/7November 30 2/07 Deadline fornext issue: www.sccc.ch on website Conditions available Advertising: www.werkzwei-konstanz.de Tel. 0049/7531/999-1850 Switzerland CH-8280 Kreuzlingen P. O. Box 2171 Konstanz GmbH Print +Medien werk zwei Printing: Website: www.sccc.ch e-mail: [email protected] 89 38 421 / 044 Fax 88 38 421 / 044 Tel. Switzerland CH-8008 Zurich Höschgasse 89 ber ofCommerce Swiss-Chinese Cham- Managing Director Susan Horváth, Responsible Editor: China. land, Europeand Commerce inSwitzer- leading Chambersof ment Departments, ganizations, Govern- ToOr- firms. Trade surances andindustrial trading companies,in- the leadingbanks, Shanghai; amongthem Lugano, Beijingand Chapters inGeneva, Chamber andofthe To theMembersof Ex. andonwebsite. In printapprox. 1’500 Circulation: Commerce Chinese Chamberof Bulletin oftheSwiss- Information Publication: Impressum rdtoa hns eiie(C)79–82 73–74 72–73 60–62 78 74–77 62–65 66–67 68–71 Communications 44–46 40–42 Traditional ChineseMedicine(TCM) 58–59 Swiss GuideforChinese Visitors; Pop-up Switzerland Investing inEurope;ChinaFact Finding Mission2007 Chinese CompaniesGoInternational 52–56 57–58 China Abroad 47–50 32–34 Forum onChineseBusinessLaw Revision onM&ARules, M&AinShanghaiRegion Various News Short onLegal Developments China’s New Franchise Regulations China’s New Tax Law Legal Matters 36 Employee Retention;Home,Sweet Home? More NotFewer ExpatsareNeeded;H&R Trends 12 Swiss-China HumanResourcesManagement Human Resources 18–30 37–38 Successful BusinessDevelopment inChina The 36Strategies from Learning Asia 13–17 10–11 Business Matters 6–7 Hong Kong atBaselworld 2007;10th Anniversary ofHandover 8–9 CEPA-Update between ChinaandHongKong 2006 Economic Report Hong Kong –MayAnnual EconomicReport 2007Update Economy On theRoadtoExpo2010;SwissPlanFacilities China Environment &Research New ConsulGeneral;New SWISSServices Wirtschaftsmission nachChina;ChangesatSECO General Assembly; New Members;New Book Chamber News Editorial Board oftheChamberanditsChapters ebrhpCr aus20 112 110–111 108–109 94–97 86–88 104–107 93–94 Membership Card 98–103 Values 2007 82–85 Useful ContactsinChina&Switzerland Services Classic CarRally HongKong –Beijing Chinese Mid-AutumnFestival; IFA in Beijing;RADONews By MagicalHands; Tao HuaShan; Buddhawith1000Hands Culture &Leisure 89–92 Trip oftheSchoolManagementtoChina New SwissReStudy;PlasticsKnow-How atGF News fromMembers News &Infos:ChinaSwitzerland;SuccessfulCommunications Fast IP LinksfromEuropetoChina Project onMultilingual Typography Contents 2–3 5

1 CONTENTS 2 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BOARD Susan Horváth Managing Director: Wolfgang Schmidt-Soelch Secretary: Schmid Peter R. Treasurer: Richard Friedl Dr. Vice President: Kurt Haerri President: Members: Executive Committee Board oftheSwiss-ChineseChamberCommerce Maurice Altermatt Board Members: ErwinSchurtenberger Dr. Members: Honorary Theobald Tsoe ZiuBrun Dr. Members: r Jörg Wolle Dr. van Berkel Thomas P. Lukas Utiger Franziska Tschudi Marco Suter Sulzer Peter G. Stirnemann Kurt E. Dr. Senn Erwin A. Schläpfer RalfC. Dr. Thomas Schelling Stefan Scheiber Jürg Reichen Nicolas Pictet Gregor Kündig Dr. BeatKrähenmann Dr. Furrer Bruno W. Ester Crameri Jean-Michel Chatagny Lore Buscher Marc Ronca Dr. UliSigg Dr. EstherNägeli Dr. Kurt Moser Dr. Jetzer Alexandre F. Christen DanielV. Dr. CEO, DKSHHolding Ltd.,Zurich Swiss ReinsuranceCompany, Zurich Head of Asia, MemberofLife&HealthExecutive Board Asia (LA), Swiss-Hong Kong Business Association, Zurich Swiss-Chinese ChamberofCommerce, Partner, Zurich Heidrick&Struggles, Head Executive Relations,CreditSuisseGroup,Zurich Vice President, ABB Switzerland, Baden Member oftheExecutive Committee,SchindlerElevators Ltd.,Ebikon President, Nitrex Ltd.,Zurich Vice President,LonzaLtd.,Basle CEO, Wicor Holding AG, Rapperswil Zurich UBS AG, Chief CreditOfficer, MemberoftheGroupManagingBoard, Zurich oftheExecutiveChairman CommitteeofGeorg Fischer AG, Schaffhausen Worldwide Transportation Engineering,Freienbach CEO, ALSECO (Holding)Ltd./T-Link ManagementLtd. Partner, HeadStrategy Advisory, PricewaterhouseCoopers, Zurich Vice President, NestléS.A., Vevey Bühler Managing Director, SalesandServices, International AG, Uzwil Zürcher Kantonalbank,Zurich Banking, MemberoftheBoard,Head International Partner, Pictet&Cie.,Geneva Member oftheExecutive Board, economiesuisse,Zurich Director, F. Hoffmann-La RocheLtd.,Basle Consultant,Steinhausen CEO, Furrer BFBruno Sprüngli AG,Confiserie Zurich Federation oftheSwiss Watch Industry, Biel Head ofExternal Affairs Department, Past PresidentofChamber, Zurich Attorney-at-Law, Counsel,Schellenberg Wittmer, Zurich,Geneva Swiss former Ambassador toChina,Mauensee Swiss former Ambassador toChina,Minusio M.,Nägeli Attorney-at-Law,Attorneys-at-Law, LL. Zurich Directorofeconomiesuisse(VORORT)Küsnacht, former Member oftheBoardDirectors,Novartis AG, Basle CEO,Zurich AssetisAG, Attorney-at-Law, studiolegale enotarile,Lugano Brun Frankfurt amMain,Germany Hong Kong Trade Development Council(HKTDC) Regional Director, Europe, Central& Eastern Maître PhilippeKnupfer Chairperson: Legal ChapterGeneva EstherNägeli Dr. Chairperson: Legal ChapterZurich Francesca Wölfler-Brandani Silvio Tarchini Nicola Simoneschi Walter Landolt Andrea Fioravanti Bloch Renato L. Executive CommitteeMembers: Theobald Tsoe ZiuBrun Dr. Chairperson: Ticino Chapter Yafei Zhang Jean-Luc Vincent Nicolas Pictet Müller Irmgard L. Christen DanielV. Dr. Christophe Borer Board: Bernard Büschi Treasurer: Gérald Béroud Secretary: Maître PhilippeKnupfer Vice President: André Übersax President: Geneva Chapter rsdn AndréÜbersax www.sinoptic.ch/scccgeneva/ +41-22-31037 10 [email protected] Monday–Friday, h 9.00–12.00 For fulloverview ofusefulcontactsinChinaandSwitzerland turntopages 110&111inthisissue. +41-22-3102710 President hours Office Website E-mail Fax Phone 1204 Genève Kurt Haerri www.sccc.ch 4, bddu Théâtre +41-44-4213889 [email protected] Section Romande Chambre deCommerce Suisse-Chine +41-44-4213888 President Website E-mail Fax Phone CH-8008 Zurich Höschgasse 89 Swiss-Chinese ChamberofCommerce Here forYou inSwitzerland: ayr L M.,Pictet&Cie.,Geneva Lawyer, LL. M.,Nägeli Attorney-at-Law,Attorneys-at-Law, LL. Zurich Founder, CentroCulturaleCinese“IlPonte”, Lugano Founder, FoxTown Factory Stores,Mendriso, Villeneuve, Rümlang Director, TREINVEST S.A.,Lugano-Paradiso Attorney-at-Law, Lugano Attorney-at-Law, Peter Studiolegale SganziniBarnasconi Gaggini, Lugano Attorney-at-Law, BlochLaw Lugano Offices, Attorney-at-Law andNotary, BRUN Studiolegale enotarile,Lugano Assistant deDirection,ShanghaiOverseas, Geneva desInventionsPresident, SalonInternational deGenève Partner, Pictet&Cie.,Geneva Director, Beau-Rivage Palace, Lausanne CEO,Zurich AssetisAG, LémanCapitalSA,GenèvePartenaire, A.,Geneva Büschi&Cie.,S. Bernard Chairman, Director andfounder, SinOptic,Lausanne M.,Pictet&Cie.,Geneva Lawyer, LL. Director, ChamberofCommerceinFribourg a +41-58-32329 50 [email protected] Maître PhilippeKnupfer +41-58-323 19 03 Chairperson E-mail Fax +41-43-3439201 [email protected] Phone Dr. EstherNägeli c/o Pictet&Cie.,Geneva +41-43-3439993 Legal ChapterGeneva Chairperson E-mail Fax +41-91-9133914 [email protected] Phone Brun Dr.Ziu TheobaldTsoe c/o Nägeli Attorneys-at-Law +41-91-9133911 Legal ChapterZurich Chairperson E-mail Fax Phone CH-6901 Lugano Case postale5251 6 Via Ariosto StudioLegale eNotarile c/o Brun Section Ticino Camera diCommercio Svizzera-Cina

3 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BOARD eZdeaZ iZX]cdad\n XjhidbZgkVajZ L^cc^c\

>ciZgcVi^dcVa8dbbZgXZ8ZcigZ!=dc\@dc\ ÄdcZd[i]ZldgaYÉhiVaaZhi Wj^aY^c\hl^aa]VkZadc\ZgZaZkVidgh]V[ihi]VcVcnZm^hi^c\Wj^aY^c\^ci]ZldgaY# L]Zci]ZYZkZadeZghd[=dc\@dc\ÉhcZlaVcYbVg`lZgZadd`^c\[dgi]Zg^\]i eZdeaZVcYiZX]cdad\n!i]Znejii]Z^gigjhi^cHX]^cYaZg#LZViHX]^cYaZgVgZ egdjYid]VkZWZZchZaZXiZY[dgi]^hegZhi^\^djhXdcigVXiidhjeean&('ZaZkVidgh VcYZhXVaVidghÄ^cXajY^c\_jbeZaZkVidghi]ViVgZadc\Zgi]VcVcnegZk^djhan ^chiVaaZY#>i^hVc]dcdjg[dgHX]^cYaZgVcYVl^c[dgi]ZeZdeaZVcYWjh^cZhhd[ =dc\@dc\# lll#hX]^cYaZg#Xdb our website: www.sccc.ch. developments kindly to turn recent publications orlegal basic addresses,events and days. activities andsummer holi- will beclosed, duetomoving 17th theChamberinZurich From July 16thuntil August Vacation Summer www.sccc.ch [email protected] +41-(44)-4213889 [email protected] Fax +41-(44)-4213888 Phone CH-8008 Zurich the same: all othercoordinatesremain (before 83) Höschgasse 89 at new premises. Association (SHKBA) willbe Swiss-Hong Kong Business Commerce (SCCC)andthe Swiss-Chinese Chamberof As of August 1st2007the Moving Notice For generalinformation, President Kurt Haerri Swiss ties. forthefutureSino- eral CouncillorDorisLeuthardisoftremendousimportance forSwitzerland. is crucial That’s why theChinamissionconductedby ourFed- levels ofgovernment. Finding ways togobeyond what othercountriesaredoing the western culture. business sonal friendshipratherthancommonly sharedsocialvalues aswe areusedtoin evolves.the foreignone,untilarelationshipoftrust Trust isbeingbuiltonper- transactions inChinaresultfromcarefulcultivation by oftheChinesepartner many negotiations. misunderstandingsduringbusiness Virtually allsuccessful commercial transactionswillfollow. These different approachesoftenleadto and,prospective shouldbuildarelationshipfirst ifsuccessful, businesspartners cessful, arelationshipwilllikely ensue.However, theChinesebelieve that Chinese feelmuchmoreobligated withtheirfriendsfirst. todobusiness the conditiontoconductbusiness,networks inChinahave as anotherpurpose, networks clubs–arewellforming –e.g.service acceptedby thesocietywithout tal onthepathtogood“Guangxi”. While inthewestern world socallednon-per- fairly couldresultinagoodrelationship.Following throughonpromisesisvi- based onmoney. Treating someonewithdecency while otherstreathim/herun- beforeanyChinese partner businesscantake place.Itdoesnotatallhave tobe relationship meansthatwestern companieshave toestablish friendshiptothe inthewesternfrom doingbusiness world. Butinreality, thestrongrelianceon ple they know thisdoesnotseemtobemuch different Onthesurface, andtrust. how businessisestablished. For example, theChineseprefertodealwithpeo- The Chineseculturediffers fromthewestern cultureinmany ways, including extend thedemandfor“space”inouralreadyoverloaded agendaslikely willbe. what themeanwhile quitefashionable word “Guangxi”really meansandtowhat ness withandinChina.ButIdoubtwhether we foreignershave clarity sufficient would acknowledge relationshipsisakey thatbuilding indoingbusi- successfactor Doubtless, everybody who hasbeenexposed toChinesebusinesscultureso far a gooddialogue withtheChineseGovernment. strengthenestablished linksandmaintain andfurther tradepartner an important our futureendeavours China. withCorporate This willreinforceourpositionas state visitalreadyduringherinitialyear inoffice. This isamostvitalstepforall strengthen economictiesandrelationshipwithChinaby meansofconductinga Leuthard, ournewest memberoftheFederal CouncilofSwitzerland, will It hasbeenextremely well perceived by many leaders,thatDoris Swissbusiness Beyond theworld ofbusiness,it ismostcriticaltobuildrelationshipswithall Westerners transactionsand, normally gostraightforbusiness ifthey aresuc- Relationships The Cultureof

5 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE EDITORIAL 6 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS economiesuisse, Gregor Kündig regarding theBoard. The Chamberwarmly welcomes approved theaccounts,thisyear’s andthe changes budget the ing DirectorSusanHorváth, Assembly unanimously asPresident. timeinhisterm first Executive CommitteeofSchindlerElevators Ltd.,forthe merce (SCCC)was leadby Memberofthe Kurt Haerri, The General Assembly oftheSwiss-ChamberCom- inthisBulletin (pages 40–42). articles cluding itshistoricalcontext. For detailswe refertothe readers who really want tounderstandChina today, in- neue Weltmacht” Schoettli presentedhisnew bookentitled panel discussion,closedwithabookpremière:Urs ETH inZurichonMay 3rd. The seminar, followed by a bilateral Chambersandguestsattendedtheevent atthe ment ofForeign Affairs (DFA) andMembersfromfour tariat forEconomic Affairs (SECO),theFederal Depart- ers, employees, managersandpoliticians. basic value systemsand changesomeattitudesaswork- win-win-situation, butonly ifwe take acloselookatour forthe regarded asanopportunity West inthesenseofa middle classpopulationandpurchasingpower istobe fromthe learn Asians now. The riseof Asia withitshuge business actorstothequestion,whether it’s nottimeto economicboominIndia,leadsinternational current the Forum SCMoftheETHZurich. Cultures with ahalf-day seminaron“ Swiss-Hong Kong Business Association (SHKBA), and the General Assembly organization, the ofourpartner This year’s General Assembly has beencombinedwith Dear Members,dearReaders General Assembly Besides theactivity 2006,presentedby report Manag- High-ranking representatives fromtheStateSecre- The successstoriesofJapanandChina,aswell asthe (Japan, ChinaandIndia)”incooperationwith , MemberoftheExecutive Boardof Jürg Reichen , which we recommend toallthose Benchmarking ofBusiness , HeadInternational Cia Die “China, hn omnctosZug Zurich EggZH WolfertswilChina Communications Hüttwilen Zug Dr. Martina Altenpohl Zurich Zurich NÜSSLI SpecialEvents Ltd. HerzogDegersheim AG Ringler Informatik AG KOINMO Wangen ZH Winterthur Flamatt Ltd. Infranor Asia James Gilbert Zurich GmbH B&R International Ramersberg (Switzerland) AG Pfäffikon Bombardier Transportation Zug NOVOBIT AG Zurich COMET AG Uetikon Institut MontanaZugerberg Matracon AG Basle Klaus Hammer Zurich OberwilBL ProgressLink GmbH Paul Bussinger Zurich Appenzell (Europe) AG Hendersen Consulting Zurich BridgeLink AG Leader’s Solutions AG FINNAIR Dr. Hansjörg Stutzer IMESCO AG Winterthur Zürcher Hochschule Winterthur Zurich 2007: Since January New Members ws eia laig Lugano Agency (SMCA) Geneva Swiss MedicalClearing Geneva Lugano Dardagny Epalinges/ Jaton M. Pierre Mme YanPlumez-Zhuo Objectif Cadres Geneva Geneva MARVINPAC S.A. Karatsouba Mme Anastassia Consulting S.A. China PrimeBrokerage Geneva VD the fulldocumentationavailable attheChamber. the capitalfundofmembers. whichwill avoid would have deficits, tobecovered by workload anddynamismofChina’s economicrise,butit continuous lackofhumanresourcestotackletheoverall ship fees,effective since2007,willnotresolve the ing market requirementsandprices. The new member- all costeffectiveness remainedunsurpassed, despiteris- unchanged salariessince1995)andtheChamber’s over- at aminimum(head-countinZurich1.8,Geneva 0.5with oftheChamber.preciated support Member oftheExecutive Committee,fortheirhighly ap- (Credit Suisse)and Richard Friedl members andthanked thenew members, ecutive Committeeandfunctionsapproved by theBoard Swiss-Chinese ChamberofCommerce. China, for win Schurtenberger bly unanimously approved theproposedelectionof between SwitzerlandandtheP.R. ofChina,the Assem- regarding thestrengtheningofbilateralrelations forts Utiger ofPricewaterhouseCoopersAdvisory and tonalbank, Banking andMemberoftheBoardZürcherKan- Managing Director, MemberoftheExecutive Board Susan Horváth China theword forproblem alsostandsforopportunity! coming ofoldhabitsandattitudes.Butdon’t forget, in tackling thechangeshereandtocome,liesinover- for many challenges. The probably taskin mostdifficult developmentfast andtremendouschangesinChina call The ongoingChinahype inthe West, butespecially the inthisBulletin. detailed reports we refertothe bilateral relationsandthetradefigures, 2008 andShanghai2010. The latterprojectsandforthe stateof theplannedactivities regardingcurrent Beijing Commission toBeijinginJune2007andpresentedthe Chengdu (SichuanProvince). Beijing, Guangzhou(GuangdongProvince) and with thelocalSwissandChinesebusinesscommunityin ranking Government oftheP.R. officials ofChinaand to 14th2007,thedelegation willmeetwithvarious high- of.From Julyalso someBoardmemberswillbepart 8th a mixed economicdelegation ofwhich ourPresidentand Councillor DorisLeuthard toChina visitof she alsohighlightedtheplannedofficial tween ChinaandSwitzerlandduring2006.Inherreport onthebilateralrelationsbe- (SECO),whofairs reported Rühl Burzi The Chamberalsowelcomed For detailsregarding theGeneral Assembly we referto In 2006,theresourcesofChamberwere againkept alsopresentedthenewKurt set-upoftheEx- Haerri In recognition ofhisuntiringandhighly respected ef- She also mentioned the official visitoftheMixed She alsomentionedtheofficial , Vice PresidentofLonza. afC Schläpfer Ralf C. Honorary memberoftheBoard from theStateSecretariatofEconomic Af- (ABB), lxnr .Jetzer Alexandre F. , former Swiss , former Ambassador to raue ee .Schmid Treasurer Peter R. , Partner, HeadStrategy Ambassador Monika , accompaniedby Vice President (Novartis), Federal Lukas of the Er- or sendafaxto:+41-(44)-421 3889 Please sendorder/s to:[email protected] 10% rebate for orders oftenormore issues. CHF 30.–(excl. postage & handling) Commerce. be available attheSwiss-ChineseChamberof theBookwillalso Around endof August 2007, Gloucester Road, Wanchai, HongKong lishing, UnitsC&D, 9/FNeich Tower, 128 in associationwithChinaEconomicReview Pub- Edition ispublished byHansJ. RothPublishing © 2007HansJ. RothPublishing ISBN-10: 978-988-99874-3-5 cial environment. strategic issuesofmanagementinaChineseso- manager withamodeltobetterstreamlinethe andprovidesthis bookgoesonestepfurther a ational issuesbeingingeneralquitewell known, convincing inavery thought patterns way. Oper- behaviouralgrasp differences aswell asother velopment ofaninterculturalmodel,allowing to agement issuesofcompaniesoperatinginChina. Kong have given himadeepinsightintoman- assignmentinthesamepositionHong current Swiss Consul-Generalfrom2001to2006andhis companies duringhispostinginShanghaias over thelast30years ofChinesedevelopment. cultural issuesgives himanexcellent overview extensive work onpolitical,economic,legal and the People’s Republic ofChinainthe1970s. His theircontactwith hands who hadalreadystarted Hans J. Rothisamongthefew experienced China New BookbyHansJ.Roth Pre-Announcement: His longChinaexperience ledhimtothede- Extensive contactwithforeignandChinese

7 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 8 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS Changes attheStateSecretariat(SECO) nese MinisterofCommerceBoXilai,Federal Council- At hermeetinginBeijingonJuly 8th2007withtheChi- Joint Declarationoneconomiccooperation Trade Agreementwith Chinaandsignsa Doris LeutharddiscussesapossibleFree wickeln alsdergesamteSchweizer Aussenhandel. CHF) zeigt,dasssichdieBeziehungenschnellerent- China: 3.9Mia.CHF(+16%);Handelsbilanz:+172Mio. aus nachChina:4.1Mia.CHF(+18%);Importe (Exporte Schweiz in Asien. Derwirtschaftliche Austausch 2006 der (inkl. Hongkong) derwichtigsteHandelspartner der SpitzenreiterunterdenBRICs.Seit2002istChina mit einemjährlichenDurchschnittswachstum von 10%, Provinz Guangdong und Wirtschaftszentrum desSüdens. Aufenthalt inGuangzhou(Kanton),derHauptstadt such abgestattet.Den Abschluss derReisebildeteein der HauptstadtProvinz Be- Sechuan,einenoffiziellen regen soll,hatFrau BundesrätinDorisLeuthardChengdu, Erschliessung undEntwicklungdeswestlichen Chinasan- welche die Teilnahme ander ausländischerUnternehmen men der“Go West”-Strategie derchinesischenRegierung, Schweizer FirmeninChinaweiter ImRah- zuverbessern. menbedingungen fürdieGeschäftstätigkeit von gie desBundesrates–inersterLiniedazugedient,dieRah- derBRIC-Strate- haben –imSinnederImplementierung undHandelsministerBoXilai Regierungsmitgliedern undzufestigen. und bilateralerEbenezuvertiefen dieser Missionwar es,dieBeziehungenaufmultilateraler vom 15.bis18.Juli2007nach Vietnam) gereist.Ziel Wirtschaftsdelegation vom 8.bis14.JulinachChina(und (EVD),DorisLeuthard,departements istmiteiner Die Vorsteherin desEidgenössischen Volkswirtschafts- Wirtschaftsmission nachChina Bezüglich der wirtschaftlichen EntwicklungistChina, Bezüglich derwirtschaftlichen Gesprächemitdenchinesischen Die offiziellen From 2003 to2006MsRühlBurziworked in thissame ter ofForeign Affairs, Federal CouncillorJoseph Deiss. was appointed Diplomatic Advisor totheSwissMinis- coordination andsustainable development. In2002she UN inNew York withresponsibilitiesforhumanitarian 2002 sheactedasCounsellorat theSwissMissionto from1994to1998.FromUN affairs 1998to inBern training,shewasUnion) andsomefurther dealing with year’s stay (SwissMissiontotheEuropean inBrussels inBern. joined theSwissdiplomaticservice After aone from theUniversity ofZurich.In1992MsRühlBurzi in Italian linguisticsandliterature 1990 shegraduated toMrGianniBurzi.In (Uster/Zurich). Sheismarried ofSwitzerland speakingpart and grew upintheGerman Monika RühlBurzi Phone 031-3228447 Head ofBilateral EconomicRelations– Asia/Oceania SECO, Massimo Baggi For furtherinformation pleasecontact: Switzerland. invest inChinaandofattracting Chineseinvestors in willhavegroup thegoalofassistingSwissbusinessto working topromoteinvestment. group This working Rights(TRIPS). erty on agreement Trade related Aspects ofIntellectualProp- theirreciprocalobligations underthe WTOfirmed their enforcement.SwitzerlandandChinaalsoreaf- logue oninstitutionalandlegislative aspectsofIPRand solutions,advance dia- of theworking istofind group orbusinessassociations. tions andindustry The mandate consistingofrepresentativesgroup oftheiradministra- (IPR) by settinguparegular dialogue throughaworking rights tection andenforcementofintellectualproperty tries atsomepointinthefuture. betweenplace forafreetradeagreement thetwo coun- These studieswillshow whether theconditionsarein sibility studiestowards apossible freetradeagreement. ister ofCommercehave fea- decidedtoconductinternal ofEconomic Department Affairs andtheChineseMin- rights. tellectual property tions between bothcountriesontrade,investment andin- nomic cooperation. This documentstrengthenstherela- lor DorisLeuthardsignedajointdeclarationoneco- The ministershave alsodecidedtosetupabilateral The two ministershave alsodecidedtobolsterthepro- At theirmeetinginBeijing,theHeadofFederal was onDecember12th,1963 born the fields of public finance andregional economics. ofpublic finance the fields MrBaggiisauthorofpublications in (SECO), inBern. Oceania attheStateSecretariat forEconomic Affairs September 2006heisthehead ofthedivision Asia and bilities alsofor Turkmenistan and Kazakhstan.Since the SwissEmbassyinMoscow (Russia) withresponsi- ber 2006hewas Counsellorheadofeconomicaffairs at 2003toSeptem- Bhutan andBangladesh.From January in New Delhi(India)withresponsibilitiesalsoforNepal, responsible foreconomicaffairs attheSwissEmbassy omy andfrom1998 to2003hewas inBern Counsellor forForeignat theMinistry ofecon- Affairs andMinistry Mr Baggiwas affairs dealingwithEuropeanintegration Embassy inLondon(1992and1993).From 1994to1998 Mission totheUNin1992)hewas postedattheSwiss inBern. stayservice After ashort inNew York (Swiss of Ticino). Then in1992hejoinedtheSwissdiplomatic rector oftheInstituteforeconomicresearch(University (in 1993).In1991and1992hewas assistanttotheDi- lations (Diplomaticaffairs) attheUniversity ofGeneva re- search assistantin1989and1990)International nance attheUniversity ofLausanne(where hewas re- the University ofZurich(1988)andstudiedpublic fi- o.).MrBaggihasanMBA ineconomicsfrom and 15y. oftwo andfather boys(Bellinzona). Heismarried (13 ofSwitzerland up intheItalianspeakingpart Massimo Baggi India andtheRussianFederation. Commissions, includingwithcountriessuchasChina, Rühl Burziisco-chairofanumberJointEconomic worldwide, controlpolicy export aswell assanctions.Ms lations Division isdealingwitheconomicrelations SECO’s BoardofDirectors. The BilateralEconomicRe- retariat forEconomic Affairs (SECO)andmemberof Bilateral EconomicRelationsDivision oftheStateSec- Rühl Burziintherankofan Ambassador isheadofthe Federal CouncillorJosephDeiss.Since August 2006Ms capacity fortheSwissMinisterofEconomic Affairs, was on born April 23rd, 1964andgrew Internet: www.seco.admin.ch Tel. ++41(0)313240801 CH-3003 Bern Effingerstrasse 1 Bilateral EconomicRelations Asia /Oceania State Secretariat for Economic Affairs (SECO) For furtherinformation pleasecontact: China. for bilateraleconomicrelationsparticularly with ficer tariat forEconomic asDeskOf- Affairs (SECO)inBern, joined thedivision Asia andOceania attheStateSecre- bassy ofSwitzerlandinBeijing.InMarch2007she Chung worked asthe Assistant totheMinisterofEm- her communicationtools. Ms After hergraduation Mandarin studieswhich addedyet anotherlanguageto Fudan University ofShanghaicompletingherfulltime months inBeijing.InJuly fromthe 2006shegraduated four monthsinHongKong, oneyear inShanghaiandsix to Asia andhasbeenliving fornearly two years inChina: mother tongueCantonese.InJune2005MsChungwent French andEnglishinadditiontoher ent inGerman, This specialschoolingcombinationmeansthatsheisflu- abroad attheHECUniversity ofMontréalinCanada. May 2005while having spentherlastyear ofstudies fromtheHECUniversity(MSc) degree ofLausannein tel. Subsequently, MsChungmadeaMasterofScience turity (2000)fromthe“Lycée Jean-Piaget”ofNeuchâ- ofMa- merce” ofNeuchâtelandwithaSwissCertificate Diploma (1998)fromthe“EcolesupérieuredeCom- withaCommerce Shegraduated mundigen/Bern). ofSwitzerland(Oster- speakingpart up intheGerman Vay-Luy Chung was on born August 1st,1978andgrew

