BUSINESS CHINESE LESSON These Measures

CONTENTS Business Tianjin / February 2011

05 BIZ BRIEFS

11 NUMBERS

FEATURE STORY 12 Free trade vs. protectionism 28 Pedal power – local bicycle maker’s market expands

ECONOMY 16 China economic report, February 2011 19 Energy demand and green business Free trade vs. protectionism Government actions and policies that restrict or restrain international trade are often 22 PRESS REVIEW done with the intent of protecting local businesses and jobs from foreign competition. A government is said to be engaging in protectionism if it interferes with any all of BUSINESS CHINESE LESSON these measures. In recent years, protectionism has become closely aligned with anti- Getting started globalization. See P12 23 DIALOGUE 24 Andrea Vanzini, General Manager Tenova-TiMEC Company, Ltd. Tianjin

POLICY EXPLANATION 32 Opening of low-altitude airspace for general aviation

LEGAL ASSISTANCE 36 Tax rules for mergers & acquisitions

HR 39 HR outsourcing: gain or pain?

41 JOB POSTINGS

Energy demand and green business IPR China is rapidly emerging as a global leader in renewable energy. Building on its 43 Managing IP as a business asset abundant talent, a huge domestic market, development of related industries and massive investment in cutting-edge infrastructure like smart grids, China is well- positioned to overtake developed nations. See P19 REAL ESTATE 46 Residential transactions rebound

CHAMBER REPORTS 50 US, EU, Benelux

54 FEBRUARY EVENT CALENDAR

TRANSPORTATION 56 Domestic & international ﬂights, trains, metro, light rail

MAPS 60 Tianjin industrial parks & economic development areas 61 China

LISTINGS 62 Dining, nightlife, services Chinese vs. Western parenting A fascinating piece appeared in the Wall ARTS & LEISURE Forging ahead Street Journal on 8 January by Amy Chua, Book review & quotations a professor at Yale Law School, titled “Why 68 Italian-born Andrea Vanzini is the GM Last word of TiMEC, a local leader in supplying Chinese Mothers are Superior”. The author 69 technology, products and services was upfront about what some might see as for the metal and mining industries. harsh tactics in pushing her two daughters to He manages a workforce of over 250 pursue excellence, and made me consider and oversees production activity here. the differences between “Chinese” and “ See P24 Western” parenting. See P69

FEB 2011 I Business Tianjin 03 Business Tianjin February 2011

Dear Reader,

President Hu just concluded his state visit with President Obama in Washington, DC as of this writing. Considering his first visit came prior to the global economic crisis, it is worth noting a few comparisons.

In 2006, Hu was invited by President George W. Bush for a non-state-designated lunch at the White House. The US-China trade deficit ran 234 billion USD that year, and China’s economy grew at around 11%. Hu reaffirmed a promise to lead a more consumer-driven economy, but made no concession on currency revaluation of a quasi-pegged CNY (then 8.02 per USD).

Yet CNY slowly appreciated. And China’s promised domestic demand developed. When the global crisis struck, domestic consumption helped China recover www.businesstianjin.com quickly. MANAGING DIRECTOR J. Hernan This year Hu was welcomed back to a fully designated state dinner, complete [email protected] with all the formality of a global political dialogue. Over the past 4 years, the two CHIEF EDITOR nations’ annual trade deficit has increased a relatively modest 8%, to 252 billion Jamie Michael Kern USD, though China’s GDP still grew close to 10%. China’s booming consumer- [email protected] driven economy and strengthened currency (now 6.59 CNY per USD) suggest SENIOR EDITOR steady progress for both nations. Wang Na [email protected] Obama quipped to Hu that the US still wants “to sell you all kinds of stuff ”. And Editorial Assistant though obstacles continue to stand in the way of free trade, economic indicators Samantha Mao point up. CONTRIBUTORS Simon Bai, Mike Cormack, Daniel Kenneth For commentary on trade developments with China, please read through this Mark Gao, Wolfgang Knüfer, Philippe Healey Joei Villarama, Susan Salzbrenner month’s Economy, Feature Story on protectionism, Press Reviews and Legal Diego D'Alma, Robbie Chen, Jason Gao Assistance columns. Med Chottepanda PROOFREADER As always, we welcome your constructive input and inquiries. If you are interested Cerina da Graça in contributing to a future issue of Business Tianjin, or just have questions or comments on an article, please reach out to us at the contacts on this page. GRAPHIC DESIGN Li Kechao, Li Weizhi [email protected] SALES & ADVERTISING Zhang Danni, Julia Cao, Edward Wu [email protected] Sincerely, EVENTS & PROMOTIONS Irene Fu [email protected] PHOTOGRAPHERS Wang Yifang, Lukas Birk DISTRIBUTION Tang Xiaoyan, Huang Bin [email protected] ADVERTISING Jamie Michael Kern InterMediaChina PUBLISHING DATE Chief Editor – Business Tianjin magazine February 2011

Business Tianjin is FREE ONLY for Members TEL: +86 22 2576 0956

ISSN 2076-3735 Data from the National Bureau of Statistics, US Census Bureau, OANDA.com and Time magazine.

04 FEB 2011 I Business Tianjin Biz Briefs

TIANJIN NEWS PetroChina completes crude oil city Assistance Programme. Ms. Grace storage project Fu, Senior Minister of State for National Binhai GDP exceeds Pudong’s Development and Education and Vice Chairman of the Singapore-Tianjin Eco- nomic and Trade Council, announced this at the Sino-Singapore Tianjin Eco-city Investment Promotion Seminar organized by IE Singapore on Friday. Singapore- based companies can now enjoy a grant of up to 150,000 USD to set up a physi- cal presence in the Eco-city, develop in- market expertise for key staff, and pen- Tianjin Binhai New Area's GDP amounted PetroChina Co. Ltd., the nation's top oil etrate the local market. Located within to 223.13 billion CNY (33.68b USD) in producer, has completed its 1 million cu- Binhai New Area, Tianjin Eco-city has the first half of this year, exceeding the bic meters of commercial crude oil storage attracted some 1.19 billion CNY (232m 222.66 billion CNY generated by the in Tianjin, according to a news briefing USD) making up 46% of Eco-city's total Shanghai Pudong New Area, the China on the Tianjin Municipal Government's commercial investments from Singapore- Business News (CBN) reported Tuesday. website. The briefing says the completion based companies as of December 2010. This is the first time that Binhai's GDP has of this project is expected to help stabilize - Straits Times, 7 January exceeded that of Pudong. Binhai gener- the energy supply and ease oil price fluc- ated 380 billion CNY in GDP in 2009, tuation. Pursuant to an agreement signed Melbourne strengthens business while Pudong generated 400 billion CNY. in September between China and Russia, ties with Tianjin Binhai's development is mainly driven by this project will be used to store crude oil investment on resources and projects, the needed by the oil processing joint ventures CBN reported. between these two countries in Tianjin. - China Daily, 30 December - China Knowledge, 28 December

Tianjin Steel inks iron ore purchase Baltimore firm to design China's agreement biggest mall A Baltimore-based architecture and planning firm announced Monday that it has been selected to design China's largest shopping center. Design Development Group Inc. said it won a contract to design A Melbourne Council-appointed business the retail component of a mixed-used delegation is expected to travel to sister city project called the Tianjin City Culture Tianjin once every two years, as councillor Center Development, planned for a site Carl Jetter said more could have been done less than 50 miles outside Beijing's central in the past to boost business ties. Council- business district. It didn't disclose financial lors Jetter, Kevin Louey, Ken Ong and terms of the contract. Deputy Lord Mayor Susan Riley visited the It is reported that Chinese steelmaker - Baltimore Sun, 4 January Chinese city in October to commemorate Tianjin Iron and Steel Corporation Ltd. the 30th anniversary of the relationship. A has inked an iron ore purchase agreement Singapore's boost for Tianjin report on the trip was presented at the 21 with Hainan, China-based iron ore miner Eco-city December council meeting, with a motion Hainan Mining Corporation Ltd. Accord- passed to endorse a biennial business mis- ing to the agreement, Hainan Mining sion programme. The first business delega- will supply an annual volume of 450,000 tion is set to visit Tianjin in 2012. tonnes of iron ore to Tianjin Steel from - Gov Monitor, 10 January the beginning of 2011 to the end of 2015 for an estimated aggregate contract vol- Siemens signs contract with Tianjin ume of 2.25 million tonnes of iron ore. Metallurgy Group Hainan Mining has proven reserves of Siemens VAI has signed a contract with 270 million tonnes of iron ore with an To encourage more Singapore-based Tianjin Metallurgy Group Zhasan Youfa annual iron ore production of 4.6 million companies to participate in the Tianjin Iron & Steel Co. Ltd. to produce a rod out- tonnes. Eco-city, International Enterprise (IE) let for a new rod mill, which will enable the - SteelGuru, 27 December Singapore is offering its new Tianjin Eco- company to produce high-end rod products

FEB 2011 I Business Tianjin 05 Biz Briefs

with thermomechanical rolling. This is the Company. The fund plans to raise 0.5-1.5 year and start operation in early 2012. third mill that Siemens will build for the billion CNY while its partner, Futong, will The center will be able to store 7.7 mil- Tianjin Metallurgy Group. Commissioning contribute 150 million CNY. lion bottles of red wine. Upon comple- is scheduled for year-end 2011. Depending - CapitalVue, 13 January tion, it will become the world's largest on product mix, the new mill should pro- center for the distribution, storage and duce approximately 700,000 tpy with guar- Tianjin to build world's largest wine wholesale of red wines, with annual anteed speeds of 112 meters per second. center sales of 10 billion CNY. - 12 January Hong Kong-list- - China Knowledge, 6 January ed Goldin Prop- Jinbin Development to establish erties Holdings FINANCE real estate fund Ltd., Tianjin Port Property developer (Group) Co. and Wal-Mart invests in China’s Tianjin Jinbin De- Dongjiang Free 360buy.com velopment intends Trade Port have to inject 152 million inked the "Goldin Wine Wholesale and CNY to set up Tian- Distribution Center" agreement to joint- jin Jinbin Futong ly build the world's largest wine distri- Investment, a wholly bution center in Tianjin, one of China's controlled subsidiary four municipalities. The distribution that will subscribe center will be located in Dongjiang to 150 million limited partnership shares Free Trade Port zone, one of the largest of Jinhe Development Equity Investment free trade zones in China, in the city's Fund Partnership, reports stcn.com, citing Binhai New District, and it involves Wal-Mart, the world’s largest retailer a company filing. Jinhe Development is an estimated investment of 30 million by sales, has invested in China’s largest the ﬁrst joint venture real estate fund set up USD. Reportedly, the project will kick e-commerce consumer electronics seller, by Jinhe Equity Investment Management off construction in the beginning of this 360buy.com, in a move that underlines

06 FEB 2011 I Business Tianjin Biz Briefs

the growing interest of global retailers ing 1 January, a tax on the purchase of cars ing 22 billion CNY (3.32b USD) of short- in China’s rapidly growing online mar- with engine capacity of 1.6L or less will be term paper and medium-term bills already ket. The retailer was one of six investors restored to 10% from the present 7.5%. The sold, won’t exceed 47 billion CNY after in a round of funding that raised 500 government had in January 2009 halved the the new sales, said Chalco in a statement million USD for 360buy, whose rivals tax to 5% to stimulate car purchases in the to the Shanghai stock exchange. The types include Taobao, the dominant online wake of the global financial crisis, before and terms of the debt issues have yet to be marketplace owned by Alibaba. Wal- increasing the rate to 7.5% at the beginning decided, Chalco said. Chalco is stepping Mart has about 300 stores in China. of 2010. The looming expiry of the incen- up investments in overseas production, in- Its Sam’s Club discount warehouse tive, which had been well-anticipated by cluding copper assets in Peru and an iron- business launched its own e-commerce prospective car buyers on the mainland, ore project in Guinea. business there in November, using a has boosted automobile sales in recent - Bloomberg, 30 December new global platform that it has built months as consumers brought forward their over the past two years. The retailer has planned purchases. Online ad revenue to beat taken similar minority stakes with fledg- -MarketWatch, 29 December newspapers ling e-commerce businesses in the US that it has also worked with, including State-owned firms should wel- 1-800-Contacts, a contact lens retailer, come involvement from foreign and Green Dot, the web-based payments capital and financial company. The State-owned Assets Supervision and - Financial Times, 28 December Administration Commission (SASAC) of the State Council has called for the China approves US banks' engagement of non State-owned capital, The Internet is expected to overtake joint-venture bid including private and foreign assets, in newspapers in advertising revenues in Chinese regulators said they have granted the stake-holdings of listed central gov- China by 2012 as advertisers increas- approval to Wall Street banks Morgan ernment-invested State-owned enterprises ingly take advantage of the country's Stanley and JP Morgan Chase to set up (SOEs). "To promote their comprehensive booming online market, according to a joint ventures on the mainland. The China strength in a global market full of op- new report by the Data Center of China Securities Regulatory Commission said it portunities and challenges, SOEs are sup- Internet. Online advertising revenues had approved the tie-ups with Chinese se- posed to welcome both private and foreign are forecast to reach 46.1 billion CNY curities companies to allow the US banks enterprises to be dynamically involved in (6.95b USD), exceeding the 42.39 bil- to underwrite stocks and bonds in China. their management and share holdings," lion CNY earned by newspapers, by The decisions allow the banks to compete said Wang Yong, chairman of the SASAC. 2012, and become the second-largest with Goldman Sachs, which has had a Wang said the current complicated and media for advertising in the country, Chinese joint venture since 2006, and volatile economic environment, both at said the report. Last year, television European banks including UBS, Deutsche home and abroad, has posed more chal- advertising maintained the lead, reg- Bank and Credit Suisse, which have simi- lenges to China's SOEs, most of which istering total revenues of 75.86 billion lar partnerships. are expected to grow into global industrial CNY, more than twice that of news- - Channel News Asia, 7 January giants and become China's economic loco- paper advertising at 36.5 billion CNY, motives. and almost three times that from online China auto shares mixed as - China Daily, 10 January advertising, which was 25.66 billion tax-incentive expiry looms CNY. Aluminum Corp. of China to sell - China Daily, 10 January 2011 debt securities Allianz buys shares of China Pacific Insurance Allianz, Europe's biggest insurer, said it bought H shares of Shanghai-based China Pacific Insurance (Group) Co. for 855 million USD from Carlyle Group. Munich-based Allianz now owns 240 Chinese automobile stocks were mixed million H shares in the Chinese insurer, late December after the government an- representing 2.8% of China Pacific's nounced it will allow a tax incentive on Aluminum Corp. of China Ltd. (Chalco), total outstanding shares, or 10.4% of the small-car purchases to lapse by the end the nation’s largest maker of the metal, H shares. "We are pleased to have the of the week, marking the latest move by said its board approved a plan to sell debt opportunity to increase our long-term China to ease the growth in vehicle use. securities on China’s interbank market. investment in CPIC as we continue to The Ministry of Finance said that, start- Total outstanding debt instruments, includ- strengthen our position in this important

FEB 2011 I Business Tianjin 07 Biz Briefs

growth market," said Michael Diekmann, took effect on 6 January. Allianz CEO. The German insurer has al- - Xinhua, 14 January ready set up a life insurance joint venture and a property and casualty insurance ICBC to add branches in Europe subsidiary in China. - People's Daily Online, 11 January

Yuan-based trade to increase

Industrial and Commercial Bank of China is more than doubling the number of branches in Europe to expand its glo- One-third of China's cross-border trade may bal footprint, the Wall Street Journal re- be settled in yuan by 2016, as the Chinese ported in its online edition. ICBC opens government pushes for the internationaliza- branches in Paris, Brussels, Amsterdam tion of the currency, said a senior economist and Milan mid-January, and Madrid the with HSBC on Wednesday. "China's cur- week after, to offer retail and commer- rency has been under-represented in global cial banking services. The bank, China's trade and capital markets, when compared largest lender, currently has branches to its trade and economic scale. But trig- in London, Moscow, Luxembourg and gered by various government measures, Frankfurt. yuan-settled trade has been growing fast," - International Business Times, 17 January said Qu Hongbin, HSBC's chief economist for China. Transaction volumes increased Ceradyne opens second solar sharply after the People's Bank of China ceramics factory ﬁrst launched a pilot scheme for yuan trade settlements in June 2009 and expanded it a year later. - China Daily, 13 January

New moves to globalize CNY China announced on Thursday that the nation's qualified businesses and banks could settle their overseas direct invest- Ceradyne, Inc. announced the grand ment in CNY, a move that could expand opening of its new 218,000sqft factory – the Chinese currency's global reach and Ceradyne Tianjin Advanced Materials – ease excessive liquidity domestically. in Tianjin. The facility will produce high- The People's Bank of China, the cen- purity ceramic crucibles for the forming tral bank, said in a notice on its website of large polysilicon ingots for use in the that banks and businesses which were manufacturing of photovoltaic silicon allowed to settle cross-border trade in solar cells. The opening ceremonies were CNY would also be permitted to conduct attended by customers from Europe, the direct investments overseas using yuan, US, Taiwan, Korea, Singapore, Malaysia or Renminbi. Further, domestic banks and China. Suppliers and contractors could offer those businesses loans for from Italy, Mexico, the US and China their overseas investment, and investment also attended along with Chinese em- profits could be sent back to China in ployees and key Ceradyne executives, in- yuan. Related procedures would be more cluding Ceradyne ACO President David expedient, according to the new rules that P. Reed and Ceradyne CFO Jerrold J.

08 FEB 2011 I Business Tianjin Biz Briefs

Pellizzon. The new facility is located on riers by name. It called for a crackdown more than 2.3 billion CNY (347.5m USD) Ceradyne's 13.7-acre plot in the Tianjin "on illegal VoIP (voice over Internet have been dealt with during the crackdown, Airport Economic Area. The operation protocol) telephone services" and said it which will continue until March. will be run by Ceradyne Chinese ex- was collecting evidence for legal cases - Xinhua, 12 January ecutives and engineers who have been against them. Skype, partly owned by trained by US-based Ceradyne Thermo web retailer eBay Inc, has been growing LOGISTICS Materials' management. in popularity among Chinese individu- - Marketwire, 20 January als and businesses to make cheap or free Chinese shipyards weather hard times international phone calls. The circular, US battery firm JV dated 10 December, did not say what Wanxiang Electric Vehicle Co., a division amounted to illegal services and did not of the Chinese conglomerate Wanxiang name any VoIP providers it considered to Group Corp., signed a joint venture be breaking the law. agreement with start-up Ener1 Inc. to - Reuters, 4 January make lithium-ion battery cells and packs for vehicles in China. Company officials New standards for rare earth sector on both sides said the partnership eventu- China's shipyards delivered less than 80% ally could be expanded to export batteries of their existing orders in the withering from China, but officials at Ener1 have global shipping market, said a report from concerns about protecting its US battery the China Association of the National production. The joint enterprise is expect- Shipbuilding Industry (CANSI). A total of ed to have the ability to produce about 70 million deadweight tonnage (DWT) of 40,000 electric-vehicle battery packs by ships were scheduled for delivery in 2010, 2014. Wanxiang is putting up almost all but only 56.76 million DWT (72.8% of of the capital for the venture, including a A set of new industry standards aimed the total orders) were actually delivered 553,000sqft plant in Hangzhou. The tie- to reduce pollution and regulate prac- by Chinese shipbuilders by the end of No- up could be seen as a demonstration of tices by rare earth mining companies vember , according to the CANSI report. China's sometimes-debated thirst for the is set to be revealed this year, after ob- The global financial meltdown has dealt intellectual property held in the West to taining the appropriate approval from a severe blow to the global shipbuilding help transform its burgeoning economy. the Ministry of Environmental Protec- industry, and many Chinese shipbuilders' Ener1, a publicly traded company with tion. The new standards, which are clients had to postpone deliveries due to 700 employees, was able to leverage its expected to pose operational challenges stringent cash flows or shrinking demand, technical know-how into a 40% stake in and raise environmental costs, will put said Zhang Shengkun, president of the the new operation. rare earth miners under the spotlight, Shanghai Society of Naval Architects and - Wall Street Journal, 18 January said Huang Xiaowei, vice-director of Marine Engineers. the National Engineering Research - China Daily, 5 January Center for Rare Earth Materials and a LAW & POLICY professor in Beijing General Research China Shipping orders five tankers Institute for Non-ferrous Metals. China Shipping Development (Hong Skype could be designated illegal - China Daily, 7 January Kong) Marine has ordered two very in China large crude carriers (VLCCs) and three Measures outlined to fight rampant Average Freight Rate Assessment ships piracy (AFRAmaxes), which are tankers that Vendors of illegally copied films, music or range in size from 75,000-120,000 dead- other copyright products on-line will face weight tons. The tankers will be built by up to three years in jail, China's law enforce- China Shipbuilding and Offshore Interna- ment agencies announced in a pledge to crack tional and Dalian Shipbuilding Industry. down on "rampant" piracy. The sentencing Tanker Operator reports the acquisition policy was revealed at a press conference, will be funded by parent China Shipping when the Ministry of Public Security an- Group through a combination of bank bor- nounced that police had arrested more than rowings and internal financial resources. China will crack down on what it called 4,000 people suspected of IPR violations - China Economic Review, 5 January illegal Internet telephone providers, ac- since a crackdown began in November. Gao cording to a circular from the Ministry Feng, deputy director of the ministry's Eco- Closer cooperation with COSCO eyed of Information and Industry Technology. nomic Crime Investigation Department, said Turkey's Marti Container Services hopes The statement did not mention any car- more than 2,000 cases of piracy involving to further cement its business with Chi-

