01-48 Umbr30219.12.200213:15UhrSeite1 /3March15th 1/03 Deadline fornext issue: Chamber ofCommerce at theSwiss-Chinese Conditions available Advertising: www.werkzwei-konstanz.de T Switzerland CH-8280 Kreuzlingen P. K Print +Medien w Printing: W e-mail: [email protected] / 01 Fax T Switzerland CH-8008 Zurich Alderstrasse 49 ber ofCommerce Swiss-Chinese Cham- V P Managing Director Susan Horváth, Responsible Editors: China. land, Europeand Commerce inSwitzer- leading Chambersof ment Departments, ganisations, Govern- fi surances andindustrial trading companies,in- the leadingbanks, Shanghai; amongthem Lugano, Beijingand Chapters inGeneva, Chamber andofthe To W Ex. andalsoonthe In printapprox. 1’200 Circulation: of Commerce Chinese Chamber Bulletin oftheSwiss- Quarterly Information Publication: Impressum el. 0049/7531/999-1850 l 1/413 88 38 421 / 01 el. aul Wyss, r ice President onstanz GmbH erk zwei O. ebsite: www.sccc.ch ebsite. ms. ToOr- Trade theMembersof Box 2171 2 889 38 421 nih hn 0235–36 36–37 30–32 33–34 27–29 26–27 23–25 Cultures Marketing Across Insight China2002 Geissel derManager:dasBurnout-Syndrom 23 Ringier –Our World isInformation 21–22 20–21 News fromMembers 16–17 22 Mittelstand starker fördern 18 Interview withSwissBusinessHubChina Interviews 19 Standards Setting International Shanghai BecomesChina’s LeadingExhibitor New PremisesoftheConsulate GeneralinShanghai Shanghai Becomes Tourist Destination 10 Shanghai Consumersas Trend Setter 12–15 Shanghai 10–11 Bilateral Trade between SwitzerlandandHongKong Hong Kong Economy Grows 3.3% Hong Kong In Brief Recent Foreign Investments /Joint Ventures Bilateral Trade between SwitzerlandandChina Growth RateHits8%inthirdQuarter Economy 16th NationalCongress Editorial Board oftheChamberanditsChapters Contents e ebr 39 38 44–45 40–43 40 F Expatriate orLocalManager? China’s Banking Authorities China Market OpentoSwissSMEs too Y New Members A Dynamic Year Chamber News rEsenSples46–48 Suppliers ar Eastern a fteGa 39 ear oftheGoat 6–9 2–3 5

1 CONTENTS 01-48 Umbr30219.12.200213:15UhrSeite2 2 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE BOARD hmsP van Berkel Thomas P. Marco Suter P Stirnemann Kurt E. Dr. Senn Erwin A. ErwinSchurtenberger Dr. Nicolas Pictet Ozendo Pierre L. BeatKrähenmann Dr. Jetzer Alexandre F. r BeatIn-Albon Dr. P Alfred Gremli Garrett O. Michael W. Furrer Bruno W. Bernard Büschi Tr Dominique Perregaux Secretary: Maître PhilippeKnupfer Clivaz Marcel Ch. V Christen DanielV. Dr. President: Geneva Chapter Richard Friedl Dr. Markus Eichenberger Markus Dennler Dr. Ester Crameri Maurice Altermatt Board: Marc Ronca Dr. UliSigg Dr. Members: Honorary Marc Ronca Dr. Esther Nägeli Kurt Moser Dr. Susan Horváth Theobald Tsoe ZiuBrun Dr. Members: Fr Secretary: P V Christen DanielV. Dr. Tr Manfred Zobl Dr. P Jörg Wolle Dr. President: Executive Committee: Board oftheSwiss-ChineseChamberCommerce trG Sulzer eter G. eter Huwyler aul Wyss ast President: ice Presidents: ice President: anziska Tschudi easurer: easurer/Vice President: CEO, DKSHHoldingLtd.,Zurich President, Nitrex Ltd.,Zurich Zurich UBS AG, Chief CreditOfficer, Memberof theGroupManagingBoard, Zurich CEO andBoardDelegate of AGIE CHARMILLESGroup,Losone W CEO, T-Link ManagementLtd. Swiss former Ambassador toChina,Minusio Pa Member oftheExecutive Board, SwissReGroup,Zurich Director, F. Hoffmann-La RocheLtd.,Basle NovartisBasle AG, Member oftheBoardDirectors, V Zürcher Kantonalbank,Zurich Banking,MemberoftheBoard,Head International Managing Director, CreditSuisseGroup,Zurich Executive A., Vevey Vice President,NestléS. Consultant,Zurich CEO, Furrer BFBruno himn enr üci&Ce,S A.,Geneva Büschi&Cie.,S. Bernard Chairman, CLSA (S-E Asia) Ltd.,Geneva M.,HSCBRepublic, GenevaLawyer, LL. President, SwissHotel Association, Crans-Montana Hilterfingen V Manager ExpoLogistics overseas, Natural AG, Basle Member ofExecutive BoardCSFinancial Services Pensions, Winterthur & CEO,Life Winterthur Sprüngli AG,Confiserie Zurich F Head ofExternal Affairs Department, P Swiss former Ambassador toChina,Mauensee Attorney-at-Law, Partner, Schellenberg Wittmer, Zurich,Geneva, Zug M.,Partner,Attorney-at-Law, KPMGLegal, Zurich LL. Directorofeconomiesuisse(VORORT)Küsnacht, former Managing DirectorofChamber Attorney-at-Law, studiolegale enotarile,Lugano Brun CEO, Wicor Holding AG, Rapperswil Erlenbach Hilterfingen Rüschlikon ederation oftheSwiss Watch Industry, Biel ast PresidentofChamber, Zurich ice President,LonzaLtd.,Basle ice President, ABB Switzerland, Baden orldwide Transportation Engineering,Freienbach r tner, Pictet&Cie.,Geneva 01-48 Umbr30219.12.200213:15UhrSeite3 Maître PhilippeKnupfer Chairperson: Legal ChapterGeneva Esther Nägeli Chairperson: Legal ChapterZurich W Xujing Chen Erich Bär Executive CommitteeMembers: Theobald Tsoe ZiuBrun Dr. Chairperson: Lugano Chapter Y J Schott Herbert J Nicolas Pictet Amy QihongLi Board: ean-Nicolas Thalmann ean-Luc Vincent afei Zhang alter Landolt [email protected] Brun Dr.Ziu Theobald Tsoe +41-91-9133911 Chairperson E-mail Fa Phone CH-6901 Lugano Case postale2298 V Dr. Daniel V. StudioLegale e Notarile c/o Brun Christen Camera diCommercio Svizzera-Cina Monday–Friday, [email protected] h 9.00–11.30 President +41-22-3102710 hours Office W E-mail Fa Phone CH-1211 Genève 3Rive Case postale3135 Dr. Jörg Wolle Rue du Vieux-Collège 8 [email protected] Chambre deCommerce Suisse-Chine +41-1-4213888 President W E-mail Fa Phone CH-8008 Zurich Alderstrasse 49 Swiss-Chinese ChamberofCommerce in Switzerland: Here forYou ia Ariosto 6 ia Ariosto biewww.sinoptic.ch/scccgeneva/ ebsite www.sccc.ch ebsite x x x +41-91-913 3914 +41-22-310 3710 +41-1-421 3889 Attorney-at-Law, Lugano ayr L M.,HSCBRepublic, GenevaLawyer, LL. M.,Partner,Attorney-at-Law, KPMGFides, Zurich LL. Lugano Plant Manager, Agie Ltd.,Losone Attorney-at-Law andNotary, BRUN Studiolegale enotarile,Lugano delaPromotionIndustrielle),Geneva P. I.(Office Director, O. Manager, HôtelIntercontinental,Geneva desInventionsPresident, SalonInternational deGenève Pa CreditSuisse,GenevaNégoce International, Assistant deDirection,ShanghaiOverseas, Geneva r tner, Pictet&Cie.,Geneva hipro MaîtrePhilippeKnupfer +41-22-7055632 Chairperson Fa Phone [email protected] c/o HSCBRepublic, Geneva EstherNägeli Legal ChapterGeneva +41-1-2493007 Chairperson E-mail Fa Phone c/o KPMGLegal, Zurich Legal ChapterZurich President Peter A. Marti Peter A. [email protected] +86-21-68818420 President E-mail Fa Phone Shanghai 200120 No. 528PuDongRoad(S) Shanghai StockExchangeBldg. 17/F South Tower Dr. UrsBuchmann Shanghai c/o CreditSuisseFinancial Services, [email protected] ChineseChamberofCommerce Shanghai +861065614254 President W E-mail Phone Beijing 100004 No. 7GuanghuaRoad 26/F West Tower,HanweiPlaza Swiss ChineseChamberofCommerce Beijing in China: bieswisschinacham.org ebsite x x x +41-21-734 2213 +41-1-249 23 +86-21-6681 8419

3 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE BOARD 01-48 Umbr 302 19.12.2002 13:15 Uhr Seite 4

Anzeige SiberHegner 01-48 Umbr30219.12.200213:15UhrSeite5 new economicwealth, was ofHongkong to the return river. Probably themostdecisive factor, fromthe apart forthe city ontheHuangpu turnaround brought thefinal more Shanghaileaderstothe power centreinBeijing, that theeconomicweight ofthecityallowed more and colonialism. The economicopeningofChinaandthefact the sametimewas strongenoughtosurvive Western hai’s initsbeingChineseandmetropolitanat confidence seness andopennesstowards theoutside world. Shang- seemed topresentanaturalequilibriumbetween Chine- from foreignpoliticalandculturalinfluence,Shanghai underpressure andGuangzhou theport the 14thcentury being thepoliticalcentreofMiddleKingdomsince Chinese culturesquiterareintherestofChina.Beijing allowedself-assertion aspiritualopeningtowards non- other thestrongChineseidentityanditsaccompanying hand thisclasswas proudofitsChineseorigin,onthe middleclass.Ontheone ization createdanimportant city, oneofthemostremarkable intheworld.” g cosmopolitanplace,ameeting- “Shanghai isavery that time: account ofthedevelopment thecityhadgonethrough by his “A ofShanghai”(p.1)isanaccurate History Short city in1928by theforeign historianF. L.Hawks Pott in nomic development. The following descriptionofthe f Nanjing in1842. The endoftheQingdynastyin1911 city was openedtoforeign commercewiththetreatyof century, thatthe amongotherthingsalsoduetothefact placeitself. an important This changedinthemid-19th cityofNanjingkept Shanghaifrombecoming important already inthe13thcentury. The proximity tothemore chosen asacapitalthoughithadreceived township-rank itwasDuring thelongcourseofChinesehistory never In many respectsShanghaiisanuntypicalChinesecity. Remarks Introductory Aims andAspirationsofShanghai inally broughtanopening which assuredsustainedeco- round for people from all countries, a great andunique round forpeoplefromallcountries,agreat In this rich countryside ofCentralChinaindustrial- In thisrichcountryside W orld Expo2010inShanghai “Bamboo SproutsafteraSpringShower” allows thiscityanastonishing openness towards other w the tickets ofthiskindevents areregularly soldout sembles. Although pricescaneasily goupto US$150.-, w sceneforvenues of tobuildupaninternational trying in dubbingitsown Park”, butalsoin citypark“Century viously Shanghaidoesnotonly toimitateNew try York forgetting worldwidea primeinstrument attention.Ob- the world’s andtradingplaces. foremostfinancial willalsoguarantee thatthecitywillbecomeoneof ports ment. oneofthebiggestdeep-sea The plans toconstruct compared tothesixteenhoursby train atthemo- normal Beijing, allowing atravelling timeofaroundthreehours, city centre.Ifsuccessful,thelinewillbecontinuedupto inPudongwiththe will bebuilttolinkthenew airport ra w pletion, thetower willbethehighestbuildingin w in Asia. The planstobuildtheGlobalFinance Centre are alreadytoday thesecondandthirdhighestbuildings g a springshower, high-risebuildingsshotoutofthe city hascompletely changed. Like bamboosproutsafter middle ofthenineties. Within sixyears ofthe theface an upsurge, which hasnotstoppedsinceitsoutsetinthe have dynamismandthecreditsfor broughtthenecessary nese coast. The changeofhandsinHongKong seemsto compared totheeconomicdevelopment alongthe Chi- Shanghai’s development therefore quitelate, started offering new economicpossibilities. now theirluckinacity political reasons,returned totry and mother-town forfinancial attheendofforties mainland China.Many Shanghainesewho hadlefttheir round. Shanghai’s TV tower andtheJinMaoBuilding orld-famous orchestras, theatre groups orballeten- orchestras, theatregroups orld-famous orld. eeks beforetheevent. The lackofastronghistoricpast ere notshatteredby the September11events. Oncom- pid, themaglev traindeveloped by industry, German Interesting arealsothestrongefforts touseculture as leadintothefuture,too. Other constructions The Trans-

5 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE EDITORIAL 01-48 Umbr30219.12.200213:15UhrSeite6 6 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE 16 TH NATIONAL CONGRESS w omy thatofFrance in2005,becomethe willsurpass e 7.18% growth ratein thecoming20years andGDPwill this target, China’s economy willatleastmaintaina the2000GDP byto quadruple 2020.Inaccordance with two decadesofthiscentury.the first Efforts willbemade China’s agendaforeconomicdevelopment in andreform ple ofChina. mental interestsoftheoverwhelming majority ofthepeo- orientation ofChina’s advanced culture,andthefunda- trend ofChina’s advanced socialproductive forces,the thought callsfortheCPCtorepresentdevelopment and DengXiaoping Theory. The “ThreeRepresents” on aparwithMarxism-Leninism,MaoZedong Thought Represents” astheParty’s guidingideology, long-term tution oftheCPCwithJiangZemin’s thoughtof“Three elite. ranks oftheruling entrepreneur tojointhe Haier Group,who isthefirst tral Committee,includingZhangRuimin,CEOofthe mainland’s businesselitehave beenelectedtotheCen- 20% areundertheageof50.Several members of the members.Some180ofthemarenew.ternate Morethan Central Committeeiscomposedof198fulland158al- fromthepreviousreturning Politbureau. The new CPC manysity graduates, ofthemengineers.One-thirdare of thePolitbureau aremostly andonealternate univer- not retiredfromtheprevious one. The 24new members tee comprises9memberswithHutheonly onewho had reau’s StandingCommittee. The new Standing Commit- of theCPCCentralCommitteeandmembersBu- retary. The plenumalsoelectedthenew Political Bureau to 14November), choseHuJintaoasits new generalsec- ofChina(8 oftheCommunistParty The 16thCongress 16th NationalCongressoftheCPC toShanghaiinthetwentiesforeign immigration andthir- inEurope,themainreasonsforastrong nism orfascism Hawks Pott fromthetwenties. ItisnotSoviet Commu- strongly resembles theinitially mentionedquoteby There isaShanghainesesocietydeveloping, which the clearsignsofthingsunderway cannotbeoverlooked. What iseven ithastogainindepth.But moreimportant, opening ofChinawillhave tocontinueuninterruptedly. andtradecentre,the ones tobecomeatopworld finance Especially aspirationslike the when lookingatfarther The way toaworld metropolismay arduous. stillbevery Aim andAspiration:toBecomeaWorld Metropolis felt mostvividly. tural efforts theaimsandaspirationsofShanghaiare known alreadyinthetwenties Inthesecul- andthirties. acharacteristicforwhich thecitywascultural currents, xceed CNY35trillionby theyear 2020.China’s econ- orld’s thirdin2020anditssecondlargest in2050. Key In his report to the Congress, JiangZeminoutlined totheCongress, In hisreport approvedThe congress anamendmenttotheConsti- sition inthePolitbureau, isexpected toreplacePremier V wa GeneraloftheCPCcleared promotion toSecretary top government positionsinMarchofnext year. Hu’s generation leadersandwillbefollowed by changesinthe the beginning ofChina’s transitionfromthirdtoforth The sweeping changesintheCPC’s are just rankandfile law”, andenforcementofjudgmentsshouldbeimproved. to operate“independently andimpartially accordingto andprosecutors shouldbeallowed Courts Legal reform: playersernmental schools. willbeencouragedtorun “basically universal” andilliteracy eliminated. Non-gov- educationwillbemade Education: Seniorsecondary low foreconomy ofscaleinagriculture. Land policy: Farmers canselltheirland-userightstoal- anumberofstrongmultinationalenterprises.”and form couraged toinvest abroad“in ordertoincreaseexports Investing abroad:Stateand private companiesareen- state.” mustbeheldby the trolling sharesinlifelineenterprises couraged tohave multipleshareholders,though“con- areen- management.Enterprises rate fromenterprise GovernmentState enterprises: functionswillstay sepa- v taxation,legalronment includingfair protectionforpri- Private sector:Generalimprovement ofbusinessenvi- g economic targets andpoliciesendorsedby Con- theParty a future not too far away.a futurenottoofar prepared andtheaspirationsmay well becomerealityin g W tion of15millioninhabitantswould clearly undera fall According tobankingcirclesaround10%ofthepopula- andcarsaswell.and air-conditioners, forapartments but sive shoppingspree–nolongeronly forrefrigerators ing levels, thenew middleclassisclearly onanimpres- of thetown ontheHuangpuhasagainreachedsurpris- patriates ofallwalks oflifeaswell. The growing wealth ments, butmoreandanaccompanying influxofex- tees notonly asteadyinfluxofforeigndirectinvest- globalization ofworld economy. Globalizationguaran- reasons forShanghai’s lieinthe internationalization ties, which aretherootdevelopments today. The main ate property andderegulation ofinterestrates. ate property ress include: round forafurther, solidgrowth ofthecityistherefore ice Premier Wen Jiabao,who now holdstheNo.3po- estern headingofawealthyestern middleclasstoday. The y tohiselectionasPresidentof the People’s Republic. Consul General ofSwitzerland, Shanghai by Dr. HansJakob Roth 01-48 Umbr30219.12.200213:15UhrSeite7 eign investors, pointoutthedangerof someobservers of continuitywhich may notleasttofor- becomforting his predecessor’s shadow. While thiswillensurealevel Jiang beforehim,may have towait years toemerge from mission ensureshewillretainstronginfluence.Hu,like Jiang Zemin’s com- military re-electionto headtheparty w remainedloyalparty tothewishesofDengXiaoping, had beenwidely expected foryears. InchoosingHu,the P Itwas offer the the 16thCPCCongress littlesurprise. o provincial andlocallevels, inmunicipalities,state- months tocome,therewillbeleadershipchangeson Bangguo, who now isNo.2inthePolitbureau. For of theNationalPeople’s by Congress Vice Premier Wu Zhu Rongji.LiPeng islikely tobereplacedasChairman of the All-China Youth Federation. mittee oftheCommunist Youth LeagueofChina,chairman oftheSecretariatCentralCom- 1982–1984: Secretary League (Sept.1982-Dec.1982). Gansu Provincial CommitteeoftheCommunist Youth 1980–1982: Vice-chairman ofthe ofGPCCandsecretary vision, GPCC. 1975–1980: Deputydirectorofthedesignmanagementdi- Committee (GPCC). oftheGansuProvincial1974–1975: Secretary Construction of thesub-bureau’s headoffice. branch ofthegeneralParty servancy anddeputy-secretary reau, Fourth of EngineeringBureau,Ministry Water Con- 1969–1974: Technician ofNo.813Sub-Bu- andsecretary servancy. of Liujia Gorge EngineeringBureau,Ministry Water Con- 1968–1969: Worked teamof withthehousingconstruction lution.” ofthe“culturalrevo- beforethestart as politicalinstructor of Engineering Department Tsinghua University andserved inR&Datthe 1965–1968: Participated Water Conservancy v of ter Conservancy EngineeringDepartment Tsinghua Uni- atthe 1964–1965: Postgraduate andpoliticalinstructor Wa- of Department Tsinghua University. 1959–1964: Studentatthe Water Conservancy Engineering Central Committee. SchooloftheCPC lic ofChinaandpresidenttheParty CommissionofthePeople’sof theCentralMilitary Repub- president ofthePeople’s Republic ofChina,vice-chairman Commission,vice- oftheCPCCentralMilitary chairman now oftheCPCCentralCommittee,vice- generalsecretary study ofhubhydropower stations.Heisanengineer. Heis ersity. wned enterprises etc. wned enterprises eople’s orderly transferofauthority, Republic first and ho hadpicked himasJiang’s successor. Meanwhile, After much uncertainty andspeculation,theresultsof After muchuncertainty sity, where hehadamajorinthe of Department Tsinghua Univer- W fromthe 1965 afterhegraduated 1964 andbegan towork inJuly Pa 1942. HejoinedtheCommunist Province, was inDecember born ality, anative ofJixi, Anhui Hu Jintao,male,59,Hannation- Hu Jintao ater Conservancy Engineering r ty ofChina(CPC)in April spectacular progress overnight. ship, butitwillseesetbacks,andnobodyshouldexpect choices.Itwillcontinueunderthenewfortable leader- of China’s economy willremainapathalonguncom- 1980s and1990s. anddevelopment reform The further reproduce thegrowth ratesofChina’s economy inthe to meltdown, itdifficult maythe riskoffinancial find tion, growing wealth gap,mountingunemployment and f (counter-) revolutionary. However, thenew leaders, intended tostrengthentheprivate sector, lookalmost theones and someoftheeconomicpolicies,inparticular for economicgrowth setby areambitious, theCongress conflict andmaneuvering within theParty. The targets PCC). Chinese People’s Political Consultative Conference(CP- Standing CommitteeoftheSixth National Committeeofthe the 15thCPCCentralComimittee. Hewas amemberofthe CommissionattheFourth Session of tral Military Plenary He was oftheCPCCen- madeanadditional vice-chairman ofthe16thCPCCentral Committee. and generalsecretary ber ofthePolitical BureauandofitsStandingCommittee, of the14thand15thCPCCentralCommitteesisamem- and itsStandingCommittee,memberoftheSecretariat tral Committee.Hewas amember ofthePolitical Bureau Central Committeesandisamemberofthe16thCPCCen- tral Committee,memberofthe13th,14thand15thCPC He was member, analternate memberofthe 12thCPCCen- Central Committee. public SchooloftheCPC ofChina,presidenttheParty CommissionofthePeople’sman oftheCentralMilitary Re- vice-president ofthePeople’s Republic ofChina,vice-chair- Commission, oftheCPCCentralMilitary vice-chairman oftheCPCCentralCommittee, 2002: Generalsecretary Committee. SchooloftheCPCCentral China, presidentoftheParty CommissionofthePeople’sCentral Military Republic of dent ofthePeople’s ofthe Republic ofChina,vice-chairman Commission,vice-presi- man oftheCPCCentralMilitary the SecretariatofCPCCentralCommittee,vice-chair- litical BureauoftheCPCCentralCommittee,member 1999–2002: MemberoftheStandingCommitteePo- School oftheCPCCentralCommittee. dent ofthePeople’s Republic ofChina,presidenttheParty the SecretariatofCPCCentralCommittee,vice-presi- litical BureauoftheCPCCentralCommittee,member 1998–1999: MemberoftheStandingCommitteePo- SchooloftheCPCCentralCommittee. the Party the SecretariatofCPCCentralCommittee,president litical BureauoftheCPCCentralCommittee,member 1993–1998: MemberoftheStandingCommitteePo- of theSecretariatCPCCentralCommittee. litical BureauoftheCPCCentralCommittee,andmember 1992–1993: MemberoftheStandingCommitteePo- tonomous Region. Committeeof oftheParty 1988–1992: Secretary Tibet Au- Committee. oftheGuizhouProvincial1985–1988: Secretary Party mittee oftheCommunist Youth LeagueofChina. 1984–1985: First secretary, SecretariatoftheCentralCom- aced withdauntingchallengessuchaschroniccorrup- Councillor andHeadoftheEconomicSection Embassy ofSwitzerland, Beijing Source: Xinhua News Agency Summary byJürg Lauber

