Contents Business Tianjin / November 2012 06 BIZ BRIEFS 12 NUMBERS ECONOMY 14 November China Economy Report DIALOGUE 16 Fintan O’Doherty, General Manager, Tangla Hotel Tianjin

20 John Williams, Managing Director, International SOS’ China

SUMMER DAVOS 24 Crisis Zone Tianjin: Where is the Water? FEATURE STORY 28 Hollywood Comes to China INVESTMENT ▲ Specialist in Luxury Service: Tangla Tianjin’s Top Man 30 Indonesia: Asia’s Ideal Investment Opportunity As part of the prestigious Luxury Collection hotel ensemble, the Tangla Hotel Tianjin is taking the Chinese hospitality industry to new highs. Through its elite service and stunning LEGAL ASSISTANCE blend of oriental and international ambience, the Tangla brand is differentiating itself from 36 China VAT reform pilot plan in Tianjin the countless big name international hotel chains on the market. See P16 POLICY EXPLANATION 40 Latest Developments on Foreign Investment ◄ Indonesia: Asia’s Ideal in the Medical Care Industry in China Investment Opportunity TECH “Invest in remarkable Indonesia”. That is 44 Iphone 5: Buy or Sell the advice of the island-nation’s Investment Coordinating Board in its latest adverts IPR aimed at enticing foreign investors. 48 Utility Model Patents in China Perfectly nestled between Asia and Australia’s booming consumer markets, HR Indonesia presents one of the best money 50 HR Localisation is Much More Than Hiring making opportunities of our era. According Natives to the IMF’s estimates, the country’s GDP will grow by an impressive 6.1% this year. 53 NEW APPOINTMENTS See P30 REAL ESTATE 54 Prime Retail - China in High Demand ◄ Chinese VAT reform to pilot in MANAGEMENT Tianjin 56 Social E-commerce In August 2012, China’s Ministry of Finance (MOF) and State Administration MARKETING of Taxation (SAT) announced that the pilot 58 E-mail Marketing: Good Advices and program in relation to the Chinese indirect Warnings tax system, concretely concerning the Value Added Tax (the VAT pilot program), CHAMBER REPORTS which was formerly launched for Shanghai only, would be effective to another eight 62 EU, Germany, US, Benelux, CICC cities/provinces; including Tianjin. This PAST EVENT VAT pilot program would certainly have significant tax implications in Tianjin’s 65 The Astor Hotel Tianjin Bentley Gala Dinner service industries. See P36 66 EUCCC Gala Dinner: A Night with the Stars 68 EVENT CALENDAR ◄ Politics vs. Policy: 70 BUSINESS CHINESE LESSON A Credibility Gap 72 TRANSPORTATION There’s hardly a dull moment when 74 LISTINGS following the love/hate relationship between the United States and China. ARTS & LEISURE This year, however, seems to have a bit 78 Wine Notes more intrigue than usual. 2012 marks a significant time for the world’s two largest 80 Book Review & Quotations economies. See P81 LAST WORD 81 Politics vs. Policy: A Credibility Gap

Nov 2012 I Business Tianjin 3 Business Tianjin NOVEMBER 2012 Dear Readers,

The economy in China is at a cross road. China’s economic growth rates are, for the first time in history, failing below the expectations of the government. A 7.5% GDP growth was forecast for 2012, but we are now hitting September’s projections under these figures. Inflation has been brought under control and banks have made efforts to ease credit, which could improve the chances of reaching the country’s macroeconomic goals.

The business environment has seen some deterioration recently and a number of foreign firms have already decided to move some parts of their new projects back to their home countries. It will depend on the decisions of the new government to ease monetary and fiscal policies, but in all honesty, we don’t expect many changes to take place until the middle of next year when the new leaders will take full control.

www.businesstianjin.com We are still very confident that China will be able to support to its own domestic industrial sector, but Chinese entrepreneurs need to move ahead to cover the gap being left by foreign firms. It will obligate Chinese companies to MANAGING DIRECTOR J. Hernan become competitive globally in many sectors where they are now only leading [email protected] at home.

EDITORS The unfavourable economic fundamentals of China’s big trade partners, the Claire Liu, Josh Cooper [email protected] USA and Europe, raise uncertainties for the future, but China has signs of recovering exports.. I suggest that you check our monthly Economy report for CONTRIBUTORS more details. Mark Godfrey, Manuel Torres Diego D’Alma, Matthew Baum Heidi Skovhus, Simon Bai Our cover story this month is the Tangla Hotel’s General Manager, Fintan O’ Christopher Ribeiro, Hyuk-tae Kwon Doherty, who is taking the Chinese hospitality industry to new highs through Philippe Healey, Justin Toy his incredibly vast experience and refreshing management style. Oscar Ramos

PROOFREADER We also have a superb feature dialogue with prolific environmental campaigner Debra Cresswell Ma Jun, in which we discuss the tremendous impact China’s economic development is having on its environment. His work has been recognised GRAPHIC DESIGN Li Weizhi, Gao Jie many times, most recently with him being awarded the prestigious Goldman [email protected] Environmental Prize 2012. Don’t miss this article. I was honoured to meet him in person and talk to him to learn what many Chinese people really think about SALES & ADVERTISING Zhang Danni, Diana Han, Naomi Li environmentalism in relation to sustainable economic growth. [email protected] A night with stars! Was the main theme for the European Gala dinner, which MARKETING, EVENTS & PROMOTIONS was celebrated in October. Also last month, the organisers of the Pink Ribbon Yueyue Wang [email protected] Gala Dinner treated all the foreign and Chinese guests who attended the event to a lovely evening. Many thanks go to the TICC and its members. PHOTOGRAPHER Wang Yifang Check our online version www.businesstianjin.com to get more updated DISTRIBUTION information. Tang Xiaoyan, Lei Hongzhi [email protected] Best regards, ADVERTISING AGENCY InterMediaChina [email protected]

PUBLISHING DATE November 2012

Business Tianjin is FREE ONLY for Members J. Hernan TEL: +86 22 2576 0956 Managing Director | Business Tianjin Magazine ISSN 2076-3735 [email protected]

4 Nov 2012 I Business Tianjin Biz Briefs Biz Briefs

TIANJIN NEWS The 2nd Lotte Department Store of the Sheraton Tianjin, we held special Tianjin unveils its 4 main functional Tianjin International Cruise Home Asian Development Bank funds Has Opened in Tianjin celebration activities for the hotel staff, in zones for the next 10 years Port to be expanded cold chain facility in Tianjin Wellington College History Trip to Business Tianjin, 22 September which an elaborate lunch was provided, People’s Daily Online, 11 October People’s Daily Online, 19 October Sino Ship News, 17 October Europe an interesting hotel knowledge quiz Business Tianjin, 16 October was carried out and many pleasantly surprising gifts were given to the staff.

IKEA: Sound, Comfortable Sleep Business Tianjin, 19 October

On 22 September, Tianjin vice mayor Ren An expansion of the Tianjin International The Asian Development Bank (ADB) has Xuefeng and South Korean ambassador Cruise Home Port has been planned in provided its first-ever logistics-related loan Wellington College has been open for just to China Kim Min-Jung came to the Lotte New city planning for Tianjin will see order to encourage the cruise tourists to establish a large capacity cold chain over a year and yet, in this comparatively Department Store in the Tianjin Cultural the city divided into four main functional and ships which are flocking to the city. facility at the port of Tianjin. “The project short time, the school has already Centre to open the store with the store’s zones within the next ten years. The zones The Phase II construction will add a 422- will not only address growing concern over established an enviable reputation for its president. This is the fourth store wholly will include a priority developing zone, metre coastline to the terminal. Berths food safety due in the People’s Republic sense of the past. The pupils study many owned by the company and the second key development zone, ecological function reserved for the Tianjin-Kobe cruise ship of China (PRC) to lack of infrastructure historic periods and topics, drawn from one of its kind in Tianjin. It has nine zone and an exploitation-prohibited zone. Yanjing and the Tianjin-Inchon cruise in cold chain storage and distribution. all over the world, and, in common with functional areas including a performance On 19 October, IKEA held a media The priority development zone will cover ship Tianren have also been planned. It’s also critical for agriculture product this global approach, forty pupils and four hall, a lounge, a golf demo room, a beauty event on the theme of sound sleep. IKEA a land area of 54.1% and will include the The two berths are scheduled to be open transportation and storage,” said Lu Shen, teachers will embark upon Wellington’s nursing centre and a roof garden etc. In put forward its idea that “the mattress Heping District, Hexi District, Hedong to roll-on/roll-off ships during vacant an ADB Investment Specialist in the Private first History Trip, to Germany, Poland and addition to the famous classical South that suits you is the best”. Furthermore, District, Nankai District, Hebei District, period for the Yanjing and Tianren. They Sector Operations Department. Tedahang the Czech Republic in November. The party Korean brands, Lotte has many other they advised that “you’d better lie on Hongqiao District, Dongli District, Xiqing will have the capacity to store 100,000 Cold Chain Logistics (TCCL) will use arrives in Berlin, where sites visited will fashionable brands such as Tory Burch, the mattress to feel its texture” and District, Jinnan District, Beichen District, vehicles and 60,000 TEUs of containers the CNY 150 million loan to introduce include the Brandenburg Gate, the Olympic Paul Smith, Kate Spade, Louis Quatorze, “you can buy high quality mattress in Wuqing District, Baodi District and Jinghai per year. As of 18 October this year, the an international common warehouse stadium and Sans Souci- Frederick the Kenzo, White Collar and Harman. IKEA”. These ideas are different from County; focusing on the development of Tianjin International Cruise Home Port management system, logistics management Great’s palace. In Poland, visits will the traditional ideas that “the harder the finance, business trade, cultural creation has received 36 international cruise ships and trading system that can serve as a be made to the historic city of Krakow Upholding the Best Service, mattress, the better it is”, “you can know and leisure tourism. and 120,000 passengers, up by 16% and model for the development of the cold and to the former concentration camp at Sheraton Tianjin Hotel Celebrates the quality of the mattress only by sitting 66% respectively on the numbers in 2011. chain logistics industry in the PRC. Auschwitz. The trip will end in Prague, the 25th Anniversary on it” and “good mattress costs a lot”. where highlights include Prague’s imposing Business Tianjin, 18 October Besides, IKEA offers customers a chance hill-top castle, St. Vitus Cathedral and the to return the products that they don’t like tragic village of Lidice. The intention is and get a new one within 90 days. that the History Trip will become an annual event at Wellington. Plans are already being Turn the World Blu made to introduce a Parents’ History Trip. Business Tianjin, 18 October

Hyatt Regency Jing Jin City Resort and Spa Hosts the 2012 Autumn Hyatt Cup Golf Tournament Business Tianjin, 13 October

On 28 September 2012, Carlson Hyatt Regency Jing Jin City Resort and Rezidor, the veue’s Hospitality Spa recently hosted the 2012 Autumn Management launched ’Turn the World Hyatt Cup Golf Tournament at the Royal Blu’ event in all Radisson Blu Hotels Riviera Golf Course in Jing Jin City. This worldwide. Radisson Blu Plaza Hotel is the third time that the resort has hosted The year of 1987 witnessed the glaring Tianjin welcomed more than 120 guests the charity event and over 130 friends birth of the Sheraton Tianjin Hotel - attending the party, which was also from different areas enjoyed a day of Tianjin’s first five-star hotel. Enjoying the opportunity to introduce their new golf followed by an awards dinner at the international approvals and having such General Manager, Mr. Clive Murray. resort. The highlight of the awards dinner legendary beginning, the Sheraton Tianjin In addition, there were performances was the announcement by the resort that has provided an oasis of serenity and has from the hotel sales team and guests a CNY 50,000 charity fund would be combined business, leisure, travel and greatly enjoyed the ’Blu’ themed dining allocated to an orphanage in Tianjin and entertainment over 25 years of excellence. cocktail to celebrate the event. to a primary school in Baodi County. In order to celebrate the 25th anniversary

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

FINANCE China’s reliance on ore imports China posts sharp slowdown LAW & POLICY LOGISTICS TELECOM may surge in tax revenues in the first nine Overseas energy projects get Bloomberg News, 9 October months of 2012 Investors hail draft fund laws Korean Air’s In-flight menu is Telecom giants hit back at green light Xinhua, 23 October China Daily, 9 October named one of the world’s best allegations China Daily, 10 October Tax revenues slowed sharply in the Skynews.co.kr, 19 October China Daily, 9 October first nine months of the year due to Korean Air recently won top honours in the economic downturn, falling prices Travel Weekly’s 2012 Magellan Awards and structural tax cuts, the Chinese and was ranked amongst the world’s best Ministry of Finance said yesterday. In for its in-flight Menu. The airline has the first three quarters, tax revenues been at the forefront of in-flight cuisine nationwide rose 8.6 % annually to CNY innovations by launching the first organic Energy programs are among 15 major 7.74 trillion (USD1.24 trillion); 18.8 breads and salads in 2006 and introducing international economic projects that have %age points slower than the growth its Jedong farm-raised meat and poultry in been given the go-ahead in a major effort to China’s dependence on imported seen in the same period last year, the 2009. “What makes our in-flight cuisine boost the country’s global presence in the supplies of iron ore, a raw material ministry’s statement said. It said that Venture capital and private equity unique is that so much of our premium solar sector and provide more opportunities for making steel, is poised to rise to revenues from production-related taxes fund managers have welcomed a draft meats, poultry and vegetables come from Two telecom giants rejected as for Chinese companies. The National almost 80 % of consumption by 2015, saw slowing growth from a year earlier. amendment to the Law on Securities our own farm in Korea,” said Korean “baseless”. The findings of a US Development and Reform Commission, according to Wood Mackenzie Ltd. Revenues from value-added taxes grew Investment Funds, aimed at protecting Air Vice President, John Jackson. The congressional investigation accused China’s top economic planner, announced Imports account for about 70 % of by 5.8 %, down 12.9 %age points from investors’ interests and reducing 1,700 livestock and more than 5,200 them of posing a national security risk. the approval of 15 overseas projects on Chinese supply now, Paul Gray, the the same period last year. Revenues financial risks by imposing new chickens raised at Korean Air’s Jedong The allegations indicated growing Monday. Energy projects account for researcher’s principal iron-ore market from corporate income tax expanded by regulations on privately offered funds. farms are antibiotic-free and the farm has commercial disputes between China about half. Silicon cell producers Hareon analyst, said yesterday at the 7th EU 14.7 %, down 21.1 %age points. The A second review of the amendment received an environmentally friendly farm and the United States, especially in Solar Technology won approval to build Iron Ore Conference in Vienna. He ministry attributed the deceleration to started on Tuesday at the opening certification from Korea’s Ministry for the high-tech sector, trade experts a 122-megawatt solar-panel power station estimated the country’s “medium-term” weakening economic growth, lower session of the bimonthly meeting of the Food, Agriculture, Forestry and Fisheries. said. Huawei Technologies Co and in Romania. Winsun New Energy also import need for the commodity at 50 price levels and slowing property National People’s Congress Standing In addition, the feed for Jedong’s cattle and ZTE Corp rejected the “baseless” won approval to establish solar power million metric tons a year. China is sales growth, as well as structural tax Committee. The first review was in poultry including barley, wheat, oats, and the findings of a US congressional stations in Italy and Greece. Solar panel the world’s biggest steel producer and reduction policies. June. The draft document specifies corn is also grown on the farm. Korean Air investigation that accused them of manufacturers have been hit by trade importer of the ore. It will consume regulations for private equity funds, is a three times Mercury Award winner and posing a national security risk. friction recently but power stations may more than 1.2 billion tons a year by including its contracts, investment the airline continues to raise the bar on in- meet less opposition as they provide local 2015, a Wood Mackenzie presentation scope and rules for fund managers. flight cuisine. employment, experts said. at the conference showed.

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

GENERAL New Zealand-China cooperation slows methamphetamine supply Mo Yan wins Nobel Prize for Literature People’s Daily Online, 24 October China Daily, 12 October Joint efforts with China’s customs authorities have helped stem the supply of methamphetamine precursor drugs into New Zealand, the New Zealand government said on Tuesday. Customs Minister Maurice Williamson said that more than 1.2 tonnes of ephedrine andpseudoephedrine was captured by New Zealand Customs in 921 seizures in 2009; which was a record high. “In the first nine months of this year just over 300 kilograms was intercepted in 264seizures,” Williamson said in a statement. The government has focused on attacking the supply, manufacture and consumption of methamphetamine because of its dominance of the illicit drug market, he said.

Switzerland’s ABB is to boost its China presence People’s Daily Online, 23 October

Writer Mo Yan won the Nobel Prize for Literature on Thursday. The Swedish Academy, which gives out the annual prizes, described Mo’s works as “hallucinatory realism” merging “folk tales, history and the contemporary”. “Through a mixture of fantasy and reality historical and social perspectives, Mo Yan has created a world reminiscent in its complexity of those in the writings of William Faulkner and Gabriel García Márquez, at the same time finding a departure point in old Chinese literature and in oral tradition,” according to the citation for the award. Mo, 57, whose real The cooling economic expansion and rising labour costs in China name is Guan Moye, is the first Chinese writer to win the have driven a number of foreign manufacturers out of the country. honor, which also comes with a financial award of 8 million But Swiss engineering group ABB Ltd said that it will stay and Swedish krona, or USD 1.2 million. plans to attract more Chinese talent. “We did not come to China to make use of its low labour costs 20 years ago,” Claudio Facchin, president of ABB North Asia and China said, in a recent interview. CHINA IN THE WORLD “And despite the economic slowdown in the country in the short Big Apple tempts Chinese buyers term, there is a consolidated view for a strong market in the long China Daily, 8 October run,” he said. But not everyone is as optimistic. According to a survey recently conducted by the Boston Consulting Group, of 106 senior managers at American manufacturing companies with annual sales revenues exceeding USD 100 million, more than one- third said they are considering or planning to move their production facilities in China back to the United States.

Arrears in the Spanish banking system reach 10.5 % People’s Daily Online, 19 October Arrears in the Spanish banking sector set a new record in August reaching 10.5 %, according to data released on Thursday by the Bank of Spain. It is the first time that arrears have passed the 10 % mark and this figure means that banks, saving banks, cooperatives and credit finance entities have EUR 178.579 billion in loans and unpaid credits. This figure experienced a 39.7 % increase from August 2011 (EUR 127.785 billion in arrears). The non-performing loan rate of Long-term views, rather than ‘quick profit’ mentalities, drive the credit finance entities reached 8.97 %, which represents New York home prices. It used to be that Chinese buyers who EUR 3.541 billion. The Bank of Spain did not publish separate purchased property in New York did so because the city’s data for the arrears of the remaining entities, whose joint non- durable real estate market was both a reliable and potentially performing loan rate reached 10.6 %. lucrative investment. Now, however, affluent Chinese buyers are more likely to seek out Big Apple properties as a way To subscribe to our daily Biz Brief E-newsletter, please to hang on to their wealth, according to real estate brokers. email [email protected] Wealth preservation is a factor and “they take a long-range view’’, said Kevin Brown of Sotheby’s International Realty.

10 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 11 Numbers 6 920 13 Six Italian scientists and 920 people in the ancient city For 13 years, a young Chinese an ex-government official of Henan province, China man called Songyang has have been sentenced to took part in the activity of taken good care of Hans, a six years in prison over the writing Chinese character of Swedish man whom he met 2009 deadly earthquake in Chrysanthemums with brush while studying in Britain. Song L'Aquila. Prosecutors said the at the same time, breaking promised to take care of Hans defendants gave a falsely Guinness World Records of 575. and brought him back to reassuring statement before china after graduation. the quake. The 6.3 magnitude quake devastated the city and killed 309 people. 92 kg Recently, a 6-year-old British 1.12 boy, called Max, has harvested As the tallest dog in the world, a huge pumpkin weighting in Zeus, an American Great Dane at 92 kg, four times his weight. is 1.12 meters tall. He and his He grew the pumpkin to family live in Michigan now. celebrate Halloween. 740 During the longest ever golden week in China, 740 million people, half of China's population, had travelled around the country and the world. 4519 96 Japanese girl Asako Kanda Indian peasant Ramjeet has 4519 Hello Kitty products, Raghav is the world’s oldest the largest collection of hello dad. At the age of 96, he Kitty in the world. welcomes his second child into the world, earlier this month. 487 50,000 The number of Chinese 50,000 young martial art senior citizens is expected to practitioners are practicing skyrocket from the current kung fu on the way to 185 million to 487 million, or Songshan Shaolin Temple in 35 % of the population, by Henan province, to welcome 76.2 2053, according to the China participants to the Zhengzhou National Committee on Aging. International Martial Arts Archie, The shortest Dexter Festival. cow in the world, is only about 76.2 cm. 6 billion Wu Yajun is China’s richest woman and richest self-made woman in the world for the second year running with a personal fortune of US$ 6bn.