FEB 2011 I Business Tianjin 09 Biz Briefs

na Ocean Shipping (COSCO), China's China’s car market to triple by 2020 journeys by bus, up 12% year-on-year; largest shipping group. COSCO entered China’s automobile market will nearly 230 million journeys by train, up 12%; Turkey in 1996 and now has a 13% triple in size to 40 million and account 35 million journeys by boat, up 6%; share in Turkey's container transporta- for half of world production by 2020, and 32.2 million journeys by air, up tion market. COSCO offers container according to Beijing Automotive In- 10%. The Spring Festival, also known liner services in major Turkish ports, dustry Holding, China’s fifth-largest as the Lunar New Year, will fall on 3 including Istanbul, Izmir and Mersin, carmaker by sales and market share. It February 2011. and provides ship agency for bulk cargo expected its own sales to double to at -Xinhua, 30 December carriers at all Turkish ports. Because of least 3 million units within five years. "I its sheer size COSCO owns and controls personally believe that 40 million is re- Donors sought to ease blood over 800 modern merchant vessels with alistic in 10 years,” said BAIC president shortages an annual carrying capacity of 400 mil- Wang Dazong. Chinese passenger car The national health authority may in- lion tons, Turkey is but one of the mar- sales reached 13.8 million last year, sur- troduce a new blood donation system to kets in which it is an important player. passing the US – formerly the world’s counter seasonal shortages reported by - 12 January largest vehicle market – for the second many local blood banks. The propor- year running. tion of voluntary donations has reached TELECOM & TRANSPORTATION - Financial Times, 14 January 99% since the country established the current system and enacted the blood In rivalry, China Unicom offers free China Eastern to buy 50 Airbus airliners donation law in 1998, Ministry of mobile Internet to users China Eastern Health (MOH) figures showed. "How- China Unicom started offering free Wi-Fi Airlines said it ever, there are still occasional blood access until the end of March for custom- had agreed with shortages, especially during winters, ers who have signed a contract, in order Europe-based which force the postponements of many to catch up with its competitors China Airbus to buy medical operations," ministry spokes- Mobile and China Telecom, and boost its 50 A320 airlin- man Deng Haihua told a news confer- 3G business in China. Since China Unicom ers with a list ence on Monday. The MOH is develop- launched its Internet-capable smartphones, price of 3.22 ing solutions, such as fostering a stable services utilizing the Internet have become billion USD, pool of regular donors, Deng said. This increasingly important for the company to in the latest sign of the country's aviation will improve the supply's reliability and compete with its rivals. "China Unicom boom. The aircraft would be delivered in safety, he said. is partially forced to offer Wi-Fi access, stages from 2012 to 2015 and would ex- -China Daily, 11 January 2011 because China Mobile and China Telecom pand China Eastern’s capacity by 11.24%, already began offering similar services last including the fleet of its Shanghai Airlines Taxi drivers and officials at year," said Jake Li, an analyst at Guotai Ju- subsidiary. The airline did not disclose the stalemate over new work rule nan Securities. price of its acquisition but said the Airbus Local authorities in Zhengzhou, capital - China Daily, 5 January consortium had granted it "significant price of Henan province, have denied media concessions... which will mainly affect the reports that they dispatched thousands Overseas telecoms keen to depreciation of the aircraft in the operation of police officers to break a strike by deploy China's TD-LTE cost of the company." the city's taxi drivers. The drivers had Cell phone operators including Sprint - AFP, 31 December staged a two-day strike to protest a new and Japan's Softbank Telecom plan to government policy that requires them deploy TD-LTE networks. Sha Yue- GENERAL to work seven days a week. Nearly half jia, executive vice-president of China of 10,607 licensed taxi drivers took part Mobile Communications Co., said that China braces for Lunar New Year in the strike by refusing to take passen- TD-LTE, the next-generation telecom- travel season gers. munication standard provided by China The annual mass passenger transpor- - China Daily, 13 January Mobile, will be a mainstream 4G tech- tation for the traditional Lunar New nology across the world in the near Year will start on 19 January, with an future. He said the fourth-largest carrier expected 2.85 billion journeys in 40 in the United States, whose name he did days. The National Development and not reveal, has contacted China Mobile Reform Commission predicted that and shown interest in building up a TD- the journeys during this peak travel LTE network, indicating China's home- season, commonly known as Chunyun To subscribe to our daily Biz Briefs grown 4G technology may breach a ma- (spring transportation), would be up E-newsletter, please email ture telecom market in North America. 11.6% compared to the previous one. [email protected] - China Daily, 12 January Passengers would make 2.56 billion

10 FEB 2011 I Business Tianjin Numbers

1st Property tax will be levied on high-end commercial housing during the 12th Five-Year Plan (2011-2015) as part of the government's effort to adjust the property market by fiscal and taxation means. Chongqing will become the first th city to collect the tax, as early as the 6 first quarter of 2011. Results of the “2010 Amazing China - the Most Attractive Chinese Cities for Foreigners” were announced on 5 308.39 1.4% January. Tianjin ranked 6th. More than China's gold output in the first 11 China, the world's biggest energy 179,000 expats in 353 cities (excluding months of last year reached 308.39 user, increased net imports of crude Hong Kong, Macao and Taiwan) voted tons, up 25.89 tons or 9.16% year- oil by 1.4 % in December from a from June to November 2010. on-year, according to figures from the month earlier as refineries maintained Ministry of Industry and Information high operating rates to ease a diesel Technology (MIIT). shortage. China bought 20.6 million metric tons, or 4.9 million barrels a day, 22.6% more than it exported, according to, data from the General Administration of China's tax revenues rose 22.6% to Customs. 7.74 trillion CNY (1.17t USD) in 2010 6,000,000,000 compared to one year earlier, the State China's central government will invest Administration of Taxation announced on 6 billion CNY to restore and protect the ! 9 January. Imperial Palace Resort, one of China's 8.7% best-known tourist destinations, in Chengde City, Hebei Province. China's GDP growth is forecasted to be 8.7% for 2011, a slowdown from the 10% expected 2010 growth. Inflation remains the biggest challenge for China's economy in the months to come, said 34.7% Deutsche Bank officials. China's foreign trade in 2010 jumped 34.7% from a year earlier to 2.97 trillion USD, while trade surplus fell 6.4% to 183.1 billion USD from the 2009 level. 5,098 The Central Commission for Discipline Inspection (CCDI) of the Communist Party of China (CPC) recently disclosed that in 2010, a total of 5,098 officials at the county head level or above have been punished for corruption, and 804 officials were referred for prosecution. 58% About 21% of economists surveyed said 350 70% China’s current high inflation rate may A high-speed rail link between Shanghai last until the third quarter, while 58% China land sales shot up 70% last year, and Beijing will open in mid-June, said that inflation could ease by the to 2.7 trillion CNY (470b USD) in trans- running bullet trains at an average second quarter after remaining high in actions. Land and resources minister Xu speed of 350 kilometers per hour. The the first quarter. The consumer price Shaoshi warned of social unrest among journey will take less than five hours. index (CPI), the main gauge of inflation, frustrated Chinese who can't afford to Currently, a rail trip between the two soared to a 28-month high of 5.1% in buy a home. cities can take from 10 to 18 hours. November 2010.

FEB 2011 I Business Tianjin 11 FEATURE STORY

Free Trade vs. Protectionism Conduct and performance of the US and China Part I Med Chottepanda, PhD. Economist/Consultant ABEFIS, Tianjin, China

What is trade protectionism? Government actions and policies that restrict or restrain international trade are often done with the intent of protecting local businesses and jobs from foreign competition. Typical methods of protectionism are import tariffs, import bans or quotas, trade remedies such as anti-dumping and countervailing duties, subsidies or tax cuts to local businesses, and direct state intervention. A government is said to be engaging in protectionism if it interferes with any or all of these measures. In recent years, it has become closely aligned with anti- globalization.

An expanded definition of trade protectionism could also include the conduct and performance of state- owned enterprises (SOEs); market economy status (MES); research and development grants to target companies in order to promote export; differential treatment between export and non-export companies with for state intervention in the form of domestic industries. Formerly, many respect to granting loans, subsidies, restrictions on free trade to protect blue-collar jobs in developed coun- licensing and other regulations; and a country’s economy and its people’s tries were lost to developing countries poor labor standards and employ- standard of living. due to competition. In recent years ment conditions, which are illustra- there has been a renewed discussion tions of state interventions designed Renewed interest for protectionism of protectionism due to offshore out- to attain unfair trade advantages. Historically, protectionism was as- sourcing and the loss of white-collar sociated with economic theories such jobs. Supporters of "protectionist" There is a significant debate sur- as mercantilism and import substitu- laws claim that keeping out foreign rounding protectionism. Critics tion. Most modern economists agree goods will preserve jobs, give ail- argue that, over the long term, pro- that protectionism is harmful in that ing domestic industries a chance to tectionism often ends up hurting its costs outweigh its benefits, and recover and prosper, and reduce the the people it is intended to protect, that it impedes economic growth. trade deficits. and often promote free trade as a Recent examples of protectionism superior alternative to protectionism. in developed countries are typically Common protectionist measures Protectionists, on the other hand, motivated by the desire to protect the A variety of protectionism policies believe that there is a legitimate need livelihood of individuals in important that restrict trade between states have

12 FEB 2011 I Business Tianjin FEATURE STORY

been claimed to achieve protectionist firms adjust to the world markets); loss (under protectionism you end goals. These include: tariffs (taxes on export subsidies (payment to export- up with less money for buying other imported goods, which increase the ers for a percentage of the value of things, which reduces consumption cost to importers, and increase the their exports to increase the volume and thus eliminates jobs); higher price of imported goods in the local of trade); exchange rate manipula- prices (for example, European con- markets, thus lowering the quantity tion (government intervention in sumers pay dearly for EC restrictions of goods imported); import quotas the foreign exchange market to lower on food imports and heavy taxes for (restrictions on quantity that increase the value of its currency by selling domestic farm subsidies); higher tax- the market price of imported goods; its currency in the foreign exchange es (you pay more taxes on imported the economic effects of an import market, which results in the rise of goods, but also raise your general quota is similar to that of a tariff); the cost of imports and lowers the taxes as well, because of increased administrative barriers (various cost of exports); and international bureaucracy to manage trade restric- rules regarding food safety, environ- patent systems (patents, copyrights, tions); and the debt crisis (trade mental standards, electrical safety, intellectual property rights used as restrictions by the Western countries etc.) as a way to introduce barriers handy protectionist measures). make it impossible for developing to imports; anti-dumping legisla- countries to earn the hard currencies tion (laws to prevent "dumping" of Protectionism and what it costs needed to repay their loans). cheaper foreign goods that would Classical liberal philosopher John cause local firms to close down); di- Stuart Mill astutely observed that Most economists believe that protec- rect subsidies (government subsidies "trade barriers are chiefly injurious tionism measures are most likely to given to local firms that cannot com- to the countries imposing them." His harm the people they are meant to pete well against imports, in order followers claim that it is true today as help. They instead support free trade to "protect" local jobs and help local it was then, for reasons such as jobs based on the principle of compara- FEATURE STORY

tive advantage: the gains from free trade outweigh any losses because free trade creates more jobs than it destroys by allowing countries to specialize in the production of goods and services in which they have a comparative advantage.

Protectionism: gainers and losers Free trade supporters claim that those who gain from "protectionist" laws are special-interest groups, such as some big corporations, unions and farmers' groups, all of whom would like to get away with charging higher prices and earning higher wages than they could expect in a free marketplace. These special interests have the money and political clout for influ- encing politicians to pass laws favorable to them. Politicians in turn play on the fears of uninformed voters to rally support for these laws.

The losers are the ordinary consumers who have to pay higher prices for their goods and services, and are left with limited product choices. They claim that consumer sovereignty is violated by protection laws in favor of fewer individuals belonging to special interest groups.

Free trade has been a panacea to many emerging nations, like China and In- dia. Most economists, including Nobel Prize winners Milton Friedman and Paul Krugman, believe that free trade helped workers in developing coun- to protect their country’s economy tionists point to the building of plants tries, even though the workers didn’t and jobs. They assert that economist and shifting of production to Mexico benefit from the stringent health and David Ricardo's theory of compara- by American companies such as GE, labor standards of developed coun- tive advantage (free trade) and its GM, and even Hersheys Chocolate as tries. The growth of manufacturing application to the present day is il- evidence that capital would move to and the myriad other jobs that the logical, obsolete, and has lost its le- any country irrespective of its com- new export sector creates throughout gitimacy. The comparative advantage parative advantage. the economy are likely to promote argument for free trade was explicitly competition among producers, lifting and essentially premised on capital The comparative advantage argument wages and living conditions. (and other factors) being immobile is also premised on full employment. between nations in the early part of According to the comparative advan- Arguments for protectionism the 19th century. Under the new glo- tage theory, “if one or other of the Protectionists argue that there is bal economy, capital tends simply to economies has less than full employ- a legitimate need for government flow to wherever costs are lowest to ment of factors of production, then this restrictions on free trade in order pursue absolute advantage. Protec- excess capacity must usually be used

14 FEB 2011 I Business Tianjin FEATURE STORY

seen and most detrimental to those countries (such as the US) who do not participate in the value-added tax (VAT) system. VAT generates revenues from taxation on the sale of goods and services, whether foreign or domestic. Protectionists argue that a country that does not participate is at a distinct disadvantage when trading with a country that does; the final selling price of a product from a non- participating country sold in a country with a VAT must bear not only the tax burden of the country of origin, but also a portion of the tax burden of the country where it is being sold.

Infant industry argument: Protec- tionists believe that infant industries must be protected to allow them to grow to a point where they can fairly compete with the larger, mature industries established in other countries. They believe that without this protection, infant industries will die before they reach a size and age where economies of scale, industrial infrastructure, and skill in manufac- Free trade creates more jobs than it destroys by al- turing have progressed sufficiently lowing countries to specialize in the production of allow the industry to compete in the goods and services in which they have a comparative global market. advantage. Social legislation argument: Pro- tectionists say that most industrial- ized governments have enacted laws to protect their citizens by restricting up before the comparative advantage to enter domestic markets without what companies can and cannot do reasoning can be applied”(Herman being subject to tariffs or other in pursuit of profit. Examples of laws Daly, 2007). Protectionists believe that forms of taxation leads to a situation include child labor, environmental it is therefore erroneous to base trade where domestic goods are at a disad- protection, competition (antitrust), policy on the principle of comparative vantage – a kind of reverse-protec- occupational safety and health, equal advantage in those countries that suffer tionism. While there exists foreign opportunity, collective bargaining, from significant unemployment or un- discrimination of US products, the minimum wage and intellectual prop- deremployment. They claim that there US tax system imposes no apprecia- erty. Protectionists argue that these are other contemporary reasons (listed ble tax burden on foreign goods and laws place an economic burden on the below) that justify adopting protection- services sold in the US, but imposes domestic companies bound by them, ism measures. a heavy tax burden on US producers placing those companies at a disad- of goods and services regardless of vantage when they compete – both US tax system: Protectionists argue whether they are sold within the US domestically and abroad – with goods that government intervention is or exported. and services produced by companies necessary to maintain a level playing unfettered by such restrictions. field among trading partners. They Protectionists also argue that this (to be continued next month) believe that allowing foreign goods reverse protectionism is most clearly

FEB 2011 I Business Tianjin 15 Economy

China Economy Report February 2011

By Daniel Kenneth

How to read government-induced two years. There’s just more money enforce Beijing's controls on the real inflation figures and understand out there chasing the same amount of estate industry. The newspaper real monetary tightening tools: goods. He warns that capping prices editorial reported that some local bank lending and money supply can’t change the fact that the money governments are providing false While out-of-control inflation in buys less; it only changes how people numbers of low-income housing China poses a serious threat to its are forced to deal with that fact – units built. Some local governments social stability in 2011, "CPI rate drop usually in a way that creates even are worried that property controls in December was almost certainly bigger problems, like shortages or may hurt local economies and their expected and it is too early to declare black market corruption. fiscal intakes. Premier Wen Jiabao victory on inflation,” also acknowledged in says Patrick Chovanec, late December that Finance Professor at measures to control Tsinghua University’s the housing market School of Economics are not being enforced and Management. properly. The general market consensus for China’s What matters is not the consumer inflation rate CPI one month after (the CPI) is that it will the government clamps moderate to 4.3% year- down price controls, it on-year for December is the CPI six months 2010, down from 5.1% or a year later, says in November. Chovanec. Although the People’s Bank of Based on politics – not China (PBoC) raised economics – Chovanec interest rates and bank reasoned that it was reserve requirements, imperative for China’s these are less-effective leaders to show they were monetary measures taking action to rein in to mop up liquidity in the skyrocketing cost of China. First, because living, and that they had there is little consumer the tools at their disposal financing in China, to enforce a short-term, raising interest rates targeted result. does not decrease overall Chinese Chovanec points consumer demand. out that while price controls and Just as the Chinese property market Second, most of Chinese savings are related crackdowns on speculation has failed to stabilize under the central bank deposits, unlike US counterparts and hoarding make bold news government’s ineffective control who have their savings in stocks, headlines, they have done little to measures, government-initiated bonds and real estate; higher rates, ease the economic pressures causing measures cannot stop investment therefore, will actually increase inflation. He explains the basic and the creation of a bubble. The consumption. economics behind of China’s out- People’s Daily, mouthpiece of the of-control inflation: due to China’s Chinese Communist Party, lashed out To understand if Beijing will take stimulus policies, its money supply has at the country's local governments, real measures to drive down inflation expanded more than 50% over the past accusing them of failing to adequately in China, “look at net new bank

16 FEB 2011 I Business Tianjin Economy

lending and the money supply Real estate costs are squeezing profit frustrated global counterparts on two figures for December and the first margins enough that companies main issues: China’s enormous trade couple of months this year,” suggests are starting to transfer increased surplus and CNY/USD exchange Chovanec. In 2010, despite plenty costs to consumers. Starbucks and rates. “For sustained rebalancing of of talk about tightening, Chinese McDonald's are raising prices for the the global economy, we should not banks lent nearly 8 trillion CNY, first time in several years. count too heavily on consumption almost double the level of any other growth in the developed world to year before their unprecedented 10 Expect the government to continue boost global demand,” write Ashoka –trillion-CNY blowout in 2009. to boost reserve ratios for banks and Mody, Assistant Director at IMF Perhaps even more to the point, to hike interest rates several times European Department, and Franziska China’s M2 measure of money supply over the next six months, says Rein. Ohnsorge, Senior Economist in the was up 19.5% in November 2010 However, because of worries about Office of the Chief Economist of the compared to same period in 2009. the faltering American economy and European Bank for Reconstruction M2 measure is used by economists the sovereign risk in the Eurozone, and Development. That means we when looking to quantify the amount Beijing will only be able to brake so are going to spend the next few of money in circulation and trying to much. Also, Chinese debt is reaching years fighting over anaemic demand explain different economic monetary a worrisome level and is starting to growth, and we will be apportioning conditions. constrain the rebalancing process, that demand via trade disputes, according to Michael Pettis, professor explains Pettis. “Don't expect inflation to ease of finance at Peking University. Thus, anytime soon,” says Shaun Rein, PBoC increasingly finds it difficult to According to Financial Times, since Managing Director at China Market raise interest rates without causing de-pegging of CNY from USD in Research Group. Increased cost of nationwide financial distress in living in China is largely systemic, not government-related entities, says due to speculators or bad weather, Victor Shih, political science professor according to Rein. The soaring cost of at Harvard University. labour is one of many causes. Salaries rose 20% in 2010 for companies like Rising trade/currency tensions Toyota and Foxconn, the Taiwanese In 2011, China will face increasingly electronics manufacturer based in China that produces most of Apple's products. Many companies, including Nike and Adidas, are already shifting to lower-cost production centers like Indonesia, according to Rein. Economy

June 2010, CNY has actually fallen on a trade-weighted basis. Sharp declines against EUR and JPY have more Three-month CNY trends than offset the currency’s small gains against USD. Beijing has purchased a substantial quantity of Japanese CNY vs USD government bonds, resulting in JPY exceeding its highest value in the past decade. 6.8 6.74 To be fair, the trade-weighted USD value also has been 6.68 gradually decreasing since the Federal Reserve’s quantitative easing. Yet the fact that CNY dropped in value against EUR 6.62

– a currency that lost significant value due to the sovereign 6.56 debt crisis – suggests that Beijing’s intervention must have been significant. 6.5

The tone of the currency war is going to become more aggressive in 2011. How China manages the rising global CNY vs GBP tensions with the US, Europe and the emerging markets is going to have enormous economic implication for foreign 11 businesses in China. 10.8

10.6 “Don't expect inflation to ease 10.4 anytime soon.” 10.2 10

Making CNY a global currency for trade China has taken a further step towards increasing CNY’s CNY vs EUR global stature by allowing domestic companies to move CNY 9.8 offshore for investment purposes. 9.5

The shift came as the PBoC allowed the currency’s daily 9.2 trading reference point to strengthen through the 6.6 CNY 8.9 per USD level for the first time on 13 January, a day after US Treasury Secretary Timothy Geithner reiterated concerns 8.6 about China’s currency policy, reported Financial Times. 8.3

Mainland companies have been using CNY to settle international trade transactions since July 2009 – Beijing’s initiative to reduce over-reliance on the use of USD. According to the CNY vs JPY PBoC, mainland companies can now use CNY to launch 0.086 businesses overseas and fund acquisitions. 0.084

“This is an important step to internationalise the 0.082 renminbi,” said Dariusz Kowalczyk, a strategist at Crédit 0.08 Agricole. “It’s significant because this will provide an additional means for renminbi to flow out of China.” 0.078 0.076

Data source: Oanda.com interbank rate

18 FEB 2011 I Business Tianjin Surge in energy demand and prospects for green business

Daniel Kenneth Economy

hina will drive a global surge to the threats to global energy security will more than double to 204 USD a in energy demand over the and climate posed by rising fossil-fuel barrel, it predicted. C next two decades, with the use will have far-reaching consequences country expected to account for more for the rest of the world.” Chinese oil companies enter than 20% of world demand by 2035, into M&A frenzy according to the International Energy The greatest driver of oil demand will China’s pursuit of secure natural energy Agency (IEA). come from the transportation sector, resources to meet domestic demand for according to Fatih Birol, the IEA’s chief energy has become one of the major In its annual World Energy Outlook economist. Demand for cars in China themes of international trade in recent report released on 9 November 2010, is set to increase about tenfold by 2035, years. But the country’s national oil the global energy organisation predicted he added. The country is also investing companies went into overdrive in 2010 that China’s demand would jump 75% heavily in clean energy technologies, as to eclipse their international rivals and between 2008 and 2035, contributing well as electric cars, and could become account for a fifth of all deal activity in 36% to the projected growth in global a big exporter, he said. the upstream oil and gas industry so far, energy use. Global demand would according to a Financial Times report reach 16.74 billion metric tonnes of oil Global oil demand will increase 18% on 7 November. equivalent by 2035. to 99 million barrels a day in 2035, from 84 million a day in 2009, the China has become the most rapidly “It is hard to overstate the growing report states. Oil supply, including growing consumer of oil. In the importance of China in global energy,” production of oils not classified as decade between 1999 and 2009, oil said Nobuo Tanaka, executive director crude, “comes close” to reaching a peak consumption in China increased of the IEA. “How the country responds by 2035, driving prices up to 113 USD by 93%, according to analysts at a barrel in 2009 terms, from around 86 Macquarie Research. This coincided USD a barrel today, according to the with a total global consumption watchdog. In nominal terms, prices increase of 11%.