TH 7 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE 16 NATIONAL CONGRESS 01-48 Umbr30219.12.200213:15UhrSeite8 8 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE 16 TH NATIONAL CONGRESS Central Committee. of the Work oftheCPC CommitteeofLarge Enterprises MemberGroupandsecretary member ofitsLeadingParty Central Committee,vice-premieroftheStateCouncil, Standing CommitteeofthePolitical BureauoftheCPC the academictitleofengineer. asmemberofthe Heserves Secretariat oftheCPCCentralCommittee. Bureau oftheCPCCentralCommittee andmemberofthe is now member oftheStandingCommitteePolitical mittee. Committee ofthePolitical BureauoftheCPCCentralCom- mic titleofengineer. asmemberoftheStanding Heserves Po cial Work CommitteeoftheCPCCentralCommittee. oftheFinan- MemberGroupandsecretary its LeadingParty Committee, vice-premieroftheStateCouncil,member ing CommitteeofthePolitical BureauoftheCPCCentral and now isanengineer. asmemberoftheStand- Heserves w er ofHebeiEngineeringCollege. Heholdstheacade- of Tsinghua University. Heholds ofRadioElectronics Department as amajorofelectrontubethe in September1966.Hegraduated in April 1964andbegan working ofChina(CPC) Communist Party inJulyborn 1941.Hejoinedthe County, Anhui Province, was tionality, anative ofFeidong Wu Wu T ment oftheBeijingInstitute the Automatic ControlDepart- July from 1963,aftergraduating April 1960andbegan working in ofChina(CPC)in munist Party July 1939.Hejoinedthe Com- Jiangxi Province, was in born nationality, anative ofJi’an, Zeng Qinghong,male,63,Han Zeng Qinghong ofElectric of theDepartment pliance designandmanufacture a majorofelectricmotorandap- with October 1962.Hegraduated ber 1959andbegan working in Pa 1940. HejoinedtheCommunist Province, was inMarch born tionality, anative ofBotou,Hebei Jia Qinglin,male,62,Hanna- Jia Qinglin study postgraduate undertook Beijing InstituteofGeology. He of geological fromthe structure withamajor 1967. Hegraduated began working inSeptember China (CPC)in April 1965and of joined theCommunistParty inSeptember1942.He born tionality, anative of Tianjin, was W W echnology. Heisanengineer. He en Jiabao,male,60,Hanna- r en Jiabao ty ofChina(CPC)inDecem-

Bangguo Bangguo, male,61,Hanna- secretary oftheShandongProvincialsecretary Committee. Party of theCentralCommissionforDisciplineInspectionand P gineer. Heisnow memberoftheStandingCommittee University. andisanen- background Hehasapostgraduate reau oftheCPCCentralCommittee. now memberoftheStandingCommitteePolitical Bu- Heisanengineer. manufacturing. trical machinery Heis Committee oftheCPCCentralCommittee. ofthePoliticalCouncil andsecretary andLegislative Affairs Member GroupoftheState member oftheLeadingParty Bureau oftheCPCCentralCommittee, statecouncilor, now amemberoftheStandingCommitteePolitical many. Heholdstheacademictitleofseniorengineer. Heis Committee. oftheCPCGuangdongProvincialmittee andsecretary Committee ofthePolitical BureauoftheCPCCentralCom- demic titleofengineer. Heisnow memberoftheStanding ofHarbinInstitute chinery Technology. Heholdstheaca- olitical BureauoftheCPCCentralCommittee,secretary Po and automaticcontrolofthe measurement major inthermal witha April 1968.Hegraduated March 1962andbegan towork in ofChina(CPC)in munist Party gust 1938.HejoinedtheCom- Jiangxi Province, was in born Au- nationality, anative of Yugan, Wu Wu sity, where hehadamajorinelec- Univer- Engineering, Tsinghua ofElectricalMachinery partment fromtheDe- 1966. Hegraduated Pa 1963 andjoinedtheCommunist 1938. Hebegan towork inMay Province, was inSeptember born ality, anative ofJiashan,Zhejiang Huang Ju,male,64,Hannation- Huang Ju the DemocraticRepublic ofGer- tute ofMiningandMetallurgy in Casting SectionofFreiburg Insti- g began working inMay 1962.He of China(CPC)inJune1960and He joinedtheCommunistParty Province, was inJuly born 1935. ity, anative ofJi’nan,Shandong Luo Gan,male,67,Hannational- Luo Gan ofElectricMa- of theDepartment Industrial Enterprise Automation g w in September1965andbegan ofChina(CPC) Communist Party F Liaoning Province, was in born tionality, anative ofDalian, Li Changchun,male,58,Hanna- Li Changchun ebruary 1944.Hejoinedthe ebruary raduated fromtheMachine raduated fromthesectionof orking inSeptember1966.He w r ty ofChina(CPC)inMarch

Guanzheng er Department, er Department, Tsinghua Guanzheng, male,64,Han 01-48 Umbr30219.12.200213:15UhrSeite9 16, 2002.Followingisanamelistofthepresent provincial Partysecretaries: The 31provincial committeesoftheCommunistPartyChina(CPC)hadcompletedelectionbyJune Provincial Leaders The 16thCentralCommitteeoftheCommunistPartyChina eYn i azogL hlnZagSuinLiuXirong ZhangShutian LiZhilun LiJinai XiaZanzhong LiuFengyan LiaoXilong CaoGangchuan Zhang Huixin He Yong LiangGuanglie Deputy Secretaries: Secretary: Wu GuoBoxiong Central CommissionforDisciplineInspectionoftheCPC HeGuoqiang Xu Caihou Members: Guanzheng ZhouYongkang Hu Jintao V HuangJu Chairman: Jiang Yu Zhengsheng Central MilitaryCommissionoftheCPC LiuYunshan Wen Jiabao W GuoBoxiong Zeng Qinghong WuZemin Bangguo HuJintao ZengPeiyan Members oftheSecretariat oftheCentralCommittee W Wu Yi ZhouYongkang (female) ZengQinghong JiaQinglin LuoGan MemberofthePoliticalBureau Alternate Cao Gangchuan LiChangchun LiChangchun He Guoqiang Luo Gan Wu Wu Guanzheng Liu Yunshan W Members ofthePoliticalBureau Huang Ju Wu Hu Jintao Members oftheStandingCommitteePoliticalBureau Political Bureau oftheCentralCommitteeCPC General Secretary oftheCommunistPartyChina:HuJintao Hubei: Zhejiang: Shanxi: Jiangsu: Hebei: Shaanxi: Liaoning: Tibet: Guangxi: Fujian: Anhui: ice Chairmen: n agX ahuHeYong XuCaihou ang Gang ang Gang LiuQi HuiLiangyu(Hui) Wang Zhaoguo ang Lequan GazegZagLcagZagDjagChenLiangyu Zhang Dejiang ZhangLichang Guanzheng BngoWnJaa i igi ZengQinghong JiaQinglin Wen Jiabao Bangguo Guo Jinlong W W Yu Song Defu Tian Chengping ang Taihua ang Xudong Hui Liangyu Li Jianguo Zhengsheng Cao Bochun W Zhang Dejiang en Shizhen Hunan: Heilongjiang: Jiangxi: Xinjiang: Sichuan: Beijing: Shandong: Ningxia: Gansu: Guizhou: Song Zhaosu Y Liu Qi Meng Jianzhu Chen Jianguo ang Zhengwu W Zhou Yongkang Qian Yunlu ang Lequan Wu Xu Youfang Guanzheng Henan: Inner Mongolia: Shanghai: Jilin: Qinghai: Y Tianjin: Guangdong: Chongqing: Hainan: unnan: W Source: XinhuaNewsAgency ang Yunkun Chen Kuiyuan Zhang Lichang Bai Keming Bai Enpei Su Rong Chen Liangyu Huang Zhendong Li Changchun Chu Bo

TH 9 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE 16 NATIONAL CONGRESS 01-48 Umbr30219.12.200213:15UhrSeite10 10 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY od i.CF±CF hr i.CF±CF Share CHF% ± Mio.CHF Share CHF% ± glass ceramics, Construction materials, Mio.CHF pharmaceuticals Chemicals, plastics rubber, Leather, P Te Energy carriers Agricultural products T Goods -September 2002(inMio.CHF) January Bilateral Trade betweenSwitzerlandandChina CHF 33.6million)andmetals/metalproducts(up31.9% showed particularly stronggrowth. Plastics(up27.4%to million) andjewelry (up162.9%toCHF5.3million) to CHF864million. Watches (up111.2%toCHF54.8 asitincreased8.7% lion share(63.0%)oftotalexports againtookthe Machinery September forSwissexports. 9.8%). The latterhintsataparticularly strongmonthof billion (down atCHF1.371billion(up 5.0%),exports fromChinatoSwitzerlandstoodatCHF1.70 Imports Switzerland andChinawas CHF3.072billion(+1.8%). F Swiss ExportstoChinaup9.8% billion, ofwhich US$434.78billionwere actually realized. The contractedoverseas investment reachedUS$813.66 China hadapproved 414.796foreign-invested enterprises. funded projects,up33.36%.BytheendofSeptember, ninemonthsChinaapproved 24.771foreign- the first lion. PledgedFDIrose38.4%toUS$68.4billion.During China’s exports. F was US$20billion,49.4%morethanayearsurplus ago. reachedUS$232.5billion,up19.4%. ports The trade stoodatUS$212.5billion,up17.1%,whilst ex-ports lion inJanuary/September, up18.3%over lastyear. Im- recorded in2001. somewhat quarter, it would inthefourth exceed the7.3% y ninemonthsofthisyear theeconomy grewthe first 7.9% mance slightly exceeded expectations andmeantthatin China’s GDPgrew 8.1%inthethirdquarter. The perfor- Growth RateHits8%inthirdQuarter ear onyear toUS$866billion.Even ifgrowth slows oreign-invested accountedforabouthalfof factories rom January toSeptember2002,tradebetweenrom January pr ae rdcs printedmatter paperproducts, aper, tlslce .7, , 0, .9, 50100,0 –5,0 1.692,4 100,0 9,7 1.370,2 otal selected Actual foreigninvestment rose22.6%toUS$39.6bil- China’s totalforeigntrade volume was US$445.13bil- tls pae,shoes apparel, xtiles, xotEpr xotIpr motImport Import Import Export Export Export 4, , 802696012,2 6,0 206,9 18,0 1,3 246,3 971914501–1730,1 –11,7 510,1 1,4 1,9 19,7 4210318130–, 6,1 –8,5 103,0 1,8 100,3 24,2 , 830562–340,4 –23,4 6,2 0,5 48,3 6,4 , 4, , 68681,0 6,8 16,8 0,2 –49,5 0,0 2,9 3,3 –90,5 0,0 –37,8 56,4 0,0 0,6 –43,9 0,1 30,4 8,5 from Taiwan went down –29.2%toCHF454million. toSeptember;imports CHF 863millionfromJanuary to billion. Swissexports Taiwan decreased–14.6%to increased2.7%toCHF2.351 during theperiod.Imports billion, representing4.68%ofworldwide Swissexports China (incl.HongKong) went up10.7%toCHF4.769 to 25.1% toCHF651million.Intotal,Swissexports fromHongKonging thesameperiod;imports increased Hong Kong increased11.5%toCHF3.398billiondur- well.to CHF28.9million)performed to Swissexports ing state-owned enterprises. the growing numberofworkers beinglaidoff fromail- gr and government assets. spendingonfixed A healthy e tothegrowth.tributed The government’s efforts tobeefuptaxcollectioncon- output. equipment,accountedfor36.7%ofthe and transport major industries,includingelectronics,communication put grew 12.2%year onyear toUS$ 270.9billion. Three Retail salesrose8.7%toUS$350.7billion. fromfoodtoschoolfees,fell0.8%. goods andservices to US$258.6billion. xport-related industrialproduction,foreigninvestmentxport-related o China’s economicgrowth continuestobedriven by China’s taxrevenues grew 11.8%toUS$150.9billion. ninemonthsthecountry’sIn thefirst industrialout- The consumerpriceindex, which measuresabasket of F wth is crucial forChinatocontinuecreatingjobs wth iscrucial oreign reserves roseUS$46.5billioninthe9months oreign reserves Source: EmbassyofSwitzerland, Beijing Summary byPaul Wyss 01-48 Umbr30219.12.200213:15UhrSeite11 esl , , , 4, 0,0 -43,3 0,2 0,6 2,2 –24,3 0,1 2,7 0,1 0,0 18,2 0,0 60,8 0,7 37,7 0,2 45,9 - -4,4 2,3 –6,0 0,8 1,2 282,1 0,4 0,8 0,0 1,8 11,7 2,9 5,0 0,1 0,0 –24,1 3,8 0,0 42,5 11,2 -94,5 14,3 -90,2 24,5 13,9 – Other goods 0,8 0,1 0,1 51,4 Wa 0,1 702,7 – Mechanicalmeasuring,testing,controlequip. 1,7 0,0 and appliances – Medicalinstruments – Surveying instruments photo – Opticalinstruments, 3,1 39,9 Precision instruments 7,2 0,0 0,2 6,4 10,5 – Vessels 4,2 – Aircraft andspacecraft 53,1 352,1 0,9 – Railway vehicles 122,2 0,1 0,3 107,7 0,2 0,2 13,9 –60,8 –47,5 4,6 – Road-vehicles 45,3 –19,8 2,9 V 2,3 190,7 – Defenceequipment andelectronics – Electricalmachinery machines,Computers – Office – Householdappliances 2,2 machines – Agricultural 4,2 0,0 –6,9 0,4 1,0 37,8 17,1 –10,3 71,0 46,5 0,7 Share 6,9 3,8 CHF% ± 0,5 0,1 Mio.CHF 0,6 27,2 637,5 –30,3 Share 169,4 52,7 CHF% ± 1,0 8,6 Mio.CHF – Industrialmachinery electronics apparatus, Machinery, – ofmetal Articles metals – Non-ferrous – Ironandsteel Metals andmetalproducts Goods -September2002(inMio.CHF) January ehicles pr at , , , 1, 0,2 -11,7 2,6 0,1 0,0 0,1 19,1 – 0,6 - 1,6 0,0 –30,5 0,1 0,7 10,1 0,0 0,0 - 1,1 –100,0 0,0 215,8 21,0 3,4 0,8 0,3 2,5 18,5 11,1 1,8 13,9 1,1 4,7 58,2 –20,5 42,4 –46,5 –0,3 11,1 31,0 0,0 14,4 79,8 66,3 – Spareparts 1,7 vehicles – Specialpurpose –49,5 0,2 152,5 – Transport ofgoods 88,3 – Transport ofpersons 0,3 –47,2 23,8 2,6 – Electricandelectronicarticles – Telecommunications – Power generation,electricmotors – Householdmachines 2,2 electronics – Entertainment 0,0 0,0 –3,5 –86,9 –87,5 37,6 0,0 0,2 43,0 0,3 3,2 –3,3 290,3 83,1 589,5 4,1 43,9 engineering – Machinery machinery – Construction – Enginesnon-electrical tches etl ahns142961, , 1, 0,1 0,2 0,4 0,3 0,1 0,0 –10,2 0,1 –45,0 0,9 –6,3 66,9 –23,4 –9,1 0,1 3,4 20,4 1,0 12,0 6,2 4,9 0,4 –45,2 0,5 2,1 9,6 1,5 0,2 1,1 0,7 0,3 0,0 –30,4 5,1 0,1 164,2 43,8 –17,1 5,4 –49,4 –13,2 6,3 –48,9 0,1 –3,5 3,0 10,0 0,1 20,2 4,7 127,0 –5,1 0,0 0,1 69,9 2,0 –38,0 870,5 73,7 0,3 3,0 –25,7 2,5 1,2 0,6 2,0 machines – Packaging andfilling –4,8 –9,2 6,7 – Filtering andpurifyingmachines 0,3 0,5 249,0 – Food processingequipment 5,1 1,3 41,2 8,6 – Textilemachines –11,6 28,9 71,1 – Printingandpapermachinery 2,7 -6,1 92,3 – Weldingmachines 5,0 6,4 – Handheldtools 17,3 –14,4 – Othermachinery 2,5 – Machine-toolsforwood, cork,etc. 37,4 – Plastics-,Rubbermachinery –13,1 – Machine-toolsformineralmaterials – Machine-toolsmetalworking 34,3 – Liftingandhandlingequipment – Processengineering,heating,coolingequip. etc. – Pumps,compressors,fans, xotEpr xotIpr motImport Import Import Export Export Export 3, , 123102719,0 2,7 321,0 61,2 6,6 838,3 4811240125–, 7,8 –2,6 132,5 4,0 111,2 54,8 413, , 9, , 11,2 3,1 190,0 1,0 3,2 38,4 14,1 10,2 54,4 6,6 22,0 90,0 4,6 0,0 78,6 4,5 35,3 62,3 , 8, , 65–191,0 –21,9 16,5 0,2 –83,2 2,6 Source: Swissmem 11 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 01-48 Umbr30219.12.200213:15UhrSeite12 12 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY of US$60.5millionisnamed DuPont Shineway Luohe duce soy protein. The new company withaninvestment largest meatmanufacturer, theShineway Group,topro- insurance and supplementary medicalinsurance. insurance andsupplementary joint venture which willfocusonlifeinsurance,accident and Shenzhenasthelocationfor Group asitspartner totheChina Merchants It haschosenacompany affiliated tablish ajointventure lifeinsurancecompany inChina. by hai andelsewhere ontheboomingeastcoast. withCITIC toopennewture agreement stores inShang- the new supermarket Wal-Mart alsosignedajointven- city threeyears ago,itwas announcedattheopeningof total ofUS$18millioninKunming sinceitenteredthe ev next decadetohelppoverty stricken Chinesestudents. KFC alsocommittedtospendingRMB38millioninthe money tocompletetheirstudies. time tohelpthemearn cities. KFCwillalsooffer jobsforstudentsintheirspare Chicken (KFC)chainstoresinmorethan150Chinese nounced ithasopenedmorethan700Kentucky Fried sold US$50millionworth ofproductsinChina2001. Heinz-Melwelyuan (Guangzhou)Food Company .Heinz foodstuffs outofwhich manufacturers itwillcreate operates100storesinGuangdongprovince.currently the two companiestooperatetheBeijingstores.7-Eleven ajointventure with willbechosentoform nese partner foritsexpansion toBeijing. President Enterprise A Chi- company haschosen7-Eleven Japanand Taiwan Uni- years.The plans toopen500storesinBeijingwithinfive joint ventures inChina. breach ofcontract.Pepsi has14bottlingplantsand40 setupin1994andseekdamagesfor the partnership arbitrationpanelinStockholmtoend to aninternational with Sichuan Yunli andtheirjointventure SichuanPepsi Sichuan Yunli. PepsiCo battle istaking itslong-running market. gr sumption of220millionhectolitresandanannual beer market aftertheUnitedStates,withayearly con- Chinaistheworld’sstill beingfinalized. secondlargest ment forapossible tie-up. Terms are ofthepartnership Tsingtao Brewery, China’s largest, signedanagree- USA Recent ForeignInvestments/JointVentures o DUPONT CIGNA CORPORATION W TRICON GLOBAL RESTAURANT INC. HEINZ, 7-ELEVEN PEPSICO ANHEUSER-BUSCH er chainstoreinKunming. The retailerhadinvested a