12 Nov 2012 I Business Tianjin Economy Economy

Customs showed. This was much higher than August's The highest rate since Bloomberg started compiling the 2.7% rise and well above the median forecast of 5% by data in 2002 was 4.3 % in 2009. November China Economy Report 13 economists in a Wall Street Journal survey. By Hyuk-tae Kwon The Ministry of Human Resources and Social Security Meanwhile, China's broadest measure of money supply, conducts a quarterly survey of employment in 100 M2, was up 14.8% at the end of September compared cities. Its latest report indicated 6.433 million positions China slows down and downside risk continues Premier Wen Jiabao took the opposite stance. Xinhua with a year earlier, accelerating from the 13.5% rise were posted in the third quarter, while there were China’s economy slows down for seven quarters in a row quoted him saying that the economic situation in the third at the end of August and beating expectations of 6.1 million job-seekers. The ratio between positions and this year’s third quarter’ economic growth stayed at quarter was relatively good and that the government was economists, data from the People's Bank of China available and sought was unchanged from the second 7.4% - missing the government’s target of 7.5% for the first confident of achieving its 7.5% target. Wen also said that showed Saturday. Analysts said that the September quarter. time in the last three years. Beijing would not relax restrictions in the housing market rise, which was above the central bank's target of which are currently aimed at cooling home prices. 14% growth in M2 for the year and the 13.7% median In Shanghai, the easiest work to find was “restaurant forecast of 15 economists surveyed by The Wall Street waiter and waitress,” with four positions available for Some analysts cite electricity usage growth which is Journal, was a sign of a slight loosening of monetary every job seeker, the study indicated. Least promising running at roughly half the average rate of the last five conditions that could help in the drive to boost China's was “vehicle driver,” with four applicants chasing each years as a manifest sign of economic malaise. Data on still sluggish economic growth. position. Wednesday 17 October showed that power consumption growth had slipped to an 8-month low contrasting sharply Chinese job market still strong with double-digit growth just a year ago. The slowdown in China’s economy isn’t making it any Visit us online: easier for Liu Fenglin to hire 10 experienced welders But Ting Lu, chief China economist at Bank of America/ this year for his heating-equipment maker, according to btianjin.cn/121101 Merrill Lynch in Hong Kong, believes markets are overly Bloomberg. worried about the risk of a hard landing and says that financing conditions have been eased significantly and Liu has managed to find just three employees even system-wide credit is growing even more rapidly than with the economy in its deepest slowdown since the official bank lending data suggests. China’s inflation was close to the slowest pace in two years global financial crisis. “The scenario when migrant in September, giving the government room to ease policies workers will throng around your desk after you hang That's enough to stop economic growth from falling should the economy drastically deteriorate further. the job poster is long gone,” said Liu, 46, whose further beyond the third-quarter 7.4% bottom, Lu company is in the southern city of Zhuhai. “It’s getting anticipates, but he cautions that it will not engender a Consumer prices rose 1.9% from a year earlier, while worse year by year.” sharp bounce in activity; forecasting full-year growth of the producer-price index dropped by 3.6%, the National just 7.6% for this year and next. Bureau of Statistics said on its website today. China’s Last month, Vice Minister Xin Changxing said the imports increased 2.4% from a year earlier, while employment situation was generally “stable.” The nation "It might take another couple of quarters for growth to overseas shipments climbed by 9.9%, the customs created 9.18 million urban jobs in the first eight months of truly bottom out," Lu wrote in a note to clients. "This cycle administration said on 13 Oct. the year, Xin said, exceeding the full-year target of 9 million. might be more U-shaped than V-shaped."

Chang Jian, a Hong Kong-based economist at Barclays Plc Trade and money supply grows but momentum remains who previously worked at the World Bank, said new entrants uncertain to the labour market have fallen from 4 million to 5 million China’s monthly trade and money supply data released in a year from 10 million in the early 2000's. That means “6% to early October provided a positive outlook for the world’s 7% growth is about right for China,” she said. second largest economy. The number of people aged 15 to 24 is projected to "The trade data is a positive sign for the Chinese economy," shrink 11.3% to just under 200 million in the five years said Citigroup economist Ding Shuang. "But it remains to through to 2015, after expanding 1.3% in 2005-2010 be seen whether import and export growth can remain at and 13.2% in 2000-2005, according to United Nations these levels," he added, noting that unfavourable economic data. The group’s share of the population will decline fundamentals in the U.S. and the European Union— to 14.6% in 2015 from 16.8% in 2010, sliding to 11.4% "The risks are stacked on the downside," said Jeremy China's two big trade partners—raise uncertainties. in 2030, the UN forecasts. Stevens, China economist at Standard Bank in Beijing, in an interview with Reuters on Wednesday China's trade surplus widened in September as exports Difficult to follow Chinese employment rate 17 October. "Most macro figures, like industrial rose on improved overseas demand and imports There’s no reliable way to track changes in China’s production, investment, retail sales and so on, have recovered slightly, according to data released Saturday. employment according to Bloomberg. The broadest averaged a lower growth rate in the third quarter than Exports were at a record monthly level of USD 186.4 figure the government gives is the quarterly urban in the second, suggesting additional momentum loss billion in September, rising a solid 9.9% from a year jobless rate, which excludes migrant workers and has over the quarter.” earlier, data from the General Administration of held at 4.1% for eight quarters through June, according to the Labour Ministry.

14 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 15 s part of the prestigious Luxury First of all, please can you give in hotel management. Eventually I Collection hotel ensemble, the our readers a brief insight into was introduced to the Tangla brand Tangla Hotel Tianjin is taking your personal and professional and I have to say that my time with Specialist in Luxury Service: Athe Chinese hospitality industry to background? the company has been great. I have new highs. Through its elite service Well, I am originally from Sligo, near achieved so much already, winning and stunning blend of oriental and the west coast of Ireland, but my career a number of prestigious awards, and international ambience, the Tangla has taken me all over the world. I went I absolutely love working with this brand is differentiating itself from to catering college in Dublin and later extraordinary team. Tangla Tianjin’s Top Man the countless big name international did my MBA at Durham University By Josh Cooper hotel chains on the market. With the in the UK. Throughout my academic What inspires you about working company’s Tianjin hotel serving as its career I was building up experience as in the hospitality industry and flagship venue, this domestic brand a chef, waiter and bartender. After a what do you most enjoy about your is setting new standards for China’s few years of working in various hotels current role? booming hospitality sector. Hotel around Ireland and Britain, I got a From a young age I realised that I General Manager, Fintan O’ Doherty, really good job in the Ukraine. That was wanted to be a hotel manager. As a utilises his unparalleled expertise in a very interesting place to work. I was child I visited a lot of hotels and that high class hospitality to lead one of in charge of the food and beverage for is perhaps where my passion started. the city’s most authentic Chinese style a casino and entertainment complex. Hotels are incredibly interesting and luxury venues. To date he has worked Since then I have held a number of dynamic places to work. With all of the in over 30 hotels, in 15-20 cities and in posts around Asia, including the different departments and activities six different countries; an impressive Hilton in Chongqing, the Mandarin that are going on at the same time, it is and extensive range of experience to in Singapore and a very big hotel in always busy and no two days are ever say the least. Here is what he had to Ho Chi Minh City, Vietnam. The the same. There is an old saying that ‘if say about his work in Tianjin and the latter was particularly fascinating find a job you love, you’ll never work a Tangla hotel and brand. and gave me some great experience day in your life’. I firmly believe that.

16 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 17 However, it is not easy being the international companies in China. So manager of a luxury hotel. I like to therefore, the company culture is very think of my role as being similar to authentically Chinese. It is based on the coach of a football team. You have Taoist and Buddhist principles and to make sure people are developing we have several key points, ‘Harmony, as ‘players’, but it is also extremely Elegance, Excellence, and Serenity’, that important that you get people in guide our interactions with clients and different roles communicating with other staff members. In my position each other. In the position that I am in I have to respect local customs and now, a significant part of what I do is make a conscious effort to understand training the younger members of the Chinese culture. team and helping them to develop their skills. That is what I love to do, working When working with Chinese people with people and sharing my experiences you need to be aware of cultural values within the hospitality sector. It is also such as ‘saving face’. Sometimes certain exciting to be a part of the evolution of members of staff are apprehensive the brand, which is currently expanding about making decisions because across China but eventually aims to they are scared of losing face. It is bring Chinese hospitality to all major important for me to put them at ease cities on the globe. and use humour and politeness to make them feel relaxed in their work. In Vietnam you gave a series of I work with a relatively young team of lectures about ‘the importance of Chinese people, who I would say are communication in hotels’. Can you very driven and keen to learn from give us your thoughts on this topic? western managers like myself. I find Proper communication in the hotel that Chinese people, especially in industry is absolutely vital. It is at the Tianjin, are very easy to interact with. centre of everything we do. In terms of You can really feel the energy in China service, being aware of communication and whilst there are still challenges issues and developing staff members’ to overcome, it is clear that things are abilities to interact with colleagues and going in the right direction. customers is essential. As an example of one the issues that come up in Asia The Chinese hospitality industry is generally, people sometimes avoid eye evolving quickly. It is great to be in contact and this sort of thing because a city which is so dynamic and has they are afraid of being impolite. For so much potential. It is not an easy many of the western guests, however, business environment because we are this kind of behaviour is considered always competing with the international to be a little bit too shy and they brands out there. As more Chinese advantage towering above the city’s to give our clients an elite standard Chinese and foreign clients want and signature features, such as our Tangla feel that a more assertive and inter- people are travelling abroad though, main shopping and business area. The of luxury, as well as a comfortable, we are always striving to deliver a world Ambassadors and our excellent catering personal service is more welcoming. I think our potential customer base is designs and layouts of our guest rooms relaxing environment to stay in. class service services, which will be part of Tangla We also discussed the ways that becoming more discerning in what they are certainly much better than most hotels across the globe. we should talk to guests, meet and are looking for, particularly in terms other places. All of our bedrooms, We have a superb range of dining So tell us what does the future holds greet them etc. First impressions are of authenticity, services and products. including the standard rooms, are at facilities within our hotel, including for the Tangla brand and yourself. I will be here for a while. For me the lasting impressions and therefore it is We need to firmly establish ourselves as least 60 square metres- by far the largest our SoU restaurant with the most We want our brand to be the most number one priority is this hotel incredibly important to get it right. the number one Chinese luxury brand for a Tianjin hotel. They include our extensive seafood buffet in Tianjin, recognisable and sought after in China. in Tianjin. I have been given some on the market and cater to the needs of signature stand-alone bathtubs which the China Bleu jazz bar and Café d’or When Chinese and foreign clients are additional responsibilities within So thinking about your experiences this rapidly evolving clientele. have fantastic views of the city. which offers an amazing business looking for luxury hotels in major cities the company. I am now the Vice in other parts of the world, how breakfast. For events, our ballroom all over the world, we want them to President and I am also responsible does the Chinese hospitality sector What is unique about the Tangla Why should clients who are looking can accommodate over 400 guests and think of Tangla. We are going to use for training many of our managers. compare to elsewhere? Tianjin? for a great place to stay or hold is perfect for weddings, parties and this hotel in Tianjin as our flagship I feel very comfortable and excited China has a long and fascinating We have a number of unique selling corporate events choose this hotel corporate functions. Superb service is venue. This is where we want to perfect by the prospect of working for the history which has given the country points. Of course, being a Chinese over other luxury venues in the city? the backbone of any luxury hotel. We our service and business model whilst Tangla brand in the future. a very distinctive cultural heritage. In company, as part of the HNA Group, Our core values are ‘Harmony, have an excellent team of dedicated we are expanding elsewhere. It will terms of my job here in Tianjin, it is gives us something special and a Elegance, Excellence and Serenity’. and extremely welcoming individuals, be a training ground for new staff very different from my previous roles certain degree of authenticity that Everything we do at the Tangla is lead by our Tangla Ambassadors, who and a testing centre for new products Visit us online: because Tangla is a Chinese brand; our competitors cannot attain. Our guided by these principles. Everything are always on hand to cater to your and services. One thing that we are btianjin.cn/121102 whereas before I have worked for location in Tianjin gives us an excellent from the service to the décor helps us individual needs. We understand what trying to do now is to establish some

18 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 19 Dialogue Dialogue What are the major challenges of and challenging environment in and foreign companies need to managing this kind of organisation? which to work. recognize and manage these risks. Bringing Excellent In the past, healthcare was not a One of the most important things strongly promoted area for foreign The Chinese legal structure has that we do for our clients is provide companies to be involved in China. become much more transparent and information and guidance to our Healthcare to Tianjin’s So the regulatory framework has organized, particularly in Beijing and members, in a way that they are always been challenging for us, Shanghai, although challenges still familiar with: we can advise which Expatriate Community particularly navigating the licensing remain in second and third cities. hospital's to go to, which doctor's to process and obtaining permission to see, we can arrange appointments, open new clinics in China. Can you give our readers some help with translation and also An interview with insight into the work that accompany patients. At our clinics, Staffing and retention is also an International SOS does in China? we provide high quality international John Williams, Managing Director, ongoing challenge; bringing on We have been in China since the standards of healthcare that you board highly-qualified doctors and late 80s and are therefore very well would expect abroad. We have a International SOS, China professionals with the appropriate established. Today we employ more 24/7 assistance centre that directly experience. Attracting foreign than 600 people in China, more than connects to the other 27 assistance doctors and other experts to come half of which are medical professionals. centres we operate around the globe to China to work and live can be and we provide on-site medical challenging because of concerns International SOS’ mission is to services on 32 client sites in China. about air quality, cultural and look after the needs of our clients We also support Chinese clients language challenges and access to and their demand for international- who have their operations in other education. Attracting the best and standard healthcare. Health risks in parts of the world, from Mongolia the brightest amongst Chinese China vary depending on location to Niger in Africa. nationals is a continual challenge in the war on talent in China.

You have been working in China for 24 years. What kind of changes have you seen in the business sector over your time here? I have witnessed changes in every Tell us about your professional background aspect of doing business. In the 1980s and your career highlights so far. when I first arrived, it was difficult I originate from the UK and graduated from finding staff that spoke English the University of Leeds and Fudan University and had the right skills. However, in Shanghai. I started off in 1986 in London today there is a large pool of talent as an insurance broker and in 1989 was in China with very strong skills and appointed as General Manager of their China experience. There has been a large subsidiary, which took me to Beijing. In increase in salaries over that time 1998 I joined International SOS as General which can mean challenges in terms Manager and am currently Managing of managing costs for businesses. Director for China and Mongolia. There is a younger generation of Career highlights so far include government officials that are very breakthroughs with securing licenses in willing to help find solutions for China, which are always a challenge to foreign businesses to enter markets obtain. I succeeded in getting my former and are willing to help overcome employer the first-ever insurance broking entry barriers. Previously it was license in China and have worked closely more challenging for businesses with government bodies to achieve many key to enter these markets. At the licenses since. Other career highlights include same time the healthcare sector facilitating the first-ever medical evacuation has undergone huge reforms in between mainland China and Taiwan, recent years with very significant arranging the partnership with the Ministry state sector investment which has of Foreign Affairs to provide medical improved physical infrastructure assistance to Chinese diplomats overseas and and has begun to address many of the mass evacuation of Chinese tourists after the inadequacies of the State health a bus accident in Hoover Dam, USA, in 2009. system. This makes it an interesting

20 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 21 Dialogue Dialogue

industries globally, as an assistance organization that provides a plethora of healthcare and security services for global clients wherever they may be. Our advantage is the high quality and standards across the globe and vast network which we can provide: we handle everything from routine medical or security advice, to the most challenging operations across borders such as mass evacuations and acute trauma cases. So wherever you are in the world and whatever problem you have, we can help.

As the international community in Tianjin is rapidly expanding, are you seeing more people turning to International SOS for assistance with their medical needs? Given the expectations of our clients in Tianjin for international standards emergency response system. For In the coming years, as people and of healthcare, we have expanded International SOS members, this companies increasingly go more our own services by opening a new process is simplified as we can global, we hope to establish an even clinic in Binhai as an addition to our coordinate with ambulances or stronger foothold as the company existing clinic in downtown Tianjin. a range of medical facilities as that looks after all people that go Our clinics connect our members necessary and provide valuable abroad for work or personal life. In to emergency services, primary care language support and medical China, as Duty of Care awareness and dispensary services. We also expertise, so most importantly, the improves, we anticipate more health can coordinate evacuations out of member needs to know is how to promotion programs, training and the Tianjin and Binhai area to local contact our 24/7 assistance center. workplace health measures that hospitals, Beijing or internationally. will benefit organizations and their We intend to track the development In terms of healthcare in China employees. trends of the different demographics generally, would you say that the in Tianjin and Binhai to offer the standard of public health provisions China continues to be one of the most best healthcare solutions to each of is improving significantly as the important recipients of foreign direct these groups of people. country grows economically? investment and so we look forward The general healthcare system has to expanding our services to global For many expatriates, access to improved markedly over the past companies and their employees and healthcare for themselves and their few decades. The government has families locating to China. families is one of the most worrying gone through a sizable program of aspects of living abroad. What is your investment in the past two to three With more Chinese companies advice in terms of planning for medical years and all evidence points to expanding overseas, we are working emergencies whilst living in China? the fact that the government will with these companies to meet their We recommend that expatriates continue to invest. However, the medical and security challenges and How competitive is the and 3rd tier cities. The public sector role at International SOS is to are covered by a reputable global scale of the challenge of providing provide crucial support, in places international style healthcare is developing international wards help organizations, families and insurance company. In addition, healthcare to this vast population is such as Africa and the Middle industry in China and what gives within specialty hospitals that individuals navigate through the individuals should have a medical huge. China’s healthcare is rapidly East. We have done a number of International SOS the edge? allow access to international-style complexities of the system and and security assistance provider, changing and lots of efforts are being challenging medical evacuations The industry is most certainly care, that may have been difficult determine the most appropriate such as International SOS, to whom made for further improvements, such for Chinese employees working in becoming competitive with to access in the past. Despite the medical facilities specific for their they can turn for medical advice, as standardization in emergency North Africa of late, and we are very an unprecedented wave of rapid development, challenges for medical condition and individual information and help in the event of services etc. proud to help bring these Chinese investment from both domestic foreigners when navigating the circumstances. an emergency. nationals home. and international sources. There system remain, such as language Finally, tell us what you see already is a variety of international- barriers, cultural differences, International SOS is not a standard Expatriates should become familiar the future of International style healthcare options in Tier 1 access to ancillary services and hospital or clinic. We are pioneers the medical facilities near them SOS China looks like and what Visit us online: cities, but still developing in 2nd busy medical facilities. Our in the health and security assistance and how to contact the municipal your goals are going forward. btianjin.cn/121103

22 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 23 Summer Davos Summer Davos

resources. Water is a limited resource, transparency and participation from than 700 polluters publicly disclosing but now it’s being destroyed by pollution the government, big corporations and their problems. and overuse. citizens working together. Crisis Zone Tianjin: You measure many environmental What role did you play in the WEF’s Can you tell our readers a little bit factors such as air quality and energy 2012 Meeting of New Champions in about IPE. What are its goals and consumption. Will you continue Where is the Water? Tianjin? achievements so far? attempting to solve China’s water By Matthew Baum Firstly I want to thank the forum for Our goal is pollution control and problems or is water quality a stepping providing me with a large platform promoting sustainable development. stone to a larger scale reform? a Jun has been leading and to reach out to a large audience. We achieve this through expanding Water will remain a major part of our China’s battle against water I participated in an important panel environmental transparency. The work, but air pollution is equally serious. pollution for well over a discussion, on the use of resources real barrier to environmental Therefore, as of 2008 we started making Mdecade. He founded the environmental and sustainable development. I spoke sustainability in China is not lack air pollution records. One reason NGO, IPE in 2006. IPE is a major with Thomas Friedman, the New York of technology or money; it’s the for this was that companies wanted trendsetter which has developed new Times columnist, and also chatted lack of motivation. Government comprehensive pollution tracking. ways of working with the community with the audience. enforcement in this area is weak and The goal is to create a comprehensive to combat major polluters like Apple environmental litigation is difficult. environmental database. Another Inc. His hard work has been recognised I wanted to bring civil societies’ This needs to be changed by getting objective is to create more transparency many times, most recently by being perspective to the table. I did’t just more people involved, but to do within China, because transparency is awarded the Goldman Environmental talk about the grave situation that that people need to know more. We the foundation for all of our work. To Prize in 2012. Today he talks to Business we are facing, I also discussed some built a national pollution database that end, when companies want to be Tianjin about the World Economic of the creative, bottom-up efforts in compiling all of the government removed from the pollution record they Forum’s 2012 Summer Davos event and China; which many stakeholders do sourced environmental data including can check the audit reports published his ongoing role in China’s water crisis. not know about. I see this as a great a list of violators of environmental on our website. platform to communicate our message laws. When people accessed this What was it that got you interested in and to engage with other stakeholders. information polluters came under What can people do to change their changing China’s environment? I wanted to explain that there are pressure especially after we added a local water quality? During the 1990’s I worked for the opportunities for us to work together green supply chain management tool Tianjin is where the Hai river runs into media and I travelled to different on a different type of environmental to our site. Some brands started using the Bohai sea. It used to have a lot of parts of China. I was struck by the governance. I tried to show that there our database to track the performance clean water, but now Tianjin is suffering environmental damage, especially are methods which involve more of their suppliers; which led to more from water pollution and serious water in terms of water of resources. Many rivers in the north had run dry or were polluted. There was also a lot of serious contamination in the south and west of China.

