189号 189 (Behind International Building) East Haihe Road, Hebei District 津汇广场 2座29层2901-104室 W: wellington-tianjin.cn +86 22 2627 8888 ext. 2211 T: A: No. 3, Aomen Lu T: +86 22 2627 8888 ext. 2271 天津惠灵顿国际学校 海河轩中餐厅 Heping District 威尼斯咖啡厅 红桥区义德道1号 河北区海河东路凤凰商贸广场 河北区海河东路凤凰商贸广场 Beijing Office: T: +86 22 2339 9634 A: 6/F, Dongwai Diplomatic 天津海河假日酒店3楼 天津海河假日酒店2楼 粤园泰餐厅 Building Event Planning 和平区澳门路3号(国际大厦后侧) No. 23, Dongzhimenwai Dajie Shui An Glass House Beijing A: 1F, The Astor Hotel Tianjin Hyatt Regency Jing Jin City T: +86 10 8532 1720 No. 33, Tai’er Zhuang Lu Western Resort & Spa F: +86 10 85322746 Heping District A: No. 8, Zhujiang Da Dao E: [email protected] T: +86 22 2331 1688 ext. 8920 Zhouliang Zhuang, Baodi District 北京朝阳区东直门外大街23号， InterMediaChina is Tianjin’s 水岸中餐厅 T: +86 22 5921 1234 东外外交办公大楼602 和平区台儿庄路33号天津利顺德大 水晶厨房 premiere event planning company. We will pinpoint the features that 饭店豪华精选酒店1层 宝坻区周良庄珠江大道 号 8 Shanghai Office: can make your event a success and 京津新城凯悦酒店 A: Room 1501 & 1504, WanTai ensure that your target audience is Tao Li Chinese Restaurant International Building, Aulare reached through superb advertising A: 6F, Hotel Nikko Tianjin Pan Shan Grill & Wine No.480, North Urumqi Lu and promotion. A: Magnetic Plaza, Building A4 Jing An District No. 189, Nanjing Lu, Heping District A: 2F, Main Building Also arrange the following: 2-16, Binshui Xi Dao T: +86 21 6249 0055 T: +86 22 8319 8888 ext. 3561 Sheraton Hotel Tianjin • Budgeting Nankai District F: +86 21 6288 1636 桃李中餐厅 Zi Jin Shan Lu, Hexi District • Selecting and reserving the event site +86 187 2229 0691 E [email protected] 和平区南京路189号 T: : • Transportation and parking T: +86 22 2731 3388 ext.1820 上海市静安区乌鲁木齐北路480 天津日航酒店6层 E: [email protected] 盘山葡萄酒扒房 To set up an event with 艾伊莎贝西餐厅 号1501&1504 紫金山路天津喜来登大酒店主楼2层 InterMediaChina, please send 南开区宾水西道时代奥城A4座2-16号 e-mail to [email protected]

72 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 73 Lifestyle Recommendations / Tianjin Lifestyle Recommendations / Teda & Tanggu SERVICES HEALTH DINING HOTEL