9 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 10 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS further aircraft totheSWISSlong-haul fleet,enabling the new routes canbeoperated thankstothe additionoffive the key citiesofDelhi(India) andShanghai(China). The network, withtheintroduction ofscheduled servicesto new long-haul destinationstoits SWISS istoadditsfirst SWISS Services toDelhiandShanghai SWISS Services schluss, verheiratet, hateine Tochter. August 1962inderProvinz Hubei/China,Studienab- und fürdasFürstentumLiechtenstein,geborenam21. LIXiaosi,Generalkonsul der Herr V. R.ChinainZürich New ConsulGeneraloftheP.R. China www.sccc.ch (Embassies/Consulats). Adressen /Detailsauchunter: in Bern. sularbereich derBotschaft Volksrepublik China erledigen. Alle anderenKantonegehören zumKon- Reiseausweise, Visa undnotarielleDokumentezu China inZürich auf Pässe, Antragsformalitäten beten, beimGeneralkonsulat der Volksrepublik sowie ausdemFürstentumLiechtensteinwerden ge- Schaffhausen, Schwyz, Thurgau, ZugundZürich St.Gallen, Graubünden, Luzern, Glarus, nerrhoden, In- Appenzell nen Aargau, AppenzellAusserrhoden, Antragstellerinnen und Antragsteller ausdenKanto- Visa-Angelegenheiten cation appeal. boost theSwisseconomy and enhanceSwitzerland’s va- tions. The additionofDelhiandShanghaishouldboth and introduce servicefrom Switzerland tonew destina- carrier tobothincrease frequencies onexisting routes Montag –Freitag, vormittags9.00–12.00Uhr. Bürozeit derKonsularabteilung: Fax: 044-2017712 044-205 8412(Konsular-Angelegenheiten) 044-205 8411(Visa-Angelegenheiten) 044-205 8418(Politische Abteilung) 044-205 8421(Protokoll) Telefonnummern: CH-8002 Zürich Bellariastraße 20 Generalkonsulat der Volksrepublik China Adresse: 5320–Generalkonsul inZürich 15.3.2007– BotschaftsratundLeiterderpolitischen 2001–2007 Zweiter Sekretär, stv. Referatsleiter, er- 1996–2001 DritterSekretär, zweiter Sekretärderchi- Fortbildung anderUniversität Hamburg 1992–1996 1991–1992 DritterSekretärinder Westeuropa- 1989–1991 Attaché,dritterSekretärderchinesischen 1986–1989 Mitarbeiter, Attaché inder Westeuropa- 1985–1986 MitarbeiterimPost- und Telekommu- 1983–1985 der Bundesrepublik Deutschland Abteilung derchinesischenBotschaftin ums europa-Abteilung des Aussenministeri- ster Sekretär, Referatsleiterinder West- lik Deutschland nesischen BotschaftinderBundesrepub- Abteilung des Aussenministeriums Deutschland Botschaft inderBundesrepublik Abteilung des Aussenministeriums nikationsministerium bus A340 equipment. bus A340 will begin onMarch30,2008, willbeprovided using Air- vember toShanghai,which 25,2007,while theservice with Delhi willbeserved Airbus A330 aircraftfromNo- tourist destination”,says SWISSCEOChristophFranz. the Swisseconomy andpromotingSwitzerlandasa work toDelhiandShanghai,we arebothstrengthening in the2008summerschedules.“Inextending ournet- timetable, andwilladdShanghai(China)toitsnetwork toDelhi(India)inits2007/08winter duce service 2008. also beaddedtotheSWISSlong-haulfleetby spring tinental network. Two more Airbus A340 aircraftwill (from July 20)anadditional A340 onitsintercon- fleet andhasintroducedtwo further Airbus A330s and added five Airbus A320-family aircrafttoitsEuropean Since lastNovember, Switzerland’s nationalairlinehas SWISS isgrowing, atasteadyandsustainable pace. growth lastyear. also risingrapidly, andrecorded11%year-on-year toSwitzerland are ofIndianproductsandservices ports the pastthreeyears, increasing36%in2006alone.Im- the SwissandIndiansourcemarkets. also offers fromboth sizeable potentialfortouristtraffic, work atSWISS. &DistributionOfficer The new route Hohmeister,Indian destination”,says ChiefNet- Harry prompted ustoaddDelhiournetwork asoursecond organizations, too,thathavegovernment andnon-profit fromnon- countries andthehighdemandforairservices in thismarket, thestrongbusinesstiesbetween thetwo bai) intheemerging Indianmarket. “It’s therapidgrowth Delhi willbeSWISS’s second destination(afterMum- India: akeygrowthmarket stantial growth, androse16%lastyear. toSwitzerlandarealsoseeingsub- ucts andservices 35% over ofChinese prod- thelastthreeyears. Imports Christoph Franz continues. theworld’sis currently fastest-growing market”, CEO Switzerland enjoys attractive airconnectionswithwhat via Munich.“Ournew shouldensure that services next spring,underacodeshareoperationwithLufthansa from ShanghaitootherChinesedestinations. ners tooffer itscustomersattractive onward connections collaborate withtwo well-established localairlinepart- Alliance next year, SWISS shouldalsosoonbeable to With Air ChinaandShanghai Airlines duetojoinStar exist currently betweenservices SwitzerlandandChina. tor foradirectZurich-Shanghaiconnection. creased. Callshave alsobeengrowing inthetourismsec- between ZurichandShanghaihasconsiderably in- in trading partner Asia, thedemandforbusiness travel With Chinanow Switzerland’s second-most-important betweenZurichandShanghai First directservice As aresultofthisfleetexpansion, SWISSwillintro- Swiss exports toIndiahaveSwiss exports morethandoubled over Swiss exports toChina haveSwiss exports increasedby morethan Beijing isalsosettoappearintheSWISStimetable fromflightstoand fromHongKong,Apart nodirect e:SWISS.COM Web: [email protected] +41(0)445642127 E-mail: Fax: +41(0)848773 Phone: SWISS Corporate Communications For furtherinformation pleasecontact: omy.” pansion isgeneratingaddedvalue fortheSwissecon- Christoph Franz pointsout.“Sohere,too,ourfleetex- inSwitzerland”, small ormedium-sizedenterprise fleet createsaboutasmany jobsaswillbefoundina long-haulaircraftwe handling.“Every ground addtoour cateringand too, suchastechnicalservices, fields, some 10%onpresentworkforce numbers. the company’s flying personnelalone,oranincreaseof is alsocreatingnew jobs–around600ofthemamong its network anditsproduct. The presentfleetexpansion ing, SWISShasgiven itselfthescopetoinvest initsfleet, Having restructur- successfully completeditscorporate SWISS generatesjobs airports. centred onZurich,MunichandFrankfurt ofLufthansa’s confirmation further multi-hubstrategy appreciated by businesstravellers. The collaboration is times,andaflexibility thatwillbeparticularly parture bles willoffer customersachoice ofthreedifferent de- orMunichwithLufthansa. furt timeta- The harmonized Delhi orShanghaieitherdirectly onSWISSorviaFrank- As aresult,travellers willbeable tofly fromZurichto fer valuable toalltheircustomers. convenience benefits toDelhiandShanghaiof- schedules oftheirservices SWISS andLufthansawillalsobecoordinatingthe customer choice Schedules coordinatedwithLufthansaformore SWISS’s expansion isgeneratingnew jobsinrelated X190:015:40(daily) + =thefollowing day 09:30 06:35+(daily) LX 189 13:05 Shanghai–Zurich LX 188 06:25(daily) Zurich–Shanghai 02:00 00:35+(daily) LX 147 12:30 Delhi–Zurich LX 146 Zurich–Delhi 2008 Shanghai from March 30th, 2007 Delhi from November 25th, The NewServices: 11 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 12 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS nique (measurement tools),operationsresearch. ial, numericalanalysis offluidmechanics,micro-tech- the event where, amongst others,were ofmater- experts sea”, won the America’s in participants Cup.Scientific plained how withnoaccesstothe Alinghi, “ofacountry China Team CEO. inChinesenewspapersArticles ex- team work, withspeechesby anEPFLdelegation andthe land, about Alinghi andtheChina Team’s innovations and byjing asuccessfulevent, PresenceSwitzer- financed In December2006,theSwissEmbassyorganized inBei- Alinghi andtheChinaTeam 10) Launching ofasatelliteremotesensingapplica- are: gresses 10best2006in The official – China’s formulas AIDS drug first ofITER – Chinabecomespart – Chinesescientistsfoundthekey toregulating plant LONGXINIIECPUaccredited – Proprietary – Qinghai-Tibet Railway through runs – Chinabuildstheworld largest somaticcellbankfor – Chinesescientistsrolledoutgeneticengineeredvac- – NationalS&Tconferencedecidestoenhancepropri- – New discovered particle onBeijingPositron andElec- Geneticchipandexpression mapsfordomesticated – achievements in2006. The 10achievements are: considered China’s 10major The Chinese Academy ofScienceannouncedwhat is Top Tens in2006 be found ontheirwebsite. Further news anddetailsfrom thesummariesbelow can piled andpublished bytheSwissEmbassyinBeijing. from theChinaEnvironment &Research newsletter com- Below thereader somerecent finds shortsummaries China Environment&Research 9) Teleportation complex quantum ofdual-particle ofBeijingPositron8) Upgrading andElectronCollider. 7) Development oftherapeutichepatitisBvaccines. 6) China’s investigation. globalmarinescientific first 5) through the corridor Takelamagan436 kmgreen Observation ofresonancestateinchemicalreactions 4) 3) World Experimental Advanced first Superconduct- 2) Discovery ofalarge naturalgasfield. technology.1) Next-generation internet growth stock andpoultry cine forfoot-and-mouthdisease innovationetary capacity tron Collider silkworm tions. state andmanipulationofsix-photonentangledstate. Deserts. at thequantumlevel. ing Tokomak(EAST). Science & Technology Research &Development pro- Visit of State Secretary KleibertoChina Visit ofStateSecretary sulfur dioxide (SO powerrain, itisplannedthatcoal-fired plantswillcut der toreduceairpollutionurgently acid andinparticular ofenvironment protection.Inor- measures inthefield ministration (SEPA) have announcedtwo important (NDRC) andtheStateEnvironmental Protection Ad- The NationalDevelopment Commission andReform Measures toControlAirPollution http://www.eda.admin.ch/beijing mailto: [email protected] Project Financing Section Science, Technology,Environment, GAO Hang, Programme Assistant Embassy ofSwitzerland inChina DFA FEDERALDEPARTMENT OFFOREIGN AFFAIRS ation withSwisscolleagues. tutions andbeable forcooper- toexplore opportunities at ETHinJuly 2007. They willalsovisitresearchinsti- onIndustrial and tional Congress Applied Mathematics dents inappliedmathematicstoattendthe6thInterna- Kleiber, extended aninvitation to16ChinesePh.D. stu- forEducation andResearch,Charles and StateSecretary his life,personality, discoveries andtheirimpacttoday” Jeltsch ofETHgave aspeechtitled“LeonhardEuler– of the300thanniversary ofLeonhardEuler. Prof.Rolf public commemoration event tookplaceincelebration Presidents ofmajoruniversities. President oftheSwissNationalScienceFoundation, and forProfessionalEducationand Office Technology, the ment. The delegation includedthedirectorofFederal that theFederal CouncilsubmittedtotheSwissparlia- search andtechnology intheperiodfrom2008to2011 ofthedispatchonpromotioneducation,re- part nology. The strategy ofbilateralcooperationcountriesis of thebilateralcooperationstrategy forscienceandtech- was toholddiscussionsontheimplementation purpose ited BeijingandShanghaifrom22to26 April, 2007. The forEducationandResearch,CharlesKleiber,tary vis- A highrankingSwissdelegation headedby StateSecre- and communication,environment, energy, transport, etc. operation iswished.Fields involved includeinformation Olympic andcommercialco- Gameswhere international a listofinnovation projectsinrelationshipwiththe support. gettingfinancial difficulties sors aslaw violatorsareexpected tohave moreand by SEPAidentified environmental protectionsupervi- with thePeople’s thatare BankofChina:enterprises 2010. Besides,SEPA isnow strengtheningcooperation During thevisitofSwissdelegation inBeijing,a The Ministry ofScienceand The Ministry Technology haslaunched 2 ) discharges by 62percentbefore Switzerland’s PRcampaigninChina On theRoadtoExpo2010Shanghai space –intheinside combinedwithnature andameadow landscapeontheroof. – isbuiltontwo levels: thecityscapewithanurbaninfrastructure –from acinemaandrestaurant to anexhibition hai. The pavilion’s outlineisanimaginary political map. This complexstructure –70metres long and20metres high Through itspavilion,Switzerland presents aninnovative anddifferentiated image atthe World Expo2010inShang- Presence Switzerland.However, thereisvirtually noper- conducted inMarch2006thatwas commissionedby study of Chinaaccordingtotheresultsscientific Switzerland hasagoodimageinthePeople’s Republic sectors. cooperation with partners from thepublic andprivate ing launched undertheaegis ofPresence Switzerland in tionally, aninterdisciplinary supportprogramme isbe- the winningproject was selectedon23May2007. Addi- and theSwissPavilion atExpo2010Shanghai,for which be known asthe “House ofSwitzerland 2008–Beijing”, Swiss reception centre attheOlympic Gamesin2008,to Switzerland’s presence inChinawillinclude anofficial portant market ofthePeople’s Republic ofChina. position Switzerland adequately in thestrategically im- land, enhancecontactsbetween thetwo countries,and The aimistoconvey acomprehensive picture ofSwitzer- own nationalPRcampaigntorunfrom 2007to2011. with Chinathatthey present, Switzerland willlaunch its hai. Inview oftheopportunities tointensifyitsdialogue 2008 inBeijingandthe World Exposition2010inShang- tional events initshistory: the SummerOlympic Games China willshortly behostingtwo ofthebiggest interna- and an interdisciplinary support programme. support and aninterdisciplinary 2008”, theSwissPavilion attheExpo2010inShanghai, Games 2008inBeijingwiththe“HouseofSwitzerland– main elements:theSwissappearanceatOlympic ers andstudentsaswell asthemedia,andconsistsofthree distinguish itselffromcompetingcountries. and highlightstheareasinwhich Switzerlandisable to Switzerland’s Switzerlandprofiles Story strongpoints provides basicsubstanceforthecampaign’s orientation. paign recently developed by PresenceSwitzerland, also Switzerland,areas tothetarget audience.Story acam- aboutthese information and quality)tobringfurther Geneva,utation” (international successfulcompanies, by rep- thestudy“qualityoflife”and“international fied istotake advantagethrust oftheSwissstrengthsidenti- Regardingexisting content,the paucityofinformation. itive andproceedingfromthere,toremedythe attributes goalofreinforcingexisting pos- pursuing thelong-term creasing itsactivities inChinafrom2007to2011.Itis tensive campaignSwitzerlandisin- andinterdisciplinary Switzerland’s PRcampaign begins: by meansofanex- relevance.strengths ofinternational Itisherethat ception ofitasanationthathasinnovative andscientific The campaignconcentratesonChineseopinionlead- 13 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 14 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS dynamic business location. asanalluringtraveleconomic partners destinationanda land. region willbepresentedalongwithits The Lucerne of Switzerlandinthespotlight of theHouseSwitzer- thatwillplacethisarea Switzerland hasbeenarranged nity; anexclusive withPresence cooperationagreement Region aim toexploitLucerne thisuniquePR opportu- andtheLake promising Chinesemarket. Lucerne able tocapturetheattentionof marketing platform suit- a result,theSwissreceptioncentrewillbevery ceptions, mediaconferencesandbusinessmeetings. As Olympic teamasameetingplaceandbeavailable forre- theSwiss guests: itwillserve nese andinternational House ofSwitzerlandwillbeopeningitsdoorstoChi- oftheSummerGames the jing. Even beforethestart ject which willbebuiltataprestigiouslocationinBei- – Beijing”;PresenceSwitzerlandismanagingthepro- Swiss receptioncentre:the“HouseofSwitzerland2008 land’s presenceattheGameswillincludeanofficial the SummerOlympic Games 2008inBeijing.Switzer- event sports ofalltime: China isplanningthegreatest The HouseofSwitzerland2008inBeijing of Switzerland’s presenceinChina. to promotetheiractivities inChinathebroadcontext forthepartners asthe ideal platform willserve gramme in theChinesemarket. pro- As aresult,thesupport age ofSwitzerlandandestablish anenhancedpresence im- going cooperationwillcommunicateamultifaceted “Switzerland”. The synergistic effect ofsuchthorough- ensure aconsistentimageundertheumbrellalabel soring. andspon- offer forpartnerships uniqueopportunities programme aswellsupport astheSwisspavilion will events andprojects. the The campaignandinparticular willbecontinuouslygramme enrichedwithadditional pro- throughout China.Inthiscontext, thesupport planned forthesecondhalfof2007indifferent cities ities ofacultural,businessandtouristnatureare national tradeandeducationscience.Moreactiv- up by ofarchitecture,inter- otherevents inthefields between ChinaandSwitzerland, was shortly followed dialogue evidence oftheintensified cim Forum, asfirst Trans_Formation: Many scales,onegoal”). The Hol- “Urban_Trans_Formation” on“Urban_ (seearticle April 2007inShanghaiwiththeHolcimForum on programme on18 support launch aninterdisciplinary Switzerland, tookadvantage to ofthisopportunity of expertise. programme intheirrespectiveshape thesupport areas Switzerland andLocation:Switzerlandarehelpingto vetia, Switzerland Tourism, OsecBusinessNetwork agenciessuchasProHel- and Shanghai,public service Holcim aresponsoringpublic appearancesinBeijing tors: while well-known SwissbrandssuchasNestléand with renowned fromtheprivate partners andpublic sec- In allareasPresenceSwitzerlandisworking closely cooperation withrenownedpartners One country, oneimage:Usingsynergiesinclose Presence Switzerlandiscoordinatingtheactivities to Holcim Ltd, inclosecollaborationwithPresence perception ofthecountry. vative andpromoteadifferentiated country imageand concept withtheaimtopositionSwitzerlandasaninno- Better Life”,Switzerlandispresentingaboldexposition Faithfully following thecentralthemeof“BetterCity, 2010 Shanghaipromisestobreakallprevious records. countriesandorganizations, Expo 200 participating China. With anexpected 70million visitorsandnearly Shanghai isthesecondhighlightofitsPRcampaignin Switzerland’s presenceatthe World Exposition2010in 2010 Shanghai Swiss PresenceatExpo Expo’s themeof“BetterCity, BetterLife”. Agency, thepavilion’s designperfectly reflectsthe and differentiated concept. According toXinhuaNews Chinese mediaclearly speaksinfavour oftheinnovative Chinese public: thepositive echoinboththeSwissand tounveil country theconceptforitspavilionfirst tothe Swiss andChinesemediaon24May. Switzerlandisthe the Swisspavilion, andpresentedtheconceptto recently2010 –thejury selectedthewinningprojectfor elected CommissionerGeneralfortheSwissPavilion of Dr. Uli Sigg–well-known sinologist andrecently project fortheSwisspavilion 2010.Undertheleadership conducted anopen,two-stage competitiontoselectthe aware country. InthisconnectionPresenceSwitzerland innovativesent itselfasamodern, andenvironmentally ter Life”,offers topre- Switzerlandanidealopportunity The themeofExpo2010inShanghai,“BetterCity, Bet- Swiss participationinExpo2010Shanghai for theSwissPavilion 2010, presentedthewinningpro- Dr. presidentandCommissionerGeneral UliSigg,jury Strong concept by additional federalfunds. ing CHF7mwillbefinanced erated by contributionsfromsponsors,andtheremain- ment ofFinance CHF1m. CHF4mwillbegen- A further of Economic Affairs CHF 2m, andtheFederal Depart- CHF6m,theFederalPRS arecontributing Department ments: theFederal ofForeign Department Affairs and come fromtheregular budgetofvarious federaldepart- allocated abudgetofCHF20m,which CHF9mwill inExpo2010Shanghaiand go-ahead forparticipation position. 2010 Shanghaipromisestobethelargest-ever world ex- todate.Expo ofwhich 142havepart, beenconfirmed 2010 andexpect 200countriesandorganizations totake million visitorsintheperiodfrom1May to31October ganizers ofExpo2010Shanghaianticipatemorethan70 sides oftheHuangpuRiver ona5.28sq.kmsite. The or- The World onboth Exposition2010isbeingconstructed The Expo2010Shanghai On 29March2006,theSwissFederal Councilgave the ability andqualityoflife. logical cycle thebasicthemesofExpo2010,sustain- ness ofnature.Intheseways, thepavilion bringsintoa fromtheheavy realityofthecitytoairi- vate’visitors of Yin and Yang. Playfully, they addachairlift‘toele- At thesametimeauthorsreferto Asian principle in doingso,toenhancethequalityoflifeurbanspaces. acter oftechnology and natureincitiesofthefuture,and tivates thehybrid char- withitsclearclaimtoincorporate politicalmap. load. Itsoutlineisanimaginary Expo sitelike sawn-off elephantfeetbearingnovisible infrontofheavya curtain pylons, which areplantedonthe ability. Itisanarchitecturalenigma:ahangingnetforming exterior, interlockinthesemi-transparency ofthefaçade. hybrid elements,whereby andfunction,interior form effect oftheambivalencethe surprising initsdisparateor butrather,bol. Itdoesnotseeksimplegeometricform, tional communication. bolism, originality, unexpectedness, simplicityandemo- Scenography; itwon over thejury onthebasisofitssym- tween BuchnerBründler Architects andElement –istheresultofclosecooperationbe- be determined Concept number8005–anameforthepavilion hasto forsinology BarbaraJenni,consultingexpert - RolandHürzeler, HuerzelerHolzbau,Magden – Werner Waldhauser, WaldhauserHaustechnik AG, – AndreasHunkeler, ElementGmbH,Basel – AndreasBründler, BuchnerBründler AG Architects – was projects: selectedamongthe103otherparticipating 2007. The exposition conceptofthefollowing authors on24Mayject tothepublic atapressconferenceinBern sponsor pavilions. intherealisationofthesemulti-storey nationaland part NüssliSpecialEvents Ltd.,would alsolike totake firm, construction. oftemporary A Swiss mances inthefield masses alsoparticularly necessitatesmaximumperfor- In additiontothelogistical challenges,dealingwiththese ous WorldExhibitions. what more impressive thanwithprevi- andmagnificent of thePuRiverishuge; andthepavilionsare alsosome- something majorisplannedhere: thesiteonbothsides 2010 Shanghai World Exhibitionmasterplanshows that the numberofvisitors isgreater thanever, alookatthe nese are expectedtovisitthe World Exhibition.Notonly jing isabove allalsoamediaevent, about 70millionChi- jor events inthenearfuture. While theOlympics inBei- World ExhibitioninShanghai, Chinawillhosttwo ma- With the2008SummerOlympics inBeijingandthe2010 Swiss PlanLargeTemporary Facilities The intellectually challenging exposition concept cap- The pavilion isahybrid factory, ofsustain- alaboratory The pavilion wants tobeunderstoodasastrongsym- Basel BSA, Basel or visitthewebsite: www.presence.ch Email: [email protected] Mrs KieuD. Tran For furtherinformation pleasecontact: soundingly demonstrate thepower ofinnovation. be “edible” andan“energy-producer”, andwillre- bedrock oftheconcept. ofthepavilionThe façade will Head ofExhibition andPavilion Construction(r). for theExpo2010Project (l)andMartinJoos, Division Florian Hugentobler, Headof Tendering andKey Acount The unionofinnovation andsustainabilityisthe Presence Switzerlandabroad. of Swiss schoolsareamongthemainpartners tions. SwissEmbassiesandConsulatesaswell as seco, swissinfo organiza- andyouth andsports Tourism, OsecBusinessNetwork Switzerland, includeProHelvetia, Switzerland Swiss partners outandcoordinatethistask.Its work tocarry abroad. ideas tomake Switzerlandmorefamiliar activities. PresenceSwitzerlandusesinnovative sic messagescentraltoPresenceSwitzerland’s power, andwell-being trustworthiness aretheba- highlight itsdiversity andattractiveness. Creative derstanding andempathy andto forourcountry vey knowledge aboutSwitzerland, tocreateun- for theSwissPresence Abroad (KOKO). the successortoCoordinatingCommission 2000 by theFederal Councilandparliamentas Presence Switzerland(PRS)was foundedin Presence Switzerland Presence Switzerlandactswithinabroadnet- The missionofPresenceSwitzerland:tocon- 15 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 16 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS Monolith –IconofExpo.02, Murten2002. Expo 2000Hanover. “Cyclebowl –closing thecircle”. have air-conditioning systems aswell as sanitaryfacili- which require electricity, lightandwater connection, and hibitions are multi-storey, useful exhibition buildings normal buildingsandhouses: The pavilionsat World Ex- In many points,pavilion buildingsare comparable with ing. What aretheattributesofsuchprojects? realised inthepasttenyears isimpressive andfascinat- Mr.Horváth: Joos,thelistofpavilions which Nüsslihas jectives inview ofShanghai2010. aboutthecompany’sConstruction) preparationandob- Joos(DivisionMartin HeadforExhibitionandPavilion Florian Hugentobler (Headof Tendering) aswell asMr. inHüttwilen(Switzerland),andtalked withMr.quarters projects forthe World ExhibitioninZaragoza,Spain. company isinvolved withtheimplementationofpavilion jects attheExpo.02inSwitzerland. At themoment, and Aichi (2005),andhasrealisedvarious exhibition pro- already active inthe World ExhibitionsinHanover (2000) was facilities. infrastructural tion oftemporary The firm Chief Editor Susan Horváth visited the firm atitshead- visitedthefirm Chief EditorSusanHorváth The company hasextensive experience intherealisa- The world exhibitionin Aichi, Japan, 2005. – like toachieve? What iseven possible? Shanghai? What would you fromthehomeland –soafar 2010 Project. What arethecompany’s objectives in ing atNüssliandthesameKey Account fortheExpo Mr.Horváth: Hugentobler, you aretheHeadof Tender- and costriskofpavilionconstruction. thing isdonewiththeobjectivetoreduce theschedule or optimisedetailsolutionsintheplanningphase. Every- wards therealisation ofideasandselectionmaterial are already able tomakeimportantcontributionsto- perience gained from theimplementation ofpavilionswe work process andtheresult is.Becausethrough ourex- The earlier we participateintheplanning, thebetter for you? phase? When doestheplanningofsuchbuildingsbegin Horváth: And what roledoes Nüssliplay inthis planning period. also coordinate withthelocalauthoritiesinaveryshort team hastoplan,review, adapt,coordinate andfinally alisation ofwhich isstilluncertain,however. Then the and scenographic conceptwithmany great ideas,there- In thebeginning, there isusually merely anarchitectural posed tobeasconspicuousandastoundingpossible. because incontrast tonormalhousesthepavilionissup- plex andencompassesalarge teamofevent specialists, challenging. Inparticular, theplanningishighly com- The planningofsuch temporary pavilionsisindeedvery consideration duringtheimplementation? Who planssuchbuildingsandwhat hastobetaken into Horváth: This allsoundslike meticulouspreparation? permanent buildings. life, interiorwork necessitatesothermaterialsthanwith hibition. And finally, onaccountofthelimitedservice transportable andeasily todismantle again aftertheex- lies inthesupportingstructure. This hastobeeasily cured withballastagainst upwind. A seconddifference down ontheground andthebuildingthenhastobese- development site, thepavilionisoccasionally only put possible withpavilions.Dependingonthenature ofthe stance, deepfoundations are refrained from whenever permanent buildingsinafew importantpoints.For in- ties. However, temporary pavilionsdiffer strongly from ity onalocalbasis. struction productions andservicesintherequired qual- it possible for ustocover majorportionsofpavilioncon- It would bedesirable therightpartners who make tofind ners andinvest inthe build-upofapowerful localteam. sitates thatwe mustwork closely together withlocal part- successful implementationofpavilions inChinaneces- everything hereof finding tobethesameasathome. The why we are notions notgoing toShanghaiwiththefixed ways expecttheunexpectedinChina[smiles]. This is I personally andwe allalready know thatwe shouldal- jects inChina,andhow isitpreparingforthis? the company expect withtherealisationofpavilion pro- question,Mr. Horváth: Hugentobler:A final What does platform togain alastingfoothold inChina. appearance. Inthissense, Shanghai2010couldbea there above allfor realisation oftheSwissand Austrian with amid-tolongtermoption,whereas inJapan we went Aichi, however, we are preparing ourselves for Shanghai tomer iscertainly thesameasinJapan. Incontrast to Our qualityclaim andourobligation vis-à-visthecus- Exhibition in Aichi, Japan? ences regarding your involvement inthelastlarge World Horváth: While doingso,arethereparallelsordiffer- mally provide inanenvironment known tous. mands withregard tocosts,datesandqualityaswe nor- clear thatpotentialclients willposethesamegreat de- of astrong local network ofpartners andsuppliers. Itis company isalready working intensively onthebuild-up with theexhibitionlocationsHanover orZaragoza, the environment inChinacannotbecompared inany way at theExpo2010inShanghai.Infullawareness thatthe struction contractor for variouscountriesandsponsors The NüssliGroup hastheambitiontobecomecon- Hall for 150years Credit SuisseandtheexhibitionofCristo, Zurich 2006. e:www.nussli.com Web: [email protected] +41 587482100 E-mail: Fax: +41587482131 Phone: CH-8536 Hüttwilen TG Hauptstrasse 36 2010” Shanghai KeyHead Tendering Account“Expo / Nüssli SpecialEventsLtd. Florian Hugentobler For furtherinformation pleasecontact: USA. Germany,quarters), Austria, Spain,Italy andthe employees andispresentinSwitzerland(head- pany provides tailor-made services. integrated the initialideauptoimplementation,com- terior Fittings make thecompany unique. From Steel Construction, Timber andIn- Constructions comprehensive productsmeansinthedivisions Stages |Grandstandsand Exhibit Constructions, sions –GeneralPlanning,Contractor, professional cooperationbetween itscoredivi- sources resultsinnew synergies every day. The many years re- ofexperience andinternational combinationofextensivepurposeful know-how, convinces by delivering innovative solutions. The events, andexhibitions. tradefairs The company leading provider for structures oftemporary Nüssli SpecialEvents Ltd.isaninternationally (www.nussli.com) Nüssli inBrief The company hasaworkforce ofmorethan200 17 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHAMBER NEWS 18 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY China’s sector, service especially smallbusinesses. underestimationof collection problems andagross what hadbeenpreviously calculated. This was duetodata published In lateDecember2005,theNationalBureauofStatistics by theendof2006. as geographic andfunctionallimitationswere abolished telecoms arekey sectorsofinterestforSwisscompanies retailand Banking, insurance,professionalservices, of thephase-inperiodChina’s WTO commitments. vices companies,especially with2006beingthelastyear forSwissconsumergoodsandser- at bigopportunities by 14.9%. hints shift to consumerservices The gradual Rising incomeshave boostedretail sales this new legislation willbeappliedandenforced. People’s Republic ofChina.Itremainstobeseenhow timesincetheestablishment ofthe forthefirst property provides forequallegal protectionforpublic andprivate transparency ofChina’s taxregime. lawThe property at different rates. The new law therefore increasesthe haveUp tonow beentaxed domesticandforeignfirms tax ratefordomesticandforeign-invested enterprises. climate. incometaxlawThe corporate setsasingle25% law andanew corporate incometax mark property law in March2007concludedwiththe stilling a“new senseofsecurityinChinesehouseholds”. Commission, hasdeclareditwillfocusitsefforts onin- nomic planner, theNationalDevelopment andReform anced by healthy consumerspending.China’s topeco- investment-led fromanexport-and try growth toonebal- Government itsdesiretomove hasarticulated thecoun- tors andstimulatingconsumptionlevels. The Chinese the twingoalsofreducinginvestment inoverheated sec- March 2006NationalPeople’s Meeting,hasset Congress The Appreciation oftheEconomicProblemsandIssues Annual EconomicReport Sources China: StructureoftheEconomy o hc tt etr 05 .% 92 .%1.%n/a n/a n/a 11.2% 39.5% 23.8% 44.8% 8.9% 40.3% 22.5% 47.0% 9.2% 31.9% 21.6% 49.1% 28.6% 9.7% 33.4% 21.4% 50.0% 27.7% 10.5% 34.3% 22.3% 50.0% 34,1% (of whichstatesector) Tertiary Sector Secondary Sector Primary Sector Distribution ofLabor (%) Tertiary Sector rmr etr1.%1.%1.%1.%1.%11.8% 12.4% 15.2% 14.4% 50.4% 15.3% 50.1% 15.8% Secondary Sector Primary Sector Distribution ofGDP (%) The annualsessionoftheNationalPeople’s Congress . Bothareexpected toimprove theinvestment 11th five-year plan(2006–2011) : NSB, new thatwere GDPfigures farlarger * MofCom, ** OECD adoption ofaland- 0120 0320 05 2006** 2005* 2004 2003 2002 2001 , adoptedatthe year-to-year than Banking Regulatory Commission(CBRC)gaveBanking Regulatory Chinese ing forways tocoolthemarket down. InMay theChina keeping money indomesticassets,andareactively look- territory, with macro-authoritiesarenolongerconcerned ter. As thedomesticstockmarket ismoving intobubble quar- large inflows foreignexchange portfolio inthefirst market isnow themaindriver behindtheextraordinarily kept risingsharply, thatthestock increasingconcerns markets financial crash, theevent showed the though itwasn’t a matterofanaccuratestockmarket fected regional aswell markets. Even asinternational 9% dropattheShanghaistockmarket thisFebruary af- markets. The financial ing tomanifestininternational China’s worldwide isalsobecom- economic importance amounts to11.5%. year, eachtimeby 0.5percentage pointsandnow ratiowasbank reserve raisedeighttimesover thepast percentage pointsto3.06%and6.57%respectively. The one-year deposit andloaninterestratesby 0.27and0.18 crease was on19May 2007,when thePBOCraised (PBOC) hasraisedinterestratesfourtimes. The lastin- follow. Since April 2006thePeople’s BankofChina thatinterestratehikes wereeconomists agreed likely to and money supply benchmarks, hadallexceeded official flationary pressure” flationary in- Statistics (NBS)admittedthat“thereexists certain ing economy loans, thus forming ket andofanincreaseddebt-burdenduetonon-per- risks ofahousingbubble inthesizzlingreal-estatemar- easy credithascausedanalysts aboutthedual toworry points morethanthecentralbanktarget. This surge of and money supply increasedby 17.3%,1.3percentage quarter. The consumer priceindex (CPI)grew by 2.7% pace in2007.GDPgrowth amountedto11.1%inthefirst During Marchand April theShanghaistockmarket The Chineseeconomy continuestogrow atabrisk 93 05 14 n/a 31.4% 30.5% 29.3% 22 29 73 48.7% 47.3% 52.9% 52.2% (cf. annexe 2). The NationalBureauof . 1 maintaining fears ofanoverheat- May 2007Update . Given thattheCPI,GDP thefact growing impactofChinese by theGovernment tocoolthemarket. salestaxes onequitytobetaken tal gainsandshort-term anti-leverage measures,thepossible impositionofcapi- administrative controlsonnew fundinflows, aggressive others anticipatemoredrasticmeasuressuchasrenewed able andnew stocksarelistedonthemainlandmarket, increasing amountofnon-tradable sharesbecometrad- believesome experts thatcapitalinflows willslow asan have exacerbated inthemarket. thenervousness While lation. According toanalysts thenew regulations might aboutovervaluationamid concerns andrampantspecu- May theShanghaistockmarket plungedanother4% has formally allowed portfolio equityoutflows. below thesymbolic8RMBto1US$threshold to revaluate theRMB. Having clear indicationthatitwas expecting Chineseauthorities manipulatorinitsMay thiswascurrency 2006report, a the US didnotnameChinaasa Treasury Department under constantpressuretocontinuewithreforms. While the RMB’s decadelongpeg tothedollar, Chinahasbeen Following ending the2005exchange ratesystemreform equity markets commercial bankstheauthorizationtoinvest inoverseas shown agrowing interestininvesting inChina’s state Foreign banks(includingCreditSuisseand UBS)have However, overall progress remainsslow. totackletheissuemoreconsistently.might bestarting cases have been prosecuted, comingasasignthatChina laid-off workers. Also, arecentsetofnoteworthy IPR- to pay creditorsbeforeusingany remainingassetstopay take effect enterprises on1June2007, requiringbankrupt rate bankruptcylaw rights(IPR) arerequired. lectual property enforcement ofthesetlaws andregulations forintel- legal frameworkmodern for businessesandtheeffective suchastheestablishment ofa ronment inChina,reforms velopment andapositive evolution ofthebusinessenvi- distribution). Further, toensurecontinuedeconomic de- of theindustrialsector, barminingandutilities,in of anumberpreviously restricted areas(inmost ented economy towards creating one insixhasnegative equity. Another stephasbeentaken apositive and panies arestillnotearning rateofreturn more progress tomake: 35%ofallstate-controlled com- The ongoing reform ofthe The ongoingreform announced. cards market andthesecuritiesindustry openingsintheRMBcreditanddebit cussed withcertain the energy sectorwere alsoamongthekey-topics dis- markets andjointcooperationin opening-up offinancial ship. rights,the The protectionofintellectualproperty remains acoreissueinthebilateraleconomicrelation- from aU.S. pointofview –thecountry’s policy currency America’s withChina– hugeandgrowing tradedeficit from 22to23May in Washington. Beingarootcauseof cember 2006inBeijingandthesecondroundwas held strategic economicissues,tookplaceinDe- long-term gic EconomicDialogue, focusingonoverarching and tain extent. tensions between thetwo countriesmighteasetoacer- The first meetingofthehigh-level U.S.The first –ChinaStrate- 2 . with theopeninguptoprivate businesses a more efficient andmorea more market-ori- efficient It is the first timethatthemainland It isthefirst was adoptedon27 August 2006to state owned sector strengthened tonotably 3 A new corpo- has some 4 , trade On 15 (WT China asamemberofthe Country’s policyandpriorities Economic Agreements International andRegional Suisse played amajorrole. 2000. InbothofthesesuccessfultransactionsCredit US$ 9.7billioninthelargest worldwide IPOsince April China tober 2005. The IndustrialandCommercial vestors withan bank tolistitsshares,inHongKong, withoverseas in- struction Bank policy andstrategy. The the statebanks’ loans, especially in iftheforeignbanksgettotake part banking sector This may helpinthelongand as the liberalization of agricultural markets. Chinawantsas theliberalization ofagricultural of 20developing countries (G20)ledby Brazil–such – alsointhecontext ofitsinvolvement withtheGroup gagement inissuestypically affecting emerging markets free-trade So far, Chinahasleanttowards beingan vailing dutiesonanon-market economy. reversed a23-year-old policy ofnotimposing counter- offset theimpactofalleged government subsidies. This iffs from China,to of10–20%onglossypaperimported 2007 theU.S. ofCommerceannouncedtar- Department 20% onabroadrangeoffootwear products.InlateMarch volved theEUimposinganti-dumpingdutiesofnearly anti-dumping complaints of the WTO, Chinahas also beenthetarget of fouryears asamember rights enforcement.Inthefirst andofintellectualproperty provisions forforeignfirms transparency intraderegulations, ofdistributionrights tices againstforeigncompanies(VAT), aswell aslackof taxprac- discriminatory services, ket accessforfinancial mar- productimports, noted inareassuchasagricultural A lackofcomplianceto WTO rules ulations. lenges ofimplementationandenforcement WTO reg- placed by moresubtle obstacles,concealedby thechal- arebeingre- thattradebarriers 2006, thereareconcerns implementationon11December WTO-commitments’ year of andfinal itsfifth While Chinahasterminated – usually ontimeand sometimesaheadofschedule. that altogether.ment ofthecountry Itiswidely recognized andthedevelop-the Chineseeconomicsystemreforms continue tohave of vitalimplicationsforthefurthering China’s accessiontothe WTO in 2001hashadandwill four largest state-owned banks–inSeptember2005. withBankofChina–onethe strategic partnership announceda commercial banks.UBSinparticular China has fulfilled mostofits China hasfulfilled WTO commitments O) (ICBC) followed suitinMay 2006andraised within the WTO, demonstratingastrongen- initial public offering(IPO) which isfraughtwithnon-performing was the first ofthelarge state-ownedwas thefirst . A 2006 high-profile casein- . A 2006high-profile W or delicate reform ofthe ld T r ade Or is however clearly 6 China Con- advocate of g numerous on 27Oc- anization Bank of 5 19 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 20 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY China-ASEAN F sidiaries. allowed theirChinesebranchesintosub- toincorporate twelve foreignbanks–noneofthemSwisshave been dividual businesslinesandbranchnetworks. Sofar, banks willbethelicensingandapproval processforin- high capitalrequirements. Another obstacleforforeign theirChinesesubsidiarieslocally whichcorporate means foreignbanksmustin- services, range oflocalcurrency andmarket regulatory barriers. Tonificant offer thefull banking system.Foreign sig- bankswillcontinuetoface a macropointofview, thisdoesn’t meanmuchforthe CAFTA. ofacomprehensive2005, thestart implementationof The tariff reductionprogramme was launchedinJuly month lateratthe ASEAN-meeting in Vientiane, Laos. signedseveralber 2004andthepartners tradepactsa future consultations. The negotiations endedinOcto- doesn’t detailtheFTA’s institutionalset-up,relying on goods andeliminatenon-tariffsbarriers and statestheobjectivesagreement withChina ofthegroup bodia, Laos,Myanmar, Vietnam). The framework 2015 forthenewer andlessdeveloped members(Cam- Malaysia, Philippines,Singaporeand Thailand) andby original Indonesia, ASEAN members(Brunei, lead totheestablishment ofCAFTA by 2010forthe theliberalizationoftradeinseveral stepsto defining negotiations with ASEAN andsignedaframework InNovemberagreements. 2002,Chinabegan official itself toensuringtheconclusionofregional freetrade After itssuccessfulaccessiontothe WTO, Chinaturned Following the a compromiseonDoha. beencriticizedfornotengaginghardenoughtofind far to give theimageofanactive WTO-member buthasso mestic banks, and also permits mestic banks,andalsopermits andretailcustomersjustasdo- meaning bothcorporate toallcustomers, fer foreignexchange andRMBservices Council alsoallows of Foreign-funded Financial Institutionsby theState nese enterprises asthey didbefore. nese enterprises all customersandRMBbusinesswithforeignChi- banks licenses. stricting ownership, branchingand operations,internal eliminating any measuresre- existing non-prudential ographic andclientconstraints banks strictions over years, Chinaallows thepastfive foreign 11 December2006.Having progressively relaxed re- toforeigncompetitionon opened upitsbankingindustry Under its WTO accessioncommitment,China“fully” tion inFTA-negotiations inthelastfew years hasshown. tured globaltradeenvironment asChina-ledintensifica- modate itselftoamoreregionally andbilaterally struc- round ultimately itseemsthatChinacouldaccom- fail, door toG20andG33concessions.ShouldtheDoha take majorstepstounlocknegotiations, thusopeningthe theUSandthenEUto July 2006,Chinaexpects first aims tolower bilateral tariffsto0–5%onmost access toitsRMBretail business andliftsallge- to continuedoingforeignexchange businesswith 7 The revised Regulation onthe Administration suspension oftheDoharound talks r ee subsidiaries offoreign banks T r ade Agr eement (CAFT branches offoreign 8 on theiroperations, Critics say thatfrom . However, it A) to of- in – After five roundsof negotiations since Afterfive April 2005,China – negotiations onabilateralFTA Chinahasalsostarted – Comprehensive China-AustraliaFTA-negotiations – Aftersixroundsoftalksbetween ChinaandNew – ChinaandChilesignedaFTA atthe APEC-Summit in – Other inter 2015 accelerate theestablishment ofaFTA withChinaby theirstrongcommitmentto member countriesaffirmed July 2007. At thesametimeleadersoften ASEAN vice relatedsectors. The accordwillcomeintoeffect in andother ser- telecomservices and educationalservices, tourismandtravelservices, transport relatedservices, andengineeringrelated construction business services, proved market access,includingnationaltreatmentin Agreement mit. 10th ASEAN+3 Summitandthe2ndEast Asian Sum- in 2007aseriesofEast In January Asian summitswas held cember 2005inMalaysia. duringitsinauguralmeetingon14De- India tothegroup (EAS), which haswelcomed Australia, New Zealandand South Korea andJapan)intotheEast Asian Summit of thetransformation supported ASEAN+3 (China, wouldthe country It follows fromChina’s tighteningtieswith ASEAN that themselves. withthe reach afree-tradeagreement ASEAN-countries per-powers challengedandconsequently putaneffort to the USAalsoseetheirpositionasregional economicsu- tracting foreigndirectinvestment. Meanwhile, Japanand tion-effect the latterfeel ofclosertraderelations, countries ofthemutualbenefits While Chinacontinuously triestoconvince the ASEAN all productsintwo phasesfrom1July 2007. and Pakistan willbegin toreduceoreliminatetariffs on FTA on24November China 2006.Undertheagreement and Pakistan have onmarket accessandsigneda agreed ern African CustomsUnion(SACU). to follow suitwithMERCOSUR,IndiaandtheSouth- with theGulfCooperationCouncil(GCC)andplans breakthrough. has beendampeningtheexpectations ofanearly cluded withfew results. The Australian Government round oftalks,which tookplaceinMarch2007,con- goods, aremakingrelatively slow progress. The eighth stumbling blocks, namely andindustrial inagriculture were launchedin April 2005,butduetosubstantial areas ofthenegotiations. cussions now well advanced inanumberoftechnical 2007 progress was madeacrosstheboardwithdis- two years. Ontheeleventh roundoftalksinMarch comprehensive FTA couldbesignedwithin agreement Zealand, Premier Wen Jiabaohintedin April 2006 a on thetradeof97%allgoods. on 1October2006andwilleventually liftcustomsfees whichafter negotiations hascomeinto effect started) Busan, SouthKorea, inNovember 2005,(only ayear Cebu China and ASEAN signeda Trade inServices . , namely the10th ASEAN-China Summit,the that theindustrialsiteChinais,hasonat- national fr under which service providersunder which service will enjoy im- growing concern atperceiving thesuc- press regionalism further ee tr ade neg otiations . Chinahas in December2003. InMay 2006 ZurichFinancial Ser- opened thecompany’sSwiss Reofficially Chinabranch rules have from sucheasingofmarket benefited entry the Chinesemarket. Ontheother hand, to reducetemporarily orgive upcompletely thework in played aroleinthis,aswell whether asindetermining inSwitzerlandhave ofcompanies’headquarters ficulties have only partly beentaken advantage of.Economicdif- ofwatches.import Inthebeginning, theseprivileges andthe ofinsurancelicences,inspectionservices fields concessionstowardsmake certain Switzerlandinthe 26 September2000,thePeople’s to Republic hadagreed toChina’sIn thebilateralagreement WTO-accession of discrimination) Outlook forSwitzerland(potential Early meetingswiththenew JapanesePrimeMinister – Therearealsopossibilitiesof futurenegotiations with – bilateral FTA. ident HuJintaotoIndiaincludedtalksonrespective Shinzo Abe andtheNovember 2006StatevisitofPres- ority isatrade-dealwiththeUnitedStates. South Korea althoughSouthKorea’s toppri- current SWITZERLAND FRANCENETHERLANDSUSA [email protected] 365 96 90 61 41 Phone + Basel CH-4002 P.O. Box4273 Solothurnerstrasse 48 CieAG + Schneider : forexample, representingthereinsurancesector, www.schneider-transport.com eexcelatwhatwedo. We and China Worldwide Cargo Network Official Swiss agentfor ChinaCargo Alliance Phone: +862162092114 A,Shanghai,China 977 HongQiaoRd.Block 3,30 Own liaisonoffice inShanghai: service toallmajorairportsandports Import andexport, consolidation andfullcontainer China aswell asHongKong and Taiwan between Zurich,Geneva orBasleandmainland Premium aircargo andseafreight services [email protected] 17 17 800 44 41 Phone + CH-8058Zurich-Airport Postal address:P.O. Box, CH-8302 Kloten c 12 Domicile: Oberfeldstrasse CieAG + Schneider some sectors and negotiations start in2008.During hisbilateraleco- and negotiations start sibility-study shouldbecompleted by theendofthisyear ognize Chinaasafullmarket economy. 2007. theFTA2006. Negotiations concerning in started April gotiation withChina,thestudy was concludedinJuly economy status,which isaprerequisiteforany FTA-ne- May 2005,afterIcelandrecognized China’s fullmarket launch aFTA feasibility-study withChina. European countryto Iceland hasbecomethefirst made. prox. CHF1’600)ormore,ofwhich 99%areSwiss This taxaffects watches withavalue ofRMB10’000(ap- negativehad acertain impactonmainlandsalesfigures. watchessumption taxonluxury asof1 April 2006has nexe 4.However, thesuddenintroductionofa 20%con- tinually, asisshown inthebilateral tradestatisticsinan- watch industry’s zero-tariff-imports have increasedcon- continuing strongpresenceintheSARshows. The Swiss centreintheregion astheir remains theleadingfinancial ened theirfootholdinmainlandChinawhile HongKong have intermediaries alsostrength- ital. Swissfinancial insurer toestablish ageneralinsurancebranchinthecap- foreign sualty branchinBeijing,thusbecomingthefirst vices Groupreceived approval andca- aproperty torun In March 2007Norway alsoannouncedtorec- [email protected] 10 50 989 22 41 Phone + 1 Meyrin CH-1217 ruedelaBergère 1A, CieSA + Schneider The FTA fea- Started in Started 21 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 22 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY “textiles and “basemetalsandar- and textiles articles” 2006 The those views. However, once again dispelled 2005 and2006figures high-technology, machines,energy andraw materials. and thestronginlanddemandfor nomic restructuring requirements,the accelerationoftheinlandeco- import ties), theconsiderable of decreaseofnon-tariff barriers China’s accessiontothe WTO (reductionofcustomdu- wouldshrink forsometime–attributingfactors be Analysts have anticipatedthecountry’s to tradesurplus deficits. theUSand EUwiththeirhugetrade in particular withChina’sincreasing concerns maintradingpartners, 74.1% standingatUS$177.46billionanincrease of figure, ered anexcellent result, 2005’s ofUS$101.9billionwas consid- tradesurplus increased 20%toUS$791.6billion. While theyear rose27.2%toUS$969.1billionandimports Exports tal ofUS$1.76trillion,anincrease23.8%over 2005. grew andexports toato- Chineseimports performance. 2006 was yet anotherremarkable year forChina’s trade T Development andgeneraloutlook Foreign Trade todiscussabilateral FTAportunity visit toChinainJuly 2007willpresent anotherop- land’s view, Switzerland-China FTA plansmaterialize.InSwitzer- same pathunlessprogress ismadeintheDohaRoundor increase, thepotentialfordiscriminationwillfollow the of FTA between Chinaandother industrialcountrieswill forSwitzerlandandthenumber as aneconomicpartner conclusion ofrecentFTAs. As boththepositionofChina above following average the inbilateraltradefigures EFTA-members. show upturn animportant Secofigures that Chinanow seemstopreferbilateralFTA withthe nomic relationswithIcelandandNorway demonstrate EFTA Recentdevelopments asagroup. inChineseeco- members, itdoesn’t seemtowant negotiations withthe basically willingtoconcludeanFTA withallEFTA inDecember2006tobe though Chinareconfirmed creasing numberofbilateralfreetradenegotiations. Al- source-constraints duetotheDohaRoundandanin- considered very seriously” stated thattheideaofan with EFTA. InsubsequentmeetingstheChineseside was preparedtoconsiderafeasibilitystudyaboutanFTA ropean Free Trade Association (EFTA) onwhether China of SwitzerlandandtheotherthreemembersEu- Economy, JosephDeiss,presentedaproposalonbehalf nomic missioninJuly 2005,theSwissMinisterof r ade ing leading Chineseproduct export categories in were and mechanical appliances”, “machinery , isbothoutstandingandproblematic asitraises oods Federal CouncillorLeuthard’s official EFTA-China FTA “should be the year 2006’s trade surplus but that it faced seriousre- but thatitfaced . Trading partnersofthePeople‘sRepublicChina Source oa 9, 0%20,0 100% 9,2 9,7 791,6 9,4 0,16% -14,4 0,54% 43,5 0,01% 1,250 4,255 0,7% 19,4 0,00% Total 0,040 5,6 0,014 11,3% Switzerland Norway 89,5 Liechtenstein 582,6 Iceland EFTA ASEAN APEC igpr 7722 7,0 11,4% 37,3 28,4 2,2% 19,3 90,3 2,2% 2,3% 17,3 17,7 2,4% 23,3 17,7 3,0% 18,0 EU-25 4,8% 19,3 Singapore 23,6 15,2 Philippines 37,9 Thailand 87,1 14,6% Australia 11,3% Malaysia 115,7 89,8 Germany USA Taiwan Korea Rep. Japan oa 6, 0%27,2 100% 28,7 28,9 969,1 4,0 0,18% 28,2 0,26% 18,9 0,01% 1,701 2,510 0,4% 0,00% Total 0,078 19,8 7,4% 4,3 26,6 0,011 Switzerland 25,3 Norway 1,6% 71,3 18,8% Liechtenstein 39,4 2,1% Iceland 15,8 182,0 EFTA 2,4% 20,7 19,3 ASEAN 23,9 APEC 23,2 26,8 EU-25 3,2% 4,2% Russia 9,5% 24,9 4,6% Taiwan 30,9 40,3 24,8 Singapore 91,6 21,0% 44,5 United Kingdom 16,0% Netherlands 203,5 Germany 155,4 Korea Rep. Japan Hong Kong USA

Imports from Exports to : MinistryofCommerce Country/Region Country/Region

2006 2006 4, 65 23,4 66,5% 644,7 9275 21,8 7,5% 59,2 Billion 2,5% 24,2 Billion USD USD 36 18,1 73,6% 10 16,6 11,0% Share % Share % 22,7 28,8 27,3 16,9 Growth in % to a Growth in % to a comparable 9,1 comparable previous period previous period to US$91.7billionfortheEU). ofUS$70.1billion for theUS,andfromatradedeficit ofUS$114.2billionto144.3 trade deficit roseby 26.4%and30.7%respectivelydeficits (froma According toChinesestatistics,theUSandEU-25trade (7.5%). ASEAN-States (11.3%), Taiwan (11.0%),andtheUSA theEU-25(11.4%),SouthKoreaimports), (11.3%),the products were Japan(US$115.7billion,14.6%oftotal and/or regions oforiginfrom which Chinaimported ASEAN-States (7.4%). countries The mostimportant (18.8%), HongKong theEU-25 (US$ 203.5billion,21.0%oftotalexports), China’s export markets mostimportant total tradevolume. ticles ofbasemetal”comprisingalmosttwo thirdof world supply chainhasbecome obvious the world onChina’s role ofthe asanessentialpart has alreadygone.Simultaneously, the apparent how ofChina inworld theintegration far trade accelerated thisdevelopment andtheSARS-crisismade industry). The WTO-accession has tomotive suppliers’ ket ortoproduceinChina(onesuchexample istheau- are underpressuretoeitherlosetheirshareofthemar- suppliers ofindustrializedcountries As aresult,industry (cf. 4.1). which isinlinewiththeGovernment’s new FDIstrategy consumer electronics,computers,mobilephones,etc.), producing higher-standard products(homeappliances, areincreasinglynesses withforeignparticipation andbusi- tiles, clothes,shoes,toys), butChinesefirms til now mainly low exported value consumergoods(tex- competence. but more importantly ofahighertechnical costs, production, the classicdeveloping countrieswithcheapindustrial nearly allareasofindustrial production. As opposedto thatChinahasexpandedfact toadominantpositionin ket withoverproduction goods,changesnothingtothe andfloodthemar- torun (SOEs), which areinefficient The problem ofthecountlessstate-owned enterprises 0.38% inyear 2006. land andChinaslightly decreased from 0.41%to total imports. two representingjustover Chineseimports, 57%of nical appliances”and“mineralproducts”arethetop a 42.7%shareofexports. mechanical appliancescategories amountedto exports tively. (US$ 4.26billion)and28.9%2.51respec- land grew, according toChinesestatistics,about9.7% intoSwitzer- outofandtheexports In 2006theimports year-on-year. 2007period,billion intheJanuary–April up23.6percent show thatChina’s foreigntrade volume was US$635.73 Statistics withtheGeneral Administration ofCustoms ners are understandable. tensionsintrade between Chinaanditspart- mind, 14 The share ofbilateral trade between Switzer- China hasnotonly theadvantage oflower China’s industrieshave manufacturing un- 11 12 9 (16.0%), Japan(9.5%)andthe Aggregated machinery and Aggregated machinery 10 “Machinery andmecha- “Machinery 13 With in thosefigures dependence of . were theUSA across thecountry. This sector offers andwillcontinue sectoranditsdevelopmentufacturing ofinfrastructure duction equipmentlinked totheprogress ofChina’s man- increasing demandforadvanced technology andpro- to Chineseimporters. great comparative advantage insectors which matter watchesstruments, andjewellery). chinery, precision in- chemicalsandpharmaceuticals, experienced in2006(ma- strongincreasesinexports promotionand,ports ascanbeseenby theareaswhich intheframeworkChina isaprioritycountry ofSwissex- 16.79% respectively). toChina(38.85%,20.32% and nate Swissexports watches“precision instruments, andjewellery” domi- and and electronics”,“chemicalspharmaceuticals”, (24.78% and19.28respectively). “Machinery, apparatus have toSwitzerland thelargest shareofChineseimports tus andelectronics”“textiles, apparelandshoes”still of2007,“machinery, quarter appara- China. Inthefirst once againacceleratingtradebetween Switzerlandand –2.61% respectively, year-on-year. Those resultspointto Hong Kong isadded,standat14.12%and thosefigures year-on-year.33.71% and26.64%respectively, from mainlandChinahave grown again significantly From January toMarch 2007exports toandimports lion or+23.21%). egories (CHF189millionor+24.25%andCHF109mil- watchesand “precisioninstruments, andjewellery” cat- China were inthe“machinery, apparatus,electronics” cals (16.67%). from The strongestincreasesinimports 108.78 millionincreaseforchemicalsandpharmaceuti- watchesstruments, andjewellery (13.47%)andaCHF tronics, aCHF80.1millionincreaseforprecisionin- (14.69%) increaseformachinery, apparatusandelec- toChinasawIn 2006Swissexports aCHF238.2million watches andjewellery (16.48%). maceuticals (18.59%)andprecisioninstruments, 45.42%),chemicalsandphar- (2006 shareofexports: dominated by machinery, apparatusandelectronics are (13.21%).Exports chemicals andpharmaceuticals watchescision instruments, andjewellery (14.78%), 24.67%),textiles, apparelandshoes(19.9%),pre- ports: machinery, apparatusandelectronics (2006shareofim- ofgoodsoutChinaare imports The mostimportant favour ofSwitzerland there was a Hong Kong withthatofmainlandChinafortheyear 2006 When combiningtradedatabetween Switzerlandand ofCHF122million. in 2005withaSwisstradesurplus andanalmostequal17.22%(imports) 11.72% (exports) In comparison,growth rateswere high stillatavery trade surplus ofCHF171.9millionfor Switzerland went up18.36%toCHF3.92billion,resultingina years, growing by 19.15%toCHF4.09billion.Imports Swiss customsdata) Swiss export growth tomainland-China T Bilateral trade r ade ing oods significant CHF3.4billionsurplus in significant 15 was fasterin2006 , keeping upwiththe2005figure. One example istheconstantand Switzerland hasa than inprevious (according to When small . 16 23 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 24 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY eign directinvestment (FDI)recipient,China hasde- was published. Rankingsecondonly totheUSasafor- gramme (2006–2011)for utilizingforeign investment On 9November 2006,China’s nesses. main andmake theprocesscomplex andtediousforbusi- re- fromChinaispossible, barriers but ital andprofits strategic sectors inparticularlya minorityparticipation sensitive or services. direct investments, inthesectoroffinancial inparticular cession thatforeigninvestors were allowed out tocarry itwas onlyment. Inmany following fields, the WTO-ac- level successfulinattractingforeigninvest- andisvery The ChineseGovernment putsalotofeffort atevery Development andgeneraloutlook Direct Investments China easesthelogistics channelsforexport. duced inChina Asian region market asanimportant for goods pro- ther, many companiesseethe inIPR-protection.Fur- Chinese authorities,inparticular that their increasing. There were alsoafew complaints fromSME environment iscomplicatedand, forthefuture,costsare petitive, therearestillmany restrictions,theregulatory for foreign companies there was alsomention ofthe forwhich the marketservices, isstillopening).However, provements environment inthebusiness for (inparticular and becomingmoreattractive asthereare im- andgrowingtioned thattheChinesemarket isimportant business climateisoverall positive companies doingbusinessinChinaestimatedthatthe ried outby theSwissEmbassy, over halfoftheSwiss In theiranswers toa industries arestillunavailable. onbilateralexchange intheservice liable figures Re- services. forSwissfinancial ate moreopportunities plementation timetable, cf.chapter2.1),shouldalsocre- in December2006(theendofthe5year WTO-rules im- banking market institutions to foreigninvested financial ous industries. The openingupofthedomesticretail potential ofthismarket market; ontheother, prospect forSwissbrandsandgoodstotapinabooming watches.to luxury Ontheonehand, thisisanexcellent luxury items demand for established andhighqualitybrands and hascreatedan consumptionpattern ernized haviour amongwealthier urbancitizenstoamorewest- The shiftoflife-styleandconsequently ofconsumerbe- mind thatthebusiness-cycle haspeaked insomeareas. alsobearingin instruments, andmanufacturing chinery to offer excellent prospectstoSwissproducersofma- problems are notbeingtaken seriously Foreigners are to stillexcluded orconfined – frompackagedfoodstobrandedclothes with significant potentialespecially if with significant of theeconomy. The withdrawal ofcap- Seco-survey forging andpirating reduces the : theclimateisextremely com- and bites into profits ofvari- and bitesintoprofits challenge that Chinasets in November 2005,car- East andSouth-East 11th five-year pro- . They oftenmen- increasing by the formation ofanexisting JVintoa formation WFOE istimeand wholly foreignowned (WFOE). enterprises The trans- more foreigninvestors totendtowards establishing hasinfluencedmoreand with theirChinesepartners various jointventures (JV)have experienced difficulties The looseningoflegal regulations andtheawareness that normal prudence bycertain Chineseauthoritiesonly seems privatization andM&Ainvolving bigstatecompanies foreign investors. As Chinaopensupnew avenues for state owned have enterprises always beenoff-limits to sitive sectorssuchasdefenseandmediawell aslarge witnessing a “backlash” with thegeneralviewmentators donotagree that we are curity” hasreinforcedthosefears.However, somecom- suchas“key and“nationaleconomicse- terms industry” scrutiny by theChineseGovernment. A lackofclarityon well besubjecttomuchtightercontrolandfurther nation orreversal ofthedeal.Futureacquisitions may merce. Failing withthisrequirementcouldentailtermi- ofCom- totheMinistry Chinese brandmustbereported trademarkorestablishedchange ofcontrolafamous tional economicsecurityoracquisitionswhich involve a in akey industry, acquisitionswhich mightaffect na- their new competences: Acquisitions ofatarget company have beenraisedabouttheuseauthoritieswillmake of clarify thecomplex environment, regulatory concerns has welcomed thenew regulations asthey somewhat tember 2006. (M&A)-regulations have entered intoforce on8Sep- plete” M&A remainsfragmentary, over-complex andincom- has shown, framework “theregulatory forcross-border by Seco, border mergers andacquisitions,co-financed (M&A). However, asarecentOECD-projectoncross- to createanactualmarket formergers andacquisitions conditionsinthespringof2004. der certain The goalis prises (SOEs)by foreign investors was madepossible un- cult toarrange. The acquisitionofstateowned enter- capital withdrawals fromdirectinvestments morediffi- markets asitmakes financial to attacksoninternational strains foreigninvestors butleaves Chinalessvulnerable oftengreenfield-investment. and very This systemcon- vertible, isn’tkets andbecause thenationalcurrency fully con- Due totheunderdeveloped stateofChinesestockmar- technology andcapitalinthelongrun. novation demand, aimedatreducingrelianceonexternal egy: development oflocalmarkets andindependentin- and measureslaiddown intheGovernment’s FDI-strat- the ness communityrecently about expressed theirconcern byported theStatemedia.Membersofforeignbusi- potential threattoChina’s economic security”,asre- industrieswhich areposinga eign businessesincertain fearof“emerging monopoliesbyaddress acertain for- porate tax-regimes haveThese measures beenunified. regulated incometaxlaw inthenew corporate where cor- no longerenjoy preferentialpoliciesinthecomingyears the value chain. Also, foreign-invested companieswill up from “quantity”to“quality”andpushitsindustry cided toshiftitspolicy ofattractingforeignbusiness implications ofraising “economic nationalism” 17 . to thoseobservers. foreign investment is90%direct investment Amended foreign Mergers & Acquisitions Although theforeignbusinesscommunity but claimthatnationally sen- a , Class of goods Import in CHF ∆ Import Export in CHF ∆ Export Trade balance 2005 2006 in %share (%) 2005 2006 in %share (%) in CHF 1 Agricultural products 64.680.600 98.678.143 52,56% 2,52% 24.250.909 21.421.201 -11,67% 0,52% -77.256.942 2 Energy carriers 53978 221023 309,47% 0,01% 565554 925076 63,57% 0,02% 704.053 3 Textiles, apparel, shoes 763.245.831 780.690.972 2,29% 19,90% 50.325.551 110.312.992 119,20% 2,69% -670.377.980 4 Paper, paper products, printed matter 27.135.563 25.303.061 -6,75% 0,65% 20.818.139 23.479.125 12,78% 0,57% -1.823.936 5 Leather, rubber, plastics 173.812.076 202.933.909 16,75% 5,17% 45.587.869 65.704.763 44,13% 1,60% -137.229.146 6 Chemicals, pharmaceuticals 466.608.348 518.053.161 11,03% 13,21% 652.405.242 761.182.679 16,67% 18,59% 243.129.518 7 Construction materials, ceramics, glass 45.375.900 59.403.205 30,91% 1,51% 7.814.967 9.419.186 20,53% 0,23% -49.984.019 8 Metals and metal products 180.710.573 284.084.193 57,20% 7,24% 175.370.881 183.830.373 4,82% 4,49% -100.253.820 9 Machinery, apparatus, electronics 778.709.172 967.542.835 24,25% 24,67% 1.621.404.124 1.859.624.827 14,69% 45,42% 892.081.992 10 Vehicles 47.781.474 45.772.327 -4,20% 1,17% 7.493.490 8.317.226 10,99% 0,20% -37.455.101 11 Precision instruments, watches, jewellery 470.580.764 579.822.763 23,21% 14,78% 594.757.517 674.895.394 13,47% 16,48% 95.072.631 12 Furniture, toys 288.032.079 347.005.528 20,47% 8,85% 21.618.064 20.578.834 -4,81% 0,50% -326.426.694 13 Precious metal, precious stones, gemstones 3.592.670 5.274.561 46,81% 0,13% 212.537.301 353.620.041 66,38% 8,64% 348.345.480 14 Objects of art and antiques 3.725.847 7.568.332 103,13% 0,19% 1.291.892 941.532 -27,12% 0,02% -6.626.800 Total 3.314.044.875 3.922.354.013 18,36% 100% 3.436.241.500 4.094.253.249 19,15% 100% 171.899.236 Bilateral trade Switzerland – Hongkong, 2005–2006