the China Insurance Regulatory Commissiontoes- the ChinaInsuranceRegulatory wth of6%. Tsingtao now holds11%oftheChinese AL-MART CHINA COLTD U .S. foodgiant,acquiredthreestate-owned has goneintoajointventure withChina’s is withdrawing fromitsjointventure with , Dallas-basedhugechain-storeoperator, w orld’s largest brewery, and has beengiven permission opened itslargest an- stipulated by the Taiwan government. v F plants inChinaifthey meetgovernment qualifications. SEMICONDUCTOR any payments. approval by the Taiwanese government beforemaking dustrial Park nearShanghai.However, TSMC mustawait withSongjiangIn- lion chipplantunderanagreement ING CO(TSMC) increasing corporate tiesacrossthe increasing corporate Taiwan Strait. main deeply divided politically, anillustrationofthe gether two companiescontrolledby governments thatre- hai-based ChinaEastern Airlines. The planbringsto- million inChinaCargo, which is70%owned by Shang- second airlineDragonair. Cathay Pacific Airways anda29%stake inHongKong’s hasa26%stakecurrently inHongKong’s flagcarrier China, themainland’s carrier. international The group glomerate, isconsideringtakinguptoa25%stake in Air HONG KONG lion ofsalesannually. Protein CoLtd.Itsisexpected togenerateUS$240mil- KOREA T y plans toinvest US$1.1billionintheplantover thenext 8 tive Holding.SouthKorea’s Industry largest carmaker f deposits. banks andopenterm onlinetransferstolocalandforeign mainland toperform ple’s HSBCcustomersonthe BankofChina,permits online bankinginChina. byThe licence,granted thePeo- K come ofUS$4.8billion. a market shareof29%andanannuallifepremiumin- icyholders andisChina’s secondlargest life insurer, with presence inChina.Ping An hasmorethan20millionpol- in Ping An Insurance,expanding thebankinggroup’s actory inChinaajoint venture withBeijing actory Automo- AIWAN ears, bringingproductionto500.000 carsayear by 2010. estment, yet withonly 3slotsavailable, arestriction our Taiwanese arenow eyeing Chinaforchip in- firms ong’s BankofEast Asia toreceive alicencetobegin PROMOS TECHNOLOGIES &POWERCHIP T HSBC CITIC PACIFIC, HYUNDAI MOTOR CHINA AIRLINES HSBC AIWAN SEMICONDUCTOR MANUFACTUR- agreed topayagreed US$600millionfora10%stake became thesecondforeignbankafterHong started construction ofaUS$1bil- construction started Beijing-backed Hong Kong con- will seektobuildsemiconductor w received approval toopen itsfirst on approval toinvest US$47 (continued onpage 14) 01-48 Umbr 302 19.12.2002 13:15 Uhr Seite 13 01-48 Umbr30219.12.200213:15UhrSeite14 14 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY Indonesia to a terminal ontheFujiancoast. Indonesia toaterminal in gasfromaremotefield (CNOOC) tosupply liquefied y gether withBPoftheUK,signedaUS$8.5billion,25- clients totheChinesebank,which willoffer themloans. business. The bankwillintroduceJapanesecorporate with ChinaDevelopment Banktoexpand itsChinese outside Japan. T operationin joint venture willstart April 2003.Itwillbe sellandrepairrailroadlocomotives.manufacture, The Locomotive Works tosetupajointventure inthecityto foreign makers areallowed tooperate withoutalocal China. Localproductionwill,however, only after start pliances suchasrefrigeratorsandwashing machinesin JAPAN INDONESIA mission, China’s regulator. mainfinancial Com- tained fromtheChinaSecuritiesandRegulatory have analliance,approval toform agreed mustbeob- tries tolistoneachother’s markets. Oncethetwo sides ev analliancethatcould Stock Exchangeareintalkstoform ear contractwithChinaNationalOffshore OilCorp. oshiba’s railroadlocomotive base manufacturing first T T PERTAMINA T T entually pave theway forcompaniesfrombothcoun- Dr. SiegristConsulting Te Rosenstrasse 19,8700Küsnacht, Switzerland OSHIBA OSHIBA OKYO STOCK EXCHANGE OKYO-MITSUBISHI BANK .+11910 6Fx+11903 8e-mail: [email protected] 38 30 910 1 Fax+41 66 07 911 1 l. +41 recently withDalian reachedanagreement is alsoplanningtomake andsellhomeap- , state-owned oilandgascompany, to- • • • • •T • • Member ofLESSwitzerland Member ofSwiss-ChineseChamberCommerce Swiss high-techcompany formerly GeneralCounselofinternational Dr. iur. HaraldO.Siegrist Handling legalproblems Monitoring youractivitiesinChina Negotiations inChinaandEurope Drafting contracts Establishing representative office orcompany Assessment ofintendedactivitiesinChina echnology transfer signed anagreement and theShanghai your consultant assists youin your competentpartnerforChina or so. brands beforelaunchingNissan-brandedcarsafterayear v Dongfeng Automobile Co.willbeinjected. The joint w stake inanew company calledDongfengMotorinto into WTO. Nissanwillpay 1.06billionEURO fora50% investment company inastate-run sinceChina’s entry Chinese vehicle producer, willrealizethebiggestforeign Xian Bank within three to five years. Xian Bankwithinthreetofive respectively purchase23.5%and12.4%stakes inthe Xian CityCommercialBank.ScotiabankandIFCwill w inXian,under signed amemorandumofagreement decades. seats andarangeof600kilometresinthecomingtwo China willdemandsome583regional jetswith50to110 v aircraft. DetailsofthedealwillbeannouncedatNo- v China Aviation (AVIC) Corp. Industry ajoint will start in 2001andwashing machinedemandat14million. partner. Refrigeratordemandwas estimatedat11million CANADA BRAZIL enture willinitially concentrateonbuildingDongfeng ember Airshow estimatethat ChinainZhuhai.Experts enture inHarbinwhich isexpected toproduce50-seat hich allthecarandcommercialvehicle assetsof hich thetwo sideswillmake anequityinvestment in NISSAN MOTOR SCOTIABANK EMBRAER, Brazilian aircraftmanufacturer, and and the International Finance Corp. and theInternational and Dongfeng,thethirdlargest 01-48 Umbr30219.12.200213:15UhrSeite15 lion, offering great potential to build itspresenceinChina. lion, offering potentialtobuild great joint venture in Tianjin withapopulationofnearly 10mil- hasbeenauthorisedtocreatea50:50 inburgh-based group alicencetooperateinChina. insurer tobegranted The Ed- company’s brands. in Shanghai’s HuaihaiRoad, sellingawiderangeofthe ing 15stores. ov to spendUS$600milliononatleast40storesinChina every million smokers consuming1.700billioncigarettes son &HedgesandSilkCut.Chinahasabout350 inChina. tributed The company’s brandsincludeBen- ject underwhich aCallaherbrandwillbemadeanddis- State Tobacco Monopoly Administration forajointpro- deal withChinaNational Tobacco andthe Corporation uary andJulyuary were toprivate consumers. last year. Four-fifths ofthecompany’s salesbetween Jan- f bile Co. The company sold48.000vehicles during the units fortheirjointventure DongfengCitroen Automo- feng MotorCo.have seta2003salestarget of100.000 K has increaseditsmarket shareinChina,includingHong 1985 anddemandhasincreasedsteadily sincethen. Airbus planetoChinain Games. supplieditsfirst The consortium 555-seat Airbus A380 forthe2008summerOlympic HOLLAND ITALY FRANCE GERMANY GREAT BRITAIN SOUTH AFRICA ject would bebetween US$2billionand4billion. other liquidfuels.Investment inthecoal-to-petrolpro- Central to turn Asia’s vast intopetroland coalreserves the Chinesegovernment over amulti-billion-dollarplan ernment approvalernment foritsjoint venture toopen20stores irst seven monthsofthisyear, anincreaseof34%over ong andMacao,from13%in1995to28%morerecently. STANDARD LIFE MAKRO BENETTON PSA PEUGEOT CITROEN AIRBUS CONSORTIUM METRO CALLAHER, SASOL, er the coming three to five years, addingtotheexist-er thecomingthreetofive y ear. , theworld’s biggestretailer, isplanning fifth South African fuelcompany, isintalkswith , leadingDutchretailer, hasreceived gov- opened a3000-square-metermega store UK tobaccocompany, hasclincheda has becomethelatestwestern life e xpects Chinatobuythe and its partner Dong- and itspartner Chinese sideisholding51%andMoller49%. W agement Co.Ltd.willmanagethecontainerwharf of ture, calledShanghaiHudongContainer Terminal Man- managementcompany.container terminal The jointven- authoritiestocreateChina’sport foreign-funded first (3.9%), Titoni (3.8%), Tissot (2.9%). (3.8%), Tissot(3.9%), Titoni followed by Rado(9.3%), Longines(5.34%),Rolex products clearly ofvalue. dominateinterms Omega is ofnumbers,theSwiss dominate themarket interms nese watch market value. While Chinesewatches still chemicals market when theplantopensin2005. become theleadingforeigninvestor intheChinesepetro- Investment andDevelopment Company 5%.Shellwill 50% share,while CNOOCholds45%andGuangdong investment projectonthemainland.Shellwillhave a plex inNanhai,Guangdong province, thelargest foreign will proceedwithaUS$4.3billionpetrochemicalscom- ner, (CNOOC) ChinaNationalOffshore OilCorporation DENMARK SWEDEN SWITZERLAND k eign insurersapproval tosellpoliciesinmoreareas, surance businessinBeijing.Chinawillgive morefor- ajointventure life-in- Ltd.tostart Management Corp. withtheBeijingstate-ownedsigned anagreement Assets approval businessinBeijing.InJuly tostart Skandia offoreigninsurancecompaniestowin group in thefirst of the Austrian Best Water Technology Group(BWT). lished in1939,Christearlierthisyear became a member in theZhangjiangHigh Tech-Park inSeptember. Estab- Christ services. Water Technology (Shanghai)Ltd.opened ence inChinaby providing morecustomizedproductsand advanced water treatmentsystems, istoexpand itspres- pany, risingto49%afterthreeyears. up to33%inanew or existing fundmanagement com- canenterChina’s1, foreignfirms fundmarket by taking mainland partner. effectiveAccording torules fromJuly plore apossible acquisitionofanequityinterestinthe Guotai Asset Management,which willallow UBStoex- China next year. stores, Makrowould openthreestoresinnorth-east in Chinabefore2010.Inadditiontothetwo existing eeping withits WTO commitments. aigaoqiao Port, atthemountof Yangtze River. The ..MOLLERGROUP A.P. SKANDIA INSURANCECOMPANY OMEGA CHRIST LTD UBS RO Y AL DUTCH/SHELL signed amemorandumofunderstandingwith takes first placewith13.7%ofthetotalChi- takes first , oneoftheworld’s leadingsuppliersof linked upwithShanghai and itsjointventure part- Summary byPaul Wyss hopes tobe 15 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 01-48 Umbr30219.12.200213:15UhrSeite16 16 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY – – –S – – – – – – In Brief party isground-breaking. party v been membersinthepast,but ideaofadmittingpri- few captainsofstate-owned companiesandbankshave party.change thefundamentalnatureofruling A Pa neurs intothecentralcommitteeofCommunist China planstoadmitahandfulofprominententrepre- and high-caloriefood, smokingandalcohol. an unhealthy diet,includingahighintake ofsalt,sugar vious studies.Majorcausesofthisdevelopment were sive patientshadincreasedrapidly comparedwithpre- prevalence rateandtheabsolutenumberofhyperten- study hasshown. The researchersfoundthatboththe pressure, oneofthehighestratesinworld, arecent Almost threeoutoftenChineseadultshave highblood makers nolongerhave topay duty. the44.6%import timein15years. without tariffs forthefirst The seven to selltelevision setsto the370millionEUresidents ing disputewiththeEuropeanUnion,allowing them WTO, resultingina3.9%declineoftariff income. sinceChinaenteredthe fraud hasincreasedsharply that hashittariff income. The incidenceofcustoms eign companiesinvolved incustomsfraud, anabuse v Chinese customsauthoritiesareoffering rewards for ate theproceedswithin30days ofthesale. nies thatsellsharesorotherassetsoverseas torepatri- problem of capitalflight,orderingmainlandcompa- China launchedarenewed crackdown onthegrowing trade. electronicsandinternational cluding pharmaceuticals, jobs instate-owned invarious areas,in- enterprises foreign managerialandtechnicalprofessionalsfor The Beijinggovernment isseekingnearly 300senior 2005 and60%by 2010. thatprocess45%ofsewagetreatment facilities by under which itwants allcitiestoestablish waste water hasissuedablue-print ofConstruction The Ministry y China planstolaunchahumanintoorbitwithinthree acrew.a craftcapable ofcarrying Statemediasay into orbit. The capsulewillbetechnically identicalto this year, closertosendingahuman takingthecountry unmannedspacecapsule China willlaunchitsfourth for thegrowth ofwashing-machine manufacturing. development ofwestern China,therewillbemoreroom Along withtheactivation market andthe oftherural intheworld.reached nearly 15million,rankingfirst China’s 2001annualoutputofwashing machines ate wealthy intothehigherlevels businessmen ofthe alid tip-offs inacrackdown againstdomesticandfor- ears. ev rt en Chinaappliancemakers settledananti-dump- y,