I wrote a book about what I had seen: ‘China’s Water Crisis’ (1999). Its target audience understood the main point of the book and agreed that there would be a crisis if we didn’t change our approach to water management, so I was pushed by the readers and some other people to get into environmental work.

Why did you choose water as the main focus for your environmental activities? Water has a special impact. I think both water and air pollution are equally serious and expose hundreds of millions of people to harm. However, water involves disadvantaged groups of people, who are hugely affected by its scarcity and pollution. Water is not just about the environment, it is also about

24 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 25 Summer Davos

social and environmental costs of this project are too high; each and every water user in this region must be made aware of this fact.

What has been your most significant achievement so far in terms of environmental change? I’m very glad to see that there is a wider consensus on the belief that environmental transparency is needed. I think the trend is moving towards more transparency and that brings hope. However, we still need to motivate more people.

How can volunteers contribute effectively to IPE’s mission in monitoring? They can look at all of the information shortage. Of course, the external impact the two. As for food safety, people pay and reports we have collected on our from Beijing and other northern regions attention to food processing, but don’t website and micro-blog. The more has a huge impact, but the massive consider the contamination of soil or active people can make their voices urbanisation and industrialisation in pollution of water for irrigation, which heard by communicating with major Tianjin is also taking a toll on local will eventually create huge food safety brands like Apple, and explaining water resources. I think people need to problems. I think both need more that while the products are good, work with Beijing and other external transparency and public supervision. their supply chain is harming the polluters, but also try to grow in a environment. They can also share more efficient and cleaner way. What is your view on China’s large data through micro-blogs and social scale water transfer project? media. We have launched a project for As someone who is working in China’s The South-North Water Diversion local people to help us in locating the burgeoning civil society movement, Project was raised in the early 1950’s. I biggest polluters in China, which is on how do you see civil society’s role in a think the currently unsustainable use our website. Smart phone users can rapidly changing China? of water in this region, especially in the take pictures and send it to our Weibo Civil society is a new idea in China. Hai river basin, is a result of thinking account, along with their location. The first environmental NGO was only that when we run out of water, water registered in 1993/4, but now there will flow from the south. In many are several hundred NGO’s in China people’s view that time is now. We need and there is definitely a lot more space to put this into perspective. This is an for them to act. But there are also emergency relief project. This area constraints and limitations, so every day is losing water and some regions are is a balancing act. When we developed almost completely out of water. So we our pollution map database we decided need this water for emergency relief. to comprise it by only using government sourced data. So we try to involve a very I believe that water from the south broad range of stakeholders. will not be sufficient in solving this problem. It will only make-up a Do you think environmental small amount of the current demand, regulation is more effectively which is rising as we speak. So later monitored than food regulation? If so, we will face a water crisis again and why is that? some people say we could widen our Unfortunately I think neither of these canals, but to me that is not feasible. aspects has been regulated enough. We should take these 1,200 kilometre Many environmental laws have been long canals as the limit. We have to passed, but enforcement is still weak shift our priority from expansion of and fines are too low. I think there are water supply to water conservation. Visit us online: a lot of similarities and links between We are reaching our limit because the btianjin.cn/121104

26 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 27 Feature Story Feature Story

cultural and entertainment center produced with Beijing based DMG for tourists and citizens that will The future of Entertainment Group. Part of the Hollywood Comes to China open in 2016. This entertainment film will be shot in China and is By Justin Toy center will exceed investment of entertainment is 3D, rumored to feature the Chinese RMB 20 billion and be built on and the future of 3D villain, Mandarin. Also, out in his summer there has been only a select few foreign films to Over the summer, there have been the Xuhui Riverside in Shanghai. is in China” (James theaters right now is an interesting a noticeable lack of foreign be released in Chinese cinemas. several monumental partnerships International architectural masters time travel drama called “Looper” films at the movie theaters. Despite this, the Chinese market in the film industry that could are submitting plans for various Cameron) (featuring Bruce Willis and Joseph TExperts say that this is a strategy has been opening up recently; the drastically affect our theater going theaters, shopping centers, cinemas, Gordon-Levitt) which was another to protect the local Chinese film import quota on foreign films for experiences in China and abroad. tourist attractions, restaurants, (the latter two are state-owned joint-venture that was partly filmed industry. There have been a number 2012 went up from 20 to 34 movies. and commercial facilities. This entities). The collaboration will in Shanghai. of big summer blockbusters like The foreign movie studio will On 6 August Dreamworks, the center and the nearby “Media Port focus on bringing Cameron's the Amazing Spider-man, The receive 25% (up from 13%) of the makers of such animated films as of the West Riverbank” are being industry leading 3-D technology While all these developments are Dark Knight Rises and The Bourne box-office revenue, compared with Kung-fu Panda, Shrek, and How envisioned as new landmarks and production services in order to quite exciting for movie goers, Legacy that will have their summer a 50:50 split in America. to Train Your Dragon, announced for Shanghai and a cultural and aid China's booming moviemaking China still has some major issues release pushed back to the end of a large international investment artistic center that might one day industry. Cameron believes that before it can fully reach its full summer and beyond. China has However, things will start to change project to be based in Shanghai. be compared with New York City's “the future of entertainment is box-office potential. The main been protecting its domestic film in the not so distant future. Movies, The new animation studio, named Broadway or London's West End. 3D, and the future of 3D is in issue of course is regarding piracy. making market for years, allowing which are co-produced in China Orient Dreamworks, announced China” which is why he is making However, while piracy is difficult to with a local Chinese partner, are that “Kung Fu Panda 3” would be James Cameron, the creator of the such a big investment in China. control, experts believe that if there exempt from this import limit. made in China as a co-production two highest grossing films ever, The first project that the group will are more interesting movies that China's box-office ticket revenues with the parent company and will Avatar and Titanic, announced on work on is a 3D documentary film come to theater, citizens will fork have been increasing by 30% a be released in 2016. The first full- 8 August that he and his partner, about Beijing. Perhaps Avatar 2 and out the cash and see it in the theater year since 2003 a figure, which length feature animation from Vince Pace, are setting up a joint- 3 will be at least partly produced instead of buying it off the street. Hollywood has been making the Orient Dreamworks is expected venture here in Tianjin. The here in Tianjin. Hollywood studios working hard to be released in 2017. After collaboration is a joint-venture to hammer out deals with their that, the plan is to create one to between Cameron Pace Group Disney led the deal making when Visit us online: Chinese counterparts in order three animated films a year. Also China, Tianjin North Film Group, earlier this year they announced btianjin.cn/121105 to cash in on this new gold rush. announced was “Dream Center,” a and the High-Tech holding Group that Iron-Man 3 would be co-

28 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 29 Investment Investment

Indonesia: Asia’s Ideal Investment Opportunity

By Josh Cooper

nvest in remarkable for investors? Well, regardless of population are under 30 years of ranked amongst the BRIC nations commodity prices may remain of its population are strongly Indonesia”. That is the any other factors, the economic age. In fact, with approximately and becomes one of the economic fairly stable for the time being, in favour of the current, pro- advice of the island- fundamentals are stunning. 240 million people, the country is powerhouses of the 21st century. demand from the Asian tigers and business government. The regime “Ination’s Investment Coordinating Imagine a nation which is in the home to the fourth largest group of other consumer nearby markets is firmly committed to facilitating Board in its latest adverts aimed at early stages of a major an industrial producers and consumers on the The country’s incredible richness will continue to drive Indonesia’s business prosperity, improving enticing foreign investors. Perfectly revolution. A few of the most planet. The strength in numbers, of natural resources further mining and agricultural sectors for education and health provisions nestled between Asia and Australia’s important ingredients for success compared to most other major complements both the growing decades to come. and, very importantly, tackling the booming consumer markets, are favourable demographics, an economies, should allow for the demand for its exports and the infrastructural problems which Indonesia presents one of the best abundance of natural resources, countries industrial sector to increasing rate of domestic Political stability is always have hindered economic activity in money making opportunities of political stability and a sturdy steady hold its own in years to consumption. Indonesia is already important when looking for a safe recent years. Diplomatic ties with its our era. According to the IMF’s financial sector. Indonesia, come. What is more encouraging, one of the world’s leading exporters place to put your money. In this neighbouring nations in Asia and estimates, the country’s GDP will perhaps more than most countries however, is the booming middle of coal, tin and natural gas. It is regard, Indonesia is a relatively Oceania- as well as a progressive grow by an impressive 6.1% this year, on the planet, has an excellent class which is driving domestic also home to the world’s biggest sound bet in comparison to many working relationship with the despite the terrible global economic combination of all these elements, consumption through the roof. gold mine and the largest known other emerging markets. A report west, provide solid foundations circumstance, and that rate will and the boom is still in its infancy. Pong Ho Yin, a fund manager at copper reserve both of which have by Bloomberg recently pointed out for smooth participation with the increase to 6.6% in 2013. Nobody Allianz Global Investors, argues seen demand booms in recent years that “Indonesia is one of the most global economy. knows just quickly this emerging Indonesia’s demographics will most that “Indonesia is being driven by as China, India and other emerging politically stable countries in Asia economic giant will grow thereafter, certainly be helpful in generating this huge consumption engine… nations have sought to expand and it deserves more attention At a time when much of the world but one thing is for certain; it isn’t and maintaining sustained The opportunity that is coming their holdings. In terms of palm from international investors.” is feeling some degree of financial slowing down any time soon. economic growth. Unlike the from this phenomenon is going to oil, which a third of the world’s Having seemingly put most of the distress, Indonesia’s banking and rapidly aging populations of the be enormous”. For him and many population uses daily for cooking, underlying issues to rest, the nation investment sectors are continuing What makes this South Asian Europe, China and Japan, over other commentators, it is only a Indonesia is already the world’s is now united by its predominantly to weather the storm with relative country such a special opportunity 50% of Indonesia’s enormous matter of time before Indonesia is leading producer. While global Islamic faith and the majority ease. Despite the seemingly

30 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 31 Investment Investment Investment News Stocks and Shares

German Chancellor adds fuel to the Eurozone fire In October, things started to heat up between the German leadership and the other Eurozone member states. Markets around the world have felt the aftermath of Chancellor Merkel’s outspoken opposition to using new funds for further bail outs of troubled Spanish banks. She stated that “there will not be a retroactive direct recapitalisation.” With the country’s major elections coming up next year, there is an ever-present danger of a full scale German backlash to the colossal lending programs. Investors may be wise to look for sturdy, non-European assets in 2013.

US third quarter earnings disappoint investors A wave of earnings figures from US firms has left shareholders and speculators severely disappointed. Amongst the companies with significant revenue shortfalls were IBM, Microsoft and General Electric. With retail sales also posting significant weakness, as well as a generally bleak economic picture across the board, analysts are already suggesting that 2013 will be a miserable year for the markets.

Speculators are bracing themselves for the presidential election Historically, stock markets receive a temporary boost when republicans or presidential challengers get elected to the White House. With Obama’s fiscal policies coming under heavy criticism from various big players in the financial world, a re-election of the current administration, which seems to be the most likely outcome, may be unpopular with certain investors. If Romney is elected to office, it could lead to a rally in various sectors- particularly with regards to defence related companies. On the other hand, analysts predict that pharmaceuticals, green energy providers and never ending fallout of the global investment activity, deployment of destinations like Bali are thriving. technology stocks are poised to benefit from another Obama presidency. financial crisis in 2008, capital capital depends largely on personal Buying assets in line with these markets, financial institutions and preference. For those who like stocks trends would certainly be a good lending agencies in Indonesia have and ETFs, the Jakarta Composite long term strategy. Canadian Government rejects Malaysian oil merger gone from strength to strength. Index is home to some great small Canada’s Ministry of Industry has rejected a bid by Malaysian petroleum According to Jerome Booth, caps with huge growth potential. As Taizo Ishida, lead manager of giant Petronas to take over Progress Energy Resources Corp, on the chief strategist at London based Whilst the large cap companies Matthews Asia Pacific Fund, has grounds that it would not be of ‘net benefit’ to the country. The offer, Ashmore Investment Management, are not particularly cheap at the stated “Indonesia has long been which amounted to USD 5.22 billion, is not the only ongoing takeover “Indonesia, in terms of sovereign moment, they are still in a strong overlooked by emerging market attempt in Canada’s thriving energy market. Chinese oil firm CNOOC risk, is better than several Western position to continually increase investors and now there is a lot have recently made a staggering USD 15 billion bid for a controlling stake European countries.” With healthy earnings going forward. Besides the of value in cheap companies with of Nexen Inc. The rejection of the Petronas plans has sparked rumours bank balance sheets and foreign obviously lucrative commodities good growth rates.” So forget that any other takeover deals by foreign companies could be in jeopardy investment rates soaring year on play, land and real estate are also China, India, Brazil and the other under the current Conservative government. year, the nation’s financial sector very enticing. With millions of emerging giants- Indonesia is set to is in a strong position to provide a Indonesians moving to Jakarta take the financial world by storm Japanese equities enjoy a mid month rally catalyst for future growth. and other urban areas every year, over the coming years. With the property prices will surely see some right approach and an eye for long On 19 October, Tokyo’s Nikkei share index went above 9,000 in what So it’s clear that Indonesia is significant gains. Furthermore, as term growth, strategic investors was its best weekly surge for almost a year. After monetary easing plans a golden opportunity for savvy the country’s magnificent natural could make some incredible returns were released by the country’s central bank last month, it seems like investors. But where should you put beauty continues to reel in millions from this exciting newcomer to the speculators have regained some of the risk appetite that has been lost due your money? As with any kind of of new tourists every year, holiday emerging market explosion. to the troubled Japanese economy.

32 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 33 Investment

Currencies Chinese Yuan - US Dollar Chinese Yuan - Euro

Chinese Yuan - GB Pound Chinese Yuan - Japanese Yen

As the Chinese government’s currency stance takes centre stage in the battle for the US presidency, the yuan has it new highs against the dollar. It seems that the Chinese administration is gradually letting the country’s currency edge towards the landmark 6-1 valuation with its US counterpart. However, if Romney is elected and follows through with his promise to “label China as a currency manipulator right from day one,” nobody knows what the forex fallout will look like. In other news, the HKMA has stepped in to slow down the strengthening of the Hong Kong dollar amid fears that the surge in capital inflow will eventually repress the state’s export potential. The euro looks set for turbulent times over the next month and beyond as pressure mounts over Spanish debt problems. Commodities C M 1 Month 1 Year Commodity Y Change Change CM

Crude Oil (Petroleum) 0.99% 5.44% MY

Natural Gas 0.50% 6.85% CY

Wheat 1.15% 11.87% CMY Sugar -1.70% -24.14% K Rice 1.31% -4.07% Aluminium 11.98% -10.00% Copper 7.69% -2.56% Iron Ore -7.73% -43.88% Lead 14.75% -4.81% Nickel 10.09% -15.16% Gold 7.02% -1.48% Silver 16.82% -11.86%

Monetary measures and economic sought after as the recent panic of uncertainty are continuing to plummeting demand from China boost precious metal prices. and elsewhere has seemingly eased. Whilst gold is edging back Oil has remained fairly stable, as towards the historical highs of have agricultural products following last year, silver has been leading the explosive price surges they saw the way with gains of more over the summer. than 15% over the last month. Industrial metals have also seen some significant revaluation this Visit us online: month. Copper, aluminium, lead btianjin.cn/121106 and nickel are all becoming more

34 Nov 2012 I Business Tianjin Legal Assistance Legal Assistance

Chinese VAT Reform to Pilot Pilot Industries Pilot VAT rate Current BT rate Transportation service industries in Tianjin 1. Road transportation services 2. Shipping services 11% 3% 3. Air transportation services

4. Pipeline transportation services

Part of modern service industries

1. Research & Development and technical services

2. Information technology services 6% Manuel Torres 3. Cultural and Creative services 5% 4. Logistics Auxiliary services

5. Certification and Consulting services

6. Tangible and movable properties leasing services 17%

is observed that this recent VAT reform implemented by instead of BT on the service revenues derived from services the Chinese government reveals the trend and intention of Pilot Industries. Detailed scope and clear definition of of China on the globalisation of its indirect tax regime. each Pilot Industry has been provided in Circular 111. In Diego D’Alma addition to the current VAT rates of 13% and 17%, another The VAT pilot program will be carried out in several two VAT rates, 11% and 6% will be adopted. by Manuel Torres (Partner) phases. The first phase has already been carried out only Below is a table of the current BT rates and applicable pilot and Diego D’Alma of Garrigues Shanghai in Shanghai and applied to specific sectors in Shanghai, VAT rates under each category of industries. namely transportation and ‘modern’ services. The following phases will consist of applying the VAT pilot Compliance rules program to specific sectors in other regions of the country In respect to the calculation of the payable VAT, if the and eventually, if the program is successful, it will be taxpayer qualifies as a general VAT payer and is approved applied nationwide and to all service sectors. Now, Tianjin by the tax authority, the general VAT mechanism shall apply has become the second pilot area. (i.e. output VAT – input VAT). However, if the taxpayer does not reach the threshold to become a general VAT payer, it The new VAT pilot program has come into effect in Tianjin will be considered a small scale VAT payer, subject to a 3% Introduction as of 1 August, 2012. In this newsletter, we will provide a VAT rate, and whose input VAT will not be deductible. In August 2012, China’s Ministry of Finance The VAT pilot program seeks to progressively preliminary and brief analysis of the VAT pilot program and Pilot Enterprises will soon be required to set up systems (MOF) and State Administration of Taxation substitute the Business Tax (BT) currently offer some comments to enterprises that will be impacted regarding the issuance, management and submission of (SAT) announced that the pilot program in applicable to taxable services in China, by such change. special VAT invoices. In addition, service contracts would relation to the Chinese for the VAT. BT, a tax become essential under the VAT pilot program and will indirect tax system, currently levied on the Outline of the VAT reform be required by SAT for VAT deduction purposes or be 1 2 concretely concerning revenue derived from Circular 110 and Circular 111 , jointly issued by the MOF and considered as evidentiary documents in determining the the Value Added Tianjin has become rendering services SAT, mainly set out the legal framework of the VAT reform. due date of payable VAT. Tax (the VAT pilot the second pilot area. or transfer/rental of program), which was real estate, amongst Circular 111 sets forth the specific services which are Zero rate and exemption for services provided to overseas formerly launched for other items, has been subject to the VAT pilot program (’Pilot Industries’) and companies Shanghai only, would be effective to another considered as a local tax with Chinese the applicable VAT rates respectively. According to Circular Circular 131 was issued by the MOF and SAT, specifically eight cities/provinces, including Tianjin. characteristics- since the main indirect 111, enterprises chosen as pilot enterprises shall file VAT addressing taxable services supplied by a Pilot Enterprise This VAT pilot program would certainly tax system adopted by most jurisdictions have significant tax implications in Tianjin’s worldwide is VAT (both on the revenues 1 Notice on Publishing Pilot Plan for the Transformation from BT to VAT service industries. derived from sales of goods and services). It 2 Notice on the Pilot Program for the Transformation of Transportation and Certain Modern Service Industries in Shanghai from BT to VAT

36 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 37 Legal Assistance

to an overseas company eligible for both VAT zero-rate and they have been falling into the pilot scheme. Overseas exceptions. enterprises which provide relevant services to clients in Tianjin shall also confirm the tax position of such clients According to Circular 131, services taxable at zero-rate will since the latter might have to withhold relevant VAT (6% or be subject to VAT but at 0% and, thus, the relevant input 11%) on the service income. VAT associated with the services provided to overseas clients will be fully recoverable. Such services include In addition, enterprises subject to BT may bear a heavier research and development services, design services provided tax burden when purchasing services from enterprises to overseas entities and international transportation services which are subject to VAT, since such payable VAT might relating to the transport of cargo and passengers from China eventually be reverted into purchase price for such services. to overseas, from overseas to China and those services On the other hand, those VAT taxpayers could benefit from provided outside of China. the VAT transformation as they may apply VAT deduction under the general VAT mechanism. Therefore, it is advisable VAT exempted services rendered will imply that the input for all enterprises to go through and review contracts VAT associated with the services provided to the customer already executed or under negotiation and reconsider the is not recoverable. Industries subject to such exemption relevant prices. include, amongst others: certification, attestation and consulting services; technology consulting services; leasing For the above reasons, we strongly recommend that of tangible and moveable goods when such goods are enterprises rendering or receiving services from Pilot located overseas; advertising for ads published outside Industries shall be familiar with the VAT pilot program and China and international transportation not supported by an learn how the system will adapt to their specific services in a international transportation operation license. detailed perspective.