Class of goods Import in CHF ∆ Import Export in CHF ∆ Export Trade balance 2005 2006 in %share (%) 2005 2006 in %share (%) in CHF 1 Agricultural products 801392 703124 -12,26% 0,05% 32.874.593 30.927.869 -5,92% 0,66% 30.224.745 2 Energy carriers 585 1017 73,85% 0,00% 161368 107189 -33,57% 0,00% 106.172 3 Textiles, apparel, shoes 47.157.844 53.413.162 13,26% 3,67% 102.008.939 147.424.518 44,52% 3,14% 94.011.356 4 Paper, paper products, printed matter 2.374.659 2.816.147 18,59% 0,19% 8.615.104 7.901.552 -8,28% 0,17% 5.085.405 5 Leather, rubber, plastics 5.430.261 6.949.519 27,98% 0,48% 44.768.043 49.017.989 9,49% 1,04% 42.068.470 6 Chemicals, pharmaceuticals 10.009.147 11.382.274 13,72% 0,78% 303.206.457 378.601.466 24,87% 8,07% 367.219.192 7 Construction materials, ceramics, glass 1.322.472 2.130.804 61,12% 0,15% 14.874.493 19.125.656 28,58% 0,41% 16.994.852 8 Metals and metal products 10.173.558 11.277.482 10,85% 0,77% 53.677.914 59.538.790 10,92% 1,27% 48.261.308 9 Machinery, apparatus, electronics 214.823.035 184.316.188 -14,20% 12,65% 361.033.967 409.596.023 13,45% 8,73% 225.279.835 10 Vehicles 963107 1048534 8,87% 0,07% 1.837.703 372.997 -79,70% 0,01% -675.537 11 Precision instruments, watches, jewellery 311.663.876 548.908.263 76,12% 37,68% 2.131.259.679 2.417.225.122 13,42% 51,52% 1.868.316.859 12 Furniture, toys 6.257.269 7.374.307 17,85% 0,51% 32.430.705 42.657.713 31,53% 0,91% 35.283.406 13 Precious metal, precious stones, gemstones 779.514.702 606.703.666 -22,17% 41,65% 745.527.840 1.114.691.336 49,52% 23,76% 507.987.670 14 Objects of art and antiques 14.341.337 19.804.587 38,09% 1,36% 13.902.607 14.645.802 5,35% 0,31% -5.158.785 Total 1.404.833.244 1.456.829.074 3,70% 100% 3.846.179.412 4.691.834.022 21,99% 100% 3.235.004.948 Bilateral trade Switzerland – P.R. China incl. Hongkong, 2005–2006

Total 4.718.878.119 5.379.183.087 13,99% 100% 7.282.420.912 8.786.087.271 20,65% 100% 3.406.904.184 Source: Schweizer Oberzolldirektion, Swiss Impex 25 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 26 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY force behindChina’s surge. export flows inthepastfew years, hasbecomeamajordriving capacity,facturing mainly theresultofsurging FDIin- thorities decreased5.75%in2006. The strongermanu- number offoreignprojectsapproved by theChineseau- up4.47%from theprevious year lion inChina, In year 2006, can beendedatany time. tolerated by thelocalauthorities,butthisunderstanding a legal areaintentionally grey broughtaboutoratleast approved practicetheir activities of. in Thus many firms remains unauthorizeduntilitisexplicitly andofficially still standardpracticeinChinathatany businessactivity pared toSOEs stillfeelputtoadisadvantage com- participation, ployment, of theChineseeconomy, increatingem- inparticular oftheprivateportance development sectorforthefurther Although theGovernment acknowledges im- thecrucial and wholesale since11December2004 retail trade run WFOE intheareas ofdistribution, foreign investors have beenauthorizedtosetupand came intoforceon1JuneandJuly 2004respectively, the areaoftradeandchangestolaws onforeign trade investmentter measurestoadministrateinternational in erable administrative andhigh(compensation)costs. Af- again attempted, butisingeneralconstrainedby consid- China: ForeignDirectInvestment Source akCountry/Region Rank 0Ws ao .3 ,4 12,99% 2,44% 1.538 West Samoa 10 emn .7 ,4 29,32% -0,74% 7,60% -6,41% 2,55% 3,14% -29,58% -24,64% 3,39% 3,32% 4,55% 3,59% 7,30% 1.979 6,18% 2.136 2.095 2.865 2.260 4.598 3.895 Germany CaymanIslands 9 Taiwan 8 Singapore 7 USA 6 SouthKorea 5 Japan 4 3 ogKn 0233,1 12,73% 17,85% 32,11% 11.248 20.233 Virgin Islands HongKong 2 1 : MinistryofCommerce rvt uiess withorwithoutforeign private businesses, owy1,000%-49,70% -4,51% -89,51% 0,02% 0,31% 0,00% 13,20 196,60 0,30 Total Switzerland Norway Liechtenstein cln ,000%1366,67% -9,71% -5,16% 2,50% 0,00% 0,34% 5,32% 8,45% 2,20 212,30 3.351 5.324 Iceland EFTA ASEAN EU-15 foreign businesses invested US$63.0bil- . Insteadofhaving freedomoftrade,itis After the first year After thefirst . 18 FDI (mio.USD) 301100%4,47% 100,00% 63.021 2006 . The to 0.31%(US$ 196.6million). Switzerland’s share ofnew FDIinChinaamounted In2006, –24.64%and–6.41%respectively. –29.58%, and 4.55respectively) withadramatic slowdown of were 6.18% thenext largest foreign investors (7.3%, 2006 total). nationaloriginofinvestmentportant with17.85%of the cle occurswiththe Virgin Islands(thesecondmostim- andnowpurposes reinvest tothemainland. The samecy- placefortax from businessesthatleftChinainthefirst oftheinvestmentsproportion fromHongKong come tional origin(US$20.23billionin2006). A considerable Kong na- in2006,makingitby themostimportant far and the ASEAN region. 32.11%ofFDIcamefrom Hong businesses’investments China’s industrializationismainly fuelledby foreign pation. labour-force work withaforeignpartici- inbusinesses million Chineserepresentingabout10%oftheurban of themhave alsointhemeantimeshutdown. Over 23 622.4 billionin2005 themselves inChina,amountingtoa havebusinesses withforeignparticipation established Since thebeginning over ofthepolicy reforms, 400’000 ofthisyearquarter FDI continued togrow by 11.56%duringthefirst China’s since 1999ofdeclininginvestment in2005, Share (%) n20 aa,SouthKorea andtheUSA In 2006Japan, 2006 , amountingtoUS$15.89billion. . However, aconsiderable number , in particular outofHong Kong, inparticular Variation (%) year onyear total FDIofUS$ 24,67% seen as an opportunity forbusinesstoimprove.seen asanopportunity exports. developmentThe fast sectoris oftheservice tential while othersarebiddingonagrowing demandfor companies plantofocusonthedomesticmarket’s po- as growing andpromising.Intheproductionsector, some widen thescopeoftheirbusiness pleted theinfrastructure investment rently thatthey have doingso.Several specified 3.2.1 areplanningonexpanding theirbusinessorcur- that repliedtotheSeco-survey mentionedinsection A large majority(over ofthecompanies threequarters) itable. Western companiesactive inChinaclaimtobeprof- so clearly asetback. one ofthelargest obstaclesforforeignbusinesses,isnot market: atleastforthem,thelarge divergence ofcultures, for Taiwanese tobesuccessfulonthelocal businesses spective, sinceonewould expect thatitwould beeasier asonecansee,unpleasantfromaSwissper- ing is,asfar that theirinvestment inChina was profitable. This find- about broken even. Only 46.6%ofthecompaniessaid China surveyed answered thatthey hadlostmoney orjust tion, 41.7%ofthe1’644businessesthathadinvested in according toa2002studyby the Taiwanese administra- companies avoid However, disclosingsuchinformation. rate ofSwissorotherFDIdoesnotexist negotiation. betweenagreement thetwo underre- Statesiscurrently ance ofdouble taxation. The investment protection garding investment protection,mixed creditsandavoid- withChinare- Switzerland haseconomicagreements million saw adecreaseof4.51%over 2005. lion. In2006theactualSwissFDItotallingUS$196.6 toMarch2007withatotalvalueJanuary ofUS$110mil- ticipation in2006(1232005),and28projectsfrom 123projectswithSwisspar- (MofCom), Chinagranted Following ofCommerce indicationsoftheMinistry bassy inBeijingwere largely ignoredby theenterprises. since earlierinquiriesonthematterby theSwissEm- origin ofFDI national mostimportant Switzerland thefifteenth of directinvestments at around 55’000people. employing branches are represented inChina, withover about 300Swissfirms 700 At present, Bilateral investmentflows the owner ofwhole areasoftheindustry, itis alsooneof nomic activities tothedetailandsincestateremains The Chineseleadershipregulates allthecountry’s eco- Foreign economicpromotion instruments advertising” “Country Promotion Trade, Economic andTourism Representative dataabout thesuccess . However, thepreciseamountisunknown, Nowadays around two thirds of Estimates putthetotalamount vrCF5blin making over CHF5billion, . They seethemarket and now intendto because the com- Location:Switzer ing oftheworldwide SBH-network. SBH hasdoubled itsstaff-numbers thankstorestructur- of theEmbassyrequirescompetentstaff. Over 2006 the providedport by theEconomicandCommercialsection SBH’s andthediplomaticadvocating sup- services dynamic andgrowing market suchasChina–forthe –particularly ina The highdemandofSwissbusinesses onpresentationandtradefairs). and coaching;reports individualresentatives partners; consulting andimport market andproductanalyses; rep- searchofdistributors, their business relations withChina in theirendeavours ofstrengthening anddeveloping SBH-staff offer muchneeded March 2006. The specially trainedconsularandlocal branch attheConsulateGeneralinGuangzhousince a branchattheConsulateGeneralinShanghaiandnew since March2002attheSwissEmbassyinBeijingwith ness Network Switzerland”andhasbeenoperational oftheworldwideThe SBHChinaispart “OSECBusi- to Chineselaw in2001. As aresult,two national organi- tus ofanindependentchamber ofcommerceaccording 1995 andinShanghai1996. Beijing obtainedthesta- in Zurich1980andestablished abranchinBeijing setup Swiss-Chinese ChamberofCommerce was first about 800companiesandindividual members. The sectors. The network andfinancial industry consistsof members aretheleadingSwisscompaniesintrade, in SwitzerlandandChinarespectively. Among their China areprivate organizations ofassociationsregistered Swiss-Chinese ChamberofCommerceandSwissCham Cham China Swiss-Chinese ChamberofCommer investors entrepreneurs and among Chinesebusiness owners, businessness ofSwitzerland location asafirst-class tionships which have beenestablished and Sino-Swissrela- China. The aimistobuildonthefirm coordination withrepresentatives ofcantonsactive in Shanghai, GuangzhouandHongKong andhasincreased with thediplomaticandconsularmissionsinBeijing, opment activities inclose consultationandcollaboration Location:Switzerland “China”pursuesbusinessdevel- land asabusinesslocationtopotentialChineseinvestors. AG, Schaffhausen, tomanagethepromotionofSwitzer- Generis vestors, hascommissionedtheconsultancy firm agency inward responsibleernment forsupporting in- nomic exchange, Location:Switzerland, theSwissGov- Following thegrowing ofSino-Swisseco- importance Swiss BusinessHubChina(SBHChina) ment orreliefofsuchcontracts. roleinthearrange- 2006, –hastotake onaparticular sulate GeneralinGuangzhou,established inNovember Beijing, theConsulateGeneralinShanghaiandCon- representativeofficial ofSwitzerland–theEmbassyin for Swisscompaniesestablished inChina. tact withtheauthoritiesatevery level isthuscrucial actorsoftheeconomy.the mostimportant . land “China” services toSwiss SMEs (services include: (services ce andSwiss Regular con- raise aware- Further, the - 27 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 28 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 2020. ceding year) andisexpected toreach100millionby travelled abroadin2004(anincreaseof43%onthepre- try rise of(urban)incomesisthe A consequenceofthegrowing Chineseeconomy and the T awareness try withahighqualityoflifeandenvironmental internationally mindedcoun- land asaninnovative, the 2010 World ExpoinShanghai, on preparingforthe2008Olympic GamesinBeijingand the globaleconomy. Focus inthenearfuturewillbeset in continuestogainimportance tions while thecountry the populationinChinaordertocreatestrongerrela- awarenessfurther andunderstandingofSwitzerlandto in China. althoughlargely stereotypical image joys apositive, such asqualityandwell-being askey. Suisse isoneofaninnovating placingvalues country ones. The imagethatisbeingdepictedby Presence andarchitectural projects includingcultural,artistic Swiss awareness inChinaisraisedthroughanumberof Pr for development potential tourism, educationandotherservices, Interest forSwitzerlandasalocation panded. vestments beingdiscussedandwillbeex- iscurrently forex andlocalChinesecurrency. The scopefornew in- ofequity,ment intheform loansorinhybrid in forms, million uptoamaximumof33%therequiredinvest- inChina.SSPFcaninvestnese enterprises uptoCHF5 was jointventures tofacilitate between SwissandChi- velopment Bank(CDB). ofthefund The initialpurpose (SSVC), established between SecoandtheChinaDe- is managedby theSinoSwiss Venture CapitalCompany sponsored by theSwissandChineseGovernments. SSPF isadirect investment (venture capital)fundco- The Sino-SwissP companies. Swiss partner intheirdealingswith number ofChina-basedenterprises Swiss-Chinese ChamberofCommerceassistagrowing China. the globalsuccessofSwissbusiness community in Guangzhou). and withthreeinChina(Beijing,Shanghai gional branchesinSwitzerland(Zurich,Geneva, Ticino) zations areindependently operatedtoday withthreere- the riskoftravellers remainingin Switzerlandillegally. guidelines were atthesametimeputintoplaceto reduce crease inacceptingvisaapplications. New checksand policy inSeptemberthatyear, therewas anoticeable in- in2004.Followingernment theimplementationof the proved DestinationStatus Swiss tourismindustry. Switzerlandwas granted ourism esence Suisse for travel outsideofChina:28.84millionChinese 19 Therefore Chinaisakey futuremarket forthe Simultaneously, SwissChamChinaandthe The goalsofPresenceSuissearethustobring . Their purpose istopromote andsupport ar tner ship Fund(SSPF) (ADS) by theChineseGov- booming tourismindus- positioning Switzer- Switzerland en- Ap- It security, qualityandwell-being. destinations inthisrespect,butSwitzerlandalsoevokes for plasticsurgery. SouthKorea andBrazilarepopular peopletotravel leading certain the riskoffailure, abroad inChinamay increase inthisfield The lackofexpertise Other ser focused oninthenearfuture. initiatives topromoteeducationinSwitzerlandwill be some hotelandtourismmanagementschools.Several bad publicity duetoabuseswhich have taken placein ofstudyingabroadand costs, perceived limitedbenefit gone down inrecentyears. This ispartly duetothehigh tions, theoverall numberofstudentvisa demandshas interest inattractingChinesestudentstotheirinstitu- Though the(private) schoolsectorhasshown increasing MoU, cooperation. focussingonincreasedscientific Foreign MinisterMichelineCalmy-Rey signedanother country. DuringherOctober2006visittoChina,Swiss tostudyinthepartner Swiss studentstheopportunity cational exchanges newed their“MemorandumofUnderstanding”for In 2002,theSwissandChineseGovernments re- Hong Kong, couldpave theway mainlandcompanies summer 2005throughJohnson ElectricsHoldings,Ltd. vices, switches, motors,control componentsetc.)inlate companyMurten-based Saia-Burgess (electronicde- hospitality industries.However, theacquisitionof trading companiesandSMEs,notably and intheservice been modestwithChinesecapital investment mainly in Investment flows fromChinatoSwitzerlandhave sofar investment, potentialfordevelopment Interest forSwitzerlandasalocation emerging middle-classesinChinais thatisincreasinglyAnother service demandedfromthe Education 2008 oreven by theendofthisyear. underway, andapositive outcomeseemspossible by arestill the competentauthoritiesandrelevant airports tive talksbetween and majorChineseandSwisscarriers direct linkingChinaandSwitzerland flight What isstillseriously tourismisa lackingtofacilitate Shanghai thisyear, Guangzhoushouldfollow next year. Beijing in1998andasecondbranchwas openedin number ofJapanese.Swiss Tourism was established in nese overnights inSwitzerlandby 2009,overtaking the Swiss Tourism optimistically anticipates800’000Chi- autumn 2008isexpected beneficial tobefurther which shouldbecomeoperational in gen-Agreements, visa. Inthisrespect sulted incancellations.2006saw anincreaseto104’000 comply with inSchengenStates,which re- ADS-rules by to to irregularities Chinesetouroperators,failing 2005 saw adownturn toaround97’000visas,mainly due SARS-crisis inthatyear mustbetaken intoaccount). as many asin2003,althoughthenegative effect ofthe spent 230’000nightsinSwitzerland2004(over twice 117’216 visawere issuedtoChinesecitizenswho vices Switzerland’s entrytotheSchen- , which gives 18Chineseand36 cosmetic surgery . Respec- edu- : .

30 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY e www.eda.admin.ch/beijing [email protected] Web Email Embassy ofSwitzerland inChina AFFAIRS DFA FEDERALDEPARTMENT OFFOREIGN China, butthismay changesoon. exchange. Private bankingisstillprohibited inmainland nancial sectorprofessionalsfortrainingsandknow-how companies, regularly receive andfi- Chineseofficials inChinesebanksandinsurance minority participations and 2006. The leadingSwissbanks,which have acquired authorities inBeijing2005 met high-level financial oftheSwissBanking and theChairman Association have ident oftheGoverning BoardoftheSwissNationalBank tution were discussedamongothertopics.BoththePres- criminalityandillicitassetsresti- againstfinancial fight 2005.Swissexperiences ininternational place inJanuary consultations withrelevant authoritiestook financial sector. successfulroundofbilateral the financial A first bodiesof theNationalBankandregulatory ernment, is generally positive, especially withtheChineseGov- as thereissuchaperceptionamongthegeneralpublic – Switzerland’s location–asfar reputationasafinancial potential fordevelopment Interest forSwitzerlandasafinanciallocation, ofChineseworkforcetry areontheflip-side. foren- highliving-costs ofEurope,but andbarriers heart Switzerland isperceived asapremiumlocationinthe agency “Invest inSweden”. Like inother Asian countries which employs 20personsinChinaforitspromotional the UnitedKingdom,NetherlandsandSweden, petitors inEuropeincludeBelgium,France, Germany, vice sectorhave already generated results thecantonsandser- tion:Switzerland “China”, different ofSwitzerland parts lighted. With anumberofrecentChineseinvestments in ative Swisseconomy export-oriented are alsohigh- innov- withthevery centres. Cooperationopportunities andbusinesscontrol headquarters tion forinternational with emerging globalizingChinesecompaniesasaloca- Chinese market. Switzerlandismostactively advertized cantons intheirown endeavours demanding inthevery elaborated brochures,manualsandpresentations,assists development hasorganized somehigh-level seminars, outsystematicmarket analysis“China”, who carries and creasingly by sector. theservice Location:Switzerland sented inChinese,cf.section5.1),thecantonsandin- tion Switzerland(www.locationswitzerland.ch, alsopre- an investment locationarepromotedinChinaby Loca- ment’s Goingabroadstrategy. Switzerland’s strengthsas may gointhenext years following theChineseGovern- www.sccc.ch >News Full report withallcharts on: the jointefforts ofLoca- . Maincom- 19 World TourismOrganization Cf. Administrative methodforforeigninvestment18 inthe 17 China: Openpoliciestowards mergers andacquisi- 16 The picturelooksbrighterforSwitzerlandifthedata 15 discussedinthissectioncanbefound The figures Cf. Annexe oftheMinistry 14 3,which reproducesfigures Source: calculationsbasedonMofcom data,seeannexe 13 12 Hong Kong economicareaandinter- isanimportant US$ 451.728billion(US$328.184+123.544billion). 11 10 US$414.065billion.Source:ibid. Footnotes: 5 UBS hasalsotaken controlofstate-owned BeijingSe- 9 US$ 637.482billion(US$414.065+138.10185.316 9 Liu CommissionChairman China BankingRegulatory 8 7 Special Commenton„China’s BankingSectorOpen- 6 The Economist,19May 2007 4 of7.70wasThe psychological breachedon9 barrier 3 ChinaDaily, 11May 2007 2 Chinese commercialbanksareallowed touseup 1 ChinaDaily, 20 April 2007. ercise 100%managementcontrol. UBS willhave aminorityequitystake of20%itwillex- by manyAlthough intheacademicandpoliticalfields. 2006, althoughanti-privatization sentimentwas voiced curities, amid-sizedbrokerage company inDecember investment_areareg.pdf nata.com/consulting_services/investment/en_foreign_ commercial sectorofthePRC:http://www.prore- tions, OECDInvestment Policy Reviews, Paris, 2006. in Asia, aheadofJapan(3.63%). land’s market export andtradepartner mostimportant China (incl.HongKong) tothepositionofSwitzer- meanwhile4.74% ofglobalSwissexports, bringing toChina(incl.HongKong)Swiss exports madeup toCHF5.38billion.In2006, lion in2006,andimports added. Altogether, amountedtoCHF8.79bil- exports for thetradebetween SwitzerlandandHongKong is annexe 4. use datagatheredby theSwisscustomsauthorities. about bilateraltradeSwitzerland–China/Hongkong of Commerce(MofCom). Annexe 4andsection3.2.1 ofthePRC”. 3 “Bilateraltradingpartners special administrative region (SAR). which clearlyports, shows inthetradestatisticsof oftrans-shipmentforChineseex- ticular roleasaport initsownnational tradepartner rightbutplays apar- Source: ibid. Customs ofPRC. billion) or65.7%.Source:General Administration of stitutions by theStateCouncil,15November 2006 on the Administration ofForeign-funded Financial In- Mingkang’s speechaboutthenewly revised Regulation –GlobalCreditResearch,NovemberServices 2006 ing Under WTO Commitments“,Moody’s Investors band againsttheUSDfrom0.3to0.5percent. May thatitwould widentheRMB’s daily floating 11 of 5.4%sinceJuly 2005. The PBOCannouncedon May 2007witharateat7.69,meaninganappreciation 2007). kets (UBSInvestment Research, Asian Focus, 11May Investor (QDII)quotastoinvest inoverseas equitymar- DomesticInstitutional 50% oftheirexisting Qualified Munich International Trade Fairs. Your gateway to the world market.

Dates At the New Munich Trade Fair Centre 2007/2008 8–10 July 2007 ISPO SPORT & STYLE*hl Extract 8–10 July 2007 ISPOVISION*hl International Trade Show for Sportstyle—Fashion inspired by Sports 13–20 Sept 2007 ITMA International Exhibition of Textile Machinery 7–9 Oct 2007 GOLF EUROPE 2007*hl 15th International Trade Fair for Golf 8–10 Oct 2007 EXPO REAL 2007*hl 10th International Commercial Property Exposition 16–18 Oct 2007 MATERIALICA 2007 h 10th International Trade Fair for Materials Applications, Surface Technology and Product Engineering 23–26 Oct 2007 SYSTEMS 2007*l IT.Media.Communications Autumn 2007 MINERALIENTAGE MÜNCHEN 2007 44th International Sales Exhibition (BÖRSE) and German Geological Trade Fair (GEOFA) 13–16 Nov 2007 PRODUCTRONICA*l 17th International Trade Fair for Electronics Production 11–13 Jan 2008 OPTI MÜNCHEN 2008h International Optics and Eyewear Exhibition 27–30 Jan 2008 ISPO – Winter*hl International Trade Fair for Sports Equipment and Fashion 27–30 Jan 2008 ISPOVISION*hl International Trade Show for Sportstyle—Fashion inspired by Sports 15–18 Feb 2008 INHORGENTA EUROPE 2008*hl 35th International Trade Fair for Watches, Clocks, Jewellery, Precious Stones, Pearls and Technology 28 Feb–5 Mar 2008 INTERNATIONALE HANDWERKSMESSE 2008*l International Trade Fair for Small and Medium-Sized Enterprises 1–4 Apr 2008 ANALYTICA 2008*l 21st International Trade Fair for Instrumental Analysis, Laboratory Technology and Biotechnology and analytica Conference 15–17 April 2008 AEROSPACE TESTING EXPO EUROPE 2008h International Trade Fair for Aerospace Testing, Evaluation, Quality and Inspection 5–9 May 2008 IFAT*l 15th International Trade Fair for Water, Sewage, Refuse and Recycling 10–13 June 2008 AUTOMATICA 2008l 3rd International Trade Fair for Automation: Assembly—Robotics—Vision

At the M,O,C, 29–30 July 2007/ ABC-SALONh February 2008 Orderdays for Evening, Bridal and Cocktail Fashion 4–6 Sept 2007/ MUNICH FABRIC STARTh February 2008 International Fabrics Fair 5–7 Oct 2007/ MODA MADE IN ITALYh April 2008 International Trade Fair for Shoes 16–18 Oct 2007 MAINTAIN 2007 h International Trade Fair for Industrial Maintenance 9–11 Nov 2007 FORUM VINI International Wine Fair Munich INTERMESS 20–22 Nov 2007 OILS + FATSh International Trade Fair for the Production and Processing of Oils and Fats DÖRGELOH AG made from Renewable Resources 1–5 May 2008 HIGH END 2008 Zürich HiFi.Hometheatre.Installation Tel. (043) 244 8910 Outside Germany intermess@ doergeloh.ch 6–9 Sept 2007 SPEh Shenzhen, China www.doergeloh.ch 13–16 Oct 2007 ELECTRONIC ASIA 2007*h Hong Kong, China 5–7 Nov 2007 EXPO REAL ASIAh Macau, SAR Macau hTrade visitors only Winter 2008 ISPO CHINA Winter 2008*h Beijing, China *ufi approved event 18–20 Mar 2008 ELECTRONICA & PRODUCTRONICA CHINA 2008h Shanghai, China lFKM approved 18–20 Mar 2008 LASER. WORLDOFPHOTONICSCHINAh Shanghai, China Subject to alterations May 2008 BAKERY CHINA 2008 Shanghai, China 23 April 2007 17–19 June 2008 TRANSPORT LOGISTIC CHINA 2008h Shanghai, China 32 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG of totalattheMainBoardin2006.HongKong surpassed China-related stocksreachedUS$809.7billionor48% Market capitalisationof centre forChineseenterprises. tional total.HongKong isakey offshore capital-raising US$ 260billionin2005,accountingfor42%ofthena- of which thestockofutilizedcapitalflow amountedto the largest sourceofoverseas directinvestment inChina, (31% oftotal)in2005.Ontheotherhand, HongKong is vestment inHongKong. ItreachedtoUS$163billion foreign tradeishandledviaHongKong. entrepôtforChinaandabout21%ofChina’sportant opment Council(HKTDC),HongKong isthemostim- ties inChina. According totheHongKong Trade Devel- Kong have manufacturers established productionfacili- to outward processingactivities. Morethan80%ofHong Hong Kong’s tradewithChinaistoalarge extent related Economic integrationwithMainlandChina to US$97billionin2006 US$ 649billionwhereas totalservicetrade grew by13% ternal factors, totalmerchandise trade grew by10.5%to covery, risingby1%in2005and2%2006. As for ex- gradually edgingupalongwiththesolideconomicre- years ofdeflation,consumerpriceshavebeen than five dropped to4.3%inDec.2006–Feb. 2007. After more ing almost9%in2003,fell to5.6%in2006andfurther increasing assetprices. The unemployment rate, reach- employment prospects, mildincrease inreal wages and to reach US$115.7billionin2006,ontheback offirmer growth in2005,privateconsumptionperked upby5.1% 7.5% in2005and6.8%2006.Following a3.3% nomic growth. RealGDPexpandedby8.6%in2004, Hong Kong hasexperiencedthree years ofstrong eco- Economic Report:HongKong2006 lion. count for 54% oftotaltouristarrivals,reached 13.6mil- timated toreach US$15billion.Mainlandvisitors, ac- total expenditure associatedtoinboundtourismwas es- HK in2006. According totheHongKong Tourism Board, (+8%), or3.7timesthesizeoflocalpopulation,cameto On onehand, Chinaisthelargest in- sourceofexternal 3 coverFinancial services investment de- bankingservices, audiovisual, airport, Itincludesaccounting,advertising, 2 areonyear-on-year in%mentionedthisreport 1Variations mark agency andtransport. warehousing, securitiesandfutures,telecom,tourism,trade storageand examinations, realestateandconstruction, ical anddental,patentagency, professionalqualification termediary, legal, logistics, managementconsulting, med- technology,formation agency, insurance,jobreferral jobin- freight forwarding agency, individually owned stores,in- banking, cultural,convention andexhibition, distribution, basis, unlessotherwisestated. consultancy services, foreign exchange services andetc. foreignexchangeconsultancy services services, financial services, trust managementservices, portfolio securityandcommoditybrokerage services, posit services, 1 . A totalof25millionvisitors Hong Kong hadtomove upthesupply chainandformer A few localprominentbusinessleaderswarned that Necessity tomove upthesupply chain reduction targets by 2010. emission agement Planwhich aimstoachieve specific have the PRDRegional formulated Air QualityMan- Government andtheGuangdongProvincial Government panies intheterritory. Onregional level, theHKSAR and emissioncapsareimposedonthetwo power com- tricity generationisthebiggestsourceofairpollution to reduceemissionsfromthepollutingsources.Elec- controls hasintroduced measuresandstatutory ernment Pearl River DeltaPRD. Onlocalfront,theHKSARGov- the rapideconomicandindustrialdevelopment inthe and power plantsandregional airpollutioninlinewith air pollution,namely, localpollutioncausedby vehicles ticularly inrespecttoair quality. There aretwo typesof Hong Kong acuteenvironmental isfacing pollution,par- Environmental issue global economy, theUSDisrightanchorcurrency. the centre andfacing Kong finance isaninternational the RMBisnotfully convertible. Secondly, asHong instead ofapeg withRMB. First andmostimportantly, itscommitmenttomaintaintheUSdollarpeg reaffirmed toChina,theHKSARGovernmentmore integrated has Even thoughtheHongKong economy isnow moreand US Dollarpeg (GST) afterencounteringmany oppositionvoices. introduction ofacontroversial Goodsand Services Tax 2006/07. The HKSARGovernment stoppedtolaunchan year willreachUS$7billioninthefiscal idated surplus ery. The HKSARGovernment forecaststhattheconsol- improved notably asaresultofstrongeconomicrecov- positionoftheHKSARGovernment has The financial Public Finances suppliers in 27 service areas suppliers in27service ment andprovides preferentialtreatmenttoHKservice gives allproductsofHongKong origintariff freetreat- areintroducedinphases.Inbrief,China and new benefits and cameintoeffect sinceJan.2004.Itevolves over time between ChinaandHongKong. Itwas signedin2003 (CEPA) ever signed regional tradeagreement isthefirst velop HongKong asanoffshore RMBcentre. steptode- 2007. Itisregarded asasignificant January tions toissueRenminbi(RMB)bondsinHongKong in institu- mainlandfinancial The StateCouncilpermitted indeed fuelledby listingsofmega mainlandcompanies. Offerings (US$40billion),afterLondonin2006.Itwas New York asthesecondbiggestmarket forInitialPublic The Closer Economic Partnership The CloserEconomicPartnership Arrangement 2 . Hong KongTrade DevelopmentCounci Sources: HongKongCensus&StatisticsDepartment, imported toHKamounted1.55billion in2006. the lattercase“bycountryoforigin”, watchesofSwissorigin to HKfromSwitzerlandamounted US$1.4billionin2006.In ches importedtoHK.Incaseof“by country”, watchesimported and “bycountryoforigin”. They citedanexample ofSwisswat- partly duetothedifference ofcalculationsbetween“bycountry” (+19%). The HKCSDexplainedthatthedeviationmightbe Hong KongexportstoSwitzerlandgrewUS$1,603million imports toHongKongdroppedUS$3,606million(-1.7%)and Hong KongCensus&StatisticDepartment(HKCSD),Swiss 1,457 million(-13%)in2006.Ontheotherhand,accordingto whereas HongKongexportstoSwitzerlanddroppedCHF imports toHongKongreachedCHF4,692million(+17%) According totheSwissFederalCustoms Administration, Swiss Government andtheSwissFederalCustoms Administration. between theCensus&StatisticDepartmentofHKSAR **There isasubstantialdeviationinthebilateraltradefi *Variation in%comparedtopreviousperiod Hong Kong:EconomicPartners2006 0Piipns52716+6.7 +14 1.6 +5.6 2 +3.6 5,237 +16 2.3 6,805 4.8 +16 14 +22 7,736 4.6 Philippines 15,842 10 7.5 Germany 15,339 6.3 9 Thailand 8 24,989 Malaysia 21,133 7 Korea Rep 6 USA 5 Singapore 4 Taiwan 3 1Cia12934 +14 46 34,377 152,943 Japan 2 China 1 0Fac ,7 . +5.2 1.4 -3.7 +6.3 4,275 2 +3.3 1.7 +7.5 3 2.1 +4 2.1 5,262 6,232 +1.6 22 9,440 +2.9 6,680 6,650 France 3.1 4.9 10 15 Netherlands 9 Singapore 9,700 15,439 8 Korea 47,581 Rep 7 Taiwan 148,232 6 UK 5 Germany 4 Japan 3 USA 2 China 1 U2,5 . +7 7.3 24,258 Total Switzerland** EU U4,5 4+5.1 Country 100+9.4 14 315,516 44,151 Total Switzerland** EU Country

3,0 0 +12 100 333,308 Imports Exports ,0 . -1.7 1.1 +8.2 3,606 1.7 5,696 ,0 0.5+19 1,603 (USD millions) (USD millions) Country of Origin Country of Origin 0+4.5 10 Share 47 +14 Share (%) (%) gures Var.* +4.4 Var.* (%) (%) plier inthiscategory. (US$ Itconsisted oftransportation in2005.Switzerlandranked 21stlargestof services) sup- reached toUS$242million(–5%, 0.7%oftotalimports (US$ 153million). (US$130 million)andotherservices related services vices (US$126million),merchantingandothertrade- ser- (US$0.4million),financial lion), insuranceservices (US$193 million),travelof transportation (US$31mil- market forHongKong’s Itconsisted of services. exports available Switzerland ranked 14thlargest information). in2005(latest ofservices) 4.8%,1%oftotalexports (+ vices toSwitzerlandamountedUS$633million According totheHKCSD, HongKong’s ofser- exports Bilateral trade inservices largest market. export land was HongKong’s 14thlargest supplierand22nd ofHongKonglargest tradingpartner in2006.Switzer- of total,grew by 16%,CHF49million invalue). CHF 184millioninvalue) (3% andtextiles andgarments lion invalue), machines (13%oftotal,decreasedby 15%, clocks (17%oftotal,decreasedby 10%,CHF242mil- creased by 16%,CHF905 millioninvalue), watches and cluded jewellery &preciousmetal(62%oftotal,de- in- CHF 1.45billion(–13%)in2006.Majortotalexports lion). matter (US$32million)andmachinetools31mil- (US$36million),colouring million), textile machinery clocks (US$173million),silver andplatinum(US$49 Hong Kong in2006.Majorproductswere watches and million (grew by 18%)were toChinavia re-exported gions andnotably toChina.Swissgoodsworth US$610 Hong Kong were toothercountriesandre- re-exported to ment (HKCSD),about40%oftotalSwissexports cording totheHongKong CensusandStatisticsDepart- total, increasedby 25%,CHF361millioninvalue). Ac- value) products(8%of andchemicalpharmaceutical (9% oftotal,increasedby 15%,CHF420millionin creased by 31%,CHF1.5billioninvalue), machinery in value), jewellery &preciousmetal(32%oftotal,in- clocks (42%oftotal,increasedby 9%,CHF1.9billion includedwatchesin 2006.MajorSwissexports and toHKtotalledCHF4.69billion(+17%) Swiss exports According totheSwissFederal Customs Administration, Bilateral trade ingoods remote region, oratworst, wrappeduptheirbusiness. moved upthesupply chain,moved tooffshore oramore have comeintoeffect. HongKong businessmeneither more stringentregulations on environmental protection the last2decadeshaspushedproductioncostupand tremendous economicdevelopment onthemainlandin paid littleattentiontoenvironmental aspects. The cost onthemainland, particularly inthePRDregion and Hong Kong entrepreneursmadeuseoflow production business modelsmightnotwork any more.Inthepast, Hong Kong’s fromSwitzerland ofservices imports According totheHKTDC,Switzerlandwas the17th Hong Kong’s toSwitzerlanddropped totalexports (continued onnext page) 33 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG 34 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG been manufactured to the extent that its classification in totheextentbeen manufactured thatitsclassification characteristics ofproductsconcerned. having“value-added orarule regard content”rule, tothe ucts follow eithera“Changein Tariff a Heading”rule, low oforigin. process-basedrules The remainingprod- and met. and upontheCEPA oforigin(ROOs) rules beingagreed free treatment,uponapplicationsby localmanufacturers tariffproducts ofHKorigin(except prohibitedarticles) Under thethreephasesofCEPA Trade ingoods nies. as itcanalsobeofconsiderable helptoSwiss compa- tioning andtocallitskey pointstoattentiononcemore be interesting tomakeashortassessmentofitsfunc- trade andinvestment facilitation. After three years itmay eas, namely 1)trade ingoods, 2)trade inservicesand3) arebenefits introduced inphases.Itcovers 3broad ar- into effect from Jan. 2004.Itevolves over timeandnew China andHongKong. Itwas signedin2003andcame ever regionalis thefirst trade agreement signedbetween The CloserEconomicPartnership Arrangement (CEPA) CEPA-Update betweenChinaandHongKong services andfinancial services centre.Demandforlogistic trade, logistic andfinancial (US$100million). million) andotherservices (US$1.5 merchanting andothertrade-relatedservices (US$22million), services (US$ 24million),financial 48 million),travel (US$46million),insurance services ranked 15thlargest investor in2005. country As at1st Hong Kong droppedtoUS$3.2billion(–11%)and According totheHKCSD, Swissdirectinvestments in Swiss direct investments services. vice industries,particularly infinancial whereas Switzerlandisknown foritsexcellence inser- “Change in Tariff Heading”meansthataproducthas CEPAThe majorityofproductswithagreed ROOs fol- Hong Kong wants topositionitselfasaninternational 2 audiovisual, airport, It includesaccounting,advertising, CEPA1 I,IIand IIIwere signed in2003,2004and2005re- trade markagency andtransport. warehousing, securitiesandfutures,telecom,tourism, storageand tion examinations, realestateandconstruction, medical anddental,patentagency, professionalqualifica- intermediary, legal, logistics, managementconsulting, technology,formation agency, insurance,jobreferral job freight forwarding agency, individually owned stores,in- banking, cultural,convention andexhibition, distribution, spectively. 3 are expected toincrease 1 , Chinahasgiven all suppliers in 27 service areas suppliers in27service toprovideagreed preferentialtreatmenttoHKservice Taking thethreephasesofCEPA together, Chinahas Trade inservices pected toincrease. clothing, watches, medicalandhealthproducts,areex- suchasfood, products witha‘madeinHongKong’label, wealthy middleclassinChina,thedemand forquality China tariff-free. With theemergence ofanincreasingly 2006, goodsworth US$859millionwere to exported (TID), sinceitsimplementationinJan.2004toDec. registered company inHongKong. Kong (OBM)oraforeignbrandwholly acquiredby a istered brandsmay includeabrandoriginationinHong be theregistered owner oftheir brands;andiii)thereg- brand namegoodsunderthe Trade Marks Ordinance,and pany musthave completedtrademarkregistration oftheir registration foratleastoneyear;tion andfactory ii)com- company inHongKong withavalid business registra- for watches: i)owner ofthebrandmustbearegistered aCEPAare 3criteriadetermining “HongKong brand” of the“HongKong brand”requirement. filment There theprocessofassemblyquired toperform plustheful- Hong Kong brandnames. Watch arere- manufacturers 30% value-added content requirementforwatches of goods. than orequalto30%oftheFOBvalue oftheexporting development inHongKong costsincurred beinggreater labourcostsandproduct terials, componentparts, referstothetotalvalueadded content”rule ofraw ma- oftheconstituentmaterialsused.“Value-sification inadifferentfalls four-digit tariff headingfromtheclas- the World System CustomsOrganization Harmonized Webpage: www.eda.admin.ch/hongkong E-mail: [email protected] Consulate General ofSwitzerland inHongKong Trade Section Summary by Wing Kai,Chan trade between Switzerland andHongKong seepage 25). (Notes from theeditor: For figures regarding bilateral inHongKong. set uptheirlocaloffices andanother68Swisscompanies their regional offices inHongKong.headquarters 68Swisscompaniessetup June 2006,42Swisscompaniessetuptheirregional According tothe Trade Department and Industry In caseofwatches, China relaxes by therules waiving 2 . Broadly speaking,thelib- (continued onpage 36) OUR VISION: REINVENTING LOGISTICS FOR THE 21ST CENTURY.