the boldestproposalyet inBeijing’s initiative to –C – – – – – – – tween 2000and2005. k ing markets intheworld. China’s passengercarmar- loans, which willspursalesin oneofthefastest-grow- will beable toapply tosetupventures offering car fi time.Foreign, aswellland forthefirst asChinese moved areas. outofurbanareas,while 73% leftrural Shanghai and5.8%intoBeijing.Ofthetotal,27% province, 8.7%intoZhejiangprovince, 7.4%into province. Meanwhile, 35.5%floatedintoGuangdong out of Anhui province and10.2% outofHunan out ofSichuanprovince,with 16.4%migrating 10.2% lion. Ofthetotal,36%have floatedbetween provinces, populationofmorethan120mil- China hasamigrant colleges thatactively inthemainland. recruit forforeignschoolsand become abigmoney-earner ing anestimatedUS$1billionayear. Educationhas w China isthebiggestsourceofforeignstudentsin US$ 1billion. US$ 610million.In2002domesticsalescouldtop India. 1990saleswere US$140million,and2000sales has becomethesecondbiggestpolishingcentreafter gr demand incomingyears. forecast Someexperts China isexpected tobecomeapowerhouse ofdiamond combined registered capitalofUS$253.5billion. ploying 29.3 millionpeople. The companieshada areas,togetherban areasand814.000inrural em- of Junethisyear. included1.4million inur- The figure China had2.21millionprivate companiesby theend tries toattractwell-trained staff. a Chinesecitywillhave inforeigncoun- setupoffices Canada and Australia next year. timethat Itisthefirst networkcruitment beingexpanded toFrance, Japan, city’s development drive. Successwould seethere- and intheUnitedStatestoattractspecialistsfor Shanghai willsetuprepresentative inGermany offices to issueaccreditation. accreditation.92agenciesareauthorized international 1990’s, have asmany as80.000enterprises obtained troduced itsManagementStandardsinChinathe Since theIndustrialStandardOrganization (ISO)in- crease of28.09%over 2001. electric homeapplianceswas US$4.44billion,anin- F 25%, microwave ovens 51%,airconditioners60%. ing sharesintheglobalmarket: washing machines counts for20%oftheworld’s total,takingthefollow- China’s outputofelectrichomeappliancesac- current et isexpected togrow asmuch25%annually be- rom January to June 2002 the total export value toJune2002thetotalexport of rom January ar finance companiesaretobeallowedar finance onthemain- r orld, withatotalof460.000in103countries,spend- ow ms, withnolessthan8billion Yuan intotalassets th of20to25%ayear over thenext decade.China 01-48 Umbr30219.12.200213:15UhrSeite17 – – – start construction next year. construction start including a3’800-meterrunway and Terminal 2,will mestic flights. The second phase ofPudong Airport, including HongKong andMacauones,somedo- flightstoandfromShanghai, handles allinternational Since endofOctober, PudongInternational Airport ment-friendly technologies. cling andtheproductionofhighly advanced environ- countries inthe1980s. The parkwillfocusonrecy- industries inChinaiscomparable tothatofadvanced leveltration, thecurrent ofenvironmental protection cording totheStateEnvironment Protection Adminis- cun, thewell-known “Silicon Valley ofChina.” Ac- environmental protectiontechnologies inZhongguan- scienceparkfor ofitsfirst Beijing began construction largest overseasfourth tourismmarket intheworld. dicted toreach100millionby 2020,makingitthe number ofChinesecitizenstravelling abroadispre- andthe1990SchengenConvention.Agreement The restrictive policiesrelatedtothe1985Schengen because of tothisEuropeancountry nize tourgroups destination lastyear, travel agenciesstillcannotorga- next year. Although Germany was appointedatourist pected toachieve accesstoEuropeanUnioncountries Residents ofBeijing,ShanghaiandGuangzhouareex- and Logistics.www.natural-transport.ch Natural Ltd.,InternationalFreightForwarding the rightpath. on setmanygoods Our logistics – – billion. ter. The projectsrequiretotalinvestments ofUS$20.7 ums, anOlympic cen- park,andaculturalsports stadi- some 261projects,including12Olympic field jects forthe2008Olympic Games.Beijingisplanning v The Chinesegovernment planstoinvite foreign in- w 2005, accordingtoChenChong,headofChinaSoft- software market from1.2Per centto3perby market in Asia. Chinaaimstodouble itsshareofworld engineers in Asia with over 400,000andthelargest ties nation-wide.Chinahasthelargest poolsof ment’s plansforsimilarprojectsat35otheruniversi- tion Commissionalsoannouncedthecentralgovern- school willbeUS$60million. The ShanghaiEduca- Computer Sciencedegree. The totalinvestment inthe dan. The schoolplanstooffer ajointFudan-UCD memorandum tojointly asoftware run schoolatFu- Ireland’s University College Dublin (UCD) signeda ve tode- eign universities corporations andinternational nology, Shanghaiuniversities arecooperatingwithfor- China’sIn abidtojump-start fledglingsoftware tech- estors tobidfortendersseven pro- infrastructure are Industry are Industry Association. lop know-how intheindustry. FudanUniversity and We be pleasedtoadviseyou. look usupontheInternet–we’ll Alternatively,head officeinBasel. one ofour8officesabroador 13 branch officesinSwitzerland, So whynotcallinatanyoneofour comprehensive rangeofservices. offer high-calibrelogisticsanda air, byseaandland.We also and anythingaroundtheglobe.By land. Naturaltransportseverything spares forthewholeofSwitzer- the precisedistributionofcar F or example, whenweorganise or example, alwaysdeliver Summary byPaul Wyss 17 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 01-48 Umbr30219.12.200213:15UhrSeite18 18 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG * * * *T Main Points vided updatedGDPandpriceforecasts for theyear. economic situationinthethird quarterof2002andpro- The Government Economist,MrK Y Tang, describedthe quarter of2002. inary figure onGross DomesticProduct for thethird Report 2002endofNovember, together withtheprelim- The Government released the Third QuarterEconomic Hong KongEconomyGrows3.3% ber). The underemployment ratestoodat 2.9%inthese to7.2%inthethreemonthsendingOcto- (and further of2002 to7.4%inthethirdquarter second quarter justed unemployment ratefellback,from7.7% inthe risen forfourconsecutive theseasonally quarters, ad- ity, labourmarket conditionsimproved lately. Having In tandemwiththepick-upinoverall economicactiv- ity. ter, alongwiththepick-upinoverall economicactiv- more visible build-upininventories inthethirdquar- ov computer software outweighed themodestincreasein earlier, asreducedintake ofmachinery, equipmentand of2002over inthethird quarter in realterms ayear v of2002. inthethirdquarter 1.5% inrealterms Yet in- sumer spendinghadalesseryear-on-year declineof some relative improvement inoverall Con- terms. The domesticsector, whilst stillweak, alsoshowed earlier. 2002, therewas over a14.1% leapinrealterms ayear of Inthethirdquarter services. and transportation an extensive surge ininboundtourism,offshore trade even performed better, ofservices 2000. Exports upon b over11.4% inrealterms dou- ayear earlier, thefirst ofgoodssurged of2002,totalexports bythird quarter ness fromtheearlierweakening intheUSdollar. Inthe pricecompetitive- gaininexternal gion, andafurther Mainland), generally intake inthere- increased import sustained strongdemandinthemainlandofChina(the Externally, from ofgoodscontinuedto benefit exports rise putoutearlier). (latteralsorevisedsecond quarter upfromthe0.4% of2002,followingthird quarter a0.7%increaseinthe inarow,the thirdquarter by inthe 2.5%inrealterms comparison,GDProsefor adjusted quarter-to-quarter from the0.5%growth putoutearlier).Onaseasonally a 0.8%growth (latterrevised inthesecondquarter up gr a year-on-year comparison,GDPacceleratedtoa3.3% sector.petus continuedtocomefromtheexternal On bl modest growth inthesecondquarter, picked upvisi- le-digit growth recorded since the fourth quarter of le-digit growth quarter recordedsincethefourth estment spending remained sluggish, falling byestment spendingremainedsluggish,falling 5.0% he HongKong economy, aroundtoa afterturning y further in the third quarter of2002. inthethirdquarter y further The growth im- o erall building and construction output. erall buildingandconstruction There was a wth in real terms in the third quarter of2002,from inthethirdquarter wth inrealterms * *Y * * * down to–2.5%,from–2%inthe August update. e thisyearwith thedeclinesofar alsolarger thanearlier –2.8% inthe August update. As totheGDPdeflator, as awhole isrevised slightly downward to–3%,from ten monthsof2002,itsforecastratechangefor2002 y through.Recognisingdollar possibly a3.1% filtering with someimpactfromtheearlierweakening intheUS economies andgenerally mildglobaldemand, though amidst persistentdeflationinthemajorsupplier w ofrenewed inface in thenearterm, moderationin On thepricefront,localpricesshouldremainsubdued holding backdemand. and continuingdownward pressureonpricesmay keep the on-goingadjustmenttoeconomicrestructuring again hitsentiment.Domestically, that thereisconcern activities inrecenttimeshaveand theboutsofterrorist uncertainty, actiononIraqremainsacurrent military Plausible pansion, shouldrenderthedesiredsupport. ex- US interestrates,coupledwithcontinuedfiscal on theHongKong economy. Onthis,thelatestcutin economic recovery, withinevitable spill-over effects if tocomeabout,would onglobal have ramifications mestic fronts.Externally, arelapseintheUSeconomy, some relative improvement. activity, investment spendingshouldbeable toshow lower interestcostandthepick-upinoverall economic toconsumerspending. der somesupport Also, with Locally, steadieremployment conditionsshouldren- the earlierweakening intheUSdollar. isimprovedterm pricecompetitiveness external from rendering impetustoHongKong’s inthenear exports demand, particularly demandintheMainland. Also y fortherestof ofbothgoodsandservices Exports gr for 2002israisedto2%,upfromtheforecastofa1.5% last year, theforecastgrowth ofGDP rateinrealterms distinctly lower baseofcomparisontowards theendof possibly extending totherestofyear, aswell asa the thirdquarter, trade astrongmomentuminexternal In view shown ofabettereconomicperformance upin the threemonthsendingOctober). two (thoughedgingslightly quarters higherto3.0%in xpected, itsforecastrateofchangein2002istrimmed ear-on-year declineintheCompositeCPIfirst ear shouldcontinuetobebuoyed by vibrantregional et therearestillcaveats anddo- onboththeexternal ages and rentals. Import pricesarelikelyages andrentals.Import tostay soft, o wth inthe August update. 01-48 Umbr30219.12.200213:15UhrSeite19 esl , , , 0,0 – 0,0 56,5 0,0 1,5 0,1 0,0 0,1 0,0 –39,7 –7,6 0,0 0,4 – 0,1 6,7 – 0,3 –30,8 231,4 30,9 0,0 0,8 0,0 0,1 1,9 0,0 0,6 3,2 0,0 –9,0 –54,0 0,0 0,8 14,3 0,2 18,5 –93,3 0,0 13,8 –95,3 –8,1 Other goods 0,0 0,0 0,0 18,7 397,9 Wa –84,6 0,0 – Mechanicalmeasuring,testing,controlequip. 0,2 and appliances – Medicalinstruments 0,0 – Surveying instruments photo – Opticalinstruments, 0,0 –54,4 1,3 Precision 2,9 instruments 0,0 5,9 – – Vessels 13,6 –36,3 – Aircraft andspacecraft –17,9 13,3 6,0 – Railway vehicles 0,0 27,0 0,3 0,8 0,1 0,0 5,3 –8,0 122,2 –21,2 – Road-vehicles 44,4 –5,6 1,4 17,7 2,7 V 0,0 118,6 5,5 – Defenceequipment –11,1 122,6 andelectronics – Electricalmachinery machines,Computers – Office – Householdappliances machines – Agricultural Share CHF% ± Mio.CHF – Industrialmachinery electronics apparatus, Machinery, Share glass ceramics, Construction materials, CHF% ± Mio.CHF pharmaceuticals Chemicals, plastics rubber, Leather, P Te Energy carriers Agricultural products T Goods –September2002(inMio.CHF) January Bilateral Trade between SwitzerlandandHongKong pr ae rdcs printedmatter paper products, aper, ehicles tlslce .3, , 0, 5, 03100,0 –0,3 454,7 100,0 5,4 2.233,1 otal selected pr at , 2, , , 0, 0,0 0,0 100,4 – 0,1 0,0 0,0 0,0 – 0,0 –69,2 –24,8 0,0 0,0 0,1 0,1 – 0,0 0,0 1,3 –99,4 0,0 4,3 –15,9 33,8 0,0 0,1 0,1 5,8 –21,3 0,4 19,4 –47,2 1,3 1,3 –54,0 0,3 3,6 20,0 –19,6 0,0 1,8 0,2 0,0 1,4 0,0 28,5 5,7 – Spareparts – 0,4 vehicles – Specialpurpose –10,0 10,5 80,3 –43,7 0,1 ofgoods – transport –10,6 1,1 ofpersons – transport 0,1 0,9 0,1 9,9 –32,0 5,4 0,0 0,1 1,7 –11,6 120,8 16,2 – Electricandelectronicarticles 120,0 – Telecommunications 0,2 2,5 – Power generation,electricmotors – Householdmachines electronics – Entertainment engineering – Machinery machinery – Construction – Enginesnon-electrical tls pae,shoes apparel, xtiles, tches .1, , 99110–2342,0 –22,3 191,0 49,9 1,1 1.115,0 xotEpr xotIpr motImport Import Import Export Export Export 6, 491, 77–1210,5 –21,2 1,4 47,7 56,8 11,7 6,3 –4,9 261,7 14,0 –2,3 313,1 9, 391, 3, 1, 29,2 112,1 132,7 13,3 73,9 296,0 01–040509–, 0,2 –0,7 0,8 0,9 –7,4 0,3 0,5 3,7 –47,2 –20,4 1,1 1,7 10,1 0,3 0,7 –6,3 –40,3 38,1 73,7 1,6 14,6 0,9 –6,5 20,1 481, , 291111,6 1,1 52,9 3,3 18,5 74,8 41–, , , 2, 2,0 –25,4 9,0 2,4 –1,8 54,1 , 9, , , 0,0 – 0,0 0,0 –96,3 0,1 , 8, , , 4, 0,0 –49,2 0,2 0,0 –86,0 0,2 Source: Swissmem 19 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG 01-48 Umbr30219.12.200213:15UhrSeite20 20 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE SHANGHAI million RMB, corresponding toroughlymillion RMB, US$125’000.–. corresponding people have a bankaccountshowing abalanceofover a Chinese bankingcirclesaround 10%ofShanghainese These developments donotreally surprise. According to Quality Consciousness habits ofolderChinesegenerations. presentaserious inroadintothetea-drinking the country eral. The poppingupofStarbuckCaféseverywhere in tastes inShanghaiandontheChinesemainlandgen- ofconsumer ture, documentinganinternationalisation and coffee areaninteresting fea- machinesinparticular Coffeetoo, withlocalandforeignbrandsparticipating. gained amorerepresentative andhigherpricedimage, w stellation models. The recentFood andHotelExhibition, chocolate atthe50thanniversary celebrationofitsCon- ment, theotherinHuaihaiLu–anddistributedSwiss most expensive commercialdistrictinthecityatmo- new flagshipstoresin Shanghai,oneinXujiahui,the from HongKong toShanghai.Omega justopenedtwo recent companiestomove theirregional headquarters Huangpu river, theSwatch beingoneofthemost group tothecityon arerelocatingtheiroffices more firms andaccessoriesbusiness.More setters inthefashion trend consumerism isalsocomingfromtheinternational ritory. authorities toexpand theprivilege tothewhole ofherter- list thisyear andtheEUisindiscussionwithChinese New ZealandandCanada,butGermany was addedtothe reasons isstilllimitedtoSouth-East Asian, Australia, holidays ofMaiandOctober. Travel forpurely touristic travel by usually Chinesegroups peakduringthenational survive the rathertoughChinesecompetition.Overseas ev a lengthofseveral kilometres.Equally how- important, prestigious shoppingstreetsinShanghaiwhich bothhave appear daily inNanjingLuandHuaihaiLu,thetwo most creasing notably, too.Numerousnew andtrendyshops rapidly. very ing ground orlocal productsby brandsaregain- ports international fromtheupward trends,where im- general isprofiting in packed road-siderestaurant.Butthefoodindustry can enjoy ofabiggerpersonalspacethanin theluxury ages easily reachUS$5000.–andwhere thehappy few memberpack- wine andcigarbars,where introductory withexpensivestarting restaurantsaswell asprivate are distinguishable ofpersonalconsumption, inallfacets carsandwatches.niture, fashion, Cleardevelopments azines inthecity, concentratingmainly onhousing,fur- only visible throughthemushrooming oflife-stylemag- ke Many signsshow thatShanghaidevelops rapidly intothe Consumerism inShanghai Shanghai ConsumersasTrend Setters here osec participated with some Swiss firms, clearly withsomeSwissfirms, here osecparticipated The recognition ofShanghai asanemerging centreof Consumption ofleisuregoodsorbeautyproductsisin- er, isthedisappearanceofshopsthatarenotable to y trendsetterinChineseconsumertastes. This isnot ferent levels ofchocolate qualities,andthemiddleclass tinguishing between goldandplatinumorbetween dif- developed. A Shanghaicustomerhasno problem indis- cities inChinatoday andwell ofteninternational isvery spond. The knowledge oftheconsumerinbigcoastal tainly she–pays theprice,butqualitymustcorre- demanding customer.also ledtoavery He–andcer- to pay relatively highpricesforoutstandingquality, has companies. First thatthecustomerisready ofall,thefact consequencesfor important This hassomevery Western Challenges toForeignCompanies in Shanghai and the surrounding provinces.in Shanghaiandthesurrounding or hedecidesclearly on aqualityandcostbasis–atleast ofcompaniesandbrands,she to decideonthefate “Shanghai” brandintheseventies. The consumerstarts pared totheoldMercedescopy producedhereunderthe Europe, when theoutdatedmodelswere stillshiny com- w Gonearethedaysantee asatisfyingaftersalesservice. networkbuilding upahigh-classservice inordertoguar- duced inGermany. At thesametimecarmaker is quality modelscompletely comparable toitsmodelspro- producer VW switched itsstrategy toproductionoftop- ating inChina. producingandoper- quality guaranteesofforeignfirms being sureofthequalityguaranteedby orby imports sumer topurchasetherealthing,beingproudofitand brandsmaying ofinternational leadthewealthier con- health ofChinesecustomersatrisk. The rampantcopy- ucts, notyieldingthepromisedresultsoreven putting the prod- pharmaceutical stronghandduetofake with avery as well. Heretoo,thegovernment hadtobecomeactive fields issueincertain solution oftheintellectualproperty population thatcouldlead, also,toa inthelongerterm away.lies far size oftheproblem issuchthatasatisfyingsituationstill strongly committeditselftocontrolthesituation,but happens toooften. The Shanghaigovernment has animal feedisrampantandwhere foodpoisoningstill ve in where abusesofagrochemicals inacountry portance has notbeentainted, isanelementofconsiderable im- orinfoodgeneralwhich in meatwithouthormones antee ofqualityinvegetables withoutpesticideresidues, given totheShanghaiMunicipality. concern The guar- have whoseof theFrench highprofits retailerCarrefour high qualitymay well bethekey forthesuccess factor herent inthehighclassproductsegments. Relianceon sumer trendsinShanghai,andnotthesnobappealin- ity. premium goodsandarereadytopay foragaininqual- people arecarefulaboutmoney. When they buy, they buy At thesametimesellersarewell aware thatShanghainese hen Chinawas happy withold productionlinesfrom These qualityissuesarefelteverywhere. Even thecar It may well very bethequalityconsciousnessof Quality consciousnessmay bethekey tomany con- getable and fruit production and of pharmaceuticals in productionandofpharmaceuticals getable andfruit 01-48 Umbr30219.12.200213:15UhrSeite21 area in the January-June period. area intheJanuary-June of a15percentriseinthenumber ofguestroomsinthe riod lastyear. The growing occupancy ratewas theresult 72 percentonaverage, 9.4percenthigherthansamepe- sis. The occupancy rateofover hotelsreached 60luxury million USdollars),ariseof29percentonyearly ba- same periodlastyear, respectively. 180,000 fromoverseas, 62and48percentmorethanthe halfofthisyear, including million visitorsinthefirst w New Districtthathasdrawn visitorsfromaroundthe Boulevard alladdtothesplendorofShanghai’s Pudong T The OrientalPearl TV Tower, ShanghaiScienceand T Shanghai Becomes w the bestway tobecomethetrendsetterforChinaasa provincesregion. Shanghaianditssurrounding areon developments handpictureofmodern inthe get afirst presents anexcellent occasionforSwisscompaniesto orrelatedproducts consumer goodsortointermediate y likelyof GDPwillvery bereachedinShanghaiby the period lastyear, thethresholdofUS$5000.–percapital v Y lation totheseconsumeritems,remainsexcellent inthe XO, fromcarstocosmetics,aswell asforproductsinre- The outlookforconsumerproducts,fromcafétoCognac Companies Fairs andExhibitions:ChancesforForeign well. very patterns producer –butapersonmasteringChinesebehaviour “neutral” personguaranteeingthequalityofforeign stronger competitive Itmustbeanethnically patterns. gr andmay important nese relationsarestillvery even have T can generally notbeaChinesepersonfromHongKong, the qualityofbrandandproduct. The foreigner relationship shouldbeaforeignerinordertodocument inacustomer longer aproblem, thepersonoflastresort e speaking, qualitycontrolinitselfmuststillbedoneby ence, too,especially intheconsumerbusiness.Generally ferent amount. bought inthenew flagshipstoreinHuaihaiLuforadif- market placefortwenty USdollarsandthesamemodel knows thedifference between aLonginesboughtinthe xpatriate employees. Buteven ifqualitycontrolisno ate carshassoared40%inChinacomparedtothesame ear 2003. Any orexhibition fair inrelationtofinished echnology Museum,JinmaoPlazaandShiji(Century) aiwan orSingaporeeither. The problems ofintra-Chi- angtse region forthemonthstocome. The saleofpri- orld. Lateststatisticsshow thatPudongreceived 7.34 hole, replacingHongKong initsleadingrole. ourist Destination o The incomefromtourismtopped1.5billionyuan(180 The qualitymustbeguaranteedby anexpatriate pres- wn withtheopeningofeconomy andtheensuing The ConsulGeneral ofSwitzerland Hans Jakob Roth  Homepage: www.t-link.ch



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e-mail: [email protected] International MarketingandExhibitionexperts Support forLetterofcreditbusiness Container stuffing and lashing Container stuffingand Warehousing +41 (0)1–8220032 +41 (0)55–4106566 +41 (0)1–8506777 e-mail: [email protected] e-mail: [email protected] P.O. Box166/CH–8800Duebendorf1 Kirchstrasse 42/CH–8807Freienbach Industriestrasse 139/CH–8155Niederhasli The efficientexportpackagingcompany, Worldwide TransportationEngineering, established 1990 established 2001 established 1990     Switzerland

+41(0)1–8506900 +41(0)1–8016659 +41 (0)1–8220082 +41 (0)55–4105458 º -VCI 21 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE SHANGHAI 01-48 Umbr30219.12.200213:15UhrSeite22 22 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE SHANGHAI w closed togainsomeheightandcreatemoreanartistic building inHongqiaodistrict. The ceilingswere not of theConsulate,lying onthe22ndfloorofahigh-rise atmosphere inthereceptionarea. ofthewaitingup intheupholstery room,creatingawarm land. The warm coloursofournationalemblem aretaken standing andpresentsanopenwelcoming Switzer- interior designofthenew ConsulateGeneralisout- signer working foriAction,an Australian company, the and Logistics anddeveloped de- by internal aGerman Commissioned by the Federal ofConstruction Office 319, somethreehundredmetresfromtheoldlocation. Shanghai was moved toitsnew locationinXianXiaLu In June2002theConsulateGeneralofSwitzerlandin Consulate GeneralinShanghai New Premisesofthe tional and regional conferences in the first sixmonthsof tional andregional conferences inthefirst tistics show thePudongnew areahosted407interna- bition venues now ofthetouristtrail.Sta- constitutepart Pudong’s tourismindustry. Many conferenceandexhi- behindtherapidgrowthalso oneofthemajorfactors of lion visitorssinceitopenedtosixyears ago. P matchable withManhattaninNew York. The Oriental ing thestylishLujiazuibankingandtradezonethatare ness tremendouschangestakingplaceinShanghai,say- Pudong asawindow throughwhich anoutsidercanwit- earl TV Tower inLujiazuiareahasattracted13.5mil- orking environment thananadministrative place. But thecreative ideasdidnotstopinthecustomerarea The booming conference and exhibition industry is The boomingconferenceandexhibition industry Ashley W. Esarey, avisitorfromNew York, cited fully inthetrendofdevelopments. azines ofthecityproves, thatSwitzerland is,foronce, Consulate isaphotographic topicinmany life-stylemag- coming metropolisofthe21stcentury. thatthe The fact tation thebestpossible presentationofSwitzerlandinthe developingthis fast city, allowing represen- ourofficial sion ofthework forceandtheConsulate. the planningleftenoughroomforconsiderable expan- ing systemassureidealworking conditions.Furthermore ing placesandanindependentairconditioningheat- of theShanghaiCityfrom22ndfloor. Spaciouswork- pects oftheopenceiling. A nicecanteenoverlooks part elements intheentranceanddampentechnicalas- W restaurants. four-star andseven hotels,andover five-star 2,700 hotels,includingsevendotted withmorethan60luxury of thehotelandcateringbusinessesinPudong,which is billion USdollars)intourismincome. abroad, andbringingtoPudongover 2.5billionyuan(3 attracting 12.1millionvisitorsfrombothathomeand conferencesand21large exhibitions,102 international the same2001period.Moreover, Pudonglastyear hosted dated atotalof72,000people,rise125percentover the year, a53percentjump. The conferencesaccommo- ooden elementsandcolouredglasspanelstake upthe The designofthenew ConsulateGeneralismadefor The tourist industry hasacceleratedthedevelopmentThe touristindustry Consulate General ofSwitzerland Consulate. counter ofthenew Entry hallwithvisa Source: Xinhuanet 01-48 Umbr30219.12.200213:15UhrSeite23 ing hosting big international exhibitions. ing hostingbiginternational the municipalityto150,000squaremetersandfacilitat- into operationlastyear, extending totaldisplay spaceof branches inShanghai. and MilanofItaly have alreadyestablished theirown basedinHanovertwo ofGermany otherexhibition firms w materials, andcartoons. tion technology, construction furniture, international June periodthisyear, includingexpos of Asian informa- has heldatotalof144exhibitions duringtheJanuary- busiest exhibition citiesaroundthecountry. Shanghai given 5.5exhibits perweek in2002,makingitoneofthe mitments onthefuturemarket China. Especially forthe Southeast Asian company canafford todelay theircom- like MicrosoftandIBM–no American, Europeanor ics giantslike NECand Toshiba, computer specialists ota, chemicalcompanieslike Bayer andBASF, electron- US. cent of Asia’s FDIandleadstheworld even beforethe W Dollar inforeigndirectinvestment untiltheendof2002. (Unctad) Chinawillhave acquiredalmost50billionUS Nations Conferencefor Trade andDevelopment recognised thesignsoftimes: According totheUnited the late80s.Many foreigncompanieshave already domestic productusedtobehalfoftheRussianGDPin the world’s biggesteconomy until2020. f other 7.8percent. The People’s Republic ofChinaisthe halfof2002thegrowth climbeduptoan- and inthefirst g w inthepresently –but are extraordinary badstateofthe like thesealready In timesofeconomicalstabilityfigures the FairLocationChina How EstablishedWestern Trade FairsStimulate Setting InternationalStandards wa since theirexisting oneswould bepulleddown togive local residentswho areinurgent needtobuynew flats ment buildings,which would draw of aftergroup group showtion listwas ofvillasinthecityandapart- thefirst housing exhibitions during thevacation. Ontheexhibi- China’s largest metropolishasplannedtoholdover 10 housing exhibition festival forthepeopleofShanghai,as The seven-day NationalDay holiday couldbenameda Shanghai BecomesChina’s LeadingExhibitor astest growing economy in Asia andislikely tobecome ross domesticproductofChinaincreased7.6percent orld, setupitsbranchinShanghai April. Beforethat, orld’s economy they almostseemutopian:In2001the Shanghai’s new exhibition centerwent international thethirdexhibitionMesse Frankfurt, giantinthe The lateststatisticsavailable show thatShanghaihas No matter if big car manufacturers like BMWor No matterifbigcarmanufacturers Toy- This isanamazingpotentialforacountry, whose gross ith thatthePeople’s Republic receives almost80per y tonew roadsorlawns scheduledby cityplanners. a lot of support. Fora lotofsupport. orga- instance inShanghai,thefair western organizersand technicalmatters–but fair offer lot tocatchupconsideringvenues, standconstruction, customed standards. locationChina hasstilla The fair vides aframework fortheirattendeesaccording totheac- w uct tothemarket. market, evaluate own orintroduceaprod- opportunities, f atregional mitment abroadmightbetheparticipation needs togodirectly stepforacom- tothespot. A first who but seriouslystart, planstheirexpansion toChina, To evenportunities forsmallandmedium-sizedcompanies. vistas forthebigcompanies: op- There aremedium-term But theboomingChinesemarket notonly opensupnew W in thisvibrantcity2010. center, especially inview ofthe World Expotakingplace opportunities. 1,000 sqmoftheexhibition spacemeanalmost100job Shanghai ExhibitionCenter, acknowledged thatevery more than25percent.ChenXianjin,generalmanagerof rateof boastsaprofit exhibition industry international and hotelbusiness. Authentic statisticsindicatethatthe aviation, tourism,commerce,cateringservice, benefits rocket Exhibition againstthisbackdrop,saidexperts. in Shanghai.Shanghai’s exhibition businesswould sky- of theworld’s Top 500have orbranches openedoffices gr in China,hasmaintainedadouble-digit economic gr 2000toJulyfrom January thisyear, withanannual e w than 100companiesengagedintheexhibition business, lost time. into thismarket untilthenwillhave ahardtimetoregain the world’s biggestfreetrade zone. Who missedtobreak Republic together withthe ASEAN countrieswillform of ence intheheart Asia: The latestin2012 thePeople’s European andthe showAmericans itisimportant pres- airs. As visitororexhibitor onecanclosely the observe xhibition centershadheldatotalof595exhibitions as approved over years offer advantages great andpro- hich aremannedwithover 4,000employees. The five o o Especially basedonanexhibition fairs conceptthat Shanghai couldbecomeasuperworld-class exhibition growingShanghai, withoneofthefastest economies Shanghai now exhibition centersandmore hasfive est GoesEast–theChineseFairLocation