Printing Servives Serviced Office Chinese BARS Wan Li Chinese Restaurant TIANJINPRINT is a 24-HOURS professional printing service A: 2F, Renaissance Tianjin TEDA provider. Provides the highest level Hotel & Convention Centre of service by employing the most No. 29, 2nd Avenue, TEDA Somerset International advanced equipment, superior Tianjin United Family Hospital T: +86 22 6621 8888 ext. 6750 Building Tianjin customer service, and excellent Regus Tianjin Center A: No.22, Tianxiao Yuan 万丽轩中餐厅 A: No, 75, Nanjing Lu quality control systems, to ensure A: 8F, Tianjin Centre, No.219 Tanjiang Dao, Hexi District 开发区第二大街29号天津万丽泰达 Sheraton Tianjin Binhai Hotel Heping District that customers receive the highest Nanjing Road, Heping District T: +86 22 5856 8500 (Reception) 酒店及会议中心2层 A: No. 50, 2nd Avenue, TEDA T: +86 22 2330 6666 quality products and services. T: 400 120 1205 24 Hour Emergency: T: +86 22 6528 8888 天津盛捷国际大厦服务公寓 www.regus.cn Happy Soho Live Music & Print, including design, prepress, W: +86 22 5856 8555 Yue Chinese Restaurant F: +86 22 6528 8899 和平区南京路75号 雷格斯天津中心 Dance BAR finishing, binding and inserting. ufh.com.cn 天津滨海喜来登酒店 和平区南京路219号天津中心8层 W: A: 2F, Sheraton Tianjin (Opposite of Central Hotel) For projects or inquiries, please 天津和睦家医院 Binhai Hotel 开发区第二大街50号 Somerset Olympic Tower Tianjin A: No. 16, Fortune Plaza, send e-mail 河西区潭江道天潇园 号 No. 50, 2nd Avenue, TEDA http://sheraton.com/tianjinbinhai A: No. 126, Chengdu Dao 22 Third Avenue, TEDA to [email protected] +86 6528 8888 Heping District T: T: +86 22 2532 2078 T: +86 22 2335 5888 ext. 6220/6222 欢乐苏荷酒吧 Gyms 采悦轩中餐厅 Spas 天津盛捷奥林匹克大厦服务公 Promotional Products 开发区第三大街财富星座 号 开发区第二大街50号 16 寓和平区成都道126号 Powerhouse Gym (中心酒店对面) Touch Spa PROMOTIANJIN is a traditional A: Binjiang Shopping Center, Kaifeng 天津滨海喜来登酒店2层 A: 2F, Renaissance Tianjin TEDA Somerset Youyi Tianjin promotional products agency Dao, Xiao Bai Lou (1902 Street) Hotel & Convention Centre serving major corporations and non- A: No. 35, Youyi Lu, Hexi District Hexi District Japanese No. 29, 2nd Avenue, TEDA T: +86 22 2810 7888 profit agencies since 1998. Based in The Executive Centre T: +86 22 2302 2008 T: +86 22 6570 9504 天津盛捷友谊服务公寓 Tianjin, it has been actively serving Asia-Pacific’s Premium Serviced 宝力豪健身俱乐部 Sake n Sushi Bar 开发区第二大街29号天津万丽泰达 Education 河西区友谊路35号 accounts in financial services, health Office Provider 河西区小白楼滨江购物中心 A: 11F, Holiday Inn Binhai Tianjin 酒店及会议中心 care, media, non-profit, advertising, A: 41F, Tianjin World Financial Center No. 86, 1st Avenue, TEDA cultural affairs and home and 2 Dagubei Road, Heping District T: +86 22 6628 3388 ext. 2730 Yue Spa industrial furnishings fields. Main Swimming Pools The St. Regis Tianjin Tianjin 寿司吧 15F, Holiday Inn Binhai Tianjin clients are organisations of all sizes A: No. 158, Zhangzizhong Road T: +86 22 5830 7888 开发区第一大街86号天津滨海假日 TEDA International School No. 86, 1st Avenue, TEDA A: throughout China and abroad. GLO Fitness & Health Club Heping district W: executivecentre.com 酒店11层 A: No. 72, 3rd Avenue, TEDA +86 22 6628 3388 For further details, please send Swimming Pool T: 天津德事商务中心 +86 22 6622 6158 开发区第一大街 号天津滨海假日 T: +86 22 5830 9999 e-mail to A: 6F, Hotel Nikko Tianjin, No. 189 T: 86 天津瑞吉金融街酒店 和平区大沽北路2号天津环球金融中 泰达国际学校 酒店15层 The Lakeview, Tianjin-Marriott E: [email protected] Nanjing Lu, Heping District Italian 和平区张自忠路158号 Executive Apartments 心津塔写字楼41层 T: +86 22 8319 8888 ext. 3290 开发区第三大街72号 焕 - 健康中心游泳池 A: No. 16, Binshui Dao, Hexi District Hospitals T: +86 22 5822 3322 Real Estate 和平区南京路189号天津日航酒店6层 天津万豪行政公寓 Travel Agencies 河西区宾水道16号 Sheraton Hotel Tianjin