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www.dhl.ch 36 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG co-operation intradeandinvestment inseven facilitation Both ChinaandHongKong have onenhancing agreed Trade andinvestment facilitation were stillpuzzlestosolve. general, theiroperationbecamesmootherthoughthere practical experience andmoreopennessofChinain in different cities,provinces andetc. After someyears of andregulations. pretation ofrules Also, problems varied anddifferent inter- regime, unpredictable modification reaucracy, different legal system,sophisticatedtax experience, they hadtoencounterproblems suchasbu- ipalities, citiesandlocalauthorities. According totheir implementation was down tovarious provinces, munic- Central Government andHKSARGovernment andits However, CEPA was signedbetween anagreement the totheirbusinessinChina. ful, positive andbeneficial” under CEPA, mentionedthatCEPA asawhole was “use- consultancy. andmanagement construction advertising, tribution, The mostpopularsectorsarelogistics dis- andtransport, taxandiv) itemploysHK profits 50%ofitsstaff locally. 3–5 years (dependingonsectors);iii)itisliable topay inHK;ii)ithasoperatedfor criteria: i)itisincorporated company ifthecompany inquestionmeetsallthe ified nies canapply SupplieroraCepa-qual- asaHKService vice provider ofany nationalityincludingSwisscompa- to launchtheirbusinessinChina. Any company orser- nies” toenable themtoapply tothe Chineseauthorities Kong Suppliersto1,034“HongKong Service compa- business orprovide there. services companies andlower thethresholdsforthemtosetup the businessscopeallowable inChinaforHongKong nounced inmid-2006,areexpected tohelpandexpand 10 areasalreadycovered by CEPA, which was an- WTO liberalizationmeasuresin commitments.Further theconcessionsgobeyonddistribution services, China’s and sectors, like audiovisual services transport services, ers toChina,aheadofChina’s WTO timetable. Insome suppli- earlieraccessforHKservice eralization permits A Swisscompany, Supplier asaHKService qualified ofHong Until Jan.2007,the TID hasissuedCertificate Hong Kong:10Years sinceHandover the economy representsthebiggest positive change Principal Officials. Kong’s ChiefExecutive, MrDonald Tsang, andthe day visitonthisspecialoccasion,swore inHong Mr HuJintao,who cametoHongKong onathree- guests. PresidentofthePeople’s Republic ofChina, formally inauguratedinthepresenceofsome 2,000 istrative Region (HKSAR)Government was niversary, HongKong thethird-term Special Admin- ple’s Republic ofChina. Along withits10than- as aSpecial Administrative Region (SAR)ofthePeo- On July decade 1st2007,HongKong marked itsfirst Hong Kong peoplebelieve thatanimprovement in erates its integration withtheworlderates itsintegration economy. dards oftheirdeveloping industriesandaccel- services sumers (tradeingoodstariff free)andenhancesthestan- both economies. to andbeneficial suppliers.Itiscomplementary service CEPA offer forHongKong new opportunities business China’s sectorsunder liberalizationmeasuresinservice productionaccountsforabout40%ofChina’stiary GDP. production accountingfor90%ofitsGDP)whereas ter- million Chinesetouriststravelled undertheIVS. Chinese touriststoHongKong in2006,morethan6.6 lion in2004and2005respectively. Outof13.6million ditional spendingofUS$823millionand1,269mil- ual visitscheme(IVS)forChinesetouristsbroughtad- in HongKong. Undertheframework ofCEPA, individ- CEPA played roleintheirdecisiontoinvest animportant halfof2006,23%indicatedthat Hong Kong inthefirst Out ofthe156foreigncompaniesnewly established in twofor HongKong years ofimplementation. initsfirst vices receiptsandUS$705millionincapitalinvestment ated 29,000jobsandgeneratedUS$692millioninser- from Chinesecompaniesandmultinationalcompetitors. they haveertheless, intensifyingcompetition toface tohaveand services aneffective accesstoChina.Nev- CEPA offers forHongKong agoodplatform products Economic Benefits lion. Hong Kong, withinvestment totallingover US$2.2bil- prises have obtainedapproval tosetupoperationsin streamlined. Untilmid-2006,about380Chineseenter- toinvestChinese enterprises inHongKong have been toms clearancefacilitation. Application proceduresfor areas includingtradeandinvestment promotionandcus- www.hketolondon.gov.hk of theHongKong Economicand Trade Office: More information is also available onthewebsite view ofHongKong 10years later. pany TNS. lic perceptionsby com- globalmarket information coming tenyears, accordingtoanew studyofpub- timistic aboutthefutureofeconomy over the in thetenyears sincethehandover, andthey are op- As far asChinaisconcerned,As far CEPA theircon- benefits Hong Kong economy isaservice-oriented (tertiary According totheHKSARGovernment, CEPA hascre- TIME afairly comprehensiveAsia alsocarried Consulate General ofSwitzerland inHongKong By Wing Kai,Chan Trade Section watch withabout6,500m manufacturers Kong was and132 representedby 166jewellery firms shows attractedabout102,000visitors.Hong thatthefair BASELWORLDThis tallieswiththefinal which report, creased bymore than50%. of theprevious year, thosenegotiated atthefairin- cess. While direct orders were already 20%uponthose ment when thetrade fairendedthatithadbeenasuc- Trade Development Council(HKTDC)were allinagree- 326 exhibitors undertheauspicesofHongKong WORLD 2007(12–19 April) camefrom HongKong. The Once again, thelargest foreign pavilionatBASEL- Hong KongatBaselworld2007 HKTDC). Watch” willconstantly guard yourvaluables (Credit: Fat Tat Lee Watch Co. Ltd.offers new technology: “Smart trading metropolisarenow exhibiting theirown brands fromtheSoutheast More andmoremanufacturers Asian dustries usually achieve thebulkoftheirannualturnover. ung. It’s therethatHongKong’s jewellery andwatch in- forthesetwo tradefair important industries”,saidChe- orders thanintheprevious year”, saidCheung. USA, CanadaandIsraelplacedabout20%moredirect Europe(Russiaaboveeastern all),theMiddleEast, design inBaselthisyear. Customersfromwestern and really outdidthemselves inqualityand Main. “Ourfirms am inFrankfurt Cheung, DirectoroftheHKTDCoffice their own brandsinHalls2,3and5. went down exhibited well. HongKong 20further firms (15 exhibitors) withbotha classicalandaflashierlook andthecreative(13 manufacturers) packagingdesigns jewellery collections. The watch andcomponents parts hadbroughtalltheirlatesthighqualitywatch and firms in Hall6. The goodsexhibited were rightontrend, asthe “BASELWORLD isandremainsHongKong’s most “Good designbringsgoodbusiness”,said Winchell 2 of floorspace ity platinumand diamondjewellery, thatlux- confirmed Hong Kong jewellery supplier, known foritshighqual- the mostbeautifulthinginthis fair.” made frompauashell.“Iamabsolutely thrilled. That is Jewellery standashelooked atthedolphinjewellery Dubai, ManagerofQahtanJewellery, ontheRadiance itors especially favoured unusualdesigns. ness was 20%uponthatoftheprevious year. Trade vis- tion that,inspiteofthesmallnumberUSbuyers, busi- a HongKong Watch withsatisfac- Association reported Hang, DirectorofNGACompany of Ltd.andChairman overwhelmingly frompositive toenthusiastic. Tse Wai views ranged onthefair The HongKong exhibitors’ to Hall6 Views ofexhibitorsandbuyersontheirvisit for thetwo HongKong industries”(Credit: HKTDC). Frankfurt amMain: “Basel isstillthemostimportantfair Winchell Cheung, Director in oftheHKTDCoffice Hong Kong andChina. individual adviceonestablishing businesscontactswith mier ConnectBusinessMatchingService. This offers standsinHalls6and2aboutthenewformation Pre- tion aboutHongKong fromthein- productsandservices visitors. soughtinforma- About 1,300interestedparties in higherqualitymarket segments. this asagoodsign.HongKong strides ismakinggreat in theotherhallsoffair. The HKTDCdirectorsees Albert Hui,DirectorofOctagonJewelleryAlbert Co.Ltd.,a by tradevisitorJawadThis was confirmed Ali from The HKTDC offers its services to international trade The HKTDCoffers tointernational its services 37 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG 38 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HONG KONG over theEuropeanmarket. The HongKong jewellery egy ofKTLJewellery Ltd.forwinning Manufacturer ket. as well asanimalandflower motifsfoundareadymar- segment, jewelleryury infeminine andromanticforms signs were increasingly influencedby Inthelux- fashion. was alsotitaniumasamaterial. As withwatches, thede- set withcolouredjewels were againinstrongdemandas ish oreven pinktonesisgaininginpopularity. Creations and asacomponentofZenBuddhism. tion, qualitiesthataretraditionalbothinDanishdesign elabora- and withoutunnecessary simple, harmonious are formalistically austerewithwell matchedcolours, designers ChristianMikkelsen andLauLiengårdRuge teaching) proves theopposite:watches oftheDanish collection (TheObakuschoolisabranchofBuddhist However, apart. sightfar which seematfirst theObaku combines ZenBuddhismwithDanishdesign–cultures Watches behindtheproductand CoLtd.hintsatastory signs.” creation. WeWatch’ willbebacknext year withnew de- enthusiastic aboutthenew functionsofourown ‘Smart tion inBASELWORLD 2007,said:“Buyers were very pany, participa- speakingaboutthesuccessofherfirst metres. Ms Angie Wong oftheFat Tat Lee Watch Com- tant thingsandemitsasignalover adistance ofupto6 like technology helpsthewearer toavoid losingimpor- day accessories. The “Smart Watch” withitsBluetooth- products notonly measuretimebutarealsousefulevery- offers goodqualitybutalsousefulnew technology. The turer Fat Tat Lee Watch Co.Ltd.,forexample, notonly tion watches withspecial features. The watch manufac- rubies. cious stonessuchasdiamonds,emeralds,sapphiresand HongKong’ssport. watches luxury arestuddedwithpre- as jewellery, items,foreveryday asfashion useorfor stainless steel,dependingonwhether they areintended a comebackrecently butthey arealsomadeofplasticand made ofthewidestvariety ofmaterials:leatherhasmade gance arebecomingmoreimportant. The wriststrapsare Besides anattractive price,innovative designsandele- hearts. The decorationsandwriststrapswere hand-made. unusual casingdesignssuchasflowers, tears,eggs and whelming. HongKong’s watch camewith manufacturers Hong Kong’s productrangeexhibited inBaselwas over- BASELWORLD trendsat Hong Kongwatchandjewellery ing upwithnew modelshereinBasel.” Finland peoplelike fashionable watches soIamstock- and, ofcourse,alsothegoodprices.In ity ofthefirms business together andIlove thedesignsandflexibil- forthelast15years. “Itiseasytodo Hong Kong firms tajousi, explains why shehasbeenhappy towork with Kul- sanna Soini,productmanageroftheFinnish firm, double thatoflastyear. bought.Businesswas itemstoppedthelistofarticles ury Building bridgesbetween Europeand Asia isthestrat- In thejewellery sectorthenew goldalloys inbrown- With thetagline“A Watch Comtech tellsaStory”, The trendinthewatch istowards industry multifunc- wereBut fashionable articles alsowell received. Su- jewellery fair. sented by alarge delegation atthenext world watch and year’s BASELWORLD. HongKong willagainberepre- reached avalue ofUSD 303millionin2006. with thehighestgrowth. Watch toGermany exports of10.2%and8%respectivelyports were themarkets Once moreSwitzerlandandChinawithagrowth inim- the statisticsshow thatwatch grew exports by 1.8%. second biggestwatch intheworld. exporter A glanceat other goodyear canbeexpected. around 20%annually. indicatethatan- Ordersatthefair been onasteadyupward growth pathwithexport of 13.7%. Since2002HongKong’s jewellery has industry jewellery hadalreadyachieved industry agrowth of and goodfortune. Total ofHongKong’s exports luxury jewellery economicsuccess andwatch further industry The year ofthepigseemstobebringingHongKong’s high Hong Kong’s riding andwatchindustry jewellery Business contacts: http://sourcing.tdctrade.com Web: http://www.tdctrade.com/ E-mail: [email protected] Phone: 0049-69-95772-112 Daniela Konrad, HKTDC Contact: business. ternational andchallengesofin- tion understandstheopportunities worldwide,offices including12inChina,theorganiza- using HongKong’sfirms tradeplatform. With over 40 tional tradeandincreasethecriticalmassofinternational HKTDC istogrow HongKong’s businessininterna- tradeingoodsandservices. external The missionofthe organization forpromotingHongKong’sis thestatutory The HongKong Trade Development Council(HKTDC) Hong KongTrade Development Council(HKTDC) and astonecanbeexchanged foroneofanothercolour. freedom tochangethecolour. The piececanbeopened dants ofBri-StarJewellers Ltd.offer theirwearers the muchinvogue.stones arealsovery The ringsandpen- brown so-called“chocolategold”.Colourfulprecious WORLD is:“An excellent placetoshow my collection.” fectively appliedonly by KTZ.Hisverdict onBASEL- according toPerez, complicatedandcanbesoef- isvery ideas withthehelpofmicrosetting,atechnique,which, that hasbeenbitteninto.KTLtranslatesthedesigner’s orofanapple individual ofastarfish ringsintheform andtortoises, necklaceswithlittlefish set withrubies, red“peperoncini” perament flow intohisdesigns:fiery is amemberofanoldfamily ofgoldsmiths,letshistem- designs imaginative pieceswithItalianflair. Perez, who worksmanufacturer withtheItalianPippoPerez, who This successful trend was once again confirmed atthis This successfultrendwas onceagainconfirmed The specialadministrative region (SAR)isstillthe KTL isexperimenting with goldalloys withtheshiny DKSH Market Expansion Services – Your Asian Growth Opportunity

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Think Asia. Think DKSH. www.dksh.com 40 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS achieves withUSA anannually increasing tradesurplus the world’s largest populationof1.3billion, China the 1stand2ndIndustrialRevolutions inthe West. With beating Japan’s post WWII recovery andeven moreso nomic expansion ever inworld tobeobserved history, GDP hasgrown sevenfold, eco- thusbeingthefastest China’sIn thepast20years afteritseconomicreforms, growingGDP iscurrently atarateofmore than10%p.a. developmentsinsight intothecurrent inChina.China’s ecutive BoardofSchindlerLift Ltd, gave animpressive PresidentofSCCCandMembertheEx- Kurt Haerri, The ReturnofWorld-Power China Euro-centric, inbothmeaningsoftheword. but notleast–anew attitudetowards life which isless thecustomersandsociety–last culture toserve have todevelop anew balanceofrightsandduties,anew wards atalllevels progress andreforms ofsociety. We vested rights,we needtoinnovate andnotbehostileto- must redevelop ourpioneeringspirit,notprotect our of living. We mustshow initiative, notdespondence,we pean entrepreneurshipifwe want touphold ourstandard workers, employees, managersandpoliticians. if we changeourbasicvalue systems and attitudesas for the West inthesenseofawin-win-situation,butonly and purchasingpower istoberegarded asanopportunity The riseof Asia withitshugemiddleclasspopulation whether it’s fromthe nottimeforustolearn Asians now. economicboominIndia,leadustoaskourselves current systems andlocalcultures. to improve theirqualityby adaptingthemtotheirvalue technologiesern andmanagementtechniques,buteven Japanese –have notonly fast very tocopy learnt west- nologies. Inthemeantime, the Asians –primarily the how businesses,economiesandapply torun new tech- In thepast, West hastriedto“educate”the Asians on dia asitalreadyexisted in the 17thand18thcenturies. economic power willbere-established inChinaandIn- economy inthe21stcentury. A similarglobalbalanceof of the20thcentury, the Asians aresettobestrideworld mony andthe ofthe19thcentury American domination marized inhisintroductionthat,aftertheEuropeanhege- Urs Schoettli,Far oftheNZZ,sum- EastCorrespondent The AsianRenaissance Enderle, andProf. Dr. Hugo Tschirky Speakers: Dr. Urs Schoettli, Kurt Haerri,Michael tion withSICCandSJCConMay3,2007atETHZurich Event organized byForum-SCM andSCCCincoopera- Benchmarking ofBusinessCulturesinChina–IndiaJapan Learning fromAsia We ofEuro- alsoneedtore-establish ouroldvirtues The successstoriesofJapanandChina,aswell asthe built upover years tounderstandeachother, notonly with say “no”. hastobe Therefore acloserelationshipoftrust tosayferred rather nothingformonthsbeforethey really orpotentialconflicts.Itispre- identify disagreements to and friendly Indianculture,itissometimesdifficult strong senseofcommunityand harmony. Duetotheopen everywhere, traditionalfamily values andbonds,a suchasreligion,thatispresentdaily withfactors faceted typically forIndia–isnotone-dimensional butmulti- switched tothemaintopicofbusinessculturewhich – like Arcelor, andDaewoo Corus asexamples. Hethen economic impactonaworld-wide scale,withtake-overs are increasingly playing akey roleinexpanding their not justaboominglocalmarket in Asia, butthatIndians phy andeconomy, MichaelEnderleshowed thatIndiais Group what ChinaisforSchindler. intake (USD350million).IndiaisthereforetotheRieter 2006, Indiawas Rieter’s oforder interms No.1country with 14’826employees plants.In in72manufacturing achieved worldwide salesofUSD2’857millionin2006 Textile Systemsand Automotive Systemsthatbothhave tions inIndia. The RieterGrouphastwo maindivisions: of RieterIndiaPrivate Ltd, leadsRieter Group’s opera- Michael Enderle, Vice-President ofSICCandChairman India: ABillionontheMove grasp theopportunities. grasp derstood what isreally happeningthereanddoesnot ciaries ofGlobalization,butthe West hasnotun- sofar benefi- Globalization, IndiaandChinaarethegreatest rope where morerightsthandutiesaredemanded). Senseofdutyandperformance 4. by securingglobalsources ofenergy andraw materials, support tation are admiredwithoutenvy, neurial thinking survival. What canwe fromChina? learn nerships withChinesecompaniesoftenareamatterof inChina.For manyfined European SMEs,strategic part- ing intheworld markets isthereforemoreandde- strongcompetitivevery advantages. Thus theposition- economies ofscalecanbeachieved which willleadto are decisive forSchindler. same forelevators isaround1/3oftheworld market, both calators inChinais60%oftheworld market andthe market. is itsmostimportant market fores- The current and arestillgrowing exponentially. For Schindler, China havechange reserves reachedmore than1.3trillionUSD alone ofmorethan200billionUSD. The foreignex- After giving anoverview ofIndia’s history, demogra- Conclusion: The West isthebiggestprotagonistof Due tothehugedimensionsofChinesemarket, as soondecisionsaremade, through highinvestments and in infrastructure and action:successfulentrepreneurs .Highspeedofimplemen- 2. (in contrasttoEu- .Government 3. .Entrepre- 1. disrespectful. and deadlines asimpatienceisseenaggressive, rude tobeflexiblefrom them.Justlearn anddon’t at rush the punctualityofEuropeansinbusiness,don’t expect it have thetime”. Although Indianssometimesappreciate to say toSwissvisitorsis“You have thewatches –we only adecisionbecomes mature. What someIndianslike the communitywhat they thinkaboutanissue,andthen words, toask toclarifybackgrounds, tobuilduptrust, clearly. Ittakes alotoftimetocommunicatewithout nity. The Indianconceptoftimehastobeunderstood alsowiththeirfamilysingle persons,but and commu- The speakers duringthepaneldiscussion:(f.l.t.r.) Kurt Haerri,Urs Schoettli, Michael Enderle andHugo Tschirky. Confucianism, Buddhism andShintoism,ahighly disci- hard forsurvival. had tofight Thanks tothevalues of ing spaceinamountainoustopology, thepopulation has tsunamisandtyphoons,itslimitedliv-like earthquakes, over the same period).Duetoitstoughnaturalconditions have experienced several andrevolutions disruptions (Westerninterruptions alsoChinaandIndia culture, but fewof thevery thathasevolved over 2500years without USA. Thanks toitsinsularity, theJapaneseculture is one intheworld,GNP –thesecondrichestcountry afterthe technologically mostadvanced anditis–measuredby countries suchasChinaandIndia,Japanisoneofthe inside anenigma”. himself Switzerland, notlike Winston Churchill,who saidabout land) Ltd, isknown on Japanin tobearealexpert Hugo Tschirky, Memberofthe Board, Canon(Switzer- Learning fromJapan tic approach ships spect seniority the unexpected What otherissuescanwe fromIndia? learn and be prepared for grey zones. and bepreparedforgrey “Japan for meisariddlewrapped inamystery to managecontrasts, and ageinallareas, , 24hoursaday, 7days aweek, Unlike thelow incomepercapita .Manage relation- 4. .Take apluralis- 3. .Expect 1. .Re- 2. tivity to fulfil ameaningfullife. tivity tofulfil spected elementofsocietalwelfare, themainhumanac- care towards servants andfollowers. Work isahighly re- wards thosewithhigher statusandsocialobligation of society:individuala disciplinedvertical obedienceto- cianism withsocio-culturalprinciplesofdependencein vides themeaningoflifeinJapan,derived fromConfu- challenged by itsbooming neighbourChina. West inthe1980s,Japan’s agingsocietyisnowadays pecially inthe21stcentury. Perceived asathreattothe clean societyhasevolved, our attention,es- thatdeserves plined, hardworking, respectfulandenvironmentally ability, andgratitude. To symbolizeallthesevalues and continuous improvement, andhumility, courtesy adapt- bution tosociety, andhonesty, fairness teamspirit, bedded inhomogenized andtraditionalvalues ofcontri- of Japanesemanagementandleadershipstyle.Itisem- ment complexity. activate self-organizing processesandreducemanage- cisions. here tobettercommunicateinternally forbetter basedde- as abasisforconsensus-baseddecisions. We couldlearn in Japan. There isalongtraditiontoshareinformation munication should alsobecomeculturalvalues inthewest. perspective.there isalong-term Innovation andchange change isconsideredratherablessing thanacurseand andcuriositytowardsent affinity thenew. Technology in Japanenables sustainable growth. There isaninher- themes in Western educationandresearch. innovation andservice nesses. Service areneglected pression ofrespectfulliving together inallkindsofbusi- world’s highestrankingcustomerawareness, it’s anex- There are six lessons to learn fromJapan: There aresixlessonstolearn .Group Dynamics 5. is theessenceofallprocessesanddecisions .Company Culture 6. is theJapaneseapproachto (continued onnext page) .Service 2. is thefundament .Innovation 3. 1.Work : Japanhas .Com- 4. pro- 41 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS 42 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS meta-competence tomeetsocietalchallenges.In Asia, ethics andself-discipline,tocollectively develop the land, togenerateanew consciousnessregarding work andstandardizetheschoolingsysteminSwitzer- form sues were summarizedagain,emphasisingtheneedtore- In thepaneldiscussionoffourspeakers, themainis- Panel DiscussionandLaunchofChinaBook inNewthe StatueofLiberty York. “Statue ofResponsibility” lessons, Hugo Tschirky proposestheerectionofa www.oecweb.com [email protected] Fax +41444932122 Tel. +41444015335 CH-8142 Uitikon OEC OertliConsulting SICC &Managing Partner Summary byDr. Peter Oertli torical context. really want tounderstandChinatoday, includingitshis- macht” which we recommendtoallthosereaderswho sented hisnew book entitled “China,Dieneue Welt- After thepaneldiscussion,UrsSchoettlipre- benefits. is only withpatience that you canenvisage long-term Western investors It mustnotcountwithquickreturns. Zürcher Zeitung. Weltmacht”, published byNZZLibro –Buchverlag Neue Urs Schoettli signinghisnew book “China, dieneue in the West tocomplement oder injederBuchhandlung. E-mail: [email protected] Bei der Wirtschaftskammer Schweiz-China, CHF 38.–/+Versandkosten Bestellung – 1996 Rückkehr zur«NeuenZürcher Zeitung», in Tätigkeiten berufliche weitere – 1990–1995 der«Neuen 1983–1989 Südasienkorrespondent – – 1978–1991 Generalsekretär, später Vizepräsi- an derUniversität Basel. geboren 1948inBasel,StudiumderPhilosophie Schoettli Urs W. Dr. wie kaumeinanderer. Gegenwart Chinas ein,kompetent undspannend tung» inPeking, indieGeschichteund führt ettli, Korrespondent der«NeuenZürcherZei- in ChinaskünftigerEntwicklungsein.UrsScho- derRisiken undChancen Beurteilung renzierte schaft ziehen.Diesmuss Anlass füreinediffe- Menschen würdedieganzeErdeinMitleiden- haben. ChaosineinemLandmit1,3Milliarden stabilen, wohlhabenden undfriedlichenChina Weltgemeinschaft musseinInteresseaneinem für siebedrohlichenMachtaufsteigenwird.Die China. DieUSAbefürchten,dassChinazueiner Abwanderung von JobsinsBilliglohnland Die westlichen Industriestaatenleidenunterder wachsenden sozialenSpannungenkonfrontiert. men, einemeskalierendenReichtumsgefälleund senland siehtsichmitgewaltigen Umweltproble- gegenüber.cher politischerReformstau DasRie- stehtabereingefährli- sozialen Modernisierung und Staaten von Bedeutung.Derwirtschaftlichen Die RenaissancedesReichsderMitteistfüralle Jahrzehnten aufdie Weltbühne zurückgekehrt. Mit RiesenschrittenistChinaindenletztenzwei ökologisch. politisch, gesellschaftlich, Probleme gegenüber: wirtschaftlichen Aufstieg stehengrosse innere Seinemrasantenbalen Ambitionen geworden. China istwiederzueinerGrossmacht mitglo- Korrespondent inHongkong, Tokio undPeking. Zürcher Zeitung»inDelhi. Spanien undPortugal. inLondon. dent derLiberalenInternationalen Zürcher Zeitung Buchverlag Neue NZZ Libro– CHF 38.– Abbildungen, 240 Seiten,50s/w Urs Schoettli Let’s talk about markets

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Strategy audits and development OEC OERTLI CONSULTING MMP, outsourcing & offshoring CH-8142 Uitikon-Zürich Tel. +41 44 401 5335 Fax +41 44 493 2122 [email protected] www.oecweb.com 44 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS Prof. Dr. Dr. von Senger, Harro which Ienjoyed very Having readallthebooksabout36Strategies from The ArtofAdvantage–SanShiLiuJiandbusiness about theSanShiLiuJi. not have hadthelongnosesknown occurred atleastabit the problems we had, beforeandduringtherally, would to inthisBulletin).Mostof April 8(seeseparatearticle tage carrally fromHong Kong toBeijing fromMarch28 I experienced, onceagain,duringmy lastvisit,thevin- haveand experts echoedsimilarcomments. situations.”come difficult NumerousChinesefriends mostly aboutusingtheSanShiLiuJitoover- cartoons, day. When Iwas young Ireadallthestories,which are Canton); “we have itinourblood, they arewithusevery Xu, ayoung businessmanfromGuangZhou(oldname: inChina”,says“The SanShiLiuJiarequitefamous Yang ticularly trueinbusinessandpolitics. derstand thebehaviour ofChinesepeople. This ispar- knowledge oftheSanShiLiuJiwillhelpusbetterun- to begin arelationship. I’mabsolutely convinced thatthe comments like: “You mustbeawiseman.” Notabadpath them andthenafeeling ofopennessandfamiliaritywith reaction: astonishmentthata first “longnose” knows of ) did ofteninChinaandSwitzerland, Imetthefollowing ing toChinesepeopleabout theSanShiLiuJi,which I among them: “36 Strategeme fürManager”. When talk- to the West andwrote many booksabout thesubject Prof. Dr. Dr. Harro vonSenger brought the36strategies The 36Strategies(SanShiLiuJi It is of great advantageIt isofgreat toknow theSanShiLiuJi,as egy “Borrow a Corpse fortheSoulsreturn”. egy “Borrow aCorpse ease. competition withgreater The Chinesecallthis strat- something forgotten orabandoned, we canoutthinkour opposite. Bylookingforsomething “old”,adopting thatsometimes“new”learned comesfromprecisely its ative triggersfor conceiving ofnew strategies. We egy trainings we tousethe36strategems ascre- learn han Krippendorff cametomy mind. Through thesestrat- seminars we heldhereinSwitzerlandlastyear withKai- two attracted my thefirst attention.Readingthearticle, This headline,appearedinCASHdaily onJune11,2007, “Lufthansa leiteteineStrategiewendeein” widely used.” where thesestrategems arealreadywell known and anyone working competitionfromEast inorfacing Asia, withcompetition.Itisalsovaluablethose struggling for mend thisbooktobusinessstrategists, policymakers and orbusinesses. Weare notlimitedtobattlefields recom- ifyou take themtooliterally) gies (anethicalminefield excellent introductiontoaneglected classic.Itsstrate- Competitive Edge”ofKaihanKrippendorff: “...thisisan “The ofthe Art Advantage: 36Strategies toSeizethe sistance. lowest costsandinfluenceby outthinkingsourcesofre- doms text gives ustoolsforgainingmarket shareatthe lowest ofcompetition.Insteadtheseancientwis- form not necessarily meanto destroy your enemy, which isthe Liu Jioffers amoreprofound lesson:competitiondoes asemperorfrom221BCEto210BCE. served timeand Chinaforthefirst San ShiLiuJitohave unified cotta army ofQinShihuang,who usedthestrategies from totheSanShiLiuJi. birth You mightknow ofthe Terra- Warrior StatesPeriod (475BCE–220BCE),which gave business today duringChina’s andthosebattlesoccurred cient times. are humanbeingsandactassuch,like thegeneralsatan- essential inourglobalizedcompetitive world. Managers them canbecomemorecreative andeffective, which is experiencing intheworld today. The onesmastering of toolsforexplaining thecompetitive dynamicswe are these ancientChinesewisdoms,provide acompleteset over thelastdecade.HefoundoutSanShiLiuJi, profitability, andproducedthemostshareholderreturn crosoft which have grown delivered fastest, thegreatest companies worldwide suchasNokia,PumaandMi- He studiedaround400businesscasesandanalyzed 100 to seeiftheSanShiLiuJicouldbeappliedbusiness. casesof collectingbusiness started Western companies ago, andwas withthesubjectjustlike me.He fascinated voninsey Senger’s &Co)readHarro bookeightyears of art Advantage”. much, IcameacrossKaihanKrippendorff’s book:“The Rolf Dobelli,founderofgetAbstractreviewed about Below itsapparently aggressive theSanShi surface, differences between There areofcoursesignificant Kaihan Krippendorff consultantwithMcK- (aformer    

46 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS direct, point-to-pointflightsfromsmallercitiesaswell. Lufthansa was forcedtoreact! They announcedtooffer model. The competitive challengegrew sostrongthat lowed suitputtingpressureonthe“new” hubandspoke daily directflightfromHamburg toNew York. Othersfol- foreignairlinetooffer a airline fromDubaiwas thefirst point-to-point modelonthecontrary. This fast-growing itics, Emirates Airline introducedtheold, abandoned planes onlongdistanceflights.Butwiththeopensky pol- Lufthansa andothertraditionalairlineswhich preferfull destination. for costefficient This is,ofcourse,very had tofly tothesehubsandthenmove ontotheirfinal haveand Düsseldorf.Passengers fromsmallerairports spoke systemandinvested heavily Munich inFrankfurt, strategem. Years agoLufthansaintroducedthehub-and- thepower ofthis confirms further “Lufthansa article” same tactictochallengeitsmuchlarger competitors. The mobiledevice, usedthe the makers oftheBlackberry itable airlineinthatcountry. Healsoshowed how RIM, (American Airlines, Delta Airlines, etc.)asthemostprof- in theU.S. which hasemerged tochallengethegiants Kaihan shared with us the story ofSouthwestKaihan sharedwithusthestory Airlines – fromExperts) (extended interpretation What are the36Strategies? “...sie(Anm.dieStrategeme) werden offensiv – – – – advantage. strategic interactions orpower moves tocreate The 36Strategems are universal patternsof tizieren...”, Prof.Dr. Dr. von Senger. Harro und,erlernen soweit ethischvertretbar, prak- gerüstet.Mansolltesie kampf hervorragend sich aufgenommenhat,istfür denLebens- prävention eingesetzt. Wer ihrenKosmos in und vor allemauchdefensiv zurSchadens- Chinese University ofHongKong of mer HeadofDepartement Anthropology, haviour ofallpeopleonearth. functions asthebestmirror for thestrategic be- systematic knowledge ofstrategems, iteasily Chinese culture possessestherichest andmost thor of“ChineseBusinessNegotiation Style” victory atthelowest cost. The strategems teach ushow towinthebiggest NBS,NTUSingapore. grams, oftheNanyangChairman Executive Pro- Strategy, Management&Organization & Hou isProfessorandHeadoftheDivision of “The 36Strategies oftheChinese”, Wee Chow Hou together withLan LuhLuh,authorof gies” are lessfamiliartoothers. plied bytheChinesethis “Thirty-Six Strate- ness practice. Though widely known andap- the Chineseandare frequently appliedinbusi- The “Thirty-Six Strategies” are well known to Seize theCompetitive Edge” “The ofthe Art Advantage: 36Strategies to Kaihan Krippendorff, authorof Dr. Tony Fang, au- Chio Chien,for- Wee Chow phone: +41-41-6663040). tact RuediMüller(e-mail:[email protected], general orfor crafting businessstrategies, pleasecon- Should youwant toknow more about the36strategies in Geschäftsführer Buchzentrum AG, Hägendorf) rausgekommen wiebeidiesem.” (AndreasGrob, Workshops besucht,beikeinem anderenKurs istsoviel tur undKursleitung. Habeschonverschiedene Strategie kommt voll zumZug.Kompliment auchzurInfrastruk- DieKreativität“Das Seminarhatmirsehrgutgefallen. fromapreviousComments fromaparticipant seminar: www.strategeme.com/KursKK fromareducedfee.For to: turn seminarinformation efit bers oftheSwiss-ChineseChamberCommerceben- dorff, September10and11or1213,2007.Mem- about theup-comingseminarswithKaihanKrippen- one ofthemostinfluentialculturesworld. vantage inatimewhen theChinesearere-emerging of The knowledge oftheSanShiLiuJiprovides ad- great Conclusion – “The 36Strategems for Business: Achieve Your Objectives – “Kunst derList”,Beck Verlag – “36 Strategeme fürManager”, EditionPiper Books byHarro vonSenger: “When YES meansNO(oryesormaybe)”,byLaurence J. Brahm. Some otherbooksabout thistopic: Summary byFiducia Management Consultants the advantage tothelatter. thattheChineseparty’slearned usageofstratagemsactually gives oftechnologypremacy interms andmarket they position,but have ceptance asaworthy increasessubstantially. businesspartner ing similartacticscanwork toone’s own advantage –andtheac- but understandingthemhelpstoseethroughtheirintentions.Us- other party’s businesspracticesmay sometimesseemoutofplace, andunconventionalsmart way ofsolvinganissueorproblem. The customers, suppliersorcolleagues. doing businessinChinatoday when dealingwiththebureaucracy, on astrategic approach. These strategies of areanundeniable part don’t change. dergone dramaticchangesinitseconomiclandscapesome things oflanguage,cultureandtradition. in terms Although Chinahasun- Doing businessinChinahasalways beenacollisionoftwo worlds Negotiating ChineseStyle ative solutions. the SanShiLiuJi:quicker, moreeffective andmorecre- come toastrategy like theEmirates. The advantage of (see Amazon publishing company) publishing (see Amazon Through HiddenandUnconventional Strategies and Tactics”, Look also for the brochure inserted inthisBulletin Look alsoforthebrochureinserted Western executives business tendtorely ontheircompany’s su- Chinese stratagemsarenotthesameasdeception;they area One suchthingistheChinesenegotiation stylewhich isbased There areofcoursemany ways, mostly analytical, to most competitive markets ofwhich say: experts “Ifyou canmake itinChina,you canmake itanywhere.” competition? ket andcostpositionbeenhancedagainststronglocalinternational This shouldhappeninoneofthe development phase many processingintoquestion:HowAfter thefirst companiesputfurther shouldthefuturemar- and market opportunities. inChina.Inthelastcoupleofyearsor manufacture thistrendchanged. Today thefocusisalsoonmarket potentials In theearly stagesofthisdevelopment Western tosource companiesfocusedoncostreductionpotentialsandstarted and setupalocalpresence. development many Western multinationalcompaniesandnowadays alsoSMEcompaniesentered theChinesemarket number three economy andthemanufacturingcentre oftheworld. Drivenbytheopportunitiesprovided through this such growth rates. IftheChinesegovernment willmeetitsambitious “Vision 2020”, China isbecomingtheworlds The economy ofChinaandtheFar Eaststillgrows withanimpressive dynamics.Most Western countriesdream of Successful BusinessDevelopmentinChina (EBIT). to improve theirprofitability tentials (cost)andtherefore (growth) andoperational po- allocate market potentials These companiesare able to position atthesametime. market positionandthecost based onstrengthening the GrowthProfitable on thestrategic approach of Successful companiesfocus which is 47 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS 48 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS successful in China without any defined goals,aquanti- successful inChina withoutany defined than originally planed.Foreign companieswould not be development takes much longerandcostsmuchmore done first. pansion intoany new market. The homework has tobe in thecoremarkets cannotbesolved throughtheex- requires astrongandpowerful Problems core business. clear, development thatsuccessfulbusiness inthisregion Facing thechallengesinChinaandFar Eastitisvery markets solve operationalproblemsinthetraditional Expansion intoChinaandtheFarEastdoesnot intoglobalbusi- Chineseoperationsarenotintegrated – Value-Price duetohighcostand relationdoesnotfit – Many Western productsdonotmeetChinesecus- – Fragmented anddiverse market segments complicate – tors: (FIE’s) develop muchslower thantheirlocalcompeti- ment ofmany Western foreigninvested enterprises plex andambitious(ad-)venture. thedevelop- Infact, that successfulbusinessdevelopment inChinaisacom- A genericanalysis ofthecompetitive situationconfirms There arehardly any low Normally the hangingfruits. ness models over-engineering: forpurpose fit tomer’s needs an effective market penetration critical success factors shouldbeconsidered. critical successfactors Adapting andimplementingtheseconcepts,anumberof and operationalconcepts. quires anintelligentcombinationofdifferent strategic Successful businessdevelopment inChinathereforere- Culturaldifferences complicatemarket accessby – Low loyality andhighfluctuationofemployees makes – LocalSupply andarenot Chainsarenotperforming – Organization undmanagement arestillstuckinthe – Supply ChainsinChina, Western conceptscannotdi- Regardless ofdeveloping markets orsettinguppowerful “Copy-Paste”-strategies will leadtofailure – What dowe What do ifwe arenotsuccessful? – Whichstrategy, which implementationconcept? – Why Chinaandwhy notanothercountry? – Whatisthegoal?Costreduction?Market develop- – plan: strategy andarealisticimplementation midterm fied Western individuals andcompanies demanding human resourcemanagementvery reliable upphase” “start ment? ucts required? products belocalized, orultimately arenew localprod- ket foranexisting highendproduct,shouldexisting than anything else. The key questionsare:Isthereamar- products shouldmeetlocalneedsandrequirementsmore which arederived fromthelocalcontext. Essentially ing. Itisthegoalandchallengetodevelop products varietyods beregulated ofcircumstances.” by theinfinite tics which have gainedyou onevictory, butletyour meth- Sun Tsu alreadystated490B.C: “Donotrepeatthetac- ofyour supply chaininChina.”figuration say: “You have con- togo5years backtogetthestarting western conceptsdonotwork inChina. Criticalexperts Experiences insupply chainmanagementshow, that toChinawithoutprioradaptation. rectly betransferred This isespecially forproductsandtheirposition- true A wonbattledoesnotmeanawar porate strategy aswell aswiththebusinessmodel. strategy thereforeneedstobesynchronizedwiththecor- cost advantages inthetargeted markets. The supply chain ply ofmarket coverage chainsprovides thebenefits and adapted andoptimizedtoimprove thecost position. business processesaswell asITsystemsneedtobe needs andrequirements.Supply chainmanagement, willbemetonceonemeetsconsumers’ performance vested, growth. Market theoutcome shouldbeprofitable mains ahead. considered amilestone,nevertheless alongway stillre- Having successfully setupabusinessinChinamay be Especially ofregional theintegration and globalsup- After successfulbusinessset-upandhardwork in- 49 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS 50 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE BUSINESS MATTERS Etc. – Politics, politicalenvironment – Legal framework – andbusinessethics Businessrules – Culture,mentalityandlanguage – sional: differences arenotonly culturalbutrathermultidimen- the large differences between ChinaandEurope. These Despite thepioneerspiritoneshouldnotunderestimate China/Far EastandEurope Do notunderestimatethedifferencesbetween page: www.zellweger.com For please consultourhome- information further China. panies in Western Europe,Indiaand andEastern anddistributioncom- manufacturing ternational well Management. asInformation We in- support tional development, supply chainmanagementas development,business processandorganiza- consultancy focusingon leading international Zellweger Management Consulting AG is a the associatedriskstobeunderestimated. inChina tend tobeoveropportunities emphasizedand is amust. The experience frommany projectsshows that weigh Insteadongoingriskassessment theopportunities. tors arepresent. This doesnotmeanthattherisksout- high pace,even thoughsignsoverheating invarious sec- economic development continuestomove aheadata continuetolingerinChina. A lotofopportunities The risks Attractive opportunitiesbutalsoconsiderable Chinese businessideals. challenges andlarge gapexisting between Western and duetothemany through Chinaonly difficulty with great Nevertheless Western companiesnavigate theirway tionship) isvitaltoconductsuccessfulbusinessinChina. (rela- It hasbecomecommonknowledge that‘Guanxi’ Zellweger Management Consulting AG U.K., Czech Republic, India,China Author: Thomas Zellweger, CEO Switzerland

52 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES derstanding oftheresults: companies, forabetterun- teristics oftherespondents’ sive onlinequestionnaire.Below aresomekey charac- 68 subsidiariesofSwisscompaniesanswered anexten- Participants Survey www.chinaguide.ch fororderingdetails). by onkeyies andarticles HRMexperts topics(see available inJuly, complementedby additionalcasestud- Human Resourcespracticesofsuccessfulcompanies. by eightcasestudiesproviding insightintothespecific providing other pointsofview. The pictureiscompleted subsidiaries alsorespondedtoaseparatequestionnaire, 57 detailedquestions.Inaddition,91employees ofsix tively. The managersof68Swisssubsidiariesanswered versity ofGeneva andtheUniversity ofSt.Gall,respec- Master’s oftheUni- candidatesunderthe supervision This work was executed oftwo withthehelpfulsupport expand itsunderstanding about HRMissuesandpractices. tive survey for theSwissbusinesscommunitytoshare and the SwissCenterShanghaijointly sponsored arepresenta- Chinese ChamberofCommerce inSwitzerland, Osecand ful operations offoreign enterprisesinChina. sidered thesinglemostimportantchallenge for success- Human Resources Management (HRM)isgenerally con- ResultsandSuccessfulPractices SwissCham 2007Survey Swiss-China HumanResourcesManagement All detailsofthesurvey willbepublished andmade To address thisissuepractically, SwissCham,theSwiss- clerks arethehardest toattract. available, itisalsowhere engineersandskilled office hand, while Shanghai iswhere R&Dengineersaremost inbothShanghaiand2ndtierlocations. Ontheother find cations. Shanghai, andmorescareinthe Southand2ndtierlo- thatmanagement ismoreavailableing. They in confirm (below) areparticularly enlighten- tofind more difficult ratingsonwhat positionsare The survey participants’ Difficulty FindingHumanResources in recentyears. more frequently established thanRepresentative Offices should notoverly biasthedata,given that WOFE’s are The sampleisclearly biased infavour of WOFEs. This Interestingly enough,unskilledworkers areeasiestto

54 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES Cost-Effectiveness: Value formoney (with respectto – Competence: The abilitytouseknowledge, under- – Commitment(toacompany): Engagementinandat- – locationandlegal form: then by group, industry overalldifferent and dimensionsused torateHR,first withtheirHumanResources(HR).Below arethe isfied The resultsreveal thatSwissbusinessesarelargely sat- their employeesinChina Level ofsatisfactionSwisscompanieswith company’s values, systemsandoverall culture. smoothly withthecompany’s workforce andwithinthe Beingsuitable andappropriatetoworkCongruence: comparison ofemployees ofotherenterprises). the achievement objectives ofparticular andtasks,by effectively attherequiredlevel. standing andpracticalthinkingskillstoperform alternatives. thecompany’sserve interestswithoutlooking atother tachment tothecompany, resultinginawillingnessto ees: withthecost-effectivenessmuch satisfaction ofemploy- cept thatemployers donotexpress industry intheservice differences, emerges fromindustry No clearpattern ex- thanthoseatJVs. WOFEs aremoresatisfied withtheiremployees,most satisfied while thoseat ing thatSwissemployers atrepresentative arethe offices emerges, indicat- aclearpattern oflegal form, In terms hainese operationsaremoresophisticated. probably inShang- becausethefunctionsperformed clude thatemployment inShanghaiismoredemanding, certainly ashighelsewhere sothatwe canonly con- Case studiesshow thatthequalityofHRinShanghaiis employeesSouthern arejudgedtheleastcompetent. with theiremployees, while onemuststillnotethat Paradoxically, Shanghaiemployers areleastsatisfied PEKING