The country imports about 55% of its needs. As China’s national oil companies have stepped up their acquisition drive, they have also become more sophisticated in the way Economy

they operate and in their approach to the past four years have expanded manufacturers. China's annual solar deals, according to Financial Times. by 31-fold and 27-fold, respectively, cell production growth of 115% making China the world's largest between 2006 and 2010, compared to Whereas before there would be one producer according to Samsung traditional EU solar power markets anointed Chinese buyer at an auction, Economic Research Institute like Germany and Spain’s average “now you get a multiple of Chinese (SERI). Building on its abundant growth of 80%, is remarkable. Based buyers early on in the process,” says talent, a huge domestic market, on process innovations in crystalline one banker in a Financial Times development of related industries solar cells, China has secured a high report. “They’ve come up the learning and massive investment in cutting- global market share in all sectors, curve. They will often be the highest edge infrastructure like smart grids, ranging from raw materials, cells and bidder, happy to pay for knowledge of China is well-positioned to overtake modules to finished goods. a certain region.” developed nations. Third is the electric vehicle (EV) While M&A might be one way First is China's wind power industry, market. Thanks to the combination forward, industry executives in China which is growing rapidly due to of innovative entrepreneurs and stress that acquisitions will only go China's huge market. China has government support, leading so far in helping the country meet secured technologies in a short time Chinese electronic car manufacturer its thirst for energy. “Think of how through collaboration with globally BYD developed the first ever plug- much oil China has to import every leading companies and through in hybrid vehicles in 2008 and day – how can M&A possibly meet government policy by using locally- commercialised them in 2010. As this gap?” asks one executive. He says produced parts, and state-owned of now, 39 companies offer 110 EV Chinese oil companies often sell the industries centered on machinery. models, according to SERI. The oil they produce overseas into the China is the world's largest producer Chinese government plans to allocate local market and that China has to of wind power turbines. In 2009 100 billion CNY (15b USD), or a rely on trade for energy security, not alone, 14GW of new wind power subsidy of 200,000 CNY (18,000 acquisitions. turbines were installed, which USD) per vehicle, over the next amounts to 36% of the world's new decade to revitalise the domestic China’s promising green installations according to SERI. market. In addition, by pushing for industry strategic partnerships and M&As China, the world's workshop and Second is solar power. China is also with global companies such as Volvo, second-largest economy, is rapidly the number one solar cell producer Daimler, and Better Place, Chinese emerging as a global leader in in the world and supplies 43.2% of companies are rapidly upgrading renewable energy. China's production the global solar cells. Four of the top their technologies. of solar energy and wind power over 10 solar cell companies are Chinese

FEB 2011 I Business Tianjin 21 Press Review

Re-engineering Suning Subtraction marketing: China Entrepreneur, 7 January 2011 simplify products Directors & Boards, 12 January 2011 Suning Appliance currently shows a high sales performance, and up to now sales The traditional marketing idea in China have steadily grown. Chairman Zhang is that the customer/investor is god, and Jindong, however, has warned that if the the enterprise should cater to the client’s company continues to follow its old pattern wants and needs. In this traditional view, of development – which focuses on opening enterprises hold massive promotional ac- new stores and expanding scale – profits margins will narrow. tivities to push their products, to beneficial effects. This has been During the past decade, Chinese electric appliance enterprises because customers often have difficulty in making decisions, so have relied on economies of scale to reduce procurement costs. they tend to purchase more things at bargain prices. But all this In this way, competitive prices helped win a market of consumers has now changed in China. eager for low-cost, high-quality commodities. But now consumers have become fastidious and pragmatic, forgoing mere product As a result of the explosive growth in number and type of prod- function in favour of higher product quality and value, and ucts, Chinese customers find it is increasingly difficult to choose. conceding to paying premium fees for them. So Suning has built The slew of options turns consumers off of new products and up elite stores which do not sell discounted appliances. Suning’s back on to familiar ones. elite stores sell many similar functioned products, such as business mobile phones and music handsets, but the high-end products Less is more. Fewer but better products can help shoppers and reap greater profits. clients selection one more quickly and easily. Yet most Chinese The e-commerce platform also has a natural price advantage which enterprises don’t want to reduce their product ranges, because will persist in the future. Customers often find what they want they harbour concerns over losing market share to rivals. But in the stores, then purchase online. The challenge is to provide simplifying product lines now can cut costs while increasing both superior service to online clients, as does online retailer Jingdong sales and consumer satisfaction. (360buy.com), which has a mature and efficient distribution system.

Special report: China’s place in the Chinese follow the same old script world (and they get the punch line) Economist, 4 December 2010 Washington Post, 19 January 2011

This 16-page feature lays out the history of Columnist Steven Pearlstein’s epigrammatic China’s diplomatic and economic presence summary of President Hu’s visit to Wash- on the world stage. It begins by allegory ington begins with, “Here we go again”. with the story of king Goujian, who in 492BC was kidnapped and imprisoned. His captors, observing his dignity, released him back into his former The US, writes Pearlstein, leads up to the kingdom. For 8 years, Goujian bided his time, built up an army talks by again announcing contempt for and weakened his captors with distractions of good business, China's currency, IP and subsidy poli- extravagance and women. When finally ready, he rose up and cies. President Hu again denies claims and forcefully reclaimed his kingdom. promises to effect change. US jobs are again lost to China, so the US again threatens to restrict outbound investment. China again The series of articles analyse potential futures for a rising China. A taxes imports. The talks are, again, ultimately called a success. host of concerns – ranging from land/water disputes and weapons capabilities to trade protectionism and currency manipulation – Companies from around the world continue to sell their leading directly affect the world’s perception of China, and vice versa. technologies for access to the world’s largest market, sacrificing Security and stability depend upon mutual trust between parties, long-term performance for short-term gains. Meanwhile, China’s which is why rising tensions, stronger rhetoric and displays of deals “provide short-term profits to one company and its share- might have politicians and businesspeople second-guessing holders but in the long run undermine the competitiveness of the forays into China. The final article outlines 10 ways to ameliorate other country's economy”. international relations with China, and touches on the outcomes of alternative actions. By instead praising and adopting China’s policies, hints Pearlstein, the US mught be able to recover and stand on its own. It may need The report is highly recommended reading for businesspeople to adopt similar industrial policies to level the playing field and considering a prolonged venture into China. Knowing the political compete with an aggressive China. and economic history can give a better understanding of the present climate, and what to expect in the near future.

22 FEB 2011 I Business Tianjin Business Chinese Lesson

Getting Started ⧪㑃⹌㯟 Volume 38

I am going to set up a new company. This is the start-up plan. 㸳ㅌ䄋⧪㑃䄜コ㾣⹌㯟 ᷍䎃㬨⨖⤞ェ⿏ ᱄ wǒ jiāngyào chénglì yījiā xīn gōngsī, zhèshì chūbù jìhuà.

We can move into our new ofﬁce after January ﬁrst. 䊣㦶䐏⽔㸳㗨㋪䄵⟂㆙ 㾣⭥⟍⹌㬳 ᱄ yī yuè yī rì zhīhòu wǒmen kěyǐ bānjìn xīn de bàngōngshì.

The new marketing manager will assist you in handling relevant matters. 㾣㦯⭥㬱⧂ ㈎㏎。㾎䑛㛄⪇㏎㼁⹹ 㬣䄬 ᱄ xīnrèn de shìchǎng jīnglǐ huì xiézhù nǐ chǔlǐ xiāngguān shìyí.

If you are not initially going to run your own factory, have you already begun to investigate factories? 㧈⺜㛄㻩⤜⫓㰄䊻㡑⤞ㅸⰯ ㈎䇋䓵゛⭥ rúguǒ nǐ xiān bù dǎsuàn zài qǐbù jiēduàn jīngyíng zìjǐ de

⹅⧈ ᷍㚨㗕䄲㈎㋋㬝⮘⥊ ⹅⧈㑬㕑ᷠ gōngchǎng, nàme yǐjīng kāishǐ diàochágōngchǎng le ma?

Yes, I've started. And I've found some talents for research and development. 㬨⭥㋋㬝㑬⤃㣳㸳䄲㈎䍳⭞㑬䄜㾊䁱ⳃ ⭥㦬⤦ ᱄ shì de, kāishǐ le. bìngqiě wǒ yǐjīng zhǎodàole yīxiē yánfā de réncái.

Artists are also needed to design the logos. ⿚㿉䄋䄜㾊㗡㭖㦬䊒㪉ェ㩭⢋ ᱄ hái xūyào yīxiē měishù rényuán shèjì shāngbiāo. You are right. So many details: logos, slogans, letterhead, business cards… 㬨➂᱄䇱⼤ⱁ⭥㻙ㅻ ᷛ㩭⢋᷍⢋䈐 ᷍㾦㵘 ᷍㘜㠍 ᱎᱎ shì ā. yǒu hǎoduō de xìjié: shāngbiāo, biāoyǔ, xìntóu, míngpiàn …

⧪㑃 FĶQJO̭ set up ㈎䇋 M̪QJ\̫QJ run/operate ⹌㯟 J̮QJV̪ company ⹅⧈ J̮QJFK̤QJ factory ⨖⤞ェ⿏ FK̲E̵M̭KX̥ start-up plan ⮘⥊ GL̥RFḲ investigate ⟂㆙ E̢QM̭Q move in 䁱ⳃ \̣QI̢ research and development ⟍⹌㬳 E̥QJ̮QJVK̭ ofﬁce 㦬⤦ U̧QF̣L talented person 㬱⧂ VK̭FK̤QJ market/marketing 㗡㭖㦬䊒 P̨LVK̵U̧Q\X̣Q artistic person/people ㈎㏎ M̪QJO̬ manager 㪉ェ VK̩M̭ design 㾎䑛 [Ļ]K̵ assist 㩭⢋ VK̢QJEL̢R logo ⪇㏎ FK̴O̬ handle 㻙ㅻ [̭MĻ detail 㼁⹹ [L̢QJJX̢Q relevant/correlation ⢋䈐 EL̢R\̴ slogan 㬣䄬 VK̭\̫ matters/arrangements 㾦㵘 [̭QW̯X letterhead 㡑⤞ㅸⰯ T̬E̵ML̦GX̥Q initial stage 㘜㠍 P̫QJSL̥Q business card

If you meet any problems in learning Chinese, please send us an email at [email protected] We’ll do our best to help you. See you next month.

FEB 2011 I Business Tianjin 23 Forging Ahead

Mr. Andrea Vanzini General Manager, Tenova-TiMEC Company, Ltd. Tianjin Dialogue

enova is a worldwide sup- point of view to facilitate both export for different industries, mainly the plier of advanced technolo- and domestic business. metal-making and mining industries. T gies, innovative products So all who fall into this category are and integrated services for the metal Many equipment manufacturing our customers. Renewable industries and mining industries. TiMEC Co. companies are focusing on China. like wind farm equipment are also a LTD. – Tenova’s production facility in How does your company sustain potential market for our fabrication. Tanggu Marine High-Tech Develop- growth in a competitive market? ment Area, Tianjin – specializes in One of the key factors to growing in What products does TiMEC offer? structural steel components, pipe to our market is the ability to manu- TiMEC's main field of activity is the pipe and heavy plate parts for Teno- facture high technology and quality design and fabrication of steel struc- va’s industrial equipment. TiMEC products at competitive costs. This can tures, machinery and equipment for: annually produces between 10,000 be reached only by the combination • Fully integrated EAF steel-making and 20,000 tons of equipment and of Tenova's worldwide continuously from iron and ferroalloy ores and components at the Tianjin fabrication developing technology and TiMEC's scrap up to liquid steel, center for its worldwide customers. high-quality production and manufac- • Thermal processing from reheating turing process optimization. to heat treatment of high quality flat Italian-born Andrea Vanzini, the and long products, General Manager of TiMEC, has been How has the recent growth in re- • Processing of metal strips from hot with the company since July 2009. He newable energies impacted your strip mill down to all final products, manages a workforce of over 250 and production? • Cold rolling mills and auxiliary oversees production activity. Tenova has several patented technolo- equipments for ferrous and non- gies which target energy-saving during ferrous flat strip products, What were the advantages of open- the metal-making and thermal proc- • Fully automated roll shops for hot ing your factory in Tianjin? esses. Hence, our fabrication focuses strip and cold mills, and Tianjin is one of the historical in- on energy-efficient equipment and • Mining, handling, storage, loading dustrial fabrication centers in North components. The recent awareness in and unloading of bulk materials from China, with good infrastructure and green environment and energy-saving mines to the end users of iron ore, coal investment incentives. This area can gives us a competitive edge, both to bauxite, and others. count on a large number of manu- Tenova and TiMEC. facturing companies, which gives us How does TiMEC contribute to the possibility to find on the market In addition, we have equipped our Tenova? highly skilled workers and good shop facilities with renewable energy TiMEC is the fabrication center managerial personnel, and to have a systems, such as solar panels for water of Tenova group in China net of selected suppliers suitable for heating. We also invested in Ground and represents the our needs. Source Heat Pumps (GSHP), which combination lower our energy consumption. of Teno- Plus, TiMEC is only few kilometres away from the third-largest Chinese Who are your target markets? port (Xingang) and Tianjin airport, We provide whole equipment, main a strategic location from a logistics machinery parts and key structures

FEB 2011 I Business Tianjin 00 va’s global technology with the Chinese What are your 2011 goals and reduction while maintaining our guar- industrial fabrication competence and visions for TiMEC in Tianjin? antee on quality and delivery. capacity. To make TiMEC the best world-class manufacturing and fabrication center Can you tell us about your involve- The main benefits that TiMEC can in China by increasing our competi- ment in the community and your grant to all the companies belonging tiveness and continuously pushing social responsibility policy? to the Tenova group are: for internal improvements. We are Tenova group contributes to environ- • the fabrication of products involving working toward greater output, better mental protection worldwide by sup- high levels of complexity and quality, quality and delivery, higher customer plying energy-saving industrial equip- • continuous feedback from fabrica- satisfaction and more efficient opera- ments that are manufactured in our tion to engineering for product/pro- tional and commercial results in the plant. TiMEC has built up a supplier duction optimization, new year. network in Hi-Tech Marine Economic • the fabrication of products contain- Development Area and set up partner- ing proprietary and protected technol- Our mission is to be ships with local qualified fabricators. ogy which is kept in house, TiMEC provides good employment op- • convenient alternatives in logistics a plant recognized portunities to staff coming from Tian- with the ability to fabricate key com- for Western quality jin, including Tanggu District. TiMEC’s ponents closer to end users, and standards at “almost” shop is OHSAS 18001 certified to en- • cost savings with respect to tradi- Chinese prices. sure proper attention to health, safety tional sources. and environmental issues.

Our mission is to be a plant recog- Throughout your working experi- How do you foresee the future for nized for Western quality standards at ence in the company, how would you TiMEC? “almost” Chinese prices. say the market has changed, and how With the development of China, does your company adjust to these TiMEC has already gained some How do you find and train the changes? strategic advantages globally. We will appropriate staff for company op- China is a rising nation in the eco- continue to improve ourselves and be erations? nomic world, and a huge potential ready for future challenges, to play a TiMEC is a young and dynamic market worldwide. There are many more critical role as top supplier of company. Due to the nature of the new opportunities, and there are metal and mining-related equipment company, we are in need of young changes day by day. So China is quite in the global market. An expansion engineers with good potential and a varied compared with Italy. plan is underway to increase both the strong passion for the industry. We plant scale and production volumes. give training-abroad opportunities Since the crisis that started in August Cost reduction by improving the to pass along the technical com- 2008, the layout has dramatically working process and efficiency will be petence in our group, and we are changed in quite a few industrial one of the focuses for continuous im- dedicated to career development of markets. Looking into mining and provement in this new year. our stuff. metallurgical industries, the recovery has been led by China and Far-East How have your experiences in What challenges face the manufac- countries instead of the United States Tianjin been thus far? turing industry on a local and global and Europe. I’ve enjoyed Tianjin in many ways: scale? friendly people, eye-opening culture, A severe market competition, contrib- Tenova had successfully targeted and and a safe society. Sometimes in the uted by both local and international developed new customers out of the evenings I enjoy playing guitar with suppliers; international trade risks, area as a business strategy. The market my friends at a local restaurant. such as the exchange rate fluctuations; competition is getting severe nowa- increasing labor costs; and raw materi- days, and we have to continuously (Photos provided by David Lee from TIMEC) als price volatility. improve especially in terms of cost

26 FEB 2011 I Business Tianjin

FEATURE STORY

Pedal Power Tianjin’s iconic bicycle maker needs to ride into export markets to survive By Mark Gao

he Flying Pigeon Project is Jeff paedic knowledge of Chinese two- Stracco has been pleasantly surprised Stracco's blog and a paean to wheelers, naturally showing up for by the amount of traffic the blog has Tone of China's most legendary the interview on his Flying Pigeon, generated. He's gotten mails from all brands. Once the wheels under China's an old-school roadster with arched the continents, from Ireland to In- socialist revolution, Tianjin’s legendary handlebars and a big bell he added dia. Curiosity and nostalgia prompt cycle maker Flying Pigeon has been for extra sonic power. most of the emails. "They miss the old supplanted and abandoned as locals are bikes." Some of his correspondents cajoled and goaded to buy cars. Stracco's quest for his two-wheelers want help with buying a batch of bicy- and the gadgets he's added all make cles. Others are seeking parts. Those A smartly designed website was born for good copy for the Flying Pigeon who write for advice have also come out of a passion for buying, fixing Project website. Most of his wheels to the right place. Stracco is knowl- and adapting Flying Pigeon bicycles, were picked up in second-hand shops edgeable about the history of Chinese as well as models of other brands like and markets: his favorite hangout is a bicycles and explains why there are so Yongjiu (Forever) and Hongqi (Red cluster of second-hand shops around many of them. "The Communists saw Flag). An auto engineer from New Beixinqiao subway stop in Dongcheng bicycles as very important vehicles Jersey, Stracco shared his encyclo- district in the heart of Beijing. and wanted to standardize them."

28 FEB 2011 I Business Tianjin FEATURE STORY

Hence a private Japanese-owned backyard (or on every footpath) as are better in small-town China. "Also bicycle maker in Tianjin in 1950 be- Flying Pigeon and similar brands the company does well enough from came State-owned Flying Pigeon, and have fallen, perhaps permanently, selling parts because there are so blueprints for bicycles were brought from local grace. Proof are the bicycle many of the bicycles already out there in to put China's masses on the road. parks across China turning into yards and they need maintaining." To cut costs and crank out the ma- of abandoned, rusting metal. chines quickly, Flying Pigeon, Forever There's also the laowai factor. Flying and other brands adapted the same That's not new to Stracco, being from Pigeon has more cachet among retro- standard. "An upshot that we still the east coast of the US, the garden loving foreigners for whom the arch- benefit from is the street-side bike state of Bruce Springsteen whose ing handlebars and gold-on-black let- doctors. These guys have to stock songs celebrate cars, chrome and Ca- tering hark back to a less westernised very few parts to keep the bike fleet dillacs. He nonetheless frowns with China. Long identified as the mark of running. If they had to stock hun- sadness about his Chinese workmates' a laowai – the over-enthused China dreds of parts...it would never work." low view of life on two wheels. "It's not arrival who wants to live in a hutong, a fashionable bike, they say 'a bike is pedal to work and eat jiaozi for din- Built to last, the Flying Pigeon was the life bad enough but a Flying Pigeon...give ner – the Flying Pigeon has fans too in goal of families in Maoist China. "You typi- me a break!'" Los Angeles and Paris, both served by cally waited for months for one," says Strac- websites brim-full with sales and rides. co, who reels off Deng Xiaoping's promise Flying Pigeon won't be going out of a "Flying Pigeon in every home." of business anytime soon. Stracco Aside from knowing the minutiae recalls an interview he read with the of bike parts and pieces, Stracco also Today of course it's a Buick in every company's president who said sales throws an eye to the macro-economic

FEB 2011 I Business Tianjin 29 FEATURE STORY

future for China's bicycles. "Plenty of road space for bicycles. Also worth ropean mayors are restricting cars local bicycle makers have gone out of noting is a local ability to modern- in favour of bicycle lanes – creating business. Indeed most of the legen- ize and innovate: Taiwanese bicycle market share for bicycle sellers like dary old marques have either rusted makers, who do their manufacturing Rocamorra Trias. away or handed their manufacturing on the mainland, have subsumed and over to a few giant factories like Tole- improved on iconic bicycles like Brit- How did you discover Flying ka (Tianjin Ocean Bicycle Industry ish Raleigh and Sturmey Archer – Pigeon, and why did you de- Group), which from sheer economies may they be about to do the same for cide to import these bicycles to of scale still make money. Others Flying Pigeon? Spain? have gone for export markets." About two months after returning Certainly, if the company's bicycles from Beijing in 2006, I was reading India, still less motorized than China, can get their marketing right, there's an article from La Vanguardia in also makes bikes in numbers, even surely a place for them in the plans of which the correspondent in Beijing cheaper than China. "Now the Africa western cities coaxing citizens back was talking about “the big traffic jams market is starting to go to Indian on bicycles. Sadly, Stracco foresees of that city” and that “it was a pity but brands like Hero." Which all suggests India's cycling ways going the way the cars were taking the place of the an uncertain future for old wheels of China’s: right now, there aren’t the beautiful Flying Pigeons”. I started to like Flying Pigeon. roads (or buying power) for cars: "But look for more info about this brand. I in 10 years' time demand will fall off found out that it was a Chinese treas- But there's hope in China, judging by a cliff." Cyclists of the world, unite. ure, a legendary brand. In Spain there the promises of some of the country's was a very small offering of rod-pull smog-maddened mayors to reclaim While visiting Tiananmen Square brake bicycles. So all of these together in May of 2006, Antonio Rocamora pushed me to import them. Trias fell in love with China’s traditional Flying Pigeon bicycles. Wait- Has there been increased ing for the flag-raising ceremony at demand for Flying Pigeon in the Square, his eye was caught by Spain? bicycles rolling by the Forbidden We launched them in December 2007, City, recalls the Barcelona native. in the AutoRetro International Fair in The photos he took of “those beauti- Barcelona, after having to go through ful cycles” are on his website today, the homologation [safety standards advertising the Flying Pigeon cycles testing] process for getting the permit he imports and sells in Spain and to import them. The welcome of the other European countries. Ironi- clients was quite good, and nowadays cally, as Beijingers look increasingly we are well-known in the small world condescendingly at the bicycle, Eu- of classic bicycle fans. However, there

30 FEB 2011 I Business Tianjin FEATURE STORY

is always a fight between those defend- ally special. In fact, we have also sold Has there been an increase in ing the European old brands against the bicycles in several other coun- cycling in Spain, and is this the Asian brands, but this happens tries, not only in Spain, which means related to environmental/eco- also with other goods and I guess it that it is really appreciated. nomic reasons? will be always there. Yes, everyday cycling is becoming How many bicycles do you plan more and more popular, but we Who is your typical customer? to sell per year? are still far away from other coun- The typical customer is a middle- The costs in origin are growing very tries from north Europe like, for aged man or woman, most of them fast due to RMB increases, labor example, Germany or Denmark. reminded of their old bicycles when cost increases and also steel price in- According with the last big report they see the Flying Pigeons. It is also creases. Apart from that, we are still published in July 2010, Barómetro very popular among younger consum- being punished by the unfair [EU] de la Bicicleta en España, about 2.5 ers who want to ride something differ- antidumping tax. So everyday FPs million people in Spain ride a bike ent, who will give up performance in are more and more expensive while every day. Little by little, car drivers favour of elegance and comfort. our markets are in the midst of a big are getting used to sharing the road economic crisis, so I really don’t have with cyclists, and everyday there are What is the appeal of these bi- any idea how sales will be in the next more roads only for bicycles. This is cycles to Spanish customers? future. But in any case, our market is the main reason for the increase in The elegance and natural beauty of not very big since most of the riders cyclists, together with the launching their designs. I’ve seen some models look for good performance in front of of bicycle public services in most of that look very similar, but FP have a other values offered by FP like exclu- the main cities. sum of small details that make it re- sivity, elegance and comfort.