Swimming Pool CBRE Tianjin A: 1F, Sheraton Hotel Tianjin The Astor Hotel Tianjin A: 42F, Units 12 & 13, Tianjin World ZiJin Shan Lu, Hexi District Tianjin’s travel agency specialising Bene Italian Kitchen A Luxury Collection Hotel Financial Centre Office Tower, No. T: +86 22 2731 3388 Tianjin TEDA Maple Leaf in tourism for foreigners A: 2F, Sheraton Tianjin Binhai Hotel Tianjin TEDA International SOS A: No. 33, Tai’er Zhuang Lu, 2 Dagubei Road, Heping District. 喜来登酒店游泳池 T: +86 159 2200 0555 No. 50, 2nd Avenue, TEDA International School Clinic Heping District T: +86 22 5832 0188 河西区紫金山路天津喜来登大酒店1层 E: [email protected] +86 6528 8888 ext. 6230/6232 A: No. 71, 3rd Avenue, TEDA A: 102-C2 MSD, No.79 T: +86 22 2331 1688 cbre.com.cn T: W: 班妮意大利餐厅 T: +86 22 6200 1920 1st Avenue, TEDA, Tianjin 天津利顺德大饭店豪华精选酒店 世邦魏理仕天津分公司 Swimming Pool at Radisson 天津泰达枫叶国际学校 开发区第二大街50号 T: +86 22 6537 7616 和平区台儿庄路33号 和平区大沽北路2号天津环球金融 开发区第三大街71号 Spas Plaza Hotel Tianjin 天津滨海喜来登酒店2层 国际SOS天津泰达诊所 中心津塔写字楼42层12-13单元 A: 4F, Radisson Plaza Hotel Tianjin 天津经济技术开发区第一大街 号 Green Bamboo Well Being 79 Apartment No. 66, Xinkai Lu, Hedong District 泰达MSD-C区2座102室 Resort Hotels Astor Apartment T: +86 22 2457 8888 Western Qing Wang Fu Club Suites & Rentals A: 6-17, bldg. 17, Magnetic Capital 天诚丽笙世嘉酒店游泳池 A: No. 32, Tai’er Zhuang Lu Holiday Inn Binhai Tianjin Serviced Residences Binshui Xi Dao, Nankai District 河东区新开路天诚丽笙世嘉酒店 层 Brasserie Restaurant Heping District 4 : No. 86, 1st Avenue, TEDA Gyms A: No.55 Chongqing Road, T: +86 22 8378 8397 (English) A: Renaissance Tianjin TEDA A +86 22 2303 2888 T: Heping District +86 136 0205 9458 (Attn: Elsa) Hotel & Convention Centre T: +86 22 6628 3388 Champs Elysees 利顺德公寓 Indoor Swimming Pool T: +86 22 8713 5555 青竹堂足疗养生馆 No. 29, 2nd Avenue, TEDA 天津滨海假日酒店 A: 2F, Renaissance Tianjin TEDA 和平区台儿庄路 号 A: 4F, Health Club, Holiday Inn 开发区第一大街86号 32 E: [email protected] 时代奥城商业广场17座6层17号 T: +86 22 6621 8888 ext. 3711 Hotel & Convention Centre Tianjin Riverside, Phoenix Shopping W:qingwangfu.com 万丽西餐厅 No. 29, 2nd Avenue, TEDA CAR/BUS Rental Services Mall, Haihe Dong Lu, Hebei District Sheraton Apartment 庆王府公馆 开发区第二大街29号天津万丽泰达 T:: +86 22 6621 8888 in Tianjin and Beijing with A: Zi Jin Shan Lu, Hexi District 和平区重庆道55号 Hospitals T: +86 22 2627 8888 ext. 2318 酒店及会议中心 香榭丽舍健身俱乐部 T: +86 22 2731 3388 reasonable rates. 海河假日室内游泳池 开发区第二大街29号天津万丽泰达 喜来登公寓 To make a reservation or enquiry, 河北区海河东路凤凰商贸广场天津 酒店及会议中心2楼 河西区紫金山路 Logistics please send e-mail to 海河假日酒店4层 E: [email protected] RENAISSANCE TIANJIN TEDA Holiday Inn Binhai Hotel LOGISTICSTIANJIN can provide T: +86 135 0207 0987 a full range of LOGISTICS CONVENTION CENTRE HOTEL Fitness Centrer No. 29, 2nd Avenue, TEDA A: 15F, Holiday Inn Binhai Tianjin SERVICES: TEDA & TANGGU Feast All Day Dining A: No. 86, 1st Avenue, TEDA ▪ Import and Export shipments Restaurant T: +86 22 6621 8888 Tianjin International SOS Clinic 天津万丽泰达酒店及会议中心 T: +86 22 6628 3388 ext. 2960 ▪ Pick up/deliver shipments and A: 1F, Sheraton Tianjin Binhai Hotel A: 1F, Sheraton Hotel, Brazilian 开发区第二大街29号 天津滨海假日酒店健身中心 documents No. 50, 2nd Avenue, TEDA Zi Jin Shan Lu, Hexi District 开发区第一大街86号天津滨海假日 ▪ Inland container transportation Salsa Churrasco +86 6528 8888 ext. 6210 T: +86 22 2352 0143 T: 酒店15层 ▪ Customs clearance 11F, Holiday Inn Binhai Tianjin 盛宴全日制西餐厅 天津国际（SOS）紧急救援诊所 A: ▪ Inspection and quarantine No. 86, 1st Avenue, TEDA 开发区第二大街50号 declaration 紫金山路天津喜来登大酒店公寓楼1层 T: +86 22 6628 3388 ext. 2740 天津滨海喜来登酒店1层 ▪ Warehousing in bonded zones 巴西烧烤餐厅 For further details, send e-mail to 开发区第一大街86号天津滨海假日 [email protected] 酒店11层