SHANGHAI

KANTON

HONGKONG

BANGKOK GENF ZÜRICH

DELHI

MUMBAY

TOKIO

OSAKA

NAGOYA

MIT BESTEN VERBINDUNGEN NACH FERNOST. An Helsinki führt kein Weg vorbei, wenn es Richtung Asien geht. Fliegen Sie direkter und schneller. Ab Genf und Zürich nach Helsinki und weiter zu 10 Zielen in Fernost. Über 170 Flüge pro Monat. Information sowie Buchung in Ihrem Reisebüro oder bei Finnair. www.finnair.com/ch 56 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES higher turnover: skilled, easily replaceable workforce accountingfora slightly worse picture,probably asaresultofitsun- By industry, industrialcomponentscompaniesshow a since they represent21percentofthesample. cent peryear. The missinganswers arerepresentedhere of respondentsannouncingaturnover oflessthan20per- comes akey target foralmostevery company. retaininggoodemployeeswithin aforeignenterprise, be- towork Faced ofpersonnelfit shortage withthecurrent Employee turnoverrates HR environment. dealinChina’spersonal relationshipsstillmatteragreat that candidates. for recruiting This certainly confirms Personal networks arestillarelatively source important Recruitment methods Swiss companiesarenotdoingbadly, with83percent factors toreachthefollowingfactors ranking: ofvarious oftheimportance HRM 17 companies’ratings thesecriteria. We17 companiesfit thencombinedthese in or“highly satisfied” Companieswho are“satisfied” – Companieswhose employee turnover isperceived to – HRM Companiesaccordingtothefollowing criteria: Out ofthesamplecompanies,we selectedsuccessful Factors ofSuccessforHRM ful HRManagement. allow ustoidentifythepracticesthatmake forsuccess- ler, Ciba, Winterthur, andFranke, Geberit,GateGourmet Eight casestudiesofSwisscompanies,includingBüh- Best Practices mate thatthey abitworse fare onaverage: average.than theindustry Yet inSouthChinathey esti- Swiss companiesgenerally considerthatthey dobetter tence, cost-effectiveness, congruence). every (commitment,compe- oneofthefourfactors be lower average. thantheindustry For questions,kindly [email protected] By NicolasMusy, SwissChamChina VP. pats areastrongsourceoftacitprofessionalknowledge, Actually, my senseisthatitworks justtheotherway. Ex- down theprofessionalizationofChinesework force. a localmanagermightaspireto,andinsenseslowing a localsoon.” hear expats saying: “I’ll thispositionover beturning to icant. Nowonder thatatmostFIEsinChinatoday, you’ll into thediscussion,numbersgrow even moresignif- posed tobemembersofthesameteam.Ifwe addsalaries as asourceoffrictionbetween colleagueswho aresup- value ofanFIE’s adding]part operatingbudget,aswell [non- home leaves andthelike canrepresentasignificant schooling, to. Costssuchashousingallowances, kids’ ceived asinterlopersby themarkets thatthey areposted Expats areexpensive, “unruly”. andthey areoftenper- pats. building globalorganizations are more, notfewer, ex- commercial orotherwise. What we need,Ibelieve, in tion ofexpatsisahuge mistakefor mostorganizations – make theoperation “more local”.Ithinkthatthereduc- managerial opportunitiesthatthey deserve, andwillhelp notion thatthedeparture ofexpatswillgivelocalsthe Added ontothisdream, isthe aspartofthejustification, the key managerial positionswithlocalemployees. reducing theexpatpresence mostorallof andstaffing that isnotdreaming ofthecost-savingsassociatedwith [FIE] inChina[andelsewhere] today. Rare istheFIE iar refrain heard atmany foreign invested enterprises “Localization ofthemanagerial workforce” isafamil- More NotFewerExpatsAreNeeded dates, especially have. graduates, Despitetheir mostly from now anddoesn’t tackle aproblem that many candi- proach willonly takingeffect start three tofouryears day, to20%in2010andeven 40%in2020. Yet, thisap- map aimingtoboostuniversity enrolmentfrom13%to- Government haspreparedanambitiouseducationroad ing atoverseas companies. As aresponse,theChinese and engineer- demand positionsinaccounting,finance forin- less than10%ofChinesejobhuntersarequalified McKinsey &Co.statedinaNovember that 2006report Key problems:qualificationandexperience candidates. qualified plaining oflabour shortage. The reason: notenough work thisyear. Ironically, many companiesare com- other words: 15millionpeoplewillbeunable tofind for tenmillionavailable positionsinChina2007.In estimated 25millionurbanChinesewillbecompeting According totheChinese Academy ofSocialSciencesan H&R Trends inChina Expats arealsoseenastakingthechoicepositionsthat is governance andthevalues oftheglobalorganization. It company. ormanagea toheadadepartment sonal skillsnecessary early 40’s never developed theleadershiporinterper- thatmanythe fact intheirlate30’s peoplecurrently and caused by theCulturalRevolution (1966–76)resultedin well. ofthewhole educationsystem The disruption lack ofexperience appearsatthemanagementlevel as inconsistency thatcomeswithfrequentjobchanging, level.try Duetolittleornopracticalknowledge andthe forworking firms. ininternational unfit out experience inteam-work orprojecthandlingmostare topresentcomplexbut fail decision-makingskills. With- of allnew inChinahave graduates anengineeringdegree not togetajobdirectly afterleaving university. Onethird jects. This iswhy areexpected about60%ofgraduates ability toapply thistheoretical knowledge torealpro- they oftenlackthe qualifications outstanding formal tural DNA mestic; sendmoreifyou want global. Sendtheexpats home,ifyouquarters. want multi-do- andhead- thefield ofthefirm: globalizing bothparts should seeexpats themosteffective agentsofchangein unfortunately, ispresently inmostcompanies. thenorm when fromtheassignment;neitherofwhich, they return the expat consistentlystructured learns from sothatthefirm the future.Inaddition,expats ally-mobile managersinlarge globalmultinationalsin thecadresofinternation- Chinese expatriates forming while abroad. We shouldlookforward toseeingmore ited by nationality, norshouldtheexpat feel “abandoned” ization. able knowledge. intogeneraliz- much betterchanceofbeinginterpreted have thelessonslearned a the languageoffirm”. etc.Sincetheexpat “speaks people, theopportunities, “learn” about China them toChina,the orsomeotherdistantoperation,andsending quarters, about localmarkets. Bytakingsomeoneoutofhead- expats But the shortage ofskilled staffBut theshortage isnotjustseen aten- Rather thanbeingunfashionable, Ithinkthatwe Expats shouldbeseenasaninvestment inglobal- Expats arealsothewaylearns thatthewhole firm However, expats assignmentsshouldnotbelim- who while abroadandthenvalues theexperience . are thetrue “carriers” ofthefirm’s cul- firm putsitselfinapositionto firm ; aboutthemarket, theculture, By BillFischer, ChinaBiz, cbiz.cn (continued onnext page) assignments shouldbe 57 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES 58 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES sures: Fiducia reveals someveryinteresting ideasandmea- Economist Intelligence Unitinclose co-operation with staff? tain qualified A recent survey conductedbythe sensitive information tothecompetition. losing money (invested instaff training), know-how and to aslittle15months.For many employers thismeans employee retention managers periodfor qualified down frombenefit increasing wages, thusbringingtheaverage China lastyear. Employees change jobsfrequently to resulting inanall-industrystaff turnover of15%in staff. fied The staff shortage hascreated awage boost inability togenerate supply ofquali- sufficient versities’ ing markets today, thisproblem originatesfrom theuni- As oneofthebiggest growth inhibitors inmany emerg- challenge ofbothattracting andretaining skilled labour. With China’s economy soaring, many companies facethe Employee Retention:Howtokeepyourstaff increasingly addressa non-traditionalandgrowing seg- thegap. toexpatriatesThey tofill are thereforeturning companies run, inthisissue).Intheshort other article problems even withgoodretentionmanagement(see sively “poaching”competitors,itishardtocounterthese With staff sky-rocketing turnover andaggres- figures Quick fix:hiring“localexpats” clientsdown.to turn get soextreme thateven theindustry’s bigplayers have Accounting asamajoruntil1994.“Staff draught”can nese Universities Public didn’t offering start Certified matic disparityisquitelikely thatChi- rootedinthefact ademandforoverin Chinafacing 300,000. This dra- presently therearearound69,000licensedaccountants showsabout US$9,000. why:A lookatthefigures rose30%toanaverage of annualsurplus counting firms sources Consulting,wages paidby theBig Four ac- already muchhigher. According toMercerHumanRe- tinue withanexpected rise of morethan8%. increasesfor2007indicatethatthistrendwillcon- salary just by frequently switching jobs.Hewitt’s projected ple doubling ortriplingtheirsalariesinacoupleofyears sought after. StoriesaboundintheChinesemediaofpeo- the often-quotedinvaluable softskillsaredesperately and qualifications The rarecasespossessingbothformal High payforhigh-flyers incentives isastraightforward andpromisinginstrument. tion israisingwages above market rates. Usingpecuniary Unsurprisingly, measureforhigherstaff reten- thefirst Money ormentoring Therefore, thekey questionmustbe: how canyoure- increasesare suchasaccounting,salary In somefields development possibilities. major staff trainingefforts inordertoimprove internal (MNCs)toundertake many MultinationalCorporations and especially SMEs, should follow theexample setby system isadaptedtotoday’s requirements.Companies, be thebeginning ofaviciouscircleunlesstheeducational count for75%ofChina’s new jobsannually, thiscould Shanghai andDongguan.ConsideringthatSMEsac- regions ofhighindustrialagglomeration, suchasgreater (SMEs)inthe ber ofsmallandmediumsizedenterprises industrial development which isalreadyfeltby anum- workforce willleadtoaslow-downternationally fit in Eventually experienced thelackofaqualified, andin- A bumpyroadahead rapidly. Yet remedystillpersists. theneedforalong-term between localChineseand“localexpats” willdiminish forexpats.reserved This way theexpense discrepancy are demandingmoreandoftheperkstraditionally at all)andthesametimetheirChinesecounterparts packages(if China-hired expats only getreducedbenefit inEuropeorNorth offices America. ities andculturalknowledge requiredtowork withhead rience todowell intheChinamarket aswell astheabil- often have languageskillsandbusinessexpe- sufficient who arealreadyworking inChina. These professionals ment withinChina’s foreign population(48%)–expats well-balanced way. rates. Thus, bothmethodsarebesttobe combinedina toring willnotretainstaff ifwages are20%below market managers. However,ified even thebesttrainingandmen- ments anddevelop to become qual- theskillsnecessary assign- chance totake onleadershiprolesimportant grammes. They give high-potentiallocalemployees the ment positionsinthesameorganisation. meanstoreachhighermanage- measures assupporting sional careerplans.Only thenwillthey appreciatethese employeesshould support intheirpersonaland profes- will mostcertainly betoocostly. Instead, thetraining in lower managementpositionsmay lookimpressive, but ployee. Having MBA fromIMDorINSEAD graduates development potentialandsenioritylevel oftheem- schools. The key tothisismatchtraininginvestment, programmes atinternationally renowned business guage orsoftware training toall-expenses paid MBA Optionsrangefrombasiclan- training opportunities. or company fundsbecome tight? staff. What ifanemployer up withbiggerpockets turns sation-based relationshipbetween employers andtheir Yet itcanbeartheriskofestablishing asolely compen- This solutionalsotendstobecost-effective: many A solutiontakingthesamelinearementoringpro- Another successfulapproachistoestablish orincrease keeping themhappy –andonboard. extra mile”foryour staff mightjustaswell bethekey to expenses. However,necessary showing thatyou “gothe off areoftenshrugged asun- in-house lunchfacilities whereas IT gadgets,company imageandhigh-standard trainingandmentoringprogrammes to sufficient successful methodsforstaff retention. The sameapplies orhousingallowanceance benefits isoneofthemost pensation packageincludingcompetitive wages, insur- want toberewarded forstaying. A comprehensive com- Employees want tothecompany tofeelimportant and Feel-good factor chef andworker retention rates. relation between theperceived qualityofthecompany business, thereisastrongcor- ager inthemanufacturing ofgettingadecentmeal. portunity According toaman- asemployeesto bebeneficial appreciatethissimpleop- ploying thestaff agoodchefwho runs canteenhasproved suchasrestaurantsorshops.Em- basic infrastructure nies areusually missingouton locatedincityoutskirts unconventional: food.Especially compa- manufacturing quires lessinvestment withapotentially higherimpact. alternative totheclassicstatussymbol“company car”re- of bothyour colleaguesandcompetitors. This up-to-date PDA orlaptopwillmostlikely attractattentionandenvy and isalsohighly regarded inChina. Your brand-new posedly anothersuccessfulstaff retainerinSoutheast Asia cussions amongpeers. addresscanproveprestigious office helpfulinstatusdis- outthatawell-designedturned company website ora toacompany’stach highimportance public exposure, it methods ofcurbingstaff turnover. As many Chineseat- The conductedsurvey alsorevealed somelessobvious My iPod,mycar, ...mychef! uation canbethe similarwhen hiringanexecutive from shouldmake moremoneyreturnees than they do. The sit- who have losttheirroots. They oftendon’t seewhy the might deemthesemanagers“snobs” orChinesepeople training aswell exposure. Existingstaff asinternational and English andChinese,high-standard qualification Chinese,who tendtohaveor returning fluentabilitiesin Local employees canholdresentmenttowards overseas “Rootless snobs” Cronin ofHewitt Associates, itshouldbe. force usually isn’t oneofthem. Yet, according toMichael perience –butthereaction ofthecompany’s localwork- lot ofaspects–compensation,language skills,work ex- turning Chinesemanager, companiesusually lookintoa When consideringtheemployment ofanoverseas orre- Home, SweetHome? The next possible staff retainercomesacrossasrather Supplying employees issup- withthelatestITgadgetry overseas Chinesearenotalways thebetterchoice. situation carefully: even thoughthey have many assets, ket andcanbringaddedvalue tothebusiness. are alsolikely tohave agoodunderstandingofthemar- work forandthereforeeasiertoretain.Localmanagers This may make themmoreloyal tothecompanies they have strongerlinksintheareasuchasfamily andfriends. suggests hiringlocalmanagerswho naturally tendto common. Inotherwords: localmanagersorexpats. He ilar tothemoraresodifferent thatthey have nothingin most positively towards peoplewho sim- areeithervery Cronin says thatmainlandworkers arelikely toreact Opposites attract? leaving awell-paid orotherwisemuchliked job. can leadtoexcess stressand eventually even resultin agers soonfeeloutofplaceintheirown country. This networks intheareatorely on,itispossible thattheman- for thelatter. Without any family bondsorothersocial negativenese managersmightcreateavery atmosphere overseasnary expat would be. perienced innegotiating “the Chineseway” astheordi- a client,butchancesarehighthatthey arejustasinex- contactwith abilities may helpthemtoestablish thefirst ture orthemindsetofChineseworkers. Their language necessarily meanthey understandChinesebusinesscul- managers mightspeakChinesefluently, butthisdoesn’t second-tier citiessuchas Wuhan orChengdu. citiessuchasShanghaiorBeijingtowork in first-tier So next timeyou planonhiringamanager lookatthe Local workers’ treatment of returnee oroverseas treatmentofreturnee Chi- Local workers’ Another problem couldbeculturalissues.Returnee Tel: +86-755-8329-2303 P.R. China518033 3039 ShennanRoad(Central), Shenzhen, Room 909,9/F, CultureBuilding International Office Shenzhen Rep. Tel: +86-21-6327-9118 Shanghai, P.R. China200003 Suite 1908,Ciro’s Plaza,No.388NanjingRoad(W) Shanghai Office Tel: +852-2523-2171 Hong Kong 12/F Fortis Bank Tower, 77GloucesterRoad, Hong Kong Office Tel: +86-10-6590-6108 Chaoyang District, 100004,Beijing,P.R. China DongsanhuanRoad 8 North Unit 0603,Landmark Tower 2, Office Beijing Rep. by Fiducia Management Consultants Source: ChinaFocus 59 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE HUMAN RESOURCES 60 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS – Foreign firms thatareestablished before1stJanuary Foreign firms – tax law: tion policies. The following arethemajorchangesto tax-deduc- The lawduction safetyfirms. alsoclarifies nology, environment protection,energy saving andpro- Preferential policieswillstillbeprovided tohightech- Major Changes gions being26.7percent. Chinese mainland’s 18neighbouringcountriesandre- 28.6 percentin2005–2006,withtheaverage rateinthe porate incometaxratein159countriesandregions was countries. Government datashows thattheaverage cor- the 25percenttaxrateislow comparedtomostother markets toforeignplayers. treated equally, given thatChinahasopenednearly allits haveAs thegovernment tobe seesit,theforeignfirms thispreferentialtreatmentforever.they couldnotgrant market. Butover theyears thegovernment realizedthat variousfaced investment restrictionswhen entering the since1991asoriginally foreigncompanies Enterprises Law withForeign forEnterprises Investment andForeign favourable asstipulatedintheIncome taxstructure Tax began inthe1980s. timesincetheeconomicreforms forthefirst ing field withalevelvide domesticandforeignenterprises play- rateof25percent. pro- This willfinally cent) toaunified percent) andoverseas invested companies(15or24per- changing China’s (33 existing ratesfordomesticfirms awaited law willtake effect 2008, from1stJanuary was andunjusttodomesticenterprises. unfair The long criticism thattheoriginaldualincometaxmechanism against and22abstentions. This hascomeafteryears of incometaxlawterprise with2,826votes forand37 On Friday, March16th2007,theNPCadopteden- Corporate IncomeTax Law full sessioninBeijing. ratified bythelawmakers asthey concluded theirannual ture, including China’s Corporate Tax Law. The lawwas to discussnumerous topicsassociatedwithChina’s fu- metoneofitslastpledges. finally years ago,than five andwithnew taxregulations, ithas World Trade Organization (WTO) sincejoiningitmore almostallitscommitmentstothe China hasfulfilled China’s NewTax Law ments to offset the impact of a unified taxrate. ments tooffset theimpact ofaunified of suchbusinesseshave adjust- internal alreadystarted raised by two percentagepoints every year. A number for thenew ratetobephasedin. With thetaxrate being December 2007willbegiven period year grace afive 2008 andthatenjoy preferential taxratesnow until31st astheChinesegovernment asfar In fact isconcerned, haveForeign beenenjoying fundedfirms the The NationalPeople’s Congress (NPC)metinMarch Existingpreferentialincometaxpoliciesaimedaten- – from thatneedprioritysupport New high-techfirms – useofresourcesandraw thatmake Firms efficient ma- – Theexisting 50percenttaxbreakforexport-oriented – forestry, Tax intheagriculture, stock breaksforfirms – investing ininfrastruc- Existingtaxbreaksforfirms – companieswillbe Eligible smalllow-profit-earning – Venture andcompaniesthatinvest capitalenterprises – suchasbiotechandaerospace High-technology firms, – come taxiscut by 1percent. Therefore ifitislowered gainifthein- A bankwillseea1to1.5percent profit A lower fordomestic banks. taxratemeanshigherprofit Benefits toChineseCompanies havens andothermethods. throughtax fer pricingamongassociatedenterprises onpreventingare thearticles taxevasion throughtrans- effective management”. Oneitemwhich willbeclarified bined standardsof“placeregistration” and“placeof company isresidentornon-residentdependsoncom- pay taxonly withinChina. onincomeearned Whether a abroad, willhave whereas “non-residententerprises” to to pay taxonbothdomesticincomeandfrom willberequired tional practices,“residententerprises” practices. ternational Along thesamelineofinterna- which isinlinewithin- with thelegal persondefinition, ataxpayer,accounting” criteriontodefine replacingit The draftlaw nolongerusesthe“independenteconomic Other Amendments derdeveloped western regions willcontinue. toinvestcouraging enterprises ineconomically un- “transitional” taxpreferentialtreatment. area like Shanghai’s PudongNew Area willreceive a like ShenzhenorinaStateCouncil-appointedspecial the Stateandarelocatedinaspecialeconomiczone fromnew preferentialtaxrates. but willbenefit no longerbegiven directtaxbreaksforexemptions, thatprovideterials andenterprises will public service continued. willbedis- foreignfirms for manufacturing-oriented foreign companiesandthepreferentialtaxtreatment sectorswillcontinue. raising andfisheries State willremaininforce. power andwater by conservancy thatsupported the railways, docks,airports, ture like ports, highways, allowed topay ataxrateof20percent rules. willbestipulatedintheimplementation but specified, of preferentialtaxtreatment.Detailshave not yet been vation andwork safetywillbeeligible forafullerrange in environment-protection, energy andwater conser- percent. willbeallowedmajor support topay ataxrateof15 companies orthattheStatedecidesneed modities Dismantleexport rebate rate offollowing com- I. announced asfollows: cil. Relatedissueswitheffect asfrom July 1st2007were commodities were recently authorizedbytheStateCoun- The adjustmentsregarding theexportrebate rate ofsome fromthe research report World Bankanalyzed thatsta- vestment However strategy inChinathelongterm. a tochangetheirin- fear thatitwould causeforeignfirms the inflow ofoverseas directinvestment inChina. They taxrate,fearingthatitcouldhurt regarding theunified ment. including pre-taxreductionandtaxrebateforre-invest- nies willalsobewipedfromsomeothertaxincentives, more ayear. will reducethisburdeninitially toonly USD8billion a year after anincreaseto25percentbuttheincrements wouldfor overseas standatUSD43billionmore firms China totaltaxrevenue. Itisestimatedthatthetax hike billion (USD$101.9billion)intaxes –21.12percentof Last year, overseas-funded companiespaidRMB795 with atotalregistered capitalofUSD$691.9billion. establishment of594,000overseas-funded enterprises, By theendoflastyear (2006),Chinahasapproved the Situation forForeignCompanies wholly-owned Chinesecompanies. enjoyed thepreferentialtaxrates,ratherthantheirown fromjointventures, which now mostoftheirprofit earn seek independentandnationalbrands. As somefirms funds comefromdomesticinvestors. and busgiant Yutong asmostoftheir Groupmay benefit such asChinaNationalHeavy Duty Truck GroupCorp gain fromthetaxcut.Commercialvehicle enterprises metals,too,stand to andnon-ferrous coal, papermaking tions given todomestichigh-techbusinesses. noranyrates like theoverseas ofthetaxreduc- firms, come taxbecausethey neither enjoy thefavourable tax now haveries. Mostofsuchfirms topay a33percentin- traditional sectorswould beamongthemajorbeneficia- means asaddedgainofRMB6billion. ofRMB78billionin2005,it a pre-provision profit trial andCommercialBankofChina(ICBC),which has of8to12percent.For example,added profit theIndus- from 33to25percent,domesticbankscouldrealizean of Taxation onAdjustingExport RebateRate ofFinanceandStateAdministration Circular ofMinistry . Animalsandplantsontheverge of extinction as 1. Many andanalysts experts have voiced theirconcerns fromtheincreasedincometax,foreigncompa- Apart It isexpected may thatsomedomestic manufacturers Sectors suchasfoodandbeverages, ironandsteel, companiesinvolvedDomestic manufacturing insome well asrelatedproducts; [email protected] For furtherinformation pleasecontact: by KlausKoehler, Managing Director, KlakoGroup vantages longenjoyed by foreigncompaniesinChina. affect theprivilegeddefinitely statusandcompetitive ad- anditslocation,itwill pending onthetypeofindustry into effect asthey willbegiven period. year grace afive beforethelawmainland tosetuptheirfactories comes nowis predictedthatsomemanufactures may tothe rush rate (sameasdomesticcompanies). At thesametime,it market aspreviously they were subjectedtoa33%tax andretailers,willmake amove intothe firms service Kong companies,suchasconsultancy, service financial tion technology andenergy-saving bulbs. engines andwindpower generators,seawater desalina- airplane ronmental protection,includingmoreefficient hai-based technology envi- center forproductsserving announced itwillinvest USD $50millioninitsShang- erential treatment.GeneralElectric(GE)forexample has in Chinaordertotake advantage ofthehigh-techpref- business”bythe “green companiesalreadyestablished development andamovewill spurmorescientific into new plantininlandChina. in China. The company isnow consideringsettingupa makingitdesirablefactors toincreasetheirinvestment andahugemarket arealsoimportant good infrastructure howevertheir structure; abundanthumanresources, The company isnotsurehow thenew law willimpact China,employingSouthern morethan130,000people. joys anaverage taxrateofonly 2%,withfourplantsin inChina, has factories Vietnam andIndonesia,now en- shoes,includingNike, whichmaker ofbrandedsports mittance. a clearstrategy forincome repatriation anddividend re- companies inChinaaswell asincominginvestors tohave forexistingvestment. Ifthisisthecase itisimportant attractingforeignin- vice inChinaarethemajorfactors andgovernment businessinfrastructure upgraded ser- broad market, richlaboursourcesaswell asincreasingly ble politicalsituation,soundeconomicdevelopment, .Leather; 6. Metalcarbideandactive carbonproducts; 5. Chemical productsuchaschlorineandcolouring 4. Fertilizer (carbamideand ammoniumphosphate 3. Mineralproductssuchassalt,solvent oil,cement, 2. Although the impact of the tax reform willvary de- Although theimpactoftaxreform It isalsoanticipatedthatoverseas, particularly Hong It isalsoexpected thatthis new changeinthetaxlaw Yue Yuen Industrial(Holdings),theworld’s largest matters (fine chemicalproductisexcluded); matters (fine ded); whose rebatedaredismantledalreadyexclu- petroleum gas; butaneandliquefied propane,liquefied liquefied 61 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 62 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS starting a new inChina, evenstarting business “fran- iftheterm Franchises areproven tobethemost successfulway of measures. changes tothelegal framework setupunderthe2004 2004. The New Regulations introduce several significant chise Measures thatwere implemented onFebruary 1st Franchises). Itreplaces theexistingCommercial Fran- tion (Regulations onthe Administration ofCommercial May 1st2007,Chinareleased anew Franchise Regula- China’s NewFranchiseRegulations Timekeeper, toy andothermiscellaneousproducts 13. to11percentor9percent; Furniture 12. Planer, slottingmachine,cuttingmachineand 11. otherbasemetalsaswell astheirproducts(exclud- 10. rebaterateof: deducting theexport modities Deductexport rebate rate ofthefollowing com- II. Vessel sectionandnon-mechanizedvessel. 10. 9. a part ofsteelandproducts(excluding petroleum apart 9. somestonematerials,pottery, glass,pearl,gem, 8. Shoesandhat,umbrellafeatherproductsto11 7. Wearing apparelto11percent; 6. Paper productsto5percent; 5. Box andbagsto11percent,theleatherproducts 4. andtheirproductsto5percent; Plastics,rubber 3. ofchemicalproductsto9percentor5per- apart 2. Plantoilto5percent; 1. metalproductssuchasnon-al- Simplenon-ferrous 9. Plaincarbonwelded tubesproducts(petroleum 8. ofwood apart block anddisposable wooden prod- 7. to 11percent; brazing machineto9percent; motorcycle, bike, trailer, tapand riseranditsparts, nace, coke oven, stapler, Sartorius, snowmobile, revolving draintapanditsparts, pump, fan, fur- broaching machineto11percent,dieselengine, to5percent; and aluminiumconstruction) dismantled andaluminiumfoil,pipe rebatesalready ing commoditieswiththeirexport nouncement No.46,2003)shallstay unchanged; of VAT (an- ofMarineEngineeringConstruction and General Administration ofCustomsonRebate ofFinance trade stipulatedinCircularofMinistry ofdomestic the marineengineeringconstruction double pipe) to5percent. rebaterateof The export noble metal anditsproductsto5percent; percent; 5 percent; cent; loy aluminiumbars; double-pipe isexcluded); ucts; website www.sccc.ch. merce for commoditynamesandtariff codesorvisitthe Please contacttheSwiss-ChineseChamberofCom- rebate. adjusted export toregisterfailing beforeJuly 20,2007shallfollow the mitted tofollow rebaterate. theoriginalexport Those rebateto registerexport beforeJuly 20,2007areper- estimate billoftheprojecttotaxauthoritiesincharge of ject (bothoriginalandcopy arerequired)andbudgetary foreigncontractedpro- quired) orcontractoflongterm cation ofbidwinning(bothoriginalandcopy arere- and buildingmaterialprice,thosetake effective certifi- equipment tract offoreigncontractedprojectwithfixed tracted projectbeforeJuly con- 1,2007orsignlongterm foreigncon- thatwinbidoflongterm ject qualification 20, 2007shallfollow rebate. theadjustedexport toregisterThose failing beforeJulymitted tobefinished. fore July rebaterateareper- 20,2007,andtheirexport to taxauthoritiesincharge rebatetoregister ofexport be- contract(bothoriginalandcopythe export arerequired) rebatedismantlingbeforeJulyexport 1,2007shalltake Commodity(only rebate). of Export forexport onDeclarationFormshall subjecttothedateofexport shall take effect asfromJuly time 1,2007. The specific rebaterateadjustmentofaboveThe export commodity TimeIV. for implementation Peanut, canvas, stamp. board, carved stamp,andfiscal from tax Thefollowing commoditiesshallbeexempted III. to5percent. Viscose fiber 15. ofwooden apart productsto5percent; 14. economy intheworld, the franchise sectorwillrepresent thatinthemostrapidly growingThere isnosurprise Market Development some oftheconfusionarisesin China. tem withitsown terminology andthatmay bewhere Franchising isasys- business modelhereareill-defined. chising” isonly vaguely understoodanditslimitsasa Where export enterprises withforeigncontactedpro- enterprises Where export contract involving thatsignexport enterprises Export State Administration of TaxationState Administration Source: MinistryofFinance chisee. pointistonotbecometoodependentonthefran- portant contract isinplace,thenthesecanbediminished. An im- franchisee. However ifasecureandrisk-prooffranchise ment skillsmay beinthreatifthey handitover tothe that theirknowledge, reputationandmanage- expertise, chisors want toensurebrandquality butareconcerned patents, franchisingcanbecomearisk.Foreign fran- Without protecting onesown trademarks,copyrights and government. sibly cannotobtaindistribution licensesby theChinese they themselves withthemarket andpos- arenotfamiliar their productswould requiretosetupfranchisesbecause many companieslookingforphysical distributionof sources toexpand atsuchaquickpace. At thesametime, issolarge andtheycause thecountry donothave there- franchising asanexpansion methodfornationalsalesbe- over thecountry. Chainstores,suchasStarbucks,use regulations thenwhen establishing onesown entities all side ofthefranchisorandthereareeasiergovernment method ofinvestment asless capitalisrequiredonthe As aconsequence,franchisinghasbecomepopular purchase more,offering companiesthemarket potential. tently ontherise,people have to theopportunity percapitaldisposable incomeisconsis- urban andrural even potentialforChinamarket seekers. greater As the franchise growth andwiththenew regulations thereis China’s withits consistentmarket growth corresponds Reasons forFranchising tise inthefood, industries. retailingorservice Queen requirestohave marketing andoperationexper- gional franchisingfeeashighUSD2million,Dairy ing feesfromregional franchisees. Inadditiontoare- capital. strictions onborrowed finance is approximately RMB3million(USD 375,211)withre- costforaMcDonald’smum start-up franchiseinChina waited until2000tobegin franchising. Today themini- operating in1987andMcDonald’s inthe1990s.Both around theworld, Kentucky Fried Chicken (KFC)began franchisesystemsinChinaand of themostfamous 21,DIOCoffeeCentury andStarbucksCoffee. As two China includeSubway, TNT, 3M,CambridgeEnglish, shopsandclothingstores. dry foodandbeverageand beautyfacilities, eateries,laun- companies, educationandtraininghealth maintenance shops,homedecorationstores,realestate dustries inChinaareconvenience stores,carrepairand thetopfranchisein- wide rangeofindustries.Currently on-year rateof40to50%.Franchises aredeveloping in ferent industries. The market hasbeengrowing ata year- operating inChinawith2,600franchiseesover 60dif- years. At theendof2006,168,000franchisestoreswere 30% ofChina’s totalretail saleswithinthenext five Naturally thereisalways arisk,particularly inChina. KFC requiresanestimatedUSD1millioninfranchis- Examples ofsuccessfulglobalfranchisesystemsin (continued onnext page) Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ T–LINK MANAGEMENT LTD T–LINK GroupHeadoffice Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Switzerland, AustriaandLiechtenstein Eastern partof T–LINKRHEINTALLTD Ÿ Ÿ Ÿ T–LINKTRANSPO-PACKLTD oeae www.t-link.ch Homepage: Ÿ Ÿ Ÿ Ÿ 