wth ratefor10consecutive years. Nearly 300firms wth rateofover 20percent. w atch the market from afar mightbeenoughfora atch themarket fromafar Source: People’s Daily 23 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE SHANGHAI 01-48 Umbr30219.12.200213:15UhrSeite24 24 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE SHANGHAI tative exhibitors’ participation. participation. Totative acquirewestern com- exhibitors’ trade locationtheorganizers alsodependonarepresen- sociations aswell aspublic authorities. as- forShanghai –andnationalindustry tion Corporation Hong Kong Exhibi- andtheCIECChinaInternational ners –theHongKong Trade Development Councilfor Another reasonisalsothecooperationwithlocalpart- biggest organizer fromMunich. ofelectronicstradefairs based ontheexperience andtheknow-how oftheworld’s f and electronicsproduction. The successofthesetrade its productrangeelectronicscomponentsandassemblies miere inShanghai2002andwas successfulwith very nents in Asia since1997;electronicChinahaditspre- forelectronicscompo- has beenthemostsuccessfulfair local market requirements,electronicAsiainHongKong regional key fortheChinese market. Matchedtothe fairs hasestablished tradefair tronica inMunich,theGerman electronica aswell asforelectronicsproductionProduc- forcomponentsandassembliestrade fair inelectronics keyBased onthesuccessfulconceptofinternational the cooperationofwestern organizers. andChinesefair T The example oftheMunich oftheelectronicstradefairs For InstanceElectronicsTrade Fairs organizers conceptsandfair theytrade fair alreadyknow. Especially exhibitors fromEuropeand in America trust still dependonthelongexperience offoreignpartners. it comestoorganize theChinesetradefairs tradefairs, exhibition centerin the biggestandmostmodern Asia. completion ofits17hallsplusopenairspaceitwillbe exhibition standards;afterthe with theinternational theSNIECnotonlyand withitsfacilities corresponds space were ofconstruction opened.Interms officially hallswith55,000squaremeterexhibition five the first 100 millionUSDollarwere invested; inNovember 2001 phasealmost tional ExpoCenter(SNIEC).Inthefirst theShanghaiNew Interna- ment (Holding)Corporation joint venture withtheShanghai PudongLandDevelop- Duesseldorf have invested extensively andrealizedina nizers MesseMuenchen,Hannover andMesse airs inChinaandtheirgrowing for importance Asia is rade Fairs shows from how attendeesprofit muchfair But to establish China as an international, competitiveBut toestablish Chinaasaninternational, At present,Chinaexperiences rapidchanges,butwhen F E-mail: [email protected] F Phone +41(0)432448910 INTERMESS DÖRGELOH AG, Zurich F Contact inSwitzerland for all events ofMunich Trade wa and attendeesfromallover theworld –andsmooththe reputationandattractcompanies from theinternational The regional inChinaprofit satellitesofthesetradefairs tions they have ofexhibitors andvisitors. gainedthetrust e economical openingofthePeople’s Republic; hostedby known names,which have beenestablished beforethe specialized tradefairs. The mostsuccessfulhave well- cessful events tohighly arestaged–fromconsumerfairs the specialadministrationzoneHongKong, alotofsuc- guage andculture. past andwithwhom oflan- they interms arefamiliar ev before,duringandafterthe fromacontactpartner profit w tering thenew market, asthey notonly receive support without profoundexperience in Asia losetheirfearofen- ganizers –forexample Munich Trade Fairs. Companies inwestern tradeor- electronica –andtheirconfidence tation ofalreadyestablished events –like theGerman fromthegoodrepu- panies asexhibitors profit thefairs http://mmi.presseagentur.com xperienced trade organizers at international trade loca- xperienced tradeorganizers atinternational or furthernews about Messe Muenchen visit: ax +41(0)432448919 airs InternationalinPRChina: B+D Shanghai,October 28–31,2003 electronicAsia, HongKong, October13–16,2003 China,Shanghai,September18–21,2003 Luxury China,Shanghai,MayBakery 14–16,2003 Auto Shanghai, April 21–27,2003 electronicChina, Shanghai,March12–14,2003 in China2003: The trade fairs ofMunich Trade Fairs hen preparingfortheexpansion toFar East;they also In theChineseregion, nomatterifMainlandChinaor ent, who they experienced inthe asareliable partner y forthefutureoftradelocationChina. (Photo: ImagineChina) The new exhibitioncenter in Shanghai 01-48 Umbr 302 19.12.2002 13:16 Uhr Seite 25

electronicChina 2003

International Trade Fair for Components, Assemblies, Electronics Production and Photonic Technologies with PCIM China. In conjunction with SEMICON China March 12-14, Shanghai (Pudong)

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It got off to a brilliant start and has outstanding prospects – in 2002 electronic China immediately established itself as the most important platform for China's new electronics industry. It is unique because it gives visitors such a comprehensive look at the industry's entire value-added chain, from electro- nic components to production technology and services. And market potential is growing: Southeast Asia is the leading market for electronic components in 2002. All signs indicate expansion in other segments, as well. Be a part of it! electronicChina 2003 & SEMICON China – your gateway to the largest growth market in the world www.global-electronics.net

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Global electro- nics

* In China the dragon is a symbol of wealth, good luck and divine protection. It is considered friendly and wise. 01-48 Umbr30219.12.200213:16UhrSeite26 26 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE INTERVIEWS sular district,alsogeographically oriented, we now to try w Mr. Lüthi:Incontrasttothepre-Hubperiod where the Beijing organised? hai andtheCommercial sectionoftheEmbassyin How isthework between theHubinBeijingandShang- few. Deputy DirectorofthelocalMOFTEC,tonamebuta ofthelocal CCPIT andMr.Chairman Tang Qingfu, with localdecision-takers. We metMr. Wu Chenglin, Hans Jakob Roth,organised interestingmeetings, very W In additiontothat,my deputyinShanghai,Mrs.Freda Chapter oftheSwiss-ChineseChamberCommerce. Annual generalassembly meetingoftheShanghai the localSwissbusinesscommunityasheattended Swiss ConsulateGeneral. There againMr. Hösly met Business Hub’s ofthe branchinShanghaiattheoffice tional Trade, were present. ChinaCouncilforthePromotionofInterna- Chairman, Chinese ChamberofCommerceandMr. Wan Jifei, Vice- community. Mr. UrsBuchmann,PresidentoftheSwiss- and Chinesedignitariesespecially fromthebusiness ties. Credit Suissegenerously theopeningfestivi- supported w ple’s Republic ofChina,hostedabuffet dinner, during minique Dreyer, Ambassador ofSwitzerlandtothePeo- intoit.Intheevening, Mr.Swiss BusinessHubsfit Do- sion ofOsecBusinessNetwork Switzerlandandhow the Swiss businesscommunityandoutlinedhereby hisvi- Swiss ChineseChamberofCommercehemetwiththe of Osec’s CEO, Mr. BalzHösly. Duringalunchwiththe doors onMarch18ofthisyear inBeijingthepresence Mr. Lüthi: The SwissBusinessHubChinaopenedits open andwhere isitlocated? WhendidtheSwissBusinessHubChina Lüthi: Mr. withSwissBusiness HubChina Interview ork was clearly divided alongtheboarders ofthecon- hich theBeijingHubwas declaredopen. officially ang with the great support ofourConsulGeneral,Mr. support ang withthegreat Mr. Hösly alsoattendedthe openingoftheSwiss The Ambassador’s receptionwas attendedby Swiss charged. vidual consultingofcompanies somefeeswillbe standing consultingservices. “one stopshop”-principleallow intensive fast, andhigh- nies andmedia. The new network philosophy andthe ontheSwiss economyinformation forChinesecompa- ness Network Switzerland(see:www.osec.ch) aswell as k abouttheChinesemar- ious Chinesecities,information invar- onpresentations andtradefairs of SMEs,reports individual partners, consultingandcoaching and import product analysis, searchofdistributors, representatives cally, theSwissBusinessHub Chinaoffers market and Chinese companiesintheyears tocome.Morespecifi- business relationsbetween Swiss/Liechtensteinand with Chinesepartners. The hubwillthushelpfostering order tostrengthenanddevelop theirbusinessrelations fromSwitzerlandandLiechtensteinin sized enterprises tosmallandmedium- services signed tooffer specific Mr. Lüthi: The SwissBusinessHubChinaoverall isde- ness HubChina? What are themaingoals andservicesoftheSwissBusi- able andpractical. eachotherwheneverjing andShanghaisupport suit- with theSwissChineseChamberofCommerceinBei- son withoutdelays. Besideswe have close relations very can assurethatany request willreachthecompetentper- SBH, theEmbassyorConsulateGeneralassuch. We it isalways bettertoforward any requestsgenerally tothe Instead ofaddressingindividual peopleinthenetwork, v pects ofdoingbusinessinChina.Beingsocloseisanad- Swiss BusinessHubconcentratesontheoperationalas- charge FundSSPF, oftheSinoSwissPartnership the to potentialinvestors, liaseswiththeSCCCandisin macro-economic andlegal issues,promotesSwitzerland proach. Whereas theeconomicsectionfocuseson pragmatic way. Limitedresourcescallforsuchanap- tion oftheEmbassyandHubaredivided inavery be ad-dressedsoon. inShanghaiandtheproblem should particularly difficult China would besomehow understaffed. The situationis I hadfromthebeginning thattheSwissBusinessHub ing. thefears. The successwe enjoy butconfirms isgreat timesinceitsopen- short China hasbecomeinthevery impressed abouthow successfultheSwissBusinessHub of theworkload between BeijingandShanghai.Iamvery foreseeable future. We toachieve alsotry adistribution are concentrated. This situationwillnotchangeinthe Shanghai andBeijing,where SwissbusinessesinChina tasks. Therefore thefocusofouractivities iscentredon geography still isaremainingissuewhen organising the dustry, abusinessislocatedoranactivity takes placeso ple. Ofcourse,we cannotcompletely ignorewhere an in- employ anddeploy thetalents alongthenetwork-princi- antage as information is shared very openly issharedvery andfreely.antage asinformation ets via the central information-platform ofOsecBusi- ets viathecentralinformation-platform Basic information isfreeofcharge, whereasBasic information forindi- The tasksbetween thecommercialandeconomicsec- 01-48 Umbr30219.12.200213:16UhrSeite27 in Europa. Damit istDeutschlandunserwichtigster Handelspartner auf23,5MilliardenUS-Dollargestiegen.das 90fache stiken seit Aufnahme diplomatischerBeziehungen um deutlich. SoistdasHandelsvolumen nachunserenStati- Beziehungen wird besondersbeidenwirtschaftlichen Entwicklung vom KleinenzumGroßenvollzogen. Das Ma Canrong:Indenvergangenen 30Jahrenhatsicheine ders aus? beziehungen zwischen Deutschland undChina beson- Was30 Jahre zeichnet zurückblicken: die Wirtschafts- wenn Sieaufdievergangenen HerrBotschafter, CC: Deutschland undder VR China. tischer Beziehungen zwischen derBundesrepublik diesjährigen 30-Jahr-Jubiläums der Aufnahme diploma- desrepublik Deutschland, MaCanrong, aus Anlass des Gespräch mitdemBotschafter der VR ChinainderBun- Mittelstand stärkerfördern the Hubindividually theChinamarket. fromOsecand Swiss businessestodiscusswithexperts for our HubinSwitzerland.Itisanexcellent opportunity Network Switzerland.Mrs.CongMing,willrepresent organised forthethirdtimethisyear by OsecBusiness ing theevent. inorganis- srail andtheSwissBusinessHubsupported hai. wasThere, Swissparticipation managedby Swis- attheChinaRail2002inShang- participated industry At thesametimerepresentatives oftheSwissrailway w organised jointly by Swissmem,OsecBusinessNet- intheSwissPavilion20 Swisscompaniesparticipated Exhibition CITME.From October15to19,morethan bers thebi-annualChinaInternational Textile Machine num- attendedinagreat Swiss textile machineindustry Switzerland forfutureparticipation. Traditionally the still small,we areoptimisttostrengthentheinterestin atthisshow Swissparticipation was Although thefirst Hotel ChinaFHCfromSeptember3to6inShanghai. we Swiss BusinessHubChina. contact withtheChinesemediaisanotherpriorityof level too. andinterestgroups Aiming tokeep intensive tional level butincludesprovincial andmunicipality tion, orMOFTEC.Networking isnotlimitedtothena- Council, ChinaMachine Tool & Tool Builders’Associa- isations, suchasCCPIT, ChinaNational Textile Industry organ- contacts totheChineseprofessionalandindustry Mr. Lüthi: Oneshareofourwork istomaintainclose cretely helpstofoster thesebusiness relations? Can you tellussomeexamples onhow thehubcon- ork SwitzerlandandtheSwissBusinessHubChina. Upcoming aretheso-calledcompany consultingdays To

organised a first Swiss participation attheFood Swissparticipation and organised afirst gether withOsecBusinessNetwork Switzerland sein. fen, werden esjetztauchmehrchinesische Touristen K Union. Waren Siebishernurgewohnt, vieleJapaner, dieerstemit einem LandderEuropäischen barung, auch dieerstkürzlichgetroffene Tourismusverein- bei denbritischenDirektinvestitionen. das Tempo desZuwachses inzwischen deutlichhöherals nach nochhinterGroßbritannienaufRangzwei, dochist heute führendinEuropa.Zwar liegt esdem Volumen neue Etappeeingeleitet. gie-Forum imvergangenen JahrinPeking hatdabei eine Hightechproduktion. DasgemeinsameHochtechnolo- arbeit biszurKooperation imUmweltschutz undinder Zusammen- undreichtvonumfassend derfinanziellen heute nichtmehrnuraufdenHandelbeschränkt:Sieist important. and athomeisvery k lobbying bothinChina andSwitzerland. The functionof tradeshowsing suppliers,manufacturers, etc. custom tariffs, andregulations, tracingandcheck- rules Swiss andChinesebusinessenvironment, forexample andindividualto cover needsonthe information specific wasteand unnecessary ofresources. other. In any caseitmustbetheaimtoavoid double track concentrate onwhat organisation candobetterthanthe ness community. That meanswe have toseehow we can ofthewhole Swissbusi- scarce resourcesforthebenefit ve tivities, we tasksandservices areproviding. Again, Iam ac- more willbesubjecttoajointanalysis ofourcurrent Switzerland. How we caneven improve ourco-operation SCCC branchesinChinabutalsowiththe achieved alreadyisgood, even goodwithboth very Mr. Lüthi: Ibelieve thelevel ofco-operationwe have in thenearfuture? closely withtheSwiss-ChineseChamberofCommerce How towork doyou seetheopportunities together more ber). Shanghaitex (June)andFood andHotelChina(Septem- Machine ternational Tool Show inBeijing(April), eeping theSwissbusinesscommunitytogether inChina oreaner oder Taiwaner indeutschenStädtenanzutref- Ein BeispielfürdasBesonderederBeziehungenist Auch beiDirektinvestitionen inChinaistDeutschland Das Besondereistaber, dasssichdieKooperation The strengthoftheChamberisinpublic relationsand wellThe SwissBusinessHubChinaisvery positioned intheChinaIn- In 2003Switzerlandwillparticipate ry

pragmatic andinfavour ofpullingtogether our Head oftheSwissBusinessHubChina ([email protected]) Interview withMr. ErwinLüthi, 27 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE INTERVIEWS 01-48 Umbr30219.12.200213:16UhrSeite28 28 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE INTERVIEWS lohnt es sich, dort zuinvestieren.lohnt essich,dort Pa müssen. Wenn im Unternehmen Westen Chinaseinen Das sindBesonderheiten,dielangfristig genutztwerden Ressourcen, die Arbeitskräfte sindbilligeralsimOsten. müssen wirschaffen. Aber im Westen gibtessehrreiche Ma Canrong:Dasstimmt.Die Voraussetzungen dafür Chinas sindjedoch noch sehrschwierig. DieBedingungen fürInvestitionen im Westen CC: menarbeit. china-Programm neueMöglichkeiten fürdieZusam- tung fürdie Volkswirtschaft. Schließlichbietetdas West- zunehmendanBedeu- kleine undmittlereUnternehmen nach Chinazuöffnen. Dennauchbeiunsgewinnen noch mehrtunkönnen,umdemMittelstandden Weg und Abfallwirtschaft. Undichdenke, dassbeideLänder len Wettbewerb bestehenkönnen,oderUmweltschutz duktion von Hightecherzeugnissen,dieiminternationa- Jahren Prioritäthaben,wiedieEntwicklungundPro- rade indenBereichen,diefürunskommenden tieren wird. Ausbau derKooperation, von dernichtnurChinaprofi- reich anRohstoffen. fürden Das isteineguteGrundlage MarktmitgutausgebildetenMenschenund ein großer chen wirKapital, Technologie, Chinaist Erfahrungen. land. Fürdengewaltigen wirtschaftlichen Aufbau brau- dustrieland, Chinadasweltweit Entwicklungs- größte Ma Canrong:Deutschlandisteinhochentwickeltes In- tensivierung derZusammenarbeit? sehenSieneueMöglichkeitenschauen:Wo fürdieIn- indieZukunftzu Jubiläen sindauch Anlass, CC: daktionsbeirates vonChinaContact,imGespräch mitChefredakteur Peter Tichauer. Ma Canrong, Botschafter der Volksrepublik ChinainderBundesrepublik Deutschland undMitglieddesRe- Neue Perspektiven derZusammenarbeitseheichge- r tner finden und einperspektivreiches Projekthaben, tner finden gement inDeutschlandhaben. Changhong, diedurchauseinPotenzial fürmehrEnga- wieHaieroder können –imInteressevon Unternehmen hiergemeinsamLösungenfinden unsere Regierungen beitserlaubnis inDeutschlandzuerhalten.Ichhoffe, dass eine zulangeund esistnichteinfach, saerteilung Ar- den technischenNormen. Vor die allemaberdauert Vi- esgibtSchwierigkeiten mit recht istsehrkompliziert, machen.DasSteuer- dem kulturellenUmfeldvertraut inChinamit denhiesigenBedingungenund ternehmen Ma Canrong:SiemüssensichgenausowiedeutscheUn- hier vor allem? CC:Vor welchen Problemen stehenchinesische Firmen g Niederlassungenge- ben seit1980300Unternehmen InDeutschlandha- 6.200 Engagementsin160Ländern. Investitionen im Ausland gering:Essind insgesamtnur Ma Canrong:Ja. Aber nochistdas Volumen chinesischer v Wirwerden inZukunftsicherlich auch mehrIn- CC: den. in Chinagegenüber. Daraufmüssensie Antworten fin- deutsche Firmen einemschärferwerdenden Wettbewerb Gleichzeitigsehensichnichtnur ren dieUnternehmen. Ma Canrong:DerMarktwirdliberaler. Davon profitie- die Bedingungen fürdieKooperation geändert? habensich nach demBeitrittChinaszur CC:Wie WTO estoren ausChinainDeutschland sehen. ründet. Chefredakteur WirtschaftsmagazinChinaContact Das Gespräch führtePeter Tichauer 01-48 Umbr 302 19.12.2002 13:16 Uhr Seite 29