Our observation Visit us online: Enterprises in Tianjin which are engaged in Pilot Industries btianjin.cn/121107 shall first confirm with the in-charge tax authority whether

38 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 39 Policy Explanation Policy Explanation

the Establishment of Medical health and commercial authority. nursing homes, emergency centres, Institutions by Non-public Capital Meanwhile, the establishment of rehabilitation establishments etc. Latest Developments on Foreign (Circular No. 58) issued by the WFOE medical establishments shall National Development and Reform be subject to the approval of MOH Furthermore, investors from Hong Commission (“NDRC”), MOH and the Ministry of Commerce Kong and Macau, who have already Investment in the Medical Care and Ministry of Human Resources (MOFCOM). enjoyed benefits of being able to provides measures for opening invest in designated provinces in the market for privately-funded mainland China in the form of capital, and encourages foreign WFOE, are allowed, as of 1 April Industry in China capital in investing in the medical In light of the huge 2012, to expand their business in service industry and even commits demand for quality all municipalities directly under to gradually loosening the equity the Central Government and proportion requirement for foreign medical service and cities of provincial capital instead investment and completely lift size of the population, of only in Shanghai, Chongqing, restrictions in the long-run. It there is no doubt Guangdong, Fujian, and Hainan as expressly indicates that foreign previously restricted, thanks to the investment in medical service that opportunities for implementation of CEPA (Closer industry shall be categorised as foreign investors will Economic Partnership Arrangement ’permitted’. signed between mainland and Hong increase Kong and Macao). Circular No. 58 provides measures to Simon Bai Winners Law Firm further expand the scope of market On 13 April, the MOH promulgated entry and the opening-up of medical In December of 2011, the new Foreign the Notice on Definition of the Nature establishments for private and foreign Investment Industrial Guidance of Medical Institutions Funded by investment in the form of joint Catalogue was released by NDRC and Non-public Capital (Circular 26). venture or cooperative joint venture. MOFCOM (2011 Catalogue), which Circular 26 states that privately It allows local authorities to carry out became effective on 30 January, 2012. funded medical establishments could the pilot programs of wholly foreign- ’Medical Treatment Establishments’ be either for profit or nonprofit, owned (WFOE) medical institutions was one of the ’restricted’ industries in according to the nature of their in China by qualified overseas capital. the 2007 Catalogue. But in the revised business, by repealing a previous The Circular simplifies the procedure 2011 Catalogue, Medical Treatment regulation that categorised almost all by delegating the examination and Establishments was removed from medical establishments set up by non- approval power for establishment the ’restricted’ list. Therefore, it is public funds as for-profit hospitals. of Sino-foreign joint venture and clear that this area is now permitted. cooperative joint venture medical Medical Treatment Establishments The Implementation Plan for institutions to the of provincial generally include hospitals, clinics, Deepening the Reform on Medical Healthcare expenditures in China have Background of Legislation on Foreign and Healthcare System During the been growing steadily over the years, with Investment in Medical Services 12th Five-year Period was issued annual growth rates of up to 20 %. Moreover In July of the year 2000, MOH issued the by the State Council in April 2012. rising income among the population and Interim Measures for the Administration of The Plan intended to further growing social security coverage throughout Sino-foreign Equity and Cooperative Joint loosen the entry policy for private the country have fuelled investments in the Medical Institutions, allowing a foreign equity funding, such as charity institutions industry which forecasts for an expanding share of up to 70% within a joint venture. funds and commercial insurance market. By 2015, the beds and medical companies from home and treatment provided by non-public hospitals In 2007, the Chinese government abroad, and to encourage qualified will account for 20 % of total medical promulgated a revised Foreign Investment individuals to open private clinics. services, according to the China Ministry of Industrial Guidance Catalogue, (2007 It also aims to allow access to the Health (MOH). The entire medical services Catalogue) which further opened many social security reimbursement market is expected to reach USD 500 billion industries for foreign capital and encouraged system by those qualified non- by 2015, offering great opportunities for medical services for elderly and disabled public hospitals and pharmacies. private and foreign companies in medical patients in healthcare, sports and social service industries. Many investors are welfare. It also allowed pharmaceutical More specific implementing keeping a close watch on the huge potential manufacturing on ordinary products, but still regulations from the MOH in the Chinese healthcare industry with the restricted investment in medical service. and MOFCOM, and other gradual loosening of policies and growing administrative authorities are demand for high-end medical services by In November of 2010, Opinions on expected to be rolled out in the near China’s growing middle and upper classes. Further Encouraging and Guiding

40 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 41 Policy Explanation future in order to further implement owned hospitals to state-owned hospitals to operate competitively in the strategy of opening up medical ones remains very small. The fact Chinese market. It is only recently care industries to private and foreign speaks for itself: the prospect for that doctors employed at State- investors. New regulations will be foreign-invested hospitals remains owned hospitals have been allowed Managers Health needed to clarify and delineate the challenging. The reasons are to practice concurrently at different specifics of regulatory landscape for many-fold. First of all, medical hospitals. In practice, there are still Medical advice provided by Dr. Xavier Rault foreign investors. facilities require a huge amount of many practical obstacles for that to investment with complicated and happen. Thirdly, it remains difficult Outlook for Foreign Investment in time-consuming approval processes for foreign-invested or private Medical Care Industry by various government authorities, hospitals to be able to offer patients In spite of the ongoing major shifts while the entry threshold for the benefit of reimbursing expense of legislation and government establishing medical establishments from social insurance. Lastly, the policy from a predominately is rather stringent. Secondly, pricing mechanism of medical publicly-owned industry towards the lack of qualified doctors service is largely determined and a more private and foreign and experienced management heavily regulated by the government investment-friendly regulatory personnel, as well as restrictions on which could pose a big obstacle and market environment, the the practice of doctors employed for foreign-invested hospitals to total proportion of Sino-foreign at State-owned hospitals, presents compete effectively on the market joint-ventures or wholly foreign- a major hindrance for foreign as they tend to be much more expensive for the large majority of the population. here is much written about the health of workers in the in fats, cholesterol and sugars. Frequent business dinners can also result As a result, before the reform of workplace, but much less about specific health problems of in drinking excessive levels of alcohol. China’s social insurance policy and managers. It is sometimes assumed that managers will take care Tof themselves; however, this is often not the case. Lack of time due to work demands is also major excuse given for not complete overhaul of legislation on exercising regularly. Exercise not only maintains heart and lung health medical services, such as pricing There are many aspects of the work and lifestyle of a manager which can as well as bone and muscle strength, it is also a valuable method of regulation in order to create a contribute to health problems. Many senior managers fall within the 40- weight control and stress reduction. It helps reduce high blood pressure 50 age bracket, a time in life when preventative healthcare is needed but and cholesterol and reduces the risk of certain cancers and diabetes. level-playing fields for all market frequently neglected. players, foreign investment aimed at Finally, managerial staff should make it a priority to establish a long Common health problems for managers include: term relationship with a family medicine doctor. Making repeat visits medical service industry might have - escalating levels of stress over a period of time allows a doctor to understand your lifestyle to seek more real opportunities in - improper diet and lack of exercise and work habits as well as your family medical history including any niche areas or specialist services - excessive alcohol intake and smoking presence of congenital conditions. With this intimate knowledge, a such as dentistry, ophthalmology - jet lag due to frequent business trips doctor can give proper attention to your health and provide advice that - muscle fatigue as a result of long hours spent at the desk in front of a is tailored to your specific profile. maternity care, health examinations computer. and elderly care and paediatrics where quality services are in short Stress is not a disease but a person’s reaction to excessive demands and pressure. Many managers may see stress as a sign of weakness and supply and which have a higher ignore symptoms which damage their health in the long term. The technical barrier with a higher greatest cause of stress reported these days is due to work. profit margin. Moreover, China’s Stress for a manager can come from many areas: growing middle and upper classes - Trying to balance obligations at home and work with more disposable income - Increasingly complex work environments with constant change are the best target customers for - Trying to achieve more with little resources - Email and mobile phones making managers live and work a 24 hour day foreign-invested medical service establishments rather than general The symptoms of stress can be both physical and psychological. Physical symptoms include headaches, backaches, bowel disturbance, public with lower income. In light high blood pressure, and poor sleep quality. Psychological symptoms of the huge demand for quality include being short tempered, agitated, easily irritated by small medical service and size of the problems, decreased work productivity and poor concentration. population, there is no doubt that Simple solutions to stress are to effective time management, accept opportunities for foreign investors what cannot be changed, be realistic in what is achievable, delegate will increase in the industry which is responsibilities, take time out to relax and find interests away from work, anticipated to be fully open soon. exercise regularly and avoid using alcohol, coffee or cigarettes as a solution. Preventative health checkups become increasingly important as you get older and many working in management will avoid these if they have no symptoms. The purpose of health checks is to identify health problems before they cause permanent problems. The concept is similar to car Visit us online: owners taking their vehicle for routine maintenance. During these btianjin.cn/121108 checkups vaccinations can be reviewed and updated. Many managers attend frequent business lunches and dinners. Others will say they are too busy to have regular meals. Either one of these extremes can result in a poor diet, either lacking in nutrition or too high

42 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 43 Tech Tech Iphone 5: Buy or Sell By Justin Toy

iPhone 5 is a bigger phone. At 3.95 ditched for a new, much smaller, The features ounces, the iPhone 5 is freakishly ’Lightning’ port. This may cause a The change that has made the biggest light. The phone is also significantly headache for a number of Apple users headlines is Apple's move to purge skinnier than the iPhone 4S, going who have plopped down money on Google Maps from the OS and from 9.3 mm to 7.6 mm in depth. docks and charging stations. replacing it with Apple Maps. Apple has been getting ready for this move If you are using the iPhone 5 in a place IOS 6 for several years now. Since 2009, that has 4G technology (4G is not yet With the new phone also comes a the company has purchased three available in China) than the new 4G major new update to the operating different mapping companies and has LTE technology may shock you by system. IOS 6 is chalk full of new forged partnerships with TomTom and how fast the speed is. In a test done features (200 to be exact) and has a OpenStreetMaps. Many people have in downtown Manhattan, download distinctive new look and feel in terms been complaining about the accuracy speeds ran from 10-20 Mbps, which is of presentation and functionality. of locations and directions with twice as fast as a typical wireless router However, users of iOS 6 have been Apple's map application. However, if in your house. You could use the complaining about a number of you are using the application in China, iPhone as a wireless personal hotspot issues including the exit of Google I think this is not a big issue. In my n 21 September, Apple's upgrade? Here are some details to past five years, goes from a 3.5- for your laptop or other devices and Maps and the introduction to the experience, Google Maps has also been highly anticipated iPhone help you make your decision. inch, 960x640 pixel display to a have internet access on the go. new Apple Maps application. IOS 6 quite unreliable at times for finding 5 went on sale in various 4-inch 1136x640 pixel display. To is available for the iPhone 3GS and locations, and is generally very slow Omarkets around the world, and as What's New? give you some perspective, the The entire bottom of the phone all newer iPhone models, all iPads to load. When I played around with expected, has been selling successfully The screen of the iPhone 5 is larger iPhone 5 is as long as the Samsung has been redesigned. Firstly, the and the fourth and fifth generations Apple Maps it was blazingly fast and ever since. The next generation (well, longer). The screen hasn't Galaxy SII but not as wide. headphone jack has been moved to of iPods. However, not all of the new was able to pinpoint major locations iPhone has, for the most part, been gotten any wider but it has gotten the bottom (making it impossible features will work for every device. within Tianjin. However, there were receiving quite positive reviews. long enough to accommodate a fifth This is the lightest iPhone produced to stand your iPhone up while For example, turn-by-turn navigation several instances whereby I would However, no date has been set yet row of applications on the home to date. It is 25% lighter than the using your headphones). Secondly, will only work for the iPhone 4S type in an address or place in Tianjin for a China release date. When the screen. The new screen resolution, iPhone 4S, which is extremely the traditional iPhone/iPod/iPad and 5. Below you can find some key that it didn't recognise and it would iPhone 5 does hit China, will you which has been the same for the impressive given the fact that the connection/charging port has been highlights to the new OS. automatically jump to another city

44 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 45 Tech Tech in China where the address existed. on, more and more developers and Apple has admitted that their new retailers will utilise this feature making Maps program is a work in progress it more valuable. and they promise to keep the updates coming. Some added functionality to Find My Friend and Reminders maps on the iPhone that may or may got some updates that will help to not be useable in China are flyover enhance their user experience. For (a bird's eye view of the city), turn- Find My Friend, you are now able by-turn navigation, multi-touch to to receive notifications when your rotate the map (it's about time) and friend/family member enters or enhanced real-time traffic data. exits a certain location. For example, you can set an alert for when your Passbook is another key update to iOS children get home if you are worried 6, which allows you to store tickets, gift about them getting home from certificates/cards and boarding passes school. Reminders also utilises in a digital wallet. Unfortunately, the location by allowing you to setup iPhone 5 doesn't use NFC (near field alerts for when you enter a location. communications) so you won't be For instance, you walk into the office Nano-SIM able to store credit/debit card details and your phone will send an alert and make mobile payments with your that reminds you about a conference iPhone. Passbook is still useful as you call at 10. Additionally, Reminders can purchase and store gift cards to now works with iCloud so you can retailers such as Starbucks and pay seamlessly sync your reminders with with your phone. The retailer will all of your devices and make sure you then use their existing POS system never forget anything again! to scan the barcode on your digital gift cards and tickets. Also, when the Facebook Integration is now iPhone senses that you are near a store extremely deep. You can easily post that you have a gift card for or if you pictures to Facebook, integrate Apple Map have a ticket that is about to expire, Facebook data into your mobile Passbooks will send you a notification contacts and post to Facebook just to your home screen. As time goes by talking to Siri. Of course, living in

China means that you will need to If you already own may not be worth upgrading to the use a VPN in order to take advantage iPhone 5; unless, perhaps you can of these functions! an iPhone 4S than sell your 4S to offset the cost for the it may not be worth 5 model. If you have an iPhone 4 Do Not Disturb is a simple yet useful upgrading to the or even older, it is probably time to function. As the name implies, it is upgrade. If you are upgrading your a setting you can turn on when you iPhone 5. phone you may also want to consider don't want to be bothered by any the Samsung Galaxy S3. The S3 is notifications or calls. How many another top tier phone on the market times have you been woken up in the unknown number calls multiple right now that has a much bigger middle of the night by an unimportant times within some period, the phone screen than the iPhone 5 and can iSight camera notification? This will help to put an call will get through. be purchased for a cheaper price. end to those sleepless nights. What if Also worth considering is the Nokia someone is trying to contact you about The Verdict: Apple has yet to Lumia 900 and the 920 when it is some emergency? You can set your announce when the iPhone 5 will released in early November. favourites or a special list of contacts be released in China. But when who will be able get through to you. the phone does hit the shelves in If you have a family member calling Mainland China, expect to pay Visit us online: you from someone else's phone around CNY 5000 for it. If you btianjin.cn/121109 All-New EarPods you can even set it up so that if an already own an iPhone 4S than it

46 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 47 IPR IPR Focus on: Chinese Utility Model Patents

Utility model patents and person from practicing the invention for operation or n 2010, over 340,000 Chinese utility model patents (UMs) were granted. However, only invention patents: what’s the This is far quicker manufacturing purposes without about 2,200 of these were granted to foreigners (a UM can be registered in the name difference? than the 3 to 6 years the patentee’s consent is granted of a person or entity). Chinese entities seek to register UMs much more actively than The following are the most important • Enforcement possibilities: Iforeign entities, but these can be very valuable. The highest recorded patent infringement required for invention differences between UMs and o Compensation for infringement compensation awarded by the Chinese People’s Court of CNY 330 million (about 50 million invention patents: patents. Euros) was based on a UM registration in the case Chint v. Schneider. 1) Subject matter – UMs only protect Take-away message products with new shape/structural from the filing date, while an invention While in principle UMs are extremely Who uses the utility model system? physical features. For example, patent lasts 20 years. similar to invention patents, they UMs are not unique to China. In fact, there are more countries in the world that have a UM methods of production or chemical 5) Different filing costs. can often be a faster, cheaper and system than those that do not. European Union Member States with a UM system include compounds are not eligible as they Although there are a number of easier alternative (if all application Austria, Belgium, Denmark, Finland, Germany, Italy and the Netherlands, among others. do not have a shape or structure. differences, UMs and invention requirements are met), but one which Notably, the USA and the UK do not have a UM system. 2) Inventiveness – although patents share many common features offers a shorter IP protection term. invention patents in literal terms as well, the most important of which UMs are a form of patent in China Why consider utility model patents in your business strategy? require a higher ‘inventiveness’, in are listed below: practice there is no difference. that is often overlooked by foreign In addition to being cheaper to register, UMs can be a faster way to protect your inventions. entities, but which can be a powerful 3) Examination – UMs only • Protection requirements: Their primary purpose is to provide patent protection for inventions with a short commercial tool to protect your IPR when used require the ‘formality examination’ o There are specific disclosure life. In China, UMs are typically granted 10 to 18 months from the Chinese filing date. This effectively, usually in conjunction or ‘preliminary examination’, requirements (on sufficiency, is far quicker than the 3 to 6 years required for invention patents (which are similar to UK with other forms of IPR such as while invention patents require support, and clarity) patents or European patents). invention patents. UMs should ‘substantive examination’, which o Novelty therefore be considered by SMEs as takes longer and is much more o Industrial applicability Therefore, a common practice under the Chinese system is the parallel filing of a UM and part of their IP strategy in China. an invention patent, followed by the abandonment of the UM once the invention patent is detailed. Grounds for objections at • Scope of protection: officially granted. The applicant can benefit from the early patent protection granted by the preliminary examination are also o Interpretation of the protection different. scope of the patent UM, as well as the longer term protection granted by the invention patent (once eventually Visit us online: 4) Term of protection – the maximum o Grounds for invalidation approved). Please note that these parallel applications must be filed on exactly the same day btianjin.cn/121110 and both applications must be accompanied by a declaration that a parallel filing was made. term of protection for a UM is 10 years o The right to forbid any other

48 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 49 HR HR

language and logical thinking. And HR Localisation is Much More you should show your respect here. Take RMG Selection as example, our slogan is ’specialist, professional, than Hiring Natives recruitment’. But it is kind of ’dry’ By Robert Parkinson, CEO and Founder of RMG Selection for merging the local culture here. Then, we add a company culture explanation here as ’Work Hard, Play Hard; Happy Staff, Happy Clients’. With this meaning we build up a unique HR management style of combining a friendship-feeling and new employees as an example. They you may lose the heart of your staff. family-feeling. This is the feature that will be keenly aware of such positive There is another case from one of our all of my employees are proud of. energy because here we pay special clients. The way they calculate salary attention to the new employee’s is to set up the highest income you Reward Localisation incentives. New employees who will get and then minus some in the As a head hunting agency, we ask produce fine performances will case that employees don’t reach their people why they join every day. There receive the praise during the general targets or make mistakes. However, are many reasons from different membership meeting. After that, a the Chinese like the way of adding people, but the most prevalent one notice form will also be published via different items of income even though of those is to be rewarded. The e-mail to the whole office. To increase the final numbers are the same. We reward includes not only the salary positive responses, let the employees have heard many complaints from but also all other kinds of benefits, from China understand the attitude their employees and their turnover incentives and inspiration. Chinese of the enterprise accommodating rate is more than other companies in people think very highly of rewards them. Also, increase their sense of the same industry. and respects. In RMG Selection, we accomplishment, pride and desire prefer to encourage any tiny correct for further good performances. On Training Localisation action of our employees in relation the other hand, if you fail to consider It is always good to have efforts to the bigger rewards available. Take these important Chinese values, from many areas. The employer

years ago, when I came to First of all, let’s see what ’localisation’ Value Localisation China for the first time, half is. Localisation happens when an The most different aspect between of the positions in foreign imported product, service, person or China and other countries is the 8companies in China were aimed at identity is given the local ‘look and feel’ culture. But culture is the base people who were from other Asian with respect to language and identity. of every single piece of business countries or other foreigners with It is not simply a case of translating action. Chinese culture, as a Asian experience. However, in 2012, instructions and text on packaging representative of Eastern culture, 80%of RMG Selection’s clients are into the language of the intended is one of the longest surviving MNCs and 90% of their positions country; it is a way of fitting something cultures worldwide. One of the require a Chinese candidate. Another to the target audience of the country. important reasons for that is its official report, released by Talents Pool Then, in my mind, HR localisation is adaptability and flexibility. But too of Jiangsu Province Foreign Affairs fitting your HR system to the people, much flexibility inevitably results Service Centre, also says that 95% of society and employees in the target in not attaching importance to the employees in foreign companies within country. So to hire local employees is establishment and implementation their province are Chinese. It seems just the talent localisation, a small part of a formal system, relying more on like the HR localisation in China is of ’HR localisation’. According to my the ‘rules of man’. Value localisation almost completed. Are most of the experiences, in 5 countries and 8 years is not simply to adopt the local HR departments in those foreign working in China, I would say that cultural values; it is a way to merge companies are proud of their human there are four other tasks which should and combine your culture with the resource localisation, because they be performedin order to localising Chinese one. The best practice here is hired so many Chinese candidates? your HR System to here China. to explain your mission via the local