What’s in a frame?

Mass makers of bicycles, such as Flying Pigeon, prefer to weld their machines together as pieces of steel, a durable if heavy material. More expensive bicycles, particularly sports cycles, are made of more expensive carbon, chosen for its malleability and sleek appearance (carbon frames don’t have to be welded), as well as aluminium. Light and durable, titanium has lately also emerged as a favourite material of bicycle makers.

While sports cycle makers like carbon for its smooth, beautiful designs, carbon is brittle. Quality road bicycles are not cheap. Spending on a bike varies, but you’ll need to put down 5,000 CNY to get anything worthwhile. Serious cyclists put down 50,000 EUR – as in motors it’s all about brands (Auto makers like Ferrari also make bikes).

FEB 2011 I Business Tianjin 31 Policy Explanation

OPENING OF LOW-ALTITUDE AIRSPACE FOR GENERAL AVIATION

Simon Bai Winners Law Firm

Overview of the GA industry in China behind the US, Europe and Australia, where General aviation usually refers to all aviation the GA industry is mature. Estimates put the activities other than scheduled airlines and mili- number of GA aircraft at less than 1000 in tary flight. It includes business aviation, medical China, while the number in the US exceeds evacuation, exploration, aerial photography, 220,000. crop dusting and forestry, firefighting and rainmaking, news gathering, rescue missions, off- Connecting remote and rural areas to the cit- shore exploration, public security, pilot training, ies, GA aircraft are a very important element sport and private aviation. in the overall aviation transportation infrastructure. GA aircraft usually fly at low altitude, which usually refers to airspace below 3,000 meters. GA aircraft’s uniquely high mobility and ease China's low-altitude airspace is tightly con- of landing and takeoff can help to minimize trolled by the Chinese Air Force and the Civil the loss of life and property when disaster Aviation Administration of China (CAAC, occurs. We can imagine that if China had a now under the Ministry of Transportation). more developed GA industry than it does now, the relief efforts during Sichuan and Today China’s GA industry is relatively small Yushu earthquakes, as well as during flood compared to commercial aviation and is far disasters each year, would have been much

32 FEB 2011 I Business Tianjin Policy Explanation

easier and more effective. GA aircraft played an important role during and after Hurricane Katrina in the US and in the tsunami disaster in the Indian Ocean.

The GA industry has not been high on China’s agenda over the past decades. Obtaining clearance for GA aircraft to operate a specific flight may take days, or even weeks, although improvement is being made. Yet the delay in developing general aviation has affected the social and economic development of China.

GA industry regulation in China Since 1949, airspace in China has been under the control of the People's Liberation Army. Merged into the newly formed Ministry of Transport in 2008, CAAC is charged with over- seeing civil aviation operators and commercial airline flights.

There are hundreds of rules and regulations with regards to aviation and GA activities in China, many of which are outdated, irrelevant, and need to be consolidated, updated and ultimately replaced by a unified Aviation Law. It is reported that the first draft of such a law has been completed by CAAC. Though a positive development, it remains unclear how long it will take before the draft could be proposed to the legislature – China People’s Congress – let alone get approval.

The major legislations in relation to GA are: Civil Aviation Law of the People’s Re- public of China (1996), Basic Rules of the People’s Republic of China on Flights (2001), Regulation on the Con- trol of General Aviation Flight (2003, CGA Regulation) and The Provisions on the Administration of Business Licensing for General Aviation (2007, the Provisions).

According to CGA Regulation, Gen- eral Aviation refers to the aviation ac-

FEB 2011 I Business Tianjin 33 Policy Explanation

tivities other than the military, police, makes any application for GA flight According to the Guideline, the customs anti-smuggling flights and a nightmare of complicated, murky country's low-altitude airspace will public air transport fligh. It includes and time-consuming processes bur- be divided into three sections: areas the flights for industrial, agricultural, dened with red tape and bureaucracy. under control, areas under surveil- forestry, fishery, mining, architectural As a result, many private GA flights lance, and areas where aircraft can fly operations and the flight activities for recently ran the risk of being consid- freely after reporting their flight plans medical, rescue, relief, meteorologi- ered illegal by the government. GA in advance. The division of airspace cal observation, ocean monitoring, flight laws have to be reformed and categories can ensure that the differ- scientific research and experiment, updated in order to meet the rising ent demands of public transportation remote sense mapping, educational demand from the public as well as to aviation, general aviation, and mili- training, cultural and sports, tour- keep pace with the general economic tary aviation can be met by assigning ism and visiting purposes. Any entity conditions of today’s China. appropriate airspaces for different or individual undertaking GA flight purposes. activities shall, if using an airport flight airspace, air route or airline, file China's vast airspace The reforms in those existing areas will an application to the flight control is opening up to private be expanded in 2011, and to the entire department, i.e. CAAC. CGA Regu- aviation. The sector has country within the next few years. lation, for the first time, defines the concept of temporary flight airspace, been growing at a dou- Such developments are interpreted by which is distinct from airport flight ble-digit pace since 2000. many in the industry as a historical airspace, air route or airline. This is opportunity for aviation businesses in particularly relevant to GA flights China, and for international players. which usually operate in tempo- In the US, the GA industry contributes rary flight routes. Temporary flight Take-off of a blue sky economy? 150 billion USD to the economy and airspace needs to be approved by Slowly but surely, China's vast air- provides 1.5 million jobs. The policy CAAC: application shall be made space is opening up to private avia- shift may unleash pent-up demand for 7 days in advance, supported by a tion. The sector has been growing at a private air services and create a market flight plan detailing such informa- double-digit pace since 2000. worth 10 billion USD, according to a tion as purpose of flight, type of report by the US-China Aviation Co- aircraft, name and call number of In November 2010, an unprecedented operation Program. China certainly captain, and number of flight crew. Guideline jointly issued by the State represents a large frontier of untapped Council and the Central Military potential for the GA industry. The Provisions specifies that CAAC Commission indicated China will is responsible for nationwide unified gradually open part of its low-altitude Nonetheless, it remains unclear when administration of licensing for general airspace – altitudes lower than 1,000 detailed specific implementing rules aviation, which is divided into three meters – for GA flights, or for the use of the Guideline will be issued. The categories: Class A, Class B and Class of aircraft for purposes other than Guideline, which fails to elaborate C, depending on the nature of GA those of airlines, the military and the on any substance of possible reform activities. For example land petroleum police. This marks a major policy measures, is simply too vague for services, marine petroleum services, change toward an open sky program anyone to predict when China will medical rescue, rainmaking, business that is yet to be fully sketched out. usher in an era of blue sky boom. flight, general aviation charter flights, Some skeptical analysts even point flight taxi, and trainings for private or The Guideline calls for further re- out that airspace will continue to be commercial pilot licenses all fall into forms to be implemented for the managed by the military for any fore- Class A. The differentiation suggests ongoing trial of low-altitude air- seeable future, which defies any calls different capitalization requirements space program in two flight control for transparent regulation. in application of business license. For zones: Shenyang, capital of Liaoning example, a Class A license requires a province, and Guangzhou, capital of registered capital of 50 million CNY. Guangdong province. In the mean- WINNERS has time, Beijing, Lanzhou and three been recognized The current laws and regulations in other flight-control zones will be consecutively as "Tianjin Firm of the Year" by two international legal relation to GA activities in general opened up to low-altitude flights as a journals: Asia Legal Business from 2008-2010, and set too many restrictions and thus pilot program. by China Law & Practice from 2009-2010.

34 FEB 2011 I Business Tianjin

Legal Assistance

Tax rules for mergers & acquisitions

and new implementation rules (Part I)

Diego D'Alma

Robbie Chen

by attorneys Diego D'Alma and Robbie Chen Garrigues Shanghai

ith the gradual recovery of that, under certain circumstances, the gains the economy, M&A transac- arising in the transaction could be exempted. tions are being considered by many taxpayers in China Nonetheless, after promulgation of the new toW expand their current business, sell inef- EIT law, taxpayers doubted whether the tax ficient assets or adjust the current corporate treatment rules for corporate restructurings structure. When structuring such deals, under Circular 71 were still applicable un- enterprises should not only take into ac- der the new EIT law. Various practices were count the legal requirements and procedures subsequently followed by different local tax involved in the M&A transaction, but also authorities due to the lack of clarification. be aware of the tax implications arising from the contemplated transaction. In order to provide a unified guideline of the tax treatment under the new EIT law in As a general principle of Enterprise Income respect of corporate restructurings, the No- Tax (EIT), any gain derived by an enterprise tice of Certain Issues Regarding the Enterprise engaged in transferring its assets, equities or Income Tax Treatment of Enterprise Reor- engaged in a merger or split in China should ganizations (Caishui [2009] No.59, “Circular be taxable in China. This principle is clearly 59”) was issued jointly by the State Admin- a predicament for enterprises when defining istration of Taxation (SAT) and the Ministry their restructuring transactions. Guoshuifa of Finance (MOF) in April 2009. [1997] 71 (Circular 71), however, provided certain reliefs for foreign invested enterprises Subsequent to Circular 59, the SAT is- engaged in such corporate restructurings so sued the Administrative Rules Regarding

36 FEB 2011 I Business Tianjin Legal Assistance

the Enterprise Income Tax Treat- General tax treatment Special tax treatment for domestic ment of Enterprise Reorganizations In principle, Circular 59 requires transactions (Public Announcement No.4 of that, as a general rule, capital gains 2010, “Public Announcement”), arising from various forms of cor- If the equity or asset transaction which took effect retroactively porate restructurings – e.g. debt takes place entirely within China – from 1 January 2010, providing restructuring, equity acquisition, e.g. the subject of the transaction is both clarifications on areas that asset acquisition, merger and split – in China and the involved parties are remained uncertain in Circular 59 should be recognized immediately all located in China – the transac- and guidelines on the filing and by taxpayers and, thus, be subject to tion might be regarded as a domestic documentation requirements. EIT in China. transaction. For domestic transactions, in order to be qualified for the In this article, we will introduce the Special tax treatment special tax treatment, ALL of the fol- main content of Circular 59 (this Despite the general tax treatment, lowing conditions must be satisfied month) and the Public Announce- Circular 59 provides a preferential by taxpayers: ment (next month), and provide our tax treatment for corporate restruc- comments thereof. turings, under which the capital • The corporate restructuring should Key points of Circular 59 gain arising from the restructuring have a reasonable business purpose Circular 59 provides the general tax could be deferred at the discretion of and the main purpose of the re- treatment for corporate restructur- the restructuring parties in certain structuring is not for tax reduction, ings and also introduces a more fa- circumstances. In other words, if avoidance or postponement of tax vorable special tax treatment, which certain conditions are satisfied, the payment; is actually a tax deferral mechanism, restructuring parties could choose to for taxpayers. defer the impact of the taxation on • The acquired, merged or spun- capital gain, which is always a hin- off assets or equity should reach a drance for corporate restructuring. threshold of 75% of the total equity According to Circular 59, the condi- of the target company; tions for the special tax treatment differ for domestic and cross-border • No changes in the original actual transactions. business activities within 12 consecutive months after the restructuring;

• The deal consideration should mainly comprise of equity, and the

FEB 2011 I Business Tianjin 37 Legal Assistance

transferor will have to be recognized over a 10-year period.

• Others: Other qualified cross- border reorganization authorized by the MOF and SAT.

Compliance requirement for special tax treatment To elect for the special restructuring treatment, both the transferor and the transferee have to submit relevant supporting documents to tax authorities along with the EIT annual filings of the year when such restructuring is concluded. Failure to properly file will result in the dis- allowance of special tax treatment.

Doubts left by Circular 59 Although Circular 59 established the tax treatment for corporate restructurings and provided lenient treat- ments for taxpayers in terms of the special tax treatment, it sill left many uncertainties and questions, such as:

• What is the effective date of the restructuring?

• Should parties involved in the restructuring all adopt the general or special tax treatment? equity payment has to exceed 85% of a) The PRC capital gains withhold- • How can one demonstrate that the the total deal consideration; and ing tax rate for the transferee post- restructuring has reasonable busi- transaction is the same as the rate ness purposes? • The original shareholder should for the transferor; and commit not to transfer the equity re- • What documentation is required ceived within 12 consecutive months b) The transferor will not transfer for applying for the special tax treat- after the corporate restructuring. the shares of its 100%-owned non- ment? resident subsidiary within three Special tax treatment for cross-border years post-transaction. These doubts were addressed in the transactions Public Announcement, which will be • Foreign-to-domestic: transfer of explained in Part II (next month). The special tax treatment is also avail- a PRC company stock from a non- able to cross-border corporate restruc- resident company to its 100%-owned turing under Circular 59. However, PRC subsidiary. Garrigues has over 13 it is limited to the following types of years of experience in advising companies cross-border corporate restructuring: • Outbound transfer of assets/eq- in their investments in China. The team of • Foreign-to-foreign: transfer of a uity: transfer by a PRC company of experienced Western and PRC company stock from a non- its assets/equity to its 100%-owned Chinese professionals at Garrigues Shanghai provides legal advice to foreign companies on a wide range resident company to its 100%-owned non-resident subsidiary in exchange of issues such as incorporation of companies and negotiation of joint ventures, commercial contracting, non-resident subsidiary can opt to for the subsidiary's shares would be M&A, tax, real estate, employment, intellectual receive a special tax treatment if: allowed, but any gain realized by the property, arbitration and infrastructures, as well as to Chinese companies with investments abroad.

38 FEB 2011 I Business Tianjin HR Outsourcing gain or pain? HR

f you ask US employees what HR outsourcing (HRO) can be de- of development of HRO options, labor they identify as their biggest fined as “placing responsibility for market characteristics, the degree of fear related to their position, various or all elements of the HR sophistication of the HR function, and two out of three would re- function with a third-party provider” employment regulations. However, Ispond, “Having my job outsourced (Turnbull, 2002). While some HR the major reasons for the low uptake overseas”. Even Hollywood has taken outsourcing firms are generalist, oth- in Asian countries seem to be the per- up the matter in a couple of recent ers provide specific services by spe- ceived lack of quality and poor com- movies, including “Up in the Air” cialists/experts (e.g. compensation; petency level of consultants, as well as with George Clooney (he works for or recruitment). The biggest users of limited options. The loss of manage- an outsourcing provider that fires HRO companies are multinationals, ment control and poor data security employees and presents compensa- but a growing number of small and are other serious reasons to refrain tion packages), and “Outsourced” midsize companies are hopping on from using third-party contracts. (the main character is asked to train the wagon to relieve themselves of his outsourced Indian successor). HR responsibilities. A survey from Each year, the top 30 countries for While IT, manufacturing and pro- 2004 shows that back then, already outsourcing services are identified duction have a tradition of being 83% of Fortune 500 companies were by US research organization Gartner outsourced to a cheap-labor country, using a third party to hand over Inc. While China and India were the recently human resources has also part of their functions. Outsourcing top leaders in 2009, market changes seen increased pressure by well-run, therefore has become an important are likely to be seen in the near future reliable outsourcing companies. Rea- strategy to leverage organizations’ with the other countries like Brazil, sons for outsourcing your HR func- skill and resources to achieve greater Vietnam and Russia wanting their tions are plenty: save costs; focus competitiveness. share. Lately, due to talks about mini- on core business; improve quality mum wage increases and labor law of service; access larger talent pool, HRO is not used in the same manner changes, China’s formerly popular external expertise, experience and in different parts of the world. It is east coast is looking less profitable for knowledge; and organizational re- much more common in Europe and multinational companies. Most likely structuring. But is outsourcing really the US than in Asian countries. Dif- the trend is going westward, either to the blessing it has been praised to be ferences may arise from the size of inland China, or beyond its borders, for the last few years? businesses, cultural norms, the extent especially with the outlook of the Chi- nese Yuan as a free-floating currency.

Generally, only 3% of organizations outsource their entire HR department. Single-process outsourcing is therefore viewed to be the segment of HRO with the predicted biggest growth in the coming years. Outsourcing users in Asia are mostly multinational companies, and the most commonly outsourced function is recruitment. MNCs can benefit from specialists and their well-established HR services by relying on local expertise and drawing from local labor law knowledge instead of having to develop this core compe- tency internally. The HRO market in China was estimated to be worth 5 billion USD by the end of 2009, while the Philippines raked up 11 billion USD.

Advantages and disadvantages Other advantages of HRO can be seen in the availability of technology that does not have to be developed in-house, the possibility to expand in new markets through local agents, Job Postings Marketing Manager 㧹䫔㒣⧚ Code: MM110201

JOB DESCRIPTION: • Develop strategy for growth and expansion of current business • Maintain and develop relationships with key customers • Coordinate and execute planned events • Lead a marketing/sales team • Check sales proposals, presentations and contracts, negotiate and close contract with clients • Prepare monthly report of activities and goals

WHO WE ARE LOOKING FOR: • Bachelor's degree or above, major in marketing or business administration • 5 years of marketing/sales experience • Ability to meet multiple objectives in an entrepreneurial environment with little supervision • Negotiation skills • Good interpersonal skills INTERNATIONAL • Team-leading experience • Proficiency in written and spoken English ORGANISATIONS Human Resource Supervisor BASED IN TIANJIN Ҏ࡯䌘⑤Џㅵ Code: HRS110202

HAVE THE FOLLOWING JOB DESCRIPTION: • Establish and implement HR policies and projects OPEN POSITIONS • Manage the recruitment process • Communicate and coordinate internal and external communication ೼⋹䎼೑݀ৌ᢯㘬ҹϟ催㑻Ҏਬ • Develop a training program that supports the needs of the business and enhances the performance of individuals • Organize and manage training activities, develop and improve the content of training courses, manage and file training results, ensure the effect of training courses on the improvement of employees’ actual working ability • Develop relationships with agency and arbitration bureau • Coordinate with other departments WHO WE ARE LOOKING FOR: Human Resources Supervisor • Comprehensive knowledge of HR policies and practices • Strong mentoring and counseling skills Ҏ࡯䌘⑤Џㅵ Finance Manager • At least 3 years of experience in a similar position 䋶ࡵ㒣⧚ • Patient, good at communicating with people at all levels • Degree in Human Resources, Business Administration or related discipline • Works well under high pressure • Good spoken and written Mandarin and English Finance Manager 䋶ࡵ㒣⧚

Code: FM110203 Marketing Manager JOB DESCRIPTION: 㧹䫔㒣⧚ Web Designer • Responsible for accounting department 㔥キ䆒䅵ᏜӮ䅵 • Prepare and analyze periodic financial reports • Coordinate monthly closing and budget control • Handle tax declarations • Support all CFO responsibilities • Manage cash flow WHO WE ARE LOOKING FOR: • Education in Finance • Several years of experience in the financial field • Highly organized • A fine eye for details • Good spoken and written English • Team player, sense of responsibility