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Datum 1. Unterschrift 01-48 Umbr30219.12.200213:16UhrSeite30 30 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS and newspapers. rope, where we arepublishing morethan30magazines magazines in Asia aswell Eu- asinCentralandEastern activities by printingandpublishing newspapers and have addedtoRingier’s strengthextensive international Metalworking News for China”. Ringier ispresent atthe “Metalworking” trade fair inShanghai. The wall behindshows thetitlepage of “International production ofhig-qualityprintedmatter. bution. + And ZürcherDruck Verlag specialisesinthe fers completesolutionsinconception,designanddistri- duces over 50newspaper titles.Druckerei Winterthur of- communication media.RingierPrint Adligenswil pro- Switzerland, producesmagazines,catalogues andother thelargest printcentrein needs: RingierPrintZofingen, same understandingforcommunicationandcustomer platforms. number ofInternet landscape ofthefuturewithtelevision programs anda Italian languageareas. And we inthemedia participate newspapers French and andmagazinesintheGerman, newspaper andacolorfulrangeofotherhigh-circulation day withthecountry’s largest daily, asuccessfulbusiness for170years, andisstilldoingsoto- and entertainment Ringier hassuppliedtheSwissnationwithinformation lingual andmulticulturalpresentinallmediafields. cern. We areindependent,ofliberalorientation,multi- shop toSwitzerland’s mediacon- largest international Ringier AG hasdeveloped fromasmalllocalprinting Ringier AG:WhoWe Are Ringier –OurWorld isInformation F All ourfourprintcentresinSwitzerlandstandforthe ollowing Swisspioneers,we theexample ofthegreat defending democracy. sible, while simultaneously ourfreesocietyand serving isfy theneedsofourcustomersinbestmannerpos- dia andmulticultural.Ourtoppriorityisalways tosat- a professionalqualitytoeveryone. Networked, multime- of andinformative entertainment information tertaining content: acontentprovider. The aimbeingtooffer en- larly Europeand inCentralandEastern Asia Pacific. in Switzerlandandcontinuetoexpand abroad, particu- jectives: We want tostrengthenourleadershipposition b ofmany andconfidence thetrust sionalism hasearned ing, post-printordistributiontechnologies. Ourprofes- communication inprint,usingthelatestpre-print,print- the days ofprintproductiontogeneralcontractorsfor pers altogether. RingierPrinthascomealongway from Hungary, where we sellabout1.2milliondaily newspa- markets ofCzechRepublic, Slovakia, Romaniaand lowing year, was established tolaunch Ringier Pacific the Times Publishing Group ofSingapore.Inthefol- lished ajointventure printingplantinHongKong with ofRingier subsidiary AG. In1989,Ringier AG estab- Ringier Trade Publishing Ltd.istheHongKong-based Ringier inAsia:China–HongKongVietnam lue-chip customershereandabroad.Ourcooperateob- Ringier seesitselfasbothproducerandpublisher of T oday we arenumberoneortwo inthemedia 01-48 Umbr 302 19.12.2002 13:16 Uhr Seite 31 01-48 Umbr30219.12.200213:16UhrSeite32 32 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS guage monthly magazine. lowed by the Vietnam Economic Times, anEnglish-lan- f together witha Vietnamese in1993. businesspartner A offset– areproducedusingrotary printing. ing the Asian editionsofNewsweek and The Economist approximately 50newspapers andmagazines–includ- dustries. inalltheserapidly growingtivity in- andprofitability tions andapplicationsforimproving efficiency, produc- across Chinawithglobaltechnology transfer, withsolu- ing.com. Ourobjective istoprovide leaders industry a trilingualChinasourcingsite,www.industrysourc- w major industries–food&beverage, footwear, metal- Chinese,reachingoverplified 150,000buyers acrosssix twelve magazinesforChina,insim- specializedindustry nese. Beijing aswell asaseriesofbooksfortouristsinChi- Business,cityguidesinShanghaiand International monthly circulationEnglish-languagemagazineChina tion (MOFTEC),Ringieralsopublishes the30,000 ofForeignthe Ministry Trade &EconomicCoopera- lation CAAC Inflightmagazine.Incooperationwith Inflight Ltd.,publisher ofthe235,000monthly circu- 1997, Ringierbecameamajorityshareholderin Asia the ChineseCASHweekly newspaper inShenzhen.In ashion magazinefollowed ayear later, which was fol- orking, packaging, plastics and coating – supported byorking, packaging,plasticsandcoating–supported In Vietnam, RingierlaunchedanadaptationofCASH In theHongKong printcentreRingierPrint(HK)Ltd. Ringier Trade Publishing publishes Ltd.currently N Are you thinkingofinvesting inChina? at http://www.sofi.ch. at +41-1-2492888 Call ourexperiencedChina Team (ourteamincludesChinese-speaking consultants)inZurich eed assistance? Ringier AG,Communications Ma A F N Pr Pa inancial engineeringandsearch offunds? dvice onavailability ofSwiss Government funds? egotiation assistance? oject feasibility?Business plan? r for aninitialadvicewith noobligation.Consultourwebsite tner search andselection?Site selection? r ket entry strategy?Marketket entry research? [email protected] – – – Links – – – – Key facts – – – – – – – – – – magazinesinChina Industry www.ringier.ch www.industrysourcing.com/e-index.htm www.ringierpacific.com/english/about_us.htm million (2001) Annual turnover: CHF1063million/EURO 728 Number ofemployees: 6100 tronic media)andprinting Sector ofactivity: Publishing (printmedia,elec- Michael Ringier(53) generationby1831, now managedinthefifth Ringier isafamily owned company, established in FootwearInternational News Coatings andInkChina PlasticsNewsInternational forChina for China FoodInternational &Beverage News Ingredients for China FoodInternational Processing&Packaging News for China Package Printing&ConvertingInternational News Packaging NewsInternational forChina Mold&DieMakingNewsInternational forChina MetalworkingInternational News forChina China IndustrialReporter 01-48 Umbr30219.12.200213:16UhrSeite33 einflussen. Qi-undBlutmangel führendazu,dassdas nismus, indemsichOrgane undGewebe gegenseitig be- sogar zuhohemBlutdruck. ImschlimmerenFalldie Reizbarkeit steigert. dies führt F Qikannunter Umständeninneres kann. Dasblockierte psychische Verstimmungen undDepressionenauslösen was verursachen, Blockaden imLebermeridian weitere stungen überlängereZeitan,könnensieallmählichQi- auf. Haltensolchepsychische Anspannungen undBela- fungszustände, Energie- und Antriebslosigkeit treten bringt.Erschöp- nen Zustandder«Unterernährung» gen Qi-undBlutmangelhervor, inei- was denKörper folglich dieerwähntenBelastun- Blutes darstellt,rufen derLebensenergie Qiunddes und dieMilzdenUrsprung genfunktionen. DadasHerzdieInstanzfürBlutist, sche BelastungenbeeinträchtigendaherMilz-undMa- Herz. Schwere geistige psychi- Arbeit undübermässige sten dieMilz,psychische Anspannungen schadendem GrosseSorgen,schöpfen dessenReserven. Ängstebela- Übermässige Anstrengungen schwächendas Qiunder- Schwächung derLebensenergie Qiverantwortlich. zin (TCM)machtmanfürdiesesSyndromdie und Bewegungsarmut. psychische lang andauernde Anspannung, Schlafmangel Konkurrenz, infolgegrosser beitszeit, Leistungsdruck zu vielHektikundStressam Arbeitsplatz, lange Ar- schwerden auffolgendeFaktoren zurückzuführenseien: Gesundheit immensbeeinträchtigt. wasschmerzen, HerzklopfenundhoherBlutdruck, die B. Kopf- Schlafstörungen, kungen auftreten,wiez. r Depression. ImLaufderKrankheitkönnensogar Stö- Leistungsabnahme, psychische Verstimmung sowie Reaktionsvermögen, vermindertes trationsstörungen, k sich hauptsächlichdurchfolgendeSymptome:Müdig- der heutigenGesellschaft.DasSyndrommanifestiert Krankheitsbildin isteinhäufiges Das Burnout-Syndrom Übersetzung: Frau Huang-Oberholzer V Tr g nen. Wir haben daherdasCHINAMED ZentrumZürich V kannt, dassdieChinesenseitalters herinihrer Medizin Leere undErschöpfung überkommt. Anderseits istbe- schaffen, dasssiezunehmendeinGefühlvonOhnmacht, überflutung undunmotivierteMitarbeiterderart zu c anderen 80%,alsoeinerüberwältigenden Mehrheit,ma- aller Manager imBerufs-undPrivatlebenglücklich. Den sourcing-Akademie inBasel)fühlensich nurgerade 20% Laut neuestenUntersuchungen (zitiertvonderRes- Geissel derManager:dasBurnout-Syndrom ungen des Nervensystems sowieungen desNervensystems Herzkreislauferkran- hen Stress am Arbeitsplatz, Rezession,Informations- on Prof. QiXiaohua,CHINAMED ZentrumZürich erfahren zurRevitalisierung vonKörperundGeistken- eit, Erschöpfungszustand, Antriebslosigkeit, Konzen- ebeten, überdasBurnout-Syndrom ausderSicht der euer entfachen, das seinerseits Unruhe hervorruft und hervorruft das seinerseitsUnruhe euer entfachen, aditionellen Chinesischen Medizin zuschreiben. Der menschliche Körper istein ganzheitlicherOrga- Der menschlicheKörper Aus derSicht Traditionellen Chinesischen Medi- Im Westen dieMeinungvor, herrscht dassdieseBe- Mian, ShenMen,ZuSanLiund San Yin Jiao. Behandelte BaiHui, Akupunkturpunkte: Yin Tang, An Chrysanthemen. Eingesetzte Heilkräuter:GuiPi Tang, ManJinZiund v Die BehandlungmitHilfe Therapie: einekombinierte Blutmangel führte. Strapazen schwächtenHerzundMilz,was zuQi-und Die Diagnose:geistigeÜberbelastungundübermässige Der Pulsbefund:schwach. belegt. Der ZungenbefunddesPatienten: blass undeinwenig genügendem Schlafsowie verminderter Appetit. Schwindel, Vergesslichkeit,wie trotz Müdigkeit Träume, mehr erschöpft.ZudemtratenBegleiterscheinungen auf psychisch alsauchphysisch fühltesichderMannimmer sehrbeschäftigtundgeistigangespannt.Sowohlberuflich warund ChefeinesUnternehmens erseitgeraumerZeit ergielosigkeit undKopfschmerzen. Als Wirtschaftsführer Klaus C.,40-jährig,littseiteinemhalbenJahrunterEn- Ein Beispiel der normalisiert werden. der normalisiert Y gulieren. Damitkannder Ausgleich zwischen Yin und zure- organischen Funktionenimmenschlichen Körper und einflussreiche benutzt,umdie Akupunkturpunkte Krankheitsbild werden verschiedene Kräutereingesetzt und daspositive Qizuunterstützen.Entsprechend dem heisst inderRegel: Mangelerscheinungenzubeheben r B. Kräuter, Akupunktur,wie z. Ohrakupunktur, Ernäh- chinesische MedizineineganzePalette von Therapien, lung aufeinanderfolgenmüssen.Zusätzlichbietetdie der Sicht TCM grundlegend, dass Arbeit undErho- hends. sichzuse- Und derGesundheitszustandverschlechtert während Blutmangel Yin-Schwäche kann. verursachen zu wickeln. Qi-Schwächeführt Yang-Schwäche, Faktorensich diekrankheitsverursachenden weiter ent- Ohne rechtzeitigetherapeutischeMassnahmenkönnen B. Erkältungen,Husten, Allergien undKopfweh.wie z. anfälligfürvieleErkrankungen, geschwächte Körper oder sichungünstigauswirkender wirdder Umgebung Schadstoffe ausderUmwelt. Bei Wetterwechsel etwa K gen auf. sichbeigeschwächter Ausserdem vermindert K mitzuwenigGehirn QiundBlutversorgt wird, treten auf. treten HerzklopfenundSchlafstörungen Wenn das wird. Herz ungenügenddurchdasBluternährt Als Folge ungs- undBewegungstherapien. DasGrundrezept on Heilkräutern und on Heilkräutern Akupunktur. ang wiederhergestellt unddasQisowie dasBlutwie- onstitution die körpereigene onstitution diekörpereigene Abwehrkraft gegen opfschmerzen, SchwindelundKonzentrationsstörun- Dem Patienten wurdeausserdemRuheverordnet. Bei der Bekämpfung des Burnout-Syndroms istesaus Bei derBekämpfungdesBurnout-Syndroms (Fortsetzung nächste Seite) 33 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 01-48 Umbr30219.12.200213:16UhrSeite34 34 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS er sahgesundausundhatsichauskuriert. dem Mannsowohl psychischalsauchphysisch sehrgut; schwerden gingenzurück.Zwei Monatespäterginges des Patienten erheblich undjegliche verbessert, Be- empfohlen. Ausserdem wurdedemPatienten «Hirngymnastik« Pi ZhiXiasowie behandeltwurden. Leberpunkte akupunktur angewandt, wobei Herz-,Milz-,ShenMen, Anstatt Akupunktur wurdezudiesemZeitpunktOhr- stärkt, undauchdieMüdigkeit war zurückgegangen. W und dienächtlichen Träume nahmenab. Eineweitere Nach derersten Woche liessendieKopfschmerzen nach, oche verging undderMannfühltesichenergetisch ge- Nach einemMonathatsichderpsychischeZustand V on Prof. QiXiaohua,CHINAMED ZentrumZürich Übersetzung: Frau Huang-Oberholzer oder: www.chinamed.ch – – – – – – – W Martin-Disteli-Str. 15, Tel. 062-2970188 CHINA St.-Anna-Strasse 32, Tel. 041-2083888 CHINA Badstr. 34, Tel. 056-2104051 CHINA Rorschacherstr. 186, Tel. 071-2460023 CHINA Riedweg 3, Tel. 031-3099598 CHINA Aeschenvorstadt 57B, Tel. 061-2058999 CHINA Höschgasse 50/52, Tel. 01-3869898 CHINA eitere InformationenundAnmeldung: MED MED MED MED MED MED MED Zentrum Olten, Zentrum Luzern, Zentrum Baden, Zentrum St.Gallen, Zentrum Bern, Zentrum Basel, Zentrum Zürich, Zentrum im CHINAMED ZentruminBern. Medizinisches Behandlungsteam 01-48 Umbr30219.12.200213:16UhrSeite35 2001). sight China”(asannouncedintheSCCCBulletinNo.4, approachesledtotheambitiouspilotproject“In- plinary andinterdisci- process ofongoinginternationalization (UAS Nordwestschweiz). Solothurn The university’s Switzerland Northwestern plied SciencesSolothurn China-relatedefforts oftheUniversitythe current of Ap- This unpleasantquestionisonebasicidea,which drives SwitzerlandlostitscompetitiveWhat ifCorporate edge? and furtherChina-related efforts are ontheirway. people. Inspired bythebigsuccess,InsightChina2003 of theseminar. who contributed tothesuccess companies andofficials toall to express itsdeepappreciationandgratefulness institutions. The UAS Nordwestschweiz Solothurn likes sentative ofbothEuropeanandChinesecompanies had accesstotopmanagementandgovernmental repre- perience. This experience was highly valuable, sincethey ex-comprised anintegrative, learning interdisciplinary province), SuzhouandShanghai. The packed program tutions, andculturalsightsinBeijing,Lanzhou(Gansu the “InsightChina”passengersvisitedcompanies,insti- ganization. ideaswithconcreteandcarefulor- to combinevisionary ofProf.Dr.supervision Mike Domenghino,were able w Fachhochschule(Basel), andtheFörderverein Nord- RüfFoundationsistance andsponsorshipoftheGebert pulse ofChinaforaroundthreeweeks. With as- great Engineering, andSocial Work), measuringthecurrent dents fromthreedisciplines(Business Administration, The ambitiousprojectincluded4professorsand19stu- timethisMay 2002. its China-experience forthefirst been buildingupcontactswithChinasince1995,started The UAS Nordwestschweiz Solothurn inOltenwho has seminar Breaking newgroundswithaninterdisciplinary fe fromofficials Lanzhou,Gansuprovince, toprovide adif- involved variousmultinationalcompanies,SME’s, and and cultural situationsoftheP. R.China. The seminar of gaining aninsightintothecurrent business,social, ing onemonth,professors andstudentsused thechance r most complexandcompetitivearea, China–thisisthe Solothurn Northwestern Switzerland intothe probably Catapulting theUniversity of Applied Sciences(UAS) ag By Franc KaiserandPhilippvonBüren, Project Man- Competence The FirstShotofaGrowing Insight China2002 esult ofthepilotseminar “Insight China2002”.Dur- estschweiz (Olten),theprojectmanagers,under r After anintensive 4-day seminarinOlten, preparatory ers InsightChina 2002 entiated understanding oftheChineseculture and –H – tion aboutthefollowing complex issues: informa- plines, withtheobjective ofgainingfirst-hand created teamsmixed by studentsfromallthreedisci- ics inChina. ideaoftheseminar The interdisciplinary hottop- tookacloselookatfive The seminarparticipants sions, andunforgettablerelationships The outcome:5researchreports,deepimpres- of ChinesecompaniesforSwiss companies. f conduct theresearchaboutM&A onsite. The studyshall assistanttoShanghaiinorder Kaiser asascientific project, theUAS Nordwestschweiz Solothurn sentFranc ple Mergers and Acquisition inChina.For thisambitious ners andKTI)willbelaunched, forexam- scrutinizing jects inseveral disciplines(together withChinesepart- includes ahugevariety ofactivities. The masterplanoftheUAS Nordwestschweiz Solothurn Solothurn Nordwestschweiz Upcoming China-relatedactivitiesoftheUAS tobuildupaChineseCompetence Center.has started mindscape,UASternational Nordwestschweiz Solothurn cultural understanding.To underlineitsinnovative andin- ofbusinessrelationships, andsocial zerland interms is convinced ofChinaforSwit- oftheraisingimportance planalp, DirectoroftheUAS Nordwestschweiz, Solothurn asProf.Dr. Switzerlandstructure Northwestern Peter Ab- a massive elementoftheUniversity of Applied Sciences The UAS Nordwestschweiz Solothurn willstatedefinitely map nary Steps aheadontheinterculturalandinterdiscipli- milestone ofinterculturalunderstandingforbothparties. sentatives fromLanzhouandtheSwissdelegation seta participants. The openconversation between therepre- all expectations andconqueredthesoulsofallseminar wa andunforgettable agreat experience, the Definitely link http://www.hsw.fhso.ch/im. which canbedownloadedness reports, forfreefromthe busi- The resultsofthestudiesaresummarizedinfive – – –T ind outmoreaboutthefeasibility ofdirectacquisitions system of“Guanxi”; What Western fromtheChinese managerscanlearn In order to tackle further complex issues,researchpro- In ordertotacklefurther a “leap-frogging” throughM-business. In which dimensiontheChineseindustriesexperience clients for Western consultingcompanies;and If ChineseState-owned canbepotential enterprises to ChinaforSwisscompanies; ture theirsupply chains; r o what extend Gansuprovince gate couldbeanentry m-hearted courtesy ofthepeopleinLanzhoutopped courtesy m-hearted ow

Chinese andforeigninvested companiesstruc- 35 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 01-48 Umbr30219.12.200213:16UhrSeite36 36 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS some oftheissuesraisedin quest forsuccessfulmar- you mightface. and opportunities The studydevelops k y Hochschule Wirtschaft) inZurich–canbeofinterestto of Business Administration studentsatthePHW(Private comprehensive studyby theShanghaiGroup–agroup If you arepreparingtoentertheChinesemarket, thenthe tact listedbelow. companies arewelcomed toplacetheirneedsatthecon- in Chinaareplannedtotake placeinOlten.Interested ing seminarsforSwisscompaniesaboutdoingbusiness access totheuniversities inLanzhou. And finally, train- time, onanexchange basis,Swissstudentswillhave dents fromGansuprovince tostudyinOlten. At thesame schweiz forChinesestu- willalsocreatetheopportunity Consumer BehaviourandCommunication inShanghai Marketing AcrossCultures conferences aboutChina. itwillholdspecial Swiss companiesandinterestgroups, for sabbaticals inSwitzerlandandtoestablish aplatform w training program willagaintake placeinOlten. in1998.Nextmanagers, which June,the fifth started universitywith Chineseofficials, representatives and hold thealreadysuccessfultrainingprogram together andexperience.in expertise follow thepathofitspredecessorandclaimnew ground Preparing for apresentation attheBeijingEconomic-Technological Development Area (BDA). our company. The topicoftheirresearchproject “Mar- eting Across Cultures”issuggestive ofthechallenges elcoming Chineseprofessorsforlecturingduringtheir F theUASFurthermore, Nordwestschweiz Solothurn is The UAS Nordwestschweiz Solothurn willcontinueto In April 2003,thesecond“InsightChina”seminarwill or the first time,theUAS Nordwest-or thefirst Solothurn F Chinese state,companies,andotherinterestgroups. forward forsynergies withmembersfromtheSwissand on themapofSwiss-Chinarelationships,andislooking innovative approaches. Therefore, itisabouttoputitself ofChinaandisinspiredbyimportance unconventional, – The ShanghaiGroupoffers answers toquestionssuchas: about daily businessinShanghai. information adviceandbackground fering first-hand project ismorethanjustastudy. Itisalsoatext bookof- k Homepage: www.fhso.ch Riggenbachstrasse 16,4601Olten,Switzerland “Insight China”, Solothurn Northwestern Switzerland University of Applied Sciences students ofInternationalManagement Project managers ofInsightChinaandgraduate e-mail: [email protected] Philipp vonBüren, Fr e-mail: [email protected] Prof. Dr. MikeDomenghino, eting inforeignculturesfromvarious angles.Butthe or furtherinformation pleasecontact: The UAS Nordwestschweiz Solothurn understandsthe managers incontactwithChinese consumers? What arethestumbling blocks by faced European anc Kaiser, e-mail:[email protected] 01-48 Umbr30219.12.200213:16UhrSeite37 preneur interestedintheShanghairegion. tant key foryou successfactors asanEuropeanentre- processandthemostimpor- tions forthemarket entry e sectorsas services ing theconsumergoodsandfinancial marketing communicationinShanghaiareexplained, us- ChinaandShanghai.Consumerbehaviourcerning and generaleconomicdatacon- troduction you willfind as cultureandbusinesscannotbeseparated.Inthein- but asoundknowledge isnecessary, ofthebackground lenge. Chineseculturemay seemforeigntomostofus, Ancilla Schmidhauser Antoinette Walther, Patricia Gubler, Wenzel Sistek,DinoEbneter, (f.l.t.r. back) RaheemSheikh,Pedro Marcos, BeatSüess(front), features oftheChineseway oflifeshouldbetaken into comparable withHongKong 15years ago. The common the ShanghaiGroup. The atmosphereofoptimismis backlogtre, withagreat inthesectorsasinvestigated by are offered attractive avery market inthiseconomiccen- Europeancompanies importance. ness isofthegreatest ity towestern ofbusi- culture,anadaptationinallfacets comparison withothercities.Despiteapparentproxim- cumstances, Shanghaihasdeveloped morerapidly in cally citiesinChina.Owingtohistoricalcir- important markets inChina.Itisoneofthethreemosteconomi- Shanghai mustbeseenasoneofseveral independent services, In theareaofconsumergoodsandfinancial Key Information To – –I –H – –H –H xamples. The Grouphasalsopreparedalistofsugges- imised? Where arethedangersandhow canthesebemin- teed success? market? of Shanghai? should notbeignored, even inthe"westernised" city Chinese consumer? What Chineseculturalaspects What mediashouldbeusedtocommunicatewiththe products andservices? strategies beadaptedto Asian conditions?