50 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 51 HR New Appointments could also train people to adopt the in 2006, while Motorola got 83.3% Tangla Hotels and Resorts Newly appointed Director of value, skills and views better suited in the same year. And the Korean It is not simply a International appoints Fintan Food and Beverage of Hotel to a localised way. Then we half the and Japanese companies usually case of translating O’Doherty as Vice President Nikko Tianjin work of localisation with double have lower localisation level than results. One of the best practices is instructions and text western companies. My advice here HNA Hospitality Group Chairman and Ms. Flora Chia- Wen Chen, who is President Steven Song has announced the Taiwanese, has been in the hospitality overseas training. For executives and on packaging into is “please localize your expatriates recent appointment of Fintan O’ Doherty industry for more than 13 years. Her managers, the main purposes are to as well”. Whatever you planned, it’s as Vice President. career has taken her around the world nurture the international ties and the language of the all about people. It will shorten the In his new capacity as Vice President of through an extensive and impressive strengthen the connection with the communication process of value, Tangla Hotels and Resorts International, list of hotels, including the Banyan Tree intended country; Lijiang, Kempinski Wuxi, Kempinski HQ. According to Shanghai Talents rewarding and training on all levels to Fintan O’ Doherty will be responsible it is a way of fitting for overseeing the general management Sanya, the Orchard Parade Hotel Market, there is a good number of make your expatriates understand the and operations of member hotels under Singapore, the Fullerton Singapore and MNCs which send their CEO from something to the local language, culture, system and the four Tangla brands, including Tangla the Grand Hyatt Taipei. the HQ to Shanghai to pick up good target audience of importance of social relationships. Grand Place, Tangla Hotels & Resorts, managers. Those local managers will The Tang Hotel and Gardenlane Select. be sent back to the HQ having had the country. In one word, localisation is an global training. When they go back effective way to achieve a win- to China, they will be promoted to the learning process. This is the win situation. 2012 is the 34th year to higher levels. For the graduates, way Chinese people feel comfortable. after China released the reform Clive Murray has been appointed The Ritz-Carlton, Tianjin the Global Trainee Program is and opening-up policy. Foreign as General Manager of Radisson appoints Silvia Alonso Miragaya a fundamental way to develop Expatriate Localisation companies here should practice their Blu Plaza Hotel Tianjin. as Executive Assistant Manager of Finally,, let’s go back to the original customised talents for your company. localisation strategy. In myexperience, Clive Murray is General Manager of Food and Beverage As we all know, Guanxi is incredibly point - talents localisation. There is no I believe HR will play a more Radisson Blu Plaza Hotel Tianjin. Clive The Ritz-Carlton Tianjin has announced central toChinese life. So I prefer the doubt that this is the most important important role in the whole process. was formerly managing director of west the appointment of Silvia Alonso Miragaya ’Mentoring System’ in China very aspect of the for localisation process. It is just getting started. region of Japan Ishin Hotels Group. Prior as Executive Assistant Manager of F&B. She But more is not alwaysbetter. How to that he was general manager of Stamford will be fully responsible for the management much. In this system, every employee Grand North Ryde, Resident Manager of and achievement of all food and beverage will have his/her coach and learn not many expatriates you need really Prince Hotel Kuala Lumpur Malaysia. He operations in the hotel including restaurants, only skills but also the way to deal depends on your industry and culture. Visit us online: has 24 years of hospitality experience and bars, catering and banquet operations. She was has also served as various positions at 8 with people in your company from For example, 99% of employees in btianjin.cn/121111 will also guide the development of Food Wal-mart China were local people properties of Intercontinental hotel Groups and Beverage team members to ensure the coach. Guanxi relates very much in Sydney and Melbourne. uncompromised quality in guest services and culinary excellence.

Mr. Kevin Zhang has been appointed as Executive Assistant Manager i.c. Sales & Marketing in The St. Regis Tianjin. The St. Regis Tianjin is honoured to announce the new appointment of Kevin Zhang, who has been appointed as Executive Assistant Managerof Sales & Marketing in the St. Regis Tianjin. Kevin has a solid career path in the sales aspects of hotel management and started his Starwood journey in 2001 in the Sheraton Tianjin and then moved to the Sheraton Changsha hotel as a pre-opening team member. Most recently, Kevin was Executive Assistant Manager of Sales & Marketing for the Sheraton and Aloft, Beijing Haidian. Kevin is looking forward to working with the whole St. Regis team and utilising his enthusiasm and outstanding leadership skills to manage the St. Regis Tianjin and maintaining the venue’s outstanding position within the hotel industry.

52 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 53 Real Estate Real Estate positioning. But the majority of the Key trends retail properties that exist in the US Retailers have As said, the current trend is for a Prime Retail - China in High Demand are in the middle of this bifurcation. shifted their focus much more defined retail project in Therefore, most assets that are available first tier cities that are bridging the for sale don’t actually trade because and amended their space between very high end and a there is gap between what buyers will strategies to include more casual general offering. In the pay and what sellers require. exploring new provincial capitals there some really well conceived, planned and focused There have been many retailers markets and new projects that are coming to the market opening for the first time in Asia after opportunities in the next one-two years. thet global financial crisis, looking to offer a growing Asian consumer pipeline. While the speed of retailer Chinese brands opening in direct access to their stores – notably expansion, especially those in the international markets in this Asian expansion we can see mass market sector who tend to open Some Chinese based retail brands, some of the mega global brands several stores in each city, has been such as Bosideng are opening in such as Gap, Abercrombie & Fitch, stifled by the availability of suitable London, but it is an inevitable reality Hollister opening. That said, we real estate, the substantial pipeline that in say two-three years this will be are also seeing some really unique of development will help retailers to a common story and not just a one off. concepts coming into the market and, accelerate the rate of portfolio growth whilst not being truly global mega across China. Retailers continued interest in China brands, these stores are very popular- such as Smiggle from Australia – an Fundamentally it is still very positive. The rapid growth of China’s middle exciting stationery store that CBRE However, with the strength of the class population is forcing the number are working within Singapore as their currency, competition for prime of shopping centre developments first foray outside of Australia and locations, general difficulty in to increase in order to satisfy the New Zealand. CBRE are also seeing adjusting to the business processes growing consumer demand. With a tremendous level of interest from and the hefty capital commitments developments expanding into the hina is still in high Consumers gain knowledge and The Americas retail market two sectors in China; ‘bridge brand’ required retailers are all carefully heavily populated provincial cities, demand,” says Sebastian confidence overview fashion and ‘creative luxury’. In both balancing these alongside China is topping the charts for Skiff, Executive Director The single greatest driver of this trend For the Americas, the markets have cases they represent validation that understanding what the opportunity “Cof Retail in Asia, who, together with development growth and seeing is. Sales figures, for the first time is the use of the internet, mobile reverted to the core, where retailers the Chinese consumer is ready to great opportunities for expansion in Anthony Buono, CBRE Executive technology and the “open discussion” are seeking prominent/perfect consider fashion as unique to them, in many years, have showed signs these large cities. With this, China’s Managing Director of Retail Services of brands by consumers that “pass locations for their brands. These opting for style over conformity. Both of maturing in certain sectors and momentum will push forward with in the Americas, recently shared judgment” on their relevancy, core markets have defaulted into categories compliment the already consumers are much savvier now in more and better shopping centres, their insights on the current global price sensitivity and quality of each global city centres, like NYC and San well established luxury and fast deciding what they buy, where they replicating the best retail venues now retail market. experience. Further, global city Francisco, and then higher density fashion choices. buy it and when they buy it. centres like Shanghai are seeing a suburban zones like Washington DC, found around the world. Global Retail Market Overview commonality of brand acceptance as San Diego, Dallas etc. Markets with Asia retail market overview What can Chinese developers Economies are steady consumers travel more, shop more these profiles are experiencing higher It is safe to say that China, and as an learn from global shopping centre Retailers have shifted their focus and experience trends from one retail sales, and better rental growth, extension, Asia as a whole, is really developments? ● The US expansion should continue, and amended their strategies to market and then demand the same along with superior occupancy rates. the largest single opportunity for although restrained by inevitable include exploring new markets and Undoubtedly they can learn a lot. experience in their local market. retailers to consider when viewing fiscal tightening. While these fiscal new opportunities with the promise The main lessons to learn are to markets on a global level. That is not policies will tighten, the timing and For US retailers, expansion/cross of expansion and the execution of avoid being overly seduced by pretty to say that it is ‘easy’ to be successful scope are uncertain. Retailers are on the move border markets that are of keen expansive cross-border initiatives. pictures of beautiful concepts and here. After all, it is a fashionable ● The Eurozone’s recession will likely While the retail sector continues interest are Canada, Mexico, China, With this strategic transition comes designs, rather than spending more market and fashion can be at times deepen with the resurfacing risks of to globalise, with more brands South East Asia and Russia. an increase of high quality retail space time on your due diligence of the fickle. Comprehensive due diligence a disruptive sovereign debt crisis. expanding outside of their home in emerging markets, such as China, market. Ensure that your knowledge markets, Asian retailers are less on the differences in consumer likes is robust in its understanding of the ● In Asia, Japan is suffering from a loss As far as investment in the Americas Malaysia and Vietnam. These markets well travelled in comparison to from city to city, potential current and consumer and retailer requirements, of export competitiveness and the is concerned, retail capital in the are experiencing an influx of retailers their European and American future store locations, sequencing of then you can add in the great reconstruction from the March 2011 US is bifurcated into two primary which therefore fuels the demand for counterparts. This is mainly what to open, where and when, peer architecture but above all execute earthquake is proceeding slowly. segments- core and value added. new developments. because of the untapped brand activity and performance are all your concept well. ● Despite an export deceleration and Investors and lenders are decidedly opportunities available in their key to establishing a strong foothold no decoupling, emerging markets focused on these types of investment, China own region and this is also why so in the market. That is just the front will continue to enjoy robust growth. providing lower yields on core and China continues its rise with a steady many retailers are coming to Asia end,.Alongside of this, getting the Visit us online: potentially higher yields for those flow of retailers entering the market ● Inflation has moderated worldwide, and specifically China. operations side in sync is critical – btianjin.cn/121112 enabling more central banks to ease assets that have a clear path for re- and better landlord projects in the logistics, corporate structure etc. monetary policies.

54 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 55 Management Management 1. Community based on a E-commerce now. Facebook and Twitter are two Furthermore, group-buying belongs websites platforms for people to get connected to this category, too. This model is Create a community for users to with friends and spread information common, like Groupon overseas, Social E-commerce discuss the products and services very quickly. China has local SNS Meituan and Lashou in China. People which contribute to the E-commerce. communities too. Sina Weibo (Twitter buy the coupons online at a great in China), and Renren (Facebook in discount and consume offline. Taojianghu: This is a social China) are very big SNS platforms. E-commerce platform launched by Bright future Taobao, which is also an important Many companies, including the The SNS community will continue to part of Taobao’s development strategy. leading brand companies, start their performance strongly. They have more Users can get access to Taojianghu via promotion on these SNS platforms. and more registered users because their Taobao accounts, share products people know that E-commerce is a bought from Taobao and obtain In China, companies usually start an great opportunity. virtual money. Users can then buy official account on certain platforms very good productsy when shops start and post the latest news or promotion Focus on industry segments. Oscar Ramos certain promotion campaigns. information. Currently, this is Entrepreneurs will focus more on the CEO, DaD Asia Seed Capital the most common way that most overall industry. Star Vancl: It’s Vancl’s social platform. companies choose to promote their The users can show their opinions services. Because it is relatively cheap, Mobile Apps are also useful. Mobile on the clothing ranges and can the only cost is human cost, and the will become the biggest entrance to suggest some fashion advice. Normal brand can interact with fans directly; the Internet, and it is obvious that users can follow the star users and it is a great user experience. people need convenient and effective get to know the latest information. Apps. There is no doubt that accessing Essentially, this system encourages the net via mobile phones will be a users to discuss issues and ultimately Consumers around continuing trend, but it is more likely to leads them to purchasing items . be beneficial to larger companies that the world continue to already have an established user base. 2. The third party E-commerce see recommendations ocial E-commerce, in a very short messages on this platform- an increase of 15 % platform The website will be a more intelligent way, is Social media + E-commerce. in four years. While nearly half of consumers These social websites are based on from friends and online focus. It will always get to know what It supports social interaction and around the world say that they trust television some existing E-commerce services, consumers as by far your customers need. Susers contribute to assisting in the online (47%), magazines (47%) and newspaper ads but they do not sell products and the most credible buying and selling of products and services. (46%), confidence declined by 24%, 20% and services directly and they own the To conclude One of the earliest social E-commerce 25%, respectively, between 2009 and 2011. user system themselves. They can information sources. DaD Asia believes this is a promising websites overseas is ThisNext, whose slogan maintain independence from the industry and we are trying to find is, ’Discover, recommend, share’. Shortly Television advertising remains a primary way ones who sell. Meanwhile, they also excellent projects to invest in. All the afterwards, several copies came to China and in which marketers connect with audiences, cooperate with other E-commerce According to our small survey, every evolution on the internet will make the the social E-commerce story began, in 2006. but consumers around the world continue platforms They can lead the traffic to internet company has a Sina Weibo world more interesting and friendly. to see recommendations from friends and the sales shops and get commission. account. More and more offline shops Social media is becoming more and more online consumers as by far the most credible Meilishuo, founded in 2010, is one of are starting to use Weibo. So far, EE-commerce in China important. information sources. How can you get better the biggest social shopping websites. has been living through 3 periods. It is certinly true that social E-commerce is connected with your customers? SNS is a It focuses on white-collar workers 4. Guide shopping online, consume The first period, the B2B business becoming more important and popular. Why? fantastic solution. and its business model is based on offline model, providing a platform for An interesting survey from Nielsen may give advertisement for brands or online These are vertical portals focusing on a Small and Medium-size Manufacture you some idea. The topic is ’What are the most Categories of social E-commerce shops. There users can find and share certain industry. These websites gather Enterprise (SMMEs) to exchange trusted forms of advertising’? E-commerce exploded in 2010 and 2011 in some shopping information. offline shop information and post on information, for example Alibaba. China, and the whole industry environment them onto a website. Take Dianping The second period, the online Nielsen’s Global Trust in Advertising survey is now mature. Although the economy has Mogujie, founded in 2011, is quite similar as an example. It focuses on local life retailing business model C2C, B2C, of more than 28,000 Internet respondents in cooled down recently, the E-commerce sector to Meilishuo. Mogujie focuses more services and it’s famous for its catering C2B etc, for example Taobao. The 56 countries shows that 92% of consumers is continuing to grow steadily. According on contributing to the trade. It will get industry information. When we go out third, social E-commerce connects around the world say they trust earned media, to a recent report, the total sales amount of commission from each trade. Currently, we want to find some places to relax the E-commerce world with friends such as word-of-mouth or recommendations Taobao was CNY 100 billion in 2008, and 4 most of the traffic transfer transfers to or have some food, the easiest way is and families, which is also the trend from friends and family, above all other forms years later the number has reached CNY 1 Taobao. The business model is CPC. to search on Dianping. It will tell you of Internet. Do you have any ideas of advertising an increase of 18% since 2007. trillion. As an obvious trend of E-commerce, the nearest and most popular ones, about what will happen next? Online consumer reviews are the second social E-commerce is very promising. So 3. Based on the current community and people can give comments to the most trusted source of brand information and far, there are 4 basic categories of social There are several SNS communities certain shop, which will be a reference messaging, with 70% of global consumers E-commerce in China. with great impact on the internet for the next consumers. Visit us online: surveyed online indicating that they trust btianjin.cn/121113

56 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 57 Marketing Marketing

upmost respect. Otherwise, the during a set time period. If the permission marketing. There are company can end up hurting the e-mail continues to bounce, mark a number of products available E-mail Marketing: company and the brand significantly. the individual at that address and to effectively implement and automatically unsubscribe the manage permission based e-mail person. practices. Furthermore, products The following are some of the most to build and manage customer common best practice advices given 6) Include an easy, automated method Good Advices and Warnings profiles are available. Here users in the literature: to unsubscribe. In all marketing e-mails, include an obvious link have access to their profiles and By Heidi Skovhus 1) Knowing your company’s e-mail to an unsubscribe page and can update them at any time privacy policies. Many companies make it easy to opt-out or change and marketers have confidence have formulated policies that preferences. that their e-mail campaigns govern the sending of e-mail. are going to users who have These policies should clearly given permission. Through state how you should use your segmentation and profiling, these customer’s data. The company’s There are some solutions can deliver personalised policy should be clearly stated on things to be aware of, e-mails based on the user profile the web site and in all e-mails that and test offers and other variables ask individuals for information. which differ in China to find out what works for certain If the company does not have compared to other customers. e-mail privacy policies, then set 11) Ability of E-mails to identify them up before starting any e-mail markets. themselves. Any e-mail sent to marketing program. customers or potential customers 2) Always gain permission. Opt-in 7) Follow up on complaints – needs to identify itself as an e-mail marketing is an absolute quickly. When conducting advertisement. must today. An individual opts e-mail campaigns expect that a in by specifically subscribing or number of people will reply to registering to receive information Warnings – e-mail scams your message with a question, from the company. E-mail marketing is proven to suggestion, complaint or some drive better returns for marketers 3) Encourage ’legacy’ customers to other interaction. You must have and deliver more targeted, relevant opt-in. Unless you have obtained resources in place to respond to content to recipients; however, the permission, you should not send such communications. It can be news is not all good. There are still marketing e-mails to names in beneficial to have an individual businesses that continue to distribute your database gathered prior to monitor responses and complaints unsolicited, irrelevant e-mail at a cost permission gatherings. If you do, and publish the policies on how to the recipient. Spam is an intrusive then stress the value of the future complaints are managed. communication, indicate each and sloppy marketing tool that 8) Buy or rent clean permission-based item for which you are asking does not take advantage of e-mails lists. It is best to use in-house permission and provide clear strongest capability. -mail was one of the first uses of e-mail marketing is to increase between the business and the permission based lists because and easy ‘unsubscribe’ options. of the Internet and it is still the sales, build loyalty, trust and brand customers and encourage loyalty to you have no guarantees as to the Always keep the customer most popular use, by far. awareness. a product or service. integrity of rented or purchased In many cases, avoiding e-mail E database up to date. scams and internet fraud can be - Newsletter/Promotional: this is lists. However, if you do rent or 4) Provide valid ’to’ and ’from’ header achieved by being aware of the E-mail marketing is a growing field The three main types of e-mail advertisements for a product or purchase a list, make sure it is addresses and accurate subject different methods that scam artists within marketing and is becoming marketing service that are placed in e-mails ’clean’ by obtaining independent sent by other people or companies lines. Always let the receiver know verification from the people use. Here are some prime examples more popular across industries E-mail marketing strategies and (typically found in banners above who is communicating and state listed, to make sure that they have of e-mail scams along with tips on and so a larger portion of the tactics can vary but most of the or to the side of the e-mail’s body accurately the content of this given their permission for their how to avoid becoming a victim: marketing budget is allocated to the activities fall into one of the following of text). communication. information to be rented or sold. 1) Phishing. This scam involves development and administration of three categories: e-mail marketing programs. E-mail 5) Proactively manage your bounces. 9) Be aware of new laws. Make sure thieves trolling the internet with - Acquisition: this is promotional marketing has become an increasingly Bounce management helps keep you stay on top of the different fake e-mails, web sites, chat e-mails sent to encourage potential Best practices within e-mail effective way for companies to reach your data clean. An e-mail may legislations in the different countries rooms and other devices while customers to buy a product or marketing out and engage prospects. Simply put, bounce from an address for in which you are operating. illegally using the names of trusted service or to convince current Even though e-mail marketing has it is directly marketing a commercial various legitimate reasons, such as financial brands in an attempt customers to keep buying. proven to be an effective marketing 10) Use technology to help manage message to a group of people using a system’s temporary availability. to convince victims to divulge tool and its popularity is growing, permissions. Technology can e-mail. It usually involves sending an - Customer Relationship Management To confirm this type of bounce, personal information such as credit there are some very important things provide an easy, automated ad, request business or solicit sales (CRM): this is regularly sent e-mails use your software system to resend card or social security number. to be aware of and to treat with the way for e-marketers to manage or donations. The main purpose to strengthen the relationship the message more than once

58 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 59 Marketing

2) Money handling. This scam involves recruiting a third party to receive funds stolen through another e-mail scam into an account before then transferring the money overseas, minus a commission. 3) Lottery scams. Potential victims are notified via e-mail that they have won a large prize in a foreign lottery. In most cases, the victim is asked to provide either an up- front fee, or bank account or social security number so that the lottery can transfer the money. 4) Internet auction scams. In this case, scam artists pick victims from those using sites such as eBay. They contact those bidding by e-mail asking to work with them outside the auction to make a deal. As usual, the perpetrator asks for payment up front, often in cash.