Web Designer 㔥キ䆒䅵Ꮬ

Code: WD110204 JOB DESCRIPTION: • Create design prototypes, including graphic design, site navigation, and layout of content, for company websites • Build websites using technologies that conform to international standards, and ensure that they are universally accessible • Maintain and update existing websites when requested by clients If you are interested in any of these positions • Provide training on maintenance and update procedures to clients who choose to take Please send your resume and Code No. to charge of their own websites [email protected] WHO WE ARE LOOKING FOR: • Bachelor’s degree in graphic design or other discipline related to the primary responsibilities • At least 2 years of web design experience, of which a minimum of 1 year producing table-less, XHTML, standards-compliant cross-browser, and gracefully-degrading code, and a minimum of 1 year of experience with DOM scripting and Movable Type • Knowledge of JavaScript, CSS, PHP and dynamic HTML; experience with Adobe Flash, Dreamweaver, and Photoshop • Superior knowledge of current web-design trends and techniques, a strong online portfolio displaying user-centered design, and experience with web database solutions definite assets HR

and a certain flexibility depending flexibility to change the procedures if number of applicants, who fear being on workload and demand. But most need be, and to exit the contract, be- the first in line for a new “round of importantly, it enables the company forehand. Hidden costs like legal costs outsourcing activity”. to stay focused on the core business, involved in contract management and and focus its energy and develop- lost time during the initiation period So, when should you outsource your ment there. should be kept in mind. HR function? Of course, this depends on what Regardless of all these desired bene- your main aim and motivation is. fits, the decision to outsource any HR You should ask yourself what aspects function should not be taken lightly. Major reasons for low of the existing HR function are un- While you outsource the process to HR outsourcing uptake satisfactory. If you view your HR an external partner, the finished serv- department as an integrative part of ice or end result will still be your rein Asian countries: your organization that sets you apart sponsibility. Therefore, you lose con- perceived lack of qual- from your competitors, it is better to trol over part of the chain, which can ity and poor competen- centralize the function in-house in a be vital when organizational changes cy level of consultants. productive and efficient way. As an appear or future business strategies alternative to third-party providers, change directions. The standardized you can create a shared service cent- process agreed to in a long-term er that acts as an internal hub for the contract might then not actually be delivery of business-focused HR ad- favorable and create more conflicts One aspect not often considered is ministration. Some companies have and discussions in the end. Before that HRO results in local lay-offs, also stepped forward with employee entering contractual agreements, the crushing the company’s reputation on self-service systems (ESS) that ena- organizational preferences and cur- site. In the US, an estimated 3.3 mil- ble non-HR employees to undertake rent and future business profile need lion jobs will be laid off to India and HR tasks by themselves. For other to be clarified. China by 2015. Such action has led companies, the HRO world has de- to a higher dissatisfaction amongst veloped into a mature industry, and Outsourcing HR involves outsourcing remaining staff and created insecu- providers with excellent reputation sensitive information that may leak, rity, which in turn slow productiv- can be found in almost any corner of and potentially create legal issues. ity. It may also result in a decreased the world. Furthermore, you create a high de- pendency on a third-party provider by A word of warning, though: “Don’t outsourcing HR functions. The more outsource something that you don’t you outsource, the higher the risk for understand yourself, or that is bro- the outsourcing provider to change ken; fix it, understand it, before you the rules (making higher payment hand it over to somebody else. They demands, for example). So be sure to will not solve the problem for you!” draw up a contract that gives room for

42 FEB 2011 I Business Tianjin IPR

Managing IP as a business asset

or most businesses, intangible assets advantage in relation to the sale or purchase represent more than 50% of the value of a business. Fof the enterprise. The most significant group of intangible assets are those protected A good IP management strategy enhances Philippe Healey, by intellectual property, such as inventions, the ability of the business to raise funding by Project Manager, designs and brands. Since they form such a managing the issues that aff ect valuations of China IPR SME large part of the overall value, their manage- IP assets. Helpdesk ment as financial assets is important to the success of the business. Understanding the fi nancial value of specifi c IP assets to the business is of particular im- Businesses that actively manage their IP as a portance when moving into a new market – fi nancial asset outperform their peers by up product or geographic – because there will be to 30%. Th ey do so by maximising the eff ec- new risks as well as opportunities. tiveness of investment in the business, driving performance in areas that produce the China presents some special challenges and best return, and managing operational risk. practical steps to protect the value of IP as- Th ey may also use their IP assets as security sets, which are often as important as legal to obtain various forms of funding. More- ones. Th is article aims to explain how IP as- over, there are opportunities to gain strategic sets matter from a financial perspective and

FEB 2011 I Business Tianjin 43 IPR

to assess how to manage them to the mortgages; a variety of fund-raising patent mortgage is one form of lend- greatest business advantage. structures are readily available from ing against patents or other IP assets. Chinese financial institutions as well The significant difference between Managing return on investment and as European ones. this and security under a charge is improving performance that a mortgage will usually transfer Where there are several IP assets, Fund-raising options include: title to the lender immediately on de- knowing the comparative return on 1. Providing security for existing fault. It is a well-established form of investment (ROI) of each one allows bank borrowing. It is not unusual for lending by some Chinese banks who the overall business strategy to focus a company’s IP to be covered by the may have more familiarity with it on those that will give the best return. general charge taken by its bank but at than their international counterparts; It also means that the risk to the vi- a nominal or nil value. Valuing it sepa- ability of the business, if certain IP rately often increases the value of the 4. Creating a vehicle for raising rights are lost, can be assessed. This is security covered by the charge. This can equity. If IP assets are owned by a important in deciding how to struc- be used either to increase the borrow- company created for that purpose ture your commercial relationships ing or to reduce the interest charged and generate a royalty income, then and operations in China. on it. If the IP assets are to be used for shares can be issued in that company another form of security it will be nec- to raise new equity finance; As with tangible assets, measuring the essary to get them released from any ROI of IP requires knowledge of its bank charge. This will be easier if they 5. Securitisation (bond issue). An monetary value and of the amount of are included at only a nominal value; alternative to issuing shares in an IP investment made in it over a given pe- holding company is to use the com- riod. Ascertaining individual IP assets 2. Providing security for new debt. pany’s assets as security for a bond is- consists of identifying the technology This can be to support new bank bor- sue in the market. This is more likely and brand in each separate product rowing for cashflow or for longer-term to be an attractive option for medi- and any brand that is used for more debt to fund investment in new prod- um-sized businesses with brands or than one product. ucts or markets. Lending against IP technology that are reasonably well- assets is a specialised form of lending known in their own market-place; Providing security for financing usually carried out by dedicated teams IP assets can be used to provide se- within larger lending organisations or 6. Secure assets to benefit a third curity for a wide range of methods by smaller specialist lending houses; party. A further use of an IP hold- of raising funds. China has been at ing company is to provide security to the forefront of the use of patent 3. Patent (and other IP) mortgage. A benefit a third party such as the com-

44 FEB 2011 I Business Tianjin IPR

more significant than enforcement against infringers. Once a business is established, enforcement is likely to take a higher priority. When it seeks to increase market share compared with its competitors, then the focus may well be on defending litigation.

It is essential that the management of the company is involved in drawing up the IP strategy and understands how it will support the business objectives. The key people to be engaged are the chief executive, finance director, tax advisor, general counsel, chief technology officer and chief operating officer.

The IP strategy should be reviewed whenever the business strategy changes, and at least once a year.

Conclusion With a strategic IP management ap- pany’s pension fund or a new venture Drawing up an IP strategy proach and the appropriate identifica- in the same group of companies. A well-managed IP strategy makes a tion, valuation and protection of your significant difference to the valuation IP assets, you can use your intangible IP assets are often undervalued in of a company’s IP assets. A valuer will assets to your advantage, providing company accounts. Identifying and assess the economic impact of the IP security for financing and improving valuing them can result in a worth- on the company’s business. Although your company’s overall performance. while increase in the value that exist- there are several different valuation To best use IP assets as business tools, ing lenders will put on them as secu- methodologies, all take account of the Helpdesk experts strongly recom- rity for current lending. This can be risk to the IP. A realistic IP strategy mend that SMEs also ensure their very useful in a credit crunch. that is documented and demonstrates key IP assets are protected by regis- effective support for the overall busi- tration, adequately prevent IP from The acceptability of IP assets for ness strategy will always enhance the being exposed by current and former fund-raising will depend to a consid- ultimate valuation figure for the IP. employees and business partners, and erable extent on what valuation is put structure IP ownership that is most on them and whether they are owned The IP strategy reinforces the overall appropriate for any planned use as by an appropriate entity. business strategy and will change as security for raising finance. the business moves through differ- There are several considerations that ent stages of its development. It will impact valuation, including whether often also differ from one market to the IP assets are clearly identified, another, because the business will be consolidated in one ownership at different stages of its lifecycle in The China IPR SME Helpdesk is a European Com- rather than dispersed, protected each. The balance of which IP rights mission funded project that provides free, practical, from insolvency risks associated with are most useful and so should get pri- business advice relating to China IPR to European SMEs. To learn about any aspect of intellectual operational activities, protected by ority in investment and management property rights in China, visit our online portal at appropriate registrations, subject to a time will vary accordingly. www.china-iprhelpdesk.eu. For free expert advice on China IPR for your business, e-mail your ques- structured enforcement programme, tions to: [email protected]. You will licensed to group businesses and/or For example, in establishing a new receive a reply from one of the Helpdesk experts within seven working days. The China IPR SME third parties to generate income, and market, registration of trademarks Helpdesk is jointly implemented by DEVELOPMENT being used to increase the profitabil- and patents, designs or copyright Solutions and the European Union Chamber of Commerce in China (EUCCC). ity of the business. to protect the product is likely to be

FEB 2011 I Business Tianjin 45 Real Estate

Residential Transactions Rebound Tianjin Q4 2010 report

Jason Gao General Manager DTZ Tianjin

Economic overview (16.04 USD) per sqm per month, an increase According to the Tianjin Statistics Bureau, the of 4.99% quarter on quarter. city’s economy continued to grow rapidly in the first three quarters of 2010. Tianjin’s GDP A delay in the launch of Tianjin World Financial reached 644.86 billion CNY (96.97b USD), an Centre resulted in no new supply in the fourth increase of 17.9% year-on-year (y-o-y). quarter. Existing projects absorbed more tenants, dropping the city’s overall availability Investment in fixed assets in the first three ratio from 16.3% in the Q3 to 15.0%. quarters of 2010 increased 32.0% y-o-y to 462.35 billion CNY (69.53b USD). Notably, Meanwhile, the net absorption of grade A real estate investment increased by 21.9% y-o-y office space was 9,277sqm, down significantly to 62.97 billion CNY (9.47b CNY). compared to the previous quarter. Most of the office leasing transactions remained stable Per capita disposable income has grown in Q4. Projects such as Tianjin IFC, Global steadily to reach 17,015 CNY (2,559 USD) in Centre and the Exchange II had relatively high the first three quarters of 2010, a y-o-y increase absorption in the quarter. of 12.4%. Stabilized investment activity caused office Offices prices to rise 3.2%, according to the DTZ In Q4 2010, office rents witnessed a office index, to 121.9% of 2006 levels (see continuous upward trend to reach 106.66 CNY graph). It is expected that office prices

46 FEB 2011 I Business Tianjin Real Estate

and rents will grow at a faster pace as office quality Recent transactions include Schneider Logistics continues to upgrade and occupier demand continues to (Tianjin) Co., Ltd. leasing 1,052sqm and Eisai (China) improve. Pharmaceutical Co., Ltd. leasing 380sqm in Maigou Times Square, High Chemical International Trading Co., Ltd. leasing 300sqm in Regent Plaza, and China International Capital Corporation Ltd leasing 700sqm in Tianjin Centre.

Retail The retail occupier market has been sustained by robust consumer confidence. From January to October of 2010, total consumer goods sales in Tianjin increased by 19.3% y-o-y, reaching 240.84 billion CNY (36.22b USD).

On 4 December, Tianjin Department Store, with an 84-year-old history, officially reopened after renovations. The 60,000sqm of retail space now In the near future, several high quality office projects house a better mix of tenants, including supermarkets, located along Haihe River, along Nanjing Road, in restaurants, themed cafes and beauty salons. Xiangluowan business district and in Yujiabao financial district are expected to enter the market, which will bring After 18 months of intense construction, Hedong Wanda more new supply to the city’s grade A office. Moreover, Plaza, one of the 20 major building projects in Tianjin, two business centres will be formed upon completion of opened on 20 November. This 510,000sqm, 5.3-billion- the development of Yujiabao and Xiangluowan CBD. We CNY project will be a new modern commercial believe that the availability ratio is past its peak and will landmark in the Trade and Logistics Zone along Tianjin fall steadily over the next few years. Binhai Boulevard.

FEB 2011 I Business Tianjin 47 Real Estate

Despite the sharp growth in transactions, average prices increased slightly. The city-wide average price reached 13,005 CNY (1,956 USD) per sqm in October/November of this quarter, a y-o-y increase of 30.80%. Among the six inner city districts, the residential price in Hedong experienced the highest average increase, up 45.56% y-o-y to 13,939 CNY (2,096 USD) per sqm at the end of November.

In the first two months of Q4, land transaction in Tianjin remained stable. Plots set aside for subsidised housing saw stable supply, and several of these plots were successfully transacted. We expect a large amount of general market supply, as well as some subsidised housing supply, to The retail market remained stable compared with the complete in the future. This new supply is expected to previous quarter. The average rent of some high-quality soften housing prices in the city in the short term. In the projects remained high at 300-600 CNY (45.11-90.22 USD) long run, however, we believe Tianjin’s real estate market per sqm per month. Projects within this range include The development will remain on a stable and healthy track. Exchange, Isetan and Robbinz Department Store.

On 9 November, Isetan, the leading retail giant from Japan, signed an agreement with Tianjin TEDA Co., Ltd. to open a new store in Tianjin. The 5-floor, 25,000sqm Isetan TEDA store will be wholly owned by Isetan TEDA (China) Investment Co., Ltd. and will open in spring 2012. It will be Isetan’s fifth department store in China.

The construction of the Metro system is right on schedule. Lines 5 and 6 launched this year. With the completion of Lines 2 and 3 and the extension of Line 9 in the first half of 2011, the commercial market along these Metro lines is expected to see further development. Recent transactions Tianjin Binhai Huanggang Industrial Co., Ltd. purchased a total of 10 plots along the Jingjintang Expressway for City-wide average residential prices residential use for 1.77 billion CNY (270m USD). The increased 30.80% year-on-year. total floor area of 1,221,557sqm amounted to an average accommodation price of 1,452 CNY (218 USD) per sqm. Residential In the first two months of Q4 2010, a total of 1,542,418sqm Taoyuan Habitat purchased a plot with a total area of of new residential supply entered the market, including 161,788sqm in Binhai New Area for 12,362 CNY (1,859 778,852sqm in Binhai New Area. Also of note was the USD) per sqm, or 2 billion CNY (300m USD). completion of 339,338sqm in Nankai district.

Affected by buyer expectations, the residential housing transaction volume rebounded sharply in Q4 2010. DTZ is a leading global real estate adviser operating Total residential transacted area reached 685,128sqm across 148 cities in 43 countries. Its client-focused in the first two months of Q4. Among the six urban activities range from high quality capital market solutions to cutting-edge occupier-led property services and advice. districts, Heping recorded the highest transaction volume The comprehensive service offering is based upon (110,621sqm), followed by Hedong (64,162sqm) and detailed local knowledge backed by first-class research. The parent company, DTZ Holdings plc, has been quoted on the London Nankai (58,474sqm) districts. Stock Exchange since 1987. www.dtz.com

48 FEB 2011 I Business Tianjin

Chamber Report

2010 EUCCC Photo Contest Photo Exhibition

European Chamber of Commerce, Tianjin Chapter organized the Tianjin’s ﬁ rst company photo contest on 12 December 2010 at Rafﬂ es Hotel Tianjin. Business Tianjin, as the Exclusive Media Partner of this event, will publish the best photos from the exhibition, submitted by local companies, in its February and March issues to share with you.

AKZO Alcan

GamesaEnglish First Goglio

50 FEB 2011 I Business Tianjin Chamber Report

Haohe

Ipsen

TIMEC

NNE

Vestas Siemens

FEB 2011 I Business Tianjin 51 Chamber Report

BenCham – the Benelux Chamber of Commerce in China – strengthens the business, government and community ties between Belgium, The Netherlands, Luxembourg and China. With ofﬁces in Beijing, Shanghai and one newly established in the Pearl River Delta, we provide a wide range of services to ensure our members' success in China.

BENCHAM GALA BALL 2011 UPCOMING EVENTS

BenCham is preparing for our - 15 February 2011: CSR Event: yearly Gala Ball. This year The Carbon-Conscious Company BenCham is celebrating its 10th - 17 February 2011: Young Professionals Event: anniversary. Therefore the theme How to Pop the Expat Bubble of the gala is: - 24 February 2011: Training: Empowering your Executive Assistant (session 2) The BenCham X Ball - 26 February 2011: BenCham Gala Ball: X years in Business The BenCham X Ball – X years in China Every year, BenCham focuses PAST EVENTS on helping others with our Gala. This year, BenCham has decided - 12 January 2011: Training: Empowering your to support three charities with the Executive Assistant (session 1) proceeds of the auction: Handicap - 13 January 2011: Social Event: New Year's Cocktail International, Special Commune and Morning Tears. The - 21 January 2011: SME Event: BenCham Ball will take place on 26 February 2011. Please keep How to manage social risk in China? an eye on our website for more information. To keep updated on upcoming and past events, please mail our Do you want to support our gala by becoming a gala sponsor or ofﬁce at ofﬁ[email protected] or visit our website a lucky draw sponsor? If so, please contact us at www.bencham.org. [email protected]. OUR LINKEDIN FAMILY All BenCham members are invited to become part of the BenCham LinkedIn group. NEW WEBSITE FOR BENCHAM To go directly to our member group, please visit: BenCham has launched its new website! The new website is www.linkedin.com/groupRegistration?gid=105429. very user-friendly and contains new sections only accessible to MISSION our members. The Business Directory is also available online. Please visit www.bencham.org To strengthen the business, government and community ties between the Benelux countries and China by providing a dynamic networking platform to our members.

BENCHAM BEIJING OFFICE

Rm. 5006 Xinhe Dasha ⡒㈊㬱⧐䂕㤙㯔䊕ㅷ Sanyuanli No.14 㧞䊕㏐㾂㤙⼦ Shunyuan Street 㾦⼮⫔㻤㬳 Chaoyang District 䇫䎟⢁㕌ᷛ Beijing, 100027 Tel: + 86 (0)10 6465 0320 Tel: + 86 (0)10 6465 0320 / 0985 / 0985 Fax: +86 (0)10 6465 2080 Fax: +86 (0)10 6465 2080 [email protected] [email protected] www.bencham.org www.bencham.org

YEARLY SPONSORS

52 FEB 2011 I Business Tianjin Chamber Report

AmCham-China Tianjin Chapter

Recent Event Annual Individual Income Tax Seminar - Tianjin 1:30-5:00PM, Friday, January 14 – Hotel Nikko Tianjin

More than 50 members from AmCham-China, Tianjin Chapter and EUCCC Tianjin Chapter attended the Annual Individual Income Tax Semi- nar at the Hotel Nikko in Tianjin.

During the seminar, PricewaterhouseCoopers experienced professionals Kelvin Lee, Steven Zheng and Rebecca Lai discussed the Annual IIT Self-Declaration form, ITT Audit Risk Exposures, and the Expatriate Employee Secondment Permanent Establishment (PE) Risk Exposures.

Upcoming Event

Monthly Executive Breakfast Brieﬁng 7:15-9:00AM, Thursday, February 24 – The Westin Tianjin AmCham-China, Tianjin Chapter would like to invite you to the monthly executive breakfast on February 24. During this breakfast, we will discuss program opportunities and topics of interest for AmCham-China, Tianjin Chapter events in 2011. This event is also a great opportunity to meet the members of our Executive Committee. The goal of this executive breakfast will be to increase networking opportunities and information sharing with executives of various companies, all the while enjoying a delicious breakfast at a great price!

Venue: Prego, 3F, The Westin Tianjin No. 101, Nanjing Road, Heping District ੠ᑇऎफҀ䏃ো໽⋹৯䱚࿕ᮃ∔䜦ᑫὐᛣ໻߽令ख़ Tel: +86 22 2389 0088

Program: 7:15 - 7:30AM Registration and networking 7:30 - 9:00AM Brieﬁngs with breakfast

Registration: Cardholding members: 60 CNY Employee of member companies: 100 CNY Non-members: 150 CNY Registration deadline for this event is noon, Wednesday, February 16.

AmCham-China Events: Events have limited seating, so to ensure your attendance we encourage advance online registration and payment for ALL events. We cannot guarantee entry to anyone not registered in advance. All events are off the record and are held in English unless other- wise stated. If there are any questions please contact [email protected].

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

FEB 2011 I Business Tianjin 53 Calendar FEBRUARY 2011 MON TUE WED THU Special Days 123 Feb.02 World Wetlands Day Feb.03 The Spring Festival Feb.14 Valentine's Day Feb.17 Lantern Festival Feb.21 World Mother Language Day 78910 Puppet Show - The Adventures of Angles Tianjin Grand Theatre 19:30 80/120/180/280/200/300 CNY +86 22 2777 8571 +86 22 2730 7780 400-818-3333 14 15 16 17

21 22 23 24 Asia Commercial Real Estate ISPO China TICC Monthly Luncheon Summit Beijing China International Exhibition Sheraton Tianjin Hotel Intercontinental Hotel-Beijing, Beijing Center (CIEC) 21-22 Feb. 23-25 Feb.

MARCH 2011 3 15 1 2 3 4 5 6 7 8 9 10 11 12 13 ISH China 2011 - - Sanitation, Heating, TOC Asia- - the shipping, ports and Air-Conditioning, Bath & Kitchen terminal event for Asia 14 15 16 17 18 19 20 Beijing China International Exhibition Center (CIEC) Renaissance Tianjin TEDA Convention Centre Hotel 21 22 23 24 25 26 27 3-5 Mar. 15-17 Mar. 28 29 30 31

54 FEB 2011 I Business Tianjin Calendar TIANJIN & BEIJING EVENTS FRI SAT SUN 4 56

11 12 13 Kunqu Opera: Romance of Hua Mulan - Multi-Media Visual and Musical the Western Chamber Symphony Concert Tianjin Concert Hall Tianjin Concert Hall 19:30 19:30 50/100/180/280/380/500 CNY 30/60/120/180/280/380 CNY +86 22 2332 0068 +86 22 2332 0068

18 19TICC Bejing Bus Trip 20 Pickup from:Pizza Hill-Binshui Xi Dao Memory Journey - 8am-SHARP Cello&Piano Concert [email protected] Western Shore Art Salon 20:00 Horn spring - String Quartet Concert 50/60/100CNY Western Shore Art Salon +86 22 2326 3505 20:00 50/60/100 CNY +86 22 2326 3505

25 26Wellington College Open Day 27 The Nursery Building, Wellington College, Tianjin +86 187 2248 1836 China International Auto Ac- [email protected] cessories Electronics, Tuning & Care Products Expo Russian pianist-Victoria•Maluntzeva solo piano New China International Exhibition Western Shore Art Salon Center, Beijing 20:00 25-27 Feb. 50/60/100 CNY +86 22 2326 3505

TIANJIN & BEIJING EVENTS 22 25 China International Petroleum & Petrochemical Technology & Equipment Expat Show Beijing China World Trade Center(CWTC) Exhibition 25-27 Mar. New China International Exhibition Center 22-24 Mar.