s market entry inShanghaianautomaticallys market entry guaran- establish chal- businessrelationsinChinaisagreat ow ow ow

do Chinese consumers gather information about doChineseconsumersgatherinformation strong arewestern influencesontheChinese can “western” marketing andcommunication cal culture remains important todaycal cultureremainsimportant andinthefuture. America. Nevertheless, thechallengepresentedby thelo- that ShanghaiwilladaptmoreandtoEurope outside Asia. Futureprospectsallpointtotheconclusion garding thiskey market willhave consequences,also great not avoid Shanghai.Itistobe expected thatdecisionsre- markets ofthefuture.Companiesexpanding into Asia can- Shanghai) isoneofthemostinterestingandimportant preciate discretion. are adelicatematterandtheChinese(like theSwiss)ap- duct knowledge inthespotlight.Financial transactions the consumer. This placesthecompany imageandpro- sponsoring aswell asseminarswithspecialiststoreach moreonculturalandsports andreliesfar advertising publicity, thereby damagingthecompany by association. of fearsthatthesecelebritiescouldlaterdraw negative arehardlyadvertisements, usedornotatall,because magazines. Testimonials, orwell-know personalitiesin television, placards,newspapers radio,advertising and ofcommunicatingwiththeconsumerinvolvemain forms a representative Other togatherproductinformation. sumer happily engagesinpersonalisedconversation with consumer goodsinEuropealsoappliesChina. The con- be intheirmothertongue. must rope) speakEnglish,andthereforeadvertisements increasing role.Few consumers(incomparisonwithEu- be avoided inparticular. The useofChineseplays anever carefully.chosen very The useofwestern humourshould bolic meaningforChinesepeople,andthereforemustbe alwaysColours, numbers,imagesandforms have asym- status. a certain The demandforqualityisalsohigh. productsfromthewest,regard toluxury which represent demand forconsumergoods. This isespecially with true backlogChinese consumersdemonstrateanenormous Key FindingsataGlance treated indetailthestudy. account inevery businessdecision. These featuresare Bill GateshassaidthatChina(andby implication sectormakes lessuseofdirect services The financial Essentially, theclassiccommunicationprocessusedfor Email: [email protected] Bäumlistrasse 5,8404 Winterthur P Email: [email protected] Hönggerstrasse 88,8037Zürich Antoinette WALTHER mation. a shortpresentation andadditionalinfor- It isalsopossible tomeet thegroup togive paper isavailable atreasonable cost. The fullreport inPDF(onCD-Rom)oron atricia GUBLER Shanghai Group 37 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 01-48 Umbr30219.12.200213:16UhrSeite38 38 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS Managing Director, Memberof the Executive Board Susan Horvath our membersandpeople-upfrontintheback. continuously theChamberanditsactivities supporting – to themany events andthosewho lastbutnotleast,are v g 2002, Iwould like tothankallthosewho have given us Looking backtothehighlightsofChamberduring in theyears tocome. most likely becometheworld’s mainproductioncenter inindustrialproductionandhence,will most allfields thatChinaisacquiringadominantpositioninal- the fact w becoming ahubfor Asian economies. tial inpullingitsneighbouringcountriesforward asitis gr duction basesthere.Chinahasbecometheengineof orshiftingpro- ing tosourcematerialfromthecountry arerush- China alsocomesatatimewhen Japanesefirms nization. Along withthisanniversary, thesurge from cember 11th2001,Chinaenteredthe World Trade Orga- F of timesincetheMinistry invalueports forthefirst USim- December, aresettosurpass Chineseimports W States thisyear asthelargest ofgoodstoJapan. exporter maybe asagoodplacetoinvest sometimeinthefuture. w w of aracingstallion. the Year oftheHorse–,which indeedhastaken thespeed Ta ZurichLegalChapter Dear Members,dearReaders ation Week, who have contributedasexcellent speakers reat support inorganizing thememorablereat support Swiss Inno- inance began compilingstatistics.Oneyear ago,onDe- orld tolookcloserandforget abouttimes,when it as justinterestingtowatch ortoselectit thiscountry hen doingbusinesswithorinChina,itdoesnotalter o Despite thechallengesforeigninvestors encounter As anexample: ChinaisonpacetoreplacetheUnited China’s dynamicdevelopment forcestherestof ith shipmentsfromChinasurging inNovember and ke wth anditseconomicpoliticalbalanceisessen-

a few toremembertheyear 2002– minutesandtry ber’s website: www.sccc.ch The Bulletinisalsoavailable inChinaandontheCham- issue. company forfree.Look fordeadlinesonpage1ineach abouttheir Members oftheChambercanpublish articles W [email protected] E-mail: 01-4213888 Phone: form. Please contacttheChamberforoverview andorder- reasonableThe very rates2003areoutknow. advertising or giveyourcompanymoreprofile. your Chinesepotentialpartners, To Advertising Rates2003 V T W coe s National Day 2ndand3rdDay ofNationalDay LabourDay International October 2nd, 3rd 2ndand3rdDay ofLabourDay October 1st May 2nd, 3rd May 1st F F Chinese Holidaysin2003 W W W Meetings in2003 bur LunarNew Year’s Day 2ndand3rdDay ofLunarsNew ebruary 2nd, 3rd 1 ebruary ime: 10:30htill13:00h(sandwichlunch) enues andtopicstobeannouncedlater. bie www.sccc.ch ebsite: ednesday, 19November ednesday, 20August ednesday, 7May ednesday, 5February reachyourcustomers, until January 3rd2003. until January Zurich remainsclosedfromDecember 23rd2002 During theholidays theChamber’s in office Season’s Holidays Y ear 01-48 Umbr30219.12.200213:16UhrSeite39 of lifeinChina,iscounter-productive. sional perspective that doeslittlemorethancaptureslices f has reachedastagewhere Western have businesses torun sioner Pascal Lamy, amongothers, theChineseeconomy been asingle-framecaricatureofreality. 1980s andbeyond, the Western view ofChinahasoften ofthe to therealisation‘Geewhiz, they’re justlike us!’ againstahostileSovietrades inarms Unionofthe1970s Manchu movies? –theview ofChinesecadresascom- T F a newbookbyRainerThomm China inYour Hand aster and faster justtostandstill,suchaone-dimen- aster andfaster rom thementalimageofBlue Ants ofthe1950s, ricky Chineseofthe1960s–rememberthoseFu At atime,when, inthewords ofEU Trade Commis- aeaS Grancia Geneva Hageva SA Geneva Lugano: Geneva Sàrl Internegoce Geneva Geneva La GénéraleduFroid SA Chavornay Euro-Chinoise Association Amitié & CultureExchangeCenter, Branchof Beijing Degaohua Science& Technology Zurich Zug Leman CapitalSàrl Zurich Lausanne-Chavornay P Schaan Le VERTSàrl Baar Geneva: Naters Schweiz Tourismus topwork ag JJ Gallery Bern Zurich Comaudio AG Zurich Dr. Wyder,Renato Medela AG Dr. Jürg Gerster&Partner AG Bratschi Emch&Partner Grueber-Wang, Wei Zurich since September2002: New Members esa SA,Port-Franc de they willdespisetheGoat’s impracticalnature. buthe/shemustbewarecomfort, ofaDog oranOxfor successfulPigwho willkeep him/herin or afinancially not theirstrongpoint. much betterlovers thanhusbands,since practicalityis aseffeminacyis construed inmen.MaleGoatsmake oftheGoat for men,thedelicacy ofnaturethatispart gies over herfaults. This isaneasiersignforwomen than isfullofapolo- things,but starter, noradeptatfinishing that passive endurancethatdrives you mad. gets itsown way withoutforceorviolence. They have est oftimes,theGoatalways acquiresthebasicneedsand smilesuponthesheep.Even intherough- Good fortune offendedpline andarealsovery ifthey arecriticized. quick toforgive. They willnottoleratetoomuchdisci- and faults, are compassionate,understandingofothers’ cosy existence withsomeone todependon.Goatpeople are dreamy andimpracticalneedtohave asecure, peaceful characterandhatesdangerinsecurity. Goats is fullofcreativity andintelligence. This personhasa The good-natured, Goat(orsheeporram) tender-hearted 1931 *194319551967197919912003 Y f people, government andacademicsalike how officials to questions, authorRainer Thomm pointsouttobusiness from theoutdatedimagesofpast.Inaskingright converse atabasiclevel withinthreemonths. As abonus book plus4audioCDs). The coursewillenable you to will dowell toleave your linear senseoftimeathome. stand out:1.Linearlogic doesnotapply inChina.2. You ness-person who ventures intoChina. Two conclusions China), confrontingthebusi- Thomm looksatthefacts skills anrelationshipswere somethingthatisuniqueto one onthevalue ofguanxi(asifthevalue ofinterpersonal ind theirfeetinChinamissions. The Goatshouldchooseacalm,affectionate Rabbit, The Goatwoman dislikes hardship.Sheisnotaself- “China in Your Hand”isatimely quantumleapaway The bookcomeswithacourseon BusinessChinese(1 Rather thanrepeatingthesameoldmantras,suchas ear oftheGoat 39 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 01-48 Umbr30219.12.200213:16UhrSeite40 40 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS ing-up inShanghai. Cie SA(China)tohelpthelatter’s preparationofstart- aloantoLauener + project inChina.SOFIhadgranted regarding their support vide adviceaswell asfinancial SOFI isalwaysSME tothefact attheirdisposaltopro- thenhasdraw attention ofSwiss SOFI, inhisbriefing area. investment projectsinShanghaiandthe Yangtze Delta China fromsetting-upshoptodaily ofequity running hai, thengave apanoramicview abouthow tohandle (China) andProjectManagerofSwissCenterShang- operations intheworld’s mostpopulatedcountry. client entirely. This was thebasicreasontoimplement low hismainclient’s needsto China,ortoloosehismain to him,asasub-supplierhehaddecideeitherfol- to chooseChinaasinvestment hostcountry. According Lauener concentratedonthemotivation ofhisenterprise inShanghai.Mr. facility tries andset-upamanufacturing high precisioncomponentsfortoday’s high-techindus- chanical andelectronicwatches toproducingextremely forme- parts frommanufacturing Cie. hasdiversified renowned forprecisionmicrotechnologies. Lauener& ofaregion internationally is locatedintheheart produced inaccordancewithcustomerrequirementsand tive intheareaofhighquality, parts highprecisionturned from Boudry, CantonofNeuchâtel.Lauener&Cie.isac- CEO ofLauener&Cie.,afamily-owned SwissSME any theiroperationinChina. SwissSMEbefore starting ticipants thatthey mustbetaken intoconsiderationfor ferences between thetwo countriesandremindingpar- Switzerland”, openedtheconferenceby underliningdif- nese ChamberofCommerceforFrench Speaking highlytal offive competentspeakers. pants fromFrench SpeakingSwitzerlandtolistenato- ber 2002,inLausanne,attractedmorethan80partici- sponsored by “Banquecantonalevaudoise” on 1stOcto- “Chambre Vaudoise duCommerceetdel’Industrie”and F ised by the“Swiss-ChineseChamberofCommercefor ented SMEs:How toCracktheChineseMarket”, organ- Ori- A conferenceonthetopicof“SwissInternational China MarketOpentoSwissSMEstoo money you willgettokeep. just readit:work withit. themore The sooneryou start, serious aboutwishingtobesuccessfulinChina.Don’t nese businesspartners. spent ingettingtoacloserunderstandingofyour Chi- withtheChineselanguagewillbeanhourwellto grips W thewaytermines peoplethink,nottheotherway round. the 12modules. an introductiontowritingChineseisincludedineachof rench SpeakingSwitzerland”incooperationwiththe Mr. Pierre-Alain Avoyer, DirectorforFar-East Asia of Mr. NicolasMusy, DirectorofLauener+CieSA The mainspeaker was Mr. DominiqueLauener, Co- Dr. Yafei Zhang,MemberoftheBoard of“Swiss-Chi- “China in Your Hand”isauniqueresourceforanyone Recent researchhasproved thatitislanguagede- ith thisinmind, every hourthatyou spendoncoming is likely tobecomereality. in your favour, where your Chinaisnotacountry dream In caseyou cannot(yet) commandsuchsuccessfactors financing. 3) enoughtimeandsufficient 2) highandwell protectedtechnology 1) goodproductorservice tors: China ONLY ifyou arein possessionofthreekey fac- forany such“adventure”. Moreprecisely,qualified try an auto-judgementisindispensable toevaluate ifyou are investment. Beforeembarkingonyour projectinChina, process isamustforany SwissSMEcontemplatingsuch intheinvestmentfore astrictprudence decisionmaking are large andthereforetrickiertobedealtwith. There- thatrelativeals, but tothesizeofanSMEsuchproblems thesameproblemsSMEs face asdolarge multination- develop theChinesemarket, oneshouldbeaware that ing SMEandnotonly tomultinationals.However, to includ- comers. Chinaisopentoany foreignenterprise, surelyportunities exist eitherforpioneersorlate- of theworld economicpowers inthefuture.Businessop- different fromSwitzerland. Chinaislikely becomingone sion. The seminarconcludedthatChinaissomuch ber ofquestionswas raised intheensuingopendiscus- sentations madeby all conferencespeakers andanum- Chinese localpartners. contactwith forSwissSMEtheirfirst the facilities “Swiss BusinessHub”inBeijing,isoperative and one of w minded allSwissSMEsfromthisregion thatOsec’s Business Network inFrench SpeakingSwitzerland, re- transition period. bylems tobefaced any SwissSMEwhile Chinaisina by nese market fromtheoreticalandpracticalpoint-of-view America, thenfollowed suitwithananalysis ontheChi- on Speaking Switzerland”andexpert Asia andLatin “Swiss-Chinese ChamberofCommerceforFrench purchase for afullrefund. Noquestionsasked. you mayreturn Chinain Your Handwithinsixweeks of This isnoemptypromise. Ifyouare nottotally satisfied, nic.ac.nz 4 5605658Email:openmindorders@openpolytech- Private Bag 31914, Wellington, New Zealand.Fax: +64 Copies maybeordered through OpenMindPublishing, To US$ 118(Regular RetailPriceUS$158). be available toSCCCmembers for aninvestment ofonly On release inJanuary 2003, “China in Your Hand”will Special offer toSCCCMembers: orldwide network, includingnotably thenewly opened The participants showedThe participants keen avery interestinthepre- Mr. ChristianMinacci,responsible ofOsecSwiss Dr. Jean-Daniel Clavel, himselfaMemberofthe

order: drawing achecklistofstrategic andoperationalprob- Swiss-Chinese ChamberofCommerce f or French SpeakingSwitzerland Member oftheBoard Dr. YafeiZHANG 01-48 Umbr 302 19.12.2002 13:16 Uhr Seite 41

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PricewaterhouseCoopers is represented in more than 140 countries worldwide and in Switzerland in Aarau, Basle, Berne, Chur, Geneva, Lausanne, Lucerne, Lugano, Neuchâtel, Sion, St. Gall, Thun, Winterthur, Zug and Zurich. 01-48 Umbr30219.12.200213:16UhrSeite42 42 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS tains controlover accountitems,which any non-current has metallconditionsforthetransaction. SAFEstillre- approval fromSAFEiftheforeignexchange purchaser nolongerrequire ments oftrade,feesandafter-tax profit forRMBwhich meansthatpay- account convertibility’ Since 1996,Chinahasintroducedthesystemof‘current – – – – – tivities to: This government bodydealswithforeignexchange ac- State AdministrationofForeignExchange(SAFE) aw reorganized intothecentralbankandgradually moved as well asthelargest domesticbank.In1983,PBOCwas thefunctionofbeinggovernment’sperformed cashier then incharge ofnoteissuanceandcreditallocation.It The People’s BankofChina,established in1948,was People’s BankofChina(PBOC) following two organizations: with operationsinChinawillmostoftencomeacrossthe framework andbanking.Foreign investors infinance There hasbeenmuchconfusionabouttheChina’s legal China’s BankingAuthorities foreign enterprises. of Foreign Exchange(SAFE)which isincontactwithall calledtheState specialized department Administration with foreigninvestors orindividuals. However, thereisa trol oftheStateCouncil,PBOCnormally doesnotdeal is Governor DaiXianglong. foreign exchange reserves. HeadofPBOC The current in LondonandHongKong mainly formanaging China’s and 1,827county-level sub-branches.Italsohasoffices system through9regional branches,326sub-branches ries outitsday-to-day ofChina’s supervision financial auditing,IT,Internal Educationand Training. PBOC car- activities, includethe roleinthesupervisory important which areincreasinglyOther departments, playing an institutions. the foreignbanksandnon-bankfinancial which overseasment Department, thedomesticbanks, banks ismainly theresponsibilityofBankManage- ofcommercial ministrative Supervision departments. agent. eign exchange actingasfiscal andgoldreserves, markets andmanagethefor- stitutions, regulate financial in- rency –RMB, financial issuelicensesand supervise policies, issueandadministerthecirculationofcur- functions now andimplementmonetary aretoformulate authority derives fromthe1995CentralBankLaw. Its on behalfofPBOC. manage theforeignexchange ofthecountry reserves paymentdirect international andcollect statistics; eign exchange markets; proceduresto monitortheoperationoffor- formulate payments; reconcile allinward andoutward tradeandnon-trade RMB underthecapitalandsettlementaccounts; manage andmonitorallpayments andexchange of Being aministerialorganization under thedirectcon- PBOC’s isinBeijing,divided into13ad- headoffice ay