E-mail marketing in China – standard rules do not apply All of the above is important to know and is valid information going into the Chinese market of e-mail marketing. However, as with many other topics, there are some things to be aware of, which differ in China compared to other markets.

In short, China has less developed anti-spam technologies, greater volume of mailboxes, different tech specs, more involved parties (consumers, ISPs (Internet Service Providers) and the government), strict advertising rules and culturally sensitive content related issues. In order to succeed in China, with e-mail marketing programs it is recommended to (lucky and unlucky), symbols number of advertisement related invest in relationships. Make time etc is culturally appropriate. On e-mails that are opened and even to meet and develop good personal the technical side, it is being delivered are very low and getting relationships with leading ISPs (e.g. recommended to set up the e-mail even lower. Both relevance and mailbox partners). Localising the servers in China, so that you do not permissions will help improve these e-mail marketing material is very have to go through an international numbers. important; make sure your website, gateway, and following local anti- landing pages and any other links spam and advertising legislation. you use are in local language. Make sure not to pick a date where Visit us online: To complicate matters even more, everyone is on vacation, or that recent surveys have shown that the btianjin.cn/121114 the colour scheme, use of numbers

60 Nov 2012 I Business Tianjin Chamber Report Past Events: The 3rd German Chamber Octoberfest in Tianjin Time: Saturday, September 22 Venue: Drei Kronen 1308 Brauhaus Three times makes it a tradition: The German Chamber of Commerce celebrated its third Oktoberfest in Tianjin on 22 September. The Oktoberfest band Alpenrocker & Igor heated up the crowd with their live show and German songs. More than 70 guests celebrated the world’s most famous folk festival with the German The Fifth European Union Film Festival Brings Chamber at Drei Kronen Brauhaus, experiencing German culture, enjoying the authentic German European Cinema to Life for Chinese Audiences buffet and the free flow of beer. Festival expands to four cities; 26 films to screen during November. Upcoming Events: The magic of European cinema returns to China for its fifth year, I. Breakfast Seminar (in German): Kulturelle Aspekte, die unser Geschaeftsleben beeinflussen – ein augenzwinkernder Vergleich China / Deutschland, 7:30 – 9:30, 7 November, 2012 as the European Union Film Festival (EUFF) unspools in four II. German Chamber monthly Get-Together in Binhai (Stammtisch in Binhai): 17:30 - 21:00, 7 November, 2012, Delights Restaurant & Bar Chinese cities starting 1 November, 2012. III. GM Roundtable: How to achieve labour legal compliance - A toolbox for foreign invested enterprises in Tianjin, 17.30 – 19:30, 12 Featuring 26 films from all over Europe, along with a selection of November, 2012, GCC North China – Tianjin Office short films, the EUFF, presented by the Delegation of the European IV. Inter-Chamber Networking, 19:00 – 22:00, 20 November, 2012, 49F Tangla Hotel Tianjin Union to China in partnership with the European Union Chamber V. Visit at Rego International School and Tianjin United Family Hospital and Clinics (TJU), 9:00 – 12:30, 21 November, 2012 of Commerce in China, returns to Beijing, Chengdu and Shenzhen, VI. Seminar: Visa Service for the German Chamber Member, date to be confirmed, GCC North China – Tianjin Office and is joined this year by a fourth host city, Tianjin. VII. German Chamber monthly Get-Together (Stammtisch Tianjin): 28 November, 2012, Drei Kronen 1308 Brauhaus

The EUFF opens 1 November in Beijing with a screening of Room 1502, Global Center, No. 309 Nanjing Road, Nankai District Cyprus’ Fish & Chips, and continues through 30 November. Tel./Fax: +86 22 8787 9249 Email: [email protected] Website: www.china.ahk.de Screenings take place in Tianjin from 8-14 November; Chengdu from 15-22 November; and Shenzhen from 23-29 November. Following the fifth edition of the EUFF, the first edition of the EUFF Online will take place on the video platform of Sohu for Past Event: three months, starting from the end of November 2012. The EUFF Online, which is organised by the European Commission AmCham China, Tianjin 2012 Annual Fall Classic Golf Tournament in cooperation with Sohu, will showcase recent, popular and 10:00AM – 8:30PM, Saturday, 13 October – Tianjin Warner International successful films from various EU member countries. Each film will Golf Club be screened in their original language with Chinese subtitles. Golfers from Tianjin, Beijing and Wuhan came out to join AmCham China Tianjin’s 2012 Annual Fall Classic Golf Tournament on 13 October. The tournament was held at Tianjin Warner Our Douban: site.douban.com/184260/ International Golf Club. After an exciting day of golf, members and guests enjoyed a buffet dinner, awards ceremony, prize drawings and live bands from the Renaissance Teda Hotel. We would like Our Weibo: weibo.com/eufilmfestival to thank all of those who came out to play golf, join in the dinner, and especially the sponsors, Our Official Website: www.europeanchamber.com.cn/en/euff such as Tiger Beer, Cintas, Taylor Printing, Northern Lights, Hank’s Sports Bar and Grill, the NFL, and Jones Lang LaSalle. The St. Regis Hotel and many others were able to give other forms of donations that helped create a successful night. 天津影展地点：Venues in Tianjin

天津中影国际影城津湾店 天津惠灵顿国际学校 Upcoming Events: Imax Tianjin (JinWan Square) Wellington College International Tianjin 地址：天津市和平区解放北路与赤峰道交口津湾广场E座3层 11月11日，卢森堡“远乡”，两场17:30及19:30 地址：中国天津市红桥区义德道1号 Exclusive dinner with delegates from the U.S. Embassy Beijing 影展时间：11月8日-11月14日 Nov.11th, Luxembourg “Quartier Lontain”, timing: 17:30 and 19:30 影展时间：11月10日-11月18， 6:30-8:30 PM, Thursday, 1 November – Hotel Nikko Tianjin 票价：40，Nov.8th -14th, entry fee: rmb40 11月12日，法国“所有的太阳”，两场17:30及19:30 票价：免费，Nov.10th -18th, free entry 影片场次： Screen schedule Nov.12th, France “Tous Les Soleils”, timing: 17:30 and 19:30 11月10日，电影节短片首映13:30 11月8日，塞浦路斯“鱼和薯条”，电影节首映礼20:30， 11月13日，波兰“必要的杀戮”，两场17:30及19:30 Nov.10th, Short Film Festival, timing: 13:30 Exclusive GM dinner – How has the GM role changed recently and what are 只限于被邀请嘉宾 Nov.13th, Poland “Essential Killing”, timing: 17:30 and 19:30 11月17日，意大利“氪星石”，19:30 companies now looking for in a GM Nov.8th, Cyprus “Fish and Chips”, timing: 20:30, Nov.17th, Italy “La Kryptonite Nella Borsa”, timing 19:30 only available for invited guests 11月14日，英国“匿名者”，两场17:30及20:00 6:00-8:30 PM, Thursday, 8 November– The St. Regis Tianjin Nov.14th, UK “Anonymous” , timing: 17:30 and 20:00 11月18日，保加利亚“爱情往事”，15:30 11月9日，西班牙“黑色面包”，两场17:30及19:30 Nov.18th, Bulagaria “Something More About Love”, timing: 15:30 Nov.9th, Spain “Black Bread”, timing: 17:30 and 19:30 购票联系：Tickets booking 022-23219061-23219067，022-23219069（团体 group） 购票联系：Tickets booking 11月10日，爱尔兰“跑道”，两场17:30及19:30 022-87587199 Room 2918, 29F, The Exchange Tower 2,189 Nanjing Lu Heping District Tel: +86 22 2318 5075 Fax: +86 22 2318 5074 www.amchamchina.org Nov.10th, Ireland “The Runway”, timing: 17:30 and 19:30

62 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 63 Past Events Chamber Report

Past Event: What is better to welcome back the BenCham members and their family in the open air than with a lovely barbecue? That’s right, nothing! While everyone was still being a bit in the summer mood but had already started preparing for the second half of the year, BenCham together with Van Thiel & Co, organised a BBQ. On 22 September, a group of more than 70 people got together in the wonderful garden of the Van Thiel & Co showroom. It was the perfect occasion to welcome old and new friends with their families, and together, they enjoyed the last bits of summer. Everything was provided for; entertainment for the children and delicious snacks for adults. Great food was provided by Katherin Witbreuk from Black Chook Catering and refreshing Belgian beers (courtesy of Vandergeeten). For most people, the evening started at the Hilton Hotel. From there the transportation was provided for so everyone could relax while bus drivers knew the way. After arriving in Shunyi the joy began, as the beers were cold and the snacks were ready. In the garden, several young entrepreneurs from the Benelux community displayed their products and services. They, in the relaxing atmosphere of the barbecue, promoted their businesses whilst appreciating the ambience. The entertainment for the kids existed out of a bouncy castle; this satisfied them almost the whole evening which the parents, off course, appreciated. At the end of the evening, everyone went home with not only a full stomach but also new contacts, new experiences and new stories to tell. The BenCham and Van Thiel & Co BBQ was undoubtedly a successful social gathering and a great kick off of the second half of the business year! Living History Drives through Tianjin Benelux Chamber of Commerce, Beijing Office – (mailbox No. 78) 1601 Zhongyu Plaza,A6 Gongtibei Road, Chaoyang District, Beijing; 100027 By Matthew Baum 北京市朝阳区工体北路甲6号, 中宇大厦1601, 78 号邮箱， 邮政编码: 100027 Tel: +86 (0)10 8523 6101/05 - Fax: +86 (0)10 8523 6305 Email: [email protected] - Website: www.bencham.org he Astor Hotel: A Luxury Collection Hotel, Tianjin, hosted the Tianjin leg of the China Rally of International Classic Cars 2012. Guests assembled at the Astor for an evening of drinks and appreciation of the beauty of one of Bentley’s most historic classic cars: The 8-Litre model was originally driven by W. O. Bentley himself. The classic car drew Tmany stares and a lot of attention from hotel guests and passersby. The 8-litre was the main attraction, but other attendees, such as renowned German Formula One driver Hans-Joachim Stuck and Chinese driver Rose Tan, also added to the Past Events: authenticity of the event. 11 Oct, 2012. Social Insurance Law for Foreigners , Fairmont Hotel, Beijing. The attendees were visiting the Astor Hotel as part of the China Rally that took place from the 8-15 October. Guests were - What has actually changed for expatriates and employers? welcomed with a cocktail reception and then strolled through the hotels museum. The museum celebrates the 150 years of - What are the differences between the different regions? the hotels fascinating history. This not only highlighted the rich history of Tianjin, but also complemented the event’s theme - What are the future tendencies? of cultural heritage in the midst of our modern society. After the tour through the museum, guests sat down to a four course To answer these questions and more for you, Chet Scheltema from Dezan Shira and Kristie Tien from HIL Lawyers. meal in the 1863 Astor Bistro. 13-14 Oct, 2012. SAVE THE DATE, Celebrate Italy in China: Festival Italiano in Suzhou. The rally started in Beijing and went through Jinan, Xuzhou, Hefei, Nanjing and Hangzhou before finishing in Shanghai. FESTIVALITALIANO offers you the great opportunity to advertising your brand and services and showcasing your products to more than 10.000 Whilst speaking to some of the drivers, many remarked about how they were pleasantly surprised by the conditions on the Chinese people and foreign companies’ executivesFashion shows, Italian wine & food tasting activities, family entertainments will delight the public audience of all ages and represent the liaison between Chinese and Italians. Chinese roads and they mentioned receiving a lot of waves and photos from Chinese drivers which they passed on their way to Tianjin. The rally is the second of its kind that was held across China and was held to celebrate and introduce the range of western classic cars that are available for vintage car enthusiasts to Chinese people. Upcoming Events: 15 Oct, 2012. How to get your money back, Le Royal Meridien, Shanghai. The seminar will cover the following topics: Oct 18, 2012.Autumn Joint Chamber Networking, Gallery Hotel, Beijing. 1. RMB convertibility 25 Oct 2012. The Future of CNY, The Portman Ritz-Carlton, Shanghai. 2. Current RMB valuation and ongoing internationalization 3. RMB as an asset class and investment products 4. RMB/FX hedging solutions for enterprises

Beijing, Unit 1612, Zhongyu Plaza, A6, Gongti North Road, Chaoyang District, 100027, Beijing, China Shanghai, Room 1604, Xin Cheng Mansion, No.167 Jiang Ning Road, 200041 Shanghai, China Guangzhou, Garden Hotel, Room 948, 368 Huanshi Dong Road, Garden Tower, 510064 Guangzhou, China

64 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 65 Past Events Past Events

Astor & ST. Regis Alstom table Goglio table MC call on guest to get involved in EU Film ST.Regis Bar Manager showing how to make Dry Vokda Martini Cocktail Festival quiz A Night with the Stars! By Matthew Baum Asia Power Systems table Airbus table The European Union Chamber of Commerce in China, Tianjin Chapter hosted NNIT & Siemens the 7th annual European Business Gala Dinner on 12 October in ST. Regis Hotel Tianjin. The Gala Dinner started with the Red Carpet Walk and Pictures taking around 6:30pm, Guests were greeted with a cocktail reception and then sat down to an all-you-can-eat buffet. There was a range of food available from I am Danish, I have the correct countries all over Europe, which added an authentic European flavour to the answer this time… event. The event ended around 12:30pm, with over 300 guests satisfied after six hours of gourmet delights, top-class entertainment and business networking opportunities. I won the prize and the lovely bear! Veolia table Local Board There was a huge selection of drinks available, with red and white Italy wines provided by the up and coming Milan Wines company. The Drei Kronen 1308 Brauhaus, Tianjin’s authentic German restaurant and brewery, provided guests with their homebrewed beer. Guests stayed and enjoyed the various cocktails Guest preparing Sangria and a selection of European wine tasting until midnight. cocktail on stage The event had a movie theme that was inspired by the 5th European Union

Guest making her own Sangria Film Festival that will be held in four cities including Tianjin with 26 movies with the help of ST.Regis Bar screening during the whole month in November. CBRE Key note from Manager Brochot Who is the next lucky star The film festival atmosphere was supplemented with a range of exciting Local Chair events held throughout the night. Programs at the Gala Dinner started with an amazing 5 minutes trailers of this year EU Film Festival, followed by a movie quiz to get the group tickets for EU Film Festival, a cocktail making competition where guests made the classic drinks Sangrias and Martinis representing the characters of two famous movie star “Sean Connery (007 cocktail)” and “Penelope Cruz (Spanish Summer Concoction)”., a raffle draw with a huge range of prizes and a live band that played elegant classical music; as well as other performances. Wait, I know the answer! GDF SUEZ All of the above factors came together to create a memorable evening, but Let me think again... Westin Milan Winery perhaps the most important part of the event was the chance for guests to get to know each other and network to their heart’s content. The unique environment provided the over 300 guests from the very best Fortune 500 companies to meet local business people, and vice versa. The event proved a great success, and all who attended are looking forward to the 8thGala next year. We also would like to take this chance to thank for all the sponsors for their

Mr. Alex Tham from Alcan China great support and generous sponsorship. tasted the Martini IST Oh, I am right! FLO couple Cintas

Most active member for Chamber Most Contributing Working Group Chair in 2011-2012 Family picture no matter where you are from events in Y2011-2012 Turck Alcan Asia Power Systems Couple 66 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 67 Calendar Calendar

NOVEMBER 2012 Include your event Special Days 7 Nov Start of Winter (Lì Dōng) 22 Nov Thanksgiving Day, Minor Snow (Xiǎo Xuě) Tianjin & Beijing & Shanghai EVENTS email to [email protected]

China-Tianjin (Bohai-Rim) 2012 Shanghai International Die- China Beijing International Creative Beijing People’s Art Theatre Drama International Food Trade Fair casting, Foundry, Forging Exhibition Design Week 2012 Wotou Compound 中国天津环渤海国际食品交易会 2012上海国际压铸、铸造、锻造展览会 中国国际创意设计推广周 窝头会馆 01 Tianjin International Exhibitoin Center 07 Shanghai International Exhibition Center 14 ChineseInternational Exhibitional Center 21 Tianjin Grand Theatre 天津大剧院 THU WED 上海国际展览中心 WED 中国国际展览中心老馆 WED 星期四 天津国际展览中心 星期三 星期三 星期三 19:30 +86 22 2835 5079 Nov 7-9 +86 10 8807 5716; 8807 5755 80 / 180 / 380 / 580 /880 / 1280 +86 136 8332 1975 Nov 1-5 +86 22 8388 2000 Nov 21-25

Editor’s Editor’s 龙蛇小霸王 November Monthly Lunch Bugsy Malone pick pick The Seldon Theatre & Mini Christmas Bazaar Wellington College International Tianjin 十一月午餐&迷你圣诞集市 天津惠灵顿国际学校 15 03 “Aulare” Latin Restaurant SAT THU 星期六 +86 22 8758 7199 星期四 (Magnetic Capital Building A4) +86 187 2248 7836; 136 4200 4609 艾伊莎贝西餐厅 Nov 3-6 (天津市南开区宾水西道时代奥城A4座) Tianjin Nostalgia: 10:30-15:00 Bazaar 12:00 Lunch & membership Sheng Yang Vocal Recital 120 (Members)/150 (Non members) 乡愁——沈洋独唱音乐会 09 Tianjin Grand Theatre 天津大剧院 FRI 19:30 星期五 Antique Furniture China 2012 60 / 80 / 120 / 280 / 480 / 680 Tianjin Fashion & Dress Brand Expo +86 22 8388 2000 -Autumn Season 天津时尚名品博览会 上海古典家具展览会（秋季） Tianjin Meijiang Convention Center 16 天津梅江会展中心 23FRI Shanghai International Exhibition Center FRI +86 755 8222 2201 星期五 上海国际展览中心 星期五 Nov 16-26 Nov 23-26

Vin China 2012 China logistics 2012 China international regimen expo 中国（北京）国际葡萄酒烈酒展览会 中国（北京）国际物流展览会 中国国际养生美容展 China National Convention Center Beijing International Trade Exhibition Center China National Convention Center 04 国家会议中心 国家会议中心 北京国贸国际会展中心 24 SUN 18 SAT +86 400 6798 796 SUN +86 10 5979 2573 星期日 +86 10 5245 3021 星期六 Nov 4-6 星期日 Nov 24-26 2012 Tianjin Building Material Exhibition 2012天津建材展 14th China International Industry Fair Tianjin Meijing Convention Center 国际工业博览会 Tianjin Valery Gergiev and Orchestra FISITA World Automotive Congress 09 天津梅江会展中心 世界汽车工程展览会 Shanghai New International Expo Center FRI of the Mariinsky Theatre Concert 星期五 +86 22 8961 6067 捷杰耶夫与马林斯基剧院交响乐团音乐会 China National Convention Center 06 上海新国际博览中心 Nov 9-12 TUE Tianjin Grand Theatre 27 国家会议中心 +86 21 2206 8888 19 星期二 MON 天津大剧院 TUE Nov 6-10 China World Fruit & Vegetable Trade Fair +86 10 6334 5809 星期一 19:30 星期二 Nov 27-30 中国国际果蔬、加工技术及物流展览会 280 / 580 / 880 / 1280 / 1680 / 1880 China National Convention Center +86 22 8388 2000 国家会议中心 +86 10 8810 2253; 8810 2255 Nov 9-11 Shanghai International Wine & Spirits China Beijing international housing Exhibition 2012 industry exposition 28 2012上海国际葡萄酒及烈酒展览会 中国北京国际住宅产业博览会 WED Shanghai International Import and Export Tianjin Chopin and Painting: Krzysztof 21 星期三 Food & Beverages Exhibition 2012 WED China National Convention Center Jablonski Multimedia Piano Concert 国家会议中心 2012上海进出口食品及饮料展览会 音画肖邦 星期三 Shanghai International Exhibition Center 天津大剧院 +86 10 8808 2135 10 Tianjin Grand Theatre 上海国际展览中心 Nov 21-23 SAT 19:30 +86 21 6295 6677 星期六 30 / 50 / 80 / 120 / 180 / 280 Nov 28-30 +86 22 8388 2000