  T –LINKGroupSwitzerland Warehousing Warehousing cases) wooden CarpenterShop(for Own (plantquarantine) WoodCertificate trading material Packaging with CORTEC also Corrosionprotection, stuffingandlashing Container at customer-site) Services (also Packaging Industrialfreightforwardingandlogistics Cross-Trade-Transportation (also from/to China) Cross-Trade-Transportation(alsofrom/to InternationalExhibitionTransportationincl. Plant-Dismanteling/Packaging/Moving Worldwideprojecttransportation(base–base) Industrialfreightforwardingandlogistics Corrosion protection, also with CORTEC also Corrosionprotection, ofeverykind Packaging Own Carpenter Shop (for wooden cases) wooden CarpenterShop(for Own (plantquarantine) WoodCertificate trading material Packaging +41(0)81–7402900 emi: [email protected] e-mail: „on handling“support site Support for Letter of credit business Support forLetterofcreditbusiness Container stuffing and lashing stuffingandlashing Container Warehousing Warehousing +41 (0)55–4157812 +41 (0)43–2881888 +41 (0)44–8506777 Kirchstrasse 42/CH–8807Freienbach Faehrhuettenstrasse 1/CH–9477 Truebbach/SG P.O. Box 166 / CH – 8600 Duebendorf 1/ZH P.O. Box166/CH–8600Duebendorf1/ZH -al [email protected] e-mail: -al [email protected] e-mail: Industriestrasse 139/CH–8155Niederhasli/ZH The efficientexportpackagingcompany, The efficientexportpackagingcompany, Worldwide TransportationWorldwide Engineering, established 2003 established 1990 established 1990     +41(0)44–8506900 +41 (0)55–4157801 +41 (0)81–7402903 +41 (0)43–2881899 £ £ -VCI -VCI 63 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 64 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS thefranchisee pays arequired fee orfeestothefran- – modelof thefranchiseedoesbusinessunderauniform – thefranchisorconferstofranchisee righttouse – andpossesssuch thefranchisormustbeanenterprise – ements exists: tionship isafranchisewhen thefollowing fourbasicel- not. Itshouldbeclearly understood that abusinessrela- whicha franchiseasjointventure itis typestructure, to have topay toenterintoafranchise. They understand not expect tohave topay forbrandrightsanddonotwant fees tothefranchisor.” of businessoperation;andthefranchiseepays franchise model under thecontractinaccordancewithauniform through execution ofacontract;thefranchiseeoperates and confersusageoftheseresourcestothefranchise istered trademark,businesslogo, patent,orknow-how, the franchisorpossessesbusinessresources,suchasreg- mercial franchiseasthefollowing: clearlyThe new acom- Franchise Regulations defines Definition ofaFranchiseinChina “hands-on” approachisrequiredinChina. in ordertodevelop strongtieswiththefranchisee, a quired inconductingany typeofbusinessinChinaand recommended. Carefulattentionandobservation isre- one,duediligenceishighly to choosethemostbeneficial Inorder upon aninitialchoiceofafranchisepartner(s). for theforeignfranchisorinChinacandependcritically more ofChina’s regional markets. investment toestablish theirbrandinoneor necessary nancing asmany foreignfranchisorsunderestimatethe triation offranchisefees. This isthenfollowed by fi- licensingandrepa- nancing, foreignexchange, import, thefranchisor’swill determine flexibility forcontrol,fi- foreign investment, oncechosen, andwhere structure, particularly where fewer sectorsarebeingconstrainedby forChineseconsumers. “Bag Breakfast” timated. McDonald’s adapted itsmenuby includinga course, localcompetition,which shouldnotbeunderes- pend upontiming,localtaste,economy, andof inanyuct orservice ofChina’s regional markets willde- do globally. The potentialforaforeignfranchisedprod- taste willvary acrossprovinces inChina,sameasthey larly aslanguage,culture,development andconsumer It isamistake to considerChinaasonemarket, particu- Considerations beforeenteringintoaFranchise chisor. logo, etc);and motion, qualitycontrol,design andlayout ofstore, operation (forexample, systemofmanagement,pro- its businessresourcesthroughacontract; logo, patentorknow-how; business resourcesasaregistered trademark,business The confusionforlocalbusinesspeopleisthatthey do “A franchiseisinvolved inbusinessactivity inwhich The next issuesarelocalinfluences. Successorfailure considerationsarekey structure inChina, Corporate unless agreed uponbyunless agreed thefranchisor. ofthefranchisecontract, ter expiration ortermination chisor’s trademark,tradename,patentandknow-how af- transfer afranchisetoothers,orcontinueusethefran- lowing orexpiration. Franchisees itstermination may not throughout thedurationoffranchisecontractandfol- to keep franchisor’s both tradesecretsconfidential, uals canalsobefranchisees. All franchiseesarerequired measures arecancelledby thenew regulations. Individ- forfranchiseescontainedinthe2004 All qualifications Regulations forFranchisees discretion by theapproval authorities. border franchisingisallowed. This may besubjectto inChina,itisstillnotclearwhether cross- corporated quirements anddoesnotrequirethefranchisortobein- the new re- regulation cancelsprevious additionalfiling crossborderfranchising. mation concerning Although locationsabroad)canalsoapply.qualified quirements buthave nooperationsinChina(i.e.have two may imply thatforeignfranchisorswho meetthosere- erated storesnolongerneedtobelocatedinChina. This operations arepossible, meaningthatthetwo directly op- The new regulations indicatethatcross-borderfranchise for atleastoneyear inChina(“the2-stores-1-year rule”). had tooperateaminimumoftwo “directly-owned” stores that beforeengaginginfranchisingChina,franchisors nese franchisors. asChi- that FIEsaresubjecttothesamefranchisingrules ments forForeign Invested (FIEs),implying Enterprises The new regulations donotimposeany require- further Regulations forFranchisors ments promising profits tofranchisees. ments promisingprofits new regulations forbid franchisorstopublish advertise- fees areforandwhat thetimeframe forpayment is. The drafted by thefranchisortoexplain what thedesignated For theestablishment fees,awrittenlettermustbe it isrecommendedtochecktheimplementationrules. chisees areallowed toestablish theirown fees. However, The new regulations imply thatfranchisorsandfran- Franchising Fees franchisee cancelsthecontract. there isnoindicationofany associatedliabilitiesifthe provides thefranchiseewithmorefreedom,however chisee canunilaterally withdraw fromthecontract. This not apply toextensions ofafranchiseagreement. tobyunless otherwiseagreed thefranchisee. This does The contractperiodshouldnotbelessthanthreeyears, Franchise contract duration andrequirements Other MajorItemsforConsideration The new regulations donotspecifyany otherinfor- In the2004Measures,oneofpre-requisiteswhat During theperiodoffranchisecontractfran- stipulate any penaltiesonfranchisees. 50,000 –RMB500,000(USD6,40064,000). willbeassessedby RMB stores-1-year-rule”, thefine (USD 3,800)toRMB500,00064,200). fromRMB30,000 fine raises themaximumpermissible Heavier penaltieshave beenimplemented. The new law Penalties the righttorescindcontract. franchisor bearingallliabilitiesandthefranchiseehas required disclosuresby thefranchisor, willresultinthe oromissioninconnectionwith information tion orfalse by thefranchiseecausedbycurred retentionofinforma- all includedwithinthecontract). Any economiclossin- thebusiness(which mustbe forrunning tial information franchisor hastoprovide thefranchiseewithallessen- At least30days beforethefranchisecontractbegins, the Information Disclosure requirements chisors forthe use oftradenamesortrademarks. Cur- chisees tomake periodic royalty feepayments to fran- able inChina. renderedwithinChinaareclearlyfees forservices tax- vices shouldnotbesubjectto Chinese taxes. However rendered by theforeignfranchisorandfeesfortheseser- maychise arrangement involve offshore tobe services components. For example, onecomponentofthefran- intodifferentsirable tobreakafranchisearrangement In ordertominimizetheoverall taxburden,itmay bede- Tax IssuesforFranchisesinChina It is important tonotethat thenewIt isimportant regulations donot If afranchisordoesnotsatisfythecriteriaof“2- A typical licensing arrangement wouldA typicallicensingarrangement requirefran- thebestwayhome. discover to Time yhm nums joy. utmost in home and fly warmth Scandinavian the Stockholm Discover via Copenhagen. Beijing or to flights daily SAS several Airlines. you Scandinavian offers with is there get comfortable to most way and your easiest visit The to friends. time and family best The Summer. be will it Soon Scandinavia. via smoothly Beijing, www.flysas.ch book to Time chisor. establishment, dependingonthereputationoffran- tion tolocationandpossibly even fromestablishment to willvaryexpected fromloca- thatimplementationrules between thenew regulations andtheoldmeasures.Itis tributed. There seemstobequiteafew inconsistencies have theimplementation rules Thus far notyet beendis- Future Outlook unified at25%. unified 1st2008theincometax willbe fromJanuary Starting income taxonthegeneratedby theseservices. vice companies,thefranchisorwillbesubjectedto tablished, suchas Wholly Foreign Ownedtradingorser- establishments arees- lishments inChina.Ifpermanent franchisors may estab- bepushedtocreatepermanent chisor, suchasmanagementortrainingarrangements, abroad toaforeignfranchisorfromChina. taxes willburdentheflow ofroyalty typefeesremitted applied toroyalty payments remitted abroad. All ofthese In additionthereisthe5%Business Tax which willbe taxation treatyapplicable tothefranchisearrangement. tween 10–20%onroyalties, subject towhether adouble rently Chinataxlaws imposeawithholdingtaxofbe- If a franchisee requires support inChinafromthefran- If afranchiseerequiressupport E-mail: [email protected] Managing Director by KlausKoehler Klako Group 65 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 66 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS erned byerned theLaw. “res”asmentionedherein The term from theattributionandutilization oftheresshallbegov- Rules. Pledge Right,Lien,Possession andSupplementary Land,Use Construction Right, Easement,Mortgage ership, SpecialRuleson Acquiring Ownership,Rightto Ownership, NeighbouringRelationship,CommonOwn- State Ownership,Collective OwnershipandPrivate Right, Right, ProtectionofProperty nation ofProperty Termi-and Creation, Alteration,Alienation Principles, Possession. RightsforSecurity, Rights,Property Usufructuary and namely,chapters in5parts, GeneralRules,Ownership, of therightholders. The Law 19 consistsof247articles, theattributionof the resandsafeguard thebenefits fine Constitution Law istoclearly de- andoneofitspurposes China (the“Law”) isenactedinaccordancewiththe RightLawThe Property ofthePeople’s Republic of Source: www.npc.gov.cn Effective from October1st2007 Promulgated onMarch 16th2007 Subject: Property RightLaw Issued by: The NationalPeople’s Congress Property RightLawofthePeople’s RepublicofChina System. Management Information Personal Foreign ExchangeSaleandSettlement notes, andthe Technical Conditionsforthe Access ofthe ing Form forthe Withdrawal ofForeign Bank- Currency Provisions.Supplementary Systemandthe ment ManagementInformation notes, thePersonal Foreign ExchangeSaleandSettle- eign Exchange Accounts andForeign Bank- Currency the Capital Account, the Administration ofPersonal For- Administration ofthePersonal Foreign Exchangeunder sonal Foreign ExchangeundertheCurrent Account, the the GeneralProvisions, the Administration ofthePer- individual foreignexchange. and simplifytheoperationofbanksindividuals on of Foreign Exchange(the“SAFE”)inordertoregulate “Rules”) have beenenactedby theState Administration the Administration onIndividual Foreign Exchange(the The DetailedRulesforImplementingtheMeasures Source: www.safe.gov.cn Effective from February 1st2007 Promulgated onJanuary 5th2007 Subject: IndividualForeign Exchange Issued by: The State Administration ofForeign Exchange Administration onIndividualForeignExchange Detailed RulesforImplementingtheMeasures According totheLaw, thecivil relationships incurred The mainmattersmentionedby theLaw areBasic The totalannualamountshallbethevalue equivalent The Rulesalsohastwo appendixes, namely, theFill- in6chapters,namely,The Rulesconsistsof41articles 4. to printtheLetterofNoticeonForeign4. ExchangeSet- 3. to recordthebusinessdataofforeignexchange sale to checkandverify theevidential documentsprovided2. to enquireaboutthesituationofforeignexchange sale 1. shall be: settlement businessforanindividual, themainprocess ness foreignexchange income andexpenditure. foreign exchange incomeandexpenditure andnon-busi- accountmayunder thecurrent bedivided intobusiness line withtherelatedprovisions. ofChinain outoftheterritory ings accountsorcarried abroad, depositedintohisorherforeignexchange sav- change purchasedby anindividual may beremitted light ofthepositionpayment balance. The foreignex- may make adjustmentsonthetotal annualamountin to USD50,000foreachpersonevery year, andtheSAFE yalonr hog h wes assembly.by allowners throughtheowners’ mattersthatshallbedetermined ulates somesignificant sembly andvoteThe Law foranowners’committee. stip- as- areas,theownersbuilding may setupanowners’ oftheowners of ters. Inordertoprotectthebenefits themanagement ontherealtyregis-gan shallundertake ownership andcontentsofrealtytheregistration or- related provisions. has notbeenregistered. This isdifferent fromprevious of thecontractisnotaffected right where suchproperty into effect when itcomes intoexistence, andthe validity otherwise stipulatedby any law, such contractshallgo rightofrealties,unlessitis oftheproperty termination onthecreation, alteration,alienationor ties concerned livered accordingtolaw. rightofchattelsshallbede- alienation oftheproperty be subjecttoregistration inlinewithlaw. The creationor rightofrealties shall oftheproperty ation ortermination rightforsecurity.right andproperty accordance withlaw includingownership, usufructuary resenjoyeddirect controlover aspecific by theholderin right” asmentionedhereinmeanstheexclusive rightof shall meanrealtiesandchattels. “property The term Where abankishandlingforeignexchange saleand Personal foreignexchange incomeandexpenditure The realtyregister shallbethebasisfordeciding As regards acontract enteredintoby therelatedpar- The Law stipulatesthatthecreation,alteration,alien- accounting voucher forfuturereference. change saleandsettlementsystemmaintainitas tlement/Purchase throughthepersonalforeignex- and settlementsystemsumby sum;and and settlementintothepersonalforeignexchange sale by suchindividual; foreign exchange saleandsettlement system; and settlementofsuchindividual throughthepersonal Source: www.gov.cn Effective from May1st2007 Promulgated onFebruary 6th2007 Subject: Commercial Franchising Issued by: The StateCouncil Franchising Regulations onthe Administration ofCommercial Source: www.customs.gov.cn Effective from April 1st2007 Promulgated onFebruary 2nd2007 Subject: Direct ReturnofImportedGoods Issued by: The ChinaCustoms Goods Imported China for the Administration ofDirect Return of Measures oftheCustomsPeople’s Republic of Source: www.moh.gov.cn Effective from February 13th2007 Promulgated onFebruary 13th2007 Subject: HygienicStandard for Cosmetics Issued by: The MinistryofHealth (2007) dard for Cosmetics lated IssuesonImplementationoftheHygienicStan- cular oftheMinistryHealthConcerning theRe- Hygienic Standard for Cosmetics(2007)andtheCir- Source: www.customs.gov.cn Effective from February 1st2007 Promulgated onJanuary 31st2007 Subject: ExemptionofImportDuties Taxation istration ofCustoms,andtheState Administration of Issued by: The MinistryofFinance, theGeneral Admin- Administration of Taxation) the General Administration ofCustomsandtheState 45oftheMinistryFinance, Teaching (Decree No. ties from the Research UsedforArticles and Scientific Provisions Concerning theExemption Du- ofImport Further SubjectsPublishedbyWenfei tinued to grant industriallanduserights atpriceslowertinued togrant 2006) andrelatedregulations. and Tightening Controlover LandUseRights(issued in the StateCouncil’s DecisiononIntensifyingReforms The MOFCOMhasrecently of emphasizeditssupport Land UseRights MOFCOM notedthatsomelocal governments con- http://www.wenfei.com/publications/html Source: ChinaLegal Briefing by Wenfei Attorneys-at-Law and demandby reference toabasket ofcurrencies. tendencies,onthebasisofmarket supply and financial economic ket accordingtothedomesticandinternational mar- tain thestabilityofmacro-economy andfinancial payments,mote abasicbalanceofinternational andsus- exchange ratesatareasonable andbalancedlevel, pro- floatingofRMBexchange rates,keepnormal theRMB Exchange Center. dayon thecurrent asannouncedby theChinaForeign of 0.5%themiddlepriceUSDagainstRMB foreign exchange market may befloatedwithintherange price oftheUSDagainstRMBininter-bank spot from 0.3%to0.5%. This meansthatthedaily trading prices oftheUSDagainstRMBhasbeenexpanded minbi (RMB)intheinterbankspotexchange market. United StatesDollar(USD)againsttheChineseRen- expansion ofthefloatingrange 18, 2007,afurther The People’s BankofChina(PBOC)announcedonMay Expanded RMB FloatingRange Chamber. Full report available at Taylor Wessing orcontactthe 2008. tracts (Law). The Law willenterintoeffect 1, onJanuary Law ofthePeople’s Republic ofChinaonLaborCon- tional People’s promulgatedthelong-awaited Congress On June29,2007,theStandingCommitteeofNa- Promulgated Labor ContractLaw rights remainswiththelocallandbureaus. thatthemaincompetencythe fact inrelationtolanduse activitiestighten theirrelatedsupervision irrespective of local subsidiariesofMOFCOM)may inthefuture proval authoritiesofforeigninvestment projects(i.e.the comply withChina’s landpolicies. efforts, andawareness oftheneedtoprotectlandand hasbeenestablished. ment enterprise use feespaidby foreigninvestors afteraforeigninvest- eign investors frompaying thelandtaxorrefundedland- than theminimumpricesstipulatedby law, exempted for- The PBOC further statedthatitwouldThe PBOCfurther maintainthe As ofMay 21,2007,thefloatingrangeoftrading It canbeexpected thatthe local examination andap- MOFCOM urges localauthoritiestoenhancetheir For furtherinformation pleasecontact: Mail: [email protected] Source: ChinaTips Newsletter Dr. Joachim Glatter by Taylor Wessing Attorney-at-Law 67 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 68 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS hold inthetarget. of theforeigncompany inexchange ofthesharesthey Commerce (“MOC”)beforethey canobtaintheshares taining tooverseas investment of (4)withtheMinistry procedureper- pany mustgothroughtheverification any under-valued priceisforbidden. transferring appraisal value derived by aChina-located valuer and that thepriceoftransactionshallbebasedupon on theforeigncompany. explicitly Itis further required China-located M&Aadvisortoconducttheduediligence get domesticcompany oritsowner shouldengagea In assessingwhether thesepreconditionsaremet,thetar- Thetradingpriceofthestocksforeigncompany – Thestocksoftheforeigncompany shouldbepublicly – Theforeigncompany hastobealistedcompany un- – Theforeigncompany anditsmanagementhave not – Theforeigncompany shouldbelegally established in – among others,areprescribedasfollows: conditionsforacross-bordershareswap,liminary blur untilthe adoptionofthe2006M&ARule. The pre- theimplementingguidelinehasbeenleft tic enterprise, a meansofpayment inacquiringthesharesofadomes- doesendorsetheshare-swapAlthough the2003rule as Cross-border Share-swapDeals investors inChina. assess itsimplicationontheM&Aactivities offoreign highlight thenew featuresofthe2006M&ARuleand belowThe summary fromtheCHINAjournal aimsto for anoverseas listingofChina-boundedoperations. is commonly used inventure capitaltransactions aiming lined theregulatory forces onround-trip investment that extended thescopeofanti-monopoly review andstream- expounded theformal requirement for share-swap deals, pared tothe2003regulation, the2006M&ARulehas placed thestandingrulesdatedback to2003(3).Com- which cameintoforce onSeptember8,2006andre- quisition ofdomesticenterprisesbyforeign investors (2), the revision onthe rules regarding themerger andac- In 2006,sixChineseministries(1)jointly promulgated Revision onM&ARulesforFIs 2006 M&A Rule are referring totheoffshore companies 2006 M&ARule arereferring vehicles (SPVs)underthecontext of Special purpose Provisions onSpecialPurpose Vehicles Corporate shareholdersofthe domestictarget com- Corporate is stable within lastoneyear. thecounter markets); traded inoverseas securitiesmarkets (excluding over- der thescrutiny ofsoundsecuritiestransactionsystem; years; been inflictedpenaltyorsanctionwithinlastthree lawa jurisdictionwithsoundcorporate system; tives. when theauthoritiesarebaffled withconflictofobjec- imate politicalinterferenceon commercial transactions omy. For sure,thenew provision could beusedtolegit- ofthesafetynationalecon- thorities outoftheconcern metresistance fromnationalau- Chinese enterprises M&Aofcertain cent incidentswhere foreigninvestors’ ties offoreigninvestors inChina. clout totheagenciesinadministeringM&Aactivi- discretion oftheMOC,new provision gives further when Stateeconomy safety isaffected islargely atthe industries”orthecriteria of stitutes “strategic important ditional brandnames. As theparametersforwhat con- pany which owns well-known trademarksorChinesetra- cause ahand-over ofcontrollingright adomesticcom- might have impactonthesafetyofStateeconomy; or(iii) industries;(ii)hasor withstrategic important cerned ifanacquisition(i)iscon- to theMOCforverification areobligated toreport parties states thattheconcerned M&AtransactioninChina. 12 Article foreign investors’ add inanew provision withextensive catchingeffect on nopoly provisions butalso embodiedinthe2003rule, The 2006M&ARulenotonly reiteratestheanti-mo- Extended Anti-monopolyReview FIEs orM&Aofotheronshorecompanies. ofcommercialloans,setting-upnewtriated intheforms ing andarepatriationplan. The proceedscouldberepa- onthelist- withtheMOCareport are requestedtofile of completingtheoverseas listing,onshore companies appraisal value oftheonshore companies. Within 30days stocksmustbenolessthanthe price value oftheSPVs’ Committee. China SecuritiesRegulatory The issuance need toconductforeignexchange registration. still but is notrequiredtogothroughMOCverification, denominated equityoftheSVPs.Chinesenaturalperson capital oftheonshoreentitiesintoforeigncurrency effectively theRMBdenominatedregistered contribute those ofonshorecompanies,Chineseentrepreneurcould Through swapping thesharesofSVPsinexchange for cedure withtheMOCinordertosetupoffshore SVPs. poration, go-listingandproceedrepatriationoftheSVPs. elaborates therequirementsregarding theincor- further theefforts CircularNo.75hasmadeand Rule affirms trip investment inrelationtoSPVs(5). The 2006M&A issue offoreignexchange registration abouttheround- issued CircularNo.75inOctober2005,addressingthe change. The State Administration ofForeign Exchange jective ofaSPVistogolistinginanoverseas stockex- equity interestinonshoreoperations. The ultimateob- that areestablished by Chineseinvestors andusedtohold The new provision couldbeperceived againstthere- Ps go-listingrequiresapre-clearancewiththe SPVs’ pro- entitymustgothroughtheverification Corporate www.lexsina.ch f +41442916960 t +41442916964 CH-8004 Zurich Reitergasse 3 lexsina gmbh* For further information pleasecontact: before makingany decisionortakingany action. professional adviceonissuescovered inCHINAjournal Readers arecomplete andofficial. recommended toseek are for reference purposeandshouldnotbedeemedas Information anddescriptioncontainedinCHINAjournal could bewell containedandattendedto. largely depend on,amongothers,whether theseconcerns ofthe2006M&ARulewill transaction intheaftermaths dustries andeconomies. Therefore, asuccessful M&A assets aswell asthethreatonsafetyofnationalin- thorities ontherisksofunder-valued disposalofChinese ofnationalau- points theemerging concerns regulatory outtheirM&AtransactionsinChina.Itpin- carrying forforeigninvestors platform phisticated regulatory in The 2006M&ARuleprovides amorematureandso- Conclusion counting foronly 5.5%ofitsannual FDI. The percent- foreign investors was USD2.25billionin2002,ac- by UNCTAD, thevalue ofChina’s cross-border M&Aby the whole Chinamarket. siderations andkey that are certainly relevant factors for aimsatunderliningthegeneralcon- lications, thisreport the risesincepastcoupleofyears. mergers andacquisitions(M&A)hasconstantly beenon investment by theendoflastcentury,greenfield whereas continuous influxofFDIwas mainly of intheform has beenattractingconsiderable foreigninvestors. The “land ofpromise”sinceChina’s and economicreform The Shanghailed Yangtze DeltaRegion has beenthe Emerging M&ATrend • • • M&A intheShanghaiRegion According tothe World Investment complied Report Based onlocalobservation andanalysis ofseriespub- sistance mightbeneeded. Opportunities are present for Swisscompanies butas- special attention. ful M&Apractice andsomekey elementsrequire factors playimportant roleChina-specific insuccess- in Shanghairegion aswell asinotherpartsofChina. There isanemerging trend towards M&Aoperations at-law. Obligation. Itsprofessionals are notadmittedasSwissattorneys- * lexsinaGmbHisalimitedliability company underSwissCodeof Chineseprivate mar- companiesseekforinternational – Privatization ofStateOwnedEnter- andrestructuring – Excessliquidityfromtheworldwide excess ofcapital – Evolving framework, ownership regulatory defined – Many new industries develop andbecomemature, fast – many elements: to 30%forthenext several years. pected thatthetidewillkeep onatthegrowth rateof25% transactions approved by Chineseauthority. Itisex- tinued togainmomentumin2006,witharound1,300 and USD8.25billionrespectively. The M&Afrenzycon- and 13.68%withM&Avalues toppingUSD6.67billion in2004and2005to11.16% age increasedsignificantly nology throughM&A ket expansion, advanced management andnew tech- stricted sectorsandnationwide distributionnetwork prise (SOE)provide toaccessre- opportunities as well astheexpectation ofRMBappreciation practical forM&Atransaction system andmoreopencapitalmarket make itmore market competenceandhumanresources which provide betterqualitytarget companieswith The emerging trendofM&AinChinaistheresult tailed discussionon VC transactionandCircularNo.75. 5 PleaserefertoCHINAjournal issue March2006forade- ber 1,2004andeffective asofthesamedate. prises, promulgatedby ofCommerceonOcto- theMinistry Verification ItemsforInvesting inOverseas toSetupEnter- 2004 andeffective asofthesamedate;Regulations onthe State Development CommissiononOctober9, andReform ifying Overseas Investment Projects,promulgatedby the 4 Relatedregulations includetheInterimRegulation on Ver- effective asof April 12,2003. 3 The revised was rule promulgatedonMarch7,2003and M&A Rule”). gust 8,2006andeffective asofSeptember8,2006(the“2006 by Foreignmestic Enterprises Investors, promulgatedon Au- 2 The InterimRegulation onMerger and Acquisition ofDo- Foreign Exchange. CommitteeandState curities Regulatory Administration of State andCommerce,ChinaSe- Administration ofIndustry Commission,State sets Regulatory Administration of Tax, 1 ofCommerce,StateCouncilState-ownedThe Ministry As- Footnotes: (continued onnext page) 69 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 70 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS Thereisa – issues inthedomesticM&Amarket: crease thelevel ofsuccess,istoknow theChina-specific rate,orinotherword,ment behindthehighfailure toin- up creatingvalue fortheacquiringentities. The key ele- stage. Ofthosethatdo,aneven smallerpercentageend in China,themajoritynever even passtheduediligence cate thatamongalltheattemptstomake asuccessfuldeal transactions.Several orfailed recentstudiesindi- ficult may factors leadtodif- Overlooking theChinaspecific market developed fromabaresiteforjustfew years. tional market throughlong-timepractice,ChineseM&A tem ofM&Awhich hasbeenestablished intheinterna- However, different sys- fromthecompleteandintegrated China-Specific Factors Althoughrapidly evolving, – – – Due to those specific Chinesecharacteristics, Duetothose specific – tries. especially when thedealisrelatedtosensitive indus- to adoptacautiousapproachindealingwiththeissue, are stillnew tend thingsinChina,somedepartments actions inChina. As foreignmergers andtake-overs quirements remainadistinctive featureofM&Atrans- foreign investment restrictions,pervasive approval re- M&A transactions security interestsover assets, rights, theexistence ofpendinglitigation,andpriority nese company’s business Publicly available records onmany aspectsofaChi- of dealsorsensitive transactions. cial toshouldertheresponsibilityapprove new types acquirers, butalsodiscouragesthegovernment offi- gal environment notonly toforeign addsuncertainties ardize China’s industrialsecurities. The ambiguousle- thatforeigntakeoversto therisingconcerns may jeop- powerlatory ofthecentralgovernment, probably due meantime, thelaw andregu- stressedthesupervision Inthe eral andlackdetailedimplementationstructures. tic M&Amarket. However, arestilltoogen- therules 2007, inaneffort toprovide guidelinesforthedomes- by ForeignEnterprises Investors on8thSeptember leased theRegulations On Acquisition ofDomestic pose obstaclestotheM&Atransactions.Chinare- legal framework andregulatory infrastructure study by InterChinaConsultingshows that anM&A transactions inChinaare usually time-consuming gration. due diligence,accuratevaluation andpostdealinte- plicated, fromtarget company search,negotiation, to the whole processofM&Atransactionismorecom- burdens. Therefore tions, transferpricing,orfinancial plex, withsometimeshiddenpoliticalorfamily rela- remainscom- series ofreforms, has beenundertaking hand, company ownership in China,although structure mance, ortominimizethetaxburden.Onother nancial data,eithertoexaggerate thecompany perfor- have separateaccountingsystemstomanipulatethefi- quently laxby foreignstandards.Somecompanies able orunreliable high level ofgovernment participationin . Corporate accountingisalso fre- . Corporate . Despitetherecentrelaxationof , suchaslegal titletoland-use the complexandimmature are ofteneitherunavail- M&A still . A Grow: Managetoaddressdifferent shareholders’ – culturalintegration Corporate Integrate: – tomanagethechange Stabilize:Organisational fit – Post- M&A M&AinChinarequireshigherlevel ofempathy and – Duediligenceprovides toin- uniqueopportunities – businessdevelopment on-the-ground Setupsufficient – Adequatescreeningfortarget companieswithfield- – Strategic planwithsoundunderstandingofthemarket – Pre- M&A elements leadingtosuccess: tailor-made approach.However, therearecommonkey An acquirermay choosethemostappropriatetypewith merger.uity purchase,anassetacquisitionorastatutory M&A transactioninChinamay bedonethroughaneq- Working foraSuccessfulTransaction inChina private companiescouldoffer M&Aopportunities. The for M&Aactivities. wouldtate andinfrastructure bethenext potentialfields cordance withthe reales- WTO commitments, finance, channels. tribution With China’s opening inac- further gaintothemarket presenceanddis- acquirers withfast goods, andlogistic hasbeeninrise,which provided the rity. Recently moving M&Ainretail,fast consumer eign monopoly may jeopardizenationaleconomicsecu- aboutfor- which ontheotherhandalso causedconcerns industry,years hasboostedM&Ainthemachinery as never before. inthelastseveralThe SOErestructuring on commercially abound andopportunities viable terms Investing inChinaisbecomingincreasingly achievable Where opportunitieslie interest sues tothedealorpost-dealintegration. ing toenvironmental, healthandsafetywillposeis- ship network Culturaldifferences isimportant. relat- attention tosubjective aspect.Managingtherelation- ers pability, thekey sensitivities, orpotentialdeal-break- tention oftarget company, ca- itssustainable earning phasetootheraspectssuchastherealin- verification crease thelevel ofsuccess,which goesbeyond adata vorable inordertoshow terms progress pectation gapmay onlessfa- pushtheteamtoagree constant communicationanddecisionautonomy. Ex- themwithframeworkteam andsupport instruction, work basedapproachandcross-checking mation oftheM&Adeal’s potential toincreasevalue reality toavoid approach,oroveresti- opportunistic In terms oftypestarget companies,both SOEsand In terms cessful transaction. forasuc- cluding flexibility andadaptation iscrucial 12 months.Duringtheprocess,constantreview in- whereas thetimingexpectation overseas isonly 6to deal takes onaverage 12to24monthsinChina, [email protected] www.sha.swisscham.org Swiss-Chinese ChamberofCommerce inChina [email protected] www.osec.ch/sbhchina Swiss BusinessHubChina: from: tential partners practical assistanceand/orguidanceinidentifyingpo- developing theirbusinessrelationswithChinacanget Swiss companiesthatareinterestedinstrengtheningor Useful ContactsofAssistanceforSwissCompanies are increasingly willingtoconsidersellorally. management torealizetheirstrategic expansion planand sues. They areseekingforadditionalcapitalandadvanced through theirdesiretoexit orasaresultofsuccessionis- arealsobecomingavailablenomic reform, forM&A veloped inthepast20years withtheunprecedentedeco- stock holdingandreinvestment willbeencouraged. year planindicatesthatnew ofFDI,suchasM&A, forms duce thelevel ofitsequityholding.China’s 11thfive- while inothersectors,theStateisactively seekingtore- glomerates, attemptingtobegloballeaderintheirfields, dustrial sectorstoconsolidateintolarge con- integrated Chinese government isencouragingSOEsinafew in- tant. the rightcontactsincapital continuestobeimpor- in linewith World Trade Organization standards,having businesslawsis intheprocessofreforming tobringthem mining stockprices. And sincetheChinese government state-owned, politicscan stillplay abig roleindeter- the companiestradingonChinese stockmarkets are ofFinance.what comesoutoftheMinistry As mostof dict thefutureofbusinessinChinaistowatch andsee cause thefeelingofsomeinvestors isthattheway topre- hai, China’s supposedcommercialcapital? That’s be- hereandnotinShang- are thesecompanies’headquarters banks suchasGoldmanSachs,UBSandJPMorgan. Why Beijing’s Finance Streetisnow hometomajorinvestment ferently though. of businessesare openinginBeijingyoumightthinkdif- ters compared toBeijing’s 86.Ifyoulookatwhat types the endof2005cityhosted104regional headquar- bars? It’s usually Shanghaithatcomestomindfirst. At tems, betterinfrastructure, thebestrestaurants and which cityisbetter. Who’s got bettertransportation sys- There’s always adebateamongforeigners inChinaasto Shanghai orBeijing, where doyouopenyourbusiness? Headquarter inShanghaiorBeijing? China’s private family businesses,which have justde- quarters. Beijing over ShanghaiasthebasefortheirChinahead- trol, we’re tosee a lotmorebusinesseschoose certain the politicalplayers. SountilBeijinggives upsomecon- planned, itmakes senseforbusinesstosetupshopnear grow.longer andhelptheirChinaoffices for seasonedseniorexecutives tostay inthecountry to keep executives inthe areaallowing andtheirfamilies schoolsinthecitythathelps systemofinternational port tobusinesses. There isalsoagoodsup- are bigbenefits modern Western-style infrastructure. All thesefactors foreasyworldwideponents, alarge port delivery anda baseforelectroniccom- still hasastrongmanufacturing products tailoredespecially fortheChinesemarket. panies have setupshopinthecitysothey candevelop technologyAnd becauseofthis,topinternational com- in itscapitalproviding alarge poolofavailable recruits. power. Many ofthecountry’s topuniversities arelocated ChinaM&A:Piecingtogether aneffective strategy, – Positive andNegative ImpactsofCross-BorderM&A, – References AcquiringCompaniesinChina:Hiddenrisksorjust – But in a country where thingsarestillcentrallyBut inacountry But let’s notforget aboutallofShanghai’s It benefits. Beijing hasoneotherbigadvantage goingforit:brain- Anthony Lin, March 2007 PEI Changhong,LINJiang, Brent Parsons, conflicting approaches?EduardMorcillio,JingHan, 2007 InterChina Opinion Shanghai BusinessReview by Fiducia Management Consultants http://www.eda.admin.ch/shanghai E-mail: [email protected] Consulate General ofSwitzerland Head ofEconomicSection China Economist Source: China Focus , May, 2007 Nie LiqunStella , Issue5, Shanghai , No.7, 71 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS 72 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE LEGAL MATTERS Horváth, Managing Director, SHKBA. Hong Kong S.A.R.,Dr. HansJakob Roth,ConsulGeneral, ConsulateGeneral ofSwitzerland inHongKong andSusan Special Representative, HongKong Economic& Trade Affairs totheEuropean Communities, The Government ofthe Regional Director, Central &EasternEurope HongKong Trade Development Council,Frankfurt, DuncanPescod, President and Dr. EstherNägeli, Vice President, Swiss-Hong Kong Business Association (SHKBA), Lore Buscher, Hong Kong Seminarfollowed byChineseNew Year reception inZurich, March 19th2007:(f.l.t.r.) Dr. Kurt Moser, informativevided avery updateonrecentdevelopments forChina’smore important developing legal system. ond withlaw enforcement,which becomesmoreand with materialaspectsoflegal developments, andthesec- jointly by Dr. EstherNägeliandProf. Andreas Kellerhals. Mainland ChinaorHongKong. The seminarwas chaired competition law, etc.Mostofthespeakers camefrom tal market regulations, thenew law, bankruptcy opments insuchareaslike mergers &acquisitions,capi- nar were given anexcellent overview over recentdevel- personswho attendedthehalfday semi- The aboutfifty veloping businessregulations. date theirknowledge indifferent areas ofChina’s fastde- who are interested indoingbusinesswithChinatoup- designed toallow members ofthebusinesscommunity “Zunfthaus zurZimmerleuten” inZurich onJune 14,was Business Law. This conference, which was heldatthe nized the6thZurich International Forum onChinese national BusinessLawoftheZurich University –orga- the University ofZurich andtheLL.M.-Program Inter- Commerce –incooperation withtheEuropa Institutat The Legal ChapteroftheSwiss-ChineseChamber Forum onChineseBusinessLaw After abriefintroductionby The Forum onedealing was splitintwo thefirst parts, Dr. EstherNägeli she pro- China’s developing fast e-commercesector. The event into theissueofdisputeresolutioninconnectionwith involving China.Finally, Hans Mahnke dressed alternative disputeresolutionsinChinaand settlement. Then, was analternative toarbitrationforinvestment dispute ters anddiscussedthequestionswhether thisagreement enforcement ofjudgementsincivil andcommercialmat- China andHongKong onthereciprocalrecognition and (Hong Kong) presentedthenew between agreement gether withtheEuropeanUnionandUnitedStates. China torankamongtheleadingmerger authoritiesto- the Chinesecompetitionlaw, which islikely toraise actual situationwithregard tothependinglegislation on speech of oftheForum part wasChina. concludedby the The first (Hong Kong), who presentedthenew law bankruptcy in China Area. Hisspeechwas followed by expansion fast very ofBankJuliusBärintheGreater onthe handinformation could notattendwithsomefirst stepped inforDr. MichaelMoser(HongKong), who by in theareaofmergers &acquisitions.Shewas followed After thecoffee break Dr.Meier Thomas Prof.Kellerhals Andreas (Hong Kong) discussedrecent WTO cases Prof.Kwan Wilson , XYBankJuliusBär, Zurich,who Prof. Zhao Yun Dean Prof. Peter Malanczuk , who discussedthe (Hong Kong) ad- Prof. Björn Ahl gave insights Prof. In comparisonto their Western theChinese counterparts, with thementalityofcapitalist businessenvironment. cialist economicsystem,many ofthemthoughstruggled able togooverseas didso. With theirroots stillintheso- lion) by theendof2006. nia isexpected toreachUS$420million(EUR335mil- next January. The annualChineseinvestment inRoma- cally aheadofthecountry’s to theEuropeanUnion entry number ofChinesesettingupbusinessincreaseddrasti- largest inEuropeafterLondon.Even inRomaniathe China Austria Technology Park in Vienna isthesecond the Invest inSweden Agency (ISA). The recently opened Sweden’s biggestforeigninvestor in2006accordingto growing investment abroad.For instance,Chinawillbe UNCTAD (UNConferenceon Trade andDevelopment). Germany, theUKandFrance accordingtoastudyofthe biggest foreigninvestors in the world, behindtheUS, billion) in2010. Today, inthelistof Chinaranksfifth Chinese overseas investments ofUS$15billion(EUR12 A recentstudyby Shanghai’s FudanUniversity forecasts M&A accountsforabout50percentoftotalinvestments. was mainly driven by asurge inmergers andacquisitions. vestment soaredby 123percentcomparedto2004, which ing US$12.3billion(EUR9.6billion)in2005. The in- with totalChineseinvestment inforeigncountriesreach- vesting acrosstheglobe,600ofthemaloneinGermany, in- thereareabout7,000Chineseenterprises Currently rope andtheUS. closely followed bythehighly developed industriesofEu- include Japan, Russiaandthe Southeast Asian countries, onto theinternationalstage. Their favouritedestinations country, Chinesecompanieshavestartedmoving out more thanadecadeofhuge investments flowing intothe movement hasstartedintheoppositedirection. After entering theChinesemarket remains unchanged, anew set upbusinessinChina. While thetrend ofcompanies In themid1990’s, almostevery multinationalcompany Chinese CompaniesGoInternational andassistance. support organizers andespecially foralltheir MsSusanHorváth spring 2008. At theendbothchairpersonsthanked the will beaseventh Forum onChinalegal developments in future events. Itisthereforemorethanlikely thatthere positivevery andencouragingtheorganizers regarding wereparticipants invited. ended withadiscussionroundandanaperotowhich all In the past, most of the Chinese enterprises thatwereIn thepast,mostofChinese enterprises One doesn’t have toseethesignsofChina’s tolookfar Comments by thosewho attendedtheconferencewere ditional products –underestimatingthemarket’s prefer- petitors focusedondigital TV, TCL continuedsellingtra- bought two brands witholdtechnology. While itscom- point totheEuropeanmarket. however,This failed as TCL Schneider,facturer mainly tousethebrands asanentry French conglomerate manu- Thomson andthe German poration which acquiredthetelevision businessofthe brand in2005. IBM’s andits personalcomputerbusiness ThinkPad Western markets. An example isLenovo which tookover to helptheirown Chineseproductsgainafootholdin lished brandstogointernational. They usethose brands haveenterprises taken therouteofacquiringwell-estab- Kazakhstan, Turkmenistan, andIndonesia. mines in Asian countriessuchasRussia,Mongolia, other Chinesecompaniesdeveloping gaspipelinesand CNOOC biddingfortheUSOilcompany Unocaland booming economy. included Recentprojectsinthisfield one ofChina’s strategic prioritiestomeettheneedsofa planwithtaxconcessions. import then theproductswillbeentitledtostate-privileged backtoChina, panies isiftheirproductsareexported from thegovernment. forChinese com- Another benefit apply forforeignexchange oflow-interest RMBloans velopment projects.For instance,suchbusinesses can abroad, especially companiesinvolved inresourcede- preferential policiestoencouragecompaniesinvest institutions. Inaddition,theMOCreleasedaseriesof investmentcountries thatneedcapitalandintermediary panies interestedininvesting abroad, projectsinother The websitecounterparts. provides oncom- information nese investors withtheirforeign exchange information Commerce (MOC)launchedaweb tohelpChi- portal companiesmovingfacilitate abroad. of The Ministry acquisitions andbusinessalliances. were lessaggressive, especially intheareaofmergers & Website: www.unizh.ch/eiz E-Mail: [email protected] Tel.: +41446344891 Hirschengraben 56,CH-8001Zürich Europa InstitutanderUniversität Zürich Prof. Dr. Andreas Kellerhals /Direktor or E-mail: [email protected] Phone +41433439993 Auf derMauer9,CH-8001Zurich NÄGELI ATTORNEYS-AT-LAW Dr. EstherNägeli, LL.M.,MBA For further information pleasecontact: Likewise, Chineseelectronicmanufacturer TCL Cor- Besides investing innaturalresources,China’s large acquiringnaturalresourceshasbecome Furthermore, Since thentheChinesegovernment hasdonemuchto 73 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 74 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD of transactionsincludedclarifythedifferent concepts. stand the“Westerners” way toacquisitionstheexamples the M&AprocessinEurope.Inordertobetterunder- istogive descriptionabout ofthisarticle ashort Purpose the othercontinent. cultures needatranslation oraguidetodobusinessin ing oncethesigningdidtakeplace. Itseamsthatboth meanwhile theChinesethinkEuropeans are notmov- very slow andbureaucratic untilthey cometoaclosing, the cultural differences. European thinktheChineseare sight,theexplanationisratherfirst simpleandroots in so bureaucratic!” As astonishingthismightbeonthe participants from each ChinaandEurope was: “They are nese in Acquisitions?” The answer givenbyaround 200 “What are thedifferences between European andChi- A StepGuideforChineseEnterprises Investing inEurope tion network company Huawei withR&Dandmarketing andSouth inHungary facilities Africa, telecommunica- intheUS, tory Xoceco withproduction TV manufacturer ers arethewhite Haierwithafac- goodsmanufacturer ical mass.Somegoodexamples ofthesesuccessfulplay- local market andonly move abroadafterthey reachcrit- forEuropeancustomers. of contractmanufacturing andthemovefactories businessmodel backtoitsformer company hasjustannouncedtheclosureofitsEuropean halfof2006. The million (EUR74million)inthefirst ence forflat-screen TVs andresultinginalossofUS$93 Most Chinese firms first builduptheirbrandsinthe first Most Chinesefirms STRATEGY FOR EUROPEAN INVESTMENT EUROPEAN INVESTMENT STRATEGY FOR Functional Strategy uiesPlanning Business & Processes, Organisation Strategy Business Unit Macro Strategy BU 1 Core Competency Still rewards doingbusinessinEurope are large given gle market, what Europestillnotis. tions. They feelitismucheasiertodealwithonebigsin- stretchformanying Europeisanenormous organisa- dealing withalarge numberofindividual countriesform- orbrands. lectual property Another reasonisaccesstotechnicalknow how, intel- ution cannelsandknowledge ofdealingcrossborders. European company they cangetbetteraccesstodistrib- tion abroad.Chinesecompaniesfeelthatby acquiringa andthreads)whyreasons (opportunities todoatransac- eign) markets. The managementtaskistounderstandthe inuresgoingto(for- into accounttherisksenterprise intransactionsrootnottaking rection. Mostfailures onthestrategic di- stepistoagree The mostimportant stage. on theinternational time beforemoreandChinesebrandswillappear outsideofChinaanditisjustaquestion opportunities nowadays Chinesecompaniesarelookingforbusiness world thanksmainly toforeigninvestment. However, production, researchanddevelopment centres. turer Gree,which invests currently abroadtoestablish inSweden,facilities andhouseholdappliancemanufac- U2BU3 BU 2 Business Planning The sizeofEuropeandChinaarecomparable, but The Chineseeconomy growing isthefastest inthe Core Strategy Core Organisation Processes Mission FF 3 FF 2 FF 1 … BU 4 How to achieve ? How to compete ? ... Way to succeed? by Fiducia Management Consultants How to go to market ? market to go to How cost (SSC) ? How to optimise Source: ChinaFocus fied. What isthe roleofexpatriate management, whatfied. be preparedoncepotentialacquisition targets areidenti- an existing business.Processesandorganisation have to acquisition ofanew businessunitversus into integration there hastobemadeachoiceon how togomarket – tion. growthmade eitherasaninternal orby acquisi- external penetrate markets withnew canbe products/services tion play”.ofbusinessorto Expandingintonew fields leverage theexiting brandacrossmarkets –“diversifica- amples are Virgin Holdings orKOC Holdingwho ness andtopenetratetheexisting markets. Successfulex- ternative toacquisitionsabroadisfocusoncorebusi- good globalexample forthelaterisStarbucks. The al- tencies toenternew markets/geographies inEurope. A competencies oralternatively leverage exiting compe- distinctive new assets,know-how orskill,i.e.buildnew toacquire Companies goingtoEuropeshouldeithertry andisrarelyporate transformation successfulinonestep. petencies. Doingbothatthesametimewould beacor- towards new markets ortowards gainingadditionalcom- ing fromthecorecompetenciesacompany mightstrive vs.sustainedgrowth. Expand- is sustainedprofitability decisiontobemadeinthemacrostrategy An important expansion hastobedeveloped.strategy forthecorporate forward. Homework hastobemadeandaclearmacro investing inEuropeandtoidentify theappropriatesteps the competitiveadvantages Chinesecompanieshave. If thedecisionistogrow externally, in asecondstep thereasonforgrowing and taskistodefine The first ACTIVITY INTERNAL ACTIVITY EXTERNAL PROCESS TYPICAL ACQUISITION Direction Strategic Strategy Agree Strategy Market Search Market For Possible Management Use external Use Targets Resource If needed Review Management Suspects Guidelines Company Qualify Receive Data future acquisitions and related benefits intotheirshare future acquisitionsandrelated benefits achieve benefits. or/anddistressedcompaniesto quire underperforming Arques Ind. AG, LPac- Partners HansonPLC,Cerberus company. ofthe ket leaderormarket competitorandrisetheprofile egy, increasingmarket share by absorbinga major mar- toequityinvestments.types oflinksfrompartnering tothe companya selectedportfolio by different building panies asRoche,SAPorMicrosoft. The ideaistoaconite GmbH). (e.g.Franzdation ofthetargeted Haniel&Cie industry and adfollow-on acquisitions.Goalisoftenaconsoli- in anindustry, leveraging onexisting corecompetencies or anequityinvestor acquisition a“platform” undertakes point withanexisting unitasstarting smallbusiness start tinctive setsofstrategies. Buy&buildstrategies often growthSuccessful external storiesbaseuponseven dis- inthenegotiation phase. phase andtobefinished have tobetypically answered approval intheinternal planlooklike?a potentialintegration Suchquestions withinEurope/global,howAre theresharedservices can has tobeinthehandsoflocalEuropeanmanagement? Obtain Internal Obtain Management Approval to Share fantasy is important asshareholdersincorporate isimportant Share fantasy Buy cheapisoftenastrategy ofprivate equityhouses. Nestlé orRWE aresuccessfulwith“getthebest”strat- andteststrategy isfollowedA farm by successfulcom- Indicative proceed Approval Paper / Review Make Offer Board Board Requirements Address Tax Address Negotiate Diligence Funding Contract & Buyer & Buyer Process Drafting Deal Plan Due Due (continued onnext page) Commence Integration Close & Integration Integration Plan and and Plan Contract Transfer Execute Execute Appoint Funds Team Sign 75 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 76 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 3. ExperienceSwitzerlandasbusiness location 2. Getintouchwithhigh-rankingpoliticalandbusiness fromthebest 1. Learn hadthreestrands: ofthejourney The purpose D. oftheSwissEmbassyinBeijing. Martinelli panies acceptedtheinvitation extended by Ambassador companies aswellpharmaceutical asITand tradingcom- through Switzerland.Miningcompanies,chemicaland intheoneweekresenting 10companiestookpart tour CFOsand 15 Presidents,Chairmen, Vice Presidents,rep- business location. signed toraise awareness ofSwitzerland asanattractive LOCATION Switzerland. The tourwas especially de- Switzerland from June 3rd toJune 9th2007,courtesyof A high-ranking Chinesebusinessdelegation toured China FactFindingMission2007 growth. divest ofob- Also itmightbeadvisable tofirst should carefully balance acquisitionswithinternal Companiesalwayscluding closingandintegration. areaclearstrategy &processfortheacquisitionin- parts ate andcreatebuyingpower/ brandrecognition. conglomer- gether forcreatingsynergies inadiversified Philips ElectronicsN.V., GEwho combinebusinessesto- glomerates like Siemens AG, Koch IndustriesInc., Group AG. idation phase.Goodexamples are ABB Ltd.orLonza valuation. This oftenleadstoacquisitionsafteraconsol- globally successfulcompaniesproduced aseriesofsem- Excellent co-operationwithrenowned institutionsand Learn fromthebest In every strategy forgrowth in Europemostimportant strategy building/maintainingcon- Last important leaders Business fields New of Internal growth Market tration Pene- I) Buy I) Build & II) Farm II) Test & How togenerate growth III) Get III) Best the opportunities tomake contactwithkeyopportunities personsin The Chinesedelegation showed itsappreciation of the political leaders Get intouchwithhigh-ranking businessand the salary differencesthe salary between ChinaandEurope. vant onhumanresourcemanagement and information seminar was heldontheMountSaentisincludingrele- structures. globalizedbusiness The final about efficient and PricewaterhouseCoopers the delegation informed clients introduced thevariety forinternational ofservices nar aboutBankinginSwitzerland, given by CreditSuisse ous company growth over morethanacentury. A semi- nent ResearchandDevelopment activities forcontinu- ofperma- in Lausanne.Rocheexplained theimportance cessful brandwas given International by Philip Morris An impressive presentationabouthow tobecomeasuc- ofbusinesslocationselection inEurope. use itinterms troduced theirworld competitiveness andhow report to topicsforbusinesssuccessin Europe.IMDin- important theChinesedelegationinars which aboutmost informed [email protected] PricewaterhouseCoopers, Ltd,Zurich Partner, HeadofChinaDesk Dr. RalfC.Schlaepfer Author: petences andyour distinctive culture! corporate ropean environment –stillbuildingonexisting corecom- Make surethatyou understandthenew cultureoftheEu- agement resourcesfornew businesses.Lastbutnot least: andman- solete businessesinordertohave thefinancial IV) Buy IV) cheap cheap V) Share V) fantasy External growth Conglom- VI) Build/ VI) maintain erate VII) Divest- ment for ment Growth sion was a great opportunity to become familiar with tobecomefamiliar sion was opportunity agreat All inalltheLOCATION SwitzerlandFact Finding Mis- business inSwitzerland. gave thedelegates acomprehensive pictureof doing planations oftheworking environment inSwitzerland visits toRadoandPricewaterhouseCoopers andtheirex- troduction tothequalityoflifeinSwitzerland.Company visit toMountSaentis,gave thevisitorsanexcellent in- the exclusive tramtourthroughZurich,alongsidethe from Geneva toLausanne,asightseeingtourinBaseland ship, train,tram,airline).Elementssuchasthecruise (bus, utilising allexisting publicopportunities transport The framework oftheseminarsandmeetingswas setby Experience Switzerlandasabusinesslocation Group picture withFederal Councillor DorisLeuthard (5thfrom left). mention. ably thebestmealduringweek, special deserves sul of Trade followed andCommerceinBerne, by prob- last butnotleastthewarm welcome by theChineseCon- dinnerinZurichledtolivelyat thefinal discussions. And President oftheSwissChineseChamberCommerce Chinese ConsulGeneralLiXiaoSiandKurt Haerri, political contactatthehighestlevel. Contactswiththe buildingwas toestablishernment anotheropportunity ministers ofthecantonBasel Town intheirhistoricgov- most oftheparticipants. A welcome receptionby two Minister ofEconomy, was anunforgettable momentfor one talkswithFederal CouncillorDorisLeuthard, Swiss Suisse Groupwere thehighlightsbusiness-wise.One-to- hosted by Hans-UlrichDoerig, Vice ofCredit Chairman ter Lorange,PresidentofIMD, andanexclusive lunch devoted tothetransferofknow-how. MeetingswithPe- Switzerland, aswell astheelementsofprogramme Tel. 0526740602 CH-8200 Schaffhausen Herrenacker 15 Marco Rhyner LOCATION Switzerland For furtherinformation pleasecontact: Switzerland. goal ofcreatingjobs,investment andtaxrevenues for ness ofSwitzerlandasabusinesslocationtomeetthe isprobablyground themosteffective way toraiseaware- Spending sixdays together andtalkingtothemonthe when itcomestoexpanding theirbusinessinEurope. Chinese entrepreneursandmanagerstheirneeds – BeijingZhongchuang Telecom Test Co.,Ltd. – FujianUPTOP Trading Co.,Ltd. – Universe Shipbuilding(Yangzhou) Co.,Ltd. – Tsinghua HoldingsCo.,Ltd. – ZhejiangLongshengGroupCo.,Ltd. – JiangsuHolly Group International – ShanghaiFosun (Group)Co.,Ltd. Pharmaceutical – ChintGroupCorporation China NationalOverseas EngineeringCorporation – – ChinaMinmetalsCorporation representing: Participants from China, 77 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 78 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD Pop-up Switzerland tions, airlines andtravel fairs. tour operators andtravel services,Swissrepresenta- China andHongKong bySwitzerland Tourism, leading publication isdistributedinlarge numbers inmainland able tooltoattract ChinesevisitingSwitzerland. The free the touristindustryinChinaandisconsidered asavalu- time in1998,ithasachieved highpopularityamongst 2007–08” isavailable now. Published annually, thefirst The new andupdatededition “View Switzerland Swiss GuideforChineseVisitors French, English, ChineseandJapanese. described on38pagesineach volume inGerman, beautiful placesinSwitzerland. Towns andregions are 3D-Souvenir-book serieswithpop-upmotifsofthemost or look for insert inthisBulletin. or lookforinsert www.stand-up-switzerland.ch You at: moreinformation willfind [email protected] +41(0)413710663 Mail Phone P.O. Box 11,CH-6044Udligenswil RUCKSTUHL MEDIAPROMOTION Pius J. Ruckstuhl Please address yourenquiriestothepublisher: Switzerland isever increasing. wishing toreachChineseinterestedin,orvisiting, to 5),postagecharged extra. Chamber ofCommerceareentitledto5freecopies(up itors inSwitzerland.MembersoftheSwiss-Chinese interestforChinese. ular brands,asubjectofparticular the Swiss Watch aswell Industry asalistofitsmostpop- the of Ticino. ofthehistory Nottobemissedisthestory hensive coverage isextended tothesouthofSwitzerland, timecompre- Swisspersonalities.Forfamous thefirst organizations and itsinternational economy andfinance, formation. Also includedareeditorialsontheSwiss bycontent, supported citymapsandusefultraveller’s in- oftheguide’s amajorpart and placesofinterestform ography andpopulation,majortouristdestinations,cities tive editorial. ofSwitzerland,The history itsculture,ge- photography withinterestingandinforma- of thefinest throughout, andgeneratesitsstrengthfromthelavish use The publication comesinahandy colour A-5 format, The publication’s popularityamongstadvertisers The guideisalsoavaluable handout forChinesevis- able inEurope andSwitzerland. ing medicalpractitioners. Similar trends are recogniz- titioners isnow higherthanthenumberofpatientsvisit- complementary medicinedoctors andnon-medicalprac- the USA,for example, thenumberofpatientsvisiting eties are seekingadviceincomplementarymedicine. In More andmore patientsin Western industrializedsoci- China’s genuinenaturalresource Traditional ChineseMedicine(TCM) measured by thenumberofhealthy peopleamongst his inancientChina,thequalityofadoctor wasactual fact, etetics thenrestorethebodytoa situationofharmony. In ture, Tuina massage,moxibustion, phytotherapy ordi- turbances occur. Therapeutic measures suchasacupunc- recognize any energetic imbalancesbeforeseriousdis- of illnessesattheforefrontbutalsotheirprevention. rection. Nevertheless, TCM notonly placesthehealing stops moving forward ordoesnotflow intherightdi- harmoniously inthebody. Illnessesresult ifthisvitality paths–themeridiansand alongdefined to asQi–runs structure. According tothisperception, vitality–referred pictures. TCM regards thehumanbeingasanenergetic recording andanalysis even ofrecent,complex clinical simple,theythough theseappeartobevery enable the theoretical fundamentswhich remainvalid today. Al- outinnaturehaveObservations carried characterizedits is influencedby Taoism, ConfucianismandBuddhism. nese medicine–which isover fourthousandyears old– humans andnatureisalsoassumedasbeingaunit.Chi- understood asanorganic unitandthe relationbetween Medicine, TCM, isanapproachinwhich theorganism is world, thetypicalcharacteristicof Traditional Chinese In contrasttoanalysis-based medicineinthe Western energetic structure The humanbeingasanorganicentityand The differentiated medicaldiagnosisenables usto TCM TradingLtd. Director China Marc Rüedi by toanother, oneChinesemanufacturer andhave thus communication, we have frequently beenrecommended ropean qualityandsafetyrequirements. ther developed andadaptedinaccordancewiththe Eu- products andpreparationsusedin TCM mustallbefur- eration withtheChinesemanufacturer. The medicinal cinal productsinSwitzerlandandEuropeclosecoop- product development andmarket launchof TCM medi- GmbH (www.chinatrading.ch) outthe which carries (www.greenlife.ch) andlaterofChina TCM Trading ofMilestoneInternational the formation AG Wallisellen and Winterthur. locations –Montreux,Nyon, Fribourg, Schaffhausen, in Montreux.Sincethen,ourGrouphasexpanded to6 years ago,weTCM SwitzerlandCentre openedthefirst and laterinitiatedthepresent-day ChinamedGroup.7 TCM cliniconSwisssoilinBadRagaz(Mediqi) first natrading.ch). In1996,we were thejointfoundersof schweiz.ch) andChina TCM Trading GmbH(www.chi- due notleastto TCM Switzerland (www.tcm- that The fact TCM isnow popularinSwitzerlandis very Contentment inChinaandSwitzerland icine ordevices. quently withouttheneedforrecoursetoexpensive med- curred, TCM provides excellent helpand, indeed, fre- patients. Buteven hasalreadyoc- ifanillnessorinjury As a reliable partner withapolicyAs areliable ofopenanddirect partner Parallel tothedevelopment of the TCM centreswas pression orwithoverweight people. ing strokes, withaddictionillnesses, withde- has alsoproven itselfwell withparalysis follow- TCM achieve spectacularsuccesses. inpart TCM sterility); here,inparticular, practitionersof & (fertility ailments andincasesofinfertility ailments. TCM canalsoberecommendedforeye problems out),menstrual andotherfemale (burn stipation, sleepingdisordersandexhaustion tractsuch asstomach-acheorcon- the alimentary such asMorbusCrohn,complaintsconcerning fever andasthma,chronicintestinalailments withallergies, e.g.hay ormigraine, arthrosis) such asbackache,achingjoints(including TCM issuccessfulwithchronicpainillnesses How doesTCMhelp? 79 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 80 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD nership tooone-sidedly toitsown advantage. they meanisthatSwitzerlandwould view apossible part- is tooinexperienced andSwitzerlandtooclever.” What to theirfreetradestrategy. “Officially, they say thatChina tag”, however, when theChinesearereserved itcomes the Federal Councillorinthenewspaper “NZZamSonn- a freetradeagreement. According toaninterview with by delegation abusiness withtheaimofworking towards travelling totheMiddleKingdominJune,accompanied the MinisterforEconomy, DorisLeuthard, willbe will soonovertake theUSAinthisrespect.Consequently, forSwitzerlandand trading partner China isanimportant Attractive tradingpartners Tuina Massage. nual growth rateisapprox. 30%). from Chinawere usedin TCM therapy in2006–thean- prox. 150million steriledisposable acupunctureneedles nottobeunderestimated(Europe-wideap- rency earner nation’s and, industry atthesametime,isaforeign-cur- how. This leadstoaworld-wide forthe imageupgrade whose isbasedonyears manufacture ofChineseknow- producers,butratherarehigh-quality originals ern inChinaundercontractbyproducts manufactured West- like othersectorsoftheeconomy, thesearenotcheap also productssuchasherbsandacupunctureneedles.Un- ofnotonlyunique opportunity knowledge exporting but beatable basis forthecooperation. ing, andrepresentsadeeply “rooted”andalmostun- provided flexible one remainssufficiently andpersever- “Bamboo forest”which blows inthewind–iseffective The respective –thefamous cooperationagreement well asjointly standingby objective thelong-term set. ferences, open,friendly discussionsandnegotiations as sis was andismutualrespect, appreciationofculturaldif- they alsoimplementinthebestpossible manner. The ba- the initialstages–greatly appreciateourinputwhich andfriends–frequentlynese partners “smallSME’s” in of working together. contacts inChinabasedonfriendly relationsover years succeeded inbuildingupabroadnetwork oflong-term In recentyears, toChinahave Swissexports indeedin- For thePeople’s Republic ofChina, TCM representsa In thiscontext, we have repeatedly notedthatourChi- therapy advice. alsoincludesdietary and vegetables. Consequently, acomplete TCM by beneficial TCM –forexample alotofraw fruit that we consider tobehealthy isalso regarded as acupuncture needle.Inthisrespect, noteverything diethasasdeep-reaching aneffect asan a correct to asaying inChinawhere peopleareconvinced that “All gooddoctorsarealsocooks”,according Dietetics tive herbmixtures. flammations (e.g.neck/throat)usinghighly effec- it isalsopossible tocurelong-standing,innerin- TCM clinicsreceive herbaltreatment. As aresult, TCM. InChina,90to95percentofallpatientsin Herbal medicinehasalways played amajorrolein Phytotherapy diatrics. Tuina widely isvery inpae- appliedinparticular the pathogenic towhich factors itisattributable. energetic disturbancebehindthedisharmony and This makes the underlying itpossible toascertain ably presupposesadetailedChinesediagnosis. to Western massagetechniques, Tuina indispens- tenseness andmany more complaints.Incontrast followinglems suchasarthrosis, astroke, injuries, paratus; also,however, againstmany otherprob- effective againstdisturbancesofthemovement ap- This traditionalChinesemassageisparticularly Tuina skinirritations. pain reliefresultingfromfiery early as2500years ago,Hypocritestaughtofthe lism andhave acalmingeffect. Bytheway: as substances ofthemugwort stimulatethemetabo- organ. fect onthecorresponding The essential anating fromthesepointshasapain-soothingef- placed ontheskin. The warming stimulationem- whichsigned especially are forthispurpose by off burning driedMoxa herbsinhaltersde- acupuncturepoints. This isdone heat atspecific With moxibustion, theskinisstimulatedthrough Moxibustion treatment. the patientcandozeunderheatlampsduring is notonly pain-freebutiseven pleasantas very manner only, superficial inavery serted treatment ever itislackingproduced. The needlesarein- collects inexcessive amountsitisspread;wher- on theskin,acupuncturepoints:wherever it points It ispossible toinfluencetheQiatspecific Acupuncture The methodsofTCM nomic idiosyncrasies anditslocationinthemiddle ofthe manner ofthinking. bility, perseverance –precision/qualityandalong-term known inChina,areobvious: culturalopenness –flexi- ciated by andwhich arealsobroadly theChinesepartners the Europeancustomer. actingbetweeninterface and theChinese manufacturer the world. Inthisrespect,we arefrequently thedecisive troducing hisproductstomenandwomen of inourpart togetherpartner withwhom we shouldwork towards in- ing toperceive asanequal theChinesemanufacturer Ihavepartners. always consideredourmaintaskasbe- spite ourgeographical “size”andwelcomed asreliable partner, we have always beentaken seriously inChinade- inthisrespect. also bringmajoropportunities As aSwiss inal products,shows would thatafreetradeagreement nese know-how andqualitatively superiorChineseorig- main trendsthusfar, hasinvolved ofChi- theimporting Achten SwissRadioSRDRS). Asia Correspondent, just 40billionby fromChina(source:Peter imports G. 95 billionwere accountedforby toChinaand exports was 135billionEURO (USA211billionUSD),ofwhich ume oftradebetween theEUandChinaforsameyear Swisstradesurplus. The overallwas asignificant vol- in theyear 2004 was approx. 6billionCHFwhereby there overall volume oftradebetween SwitzerlandandChina by industry 120millionFranks.pharmaceutical The rose by 162millionin 2004,thoseofthechemicaland ofmachines,apparatusandelectronics Swiss exports creased by alarge amount. According totheOSEC, Chinese herbsculture, southeasternChina. Additionally, Switzerland, withitssocialand eco- Switzerland’s which strengthsinthisfield, areappre- Nevertheless, ourexperience, tothe which contrary the USAandChina(seeabove). trade volumes between theEU andChinabetween not asarisk–oneonly hastothinkofthedifference in and land inparticular, thismustbeseenasanopportunity looking tomake themove towards Europe.For Switzer- nese SME’s willingtoinvest who, soonerorlater, willbe potentialofChi- USA 13.6%),thiscreatesanenormous highbyvery worldwide standards(Germany 22.1%, 2002!). Combinedwithasavings rateof40.3%thatis ownership hasonly oftheConstitutionsince beenpart estimated morethan2millionprivate companies(private nese GDPand60%ofChinesejobsaregeneratedby an thattodaylose sightofthefact approx. 2/3oftheChi- location forexpansion strategies. Here,oneshouldnot European market, isalsoregarded by Chinaasanideal land – support iswelcome.land –support level. Ouraimisalso totake thisstep inSwitzer- know-how transfertakes placeonaprofessional specialists fromthePRChina, ensurethatthe which,training facilities together withthe TCM tial atanearly stageanddeveloped high-quality ante-academy.com) have recognized thepoten- Kingdom (e.g.Middlesex University: www.as- sionals: www.nycollege.edu/ andtheUnited The USA(New York College ofHealthProfes- Objective ofSwiss-Chinesecooperation: 81 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CHINA ABROAD 82 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS other typographic cultures. This requiresaspecial combine thesignsofhisown language withthoseof with thatofhisown, thetypographer hastobeable to standnextfaces toeachother. Onthemediainvolved,vertising. different oftype- sorts one languageontheirpackaging, inmanualsandad- Products distributedworldwide needtousemorethan strengthened. By graphical representation, thestability oflanguages is promotes themostimportantcultural assets:languages. tendencies ofglobalization. Thus, theresearch project with (visual)differences andthuscounters thelevelling (Richard Sennett),thatpractices acompetentinteraction ports, internetportalsandurbanareas. tional institutions,universities, exhibitioncentres, air- is ofgrowing influenceontheappearance ofinterna- The coexistenceofvarioustypefacesinthepublic sphere Multilingual typography–DieKoexistenzderZeichen Cohabitation typographique–Meertaligetypografie will bereassessedby –thiswould politicians inBerne practiceofpoliticalauthorities text, andthatthecurrent perceived extent intheoverall toagreater economiccon- taining only limitednumberofthese. avery orofob- mits requiredforown confidents/management is theriskofnotobtainingwork andresidenceper- vestment inSwitzerlandby Chineseprivate companies for thewhole ofSwitzerland.Onemajorobstacletoin- we aretalkingaboutafew hundredtechnicalspecialists required,ber ofexperts forexample forthe TCM area: tainly not.Especially notifoneconsidersthesmall num- omy –inthe“highly of sensitive”TCM itiscer- field ofChinesegastron- the EUmay besensible inthefield with political requirementsofthebilateralagreements for fromChina. TCM experts The strictapplicationofthe ample toobtainnew forSwitzerland residencepermits tween SwitzerlandandtheEU, forex- difficult itisvery Today, be- withinthescopeofbilateralagreement thecaseinday-to-dayclusion thatthisisinpart business. for themselves arejustified. the ChinesethatSwissareseekingtogainadvantages What remainsisthequestionastowhether thefearsof One-sided agreement? 文 To have match thedesignof the“foreign”typeface It isimportanttoencourage aculture ofdifference We thatourpositive arecertain experience istoday Based onourexperience, we mustcometo thecon- 字 の 共 存 – 文 字 的 并 ment fortheresearchproject. environ-and Europewillopenanadequate international phers anddesignersaswell asrenowned schoolsin Asia the visualisationofmultilingualism. Reputable typogra- aswelldesign, educationalinstruments asmanualsfor sign/layout withLatinnext toChinesecharacters. phase,theprojectwillfocus onde- tures. Initsfirst arise fromthecoexistence ofsignsfromdifferent cul- The researchwillexplore theproblems andneedsthat About theResearchProject www.tcm-schweiz.ch www.chinatrading.ch Or visitourwebsite at: E-mail: [email protected] Phone: +41554155291 CH-8807 Freienbach Pfarrmatte 6 China TCMTradingGmbH Marc Rüedi For further information pleasecontact: fruit. of yondTCM andwould thefield bearcorresponding tries, thiswould certainly beregistered be- inChinafar China incontrasttothetrendmostEuropeancoun- favour ofanopen“TCMeconomicpolicy” withthePR Consequently, intheevent ofSwitzerlanddecidingin high national,emotionalandeconomicsignificance. “genuine” know-how developed over centurieswitha as chocolate,watches andcheeseareforSwitzerland– Chinese MedicineisforthePRChinawhat productssuch that countries andtake accountofthefact Traditional betweencertainly begoodforthepartnership thetwo nication –abasisthathasnotreally beenexplored asyet. tures willincreasingly buildthebasis forfuturecommu- as ageneralappreciationforothercultures. knowledge oftherespective typographic culturesaswell The researchrelates toourproject“Wider dieEinfalt It aimsatthedevelopment ofmethodsandmodels The coexistence cul- ofsignsfromwestern andeastern 存 –   