for commercialactivities. Muchofitspresentday and controlsfromSAFE. should consulttheiradviserstoavoid someofthepitfalls ranging loansfromoverseas banksordomestic loansfromRMBincome. eign currency SAFE towithholdapproval forearly redemptionoffor- tain dates. iftheborrower toexecute fails tificate draw down by cer- loan. SAFEhastherighttocancelregistration cer- SAFE includethetimelimitfordrawing down aforex ment may notbepermitted. will have toberegistered withSAFE,otherwiserepay- kind which needtoberepaidatsomepointinthefuture 1. CapitalConversion Businesses inChina Financial Issuesfor means thatany companiesoperatinginChina,whether accountconvertibility.China practicescurrent This 2. Pre-payment –A been satisfied: capital andremittanceifthefollowing conditionshave can beobtainedwithin24hoursfortheconversion of between approvalfer agreement bothparties, fromSAFE Assuming thatMOFTEChasrecognized thesharetrans- Suggestion toForeign Partner poses. of RMBfundsintoforeignexchange forcapitalpur- strictions asChinadoesnotallow automaticconversion wasThe Chinesepartner rightinsaying therearere- Problem Analysed sion approval fromtheauthorities. forthemtoobtainconver-pay inRMBasitisdifficult Chinese partner. advisedthatthey couldonlyThe partner ofthesharesto joint venture andselltheirportion A North their American clienthasdecidedtoterminate payments. require conversion, suchascapitalrepatriationandloan – – – – It isthereforerecommendedthatforeigninvestors ar- There arealsoadministrative measuressince1998for issuestorecognizeOther important indealingwith F tion ofbothpartners. posi- documents onthecurrent Other supplementary taxandothercapital-gainpayment. Proof ofprofit audited. Proof oftheregistered capitalbeingcontributed and change. Joint venture’s authorizationtodealinforeignex- fer forsharesandMOFTECapproval. or this reason, advances from head offices incashor or thisreason,advances fromheadoffices g reement between bothsharesholdersforthetrans- 01-48 Umbr30219.12.200213:16UhrSeite43 e-mail: [email protected] e-mail: [email protected] F F services inChina. andbanking than 20years ofexperience in financing This newsletter was writtenby Victor Sunwho hasmore charged forproviding theservice. only iftheborrower repays, asmallone-off feeis on theborrower, i.e.,thedepositwould bereturned wa the bank’s operatinglicense). This isaninexpensive anywhere subsidiary other group inChina(subjectto deposit andthefundswould bemadeavailable toan- a friendly bank(either domesticorforeign)toplacea scheme, which hasbecomepopularinChina. subsidiaries. loan’ This cantake placeundera‘trust their borrowings by moving cashbetween different several investments inChinawould like tominimize g tions, andthey arethereforenotallowed tolend institu- lations, foreigncompaniesarenotfinancial their overall cashposition.UnderPRCbankingregu- China have handling beenexperiencing difficulties Many foreigninvestors withmultipleinvestments in 3. Trust Loan Exchange (SAFE)’s approval. without theneedforState Administration forForeign settlement, commissions,fees,royalties anddividends foreign exchange tomake payments abroadfortrade areable topurchase foreign orChineseenterprises, documentation. of goods. andnature ofentry other relateddocumentsforport prepayment guaranteesand amount,performance may requiredifferent proceduresforthesizeof ing asanagent,etc.Localbankingregulations also isact- transaction,whether theimporter the import theproperdocumentstoauthenticate rules, ernment andisnotontheblack listforcontraveningport gov- hasthelicensetoim- tance bankthattheimporter possible aslongthey areable tosatisfytheremit- receive advance payment ofthedeal,thisis aspart onacut frtmoaydpsto oe akbroigadrcito No No depositoffundsbeforerepayment, fortemporary Amount ofwhich depositofforex bankborrowing fortemporary andreceiptof Loan andInterest Loan account: eea con o M ny utpeacut osbe u nyfrRmtacsNo No forRMB only, multipleaccountspossible, butonly forRemittances forRMBonly, cashwithdrawal allowed, only onewillbeapproved General Account Basic Account issubjecttonegotiation Repayment account No Yes forforeigncapitalcontributionandonly onewould non-capitalinward forforeigncurrency remittances,morethanone beapproved. Settlement account: Capital account: or furtherinformation pleasecontact Victor Sunat: roup subsidiaries.Frequently, multinationalswith iducia Management Consultants The group subsidiary withexcess cashcanengage subsidiary The group F F y of financing since the trust bankdoesnottake risk sincethetrust y offinancing or companiessellingtoChinathatwould like to iducia isable toassistinprocuringtherequisite con Convertibility borrowings fromabroad place. There isaupperceilingfortheamountretained Account w ould beallowed althoughapproval proceduresvary fromplaceto ciently andsecurely. ensure thattheirreceiptsandpayments arehandledeffi- v the complexity ofaccountmanagementinChina.In- modus operandi: As onecansee,thelistbelow illustrates accountorcapitalitem. current asa the natureoftransaction,whether itisclassified ment authoritiesneedtoseparateaccountsaccording posit accounts. This isbecausesince1996,thegovern- account,savings accordingtocurrent orde- classified Unlike mostothercountries,accountsinChinaarenot Account Management umentation totheremittancebank. F repatriation. to know profit theproceduresforarranging vided before10a.m.inthemorning. able toensuresameday remittanceifallevidence is pro- f tered capitalhasbeenfully paidup.Simple,isn’t it?In anditsregis- his company hasmadeanafter-tax profit to provide evidence totheremittancebankthat sufficient isoneofthem. All aninvestorprofit would have todois itemunderChina’s regulations After-tax rent account’ proval asa‘cur- isrequirediftheremittanceclassified intheiraccounts.Nogovernmentforeign currency ap- oftheirchoiceeveneign currency ifthereisinsufficient remittanceoffundsinafor- can gotoabankarrange in 1998forlackofbusiness. Today any foreigninvestor the swap centresforforeignexchange were closeddown account convertibility’, which hasworked sowell that RMB onceitisremittedbacktothehomecountry? abankwilling toacceptthe more, where would onefind outofChina. What is be restrictionsontakingprofit impression thatRMBisnotconvertible andtherewould The decisionmakers backhomeprobably areunderthe have always repatriation. aboutprofit beenconcerned F Repatriation Profit Shenzhen. F T 77 GloucesterRoad,HongKong 22/F Fortis Bank Tower inHongKong:Main office act, we areaware ofaforeignbankinChina,which is el: (+852)25232171,Fax: (+852)28104494 estors should discuss with their financial advisersto estors shoulddiscusswiththeirfinancial oreign companies,consideringinvestments inChina iducia isable toassistyou insubmittingtheproperdoc- iducia has also Rep. Offices inBeijing, Shanghaiand iducia hasalsoRep.Offices In general,thereare6typesofaccountswithdifferent A co-operative butaninvestor bankisimportant, needs Since 1996,Chinahasintroducedasystemof‘current 43 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 01-48 Umbr30219.12.200213:16UhrSeite44 44 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS e strategically veryimportantdecisionsthat needoptimal e ofthecorrectThe definition candidateprofile orthe cially inacountry likethePeoples Republic ofChina. on thechoice oftherightmanagement personnel. Espe- The entrepreneurial decisively depends successofafirm How toMaketheRightStaffingDecisionforChina Expatriate orLocalManager? be very demandingwhenbe very searchingforthebestcandi- ences (foreigners/Chinese)which allows acompany to with various andinterculturalexperi- profoundindustry provides enoughexcellent managersofallnationalities T ditionally toyour own company’s experiences: /employment,and thereforesuccessfulrecruitment ad- skillstoensureaprofessional a listofthemostimportant profound localmarket knowledge atonce?Seetherefore managementteamaswell asthe with theheadoffices market indicatorsaremissing. important given areoftenignored. andlocalconcerns Also here, wherecommunication madeby tasks are theheadoffice parties. oftenresultsinonly oriented The reporting fact need sincethereisnoconstructive dialog between the able toproduceorselltailor-made tothelocalmarket ments permanently arise. The localbranchthereforeisn’t ager doesn’t work smoothly anddifferences andorargu- andthelocalman- munication between theheadoffice w control” andtheknow-how transferisguaranteedand w sightful analysis. They provide feedbacktotheheadoffice and follow ordersinsteadofproviding theirown new in- and early enough,butawait decisionsfromtheheadoffice intheirlocalmarkettrends andthebusiness objectively managerswho arenotable tosee cause ofunqualified Most oftheJoint Ventures orinvestments be- inChina fail managementsysteminsteadofthelocalmarket. offices result inaway moretothehead thatthenew managerfits process toonly might oneside.Otherwise,therecruitment critically evaluated toobeforerestrictingtherecruitment cultural managementabilityandprofessionalismhastobe agement, theanalysis of theheadoffice’s interms inter- k intercultural know-how transfer, communicationandmar- ofthemanagerabroad.Sinceintercontinentaland profile search strategy foracompany shouldnotonly focusonthe According toSwiss-ASIAHumanResourcesLtd.,the decision. companies how tomaketherightstaffing fe Swiss clients tothehighly interested audience andof- their experiencetogether withtwo oftheirChinabased ber 28th,Swiss-ASIAHumanResources Ltd.provided valuation andexperience. valuation ofamarket orientedsalarypackage are et knowledge arefundamentalforsuccessfulglobalman- dy thehumanresourcesmarket especially inChina oday’ orks well. market indicatorsaremissing. Butimportant ho createstheimpressionthatbranchabroadis“in r How thentocombinebothelements,thesuitability But ofcourse,thereisalsothesituationwhere thecom- At thelastChamberevent held inZurich onNovem- ed businessorientedevaluation criteria’s toenable age. This isbasedonthefollowing criteria’s: question how therightcompensationpack- todetermine Selecting therightindividual automatically leads tothe The MoneyIssue T cially, sinceitisnoteasytocategorize theSingapore-, “Expatriate orLocal”isnotrelevant anymore. Espe- date. Taking inconsideration,thequestion allthesefacts ev matically expatriates. Butbecauseofmoney reason, and work inChinaformorethan15years arenotauto- W people comingbackfromabroad.Ontheotherhand mainland Chinamarket. forChinese The sameistrue “abroad Chinese”arenotnecessarily suitable forthe China experienced companies know well very that aiwan- orHongKong-Chinese asexpatriate orlocal. estern managerwithfluentmandarinskillswho liveestern erybody likes tobecategorizederybody asanexpatriate. Package: Main Criteria’s whenEvaluatingaSalary –A – – – – www evaluationan onlinesalary toolon: Swiss-ASIA Ltd.provides interestedcompanies – – – – – (permanent oradinterim). (permanent Length andtypeofemployment (ISO),etc.). targets tofulfill ing, specific management (turn-around, etc.),sales/market- Responsibilities (teamleading,P/L,overall andcountry. industry Experience inparticular from pastemployments. Similarity ofresponsibilitiesandexperiences Educational background. Language skills. etc.). conditions athomeorlocal(living standard, Market orientationingeneralcomparingto Age. stock options,etc.). flights home,holidays, relocationexpenses, (housing,company car,Other benefits annual program. dditional bonuspayment. Socialwelfare .s wiss-asia.com/salar y_inde x.htm 01-48 Umbr30219.12.200213:16UhrSeite45 w point presentations) from theSwiss-ASIA’s homepage More information canbeseenordownloaded (Power- and CompensationStructuring. ag cultural Assessment, Strategic HumanResources Man- search, SelectionandDevelopment Assessment, Inter- Seoul). The following servicesare offered: Executive strong presence in Asia (Shanghai, Tokyo, Singapore and ternational HumanResources ConsultingCompany with Swiss-Asia HumanResources Ltd.isaSwiss-basedIn- Note: ness behavior andlabormarket ingeneral. ference tothe Western world regarding knowledge, busi- within afew years fromnow, therewillbenearly nodif- rapidlying very andcompetitionisgrowing. Itmeans, ager today isnotanymore fromours.Chinaischang- far Asia. an unforcedlossbecauseofthetightfamily bondsin school fees,MBA’s, etc.Suchitemswillmostly prevent providing for i.e. housing,healthinsurance,support it couldbehelpfultotake carefortheirfamily by second lineinplace. To keep goodmanagersonboard, competitor. Therefore, itisrecommendedtohave a low themtothenew employer who isoftenthemarket themajorityofhis/herpeoplewillfol- has tobefired, and nottothecompany. Ifamanagerquitsthejobor network. Chineseemployees areloyal totheirmanager ployment issue. andresultinanexpensivecould bequitedifficult em- ting work andsolvingtaxissuesfor“foreigners” permit ing aSingaporeorHongKong Chinese.Inaddition,get- eigners too.Specialattentionhastobegiven when hir- politeandexpectChinese peoplearevery thisfromfor- in considerationthecultureof“keeping uptheface”. some words. However, ithelpsalotwithinsocialcontactstoknow thelocallanguageisnotamust. nese culture.Learning aw petence, willingnesstocombinethebestofbothworlds, intheChinesemarket. success factors ofthefollowingpoints. Bothstressedtheimportance these Schürch andHeinzHochstrasseralsoconfirmed client andmanagerialviewpoint sharedby Hans Ruedi pected work progress. The practicalexperience froma manager”. Notforthemoney issueandnotfortheex- eral, don’t focusonemploying an“expatriate oralocal newWhen recruiting managementorkey-staff ingen- Summary hile visiting:www.swiss-asia.com However, level thesalary foranexcellent localman- issueisthesocalled“guangxi” Another specific In caseofalocalChinesemanageritisessentialtotake These areincaseofa Western Expatriate:socialcom- ement Consultancy, Outplacement,SalaryEvaluation areness tobeaguestandwillingadapttheChi- www.swiss-asia.com/selection.htm interview questionnaire oranonlineselectiontoolon: Swiss-ASIA Ltd.canprovide interestedcompanies an –T – –G – – –K –P –K – – –E – –G – – Key Requirements: – –E – Self andMarketAnalysis: –L Criteria’s toAvoid: public image inthelocalmarket. rate structure). suppliers, government network, etc.). enough withthelocalmarket (clients, Not familiar quarter, peersandsubordinates. Strong inestablishing localbusinessnetwork. future risksandopportunities. Indepth knowledge ofthelocalmarket, including headquarter. philosophy andmentality. tional /interculturalmanagement. Lack ofsystematicadditionaltrainingininterna- Known todelegate ingeneral. difficulties delegationRisk offalse (interculturalbased). the new market environment. work-flowdefined processafterawhile toadjust on Smooth communicationwiththeHQ. company localmarket acceptance. tofacilitate leadership qualities. Easy toestablish senseofauthority. Displaying both cultures. in developing businessandmaintainingitthrough business understandingandpractices.Experience Ability tobringin Western aswell aslocal Asian ing process. toisalsoinvolvedager hastoreport intherecruit- son fromthemanagementteamnew localman- process.Ormake sure,thatthekey-per-recruitment Head Asia orDirector Asia (who lives abroad)inthe teria’s toavoid. Ifexisting, involve theresponsible ity, characteristics/personality, cri- etc.)anddefine key requirements(skills,interculturalabil- Define theprofile. and pragmaticwhile defining Av and thereforemarket orientedcandidatesprofile. atailor-madeneeds carefully tobeable todefine managementteamorkey-person.quarters agement experience /understanding ofthehead- Analyse interculturalcompetenceandglobalman- ositive impactontheimageasaninternational o high costs (salary package doesn’t fit tocorpo- package doesn’to highcosts(salary fit f v imited flexibility theown when restructuring once ood forgovernment relationshipbuildingand nown culturalbasedconflictsbetween thehead- nown lackofsmoothcommunicationwiththe ood understandingofcompany’s globalbusiness fective communicationwithlocalstaff. aluate thelocalmarkets (products,environment) oid bringingpersonalpreferences.Beobjective 45 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 01-48 Umbr30219.12.200213:16UhrSeite46 46 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS – – –i – ev shouldbe duct choice.Productsand/orproductgroups anumberofcriteriainvolvedtant todefine inthepro- ofglobalsourcing,itisimpor- productsaspart Eastern FarIn ordertoarrive atamanagementdecisiontoimport Criterias forFarEasternImports by Switzerland locatedinCentralEuropeandsurrounded on nies oneshouldindicatesomebasicinformation efforts toEurope. port When mentioningSwisscompa- also ofassistancetoFar companiesintheirex- Eastern ofprocedureshelpfulwhich may pattern a certain be suitable Far productsthewriterhasfound to find Eastern In themany years ofassistingmostly Swisscompanies Switzerland, AttractiveforOverseasSuppliers? Swiss orEuropean buyer. ing therightFar Easternpartnerandvice-versa theright ag contacts.Ithasbeenprovencan happenduringthefirst ern businessassociateswhat kindofmisunderstandings porters, italways amazedtheauthorandhisFar East- vious totheexperiencedSwissimporters andChineseex- Swiss Market? proach SMEbuyers inthesmallbuthighly industrialized suppliers andap- andhow ChineseExporters canfind How Swisscompaniesgo about tolocateFar Eastern How toTackle theSwiss Market Far EasternSuppliers markets. that they canalsosuccessfully enterotherEuropean sell theirproductsinSwitzerland, thereisagoodchance cellent testmarket. Iftheoverseas supplierssucceedto high qualitystandardsandrequirementsmake itanex- USA andFar countries. Eastern At thesametime e the world market. Itisthereforeconsideredanattractive uct perinhabitantinUS$,namely 33,464(in2000)in domesticprod- USA andJapan,oneofthehighestgross with themajorEuropeanmarkets, ithasbesidesthe in China. 7 Millionpeople.Lessthananumberofthelarge cities tal surface areaof41,284km tal surface xport market foroverseasxport suppliers,especially fromthe aluated in terms of: aluated interms costs versus sold. Europeanproductscurrently the Far East,hencecomparing Far product Eastern from directimports of volume that justifies definition range; products thatwillenhancethe current considering theintroductionofnovelties andnew possible costadvantages; While someoftheremarks inthisarticle willseemob- While Switzerlandisasmallmarket incomparison ain andagain thatgood preparation isvitalinlocat-

mproving markets; salesinthehomeandexport Germany, France, Italy andLiechtenstein.Ithasato- 2 with apopulationofsome –F – – – be: tacting Swissbuyers and/oranswers toinquiriescould managementconsiderationsbeforecon- Chinese export Products SuitabletoImportfromtheFarEast (Cross-Selling). low andpossibly otherproducts canbeintroducedaswell product purchasedwillsellwell, orderswillfol- further must really beofthesameappearanceandquality. Ifthe the Postage). Ifapproved, theorderedandshipped goods duction samplesmustbesubmitted(e.g.charging only T w quality ofsuchsecondlinesmustbeacceptable tonotethatthe stores andDIYmarkets. Itisimportant ucts offered by othersaleschannelssuchaschain compete onthemarket placeagainstlower pricedprod- China isoftentoestablish asocalledsecondlineto products. supply markets ofKorea, Taiwan andJapanoffer suitable andthereforetheFaring isnotthemainfactor Eastern ducts ormedicalequipment,experience shows thatpric- Italy. countriessuchasGermany,or surrounding France and ity isthengiven productsrighthereinthehomemarket European productsandtherefore,thepurchasingprior- tained e.g.in Taiwan andJapan, thecostsaresimilarto products. While mostoftheseproductscanalsobeob- China atfavourable costsversus equaltypesofEuropean frommainland low canbeimported for“easyservicing” goodsthatnormally al- kinds ofhousehold-andsporting items, handtools,gardenandautomotive accessories,all The socalled“non-problematic” productssuchasDIY- – – rade. hether soldby theprofessionalmarkets ortheDIY of great importance. of great products thatnormally allow are for“easyservicing” The highqualitystandardseven on“non-problematic” product involved. Accepting reasonable quantitiesdependingonthe Remembering thesmallsizeofSwissmarket. Once documentationandpricingappearinorder, pro- Another reasontochoseproductsfrommainland When itcomese.g.toprecisiontools,electronicpro- than thesameproductspurchasedinEurope. man bordertown) basisshouldbearound25–30%less China Port, CIFEuropePort orCIFBasel(Swiss/Ger- Remembering thatthepricingwhether onaFOB suitable SwissImporter. ofalongrangecooperationwith Thinking interms is, what kindofdistributionnetandset-upisinvolved? givenTherefore thelegitimate productfield. question wholesaler,and important and/orretailerina importer inding outifthepotentialSwisscustomerisaknown 01-48 Umbr 302 19.12.2002 13:16 Uhr Seite 47 01-48 Umbr30219.12.200213:16UhrSeite48 48 BULLETIN 3/02 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS the offer. livery pointstobeincludedin timearealsoimportant clearance expenses involved. Sample charges andde- 7,000–10,000 tojustifythefreight costandcustom involve aminimumordervalue ofaroundUS$ fromtheFarmembering thatdirectimports Eastshould insurance andfreight). or inthecaseofSwitzerlande.g.CIFBasel(CIF=Cost, China Port (FOB=freeonboard)orCIFEuropeanPort to indicatetherequireddelivery suchasFOB terms ing initially fortheircompletedocumentation. inquiriesinEnglishtoseveralforward suppliersask- first Having decidedontheproductsofinterest,onecannow Requesting ProductInformationandFirstOffers –T –O – be madeat: now tolookforpotentialsuppliers.First contactcan start Having preparedthebasisasindicatedabove, onecan in China Locating SuitableSupplyandBusinessPartners – – – following qualifications: the fulfilling structure person orpurchasingdepartment mainland Chinasuppliers,onehastobesurehave a In preparationofthecontactswithFar and/or Eastern Requirements forPurchasingDepartment –F – One shouldalsomentiontherequiredquantitiesre- quotations,itis important Besides askingforspecific interest andpotentialsuppliers. rope offer awealth ontheproductsof ofinformation China, Taiwan, Japanand others. a large attendanceofFar countriessuchasP.R. Eastern many relatedproducts. usuallyThese tradefairs have tools, DIYproductsandproducersofhardware and many which covers awhole rangeofhandandmachine Hardwarethe International Show inCologne, Ger- athomeandabroadsuchas tradefairs International of considerable importance. ties tocommunicateeasily withFar peopleare Eastern contactcapabili- Social competenceandinternational inaprofessionalmanner.arrangements quality productrequirementsandpurchasingcontract technicalandlegal know-howSufficient todealwith ing. English languagecapabilitybothverbally andinwrit- the requiredaddressesofFar suppliers. Eastern nese industrialregions canalsobeofassistance. e.g. inBeijing,Shanghai,GuangzhouandotherChi- forwardersInternational andSwissbankswithoffices toSwitzerland. type ofproductstobeexported ofthe importers outaboutspecific tofind good start business hubslocatedatthesamepremise,couldbea General ofSwitzerlandinShanghaiortheosecSwiss the EmbassyofSwitzerlandinBeijing,Consulate or example, locatingsuitable Swissbuyers through rade publications andwebsites alsooffer onInternet ff icial trade offices inthemajorcitiesallovericial tradeoffices Eu- Email: [email protected] Switzerland I. Gewelbe, CH-4020Basel F for moreinformation. inthewasteand information basket ordecidingtoask quicklyand thendecidevery whether todropthe letter unsolicitedletterwithproductinformation look atafirst tion etc.).Inthesamemannerandeven moresohe will communica- and straightforward approach inthefirst in general(toreadbetween thelinesifthereisadynamic replies hereceives fromChineseandoverseas exporters lationship. sure ofbeingontherighttrackforagoodbusinessre- points mentionedabove canberecognized, onecanbe approach aswell andclearrepliesonthevarious asfast relationship.Ifadynamicandpositiveof along-term ing withtherightkindofFar inthelight partner Eastern for example, onewillgetabetterfeelingifisdeal- knows thesuppliersfrompersonalvisitsattradefairs able. business cooperation,thenthesecostswillbereason- sometimes excessive. Ifthereisaseriousinterestin tion, onehastokeep aneye onsamplecostswhich are too large forasmallmarket like Switzerland.Inaddi- F USA orthelarger Europeancountrieslike Germany, quantities which many timesapply tomarkets like the One shouldparticularly notetherequiredminimum quotations what kindofsuppliersoneisdealingwith. W Replies: forBusinessortheWaste Basket? etc. andrequestforoffer inquiry buyer inviting aspecific mentation andintroducetheproductstoprospective contactlettertosendsomedocu- appropriate inafirst for “MaterialHandlingsEquipment”etc.Itiscertainly jing, we notedyour nameandaddressasawholesaler made suchaswhen visitingtheSwissEmbassyinBei- an offer remark moreseriouswhen there isareferral ing received. SwissCompanieswillbeinclinedtotake answers andemailwhen with,fax arebe- thefirst start contactscanbemadeby to are known, airmail thefirst or furtherinformation pleasecontact: rance, UKandItaly. The quantitiesarethenmostlikely The Swiss importer iscarefullyThe Swissimporter analysing thekindof As soonasonehasmorecontactsinwritingand Once theaddressesofpotentialbuyers inSwitzerland ith the first reply onecanalreadyrecognize fromthe ith thefirst