68 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 69 Business Chinese Lesson Business Chinese Lesson

70 NovOct 20122012 I I BusinessBusiness TianjinTianjin Nov 2012 I Business Tianjin 71 Transportation Transportation

for more, contact [email protected] Selected INTERNATIONAL FLIGHTS (1=Mon, 2=Tue, 3=Wed, 4=Thu, 5=Fri, 6=Sat, 7=Sun) From Beijing To Beijing From Tianjin To Tianjin DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days Istanbul 23:55 05:25 TK21 1234567 Istanbul 00:35 14:00 TK20 1234567 DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days * Flights from Beijing to Istanbul, from Istanbul to Beijing provided by Turkish Airlines. 11:20 14:00 KE806 09:20 10:10 KE805 Schedules are subject to government approval and may be changed without prior notice. Seoul* 1234567 Seoul* 1234567 15:20 18:05 KE864 13:20 14:10 KE863 The summer extra flights KE863/KE864 are operated between May 28 - Oct 27,2012. From Tianjin To Tianjin From Seoul To Seoul DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days Singapore 09:15 15:05 TZ089 1..45.7 Singapore 01:30 07:30 TZ088 1..45.7 DEST DEP ARR Flight No Days ORIGIN DEP ARR Flight No Days 11:10 07:25 KE001 1234567 10:00 19:45+1 KE002 1234567 15:10 09:00 KE017 1234567 11:00 17:45+1 KE018 1234567 ¥83 one way BULLET (C) TRAIN Los Angeles Los Angeles TIANJIN-BEIJING AIRPORT Shuttle Bus 19:50 13:30 KE011 1234567 23:30 06:25+2 KE012 1234567 Tianjin - Beijing Airport Terminals 2/3 TJ ~ BJS (¥55 - ¥66) BJS ~ TJ (¥55 - ¥66) 21:35 15:20 KE061 1.3.5.. 23:30 06:25+2 KE062 .2.4.6. 04:00-18:00, runs every hour. Tian Huan Distance Bus Passenger Station Train Tianjin Beijing Train Beijing Tianjin The junction of Hongqi Lu and Anshan Xi Dao. Tel: +86 2305 0530 C2002 06:25 06:55 C2001 06:35 07:05 Las Vegas 20:55 14:40 KE005 1.3.5.. Las Vegas 23:40 06:15+2 KE006 1.3.5.. C2094 22:45 23:15 C2093 23:00 23:30 San Francisco 16:10 09:20 KE023 1234567 San Francisco 11:20 17:35+1 KE024 1234567 Beijing Airport Terminals 2/3 - Tianjin 07:00, 08:00, 09:00, 10:00 then every 30 minutes until 23:00. Exit on the 1st floor at Seattle 18:10 10:30 KE019 .234.67 Seattle 12:35 17:50+1 KE020 .234.67 TG ~ BJS (¥66 - ¥80) BJS ~ TG (¥66 - ¥80) Gate 15 / Terminal 2 and Gate 1 / Terminal 3. Tel: +86 10 6455 8718 Train Tanggu Beijing Train Beijing Tanggu Dallas 11:00 08:20 KE031 .234.67 Dallas 10:30 16:45+1 KE032 .234.67 C2274 12:40 13:10 C2273 10:45 11:15 ¥90 one way Chicago 11:40 08:50 KE037 1234567 Chicago 11:40 16:20+1 KE038 1234567 TEDA-BEIJING AIRPORT Shuttle Bus C2280 20:25 20:55 C2279 18:50 19:20 10:05 09:10 KE035 1234567 01:00 05:50+1 KE034 ..3.5.7 TEDA - Beijing Airport Terminals 2/3 Atlanta Atlanta 06:45, 08:45, 14:45, 17:15. 1st Avenue, TEDA. Tel: +86 22 6620 5188 19:15 18:40 KE033 .2.4.6. 12:15 17:00+1 KE036 1234567 Wuqing ~ BJS (¥39 - ¥46) BJS ~ Wuqing (¥39 - ¥46) Train Wuqing Beijing Train Beijing Wuqing 10:15 09:35 KE093 1234567 11:50 16:10+1 KE094 1234567 Beijing Airport Terminals 2/3 - TEDA Washington , D.C. Washington , D.C. C2202 06:53 07:18 C2201 06:45 07:07 10:30, 13:00, 18:30, 20:30. Exit on the 1st floor at Gate 15 /Terminal 2 and Gate 1 / 10:20 10:00 KE081 1234567 00:50 0505+1 KE086 1234567 C2232 20:43 21:08 C2231 21:15 21:37 New York New York Terminal 3. Tel: +86 10 6455 8718 19:30 19:10 KE085 1234567 12:20 16:35+1 KE082 1234567 19:00 08:25 KE051 1234567 10:30 16:15+1 KE052 1234567 Honolulu Honolulu 21:00 10:15 KE053 1234567 12:20 17:35+1 KE054 1234567 TIANJIN SUBWAY Vancouver 18:35 11:05 KE071 1234567 Vancouver 12:55 17:35+1 KE072 123.56. 刘园 小淀 10:40 09:30 KE073 2.4.6.7 11:30 15:20+1 KE074 2.4.6.7 华北集团 Toronto Toronto Liu Yuan North China Group Xiao Dian Sao Paulo 21:35 11:40+1 KE061 1.3.5.. Sao Paulo 14:30 06:05+2 KE062 .2.4.6. 丰产河 西横堤 Feng Chan He * Flights from Beijing/Tianjin to Seoul to Beijing/Tianjin provided by Korean Air. Xi Heng Di 宜兴埠 天士力 Schedules are subject to government approval and may be changed without prior notice. Tasly Station 果酒厂 Yi Xing Bu Guo Jiu Chang 张兴庄 Zhang Xing Zhuang 本溪路 Ben Xi Lu Line 1 Introducing our new flight schedule to Nairobi Kenya 勤俭道 铁东路 Qin Jian Dao Tie Dong Lu Line 2 Transfer station

Korean Air will launch 3 non-stop flight services per week from Incheon, Korea to Nairobi, 洪湖里 天津北站 Line 3 terminal Kenya on June 21. Korean Air will become the first air carrier in Northeast Asia to extend Tianjin North Railway Station Hong Hu Li Line 9 flight services to Nairobi. Fly to Nairobi with Korean Air and enjoy the grand African savanna, the safari tour, and the indigenous people full of primitive energy. 中山路 天津西站 Zhong Shan Lu ORIGIN DESTINATION FLIGHT DEPARTURE ARRIVAL DAY Tianjin West Railway Station 金狮桥 Incheon Nairobi KE959 20:45 05:05+1 1.3.5 Jin Shi Bridge 西北角 Nairobl Incheon KE960 10:30 4:40 2.4.6 Xi Bei Jiao 天津站 芥园西道 Tianjin 远洋国际中心 曹庄 West Jie 长虹公园 西南角 东南角 Railway Sino-Ocean 靖江路 屿东城 国山路 Cao Zhuang Yuan Road Chang Hong Park Xi Nan Jiao Dong Nan Jiao Station International Center Jing Jiang Lu Yu Dong Cheng Guo Shan Road

Introducing our new flight schedule to Gatwick London 卞兴 咸阳路 广开四马路 鼓楼 建国道 顺驰桥 翠阜新村 登州路 空港经济区 Bian Xing Xian Yang Lu Guang Kai Drum Tower Jian Guo Dao Shun Chi Bridge Cui Fu Xin Cun Deng Zhou Lu Tianjin Airport Economic Area In addition to the daily flights to Heathrow, London, Korean Air proudly introduces its new flight Si Ma Lu 二纬路 津湾广场 service to Gatwick, London from Seoul 3 times per week starting on April 28, 2012. With our 大王庄 Er Wei Lu Jinwan Plaza convenient schedule of 10 flights per week to London, paired with unparalleled in-flight service, Da Wang Zhuang traveling will become even more comfortable. 东兴路 和平路 Dong Xing Road ORIGIN DESTINATION FLIGHT DEPARTURE ARRIVAL DAY He Ping Lu 海光寺 营口道 十一经路 Incheon Gatwick KE909 15:20 18:40+1 2.4.6 Hai Guang Temple Ying Kou Dao Shiyijing Road 直沽 中山门 Gatwick Incheon KE910 20:25 16:10+1 2.4.6 Zhi Gu Zhong Shan Men 鞍山道 小白楼 An Shan Dao Xiao Bai Lou 红旗南路 天塔 South Hong Qi Lu TV Tower 西康路 Xi Kang Lu 下瓦房 Changes to Korean Air Baggage Regulations 王顶堤 周邓纪念馆 吴家窑 Xia Wa Fang Wang Ding Di The Memorial to Wu Jia Yao In regard to free baggage allowance and baggage fee, Korean Air currently Zhou Enlai and 南楼 财经大学 Current (Weightsystem- regulates 华苑 土城 复兴门 Economics and applies the Weight System which regulates the total weight of baggage and the Class Revised Deng Yingchao Nan Lou Piece System which regulates the number of pieces differently for each route. the total weight of baggage) Hua Yuan Tu Cheng Fu Xing Men finance college However, Korean Air will only apply the Piece System for all routes starting on (Piece system- regulates the 大学城 May 31, 2012 (based on date of issuance). First 40kg 陈塘庄 华山里 双林 number of pieces) University Town Chen Tang Zhuang Hua Shan Li Shuang Lin Changes to Korean Air baggage regulations are as follows: Prestige 30kg 3 Piece (32kg each) 高新区 Free Baggage Allowance (Domestic and Intl routes, excluding the Tianjin Binhai Hi-tech Industrial Development Area Americas) Economy 20kg 2 Piece (32kg each) For more information, please refer to www.koreanair.com baggage information.

72 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 73 Lifestyle Recommendations / Tianjin Lifestyle Recommendations / Tianjin DINING DINING SERVICES

Café Venice Wine Catering Solutions A: 2F, Holiday Inn Tianjin Riverside Phoenix Shopping Mall The St. Regis Bar East Haihe Road, Hebei District A: 1F, The St. Regis Tianjin. No. 158 T: +86 22 2627 8888 ext. 2271 Zhang Zizhong Road, Heping District 威尼斯咖啡厅 +86 22 5830 9958 GEMS World Academy 河北区海河东路凤凰商贸广场 T: 瑞吉酒吧 Tianjin Eco City, China 天津海河假日酒店2楼 和平区张自忠路 号天津瑞吉金 158 A: Unit 3-307, TEDA MSD Block Flo Prestige Tao Li Chinese Restaurant 融街酒店一层 C 79 1st Avenue, TEDA Western A: No.37, Guangfu Road A: 6F, Hotel Nikko Tianjin Glass House (津塔旁，哈密道正对面) T: +86 22 6622 7888 Italian Style Town, Hebei District TIANJIN No. 189, Nanjing Lu, Heping District Hyatt Regency Jing Jin City 天津杰美司国际学校 +86 22 2662 6688 Resort & Spa 开发区第一大街 号泰达 区 T: T: +86 22 8319 8888 ext. 3561 79 MSD-C 福楼外宴策划 Chinese 桃李中餐厅 A: No. 8, Zhujiang Da Dao Accounting 3楼307室 河北区意大利风情区光复道37号 和平区南京路189号 Zhouliang Zhuang, Baodi District China Station 天津日航酒店6层 T: +86 22 5921 1234 A: 2F, Radisson Plaza Hotel Tianjin 水晶厨房 No. 66, Xinkai Lu, Hedong District Hotels & Apartments Yan Ting Chinese Restaurant 宝坻区周良庄珠江大道8号 T: +86 22 2457 8888 Aulare Latin Restaurant 京津新城凯悦酒店 中国站 A: 2F, The St. Regis Tianjin, No. 158 A: Magnetic Plaza, Building A4 Hotels 河东区新开路66号天津天诚丽笙世 Zhang Zizhong Lu, Heping District 2-16, Binshui Xi Dao Pan Shan Grill & Wine Tianjin Office: Hotel Indigo Tianjin Haihe 嘉酒店2层 T: +86 22 5830 9999 Nankai District 宴庭中餐厅 2F, Main Building A: Unit 2901 - 104 T: +86 187 2229 0691 A: Wellington College No.314 Jiefang South Road, 和平区张自忠路 号天津瑞吉金 Sheraton Hotel Tianjin The Exchange Tower 2 158 [email protected] Hexi District, 300202, Tianjin, Fortune Restaurant E: No.189, Nanjing Lu International Tianjin 融街酒店2楼 艾伊莎贝西餐厅 Zi Jin Shan Lu, Hexi District China A: 2F, Crowne Plaza Tianjin Binhai Heping District A: No. 1, Yide Dao, Hongqiao District (津塔旁，哈密道正对面) 南开区宾水西道时代奥城 座 号 T: +86 22 2731 3388 ext.1820 T: +86 22 8832 7686 No. 55, Zhongxin Da Dao A4 2-16 T: +86 22 2318 5056 T: +86 22 8758 7199 ext. 8001 盘山葡萄酒扒房 +86 22 8832 7623 Airport Industrial Park Mobile: +86 187 2248 7836 F: 紫金山路天津喜来登大酒店主楼2层 F: +86 22 2318 5001 天津海河英迪格酒店 +86 22 5867 8888 ext. 2355 E [email protected] [email protected] T: Japanese : E: 中国天津市河西区解放南路314号 富淳中餐厅 天津市和平区南京路189号 W: wellington-tianjin.cn 空港物流加工区中心大道55号 Benkay Japanese Dining 津汇广场 2座29层2901-104室 天津惠灵顿国际学校 天津滨海圣光皇冠假日酒店2层 A: 5F, Hotel Nikko Tianjin, No. 189 红桥区义德道1号 Nanjing Lu, Heping District Promenade Restaurant Beijing Office: +86 22 8319 8888 ext. 3558 A: 1F, The St. Regis Tianjin Fountain Lounge T: Bistro Thonet A: 6/F, Dongwai Diplomatic 和平区南京路189号天津日航酒店5层 No. 158, Zhang Zizhong Road Event Planning Hyatt Regency Jing Jin City A: No.55 Chongqing Road, Building A: 弁慶日本料理餐厅 Heping District Resort & Spa Heping District No. 23, Dongzhimenwai Dajie T: +86 22 5830 9959 Beijing No. 8, Zhujiang Da Dao T: +86 22 8713 5555 河岸国际餐厅 T: +86 10 8532 1720 Zhouliang Zhuang, Baodi District Kasumi E: [email protected] 和平区张自忠路158号天津瑞吉金 F: +86 10 85322746 Holiday Inn Tianjin Riverside T: +86 22 5921 1234 A: 1F, Crowne Plaza Tianjin Binhai W: qingwangfu.com 融街酒店一层 E [email protected] A: Phoenix Shopping Mall 碧泉茶园 No. 55, Zhongxin Da Dao 庭悦咖啡 : (津塔旁，哈密道正对面) 北京朝阳区东直门外大街23号， Haihe Dong Lu, Hebei District 宝坻区周良庄珠江大道 号 Airport Industrial Park 和平区重庆道55号庆王府院内 InterMediaChina is Tianjin’s 8 东外外交办公大楼602 +86 22 2627 8888 +86 22 5867 8888 ext. 2322 premiere event planning company. T: 京津新城凯悦酒店 T: 天津海河假日酒店 霞日式料理 We will pinpoint the features that 河北区海河东路凤凰商贸广场 空港物流加工区中心大道55号 Shanghai Office: can make your event a success and A: Room 1501 & 1504, WanTai ensure that your target audience is 天津滨海圣光皇冠假日酒店1层 Brasserie Flo Tianjin Riviera Restaurant International Building, reached through superb advertising A: No.37, Guangfu Road A: 1F,The St. Regis Tianjin. No.480, North Urumqi Lu and promotion. Kushi Grill Italian Style Town, Hebei District No. 158, Zhang Zizhong Road Jing An District Also arrange the following: 2F, Radisson Blu Plaza Hotel Tianjin T: +86 22 2662 6688 A: Heping District T: +86 21 6249 0055 • Budgeting No. 66, Xinkai Lu, Hedong District 福楼 • Selecting and reserving the event site +86 22 5830 9962 Bars F: +86 21 6288 1636 Qing Wang Fu 河北区意大利风情区光复道 号 T: • Transportation and parking T: +86 22 2457 8888 37 蔚蓝海法餐厅 E: [email protected] Hotel Nikko Tianjin A: No. 55, Chongqing Road 串烧 China Bleu 上海市静安区乌鲁木齐北路480 To set up an event with A: No. 189, Nanjing Lu, Heping District 和平区张自忠路158号天津瑞吉金 Heping District 河东区新开路66号天津天诚丽笙世 A: 50F, Tangla Hotel Tianjin, No. 219 号1501&1504 InterMediaChina, please send +86 22 8319 8888 1863 the Dining Room 融街酒店一层 T: T: +86 22 8713 5555 嘉酒店 层 Nanjing Lu, Heping District e-mail to [email protected] 天津日航酒店 2 A: 1F, The Astor Hotel Tianjin (津塔旁，哈密道正对面) +86 22 5835 2555 T: +86 22 2321 5888 和平区南京路 号 No. 33, Tai’er Zhuang Lu 中国蓝酒吧 189 E: [email protected] Seitaro Heping District W: qingwangfu.com Spectrum All-Day Dining 南京路219号天津唐拉雅秀酒店50层 A: Sheraton Hotel Tianjin T: +86 22 2331 1688 ext. 8918 Education 庆王府 A: 7F, Hotel Nikko Tianjin Zi Jin Shan Lu, Hexi District 1863 至尊西餐厅 和平区重庆道55号 No. 189, Nanjing Lu, Heping District O’Hara’s 和平区台儿庄路33号天津利顺德大 International Schools T: +86 22 2731 0909 A: 1F, The Astor Hotel Tianjin 清太郎日本料理 饭店豪华精选酒店1层 T: +86 22 8319 8888 ext. 3570 彩西餐厅 No. 33, Tai’er Zhuang Lu Riverside Chinese Restaurant 河西区紫金山路喜来登大酒店 3F, Holiday Inn Tianjin Riverside 南京路189号天津日航酒店7层 Heping District A: Café@66 Phoenix Shopping Mall T: +86 22 2331 1688 ext. 8919 SóU A: 1F, Radisson Bul Plaza Hotel Tianjin 海维林 International School of Tianjin East Haihe Road, Hebei District A: 49F, Tangla Hotel Tianjin, No.219 No. 66, Xinkai Lu, Hedong District 和平区台儿庄路33号天津利顺德 A: Weishan Lu, Jinnan District +86 22 2627 8888 ext. 2211 T: 大饭店豪华精选酒店 层 海河轩中餐厅 Nanjing Road, Heping District T: +86 22 2457 8888 1 T: +86 22 2859 2001 咖啡 国际学校天津分校 河北区海河东路凤凰商贸广场 T: +86 22 2321 5888 ext.5106 66 思创 河东区新开路66号天津天诚丽笙世 津南区津南微山路 天津海河假日酒店3楼 River Lounge 南京路219号天津唐拉雅秀酒店49楼 嘉酒店1层 Leave your footprint on the Haihe River. The latest address for an Shui An Café Majestic afternoon rendez vous. Cocktails A: 1F, The Astor Hotel Tianjin Thai A: 1F, The Astor Hotel Tianjin two for one bottles at 25% off. No. 33, Tai’er Zhuang Lu YY Beer House No. 33, Tai’er Zhuang Lu A: The St. Regis Tianjin, No.158, Heping District (Behind International Building) T: +86 22 2331 1688 ext. 8910 Zhang Zi Zhong Lu, Heping District T: +86 22 2331 1688 ext. 8920 A: No. 3, Aomen Lu 凯旋咖啡厅 T: +86 22 5830 999 水岸中餐厅 Tianjin International School Heping District 和平区台儿庄路33号天津利顺德大 W: stregis.com/tianjin 和平区台儿庄路33号天津利顺德大 A: No.4-1, Sishui Dao, Hexi District T: +86 22 2339 9634 饭店豪华精选酒店1层 畔吧 饭店豪华精选酒店1层 和平区张自忠路158号天津瑞吉金 T: +86 22 8371 0900 粤园泰餐厅 天津国际学校 和平区澳门路3号(国际大厦后侧) 融街酒店 (津塔旁，哈密道正对面) 河西区泗水道4号增1号