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Design2context andtheUniversity ofZurich. our researchfocusonmultilingualism;acollaborationof … Pour ladiversité, Lingueallimite”,inthecontext of A sceneonstreet inBeijingwhich illustrates theproblem of “Multilingual typography”. designs, professional designs and visionary concepts. designs, professional designsandvisionary piled. Three categories willbedistinguished:everyday coexistence willbecom- ofChineseandLatintypefaces, typographical casestudies, showingmost important the The preparationphasewillproceed theworkshop. The Preparation phase 1. are projected: For thecooperationproject,followingstages sign researchatthehgkz. The projectisheadedby Design2context, instituteforde- Luxun Academy ofFine ShenyangArts, – HongKong The Polytechnic University, HongKong – Central Academy ofFine ofChina,PekingArts – Institute,Nanjing Arts – TheUniversity of ofReading;Department Typogra- – Schoolof andDesignZurich(hgkz) Art – L’école Estienne,Paris – undBuchkunst,Leipzig HochschulefürGrafik – The followingschoolswillparticipateintheproject phy &GraphicCommunication,London faces with faces Asian andLatincharacters. signage systems)aswell asthedevelopment ofnew type- packaging, web design);designinthreedimensions(e.g. cal points:designintwo dimensions(e.g.printedmatter, Methods ofdesignwillbedeveloped, withdifferent fo- typography.aspects oftraditionalandcontemporary from Europerespectively. The workshops willanalyse week workshop withalecturer from Asia (inEurope)or pography. pointofthesemesterwillbeaone Starting intheirrespective coursesonty- gramme postgraduate school willholdasemesterpro- Each participating Workshops 2. ofallprojectparticipants. a constantbrainstorming wiki andablog allow foranexchange ofexperiences and andcross-culture-projects,a other typographic portals Samples” (database)andalistofweblinks willleadto signs,images,colourcodes. graphic An “Archive of different, culturally visualmeans:typo- determined well regarding thelanguagesusedandin asinform, mutual culturalperceptionwillbethefocusincontentas will bepresentintheexhibition aswell. The questionof sign with Asian andEuropeantypefaces? manuals areavailable totypographers who want tode- An internet platform willaccompany platform theprojectand An internet level willbeanalysed:The current ofinformation what (continued onnext page) 83 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS 84 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS ation oftheworkshop- andsemester results,withregard phaseoftheprojectcomprehendsevalu-The fourth Evaluation 4. ment ofteachingmaterial. collaborate withtheteamofspecialistsondevelop- standing studentsforanexchange. These studentswill During theworkshops eachschoolwillchoosetwo out- Studentexchange 3. Example oftypography “Vokabeln” Web: www.design2context.ch E-mail: [email protected] Phone: +41434466204 CH-8031 Zürich 5 Postfach Hafnerstr. 39 of theSchool of Art andDesignZurich (hgkz) Design2context, Institutefor designresearch Graphic Designer andresearcher Ms UlrikeFelsing For furtherinformation pleasecontact: by Professor Dr. RuediBaur project. forthe support search cooperationaswell asfinancial to promoteourmutualinterests. We arelookingforre- person. We would like withyou toestablish apartnership will begladtosendyou apresentationortomeetyou in If you would like toknow moreabouttheresearch,we Japan andexhibited inallthree countries. China andKorea foreightyears, hehasbeenworking in designofpublic space.Hehasbeenteachingin graphic signer andresearcher. Heisspecializinginthetypo- Ruedi Baur, de- directorofDesign2context, graphic School of andDesignZurich(hgkz).ProfessorDr.Art Design2context, Institute for designresearchofthe Responsible forresearch: on thecommunicationininteractive media. Chinese languagesystemswithregard totheirinfluence design”, analysing thedifferences between western and addressed, asforexample “Cross-culturalcollaborative ground, alsogeneralquestionsofmultilingualismwillbe viainternet. tributed point willbeapublication, manualsandtoolstobedis- used todevelop educationaltoolsandmanuals.Focal signs, development ofnew typefaces. The resultswillbe to thedifferent areas: Two- andthree-dimensionalde- Along withthecasestudiesandtheoreticalback- Design2context — Institute for Design Research — School of Art and Design Zurich — University of Applied Sciences and Arts Zurich, Direction: Ruedi Baur, Vera Kockot, Clemens Bellut

Design & Research an interface — between society, economy and science — between image and language — between present and future research projects: »Multilingual Typography« Research on the Coexistence of Chinese and Latin Typefaces — »Seeing Peace« — »Designing Europe« »La démocracie, vision d‘avenir« — »Image and Word in Multilingualism« — »Systems and Structures in Design, Art, and Architecture« current postgraduate programmes: Master of Advanced Studies »Design Culture – Design Research in the Context of Science and Society« »Scenography« (MAS and doctorate programme in cooperation with the University of Vienna) series of colloquia: »Disorientation/Orientation« »Multiplicity and Visual Identities« (in Amsterdam) contact:, information on postgraduate programmes, research cooperations, or strategic partnerships: [email protected], Tel. 0041 (0)43 446 6202, www.design2context.ch

Abbildung: Becker Lacour GbR, Frankfurt am Maina 86 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS China. Prime most twoTrading firm years fortheservice AG in Board ofDirectors.Mr. Grüterhaspreviously worked al- Franz Grüter, CEOandPresidentofthe ings”, confirms hardly any otherEuropeanproviders have similaroffer- tions between sites.“TIC – AG isapioneerinthisfield reliable needfast, andinternational VPN connec- firms for telecommunicationsproviders asthose isenormous, orarealreadyactiveentry inthecountry. The potential Switzerland alonethatarepreparingforChinesemarket quirements oftensuffers. latency orjitterre- withspecific and China,sotraffic America. fewThere arevery directlinksbetween Europe tothe of datatraffic Asian world travels throughNorth connections totheUSA,notEurope,andmajority riers exist aswell. typically focuson Chineseenterprises not limitedtothelinguisticandcultural–technicalbar- VPN links.However, arelegion and theentrancebarriers driven anexponential increaserintheneedforreliable This intercontinentalbusinessgrowth has pean firms. forEuro- percent, makingitatremendousopportunity Chinese economicgrowth reachedapproximately 10 orjointventures withlocalbusinesses.In2006, fices preparing toenterthemarket by establishing branchof- ible rate,withmoreEuropeancompaniesconstantly market andgrowingChina isanenormous atanincred- from Europe toChina. tions? TIC The InternetCompany offers direct IPcircuits links for yoursystems, VoIP orvideoconferencing solu- require secure, safe, andstable transcontinental data orproductionDo youhaveoffices facilitiesinChinaand Fast IPLinksfromEuropetoChina Despite this fact, therearethousandsofcompaniesin Despite thisfact, market entranceforotherEuropeanISPs. center inShanghai,gives TIC AG theabilitytoprovide connectionsandaworld-class data with otherdarkfiber people –morethan Vodafone worldwide. This, along China Telecom aloneadomesticmarket of600million intheacquisitionstage,giving300 millionarecurrently populationtotals1.3billionpeople,ofwhich country country. giveagreements TIC AG theabilitytoreachentire Swisscom andCablecom aretoSwitzerland, sothese guage obstacles,butthesecompaniesaretoChinaas achievement, consideringtheChineseculturalandlan- Tianjin, Tonguing andShenzhen. This isnosmall especially inShanghai,Beijing,Guangzhou,Suzhou, their Points ofPresence(POPs)inall31provinces, but This allows development oflastmileconnectionsfrom CNCChinaNetcomand enterprises, Telecom. withtwoagreements majorChinesetelecommunications TIC fice. AG haslocked incomprehensive wholesale vantage enhancedby the2005openingofaBeijing of- team ofChineseemployees competitive –acrucial ad- inShanghai, structure-building TIC AG hasareliable As aresultofmany years ofrelationship- andinfra- Speedy InternetAccessthroughoutallofChina – Access throughout Europe, courtesy oftheEuropean Accessthroughout Europe,courtesy – World-class datacentersinZurichandShanghai,ideal – IP-basedtelephony International solutions(VoIP). – SpecialistsinIP VPN implementation,nationally and – throughoutall31Chineseprovinces, IPservices – POPs(Points ofPresence)acrossChina,including – inShanghaiandBeijing,staffed by Offices native Chi- – andITprovider Internet Fullservice for professional – Reasons for European Companies touse TIC ness customerseverywhere. TIC busi- thehighqualityneedsofdiscerning AG fulfills IT provider for professionalLANand WAN connections, ogy) totheirChinesesites. and Internet As a fullservice Private Networks (viaeitherMPLSorIP VPN technol- fromrapiddeployment of TIC customersprofit Virtual TIC TheInternetCompanyAG Direct andFastLinksfromEuropetoChinawith The importance of these agreements issimple. oftheseagreements The importance The vice Providers). Ser- Program” Partner forISPs(Internet “Preferred infrastructure. for theoutsourcingofcorporate internationally (Europe,USA,and Asia). thanks toexclusive partnerships. Tonguing andShenzhen. Shanghai, Beijing,Guangzhou,Suzhou, Tianjin, nese employees. LAN and WAN solutions. (continued onpage 88)

88 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS Flexible customanalysis andconsultationtodevelop – Highestsecurity – Completely monitored VPN –you canconcentrateon – Packet prioritizationfortime-sensitive business-criti- – GlobalIP VPN andMPLS withdirect VPN platform – VPN(Virtual Private Network) withguaranteedqual- – Advantages ofa TIC China-Switzerland VPN evr. ay uoen opne, oee, led have theadvantage ofnoticeably betterlatenciesandde- already however, companies, European Many servers. cal forapplicationsuchas VoIP andCitrixterminal datalinkstoChina,criti- customers directandfast final Chinese market offer tootherISPs,who caninturn their Program”, Partner the “Preferred TIC AG hasopenedthe program. aEuropeanpartner therefore started Thanks to menting VPN solutionswithin3years. directly imple- in70percentofthemarket participants lion euroin2004to8.56billion2008. This will the IP VPN market willgrow even more,from2.73bil- Management consultantsFrost &Sullivan predictthat Rising DemandforVPNs the rightnetwork architectureforyour business your corebusiness cal dataguaranteed data linksbetween thetwo countries monthly costs (QoS)basedonMPLSorIP,ity ofservice withfixed TIC AG isalreadyexperiencing thisdemandandhas and IT-Provider – We Connectthe World and TIC. emerged from VIA NET.WORKS Switzerland owned company ofSolution24Ltd.,Switzerland, of of services TIC. add totheup-to-daterange tomer Careservices andthe7x24Cus- Managed Securityportfolio staying atalltimessecureandproductive. The reducethecosts, entire outsourcingservices, companieswith managedsolutionsto structure andChina. in Europe,North-America ers Switzerlandandincludesmany partnerships Access. Internet Exchange, VoIPHosted TelephonyInternet and MobileMail, IP-VPNs, MPLS,MobileOffice, customersin much fornationalasinternational higheststandardsas cated datacentersfulfills multiple redundantinterworking andsophisti- independent GigabitIPNetwork (AS1836)with signed forthehighdemandsofitscustomers. The for professionalLANand WAN solutionsde- tionally Internet-Provider targeted fullservice TIC CompanyThe Internet Ltd.isaninterna- Company Internet AGAbout TICThe International Business: Full Service Internet- Business:FullService International TIC CompanyThe Internet Ltd.isaprivately Innovative ITsolutions,reachingfrominfra- The panEuropeanbusinessoperatingareacov- http://www.tic.h http://www.tic-china.cn http://www.tic.ch VoIP F+41213115938 VoIP T +41844842 Rue duSimplon37,CH-1006Lausanne TIC The InternetCompany SA or VoIP F+41413184 VoIP T +41 844842 Riedstrasse 1,CH-6343Rotkreuz TIC The InternetCompany AG mailto:[email protected] Kevin Ahlers, Marketing Manager For furtherinformation pleasecontact: rect Switzerland-Chinalinkstoday! from anddi- TIC expertise mitment tothatmarket. Profit website, com- justonemoreindicationofthecorporate TIC even operatesaChinesetranslationofthecorporate their own corebusinesseswithintheChinesemarket. andconcentrate on toacompetentpartner tions concerns can easily transfertheir ChineseITandtelecommunica- With TIC CompanyThe Internet AG, firms international Conclusion choose TIC VPNs over traditional WAN technologies. cost advantages areall compellingreasonscompanies from TIC AG. Globalrange,flexibility, scalabilityand livery timesintheir VPNs, thankstoinnovative solutions rectly siteswithanews onotherinternet feed(RSS). (Desktopnews). The headlinescanalsobeviewed di- the frontpagesofwww.swissinfo.org toyour computer deliversservice automatically updatedheadlinesfrom downloaded oraccessedviamobilephone.Ourheadline oftheweek, canalsobe esting articles andinformation We have anewsletter withhighlightsofthemostinter- tokeep youety ofservices uptodatewithSwitzerland. country’s past,presentandfuture. andindustry.services the profiles The multimediareport image aroundtheworld, focusingonpolitics,science, tick. The “SwissMade”dossierexamines Switzerland’s Switzerland”reveals“Modern what makes thecountry provides an up-to-date overview of Switzerland, while cally audience. foraninternational Profile The Country dossiers cover topicalissuesandaredeveloped specifi- onwww.swissinfo.org.information These multimedia cultural linkstotherestofworld. phasis isplacedonSwitzerland’s political,economicand ture, scienceandtechnology, tourismandweather. Em- news onpolitics,business,cul- andin-depthinformation ish, Portuguese, Arabic andJapanese). The priorityis French, Italian,Span- lish andChinese(alsoinGerman, inninelanguages,includingEng- dio andvideoreports provides news onSwitzerlandusingtext, images,andau- www.swissinfo.org platform information The internet Look nofurtherthanwww.swissinfo.org. up todatewithwhat’s makingheadlinesinSwitzerland? Are youinterested inSwitzerland? Doyouwant tobekept News andInformationaboutSwitzerland only platform that reports in Chinese on current affairs inChineseoncurrent only thatreports platform The Chinese-languagesiteofwww.swissinfo.org isthe Chinese Service swissinfo/Swiss Radio International alsooffersswissinfo/Swiss RadioInternational avari- Specials arequalitysupplementswhich enhancethe Genève. SinOptic est un partenaire duCantonde Genève. SinOpticestunpartenaire Vaud etdela Ville deLausannedanslesquestionschinoises. Suisse-Chine, membreduComitédel’Association Vaud-Shaanxi/Chine etcollaborerégulièrementavec SUNlight ACT SAà SinOptic estmembreduComitédelaSectionromandeChambrecommerceSuisse-Chine,Société Avenue Juste-Olivier 2,CH-1006Lausanne, Téléphone :+41213311580,[email protected] Vous avez égalementlapossibilitédetélécharger lenuméroencours. tions etunerevue depresse. régulièrementmisesàjourets’efforcepose desrubriques desuivre l’actualitéparunagendadesmanifesta- nombreux domaines:économie,politique,aspectsdelacultureetcivilisation chinoises,santé,etc.Ilpro- quitouchentde Lancé enjuin1998etentièrementindépendant,lesiteSinOpticrassemble desinformations about ChinainFrench andInformation sinoptic.ch –Services Afin desuivre l’actualitédusite,vous pouvez vousAfin inscrireàsaLettreélectronique(mensuelleetgratuite). E-mail: [email protected] F +41313509544 T +41313509222 Switzerland CH-3000 Bern15 Giacomettistrasse 1 swissinfo/Swiss RadioInternational Contact: Your direct contacttoSwitzerland www.swissinfo.org: in thesite’s Forum. A variety ofissuesrelatingtoSwitzerlandarediscussed ties, technicalcolleges andothereducationalinstitutions. aboutSwissuniversi-Switzerland thereisinformation major Swisscities.For Chinesewanting tostudyin aswell asacityguide,which presentsthe profile country for visitorstoSwitzerlandfromChina. The sitehasa in Switzerland.Italsooffers comprehensive information 89 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS 90 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS lic ofChina”. these threelettersdonotstandforthe“Peoples Repub- one shouldhave a“PRC”company. Butinmy speech that inordertosucceedwithforeignbusinessChina, It isoftensuggestedby Chinaexperienced businessmen skills. preciate theSwissmanagementandorganizational and conventions inthissmall, lovely country, alsoap- organizationsple who withtheinternational arefamiliar Peo-Switzerland withgoodqualityandtrustworthiness. business peopleassociatecompaniesandproductsfrom landscapes andeven ofHeidi.MostChinese thestory watches, banks,chocolates,army knives, thefabulous Name” inChina. Almost allChinesepeopleknow Swiss Switzerland isprivileged tohave good“Brand avery Media planningandNetworking. such asCommunications, Publicfields Relations(PR), she highlightstheimportanceofstrategic business China/Asia specialweekend lastOctober).Inherspeech Lisha ZhangheldattheETHZurich (duringa Below thereader asummaryofspeech byMs finds How toPerformSuccessfullyinChina pany acompany’s and itsproductsandwillfacilitate lations, isessentialinpositioning andbrandingacom- strategy, mediaandgovernment which incorporates re- well developed andexecuted communications corporate long-year experience inChina,we areconvinced thata communications.Basedonour core ofany corporate business strategy andtobreakintothemarket. needs goodrelationsornetworks todevelop theright results take timetoachieve. And lastbutnotleast,one payback, butthereal Onecangetashort-term profitable. vestments beforeanoperationcanbeexpected toturn in- verance andpatience.Oneneedstomake significant to have commitmentandwork alongterm withperse- tosucceedinChina, onereally willagree: experts needs Cash! This may soundsimplistic, butIamsuretheChina P Let’s focuson is forPatience, “R” R , thatisRelations,which buildthe stands forRelations,and Lisha Zhang C is for tablishing distributionchannelsandachieving volume, cess totheChinesemarket, buildingmarket share,es- lobbying.ernment tutes). Today ithasshiftedtotheM&Aareaswithgov- insti- managing theiroperations(banks andfinancial and licensingandlegal proceduresforstarting necessary onassistingforeign companiestosecurethe particular lations focusedmainly ongovernment relationsandin an annualbillingofmorethanUS$250million. were inChinagenerating atotalofover 1’000PRfirms cording toasurvey by theChinaPRassociation, there till1985.Butby theendof2001,ac- PRfirm own first appearancebefore1984,andChinadidnothave its first proaching thesizeofU.S. market. Europe andap- per annuminrecentyears; surpassing China hasbeengrowing atanaverage rateofalmost50% growth ratesofaround20%,while thePRmarket in aroundtheworldindustry hasexperienced annual undergone dramaticchanges. According tostatistics,PR Over thepasttwenty inChinahas years, thePRindustry A fastgrowingPRindustry professional PR. traditional “guanxi”(personalconnections)andnow forpublic relations,resultinginamixof territory fertile notion of“smallergovernment andbiggersociety”,is out infringinguponmajorpoliticalsensitive issues. The with- it purely hasbeenused forcommercialpurposes, well aswiththegovernment andthemedia–aslong toolforcommunicatingwiththemarketplace as essary to adoptamuchmoreopenattitudetowards themedia. commercial orientation,andthegovernment hasbegun cations sectorhaschangedradically towards astronger andPRactivities.advertising As aresult,thecommuni- Economy” hasemerged andalongwithittheneedfor possible. whether orPR,was oreven advertising form, necessary vast majorityofthegoods.Hence,nopromotioninany forthe planned productionoftenresultedinshortages almighty nationalsupply andsalessystembasedon the centralplanningsystem.Ineconomicsectorsan in Chinathelate70s,public relationswas unknown in programme wasBefore theeconomicreform introduced strategy tofosteracompany’s overall inChina. business some ofourexperiences in how todevelop acorporate the development oftheChinesePRmarket anddiscuss also standsforrelationsorconnections. (SME).InChina,oneneeds“GuanXi”,which terprises fromsmallandmediumsizeden- with businesspartners overall businessoperation. This alsoappliestorelations As foreigncompaniesaregaining moreandac- During theearly development ofthemarket, public re- PR agenciesdidnotmake their Major international Along withthis,public relationshave becomeanec- But inthelasttwo decades,the“SocialistMarket I would like tosharewithyou my observations about mentation of all the corporate communicationstrategies. mentation ofallthecorporate tions have becomeanindispensable toolwiththeimple- ing businessinChina. And alongwiththis,mediarela- disciplines arebecomingincreasingly indo- important market research,brandcampaignsandotherspecialized ing, business-to-businesscommunications,consumer keting position- communicationsby meansofcorporate national peersandthelocalcompetition.Hence,mar- they arealsomoreandconfrontedwiththeirinter- nese market by usingthemedia.Inaddition, goodmedia tional businesseswhen buildingastrongnameintheChi- grow. implication forallinterna- This hasasignificant tosurviveincome fromcommercialadvertising andto ment subsidies,almostallmedia organizations rely on into businessentities. With thereductionofgovern- ofsomemedia organizations tent andtherestructuring con- ofanincreasing qualityofadvertising both, interms ment publishes key policy issues. organs throughwhichCCTV areimportant thegovern- China Daily, theEconomicDaily andradiostationslike owned. All leadingnewspapers like thePeople’s daily, the Chinesemediaunique. electronic media,butthereareseveral featuresthatmake competition amongnewspapers andmagazinesthe among themediaandpublic. hasbecomingincreasinglyIn addition,internet popular 98% ofallChineseurbanhomesnow have colour TV set. more than3’000 TV andradiostationsnationwide; papers andmagazines(therewere only 186in1978)and China hasabout2’200generalbusinessandtradenews- Media withChinesecharacteristics Second, commercializationhasbeengoingstrongon First, themajormediaorganizations aregovernment The rapidgrowth ofChinesemediahasheightened the corporate office inChina andtheheadquarter, in or- office the corporate tionships. sition fortherightissues,inorder tobuildtherightrela- be devoted attherightpo- toidentifytherightofficials amountoftimehasto andrelations. faith A significant business andpoliticaldecisionsareoftenbasedongood bilities. not beeasily available tocompanieswithoutsuchcapa- formajor projects,somethingwhich will ment support butmayernment, alsohelpthecompany obtain govern- raise acompany’s visibilitytotarget audiencesinthegov- the economicpolicy makingprocess. an operationinBeijingtomonitororeven in participate companiestomaintain forinternational important very but inevitably withitsown characteristics,ithasbecome lar tothePublic Affaires (PA) in Washington orBrussels, most aspectsofforeigninvestments. Increasingly simi- government bodiesstillcontrol agenciesandregulatory more market orientedeconomicsystem.ButChinese government efforts tomove hasmadegreat toward a communications ofany foreigncompany. The Chinese ofthe corporate part ital hascontinuedtobeacrucial A public and government affairs functioninChina’s cap- a fastgrowingnecessity Public affairsorgovernmentrelations: company ontherightstrategic track. itsimage,todevelopto correct abrandandtokeep the asamonitoringtooltohelpthecompanyrelations serve A goodPA should make suretolinkboth, performance element inaculturewhere major It isalsoacrucial A goodgovernment relationsprogramme willnotonly (continued onnext page) 91 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS 92 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE COMMUNICATIONS jor jewellers have developed withwedding partnerships and hip”.Ma- Shanghai clubstoattractthecities’“young Johnny Walker fliesbignameDJsintoBeijingand highly attractive oftheyoung andrich. consumergroup branding campaigns–especially when targeting the Creativity hasbeenthekey inmany factor companies’ Creative andsporty groups before thesalesstartrolling in. needed tobuildbrand recognition withinone’s target known andtrustedbyconsumers, imaginative ideasare successful salesdependlargely onhow well abrand is brands from allover theworld. Butinacountrywhich billion potentialbuyers isperseaprimeattraction for China’s large consumermarket withitsoften-quoted1.3 Branding Strategies www.chinacomm.ch [email protected] Tel: +41797561383 Fridbach 1,CH-6300Zug Lisha Landolt-Zhang China Communications For further information pleasecontact: teresting andchallengingmarket. to thesuccessofany businessoperationsinthismostin- capable ofadaptingtothechanges,willsurely contribute ible, comprehensive communicationsstrategy, corporate affect thefutureoflocalandglobalbusiness. A flex- at any timeinitshistory. These changeswillinevitably dergoing moreradicalsocialandeconomicchangesthan for thenext few decades. At thesametime,Chinaisun- remain anattractive market, teemingwithopportunities access tosourcesinternationally andinChinaspecific. a goodPRorPA who hasgood personintheheadquarter censes asitexpands inChina. Itisalsoessentialtohave company’s needstoobtainapproval recurring fornew li- functions,suchas the othercorporate position tosupport Suchmonitoringputsthecompanyformation. inagood other key in- issuesaswell background asthenecessary icy, personnel,regulations, legislations, politicsandall der tosecuretheupdateofallmajorchangesinPRCpol- China willenjoy continuouseconomicgrowth andwill But aren’t 1.3billionpotentialbuyers worth therisk? in 2004withlogos thatlooked closetoKodak’s. very Lucky began toappearinKodak’s Chinaphotostudios turing process.However, photographic paperfrom nology isnotusedintheChinesecompany’s manufac- but thecompaniesareindependentandoriginaltech- Lucky Film. Kodak hasa20percentstake inLucky,firm Kodak hadtomake thisexperience withChinabased Eastman canbackfire. laborating withaChinesepartner signature woman’s handbags.Butsometimeseven col- market vendors who don’t sellcounterfeitcopiesoftheir piracy amorecollaborative effort. fighting They reward see any oftheRMB25,000 they were awarded. n’t show thereislittlechancethestudioswill upincourt, store representatives simply ignoredthelawsuit anddid- Warner Fox Bros,20thCentury andDisney. Butsincethe KaDe Club,was sued by seven companiesincluding terfeit copiesoftheirstudiohits.OneshopinShanghai, have suedsomeofthelarger DVD shopsthatsellcoun- labels andshapes. the bottlesintopiecesinordertoprevent thecopying of they arehandedtoHennessey bottlesmashers,who break don’tBut bartenders throw away emptybottles.Instead, ofChina. nightclubs inShanghai,Beijingandotherparts they doinpromotingthem. much effort intoprotectingtheirbrandedproductsas brand’s image. Thus, many companiesputatleastas exposure, counterfeitsultimately salesby hurt dilutinga extent thatcopiescanhelpincreaseproduct to acertain Rolexes andLouis Vuitton bags.Even thoughitistrue was offlattery”, inventedsincere form here–unlike industry. The oldcliché,whereby “imitationisthemost China offers counterfeit aspecialobstacle:itsinfamous For companieswithanalreadyestablished brandimage, Fighting brandpirates image many companiesstrive tobeassociatedwith. transfer delivered by healthy andsuccessfulathletes–an An additionalbonuscomesfromtheimage local firms. dium willhelpstrongly ofrecognition interms amongst brand nameandlogo atthebillboardofanOlympic sta- acrossthecountry.panding itsservices Having your retailoutletinShanghai2005andisnow ex- first consumers onthesametrack. The company openedits of theworld, UPSistargeting Chinesebusinessesand as ChinausestheGamestobuildits“brand”inrest events, mainly theOlympic GamesinBeijing2008. And vice, aregettingintoChinaby linkingwiththesemajor events.jor sporting Firms suchasUPS,adelivery ser- sung research,70percentofChinesepay attentiontoma- Kong tohelpdrive theirsales. planners andoffer weekend honeymoon tripstoHong All-in-all, brandinginChinacan beatricky business. Companies suchasLouis Vuitton have triedtomake Movie studios have taken amoretraditionalroute:they Moet-Hennessey heavily markets itsliquoratmany Sport sponsoringisalsopopular: Sport According toSam- by Fiducia Management Consultants Source: ChinaFocus partnership” “Reforming Chinesehealthcarethroughpublic-private New SwissReStudy: being usedthat was completely new tothisspecialist ket atthebeginning ofthe1950s. A typeofmaterialwas beenintroducedonthemar- plastic pipingthathadfirst ing technology thatwould adequately complementthe materials couldbeused. The aimwas todevelop ajoint- however, atechnicalandcommercialvisionofhow such hand, noonehadany experience withplastics. There was, already beeninuseforaround90years. Ontheother tic. At thattime,malleable castingsmadeofmetalhad madeofplas- revolutionary ideaofproducingafitting began withthesimpleyetThe GFPipingSystemsstory water andgas distributionandbuildingtechnology. safe transport ofgas, water andotherfluidsinindustry, on systemsolutionsandhigh-qualitycomponentsfor the tic andmetalpipingsystems.Itscore expertisecentres Systems Corporate Group isaleadingsupplierofplas- ing annualsalesofaround CHF1billion,theGFPiping day employing some3,300 staff worldwide andgenerat- menced seriesproduction ofadhesiveplasticfittings. To- early milestoneinthecompany’s history, when itcom- For Georg Fischer theyear1957marked animportant 50 Years ofPlasticsKnow-HowatGF ance systemthatrangesfrombasicmedicalinsurance First, Chinashoulddevelop amulti-level healthinsur- key improvement principles: administering socialschemes. and ber ofChinesecitiesandlocalcountiesinnurturing insurance companieswhich have alreadyassistedanum- grammes. includessuccessstoriesfeaturing The report inadministeringitssocialinsurancepro- ernment (required)coverage,statutory butcanalsoassistthegov- marketoping thevoluntary thatwillsupplementthe which commercialinsurerscanfocusnotonly ondevel- healthcare system. dependent review andrecommendationsofthe nation’s anin- Commission(CIRC)toundertake ance Regulatory ducted inresponsetoaninvitation by theChinaInsur- global systemsandbestpractices. The studywas con- stakeholders, aswell asaninvestigation intovarious Chinese policymakers, insurers,regulators andother istheresultofayear-longThe report studyinvolving key Such apublic-private would partnership embracethree proposesa“public-privateThe report in partnership” day anextremely well established systemsupplierwith processing andjointingtechnology, Georg Fischer isto- ofmaterials tise ithassinceacquiredin thefield fying plasticasthematerialof the futureandexper- pounds. backtheninidenti- Thanks toitsfarsightedness andoptimizedcom- machines, enhancedmouldparts atthetimefromproduction ofnew already benefiting ofinjection mouldingwasthen itsSingenplant. The field in1957atwhat was series productionofplasticfittings beforeGeorg Fischersary able was tocommence finally A numberofyears ofintensive preparationwere neces- ofproductdevelopment. inthe field rather thantherule ready processes–anachievement thatistheexception ated anew-to-the-world productbasedonproduction- the key innovative challenge. ofapplicationrepresented ments inmany different fields developing itsothatmetthemostexacting require- area. Applying thematerialtoprocessengineeringand available inEnglishandChinese. at www.swissre.com >research &publications. Itis The report canbedownloaded from SwissRe’s website insurance delivery chain. practicethroughouttheentiremedical dard ofindustry experience andcommercialinstinctstoupliftthestan- ance industry’s professionaladministration expertise, Third, thegovernment shouldleverage theprivate insur- excessive claims. careand cial andsocial),thusminimisingunnecessary munity, (bothcommer- together withinsurancecarriers oftherisk-sharingcom- hospitals andpatientstobepart Second, callsformeasuresthatwould thereport allow most regimes aroundtheworld today. wouldstructure beconsistentwiththedirectiontaken by rolesforeachlevel.ferings, withclearly Such a defined coverage ofcommercialmarket of- tothefullspectrum After anextensive phaseofR&D, Georg Fischer cre- (continued onnext page) 93 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 94 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS Guangzhou andShenzhen). Hangzhou andSuzhou)HongKong (including main structure were Beijing, Shanghai(including cultural sites. Three citieswhich gave thestudytrip companies, listenedtotalksbyspecialistsandwent to travelled tothree large areas, visitedChineseandSwiss nese companiessocompetitive. Inorder out,we tofind growing Chinesemarket outwhat makesChi- byfinding China. social activitiesandthusreceived agood insightinto 32 Studentsvisitedseveral companies, participatedin ties ofthenewly founded Centre ofEmerging Markets. elled toChina. The tripwas thehighlightofactivi- ment from theZurich University of Applied Sciencestrav- In March of2007two classes oftheSchool ofManage- Trip oftheSchoolManagementtoChina Founded in1802,thecompany in isheadquartered Automotive, GFPipingSystemsand AgieCharmilles. Georg Fischer GF isfocusedonitsthreecorebusinesses “Adding QualitytoPeople’s Lives” nology andchemicalprocessing. new areasofapplicationsuchasshipbuilding,biotech- ally develops existing productswhile driving aheadinto presence inover 100countries.Georg Fischer continu- production sitesinEurope, Asia aswell astheUSanda The group insidetheunecho chamber (PhotobyRüttimann). The aimofourtwo-week visitwas toanalyze theever- – Start building aChina-network. building Start – Interactionwithlocalbusinesspeople. – Getafeelforthelocalenvironment andtheway ofdo- – CompareproductioninSwitzerlandwiththoseof – growing thefast businessinthe Experiencefirsthand – tounderstandtheheritageandway of firsthand Learn – activities inChina: early onandbuilttheframework ofthetwo week long in the Asian area. The academicgoalsofthetripwere set suchactivity oftheSchoolManagement(SoM) first Phone +41(0)526312697 Georg Fischer AG, 8201Schaffhausen/Switzerland Further information underwww.georgfischer.com and services. market requirementsthatwe satisfywithourproducts quality oflife:Mobility, andprecisionarekey comfort lion Swissfrancsin2006. 12,000 employees, itgeneratedannualsalesof4.05bil- worldwide including50productionfacilities. With some Schaffhausen, Switzerland, andhasover 140locations ing businessinChina. China. structure. People’s Republic ofChinaitselfaswell asthetrade and experience theculturaldifferences. life oftoday’s China–gettoknow theChinese culture The studytripwhich tookplaceinMarch2007was the The Corporation makes adirectcontributiontothe The Corporation driver, cardsandsoon. Chineseidentification were equippedwithdetailssuchascardstoshow thetaxi well aboutwhat they informed couldexpect andthey When thestudentsleftSwitzerland,Mr Haerri. they were Director,merce throughMsHorváth, anditsPresident mental were alsotheSwiss-ChineseChamberofCom- preparations lastedthewhole semester2006.Instru- fall ble forthevisitofonecityandactivities there. The dents. Eachmemberofthisspecialclasswas responsi- The technicalitiesofthetripwere preparedby fourstu- teresting historical sites this great Cityhastooffer.teresting historicalsitesthisgreat Beijing Theatre area,aview onlysurrounding seenonafew days ayear. Palace an advantage thenext day, when we visitedthe hindered theexploration oftheForbidden City, became ent gatesalmostimpossible. The coldweather, which madeastayfactor hardandthewalk throughthediffer- was thewindsheer nation tounderstanditshistory great, determi- andheatedgloves!sold scarves Butstudents’ was thatstreetvendorsgroup colddespitethefact very ing thevisitof Celsiuswithstrongwindsonthe5thofMarchdur- gree two daysduring ourfirst inBeijing.Itwas minus5de- meaning when we experienced low thevery temperatures tize. The conceptofsightseeingtookonanentirely new foreground. sometimetoacclima- The ideawas tofind At thebeginning ofthetrip,culturalaspectsstoodin Beijing Theatre Bird nestand SummerResidence, Forbidden City, impressing andbreathtakingtrip”! which astudentafterwards described as“anawesome, most onourown. animpression Itwas magnificent, al- construction wall andexperienced thismagnificent with snow? However, who canboasttohave seenthewall covered ling toSimatai,aplanwhich we were notable tofulfil. The goalwas towalk ontheoriginalwall fromJinshan- The GreatWall Some oftheculturalhighlights: it is very difficult for AgieCharmilles GF to find reliable for difficult GFtofind it isvery AgieCharmilles and noradiosvisible. Onthe otherhand, we that learned the workplaces were; there were nopersonal belongings holiday peryear. Among otherthings,we notedhow clean around 40hoursperweek andnormally have 3weeks’ Chinese employees of GFBeijingworkAgieCharmilles spective MrLiuexplained productionfacilities. thatthe andthere- suchasthe R&Ddepartment departments Afterwards we hadthepossibility tovisitthevarious aboutthecompany.us withsomegeneralinformation Mr Liuwarmly welcomed hisSwissvisitorsandprovided AgieCharmilles GF Some ofthecompaniesvisited: While staying alsovisitedthe inBeijing,thegroup Despite thesnow we walked fromJinshanlinguptothe . The coldairprovided aspectacularview ofthe , theBirdnestaswell asmany otherin- Forbidden City . Everyone inthe Summer jackets. We visitedallareas ofdevelopment –fromthe next stepofthesupply chain–theproductionofleather leather,us. weAfter theproduction offine couldseethe environmental themewas toallof ofutmostimportance veyed by handmany times. As any readercanguess,the many machines,theleatherpiecesstillhadtobecon- intensive thatthey is.Despitethefact had thisindustry duction. andpro- to seethetraditionalaspectofChineseindustry impressedbyvery theseplaces.Itgave theopportunity factory. and afurniture duction facility The studentswere to seethreeChinesecompanies,atannery, pro- afabric ofthisbeautiful city,In thesurroundings we hadachance Hangzhou GF’s productiondepthamountstoaround80%. Therefore, inordertobelessdependentonthesuppliers suppliers thatareable todeliver highqualitygoods. timann). Snow covered Great Wall inJinshanling(PhotobyRüt- It was particularly impressive toseejusthow labour (continued onnext page) 95 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 96 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS and inChina. of insightabouttheproduction standardsinSwitzerland beforetheChinesetrip. terthur This gave thestudentslots since we hadvisitedRieter’s in productionfacilities Win- This company was especially interesting forthestudents, Rieter and theimpressive high-rackwarehouse. a touraroundtheproductionplant,qualitycontrol load amountstoaround13hours.Finally, hetookuson general andthesocialnetwork athome.Hisdaily work- pany. Butontheotherhand, hemissedthehumourin ple, letalonethecompetenceshehaswithincom- cinated by theflexibility andspiritoftheChinesepeo- as anexpatriate inChina.Ontheonehand, hewas fas- pression, MrMeiliexplained touswhat itislike tolive of Novartis inChina. After having im- received afirst jing, gave usanoverview ofthebiggestproductionsite As anintroduction,MrMeiliheadofoperationsinBei- Novartis duces between 15,000and20,000laptopsperday. together. Lenovomounted andfitted Inthisfactory pro- is donemanually, aseachcomponentisindividually outby thewhole hand.Infact, carried laptopassembly esting, especially because many oftheprocessesarestill the productionarea. The assembly lineswere inter- very introduction tothecompany itself,we walked through ducer, Lenovo, was anotherhighlightofthetrip. After an In Shenzhentheinvitation toseeChina’s largest PCpro- Lenovo whole operationismonitoredandcontrolled. addition, we were invited tothecontrol centrewhere the takes place.Cranesandcontainerswere everywhere. In restricted area,where theunloadingandloadingofships national Terminal (HIT). There we hadatouraroundthe time intheharbour, we stoppedattheHongKong Inter- intheHongKongportation harbour. After aninteresting the cargo businesscloseupaswell astheairfrighttrans- Afterwards, we were invited onavessel toseefirsthand about andthebusinessofKühne&NagelinHongKong. aninterestinggeneralpresentation and gave usfirst Kühne &Nagel.MrLooschen,GeneralManager, metus day inHongKongThe lastofficial was organized by Kühne &Nagel companies were oneofthehighlightstrip. Swissproduction.Forstructured thestudents,thesethree tothewellplant provided aninterestingcounterpart value chainandtheratherloosely organized assembly to theUnitedStates. The large productionhalls,thedeep living andcomfortable sofas roomchairsgoesdirectly the Chinesevis-à-visUSA. The whole productionof duced inlessthanthreemonths. production batchconsistsof30000itemsandispro- why areproducedsocheaply fabrics here.Normally, a well astheshippingarea. This gave usagoodinsight into design proposalsoftheclient,toproductionitselfas Furniture production illustrates the trade surplus of illustrates thetradesurplus of cellularphonesandotherelectronicequipment. occasion sinceitprovided muchinsightintothesecurity electronic equipmentisbeingtested, was alsoaspecial local markets. To enterawave freeenvironment, where implications fortheintroductionofproductsinvarious and thatthetestingofproductsinChinahasworldwide was thatbasically thefact, noSwisspersonworks there Ofspecialinteresttothestudents into thetestingservice. company. inGuanzhougiveTheir offices agoodinsight testingandcertification leading inspection,verification, companiesworkingmous Swissservice world wideasa (SGS)isoneofthefa- Société GénéraledeSurveillance SGS of visitorstoseethisnew facility. vator doors. We hadthepleasureofbeing3rdgroup multitaskingmachinefortheproductionofele- the art drewthe group upamasterplananddesignedstateof least highly reliable suppliers.In ordertoachieve that, are low cost,highquality, quickdelivery andlastbutnot could feeltheSwissspiritinsidebuildings. thousands ofkilometresaway fromEurope,we clearly withitshightechfacilities. factory Although we were Chinese managementwho tookusforatouraroundthe pany toinvest inaChinesejointventure. Believe western com- itornot,Schindlerwas thefirst gave usatalkaboutSchindler’s inChina. 33years history Supply ChainManagement,warmly welcomed usand In thebeautifulCityofSuzhou,MrMaechler, Headof Schindler with theChinesepeople. citizen gave usaninsightintohispersonalexperience successful HR-manager. Also MrNaef,ayoung Swiss crash courseontheChineseculturewithMrLee, newly builtproductionhalls. We alsoenjoyed ashort and histeamwelcomed usandguidedthroughthe tect Pei. MsSchaefershowed usthenewly builtcampus, archi- high standardandthearchitecture ofthefamous tional BusinessSchool). The attractionliesinboththe CEIBS(ChinaEuropeanInterna- to visitthefamous As membersoftheSchoolManagement itwas amust CEIBS the mostpopulatedareasinEurope? ofsuchatrainbeifit connected What would thebenefit time toreflectonthedimensionsofthistechnology. length ofthetrack33kilometresstillleaves enough 431 kmperhourshedslightonthesequestions. The lectual property, the ridewithMaglev atthespeedof transfer fromGermany toChinaandtheissues ofintel- After studyingthebusinesscaseabouttechnology Maglev Other placesofspecialinterests We thatthekey ofSchindler learned successfactors Personally we were impressedby theopennessof Mr. Foehn, PresidentofRieter Textile SystemsChina ready established hereisliving changes. proofofgreat from thetopofbuildingandlistcompaniesal- dimensions! great What foresight! However, theview such projectsismindboggling –how canoneplansuch Switzerland, thedimensionsofplanningandrealising industrial areassuchasthis.For peopleliving mainly in Singapore! premises. Interestingly, themain sponsorofthisplaceis ational areas. Also alarge hospitalislocatedwithinits “new” citywithbusiness-,living-, education-andrecre- the futuristicbuildings. The industrialparkisbuiltlike a arrived everybody was astonishedby thehugeareaand This industrialparkisaChinesesuccessstory. When we Suzhou IndustrialPark whenface, they dobusinessinthisarea. pointed outmany interesting issuesSwisscompanies Guangzhou ofMrNievergelt, theConsulGeneral.He of almostunbelievable dimensions,we were guestsin itif, allowing timetotalkvarious employees. theteamwas usanaper- thermore, kindenoughtoserve about thefunctionsofSwissbusinessinBejing.Fur- bassy buildings. After thatwe hadthechancetolearn China gave usaninterestingtouraroundtheSwissem- Mr BeatBürgi, theManagingDirectorofSwissHub Guangzhou Swiss EmbassyinBeijingandtheConsulate hot issuesoftheChineseeducationsystem. explained tousthepresentationofschoolandother architectureand a combinationofwestern andeastern View from thetopofadministration buildingoftheSuzhouIndustrialPark (PhotobyRüttimann). minded visitorwould, were oftenoverwhelmed by it all the changesthisnecessitates. The students,asany open live. The bigchallenge isthedimensionsofgrowth and not liesomuchinthedifferent cultureortheway people To adventure. visitChinaisagreat The challengedoes Final Thoughts To understandthefuturegrowth onehastounderstand While visitingthePearl River delta,aproductionarea at [email protected] blog: http://somblog.zhwin.ch/studytrips/ orcontactme For furtherinformation about thetrippleasevisitour “The triptoChinawas aonceinlifetime experience.” two weeks ishuge.” years attheZHW.The experienceIgained duringthese “This triptoChinaistheabsolutehighlightofmy three country.” “I gained unforgettable impressions from thisgreat Some captionsofthestudents: minded aboutnew cultures. futurechallengesandbeopen a commitmenttoface for thestudents,thiswas notonly atriptoChina,itwas China. Consequently,into theirfuturebusinesspartner andtoinvestinto alandofopportunities money andtime student thusshowed personalinteresttoventure agreat dents paidfortheirown Each trip. This issignificant! ner intheirfuture. of young people,towhom Chinawillbeaconstantpart- – how challengingthiscountyis. This isespecially true At theend, itisworth mentioningherethatallthestu- www.zsm.zhwin.ch Bulletin orvisit: For detailspleaseseebroschure insertedinthis Management inNovember 2007. A continuingEducationCourse attheSchool of Doing BusinessinChina the Zurich School ofManagement Centre ofEmerging Markets at by Prof. Dr. RenéRüttimann 97 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE NEWS FROM MEMBERS 98 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE ing way foranunbiasedacceptanceofthephenomenon andtraditions,thusmak- tence ofahierarchy forms inart succeededinremoving art century thevalue-based exis- toolittle–attention,untilrecently.little –far Twentieth classed merely asahandicraft andassuchwas paidtoo For form. paper-cutting asanart alongtimeitwas aim istoarouseawareness in,andenable reappraisalof point ofview,China andEurope.From ascientific the cinating overall ofpaper-cutting in pictureoftheart In various display rooms,theexhibition provides afas- become apparent. social milieusurrounding thischaracteristic artform, velopment, executionandsubjectmatter, aswell asthe isons, thepointsofcontactandalsodifferences inde- tures bypaper-cutting. Bymakingintercultural compar- is realized byanartistictechnique –thecreation ofpic- meeting ofcultures ofaveryspecialkind. This encounter tions andprivateownership, offer theopportunityfor a scissors orknives, from internationalmuseumcollec- and European paper-cutting. Masterpieces,cut with a comparative insightintothemagical world ofChinese For time, theMuseumBurg thevery first Zugisoffering 28th October2007until27thApril2008 by theMuseumBurgZug Chinese andEuropeanPapercuts–Anexhibitionproject By MagicalHands 1981/82, Jutta Bewig Collection, Hamburg. Cutting byMasterZhaofrom thevicinity ofPeking, bolizing thewishfor alongandhappy old age. Knife- Traditional embroidery pattern:catandbutterfly, sym- respected intheir neighbourhood. Another maintheme sor-cutting toenhancetheirhomes,andhence arehighly occupation,andvillagewomenondary who excel inscis- menwho produceknife-cutsasa sec- the peasantry: which wereterns widely usedinancientChinese society. pat- and ceilings,alsothedelicate white embroidery types of‘window-flowers’, decorations fordoors,walls percuts andtheirdistinctive uses,by showing various variety ofstylesaswell asofthedifferent ofpa- forms colours. tools. Someofthepapercutsarethendyed in gaudy so-called knife-cutsexecuted withsmallscalpel-like techniques rangingfrommonochromescissor-cuts tothe cially areas. inrural espe- ofChinesefolk-art, widespread andvitalforms A.D. Inthecourseoftimeitbecameonemost texts enable ustotraceitbackatleast the6thcentury andreferencesinancient in Europe.Excavation finds In Chinathetraditionofpaper-cutting olderthan isfar Chinese Papercuts rope and Asia. It is,ofcourse,equally intendedforourvisitorsfromEu- a meetingplaceforpeoplefromtheEastand West. China andEurope,tocreateintheMuseumBurg Zug a contributiontowards theculturalexchange between withit,thisunusualexhibitioncurrently strives tomake Association “Friends ofPaper-Cutting”. tion “ProHelvetia”, inclosecollaborationwiththeSwiss oftheSwissCultureFounda-mented withthesupport by theSwissGeneralConsulinHongKong, andimple- Macao, China. The ideafortheexhibition was proposed Switzerland andFoshan, China”inHongKong andin at theexhibition “TheEnchanting ofPaper-Cutting,Art nese andSwisspaper-cuttings thatwere shown in2006 to thepresentday. others), theexhibition isconsciously establishing alink sive works (HauChunKwong, Kara Walker, among per andscissorsorscalpel,–createinnovative, progres- who withconventional artists, temporary materials–pa- been presentedanywhere else. edge, noexhibition ofthis size andonthissubjecthas paper-cutting inallitsdetail. To thebestofourknowl- Focus willbegiven fromamong toanumber ofartists The aimistogive anoverall impressionofthelarge The exhibition willincludeexamples ofthemajor Together withthevaried con- programme thatwillrun This prodigiousdisplay alsoincludessomeoftheChi- By exhibiting theworks and ofEastern Western con- four years at the Central Academy ofFine in Bei- Arts fromHamburg University,her graduation shestudiedfor sinologisting withtheGerman JuttaBewig. Following work. haveartists inthemeantimemoved toEuropelive and completerooms.SomeoftheseChinese intended tofill largeten createvery cutsorassemblies ofcutswhich are giving ofshapeandcontent. new interpretations They of- in diverse ways, ofpaper-cutting, taken uptheancientart number oftheexhibits areonloan. is thecentreatFoshan China,fromwhere a insouthern with revolutionary themes. andmodern A goodexample icraft cutstothecreationoflarge-size papercutartworks products rangingfromoftenexcellently executed hand- paper-cutting workshops andhandicraftcentres,with tent. Outofoldlocaltraditionsgrew state-administered topresentnew form ideasandnewthis art picturecon- munist movement began tocollectpapercutsanduse of the20thcentury. inthecom- Duringthe1940s,artists the morerecentdevelopment sincethemiddle ofthisart the exhibition willalsoincludeworks which reflect ofart cious motifs. ticular alarge variety ofmagically protective orauspi- from popularlegends, novels andstageplays, andinpar- paper-cutting, lifescenes,figures which includerural featuresandmeaningoftraditionalChinese important will concentrateondisplaying andexplaining themost Musée du Vieux Pays d’Enhaut,Château-d’Oex. Driving Cattletothe Alp, Paper-Cutting byJohann Jakob Hauswirth,L’Etivaz (Canton Waadt, Switzerland), 1855, For theChinesesectionofthisexhibition we arework- Over thepastfew have, decades,young Chineseartists In additiontotheauthentic,traditionalpaper-cutting, ves hiscattle tothealpinspringanddown fromthe tle processiontoandfromthe dri- Alps (when thefarmer A popularsubjectfortheSwiss alpineregion isthecat- ture isdepictedinconjunction with animalsandpeople. andna- whereby isfarming, themainsubjectinfolkart ordecorativegreetings picturestohangin living rooms, sors, avariety ofobjectsarecut:love letters,New Year ting hasdeveloped Usingscis- intoabranchoffolkart. small knives andsimilartools. “lace pictures”. The work isnotdonewithscissors,but ofpaper-cutting are todaythese masterpieces called work designderives which iswhy fromlacepatterns, craft parchment-cuttingsofsacralsubjects;theopen- skilful nunsspendcountlesshoursworking by handto Europe’s interestinChinahadbeenaroused.Inconvents, picted and, inthe18thcentury, Chinesemotifstoo–once wealthy. Family crests,peopleandlandscapeswere de- niscent ofcostly lace, which like lace,was only forthe work, remi- filigree ment was usedtocreate thefinest century. Rightfromthebeginning white paperorparch- cameintobeinginthe17th In Europepaper-cutting first European Paper-Cutting mote rural areastovisitfolk-artists. mote rural many andrepeatedly paper-cutting artists, travelled tore- history. Duringthattimeshebecameacquaintedwith traditionsandtheir jing, specializinginChinesefolk-art Since thesecondhalfof18thcentury, paper-cut- 99 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE 100 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE Museum: Kirchenstrasse 11,CH-6300Zug www.burgzug.ch [email protected] Direktwahl: +41(0)4172829 73 Büro: Hofstrasse 15 Kultur –ZeitGeschichte BURG ZUG Mathilde Tobler, Dr. phil.,Kuratorin For furtherinformation pleasecontact: theatre. clearly illustratetherelationshiptoChineseshadow emerged, combiningmovement withpictures–andthese theatre and, lateroninthe20thcentury, silhouettefilms (people sewing, playing music,readingetc.).Shadow picturesandfamily scenes of historicalsubjects,group shadow. therearealsosilhouettes fromportraits, Apart thataperson’sory characteristicscouldbereadfromhis mist, JohannCasparLavater, even propoundedthethe- Inthe1770sZurichpriestandphysiogno- profile). madeofthemselves (shadowhouette portrait picturein classes sincethe18thcentury. Many peoplehadasil- which popularamongtheeducated hasbecomevery tween andreality. fantasy used tocutpaperpicturesthathoveredfairytales, be- for theirartistry. HansChristian Andersen, theauthorof century, HenriMatissehave beenknown tousescissors Philipp OttoRunge, Adolph von Menzel,and, inthe20th practised. land paper-cuttingcontinuestobe initstraditionalform InSwitzer- a strictly symmetricalpictureconfiguration. i.e. thesheetofpaperisfoldedatleastonce,resultingin alp intheautumn). A foldingtechnique isalsooftenused, A quite separate art form isthesilhouettepicture, form A quiteseparateart Since the19thcentury, well-known suchas artists Facts aboutMuseumBurgZug Educational programmes for teachers Workshops andcourses Programmes forfamilies Demonstrations by artists wide variety ofprogrammes andevents Chinese weekend (25.01.–27.01.2008)witha (available andEnglish) inGerman Guided tourswithSwissandChineseguides experts tion andpresentedby nationalandinternational Series ofspeciallecturesrelatingtotheexhibi- Opening exhibition withspecialguests Events andprogrammes Marlene Zurgilgen ([email protected]) Monday Contact 10am–5pm Website: www.burgzug.ch Email: [email protected] Phone: 0417282970 Information 2pm–5 2pm–9 Closed 1st Wednesday inthemonth Sunday Tuesday –Saturday Hours ria andthegardeninvite you tolookandlinger. historical collection,specialexhibits, thecafete- past andconnectittothepresent. The cultural- town gives youtoexperience the theopportunity The museuminanoldcastlethemidstofZug castle. Burg Zug: Museum Gastspiel desEnsemblesderJiangsuKunquOpera Tao HuaShan–DerPfirsichblütenfächer Zürich (Foto: Thomas Entzeroth /foto@entzeroth). Die MitgliederdesEnsembles derJiangsuKunqu Opera mitEhrengästen nach der Vorstellung imSaalder Tonhalle ganze Landverbreitete. IhreBlütezeiterlebtesieim16. genen Provinz Jiangsu,von wo aussiesichüberdas Menschheit. SieentstandinderimOstenChinasgele- der ältestenheutenochgepflegten der Theaterformen istdiechinesischeKunqu-Operführungstradition eine 600Jahrenununterbrochenen Mit ihrerseitrund Auf- faszinierte. den Tag beimKinderkonzert bestauntwerden konnte, Textes. Auch dasInstrumentarium,amdarauffolgen- Poetik, denHumorunddieQualitätdeschinesischen lung gutnachvollziehen und bekameinenEinblick indie den grossen Übertitelungs-Tafeln konntemandieHand- Kostüme undMaskensofort inihren Bann.Dankderbei- so zogen diewunderschönen undfarbenprächtigen lagen undmitausgeprägten Glissandigesungen wird –, lich ist–zumBeispielweil ausschliesslich inhohen Ton- Auch wenn derGesangfürunsere Ohren sehrungewöhn- faszinierende neue Welt derMusikundOpererleben. in der Tonhalle Zürich konntendieZuschauer eine Oper «Tao HuaShan»zusehen. Vor ausverkauftem Saal Zürcher Kammerorchesters –inderSchweiz dieKunqu- Zum ersten Malwar am9.Juni 2007–aufEinladungdes erationen weiterzugeben. EinSchwerpunkt ihrer Arbeit tion derKunqu-Oper zu bewahren undanfolgendeGen- hen esalsihre Aufgabe an,diejahrhundertealte Tradi- können.DieMitgliederdesEnsembles se- übernehmen wandert sindunddaherdieunterschiedlichstenRollen zitation, Pantomime, Gesang, Tanz, Akrobatik etc.)be- derGattung(Schauspiel,Re- allen Darstellungsformen diein ausgebildetenKünstlern, besteht aushervorragend Die StammbesetzungderJiangsuProvince Kunqu Opera sich anderreichen Tradition dersüdlichenKunqu-Oper. samt sechsKunqu-Ensembles des Landesundorientiert derinsge- verschrieben. Siegiltalsdas renommierteste heute nochgepflegten Form deschinesischen Theaters forschung, Produktionund Aufführung derältesten der Menschheit»aufgenommen. in dieUNESCO-Listedes«immateriellenKulturerbes undPublikum. 2001wurdedieKunqu-OperKünstlern bei wurde, erfreutsiesichheutewiederregen Zuspruchs musste undnurnochvon wenigen Kennnern erhalten einen 18. Jahrhunderts Teil ihrerPopularität einbüssen und gesellschaftlicher Veränderungen gegen Endedes Nachdemsieinfolgepolitischer und 17.Jahrhundert. Die JiangsuProvince Kunqu OperahatsichderEr- 101 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE 102 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE eine bestimmte Situationoder Atmosphäre hervorzu- lassen blieb, durchSprache, Gesang, MimikundGestik über- Stühlen, sodassesinersterLinie denDarstellern «Bühnenbild» bestandnuraus einem Tisch undzwei am RandderBühneundverfolgten dasGeschehen.Das agierende Darstellersassenfür denZuschauersichtbar daheraufoffener fanden Bühnestatt.Nicht Bartes Kostümwechsel wiebeispielsweise das Anlegen eines Zürich erleben.Szenenumbautenodereinfache kennt auchkeinen Vorhang. Sokonnte manesauch in die Kunqu-Oper keiner aufwendigen Ausstattung und («daluo undxiaoluo»)sowie einPaar Becken («naobo»). Trommel undkleinenGong («xiqu»),einengrossen eine umfasste ment («erhu»).DieRhythmusgruppe ge Laute(«sanxian»)undeinzweisaitiges Streichinstru- Bambusflöte («dizi»),Panflöte («zeng»), einedreisaiti- derKunqu-OperAndere typischeInstrumente waren nen erdas Tempo desmusikalischenGeschehensvorgab. kleine Trommel mitde- Klappern, undeinPaar hölzerne Der musikalischeLeiterdesEnsembles spielteeine sowie zusammen. strumenten einerSchlagzeuggruppe zehn Musiker undsetztesichausBlas-Saitenin- genheit ermöglichen». und diePrachtdeschinesischen Theaters der Vergan- Publikum einen Einblick indenkulturellenReichtum Epochen, die–soRegisseurin Tian Quinxin–«dem Szenenausverschiedenen historischen hundert derJiangsuProvincedas Repertoire Kunqu Operaüber klassischen Werken umfasst derGattung.Gegenwärtig liegt daherinderErarbeitungund Wiederbelebung von deren Gattinnen(Foto: Thomas Entzeroth). Chefdirigent Muhai Tang mitseinerFrau und Töchterchen undBotschafter ZhuBangzao, Generalkonsul LiXiaosiund Wie alletraditionellen Chinasbedarf Theaterformen beiderZürcher Das Orchesterumfasste Aufführung Klangkörper von internationaler Bedeutung seitMitte von internationaler Klangkörper jährigen Leitungvon Howard seinenRang als Griffiths ist.NachdemdasZKOdokumentiert unter derzehn- gefächerte Arbeit durchzahlreicheCD-Einspielungen das weltweite RenommeedesZKO, dessenbreit europäische Ländersowie dieUSA undChinabelegen sowie durchverschiedene ausgedehnteKonzerttourneen vals, Auftritte indenbedeutendenMusikzentrenEuropas seiner führenden Klangkörpern Art. beachteten Ensemble entwickelt undzähltheutezuden merorchester (ZKO) schnellzueineminternational hatsichdasZürcherKam- Edmond deStoutzgegründet, Unmittelbar nachEndedesZweiten Weltkriegs durch Zürcher Kammerorchester westlichen Musikgeschichtefördern. ropäischer Kulturen mit herausragenden Werken der Begegnung von bedeutenden Traditionen aussereu- tur» möchteerauchindenkommenden Spielzeitendie an. MitseinerneuenReihe«Meisterwerke der Weltkul- Brückenbauer zwischendenKulturen von Ostund West zen Europashinauszuerweitern. Ersiehtsichdaherals Aufgaben, unserenkulturellenHorizontüberdieGren- Kammerorchesters, siehtesalseineseinerwichtigen deuteten beispielsweise dieFahrt ineinemBootan. trugen, die Kurtisanen quervor ihremKörper die aufwendige Szenerienersetzten. Ausgerollte Fahnen, Requisiten, DanebengabeseineReiheeinfacher rufen. Regelmässige Einladungen zu internationalen Festi-Regelmässige Einladungenzuinternationalen Muhai Tang, dermusikalischeLeiterdesZürcher The DisabledPeoplesPerformanceArtTroupe ofChina Buddha withThousandHands bishinzuzeitgenössischenKomposi-sche Repertoire Musik desBarockzeitaltersüberdasklassisch-romanti- Konzertbereich erstrecken sichseine Tätigkeiten von der im dirigiert, undBallettrepertoire Opern- gefächertes naloper inHelsinki.HierhatMuhai Tang einbreit sowie von Flandern Philharmonie dieFinnische Natio- land Symphony OrchestrainBrisbane,dieKönigliche das ChinaNationalSymphony Orchestra,dasQueens- in derFolge andasGulbenkianOrchesterinLissabon, leiten. Positionen Muhai alsChefdirigentführten Tang 1983 einlud, einKonzert zu derBerlinerPhilharmoniker von Karajan,derihn gabHerbert Karriere ternationaler zuMuhai Musikhochschule. DenStartschuss Tangs in- Heimatstadt Shanghaisowie anderMünchner Muhai Tang amKonservatorium studierte seiner Muhai Tang Künstlerischen LeiterundChefdirigentenernannt. Beginn derSaison2006/07 Muhai Tang zuseinemneuen der Neunzigerjahrenachhaltigfestigenkonnte, hatesmit h ac ald`udawt huadHns pre- the dancecalled `Buddhawith Thousand Hands’ oftheworld. groups most respectedartists is aspecialevent – madethetroupebecameoneof orinawell-knownater performance TV show oreven it UN conference. Denmark andMalaysia, EuniceKennedy Shriver and Schröder, Governor of Australia, PresidentofPoland, ofthetroupe. Dream’ thusiastic audiencefortheworldwide uniqueshow ‘My fromtheen- 2004 were thebestpraisesandcertificates ney, attheclosingceremony oftheParalympics in Athens Hall,JohnF.Carnegie Kennedy Center, OperaofSyd- nese Kungfu. highlights ofPeking operaandeven someactsofChi- andinstruments, sisting ofdance,songs,Chinesedrums They presentahappy, abundant and rhythmic Show con- physical dreamtrue. Disabilityandrealizestheirartistic Troupe who overcomes ofChinaconsists55artists, The troupeof The Disabled Peoples Performance Art 2008 inPeking. light oftheopeningceremony show ofOlympic games act ‚Buddha With bealsothehigh- Thousand Hands’will for aspecialpresentation inmidJune 2007. Their show vited bytheUNESCO, they cametoSwitzerland (Zurich) On theway back toChina,from theirshow inParis in- The most highlight of their performance isdoubtless The mosthighlightoftheirperformance The appearancesaroundtheworld –eitherlive atathe- They were thehonoredguestsofBillClinton,Gerhard Standing ovations intheOperaScalaofMilano, E-mail:[email protected] Tel. +41-443883604 CH-8034 Zürich Seefeldstrasse 305/Postfach 1284 Zürcher Kammerorchester /Meisterzyklus Barbara Honegger, PR/Werbung Für weitere Informationen: lerische Planungbetreuenwird. Hall,fürdieerkünst- Leiter derShanghaiConcert nannt undimSeptember2006wurdeerKünstlerischer Künstlerischen BeraterdesQueenslandOrchestraer- Musikfestivals. geleitet undwar Gastbeinamhafteneuropäischen OrchesteraufvierKontinenten renommierter ternational Muhai Tang indenvergangenen SpielzeitenKonzerte in- Aufführung bringt. tionen, wobei eroft Werke asiatischerKomponisten zur siastic andfull of rhythm. Their world isquietandbeautiful. Their music isenthu- Muhai Tang wurde2005zumEhrendirigentenund Neben regelmässigen DirigateninseinerHeimathat 103 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE 104 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE nitely not bemissed.For thisevent, we the ZurichChi- forthis5thannualtroupeeventparts which shoulddefi- They have beenplanningmany new piecesandcreative and musicshow regarding theChineseNew Year Festival. for February 3rd, 2008fortheirnext annualtroupedance The readersarealsokindly asked tomark their calendar Support theChineseNewYear Festival2008 event from aspecialdiscountforof Commerce benefit this site fortickets. to Ticketcorner 0900800(1.19CHF/min)ortheirweb- adding new piecesand creations.Interestedpeoplecango theirshow they continuously qualitybyimportant, refine fromaspecialangle.Most pieces introducesChinesearts batics andKung Fu. Their own choreography oftheshow culturalcomedies,singing,acro- traditional instruments, tural elementsinthisshow, like Chinesetraditionaldances, annual troupeevent. You allkindsofChinesecul- canfind 23rd, atthe Volkshaus Zurich. This show willbetheir4th Music Show forChineseMid-autumnFestival on2007Sep proudlyArts.org) presentsitsannualChineseDanceand Zurich Chinese Arts Troupe (www.ZurichChinese- Volkshaus Zürich,Weisser Saal Sunday, September23rd2007,16:00p.m. Dance andMusicShow Chinese Mid-AutumnFestival the Jean Beharsupport Troupe. undertheleadershipofPresidentDr. of LionsClubs’ suchas‚TheInternational Association zations andfirms Art Troupe ofChinastrongly. organi- Also international Hong Kong, theDisabled Peoples support Performance Jiacheng –oneofthemostsuccessfulbusinessmanin audience inChina,amongthemforexample Tycoon LI Bulletin 4/2003)andinZurichthisJune. ious bigcitiesinSwitzerland2004(announcement amazing choreography, which alsocouldbeseeninvar- sented by 21deafgirlsandboys withaharmonically and ment. Moredetailscanbefoundontheirwebsite. Kultur, andtheSwissGovernment EconomicDepart- shows includingshows sponsoredby theStadtZürich cessfully presentedmany highlevel danceandmusic Kung was Fu.Sincethegroup founded, they have suc- tional singing, Acrobatics, GymnasticsandChinese Chinesetradi- Chinese traditionalmusicinstruments, nationalities) specializedinChinesetraditionaldances, have about30highlevel (comingfromdifferent artists they Europe).Currently China andSwitzerland(further istopromoteculturalcommunicationsbetweengroup 2005, isapolitically troupe. neutral arts The goalofthis The Chinesegovernment, theirloyal andenthusiastic Zurich Chinese Arts Troupe, 1st foundedonJanuary (look for ticket order form inthisBulletin). (look forticket orderform Members oftheSwissChineseChamber Cell-phone: +41-78-6401233 Tel &Fax +41-44-4331768 [email protected] Baendlistrasse 54,CH-8064,Zurich www.ZurichChineseArts.org Director ofZurich Chinese Arts Mr. HuizhuHu Contact: invitation letter. Any kindofhelpishighly appreciated. thisfestival.support Pleaseseetheirseparatesponsorship nese Arts Troupe arelookingforsponsorstofinancially [email protected] E-mail: 044-8099111 Phone: Mr. PhilippBrunner m&m mediaagentur ag or inSwitzerland: E-Mail: [email protected] Uniart Production® For further information pleasecontact: http://www.myvideo.de/watch/434962 video clip (6min)under: To get anideaabout theirperformances, pleasewatch a