FEB 2011 I Business Tianjin 55 CUT OUT AND CARRY THESE TABLES

1...5.. 1.3.5.7 1.3.5.7 1.3.5.7 1234.67 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 Kunpeng Airlines Shenzhen Airlines 8L9975 8L9975 CZ3133 CZ6463 CZ3126

CA1468 CA1390 GS7562 PN6237 GS7580 GS7467 MF8137 MF8378 FM9133 FM9292 MF8378 [email protected] ZH VD

23:20 19:25 20:15 12:10 11:15 21:05 11:00 23:55 14:10 09:40 23:55 20:45 10:10 12:10 12:25 00:45(+1) for more, contact for more, contact 7=Sun) 3=Wed, 4=Thu, 5=Fri, 6=Sat, (1=Mon, 2=Tue,

To Tianjin Tianjin To

13:10 17:25 GS7466 1234567 14:55 18:20 08:55 20:10 08:05 08:20 21:55 18:45 09:00 07:40 19:05 20:10 21:40 GS7464 1.3.5.7 09:40 08:30 22:55 19:50 12:10 13:15 15:05 GS6572 1234567 20:10 22:00 GS6696 1234567 09:20 15:05 CZ6927 1..4.6. Xiamen Airlines Xiamen China Eastern Airlines Airlines Northeast West Air Shangdong Airlines

O RIG IN DEP ARR Flights No Days

Guiyang Haikou Xiamen Xi'an Yantai Yinchuan Zhengzhou Harbin Huhhot Changsha Dalian Fuzhou Guangzhou Hangzhou Nanjing Nanning Sanya Chengdu Hefei Kunming Changchun Chifeng Chongqing Ningbo Qingdao Shanghai Shenyang Shenzhen Taiyuan Wuhan Urumqi Yuncheng SC NS PN MF MU Airline Code

1...5.. 1.3.5.7 1.3.5.7 1234.67 1234.67 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 1234567 Shanghai Airlines Grand China Airlines Juneyao Airlines Hainan Deer Air 8L9976 CZ3125 CA1389 CA1467

CA1401 GS7561 PN6238 GS6609 GS7468 GS7579 FM9291 FM9134 MF8377 MF8377 MF8138 HU7201 JD GS FM HU HO

17:00 15:30 14:25 12:00 14:05 15:00 18:15 18:50 14:00 17:55 18:55 16:35 10:50 11:55 11:25 15:15 From Tianjin Tianjin From DEP ARR Flight No Days

09:10 11:10

09:10 08:10 12:30 GS7465 1234567 12:40 13:15 16:00 14:00 15:40 15:00 13:15 15:00 09:00 07:55 13:50 15:20 16:50 GS7463 1.3.5.7 13:10 15:10 GS6603 1234567 16:00 18:05 GS6604 1234567 08:35 09:35 GS7575 1234567 10:40 11:40 GS7576 1234567 11:30 12:45 3U8861 1.3.5.7 13:35 14:55 3U8862 1.3.5.7 16:35 19:40 ZH9936 1234567 12:25 15:40 ZH9935 1234567 11:05 12:30 GS6601 1234567 15:55 17:00 GS6602 1234567 08:00 09:45 GS6695 1234567 16:00 21:50 CZ6928 1..4.6. 14:30 17:05 MF855 1234567 13:45 16:15 MF856 1234567 08:1008:2009:20 09:5509:00 09:20 11:05 GS7465 10:25 GS7421 CZ6457 1234567 GS6677 1234567 .2345.7 1234567 15:50 19:20 11:55 17:25 15:20 20:20 13:25 GS7466 16:40 GS7422 1234567 CZ6458 GS6678 1234567 .2345.7 1234567 13:00 11:55 10:55 12:35 GS6571 1234567 14:10 15:15 MU2135 1.3.5.7 15:55 17:05 MU2136 1.3.5.7

Air China Air Sichuan Airlines Sichuan Lucky Air Okay Airways Airlines Southern China

DEST 8L CZ CA 3U

Guiyang Haikou Xiamen Xi'an Yantai Yinchuan Harbin Huhhot Hangzhou Nanjing Nanning Fuzhou Changsha Hefei Kunming Chengdu Chifeng Chongqing Dalian Changchun Ningbo Qingdao Sanya Shanghai Shenyang Shenzhen Zhengzhou Taiyuan Wuhan Urumqi Yuncheng Guangzhou

Transportation Selected DOMESTIC FLIGHTS DOMESTIC Selected Transportation

for more, contact [email protected] Selected INTERNATIONAL FLIGHTS (1=Mon, 2=Tue, 3=Wed, 4=Thu, 5=Fri, 6=Sat, 7=Sun)

From Beijing To Beijing

DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days

Addis Ababa 21:05 07:50(+1) ET605 1.3..6. Addis Ababa 01:20 19:25 ET604 1.3..6. Amsterdam 11:55 15:10 KL0898 1234567 Amsterdam 17:40 09:55(+1) KL0897 1234567 Bangkok 17:05 21:20 TG615 1234567 Bangkok 10:10 15:50 TG614 1234567 Brussels 01:30 05:45 HU491 .2.4.67 Brussels 12:30 05:30(+1) HU492 .2.4.67

Delhi 18:00 22:40 CA947 1.3.56. Delhi 00:10 08:40 CA948 .2.4.67 Dubai 23:05 03:45(+1) EK307 1234567 Dubai 03:50 14:45 EK306 1234567

Frankfurt 11:30 14:50 LH721 1234567 Frankfurt 17:15 09:30(+1) LH720 1234567

Hanoi 15:30 18:20 VN901 .23.5.7 Hanoi 10:05 14:30 VN900 .23.567

Helsinki 11:35 14:25 AY052 1234567 Helsinki 18:00 07:55(+1) AY051 1234567 Hong Kong 10:00 13:40 CX347 1234567 Hong Kong 17:00 20:15 CX312 1234567

Istanbul 23:55 04:35(+1) TK021 1234567 Istanbul 23:45 15:00(+1) TK020 1234567 Kuala Lumpur 16:00 22:30 CA971 1.3.567 Kuala Lumpur 23:35 05:45(+1) CA972 1.3.567 London 12:10 15:15 BA0038 12345.7 London 16:30 10:25(+1) BA0039 1234.6.

Los Angeles 21:00 16:30 CA983 1234567 Los Angeles 00:40 05:30 CA984 1234567 Madrid 00:05 05:20 CA907 .234.67 Madrid 11:25 06:10(+1) CA908 123.56. New York 13:00 13:30 CA981 1234567 New York 15:50 18:20(+1) CA982 1234567 Osaka 13:50 17:45 JL886 1234567 Osaka 09:50 12:20 JL885 1234567 CUT OUT AND CARRY THESE TABLES Paris 13:40 17:40 AF125 1234567 Paris 18:55 11:45(+1) AF126 1234567 San Francisco 16:00 11:20 CA985 1234567 San Francisco 13:50 18:05(+1) CA986 1234567 11:45 14:40 KE852 1234567 09:15 10:25 KE851 1234567 Seoul* 14:00 17:00 KE856 1.3.5.7 Seoul* 11:40 12:50 KE855 1.3.5.7 21:20 00:15(+1) KE854 1234567 19:00 20:10 KE853 1234567 Singapore 00:10 06:40 SQ801 1234567 Singapore 08:45 14:50 SQ802 1234567 Sydney 17:00 07:40(+1) CA173 1234567 Sydney 21:00 05:50(+1) CA174 1234567

Tel Aviv 22:00 03:00(+1) LY096 .2.4..7 Tel Aviv 21:40 13:30(+1) LY095 1.3..6. Tokyo 16:40 21:00 JL024 1234567 Tokyo 10:30 13:35 JL023 1234567 Ulaanbaatar 11:55 14:30 CA901 1234567 Ulaanbaatar 15:30 17:35 CA902 .234567 Vancouver 15:50 10:30 CA991 1234567 Vancouver 12:50 16:30(+1) CA992 1234567

From Tianjin To Tianjin

DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days DEST Hong Kong 08:35 12:00 KA1103 1234567 Hong Kong 13:00 16:10 KA1104 1234567

Seoul* 13:10 15:55 KE806 1234567Seoul* 10:35 11:30 KE805 1234567

Nagoya 13:00 16:50 JL840 1234567 Nagoya 09:40 11:50 JL841 1234567

Kuala Lumpur 15:50 22:15 D7 2613 1.3.567 Kuala Lumpur 08:30 14:35 D7 2612 1.3.567

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

Airline Code

AC Air Canada EK Emirates LH Lufthansa SQ Singapore Airlines

AF Air France ET Ethiopian Airlines LY El Al Airlines SU Aeroflot Airlines

AY Finnair EY Etihad Airways MS Egypt Airlines TG Thai Airways International

BA British Airways HU Hainan Airlines NH All Nippon Airways UL Sri Lanka Airlines

CA Air China JL Japan Airlines NZ Air New Zealand VN Vietnam Airlines

CX Cathay Pacific KA Dragon Air QF Qantas Airways

CZ China Southern Airlines KE Korean Air QR Qatar Airways

D7 Air Asia KL KLM-Royal Dutch Airlines SK Scandinavian Airlines CUT OUT AND CARRY THESE TABLES 118) 10:00 10:10 10:25 12:00 12:15 13:45 14:40 15:15 17:55 07:30 08:00 08:15 12:25 14:10 14:20 15:30 15:40 16:50 17:20 18:40 18:20 18:30 20:55 21:50 22:10 22:50 23:00 23:30 07:05 08:40 10:35 11:25 12:45 15:50 17:00 18:50 19:35 19:45 20:10 20:20 20:35 㩯 21:19 13:29 16:49 19:44 09:00 15:10 09:30 16:35 15:25 17:49 70-

㩯 BJ ~ Wuqing

BJ ~ TJ (¥58 - ¥69) - (¥58 TJ ~ BJ BJ ~ TG ( BJ ~ C2233 20:15 20:35 C2011 08:00 08:30 C2027 10:15C2203 10:30 10:45 11:05 C2017 09:10 09:40 C2281 20:25 C2211 21:15 C2085 21:40 C2087 22:20 C2089 22:30 C2093 23:00 Train BeijingC2001 06:35 C2003 07:00 C2005 07:10C2271 07:20 Tianjin C2007 07:30 C2009 07:45 07:40 C2015C2013 07:50 08:45 08:10 C2201 08:55C2019 09:15 09:30 C2021 09:30 09:40 C2023 09:55 C2025 10:05 C2029 10:55 C2031 11:30 C2033 11:45 C2035 11:55 C2037 12:15 C2039 13:15 C2041 13:40 C2043 13:50 C2045 14:10 C2047 14:45 C2049 15:00 C2059C2051 16:40 15:10 C2053 15:20 C2055 16:20 C2057 17:10 16:30 C2061 16:55 C2063 17:25 C2065 17:40 C2067 17:50 C2069 18:00 C2071C2083 18:20 20:45C2073 19:05 C2075 19:15 C2077 19:40 C2079 21:15 19:50 C2081 20:05 C2205 12:55 13:30 C2207 15:40 16:15 C2209 18:30 19:05 Train Beijing Tanggu Train Beijing Wuqing C2281 20:25 C2205 08:40 C2209 09:50C2231 14:50 C2217 10:10 17:20C2219 18:25 17:40 18:45 C2275 12:35 C2295 15:55 C2279 18:50 C2221 19:45 20:05 C2207 09:10 C2215 16:15 C2285 14:30 C2277 16:55

118) 22:35 09:55 16:50 16:43 19:10 10:00 11:00 23:15 07:15 07:25 08:15 08:25 09:05 10:25 11:10 12:05 13:00 14:20 14:30 15:20 15:35 16:05 16:25 17:15 17:35 17:45 18:50 21:45 21:55 22:05 22:25 06:55 07:40 07:55 08:50 09:15 09:50 10:35 11:20 11:40 12:30 14:05 14:55 15:50 17:05 19:00 19:10 19:30 19:40 19:50 20:15 21:05 㩯 70-

㩯

Wuqing ~ BJ Wuqing TJ ~ BJ (¥58 - ¥69) - (¥58 BJ ~ TJ TG ~ BJ ( BULLET (C) TRAIN BULLET (C) C2282 21:39 C2210 11:42 12:05C2220 17:52 C2211 11:25 18:15 11:45 C2202C2232 06:52C2204 08:12 08:32C2206C2208 09:32 10:47C2212 07:15 13:22C2214 08:35C2234 14:32 08:55 C2201C2216 15:37 06:45 C2203 15:47C2218 11:10 08:15C2224 16:27 13:45 17:42C2222 14:55 20:07 16:00 C2213 07:05 16:10 13:40 08:35 C2223 13:45 18:05 20:30 14:00 14:05 C2272C2292 08:29 09:29C2274C2276 12:14 13:44C2286C2294 15:45 C2296 09:25 16:34C2278 10:25 17:09C2298 18:14 13:10 C2271C2280 19:24 14:40 C2291 07:20 19:59 08:05 C2273 17:30 10:45 18:05 C2293 20:20 08:14 15:20 20:55 08:59 C2297 11:39 17:55 16:14 18:49 C2204 10:15 10:50 Train Tanggu Beijing Train Wuqing Beijing C2068 17:45 18:15 C2212 21:00C2084 21:15 C2086 21:25 C2088 21:35 C2090 21:55 21:35 C2094 22:45 TrainC2002 Tianjin 06:25 C2202 06:40 C2004 06:55 C2006 07:10 C2008 Beijing 07:25 C2010 07:45 C2012 07:55 C2014 08:20 C2016 08:35 C2018 08:45 C2020 09:20 C2022 09:30 C2024 09:55 C2026 10:05 C2028 10:30 C2030 10:40 C2032 10:50 C2034 11:10 C2036 11:35 C2038 12:00 C2040 12:30 C2206 13:30 C2044 13:50 C2046 14:00 C2048 14:25 C2050 14:50 C2052 15:05 C2054 15:20 C2056 15:35 C2058 15:55 C2208 16:30 C2062 16:45 C2064 17:05 C2066 17:15 C2210 18:15 C2070 18:30 C2072 18:40 C2074 19:00 C2076 19:10 C2078 19:20 C2080 19:45 C2082 20:35 C2272 08:55 09:25 C2042 13:20 13:50 C2060 16:20 16:50 C2282 22:05 22:35 C2092 22:15 22:45 13 12 15 15 10 10 10 - - - - — - - - 15 12 12 15 15 15 8 8 8 10 12 12 12 6.Xi Nan Jiao Freq (min) 17.Hua Shan Dao 11:21 Arrives 7.Er Wei Lu 7.Er Wei 6.Xiao Dong Zhuang 6.Xiao 14.Dong Hai Lu Hai 14.Dong 7.Jun Liang Cheng Liang 7.Jun — Time 5.Xi Bei Jiao 10:50 - 12:20 10:55 - 15:17 12:20 - 14:32 08:00 - 10:55 - 08:00 17:25 - 21:00 07:00 - 10:50 - 07:00 06:00 - 07:00 - 17:2515:17 07:00 - 08:00 06:00 - 07:00 17:40 - 14:32 17:40 - 18:30 18:30 - 21:00 08:05 5.Dong Li 16.Fu Xing Men Departs 8.Hai Guang Si 13 8 12 12 13 8 12 10 ------15 15 15 15 15 15 5 5 8 10 10 11 10 10 TEDA-TJ-BJ (¥14) TEDA-TJ-BJ Train 4494 Freq (min) 13.Convention Center 13.Convention 4.Xin Li Zhen 4.Hong Hu Li 8.Steel Tube Corporation 9.An Shan Dao 15.Chen Tang Zhuang 15.Chen Tang Monday - Friday Saturday - Sunday METRO Tianjin 16:08 Time Arrives 18:15 - 21:00 15:05 - 17:02 15:58 - 18:15 06:00 - 06:45 - 06:00 07:00 08:17 - 07:54 - 11:00 10:05 - 15:05 - 10:05 06:45 - 07:54 - 06:45 08:17 - 10:05 17:02 - 17:58 17:58 - 18:30 11:00 - 15:58 06:00 - 07:00 18:30 - 21:00 3.Qin Jian Dao 9.Hu Jia Yuan Jia 9.Hu 3.Er Hao Qiao Hao 3.Er 12.Citizen Plaza 12.Citizen 10.Ying Kou Dao 10.Ying 14.Tu Cheng 14.Tu 18.Cai Jing Da Xue (Tianjin Univ. of Finance & Economics) Univ. 18.Cai Jing Da Xue (Tianjin 13:10

Departs 2.Ben Xi Lu 11.TEDA Train 2.Yi Hao Qiao Hao 2.Yi one way one way 10.Tang Gu 11.Xiao Bai Lou 11.Xiao

depending on distance travelled 1.Zhong Shan Men 13.Nan Lou Transportation TJ - BINHAI (¥6) BJ-TJ-TEDA (¥14) BJ-TJ-TEDA Train 4493 Beijing Airport Terminals 2/3 - TEDA 2/3 - Terminals Airport Beijing 10:00-22:00, runs every hour 3 2 and Gate3/Terminal Exit on the 1st floor at Gate 11/Terminal +86 10 6455 8718 Tel: TEDA - Beijing Airport Terminals 2/3 Terminals Airport - Beijing TEDA 06:30-19:30, runs every hour 1st Avenue, TEDA +86 22 6620 5188 Tel: Beijing Airport Terminals 2/3 - Tianjin 2/3 - Terminals Airport Beijing 07:00, 08:00, 09:00 then every 30 minutes until 23:00 3 2 and Gate3/Terminal Exit on the 1st floor at Gate 11/Terminal +86 10 6455 8718 Tel: 04:00-18:00, runs every 45 minutes Huan Distance Bus Passenger Station Tian Anshan Xi Dao The junction of Hongqi Lu and +86 1686 8999 Tel: Tianjin - Beijing Airport Terminals 2/3 Terminals Airport - Beijing Tianjin Dong Hai Lu Hai Dong ¥6 - TJ) (Binhai First: 06:30 21:00 Last: Zhong Shan MenZhong (TJ - Binhai)¥6 First: 06:30 21:00 Last: ¥80 ¥70 TEDA-BEIJING AIRPORT SHUTTLE BUS TIANJIN-BEIJING AIRPORT Shuttle Bus Liu Yuan LIGHT RAIL TRAINS Stops: 06:00-22:00, runs every 10 minutes, 5 minutes during peak hours +86 22 6028 6777 Tel: Metro line 1 station to Shuang Lin station. It crosses Yuan Metro line 1 is from Liu Beichen, Hongqiao, Nankai, Heping, and Jinnan districts ¥2-5 1.Xi Heng Di No. 1 Metro Stops: 12.Xia Wa Fang 12.Xia Wa Shuang Lin