74 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 75 Lifestyle Recommendations / Tianjin Lifestyle Recommendations / Teda & Tanggu SERVICES HEALTH DINING HOTEL Hyatt Regency Jing Jin City Apartment Resort & Spa Logistics Serviced Office Italian Spas Astor Apartment A: No. 8, Zhujiang Da Dao A: No. 32, Tai’er Zhuang Lu LOGISTICSTIANJIN can provide Touch Spa Zhouliang Zhuang, Baodi District Heping District a full range of LOGISTICS A: 2F, Renaissance Tianjin TEDA +86 22 5921 1234 SERVICES: T: T: +86 22 2303 2888 Tianjin TEDA Maple Leaf Hotel & Convention Centre 京津新城凯悦酒店 利顺德公寓 ▪ Import and Export shipments No. 29, 2nd Avenue, TEDA ▪ Pick up/deliver shipments and Tianjin United Family Hospital International School 宝坻区周良庄珠江大道8号 +86 22 6570 9504 和平区台儿庄路32号 documents A: No. 71, 3rd Avenue, TEDA T: Regus Tianjin Center A: No.22, Tianxiao Yuan 开发区第二大街 号天津万丽泰达 ▪ Inland container transportation T: +86 22 6200 1920 29 A: 8F, Tianjin Centre, No.219 Tanjiang Dao, Hexi District Bene Italian Kitchen Sheraton Apartment ▪ Customs clearance 天津泰达枫叶国际学校 酒店及会议中心 Nanjing Road, Heping District T: +86 22 5856 8500 (Reception) A: 2F, Sheraton Tianjin Binhai Hotel Zi Jin Shan Lu, Hexi District ▪ Inspection and quarantine 开发区第三大街71号 A: T: 400 120 1205 24 Hour Emergency: No. 50, 2nd Avenue, TEDA +86 22 2731 3388 declaration Yue Spa T: ▪ Warehousing in bonded zones W: www.regus.cn +86 22 5856 8555 +86 22 6528 8888 ext. 6230/6232 喜来登公寓 T: A: 15F, Holiday Inn Binhai Tianjin Radisson Blu Plaza Hotel Tianjin For further details, send e-mail to 雷格斯天津中心 W: ufh.com.cn 班妮意大利餐厅 河西区紫金山路 Hotels No. 86, 1st Avenue, TEDA A: No. 66, Xinkai Lu, Hedong District [email protected] 和平区南京路219号天津中心8层 天津和睦家医院 开发区第二大街50号 +86 22 6628 3388 河西区潭江道天潇园 号 天津滨海喜来登酒店 层 Holiday Inn Binhai Tianjin T: T: +86 22 2457 8888 22 2 开发区第一大街 号天津滨海假日 天津天诚丽笙世嘉酒店 A: No. 86, 1st Avenue, TEDA 86 Printing Servives 酒店15层 河东区新开路66号 T: +86 22 6628 3388 Gyms Western 天津滨海假日酒店 TIANJINPRINT is a 24-HOURS professional printing service 开发区第一大街86号 Tangla Hotel Tianjin Powerhouse Gym Brasserie Restaurant Hospitals A: No. 219, Nanjing Lu, Heping District provider. Provides the highest level A: Binjiang Shopping Center, Kaifeng of service by employing the most A: Renaissance Tianjin TEDA +86 22 2321 5888 T: Somerset International advanced equipment, superior Dao, Xiao Bai Lou (1902 Street) Hotel & Convention Centre 天津唐拉雅秀酒店 Building Tianjin customer service, and excellent Hexi District No. 29, 2nd Avenue, TEDA 和平区南京路219号 +86 22 2302 2008 A: No, 75, Nanjing Lu quality control systems, to ensure The Executive Centre T: T: +86 22 6621 8888 ext. 3711 that customers receive the highest 宝力豪健身俱乐部 Heping District Asia-Pacific’s Premium Serviced 万丽西餐厅 RENAISSANCE TIANJIN TEDA quality products and services. 河西区小白楼滨江购物中心 Tianjin TEDA International SOS T: +86 22 2330 6666 Office Provider 开发区第二大街29号天津万丽泰达 CONVENTION CENTRE HOTEL Print, including design, prepress, 酒店及会议中心 Clinic 天津盛捷国际大厦服务公寓 41F, Tianjin World Financial Center A: No. 29, 2nd Avenue, TEDA finishing, binding and inserting. A: A: 102-C2 MSD, No.79 和平区南京路75号 For projects or inquiries, please 2 Dagubei Road, Heping District T: +86 22 6621 8888 1st Avenue, TEDA, Tianjin send e-mail Tianjin 天津万丽泰达酒店及会议中心 TEDA & TANGGU T: +86 22 6537 7616 Somerset Olympic Tower Tianjin to [email protected] T: +86 22 2318 5111 开发区第二大街29号 国际SOS天津泰达诊所 A: No. 126, Chengdu Dao executivecentre.com Renaissance Tianjin Lakeview W: 天津经济技术开发区第一大街79号 Heping District 天津德事商务中心 Hotel Promotional Products Brazilian 泰达MSD-C区2座102室 T: +86 22 2335 5888 和平区大沽北路2号天津环球金融中 Feast All Day Dining A: No. 16, Binshui Dao, Hexi District Salsa Churrasco Restaurant 天津盛捷奥林匹克大厦服务公 PROMOTIANJIN is a traditional 心津塔写字楼41层 T: +86 22 5822 3388 11F, Holiday Inn Binhai Tianjin 寓和平区成都道126号 promotional products agency A: A: 1F, Sheraton Tianjin Binhai Hotel Gyms 万丽天津宾馆 serving major corporations and non- No. 86, 1st Avenue, TEDA No. 50, 2nd Avenue, TEDA 河西区宾水道16号 Somerset Youyi Tianjin profit agencies since 1998. Based in Travel Agencies T: +86 22 6628 3388 ext. 2740 T: +86 22 6528 8888 ext. 6210 Champs Elysees A: No. 35, Youyi Lu, Hexi District Tianjin, it has been actively serving 巴西烧烤餐厅 盛宴全日制西餐厅 A: 2F, Renaissance Tianjin TEDA Sheraton Tianjin Binhai Hotel T: +86 22 2810 7888 accounts in financial services, health 开发区第一大街86号天津滨海假日 开发区第二大街50号 Hotel & Convention Centre care, media, non-profit, advertising, No. 50, 2nd Avenue, TEDA 天津盛捷友谊服务公寓 酒店11层 天津滨海喜来登酒店1层 A: No. 29, 2nd Avenue, TEDA cultural affairs and home and +86 22 6528 8888 河西区友谊路35号 T: T:: +86 22 6621 8888 industrial furnishings fields. Main +86 22 6528 8899 clients are organisations of all sizes F: 香榭丽舍健身俱乐部 Tianjin’s travel agency specialising Chinese BARS 天津滨海喜来登酒店 throughout China and abroad. in tourism for foreigners 开发区第二大街29号天津万丽泰达 开发区第二大街50号 For further details, please send T: +86 159 2200 0555 Wan Li Chinese Restaurant 酒店及会议中心2楼 e-mail to http://sheraton.com/tianjinbinhai E: [email protected] A: 2F, Renaissance Tianjin TEDA E: [email protected] Sheraton Tianjin Hotel Hotel & Convention Centre Holiday Inn Binhai Hotel A: Zi Jin Shan Lu, Hexi District No. 29, 2nd Avenue, TEDA Fitness Centrer

T: +86 22 2731 3388 The Lakeview, Tianjin-Marriott Real Estate Spas T: +86 22 6621 8888 ext. 6750 A: 15F, Holiday Inn Binhai Tianjin 天津喜来登大酒店 Executive Apartments 万丽轩中餐厅 No. 86, 1st Avenue, TEDA 河西区紫金山路 Green Bamboo Well Being 开发区第二大街29号天津万丽泰达 A: No. 16, Binshui Dao, Hexi District Resort T: +86 22 6628 3388 ext. 2960 酒店及会议中心2层 Crowne Plaza Tianjin Binhai 天津滨海假日酒店健身中心 T: +86 22 5822 3322 A: 6-17, bldg. 17, Magnetic Capital Happy Soho Live Music & 天津万豪行政公寓 A: No.55 Zhongxin Avenue Airport 开发区第一大街86号天津滨海假日 CBRE Tianjin Binshui Xi Dao, Nankai District Dance BAR 河西区宾水道16号 Yue Chinese Restaurant Economic Area Tianjin 酒店15层 A: 42F, Units 12 & 13, Tianjin World T: +86 22 8378 8397 (English) (Opposite of Central Hotel) A: 2F, Sheraton Tianjin T: +86 22 5867 8888 Financial Centre Office Tower, No. +86 136 0205 9458 (Attn: Elsa) A: No. 16, Fortune Plaza, 天津滨海圣光皇冠假日酒店 Binhai Hotel 2 Dagubei Road, Heping District. 青竹堂足疗养生馆 Third Avenue, TEDA 天津市空港经济区中心大道 号 No. 50, 2nd Avenue, TEDA 55 T: +86 22 5832 0188 时代奥城商业广场17座6层17号 T: +86 22 2532 2078 T: +86 6528 8888 The St. Regis Tianjin W: cbre.com.cn 欢乐苏荷酒吧 世邦魏理仕天津分公司 ext. 6220/6222 A: No. 158, Zhangzizhong Road 开发区第三大街财富星座16号 和平区大沽北路2号天津环球金融 Hospitals 采悦轩中餐厅 Heping District (中心酒店对面) 中心津塔写字楼42层12-13单元 开发区第二大街50号 T: +86 22 5830 9999 天津滨海喜来登酒店2层 天津瑞吉金融街酒店 和平区张自忠路158号 Rentals (津塔旁，哈密道正对面) Japanese Education Tianjin International SOS Clinic Sake n Sushi Bar

Qing Wang Fu Club Suites & A: 1F, Sheraton Hotel, A: 11F, Holiday Inn Binhai Tianjin Serviced Residences Zi Jin Shan Lu, Hexi District No. 86, 1st Avenue, TEDA TEDA International School A: No.55 Chongqing Road, T: +86 22 2352 0143 T: +86 22 6628 3388 ext. 2730 Heping District A: No. 72, 3rd Avenue, TEDA CAR/BUS Rental Services 天津国际（SOS）紧急救援诊所 寿司吧 T: +86 22 8713 5555 T: +86 22 6622 6158 The Astor Hotel Tianjin in Tianjin and Beijing with 紫金山路天津喜来登大酒店公寓楼1层 开发区第一大街86号天津滨海假日 E: [email protected] 泰达国际学校 A Luxury Collection Hotel reasonable rates. 酒店11层 qingwangfu.com 开发区第三大街72号 W: To make a reservation or enquiry, A: No. 33, Tai’er Zhuang Lu, 庆王府公馆 Heping District please send e-mail to 和平区重庆道55号 T: +86 22 2331 1688 E: [email protected] 天津利顺德大饭店豪华精选酒店 T: +86 135 0207 0987 和平区台儿庄路33号

76 Nov 2012 I Business Tianjin Nov 2012 I Business Tianjin 77 Art & Lesiure Wine Notes Champagne

ello. I trust you have all begins the festive season and with enjoyed some great Malbec that, obviously, lots of celebrations. wines this past October. What better way then, than to get H a jump start on the season with November to me is always a very Champagne. exciting month. It is the time when we gear up for Thanksgiving, put our Produced mainly from Pinot Noir, final touches for Christmas and New Chardonnay & Pinot Meuniere, Year Events as well as finalizing what this wine goes through a second our Lunar New Year Specials will be. fermentation that allows for the To put it plainly, November to me carbonation to take place, in other words the wonderful bubbles that excite us all as they are being poured. Champagne has had an association Oscar Martinez, Director of Food & with power and luxury since the Beverage of The St. Regis Tianjin 17th century as it was used during the anointment of kings. But enough small recommendation, do not take history and more to modern life. pictures but video as it happens in a split of a second. At St. Regis, Champagne is the hero of our evening ritual – a transitional On any given day though, pass by experience from day to evening that and ask our team at the St. Regis is celebrated every Thursday at The Bar to teach you this Napoleonic art St. Regis Bar in the art of ‘sabrage’ - with any purchase of Champagne; the cutting of the bottle’s neck with especially so every Saturday as all our a sabre. bottles of this delicious bubbly elixir are at 50% off. Throughout our hotels worldwide, a tantalizing selection of Champagne is I look forward then to welcoming widely available in our menus; paired you this month and meeting you with the most exquisite dishes from personally over a beautiful, cold, renowned Chefs. bubbly glass of Champagne.

Here in Tianjin, we invite you this Salud. November to begin your festive season with us at The St. Regis Bar. On Thursdays, experience a delicious buffet and witness the Visit us online: ‘sabering’ of the bottle yourself – btianjin.cn/121115

78 Nov 2012 I Business Tianjin Art & Lesiure Last Words Book Review The Power of Habit: Why we do what we do in life and business Politics vs. Policy: A Credibility Gap - Charles Duhigg By Seth McFlannigan By Christopher Ribeiro

harles Duhigg's book about habits is a fascinating read filled with anecdotes about the power of consistency and how we can change our habits in order to change our lives. The book also draws on a wide variety of academic studies, Cinterviews with scientists and executives in order to illustrate to what degree habits shape our lives. It explores the neurological science behind habit formation, how to build new habits and change old ones. Duhill exemplifies his thesis by talking about cases such as Procter and Gamble turning Febreze into a billion-dollar product by taking advantage of consumers' urges. . If we understand how habits work then we have the ability to change them. The Language: English Power of Habits is a fun and interested read for leaders, businessmen, people who want Hardcover: 400 pages to change their lives. Price: USD 20 + Shipping

Winner Take All: China's Race for Resources and What It Means for the World - Dambisa Moyo By Tracy Hall

n an era of changing economic tides, prize winning economist Dambisa Moyo has brought some of the most engaging literary works of recent years. In her most recent publication, Winner Take All: China's Race for Resources and what it means for Ithe World, she offers an incredibly well researched insight into the future of a global here’s hardly a dull moment when following the jobs overseas whilst running the venture capital firm. The economy that has to contend with increasingly scarce resources. Moyo discusses China’s love/hate relationship between the United States Obama administration has also made a few eleventh-hour controversial resource dash, particularly in terms of Sino-African trade agreements, and and China. This year, however, seems to have a bit pleas to the WTO regarding China’s trade practices, which in doing so, presents a fairly balanced and intriguing historical picture of how emerging Tmore intrigue than usual. are seen mostly as thinly veiled attempts at improving his economies affect the dynamics of global resource markets. Whilst this book is not the 2012 marks a significant time for the world’s two largest tough on China’ credentials. most flowery read, it is certainly thought provoking essential literature for anybody economies. In November, Hu Jintao will be stepping down involved in business, economics and investment. Mitt Romney has offered perhaps the fieriest rhetoric of the as president, likely paving the way for presumptive nominee three. He has labelled Obama as being weak on China and Xi Jinping. This roughly coincides with the presidential has tried to connect the slow economic recovery in the US to election in the United States, where Republican Mitt Romney Language: English China’s “unfair” trade practices. He promised to label China Hardcover: 227 pages challenges the incumbent President, Barack Obama. as a “currency manipulator” on his first day in office and to Price: USD 18 + Shipping The news headlines in the months leading up to these events aggressively pursue violations of intellectual property rights. are a steady diet of vitriol, muscle flexing, bold proclamations His statements haven’t been received well in China, where and occasional diplomacy. some have said that these types of actions could potentially If you want to purchase this book, please send an email to [email protected], we will deliver the book to your door. The three actors in this drama are playing different roles but spark a trade war. their motivation is the same – striking the perfect balance Taking a hard-line position towards China is nothing between pleasing their party and constituents while not new in American politics. The two countries have a QUOTATIONS OF THE MONTH saying anything that will be too damaging for the long-term complicated history and their present-day relationship is relationship of the two countries. equally knotty. Conflicting interests however, are often Your most unhappy customers are your greatest source of learning. To this effect, Vice President Xi has had several high-level mitigated by mutual dependence. By Bill Gates meetings with the Obama administration in an attempt to Brash talk may energise people in America’s manufacturing The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of appear ‘statesmanlike’. In doing so, however, it was noted that heartland, but it is not based in reality. When then Senator how little he can give for a dollar, is bound to succeed. he should not appear to be too “soft” on America. Obama was running for president in 2008, his tone on China By Henry Ford Meanwhile, President Obama has ramped up the rhetoric was similar to Governor Romney’s current stance. A business that makes nothing but money is a poor business. in the months leading up to the November election. His His first term, however, has seen frequent use of soft- By Henry Ford attack ads on Mitt Romney’s business dealings while with power and his recognition of China’s rapid growth The absolute fundamental aim is to make money out of satisfying customers. Bain Capital are evidence of this – making (sometimes prompted a renewed focus on the Pacific in what was By John Egan dubious) claims that Romney was a catalyst in driving dubbed the ‘Asia-pivot’. I don't pay good wages because I have a lot of money; I have a lot of money because I pay good wages. By Robert Bosch Nov 2012 I Business Tianjin 81 Last Words The gap between campaign promises and the actions taken 19th-century Europeans who acted as if America’s industrial once in office illustrates the truth of the story - suddenly, rise could be explained simply by its vast natural resources and the issues become real and the respective politicians have to its exploitation of immigrant and slave labour, plus its very deal with each other. Hence, presidential candidates rarely casual attitude toward copyright and patent laws protecting follow through with their tough campaign promises once foreign, mainly British, books and inventions.” elected. Most politically informed The US should be looking internally people are not surprised by this and to solve its economic woes rather the leaders themselves are also acutely than looking to place the blame on aware of the reality. China or any other country. The An excerpt from Vice President Xi, in waning American influence will do an interview with the Washington Post, little to influence Chinese economic demonstrates this point: policy and there is arguably more “As economic globalisation gathers to gain from genuine diplomatic momentum, China and the overtures than from petty, symbolic United States have become highly shows of strength. interdependent economically. Such The US should welcome China as economic relations would not enjoy an ally in aiding economic recovery sustained, rapid growth if they were not and growth rather than attempting based on mutual benefit or if they failed so-called ’containment policies’ – to deliver great benefits to the United particularly when taking into account States. The Americans who know the China’s growing middle-class and real picture of China-U.S. economic its appetite for American made relations, including those in the business electronics, automobiles, clothing community, will echo this point.” and entertainment. Unfortunately, Additionally, Governor Romney’s talk appearing to be confrontational towards about labelling China as a currency its second largest trading partner scores manipulator underscores the point political points for US politicians. that some promises are irrelevant or Vice President Xi is no stranger to the counterproductive. First, the U.S. US or its political mechanisms. He treasury has said publicly that the lived in the US for a short time whilst Chinese Yuan has made progress; hard studying agricultural techniques in evidence shows that it has increased 40% Iowa; his daughter attends Harvard since 2005 and 12% since 2010 (after and he is long-time friends with being adjusted for inflation). Taking a hard-line former US Treasury Secretary Henry In addition, with the Chinese economy position towards Paulson. He has shown understanding facing problems of its own, namely fear of the diplomatic hurdles he will face of a housing bubble, inflation and rising China is nothing new after taking the reins of the PRC. In unemployment, now is probably not a in American politics. a February address to the US State great time to start hammering them on Department, he said that “To build a their currency. Economist and Nobel new type of co-operative partnership laureate Paul Krugman stated, “I was very much for that… between two countries like ours is a pioneering endeavour but the window for that has passed… if you were thinking you with great and far-reaching significance. There is no precedent were going to get a big boost out of beating up on the Chinese for us to follow and no ready experience for us to refer to. We now, two years ago I thought was really a good time to do that. can only do what Mr. Deng Xiaoping said, “Cross the river by But my god, now that is totally out of date.” feeling the stones.” In a quote to Bloomberg Businessweek, economist Joseph Perhaps his speech is garden-variety political decorum, but to Stiglizt argues that “China is the only real engine of global his credit, he has shown restraint by not returning any jabs at economic growth… I’m not sure it’s in our interest to have a the US or its leaders. With all that’s at stake, no one expects major slowdown in China.” a perfect relationship between China and the US. But come The drum-banging about IP rights, although mostly justifiable, November, Xi should find out that whoever is elected will be should be seen through the lens of history. One could make much more congenial than they had wished to appear during the claim that this is a natural phenomenon commonly found election season. in developing countries. James Fallows, a national correspondent for the Atlantic – Visit us online: pointed this out succinctly in a recent essay: “Talking about Chinese industrial growth, Americans are in the position of btianjin.cn/121116

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