74 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 75

Last Words Last Words

thrive on consistency alone. Look at McDonald’s for The next problem is when a restaurant overcomplicates example: a Big Mac in Seoul is the same as a Big Mac in things. “Keep it simple, stupid” is an adage to live by Atlanta. The food isn’t great, but at least you know what in the food service industry. Occasionally, restaurants Keep it Simple, Stupid you’re getting. Bianca is no different, albeit with much make this mistake before they serve their first customer, better food. offering foods of varying styles and cuisines. If I walk By Christopher Ribeiro into an Italian restaurant with fajitas on the menu, my Now that I’ve sufficiently raved about Bianca, let’s explore hopes won’t be high that the gnocchi is any good. Even what has gone awry with other Western restaurants in worse is when a restaurant begins by offering a simple Tianjin. Before we do, I think it’s important to understand (focused) menu, then expands it in hopes of reaching the character of the city. Anyone that has traveled a fair a wider audience. There is an analogous phrase from amount probably wouldn’t rank Tianjin among other the television industry which is fitting here, known as ‘world-class’ cities. Let’s call a spade “jumping the shark”. If a restaurant a spade and appreciate Tianjin for tries to do something that is out what it is: a city on the rise, developing Needless to say, there of character, chances are they are at breakneck speed, and constantly heading rapidly towards the end. living in the shadow of its’ more is a misguided and metropolitan cousin to the north. often exceedingly The last problem, which in a place However, Tianjin boasts a population like China can be unavoidable at of over twelve million people. A unwarranted belief times, is consistency. I’ve seen a few city this large, with such a diverse that Westerners have examples where a new restaurant international community, ought to a superior upbringing opens in Tianjin to excellent reviews, have a decent selection of restaurants and within six months is suffering if it’s going to be regarded as a modern and therefore are from what we’ll just call “Italian and eclectic place to live or visit. Many more courteous Fajita Syndrome”. Often, the reason is restaurateurs have tried to achieve because the chef that the restaurant sustained success in the Tianjin and polite than the concept was built around has left market and almost an equal number Chinese. and the owners scramble to try to have failed. Why? maintain their identity or carve out a new one. When this happens, the Without naming names, I can say I’ve food quality suffers, and customers seen an unsettling trend with some of don’t know what to expect from one the better restaurants in the city. Most visit to the next. (As a side note, I’m start with a specific vision which is sure it’s not easy to lure a chef worth usually chef-centric and focuses on his or her salt to Tianjin) Consistency a particular regional cuisine. What can also suffer if ingredients can’t be tends to happen, however, is that after sourced easily, which again, could be a few months they begin to stray from a potential problem for restaurants ecently, I had dinner at Pizza Bianca with my In regards to the first point, “fresh, high quality ingredients”, this vision. serving Western fare in China. fiancé and two colleagues. One word sums up the Bianca was a success. For starters we ordered the bruschetta experience: “Outstanding.” After dining there, it and the arugula salad; our main courses were the t-bone, The first sign of trouble is when there Ultimately, great restaurants know Rgot me thinking, “Why can’t there be more places like a rib eye with gorgonzola butter (incredible), an artichoke is a noticeable, or sometimes very their identity. They typically do one this in Tianjin?” Now, this isn’t a restaurant review per se, and onion pizza, and the lasagna. The tomatoes were ripe, subtle, change to the ingredients. thing, and do it really well. I’ll take (although I’m sure Pizza Bianca will be happy to receive the the greens crisp, the onions perfectly caramelised, and the Usually, this is a cost reducing my “one trick pony” style restaurant free press), but more of a commentary about what’s right steaks were lightly seasoned and cooked to a true medium- method, but often, its complacency. over Cheesecake Factory with its with this particular venue versus what has gone wrong with rare. Finally, we ordered two servings of tiramisu for I remember when the owners of the forty-page menu any day. So to Pizza other Western restaurants in Tianjin. dessert. It was decadent, a heap of freshly whipped cream steakhouse I managed in LA wanted Bianca and any other restaurant that piled high over espresso soaked biscotti. Next time, my to switch from fresh lobster bisque to comes to Tianjin, please take my What separates an excellent restaurant from a mediocre fiancé and I won’t share. She’ll have to order her own. a frozen one, the proverbial canary advice and “Keep it simple, stupid.” one? Décor, service, and having a deep wine list all play in a coal mine if I ever saw one. Once The customers will keep coming back critical roles; however, I’m not exactly going out on a limb Moving on to point two, “simplicity”; the menu was one page this problem starts, it will always if you do. by saying that the food is the most important element. It and every item on that page was inviting. I don’t recommend continue to get worse before it gets better. Next, we were seems elementary, but serving consistently high-quality food you go to Bianca ravenously hungry, because you will freezing our fish, serving a lower grade of steaks, and so is more elusive than it seems. After all, if it were so simple, inevitably order far more than you could possibly finish. on. If serving food made with the best ingredients is what Visit us online: why do so many restaurants serve mediocre or blatantly underpins the success of an establishment, deviating from btianjin.cn/120714 bad food? A restaurant having good food boils down to The third point, “consistency,” was quickly verified just that concept will be the root cause of their eventual failure. three points: always using fresh, high quality ingredients, three days later. I returned again and there was no variation simplicity, and consistency. Bianca meets all three requisites. from before. The most successful restaurants in the world