10Km 500Km

HEILONGJIANG

JILIN

NEIMENGGU LIAONING

XINJIANG HEBEI GANSU SHANXI

NINGXIA SHANDONG QINGHAI

SHAANXI JIANGSU

HENAN ANHUI

XIZANG HUBEI ZHEJIANG SICHUAN

GUIZHOU HUNAN JIANGXI FUJIAN

GUANGXI GUANGDONG TAIWAN YUNNAN

HAINAN Lifestyle Listings DINING

...... Indian Café Majestic Prego TIANJIN 1F, The Astor Hotel Tianjin 3F, The Westin Tianjin Alibaba Indian Restaurant & Bar No. 33, Tai’er Zhuang Lu No. 101, Nanjing Lu 2F, Sports Hotel Heping District Heping District No. 90, Weijin Nan Lu, Nankai District Chinese Tel: +86 22 2331 1688 ext. 8910 Tel: +86 22 2389 0088 ...... Tel: +86 22 2391 6368 ㋎㿞㋈⳩㳝䅃⫔㏜⤮㳝 China Station ➃㏐➮➮䇂Ⱙ⤮㳝㈧➪ ⼮㠞㤙㲉ⱚ䓐㔘⼦㳍㆓㏜㯔⭣⫔ ⼮㠞㤙㚰㈊㔘⼦㳍㆓㉞㔂㶟㯚 2F, Radisson Plaza Hotel Tianjin 㚰㋋㤙㸡㆓㚰㔘⼦ Ⳛ⮋⼡⿋㈌䁂㈧⮋⥄ 㵂㈧⮋⥄ No. 66, Xinkai Lu, Hedong District 㳆䈞⢗⹾㔆 Tel: +86 22 2457 8888 Chateau35 Wine Bar & Bistro Seasonal Tastes 䐱⺛䍟 Bawarchi Indian Restaurant Opposite 79, Changde Dao 1F, The Westin ⼴Ⰼ㤙㾣㋋㔘⼦㳍㆓㳍⧰㏗姰㬡 No. 69, bldg. B, Shang Gu (Between Kunming Lu and Yunnan Lu) Tianjin, no. 101 ク㈧⮋⥄ Tianta Lu, Nankai District Heping District Nanjing Lu Tel: +86 22 2341 2786 Tel: +86 151 2251 1218 Heping District Ding Tai Fung ➦㶀儘䇂Ⱙ⤮㳝 ⹦⡅㹘⤮㠰㲲㈧➪ Tel: +86 22 2389 0088 No. 18, the junction of 㚰㋋㤙㳍㰟㔘㩰⹩㩭䄖ㅷ%䔚⼦⼮㠞㤙⧄⭣⭡⼦ⰵ㘇 ᱑䐋㸗᱒㦌㦶⤮㳝 Zi Jin Shan Lu and Binshui Dao www.chateau35.com ⼮㠞㤙㚰㈊㔘⼦ Hexi District 㳍㆓㉞㔂㶟㯚㵂㈧⮋⥄ ...... Japanese Tel: +86 22 2813 8138 Glass House Ⰷ㲊ⴂ Kasumi Hyatt Regency Jing Jin City Spectrum All-Day Dining ⼴㹘㤙⢗㯏⭡䈌䓰㆑㩞㔘ㅜ㋻⼦ 1F, Crowne Plaza Tianjin Binhai Resort & Spa 7F, Hotel Nikko Tianjin No. 55, Zhongxin Da Dao No. 8, Zhujiang Da Dao No. 189, Nanjing Lu, Heping District Fortune Restaurant Airport Industrial Park Zhouliang Zhuang, Baodi District Tel: +86 22 8319 8888 ext. 3570 Tel: +86 22 5867 8888 ext. 2322 2F, Crowne Plaza Tianjin Binhai Tel: +86 22 5921 1234 ⤫㹘⤮㳝 No. 55, Zhongxin Da Dao 㻝㦶㬞㑰㏎㯏㈈⨙Ⳡ 㚰㈊㔘⼦㳍㆓㦶⼞㈧⮋⥄ Airport Industrial Park ㋶ⶼ㹐㒘ゴ⹅㤙䐱㾥⫔⭡⼦ ⡇䠇㤙䐽㑝䓐䑊ㅎ⫔⭡⼦㳍㆓⢖⼄㬆⺃⿫⹻ズ㦶㈧⮋⥄ Tel: +86 22 5867 8888 ext. 2355 ㈊㆓㾣⧨㋎䊤㈧⮋ Terrace Cafe ⶜⪟䐱⤮㳝 1F, Sheraton Hotel Tianjin ㋶ⶼ㹐㒘ゴ⹅㤙䐱㾥⫔⭡⼦ Kushi Grill La Seine Zi Jin Shan Lu, Hexi District 㳍㆓⢖⼄㬆⺃⿫⹻ズ㦶㈧⮋⥄ 2F, Radisson Plaza Hotel Tianjin No. 50, Tianjin Italian Style Town Tel: +86 22 2731 3388 No. 66, Xinkai Lu, Hedong District Ziyou Dao, Hebei District 䂁䊑㋈⳩㳝 Tel: +86 22 2457 8888 Fountain Lounge Tel: +86 22 2446 0388 䓰㆑㩞㔘㳍㆓㻓㎕⭨⫔㈧⮋⥄ Hyatt Regency Jing Jin City ⪏㩶㧝㚪⼴ⳉ⺛⤮㳝⼴Ⰼ㤙㾣㋋㔘⼦㳍㆓㳍⧰㏗姰㬡 Resort & Spa ⼴⡒㤙䓵䇪⭡䅃⫔㏜ⴈ㤊ㅷ⼦ Venezia Club ク㈧⮋⥄ No. 8, Zhujiang Da Dao No. 48, Tianjin Italian Style Town Zhouliang Zhuang, Baodi District Paelleta Spain Ziyou Dao, Hebei District Tel: +86 22 5921 1234 Seitaro No. 50-52, Kaifeng Dao Tel: +86 22 8761 3413 Sheraton Hotel Tianjin ⡭㦋⥉䊑 Xiao Bai Lou (1902 Street) 㶟㛂㯚㈧➪ Zi Jin Shan Lu, Hexi District ⡇䠇㤙䐽㑝䓐䑊ㅎ⫔⭡⼦ Hexi District ⼴⡒㤙䅃⫔㏜ⴈ㤊ㅷ⼦㈊㆓㾣⧨㋎䊤㈧⮋ Tel: +86 22 2731 0909 Tel: +86 22 2311 0081 㤆㲌㎪㦶⡟㑰㏎ ➺䅃⫐⼄㻫Ⳛ Wyndsong Restaurant ⼴㹘㤙䓰㆑㩞㔘㻓㎕⭨⫔㈧⮋ ⼴㹘㤙㾂➸㔆㝘㬞ⴈ㤊ㅷ⼦ Shui An 1F, Crowne Plaza Tianjin Binhai 1F, The Astor Hotel Tianjin No. 55, Zhongxin Da Dao No. 33, Tai’er Zhuang Lu ...... Thai Pan Shan Grill & Wine Airport Industrial Park Heping District 2F, Main Building YY Beer House Tel: +86 22 5867 8888 ext. 2333 Tel: +86 22 2331 1688 ext. 8920 Sheraton Hotel Tianjin (Behind International Building) ⴈ䐏㻙䈐㹘⤮㳝㯏➗䐱⤮㳝 Zi Jin Shan Lu, Hexi District No. 3, Aomen Lu, Heping District ㋶ⶼ㹐㒘ゴ⹅㤙䐱㾥⫔⭡⼦⼮㠞㤙㲉ⱚ䓐㔘⼦㳍㆓㏜㯔⭣⫔ Tel: +86 22 2731 3388 ext.1820 Tel: +86 22 2339 9634 㳍㆓⢖⼄㬆⺃⿫⹻ズ㦶㈧⮋⥄ Ⳛ⮋⼡⿋㈌䁂㈧⮋⥄ 㝭㩞㠰㲲㈧➨Ⳡ 䊢䊑㲊⤮㳝⼴㹘㤙䓰㆑㩞㔘㳍㆓㻓㎕⭨⫔㈧⮋ ⼮㠞㤙➥㗦㔘⼦ Tao Li Chinese Restaurant 䑘㔆⥄ ⺛カ⫔㻤⽔⥁ 6F, Hotel Nikko Tianjin No. 189, Nanjing Lu, Heping District Tel: +86 22 8319 8888 ext. 3561 ...... Western 㲳㏏䐱⤮㳝 1863 the Dining Room ⼮㠞㤙㚰㈊㔘⼦ 1F, The Astor Hotel Tianjin 㳍㆓㦶⼞㈧⮋⥄ No. 33, Tai’er Zhuang Lu Heping District Zen5es Tel: +86 22 2331 1688 ext. 8918 4F, The Westin Tianjin 䐢䔑㹘⤮㳝 No. 101, Nanjing Lu ⼮㠞㤙㲉ⱚ䓐㔘⼦㳍㆓㏜㯔⭣⫔ Heping District Ⳛ⮋⼡⿋㈌䁂㈧⮋⥄ Tel: +86 22 2389 0088 䐱⺛䊋㯹䐱⤮㳝 Café@66 ⼮㠞㤙㚰㈊㔘⼦ 1F, Radisson Plaza Hotel Tianjin 㳍㆓㉞㔂㶟㯚㵂㈧⮋⥄ No. 66, Xinkai Lu, Hedong District Tel: +86 22 2457 8888 ㋈⳩ ⼴Ⰼ㤙㾣㋋㔘⼦㳍㆓㳍⧰㏗姰㬡ク㈧⮋⥄

62 FEB 2011 I Business Tianjin Lifestyle Listings DINING Services

...... Bars Associations United Overseas Bank (China), Tianjin Korean Chamber of ...... Limited Tianjin Branch Commerce & Industry JV'S Bar ICCO (International Committee The Emperor Palace, no. 236-238 1F, Feng Lin Hotel 1F, Main Building, Sheraton Hotel for Chinese Orphans) Hebei Lu, Heping District No. 6, Binshui Xi Dao Tianjin Tel: +86 22 2339 3688 Nankai District Zi Jin Shan Lu, Hexi District ⫔⿋䅙㾱᷉䐱⺛᷊䇱㻿⹌㯟㳍㆓⳷㾱 Tel: +86 22 2395 7991 Tel: +86 22 2731 3388 ext. 1845 ICCO is a volunteer organization ⼮㠞㤙⼴⡒㔘⼦⼮⼦㉞㔂⺄⧂ 㳍㆓⼌⺛㩭。 -9 6㈧➪ dedicated to improving the lives of 㚰㋋㤙⢗㯏㹘⭡⼦ⴄ㑷⢗⹾⥄ ⼴㹘㤙䓰㆑㩞㔘㳍㆓㻓㎕⭨⫔㈧⮋ Tianjin’s disabled orphans. Woori Bank 䑘㔆⥄ [email protected] Bldg. 1, Magnetic Capital www.tjicco.org Education Binshui Xi Dao, Nankai District ...... O’Hara’s Tel: +86 22 2338 8008 1F, The Astor Hotel Tianjin Tianjin Toastmasters Club International Schools 䇲㏜䅙㾱 No. 33, Tai’er Zhuang Lu The club helps men and women 㚰㋋㤙⢗㯏㹘⭡➣⧨㩭䄖⺄⧂⼦㔆 Cathay Future World Children’s Heping District learn and practice the arts of public Painting Gallery Tel: +86 22 2331 1688 ext. 8919 speaking, listening, and leadership Car Dealers No. 3, Ti Yuan Bei ⼄㸍㑷 in a friendly social environment...... Huanhu Zhong Lu, Hexi District [email protected] ⼮㠞㤙㲉ⱚ䓐㔘⼦㳍㆓㏜㯔⭣⫔ Porsche Center Tianjin Tel: +86 22 2351 6670 Ⳛ⮋⼡⿋㈌䁂㈧⮋⥄ No. 59, Qiche Yuan Zhong Lu ⿋㻥㸕㎕ TICC (Tianjin International Airport Industrial Park ⼴㹘㤙⿘⽟䐱㔘㳆䊛⡒⼦ Qba Bar Community Center) Tel: +86 22 2435 9911 2F, The Westin Tianjin Association and meeting place 㳍㆓⡄㬒ㅾ䐱㾥 International Musical School of No. 101, Nanjing Lu for foreign passport holders and ㋶ⶼ㹐㒘ゴ⹅㤙㡜⧖䊑䐱㔘⼦ Tianjin Concert Hall Heping District their families in Tianjin. Organise No. 88, Jianshe Lu, Heping District Tel: +86 22 2389 0088 monthly coffee mornings, Tel: +86 22 2332 0068 ext. 6010 4➪ luncheons and social/fundraising ...... Chambers ⼮㠞㤙ㅉ㪉㔘⼦⼮㠞㤙㚰㈊㔘⼦ events, supporting local charities. European Chamber, Tianjin 㳍㆓㉞㔂㶟㯚㵂㈧⮋⥄ [email protected] Chapter tianjin.weebly.com Room15A17, Suite 17, Magnetic Plaza International School of Tianjin Accounting Binshui Xi Dao, Nankai District Weishan Lu, Jinnan District ...... Agricultural Development Bank Tel: +86 22 5838 7993 Tel: +86 22 2859 2001 Tianjin Branch 䐱⺛㝘㗬㩭。㳍㆓⳷。⺛カ䁈㾄㳍㆓⳷㾄 FF, bldg. B, no. 139, Nanjing Lu 㚰㋋㤙⢗㯏㹘⭡➣⧨㩭䄖⺄⧂䔚 ㆓㚰㤙㆓㚰㸃㩞㔘 Heping District $㬳 Tel: +86 22 2711 5744 Tianjin International School 䐱⺛㝊䄖䅙㾱㳍㆓⳷㾱 German Business Circle Tianjin No. 1, Meiyuan Lu, Huayuan Industrial Area, Nankai District Tianjin Offi ce: ⼮㠞㤙㚰㈊㔘⼦%䔚)⥄ Deutscher Unternehmerkreis Tel: +86 22 8371 0900 Unit 2901 - 104 Tianjin, DUT 㳍㆓⺛カ䁈㾄 The Exchange Tower 2 Bank of China, Tianjin Branch Offi ce 803, Huake Center 㚰㋋㤙⿋䊘⥛䄖㤙㗘䊘㔘⼦ No.189, Nanjing Lu No. 80, Jiefang Bei Lu No. 3, Kaihua Dao, Huayuan Heping District Heping District Industrial Area, Nankai District Tel: +86 22 2318 5056 Tel: +86 22 2710 2001 Tel: +86 22 8371 7855 Tianjin Rego International Fax: +86 22 2318 5001 䐱⺛䅙㾱㳍㆓⳷㾱㳍㆓⭣⺛㦬㑋䅋。 School E-mail: [email protected] ⼮㠞㤙ㆃ⳦⡒㔘⼦㚰㋋㤙⿋䊘⥛䄖㤙㋋⿋⭡⼦⿋㋧ No. 38, Huandao Xi Lu 㳍㆓㬱⼮㠞㤙㚰㈊㔘⼦ ⪕䄖䐱㾥㬳 Meijiang Nan, Hexi District ㆓〄⺄⧂ Tel: +86 22 8816 1180 䔚⥄㬳 Bank of East Asia (BEA) 㳍㆓㧑㆑⺛カ䁈㾄 Bldg. G, Rome Gardens German Chamber of ⼴㹘㤙㗘ㅎ㚰⿘⭛㹘㔘⼦ Beijing Offi ce: No. 47, Youyi Bei Lu, Hexi District Commerce, Tianjin Offi ce 6/F, Dongwai Diplomatic Building Tel: +86 22 2332 1662 No. 3, Yuliang Lu, Nankai District No. 23, Dongzhimenwai Dajie Ⰼ䁨䅙㾱䇱㻿⹌㯟 Tel: +86 22 2301 1709 Wellington College Beijing ⼴㹘㤙䇲䅋⡒㔘⼦㔿㕎⿉䊑*⥄ ⭣⺛㩭。㳍㆓⳷。 International Tianjin Tel: +86 10 8532 1720 㚰㋋㤙䈞㑛㔘⼦ No. 1, Yide Dao, Hongqiao District Fax: +86 10 85322746 China Bohai Bank Tel: +86 22 8758 7199 ext. 8001 E-mail: [email protected] Bldg. 1, Magnetic Capital The American Chamber of www.wellingtoncollegeintl.cn ⡒㈊⧐䂕㤙Ⰼ䐒㗦㶃⫔ㅷ⼦᷍ Binshui Xi Dao, Nankai District Commerce, Tianjin Chapter 㳍㆓⿾㒊ⰺ⺛カ䁈㾄 Ⰼ㶃㶃ㅜ⟍⹌⫔㔆⽍㣦㤙䅆⭣⭡⼦ Tel: +86 22 5839 1358 Room 2918, 27-29F, bldg. B ⤔⼄䅙㾱 The Exchange Shanghai Offi ce: 㚰㋋㤙⢗㯏㹘⭡➣⧨㩭䄖⺄⧂⼦㔆 No. 189, Nanjing Lu, Heping District Kindergartens Room 1501 & 1504, WanTai Tel: +86 22 2318 5075 International Building, Citibank Hopeland International No.480, North Urumqi Lu 㗡⺛㩭。㳍㆓⳷。 Kindergarten & Day Care Center 18F, The Exchange ⼮㠞㤙㚰㈊㔘⼦㆓〄⺄⧂%䔚 Jing An District No. 46, Xiaguang Dao No. 189, Nanjing Lu, Heping District ⥄㬳 Tel: +86 21 6249 0055 Weijin Nan Lu, Nankai District Fax: +86 21 6288 1636 Tel: +86 22 8319 1988 ext. 73812 ⿉㡍䅙㾱 Tel: +86 22 2392 3803 E-mail: [email protected] Tianjin Japanese Association ⿋㎝⺛カ䇸䐪䊑㩰⼄㬱㈓➓㤙㸻㔔㚟㡌⡒㔘⼦㚰㈊㔘⼦㆓〄⺄⧂⥄ Room 607, International Building 㚰㋋㤙㸡㆓㚰㔘㻝⺃⭡⼦ No. 75, Nanjing Lu, Heping District HSBC, Tianjin Branch Tel: +86 22 2313 2522 Ocean Shipping Plaza 㳍㆓㦶⡟㦬。 Primary Schools No. 1, Haihe Dong Lu ⼮㠞㤙㚰㈊㔘⼦⺛カ⫔㻤㬳 Tianjin Primary School Hebei District No. 977, Dagu Nan Lu, Hexi District Tel: +86 22 5858 8888 Tel: +86 22 8832 0569 㼄ⶼ㩰⼄〄ⴂ䅙㾱㳍㆓⳷㾱㳍㆓㾂䁈⼴⡒㤙⼄⼴Ⰼ㔘䊗䂔⺄⧂⼦⼴㹘㤙⫔⹢㚰㔘⼦

FEB 2011 I Business Tianjin 63 Lifestyle Listings Services

Tianjin Zhongshan Primary Golden Crown Hotel The Astor Hotel Tianjin Sheraton Apartment School No. 18, Nanjing Lu, Hexi District A Luxury Collection Zi Jin Shan Lu, Hexi District No. 1, Ti Yuan Bei, Huanhu Zhong Tel: +86 22 2303 8866 Hotel Tel: +86 22 2731 3388 Dao, Hexi District ㆑⿫⫔㈧⮋ No. 33, Tai’er Zhuang 㻓㎕⭨⹌䊃 Tel: +86 22 2335 8273 ⼴㹘㤙㚰㈊㔘⼦ Lu, Heping District ⼴㹘㤙䓰㆑㩞㔘㳍㆓䐱㩞㾂䁈 Tel: +86 22 2331 1688 ⼴㹘㤙㳆䊛⡒⿘⽟䐱⭡⼦ Golden Ocean Hotel 㳍㆓㏜㯔⭣⫔Ⳛ⮋⼡⿋㈌䁂㈧⮋ No. 338, Nanjing Lu, Nankai District ⼮㠞㤙㲉ⱚ䓐㔘⼦ Universities Tel: +86 22 2746 6666 ㆑䋔⫔㈧⮋ The Westin Tianjin German Language Centre 㚰㋋㤙㚰㈊㔘⼦ No. 101, Nanjing Lu Tianjin Foreign Studies Heping District University Holiday Inn Tianjin Riverside Tel: +86 22 2389 0088 Somerset Olympic Tower Tianjin No. 126, Chengdu Dao Bldg. 3, Tianjin Foreign Studies Phoenix Shopping Mall 㳍㆓㉞㔂㶟㯚㵂㈧⮋ Heping District University Haihe Dong Lu, Hebei District ⼮㠞㤙㚰㈊㔘⼦ No. 177, Machang Dao Tel: +86 22 2335 5888 Tel: +86 22 2627 8888 Hexi District 㳍㆓㬃ㅾ➣㑷㠆㋬⫔㻤ⴟ㹒⹌ 㳍㆓⼄⼴ズ㦶㈧⮋ Tian Bao International Hotel Tel: +86 22 2326 5642 䊃⼮㠞㤙⧪Ⱍ⭡⼦⼴⡒㤙⼄⼴Ⰼ㔘ⴐ⿬㩭㗔⺄⧂ No. 368, Jingmen Da Dao 㳍㆓㶃⺛䈐䁈䊛ⷉ⭣䈐䁵䐱㾥 Baoshui District Somerset Youyi Tianjin ⼴㹘㤙㕎⧂⭡⼦㳍㆓㶃⺛䈐䁈 Tel: +86 22 2576 1588 Hotel Nikko Tianjin No. 35, Youyi Lu, Hexi District 䊛⼦㔆㳍㆓㳍⡄⺛カ㈧⮋ No. 189, Nanjing Lu, Heping District Tel: +86 22 2810 7888 Tel: +86 22 8319 8888 ⡄㯑㤙㈊㗦⫔⭡⼦ Nankai University 㳍㆓㬃ㅾ䇲䅋ⴟ㹒⹌䊃㳍㆓㦶⼞㈧⮋ No. 94, Weijin Lu, Nankai District ⼴㹘㤙䇲䅋㔘⼦⼮㠞㤙㚰㈊㔘⼦ Tianjin Saixiang Hotel Tel: +86 22 2350 1583 No. 8, Meiyuan Lu, Huayuan 㚰㋋⫔䁈 Somerset International Hyatt Regency Jing Jin City Industrial Area, Nankai District 㚰㋋㤙㸡㆓㔘⼦ Building Tianjin Resort & Spa Tel: +86 22 2376 8888 No, 75, Nanjing Lu 㳍㆓㧝㼔㈧⮋ Rafﬂ es Design Institute, Tianjin No. 8, Zhujiang Da Dao Heping District Zhouliang Zhuang, Baodi District 㚰㋋㤙⿋䊘⥛䄖㤙㗘䊘㔘⼦ Tel: +86 22 2330 6666 Block H, no. 28, Jinjing Lu Tel: +86 22 5921 1234 Xiqing District Hotels 㳍㆓㬃ㅾ⺛カ⫔㻤ⴟ㹒⹌䊃 Tel: 400 688 7300 ㈊㆓㾣⧨㋎䊤㈧⮋ ⼮㠞㤙㚰㈊㔘⼦ Best Western Byronn Hotel 㳍㆓㎔ⴑ㬠㪉ェ䁈䊛 ⡇䠇㤙䐽㑝䓐䑊ㅎ⫔⭡⼦㹘㤁㤙㆓㈓㔘⼦+䔚 Tianjin Radisson Plaza Hotel Tianjin No. 90, Xi’er Dao TEDA International Club Tianjin No. 7, Fukang Lu, Nankai District Event Planning No. 66, Xinkai Lu, Hedong District Airport Industrial Park ...... Tel: +86 22 2457 8888 Tel: +86 22 8486 0000 Tel: +86 22 5869 5555 InterMediaChina is 㳍㆓㳍⧰㏗姰㬡ク㈧⮋ 㳍㆓㋶ⶼ➸䊧㈧⮋ 㳍㆓㲊⫐⺛カ。⹾⹌䊃 Tianjin’s premiere ⼴Ⰼ㤙㾣㋋㔘⼦㋶ⶼ㹐㒘ゴ⹅㤙㹘ⱟ⭡⼦㚰㋋㤙ⶕ㋖㔘⼦ event planning company. We will Rafﬂ es Tianjin Dickson Hotel The Lakeview, Tianjin-Marriott pinpoint the features that can No. 219, Nanjing Lu No. 18, Binshui Dao, Hexi District Executive Apartments make your event a success and Heping District Tel: +86 22 2836 4888 No. 16, Binshui Dao, Hexi District ensure that your target audience is Tel: +86 22 2321 5888 ⭼⧨⫔㈧⮋ Tel: +86 22 5822 3322 reached through superb advertising 㳍㆓㎔ⴑ㬠㈧⮋ ⼴㹘㤙⢗㯏⭡⼦㳍㆓㶓⼡㾱䎟⹌䊃 and promotion. ⼮㠞㤙㚰㈊㔘⼦⼴㹘㤙⢗㯏⭡⼦ Also arrange the following: Jinbin International Hotel • Budgeting No. 135, Anshan Dao Tianjin Centre Residences • Selecting and reserving the event Renaissance Tianjin Hotel Heping District No. 219, Nanjing Lu, Heping District site No. 105, Jianshe Lu, Heping District Tel: +86 22 8331 1818 Tel: +86 22 5868 2888 • Transportation and parking Tel: +86 22 2302 6888 ㆛⢖⺛カ⫔㈧⮋ 㳍㆓䐱㾥⹌䊃 To set up an event with 㳍㆓⢖ㅎ㶓㏗㈧⮋ ⼮㠞㤙➑㩞⭡⼦⼮㠞㤙㚰㈊㔘⼦ InterMediaChina, please send ⼮㠞㤙ㅉ㪉㔘⼦ e-mail to [email protected] Apartments Renaissance Tianjin Lakeview ...... Logistics Exhibition Centre Hotel Astor Apartment ...... No. 16, Binshui Dao, Hexi District No. 32, Tai’er Zhuang Lu LOGISTICSTIANJIN can provide Tianjin International Exhibition Tel: +86 22 5822 3388 Heping District a full range of LOGISTICS Tel: +86 22 2303 2888 Center 㶓㏗㳍㆓⢗⹾ SERVICES: ㏜㯔⭣⹌䊃 No. 32, Youyi Lu, Hexi District ⼴㹘㤙⢗㯏⭡⼦ ▪ Import and Export shipments ⼮㠞㤙㲉ⱚ䓐㔘⼦ Tel: +86 22 2801 2988 ▪ Pick up/deliver shipments and 㳍㆓⺛カ。䍚䐱㾥 Sheraton Hotel Tianjin documents ⼴㹘㤙䇲䅋㔘⼦ Zi Jin Shan Lu, Hexi District Crystal Palace Hotel Apartment Tel: +86 22 2731 3388 No. 28, Youyi Lu, Hexi District ▪ Inland container transportation Tel: +86 22 2835 6666 Hotels & Apartments 㳍㆓㻓㎕⭨⫔㈧⮋ ▪ Customs clearance ...... ⼴㹘㤙䓰㆑㩞㔘㯏㈈⹍Ⳛ⮋⹌䊃 ▪ Inspection and quarantine Hotels ⼴㹘㤙䇲䅋㔘⼦ declaration TEDA International Club Tianjin ▪ Warehousing in bonded zones Modena Residence Heping Crowne Plaza Tianjin Binhai No. 7, Fukang Lu, Nankai District For further details, please send Tianjn No. 55, Zhongxin Da Dao Tel: +86 22 5869 5555 e-mail to No. 37 Xining Dao, Heping District Airport Industrial Park 㳍㆓㲊⫐⺛カ。⹾ [email protected] Tel: +86 22 5867 8888 㚰㋋㤙ⶕ㋖㔘⼦ Tel: +86 22 2781 2288 㳍㆓⢖⼄㬆⺃⿫⹻ズ㦶㈧⮋ ⼮㠞㤙㹘㛟⭡⼦㋶ⶼ㹐㒘ゴ⹅㤙䐱㾥⫔⭡⼦

64 FEB 2011 I Business Tianjin Lifestyle Listings Services Health SPORTS

...... Printing Material ...... Serviced Office ...... Hospitals ...... Golf Studios TIANJINPRINT is a 24-HOURS The Executive Binhu Hospital of Chinese Golf Clinic/LAB/Golf Fitness/ professional printing service Centre Traditional Medicine Pro Shop/Golf Club Coupons provider. Provides the highest level 29F, bldg. 2, (Next to IG Supermarket) B2, no. 92-1, Huaqiao Building of service by employing the most The Exchange Huanhu Nan Li, Ti Yuan Bei Nanjing Lu, Heping District advanced equipment, superior No. 189, Nanjing Lu, Heping District Hexi District Tel: +86 22 2392 1936 customer service, and excellent Tel: +86 22 2318 5000 Tel: +86 22 2330 0706 るⱘるⷀⱜⴓ䎐ⰰ䐱㾥 quality control systems, to ensure 㳍㆓⭣㬣㩭㹒䐱㾥 ⢖⽟䐱䄞䄞䊛⼮㠞㤙㚰㈊㔘⼦䋗⼦⿋㣩⫔㻤% that customers receive the highest 㚰㈊㔘⼦㆓〄⺄⧂䔚⥄ ⼴㹘㤙㳆䊛⡒⿘⽟㚰㏐ quality products and services. ㆓⹅⧍㬱㝵 ...... Gyms Print, including design, prepress, Travel Agencies ...... Powerhouse Gym finishing, binding and inserting. Tianjin Children’s Hospital Tianjin’s Binjiang Shopping Center, Kaifeng Dao For projects or inquiries, please No. 225, Machang Dao travel agency Xiao Bai Lou (1902 Street) send e-mail Hexi District specializing in Hexi District to [email protected] Tel: +86 22 2351 85305 tourism for foreigners Tel: +86 22 2302 2008 ⱚ㵐⤂䓉㋧䄞䊛 Promotional Products Tel: +86 159 2200 0555 ⡇㑇⼡ㅂ㪎㉄㎷⤠ ...... E-mail:[email protected] ⼴㹘㤙㕎⧂⭡⼦⼴㹘㤙㾂➸㔆⢖ㅎ⹛㹐䐱㾥 PROMOTIANJIN is a traditional promotional products agency Tianjin China International Tianjin First Central Hospital Sheraton Hotel Fitness Center serving major corporations and non- Travel Service No. 24, Fukang Lu, Nankai District Inside Sheraton Hotel Tianjin profit agencies since 1998. Based in No. 22, Youyi Lu, Hexi District Tel: +86 22 2362 6249 Zi Jin Shan Lu, Hexi District Tianjin, it has been actively serving Tel: +86 22 2810 9123 㳍㆓⭻䄜䐱㾥䄞䊛 Tel: +86 22 2731 3388 ext. 2228 accounts in financial services, health 㳍㆓䐱⺛⺛カ㔤㾱㪈㚰㋋㤙ⶕ㋖㔘⼦㻓㎕⭨ㅂ㪎㗡㦾䐱㾥 care, media, non-profit, advertising, ⼴㹘㤙䇲䅋㔘⼦⼴㹘㤙䓰㆑㩞㔘㻓㎕⭨Ⳛ⮋㚻 cultural affairs and home and Tianjin International SOS Clinic industrial furnishings fields. Main Tianjin China Travel Service 1F, Sheraton Hotel Westin Workout clients are organizations of all sizes No. 16, Pingshan Dao, Hexi District Zi Jin Shan Lu, Hexi District throughout China and abroad. Tel: +86 22 2430 1330 Tel: +86 22 2352 0143 For further details, please send 㳍㆓㬱䐱⺛㔤㾱㪈㳍㆓⺛カ᷉626᷊㆕を㈩䊏䎐㰚 e-mail to ⼴㹘㤙㠞㩞⭡⼦⼴㹘㤙䓰㆑㩞㔘㳍㆓㻓㎕⭨⫔㈧⮋ 5F, The Westin Tianjin [email protected] ⹌䊃㔆⥄ No. 101, Nanjing Lu, Heping District Spas Tel: +86 22 2389 0088 ...... Real Estate & Relocation ...... Golf Clubs 㶟㯚㵂ㅂ㪎⹾ Dikara Spa ...... E-SMART Relocation ⼮㠞㤙㚰㈊㔘⼦㳍㆓㉞㔂㶟㯚 4F, Radisson Plaza Hotel Tianjin Aroma (Tianjin) Golf Club Consultants Co., Ltd. 㵂㈧⮋⥄ No. 66, Xinkai Lu, Hedong District Green base, Guangang Senlin Park 19B, Tower 2, Zijin Garden Tel: +86 22 2457 8888 ext. 3910 Dagang District No.15, Binshui Dao, Hexi District Swimming Pools ⭰㋉㎎㯏㑧䐱㾥 Tel: +86 22 6328 5000 ...... Tel: +86 22 2836 0997 ⼴Ⰼ㤙㾣㋋㔘⼦㳍㆓㳍⧰㏗姰㬡 ➃㔿㕎㳍㆓ ⷀⱜⴓ㉄㎷⤠ Swimming Pool by Westin 㳍㆓㬱䄢㯚㕋㲹Ⳡ⭹⥛ⴟ㹒䇱㻿⹌㯟ク㈧⮋⥄ ⫔ⶼ㤙⹺ⶼ㩎㑷⹌䊑㔭⿐〚⭹⪇ 5F, The Westin Tianjin ⼴㹘㤙⢗㯏⭡⼦䓰㆑⿉䊑䔚% No.101, Nanjing Lu, Heping District Heavenly Spa by Westin Regal Rivera Golf Club Tel: +86 22 2389 0088 LC Relocation C21 6F, The Westin Tianjin Jingjin New Town 㶟㯚㵂㬳㚻䇯䇟⧹ Office 708, Galaxy Mansion No.101, Nanjing Lu, Heping District No. 1, Zhujiang Nan Lu, Baodi District ⼮㠞㤙㚰㈊㔘⼦㳍㆓㉞㔂㶟㯚 No. 68, Yuexiu Lu, Hexi District Tel: +86 22 2389 0088 Tel: +86 22 2966 9266 㵂㈧⮋⥄ Tel: +86 138 2099 1956 㶟㯚㵂㳍㗯㯏㑧 ⭼㈑ⷀⱜⴓ㉄㎷⤠ ⼴㹘㤙䊞㿄㔘⼦䅙⼴⫔㻤㬳⼮㠞㤙㚰㈊㔘 ⡇䠇㤙䑊ㅎ㚰㔘⼦㈊㆓㾣⧨ ⼦㳍㆓㉞㔂㶟㯚 BEIJING Royal Relocation Consultants 㵂㈧⮋⥄ Tianjin International Hot Spring 20B, bldg. 2, Zi Jin Garden Golf Club No. 15, Binshui Dao, Hexi District Oasis SPA at Sheraton No. 5, Zhongxin Da Dao Clinic Tel: +86 22 2813 6943 ...... 1F, Sheraton Hotel Tianjin Airport Industrial Park Vista Clinic 㦺㑋Ⳡ⭹⥛ⴟ㹒䇱㻿⹌㯟 Tel: +86 22 2489 0391 Zi Jin Shan Lu, Hexi District B29, Beijing Kerry Center ⼴㹘㤙⢗㯏⭡⼦㳍㆓⺛カ㸣㦋ⷀⱜⴓ㉄㎷⤠ Tel: +86 22 2731 3388 ext. 2227 No. 1, Guanghua Lu 䓰㆑⿉䊑䔚% ㋶ⶼ㹐㒘ゴ⹅㤙䐱㾥⫔⭡⼦㻓㎕⭨㔭䐿 Chaoyang District, Beijing ⼴㹘㤙䓰㆑㩞㔘㳍㆓㻓㎕⭨⫔㈧⮋⥄ Tel: +86 10 8529 6618 ...... Rentals Tianjin Pearl Beach 㸍㬡⫐䎐㰚 CAR/BUS Dental Clinics International Golf Country Club ⡒㈊㬱⧐䂕㤙⺃⿋㔘⼦⡒㈊ク㏐ ...... Yingcheng Hu, Hangu District Rental Services 䐱㾥% Aichi International Dental Center Tel: +86 22 6720 1818 in Tianjin and 4F, Huaju Department Store 㳍㆓㒛⼄⺛カⷀⱜⴓ㼈⫆㉄㎷⤠ Beijing with No. 72-74, Xikang Lu, Heping ⼛⹢㤙䇋⧨⽟ reasonable rates. District To make a reservation or enquiry, Tel: +86 22 8568 5606 Yang Liu Qing Golf Club please send e-mail to ➏⧾㋻㣜䄞㑧䐱㾥 (Overpass the northern bridge) [email protected] or call ⼮㠞㤙㹘㋖㔘⼦⿋㈽➺〖⥄ Yijing Lu, Yang Liu Qing Zhen +86 135 0207 0987 Xiqing District Tianjin Dental Hospital Tel: +86 22 2792 2792 No. 75, Dagu Lu, Heping District 䂏㒙㤁ⷀⱜⴓ㉄㎷⤠ Tel: +86 22 2711 9191 㹘㤁㤙䂏㒙㤁䎓䄜㈎㔘᷉㑃ㅜ㣦⡒᷊ 㳍㆓㋻㣜䄞䊛⼮㠞㤙⫔⹢㔘⼦

FEB 2011 I Business Tianjin 65 Lifestyle Listings Services Services Health SPORTS

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To include your advertising in the next issue, please write to classiﬁ[email protected] before the 15th day of the current month.

66 FEB 2011 I Business Tianjin Body Smugglers

IOM helps China battle traffi cking of people into, out of its territory

eople-trafficking is more lucrative than drug-trafficking – Sinkovits praised the work of organisations like Save the and it's harder to get caught. This fact is underappreciated Children, which has been assisting local victims of traffick- Pby policymakers, media and voters worldwide, but not ing to return to life by fi nding them a job. Save the Children among the criminal gangs for whom the trading of humans has representatives fl anking Sinkovits at the BCD event explained become an increasingly attractive alternative to drugs. Gangs are the case of two Chinese girls forced to work in the sex trade also aware of the lighter penalties handed down to traffi ckers of in Bangkok. The organisation offered psychological as well people, explains Thomas Sinkovits, an offi cial at the International as financial assistance to the girls, enabling them to get a Order for Migration (IOM) in Beijing. job. Save the Children also off ers help to girls smuggled from Burma into southwestern China for sex and marriage with lo- Such is the profile and funding of the battle against drugs cal men. that law enforcement is not accustomed to dealing with people-traffi cking with the same seriousness, says Sinkovits, Sinkovits explained how the IOM has been offering advice speaking to a gathering at the Beijing Community Dinners to Mongolian women to return home. Similarly, IOM offi cials (BCD), a volunteer group, in December. helped facilitate the return to China of two young women who had attempted to immigrate illegally to the US. Their IOM is helping stem the scourge of people-trafficking in families had paid for the teens to be smuggled through Latin China by working and sharing know-how with local offi cials. America, but the smugglers’ accomplices in South America Unlike smugglers, who typically get would-be migrants forced the pair to work for almost a year in local brothels. across borders for a fee, traffi ckers control their victims and use them to earn cash, typically by selling them into labour While data is hard to verify, Sinkovits believe people-traffi ck- and the sex trade. Given its economic prosperity, China has ing surpasses drug traffi cking as an income source for crimi- become a destination for trafficked people from poorer nals. Despite the horror cases unveiled – like women being neighbours like Mongolia and Burma. tossed into the sea by Chinese crime gangs – governments haven't taken human trafficking as seriously as the battle Sinkovits explained how a recent visit to Russia and Fin- against drug runners. land that he organised for Chinese officials was instructive in familiarising them with other law enforcers' attitudes to Three thousand CNY, including cash from Business Tianjin, people-traffi cking, while also showing them the valuable role has been donated to the Ruili Burmese Women's Support that NGOs can play in both stemming the fl ow of traffi cking Group, which helps victims of human-traffi cking in Yunnan. victims while also caring for victims.

FEB 2011 I Business Tianjin 67 Arts & Leisure Book Review

Selling Big to China: Negotiating Principles for the World’s Largest Market by Morry Morgan Review by Joei Villarama

Most of the marketing, selling and bargaining principles contained in this book apply to all places, not just the world’s largest bazaar. The book covers the basics plus a whole lot of common but oft-forgotten sense invaluable to anyone in this ﬁeld. For China watchers and movers, there are insights into the psyche of the Chinese from four main generations. Morry Morgan weaves these into his expositions along with lessons from more than 10 years of running a training company with customers from different cities and provinces in China.

The “Balinghou” are children from the ‘80s born when the one-child policy was established and who grew up in relatively wealthy households. The “Children of the Revolution” (1965-1978) were born in or just after the disastrous Cultural Revolution and brought up by parents with positive Communist ideals. The “Old Language: English Red Guards” (1950-1964) today manage many of the country’s state-run organisations and private busi- Hardcover: 224 pages nesses and were raised in a culture based intensely on relationships, not meritocracy. “True Reds” (1950 Price: 350 CNY + Shipping and earlier) may be of retirement age but if they happen to be your clients, dealing with them carries extra challenges as they tend to be less open and more cautious.

Divided into four main sections apart from the conclusion, the book takes the reader step by step from the knowledge to the sales call to negotiation and keeping the client satisﬁed. It starts with a Target Acquisition Equation and works up to a formula for rating your leverage. It details the dynamics of sales from needs analysis to troubleshooting problems with clients, from the moment you step into the building until you triumphantly get the contract, and the crucial follow-up work after delivering the goods or service, including handling complaints.

A lot of the examples and stories come from Morgan’s experiences in ClarkMorgan Corporate Training, the company he co-founded in Shanghai with Andy Clark. Six years after their humble beginnings, the company was declared Training Firm of the Year. Through this publication, Morgan has generously shared both the high points and low points from the firm’s history, including a trainer who got drunk and injured himself on an intercity train on the way to a team-building event. This was related to illustrate a point about apathy as a cause of conflict avoidance, which characterises one of the five negotiation personality types.

Tom Stader, Executive Director and Founder of The Library Project Charity, which donates books and libraries to underﬁnanced schools and orphanages in the developing world, eagerly marked his copy of the book with a pen and highlighter. He said, “We totally changed the way we are structuring events because of the insights Morry had about engaging individuals in China.” This is one of the testimoni- als printed on the back of the book, which after reading, all the more resonates.

If you want to purchase this book, please send an email to [email protected], we will deliver the book to your door.

Quotations of the month

There is nothing worth more than this day. ____ Feb Goethe

Try not to become a man of success but rather try to become a man of value. ____ Albert Einstein

At twenty years of age, the will reigns; at thirty, the wit; and at forty, the judgment. ____ Benjamin Franklin

Being powerful is like being a lady. If you have to tell people you are, you aren't. ____ Margaret Thatcher

68 FEB 2011 I Business Tianjin Last Word Arts & Leisure

Are Chinese mothers better?

By Mike Cormack

fascinating piece appeared in the Wall Street Journal on 8 January by Amy Chua, a professor A at Yale Law School, titled “Why Chinese Mothers Are Superior” (you can read it at on.wsj.com/hp4Ynx ). The author was upfront about what some might see as harsh tactics in pushing her two daughters to pursue excellence, and made me consider the differences between “Chinese” and “Western” parenting. I put the names in quotation marks because, of course, some Western parents are “Chinese” in their parenting style, and vice-versa – no nationality has a monopoly on parenting styles. Nonetheless, the image of the hectoring Chinese mother is commonplace in the Western mindset.

Mrs. Chua cites what she believes are the three major differences between Western and Chinese parenting. First, “Western parents are extremely anxious about their children's self-esteem” while “Chinese parents … assume strength”. Second, “Chinese parents believe that their kids owe them everything… [therefore] Chinese children must spend their lives repaying their parents by obeying them and making them proud”. And third, “Chinese parents believe that they know what is best for their children ... That's why Chinese daughters can't have boyfriends in high school and why Chinese kids can't go to sleepaway camp.”

Having formerly been a teacher in the UK and China, and a Scout leader too, I’d like to put forward my own observations. Regarding her three main differences, she may have some good points, but from them she draws It isn’t just a matter of believing a child the wrong conclusions. To take the first point: children are resilient, true, and the current Western tendency can get an A; it’s an appreciation that to wrap up children from risk or danger is unwise. But there’s more to life than academics. this does not mean that a parent is therefore justified in calling a child who comes home with an A-minus and that they must get A grades and learn the piano or or even a B on a test “stupid”. Reacting with horror at a violin. Okay, that’s her choice. But to me, her children’s grade that’s merely good rather than excellent devalues curriculum (indeed, their world-experience) is extremely what efforts were made in attaining that grade. To be narrow. Where are the sports, the hobbies, the play, the sure, you can as a parent go through the paper and natural world, the self-reliance, the friendships? Where work out how to improve. But dismissing everything is the unfilled time that forces you to look within and that isn’t first class shows a freakish competitiveness consider what you want to do? I believe that Chinese that distorts school into being an insane grades-chase. It mothers who cram as much education down the necks isn’t just a matter of believing a child can get an A; it’s an of their children, rather as farmers do to geese for foie appreciation that there’s more to life than academics. gras, are entirely misguided on personal development. There’s education, the storing of facts. But far more Which brings me to the next point. Mrs. Chua says she important than this is knowledge, which can only come would never let her children have sleepovers, playdates, from experience.

FEB 2011 I Business Tianjin 69 Arts & Leisure Last Word

When I have spoken with Chinese spending hours at an internet café, disciplining them. The tick-tock university students, I have avoiding direct social contact. I swing between authoritarianism consistently sensed that they have do not think this is a recipe for a and anarchy which has long little life experience, and all the healthy society. affected Western culture is facts crammed into their minds do obviously in an anarchic phase, not compensate. To put it another As for Chinese children owing and children accordingly often way: the most valuable things I their parents everything, I have have it too easy. I’ve sometimes learned at school were outside sometimes been embarrassed by been surprised by the ease with the classroom. Many of my most Western children and their selfish which parents give up when it formative experiences were gained behavior towards their parents. comes to their children smoking, as a Boy Scout, where I learned Wishing to make your parents proud for example, or quitting extra- a million practical skills and how is a good thing, but spending your curricular activities. The absence of to apply them: I gained such life repaying them? It sounds like boundaries is as much a problem valuable life skills as teamwork, Chinese parents see children as an for some children as an over- leadership, self-reliance, concern investment, something at which structured life is for others. It’d be for others and how to engage with you work for the sake of the return. easy to end saying that the forms strangers. (And my schoolwork There’s nothing wrong with seeking of parenting should be balanced improved in direct correlation the best for your children, but out; in fact, I think both are wrong. with the time spent in Scouts. If seeing your children as investments Hectoring parenthood is as bad as my mother had been Mrs. Chua, I strikes me as narcissistically self- absent parenthood. Parents should would never have been allowed to centered and entirely devaluing for help children grow as individuals. join!) My experience with Chinese the child. I doubt that anyone likes The more life-experiences they students suggested that many to feel like a horse bred to win the have, the better; the more enriching of them lacked such skills. I was Grand National. a child’s experiences, the better. often surprised, for example, at This requires a broader vision of the social backwardness of the I can’t disagree entirely with what it is to be a parent than Mrs. male students, who seemed to Mrs. Chua, however. I do believe Chua would recognize, but I think have their adolescent energy and that Western parents are often her children would be far the better boisterousness drummed out reluctant to push their children to for it. them; they would have been happy achieve, and sometimes fearful of

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