80 Jul 2012 I Business Tianjin Jul 2012 I Business Tianjin 81 Art & Lesiure Wine Notes Châteauneuf-du-Pape

trust you all have enjoyed some Situated in the region of Provence, beautiful Chateau Mouton known worldwide for its breathtaking Rothschild and Chateau Cos landscapes, aromatic herbs, and Id’Estournel over the month of June. illustrious residents that include the For July, as the summer months come Avignon Popes and Vincent Van into full swing and the temperature Gogh to name a few, the small city of rises, I would like to introduce you to Châteauneuf-du-Pape is found. one of my favorite wine locales in the First arriving in this small village in world, Châteauneuf-du-Pape. the spring of 2003 in an attempt to explore the diversity of the area, several friends accompanied Oscar Martinez, Director of Food & m e on t h i s t r ip. Beverage of The St. Regis Tianjin Thirteen different varietals were found in this 32 square (a strong, cold, and dry wind coming metre enclave deep from the North/Northwest of France) i n t h e S o u t h o f intensifies the dry climate. France paired with The results are, for the reds, a very a myriad of scents, earthy and gamy wine with hints of t a s t e s , a n d t h e leather and a distinct spiciness that regions distinctive evolves as the wine ages. The white long bouquets, as we wines range from lean to oily, mineral went on an array of to rich. Whilst the reds are meant tastings. to be kept in a cellar over time, two Grenache is the most years at a minimum, the whites can widely used varietal be drunk young, although a seven i n t h e r e g i o n , year aging process will flourish very followed by Syrah, citric, exotic aromas. an d Mou r ve rd re For those looking to explore, these w it h a j am - l i ke , amazing wines can be tasted at Yan spicy, and structured Ting paired with our Peking Duck, note respectively. steamed Grouper, or seafood and tofu Three types of soil casserole. For a French experience, can be found there head over to Riviera for some torchon w i t h t h e m o s t foie gras or duck leg confit; and to popular being that those of you looking for a leisurely of rounds rocks or meal, try the mushroom tossed pasta pebbles that capture at Promenade. the heat during the day and release it at night, thus allowing Visit us online: the fruit to ripe; in btianjin.cn/120715 addition, the Mistral

About Oscar Martinez: Oscar Martinez is the Director of Food & Beverage of The St. Regis Tianjin and a wine Aficionado. He is responsible for the entire operation of 3 restaurants, bars, banquet and in-room dining. Originally from Mexico, Oscar has experience in 3 continents in award-winning restaurants and hotels. He has spent the last 7 years in China at The St. Regis Beijing, The St. Regis Lhasa Resort and The St. Regis Shenzhen before coming to Tianjin. Oscar Martinez is a contributing columnist about wine notes & recommendations for Business Tianjin readers.

82 Jul 2012 I Business Tianjin