106 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE the nationalChinesetelevision network CCTVpartnered fromawin-winsituation”. can allprofit ronment where football,individuals andthegovernment be amodelforfuturelegal gaminginacontrolledenvi- tlewoods) suggestedthat“theEnglishfootballpoolcan Penrose (owners ofEngland’s oldestfootballpoolLit- than halfoftheworld’s population. Sportech’s CEO, Ian vision broadcastingrightsinaregion inhabitedby more sponsorshipsandthesale oftele- forsports opportunities naments by topEuropean clubsin Asia andnew sues suchasthecontroversy exhibition tour- surrounding ness executives from23countriestodiscusstopicalis- and lectures. They were joinedby over 300seniorbusi- and duringthetwo-dayAsian counterparts symposium nies (suchasSportFive andInfront)metwithChinese marketing compa- those fromIranandQatar)sports and Barcelona), Asian Football Associations (including Members andCEOsofleadingclubs(Bayern Munich was Buck.Board headedby Bruce ChelseaFCChairman and ChelseaFootball ClubofLondonwhose delegation federations aroundtheworld thatarejoinedinFIFA – AFC –UEFA’s andoneofthesixcon- Asian counterpart tively endorsedby the Asian Football Confederation, IFAThe first Asia symposiuminBeijing,China,was ac- around theworld. that provide insightinthefuture offootball business Grand HyattinBeijingwithsomemajorannouncements ditorium inZurich, tookplaceonMay15and16atthe symposium andworkshop heldannually attheFIFA Au- homonymous Asian editionoftheleadingglobalfootball International FootballThe first Arena (IFA) Beijing, the IFA SuccessfullyLaunchedinBeijing Marcel Schmid, IFA founder, at thespeakers deskduringtheInternational Football Arena inBeijing. China’s mediagroup, largest sports Titan and Sports, www.international-football-arena.com Book your seatnow andregister onlineon Zurich for theninthedition oftheIFA. international world offootball will get together in decisionmakers from the On November 5th2007, www.international-football-arena.com [email protected] Phone +41(0)442839012 8027 Zurich/Switzerland Lavaterstrasse 81 International Football Arena Ltd. Antje Hembd,Project Manager For further information pleasecontact: on November FIFA 5,2007intheformer auditorium. vember”, heconcluded. The IFA Zurichwilltake place footballcalendarinNo- dateontheinternational its firm spring, afterthetraditionalIFA inZurichwhich hashad Marcel Schmid.“Nodoubt,we’ll bebackinBeijingnext lateintheday”,cided toparticipate saidIFA founder over 100additionalChineseand Asian attendeeswho de- scribed andtheonly problem we was faced tocaterthe IFAsociation. “Thefirst Asia was completely oversub- Ya oftheChineseFootball Long,GeneralSecretary As- European, USand asstatedbyAsian participants”, Xie in anevent which generated“alotofgoodwillbetween Essential. its strength. A watch ofwhite sensuality. Independent. tality andsophisticatedsimplicitygive Rado True White andJubilé–isavailableSport vi- intwo sizes.Refined matching tones. ofconcentriccirclesand merals inanarrangement playful version ofthedial,fourdiamondsreplacenu- hours.Inathird, markthequarter more nous white infill portionately large skeleton Arabic numeralswithlumi- an exceptionally monochromaticdial.Dispro- uniform sparkles. directly onthedial. A littlecirclewithathousandwhite by diamondsset o’clock, delicately fourteen surrounded ette ofthehandspassescloseby thedatedisplayed at six opalineline. an uninterrupted The straightsilver silhou- sapphirecrystal. curved The braceletextends thedialin the milky light.Subtle,unsullied depthsunderneath rity isimmediately attractive. ramic watch areperfectly fluidandintegrated. Their pu- black approachislegendary. The linesofthisentirely ce- separate fromtheRadocollection,whose geometric White andround. True ofandyet White standsout,apart White variationsonthecircle RADO True White screw-down crown protection setwitheightdiamonds. inthedetailis the seconds handturn. The nicesurprise silver hourandminutehandsthewhite silhouetteofa to thedarkskies,crossedby adelicatemilky way, where tomatic model. gives sapphirecrystal The facetted depth anchor, which symbolizesthe oscillatingmassofthisau- hole above thesixo’clockpositionreveals amobilesilver hour butthree,where adatewindow appears. A smallport- set withblue indicesandeleven diamondsmarkingevery Its mattblue centreisringedby ahigh-glossblack band hold ahardmetalcasethatframesround, two-colour dial. when suddenlycharm they lightandcatchtheeye. crown arehiddenmomentarily, tounveil returning their diamond stars.Otherdiamondsroundtheedgeof mysterious, forintheblackness twinkletiny oftheface lines areboldandauthentic,yet itremainsdiscreteand –itlovescandid andinscrutable tobecontradictory. Its Jubilé Sitspower andappeal.Demureprovocative, of thedial. These contrastsgive theRadoNew Original liance ofthecasecastadelicatelightupondarknight The shimmeringflow ofthebraceletandellipticalbril- Light anddarkgohandinseteachotheroff. A playonlightandproportions New OriginalJubiléS A titanium clasp and the bracelet in satin-finish steel A titaniumclaspandthebraceletinsatin-finish Each variation onthe True White theme–PureJubilé, This modelisalsoavailable version with inasporty ofapassionatecircle,thedialradiates In theform 107 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE 108 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE us. This isindeedcustomercare! a rally. peopledidfor Butthatisexactly what thesefine Itisnormally notacarrier’sHKAA offices. dutytosave sent andwho hadcalledtheorganizer toattendthe Association, Andy Windebank, were amongthosepre- AFL LimitedandtheCEOofHongKong Automobile many, aswell MurdochMDof astheirlocalagentStuart President ofGlobalLogistic inHamburg Ger- Services Hubert Westermann and Axel Riege, Presidentand Vice I, went over tosee,whether somethingcouldbesaved. ciation offices. of theRally was attheHongKong Automobile Asso- Peter Jenny andIhadhowever heardthattheorganizer Switzerland, GiancarloGaleazziandHansBernbach. order todischarge steam. Among them,two morefrom ticipants, went drive forashort withtheirclassiccars,in told onSaturday March24th.MostRally morning, par- take place”,we, my colleague,Peter Jenny andIwere The Rally was anadventure indeed.“TheRally won’t March 27–April8,2007AChallengingJourneybyallMeans Classic CarRallyHongKong–Beijing served atastylunch. We were warmly received. was reserved for ouruse. And those, guardians ofthepeacesaluted, when we drove by. Inawonderful garden we were In Convoy tothefactoryofJames Rice. Heknows themayorquite well andtheroad aswell aseach parking lot exit City(photobyPeterApril 6,Changyi Jenny, Frenkendorf) Five Rally amongthemPeter participants, Jenny and away theRally, they want totake everything fromme.” above, which hehadnot countedonnorexpected. to pay anadditional30’000Euroforthefeesspecified Rally organizer gotlostandwas closetocollapse.Hehad the Back toSaturday attheHKAAoffices: morning thedrive-through forvarious permissions provinces. – theChinesedriving licence – thecomplicated(registration andde-registration) for- – organizer andpossibly us? table: a)usby theorganizer orb)theChineseagency, the ever, itisstillnotcleartome,who was pulledover the ther procedureswere discussed. Sunday, atwhich allRally were participants present,fur- step by step. With two additionalmeetingsSaturday and He stated:“They (theChineseagency) want totake malities oftheclassiccars The organizer hadtoconsulttheChineseagency for: How- start. theRally couldfinally The outcomefirst: At thismeetingallcircumstanceswere broughtup, travel agency inShenzhen, inordertosignthecontracts. stealing oftheRally.” nizer, ontheotherhand, hiredalawyer, toclarify“The nese wifeofthesecond American joined him. The orga- topoliceforsatisfaction. turn At last,inBeijing,theChi- American, whofirst isliving inChina, threatenedhe’d so on… Why didn’t hework together withthetravel agency? And come hedidn’t know aboutthesefeespriortotheevent? ticipants andtheorganizer. Where was themoney? How was obvious therewere arguments between theRally par- longing totheChinesetravel agency. in arentedcar, alsoPeter andIrodeinaminibusbe- the organizer (andpaidforby us),butwithanotherteam for itaswell. Butnotwiththeclassiccarspromisedby teams inclassiccars,2teams,Peter andIincluded, went The result:1teamNOGO, 10teamsGO, outofwhich 8 outandgoinghome,which Stepping would have – e.pay againextra forthehotels, Goingfurther, i. – natives: isestablished). Haerri These would have beenthealter- Commerce inShanghai(contacttoourPresident,Kurt pens tobetheGovernor ofthe American Chamberof Manager,& Country Tyson Foods, Inc.China,who hap- this problem. Chiefwas JamesM.Rice, Vice President who wouldparticipants, work towards solutionfor afinal We analysed thesituation andcameupwithateamof Automobile forsolutions. Association andbrainstormed fees foreachprovince staff. andsupport oftheChinesetravelfull service agency, suchastransit amount of30’000Eurowas forvarious feesandforthe it was clearthatthedocumentswere genuineandthe and Andy Windebank, who translatedallthedocuments, ports. There were lotsofsuchambiguities. no way asillegal im- outandmaybe beingconfiscated exist fortheclassiccarstogetcaughtinmiddle,with us againbacktosquareone,becausethedangerwould timated by theRally organizer, was abribe. That threw weekend. The amounttobepaidthetravel agency in- travel agency have beenwritteninChineseanditwas the extremely Inaddition,alldocumentsofthe difficult. was slowly addinglighttotheconfusedsituation.Itwas oftheirrarepieces. plus thetransportation jing; andthereforethey had paidaround17’000Euro pockets. They wanted todrive theirclassiccarstoBei- reason why theseowners hadreacheddeepintotheir a large numberoflocalpublic. Butthisshow was notthe tel inHongKong rightonthewaterfront andimpressed wereairplane, parked infrontoftheHarbourPlazaHo- Great Britain,SwitzerlandandtheUSA,sentby shipand any Rally suchasthis. The classiccarsfromGermany, additionto regulations inChinaisanecessary current The agency was indeedatravel agency, which underthe On Monday, March26th,we metwiththeChinese In particular, two Americans gotextremely upset. The The clockwas tickingfortheChinesetravel agency. It meant, toloseallthemoney alreadypaid. count. JamesM.Riceguarenteedforthemoney. ac- inaccordancewiththefinal meals andthedeficit We satallday longinthemeetingroomatHongKong Murdoch out,withthehelpofStuart As itlaterturned Saturday thedensefog afternoon, began clearingand tured before January 1, 1973.) tured beforeJanuary tage car:1919–1930.Classicanything manufac- classic orvintagecar, (Vin- iftheorganization iscorrect. mending Interview No.32. side andlistentoInterview No.9.Iamalso recom- www.oio.ch/07/china. Clickon[Interview] ontheleft That was anotherstory. For details,pleasesee: then fortheRally registration numberfortheclassic cars. tially, we hadtowait fortheChinesedriving licencesand smoothly.did notrun The waiting wasn’t over yet. Ini- passed over theChineseborderintoShenzhen. Again, it gone. inhimwere andfaith again. Butthetrust by now long improving, andhopingtotake over struggling thelead Certainly cooperationwas present. The organizer was knew neitherthepeople, norwhere they were located. byThis meetingwas theorganizer, arranged sincewe and oldmetal,awork ofart? Great Wall: Isn’t thisabeautifulpicture witholdstones, April 8,Great Wall (photobyJames M.Rice, Shanghai) In any case,Chinaisworth ina morethanajourney Finally, on Tuesday, March27th,theclassiccars For furtherinformation pleasecontact: Journal by:RuediMüller, Ramersberg Oldtimer inObwalden: www.o-io.ch [email protected] Phone 041-6663040 Ruedi Müller 109 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE CULTURE & LEISURE 110 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE SERVICES a +86-21-62700522 [email protected] +86-21-62700519 Fax Phone P.R. China Shanghai 200051 319 XianXiaRoad, Hongqiao Far Plaza EastInternational 22F, Building A, Shanghai c/o ConsulateGeneralofSwitzerland Hub Shanghai: +86-10-65324353 www.osec.ch [email protected] +86-10-6532 2736ext. 218 Fax Phone P.R. China Beijing 100600 Sanlitun, Dongwujie3 c/o EmbassyofSwitzerland andHub Beijing: Head office Shanghai andGuangzhou) Beijing andConsulatesGeneral in (Hubs are integrated inSwissEmbassy Swiss BusinessHubChina Organizations Swiss GovernmentandTrade +86-20-38330453 www.eda.admin.ch/guangzhou [email protected] +86-20-38330450 Fax Phone P.R. China Guangzhou 510620 District Lu, Tianhe228, Tianhe Grand Tower, 27thFloor Guangzhou Consulate General ofSwitzerland +86-21-62700522 www.eda.admin.ch/shanghai [email protected] +86-21-62700519/20 Fax Phone P.R. China Shanghai 200051 319 XianXiaRoad, Hongqiao Far Plaza EastInternational 22F, Building A, Shanghai Consulate General ofSwitzerland +86-10-65324353 www.eda.admin.ch/beijing [email protected] +86-10-65322736 Fax Phone P.R. China Beijing 100600 District Sanlitung, Dongwujie3,Chaoyang Embassy ofSwitzerland P.R. China Consular Representationsin Swiss DiplomaticMissionand in P.R. 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Widmannstrasse7 Commercial Section +41-31-3514573 www.china-embassy.ch [email protected] +41-31-3527333/34 Fax Phone CH-3006 Bern Kalcheggweg 10 China Embassy ofthePeople’s Republic of Switzerland Consular Representationin China DiplomaticMissionand in Switzerland Doing Business a +41-21-6133502 www.osec.ch [email protected] +41-21-6133570 Fax Phone CH-1001 Lausanne P.O. Box 315 Avenue d’Ouchy 47 Lausanne: +41-44-3655221 www.osec.ch [email protected] +41-44-365 51 Fax Phone CH-8035 Zurich P.O. Box 492 Stampfenbachstrasse 85 Zurich: Head office Osec BusinessNetwork Switzerland +41-31-3225600 www.seco.admin.ch [email protected] +41-31-32256 Fax Phone CH-3003 Bern 1 Effingerstrasse (SECO) State Secretariat for Economic Affairs +41-31-3224001 www.eda.admin.ch [email protected] +41-31-3222111 Fax Phone CH-3003 Bern Bundeshaus West Affairs Federal for Department Foreign Organizations Swiss GovernmentandTrade (FDFA) a +41-44-2493133 www.swisscham.ch [email protected] +41-44-2494565 Fax Phone CH-8026 Zurich Stauffacherstrasse 45 (address validuntil endof2007) Foreign TradeChambers) SwissCham (AssociationofSwiss +41-58-323 2950 [email protected] +41-58-323 1903 Fax Phone CH-1211 Geneva 11 Case postale5130 Blv. Georges-Favon 29 c/o Pictet&Cie. Legal ChapterGeneva: +41-43-343 9201 [email protected] +41-43-343 9993 Fax Phone CH-8001 Zurich Auf derMauer9 c/o Nägeli Attorneys-at-Law Legal ChapterZurich: +41-91-9133914 www.sccc.ch [email protected] +41-91-9133911 Fax Phone CH-6901 Lugano Case postale5251 6 Via Ariosto StudioLegale eNotarile c/o Brun Section Ticino: +41-22-3103710 www.sinoptic.ch/scccgeneva/ [email protected] +41-22-3102710 Fax Phone CH-1204 Geneva 4, bddu Théâtre Section Romande: +41-44-4213889 www.sccc.ch [email protected] +41-44-4213888 Fax Phone CH-8008 Zurich Höschgasse 89 Zurich: Head office Swiss-Chinese ChamberofCommerce Swiss BusinessAssociations www.swissworld.org +41-31-3241060 www.presence.ch [email protected] +41-31-3220183 Fax Phone CH-3003 Bern Bundesgasse 32 promotion ofSwitzerland) (responsible for thegeneral andimage Presence Switzerland +41-52-6740609 www.locationswitzerland.cn +41-52-6740600 Fax Phone CH-8200 Schaffhausen 15 Herrenacker of Switzerland) (responsible for thelocationpromotion LOCATION Switzerland China +41-91-9115139 www.osec.ch [email protected] +41-91-9115135 Fax Phone CH-6901 Lugano P.O. Box 5399 Corso Elvezia 16 Lugano: Trade Organizations Hong KongGovernmentand +852-28452619 www.eda.admin.ch/hongkong [email protected] +852-25227147/48 Fax Phone Wanchai, HongKong 18 HarbourRoad Suite 6206-07,CentralPlaza Hong Kong Consulate General ofSwitzerland Hong Kong Swiss DiplomaticMissionin in HongKong Doing Business www.cuz-online.org [email protected] Chinese UnioninZurich(CUZ) +41-44-720 4350 Phone/Fax CH-8640 Rapperswil Zürcherstrasse 6 schweizerischen Kulturaustausch Gesellschaft fürchinesisch- +41-44-2018878 [email protected] +41-44-2018877 Fax Phone CH-8002 Zurich Genferstrasse 21 Fremdenverkehrsamt der China V.R. Organizations Chinese Tourism andSocial +41-43-3448209 [email protected] +41-43-3448207 Fax Phone CH-8022 Zurich P.O. Box 2978 Fraumünsterstrasse 9 Gesellschaft Schweizerisch-Chinesische +41-44-2491205 www.switzerlandtourism.ch +41-44-28811 Fax Phone CH-8027 Zurich P.O. Box Tödistrasse 7 Switzerland Tourism Organizations Swiss Tourism andSocial a +44-2074955033 www.hketolondon.gov.hk [email protected] +44-2074999821 Fax Phone England 4EQ London W1S 6 GraftonStreet (responsible for non-EU countries) London Hong Kong Economic& Trade Office, Region Government Hong Kong Special Administrative a +852-28240249 www.hkfederation.org.hk [email protected] +852-25844333 Fax Phone Hong Kong 1 HarbourRoad, Wanchai Plaza 38th Floor, Office Tower, Convention ment Council.) served bytheHongKong Trade Develop- (The Secretariat oftheFederation is Associations Worldwide Federation ofHongKong Business +49-69-95772-200 http://germany.tdctrade.com [email protected] +49-69-95772-0 Fax Phone D-60394 Frankfurt P.O. Box 500551 Frankfurt Office: +852-28240249 www.tdctrade.com [email protected] +852-25844333 Fax Phone Hong Kong 1 HarbourRoad, Wanchai 38/F, Office Tower, Convention Plaza HongKong:Head Office Council (TDC) Hong Kong Trade Development Associations Swiss BusinessandSocial a +41-44-4213889 [email protected] +41-44-4213888 Fax Phone CH-8008 Zurich Höschgasse 89 Swiss-Hong Kong Business Association www.swiss-hk.com [email protected] Swiss Association ofHongKong +852-25226956 www.swisschamhk.org [email protected] +852-25240590 Fax Phone GPO Box 9501,HongKong (HKSAR) Hong Kong) (Swiss ChineseChamberofCommerce SwissCham HongKong of theworld today. ing you growing tothefastest region “made by Switzerland”andconnect- industrialJoint Venturefirst inChina withthe ences in/withChina,starting work withavast variety ofexperi- bership Application andjoinanet- at men in1980,pleasevisitthewebsite founded by pioneerSwissbusiness- Chinese ChamberofCommerce, To become a memberoftheSwiss- for Chinabusiness SCCC – The largest Swissnetwork Are You aMember? www.sccc.ch . LookunderMem- 111 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE ECONOMY 112 BULLETIN 1/07 SWISS–CHINESE CHAMBER OF COMMERCE SERVICES CH-4058 Basel Untere Rheingasse11 China Restaurant Rhein-Palast CH-3627 Heimberg 135 Bernstrasse China Restaurant BAO TAO ¬ sonal membershipcard. 10–30 %off theregular price,when showing your per- restaurants andsuppliersinSwitzerland, where you get thelistofChinese in theBulletin.Below you find andareregularlyner agreements goingtobeannounced nese goodsatreducedrates. sumptions atChineserestaurantsandsuppliersofChi- members cantake advantage ofhotel-bookings,con- and thePeople’s Republic ofChina.Besidesourevents, renderedbyservices usandtheChaptersinSwitzerland from alsoentitlesyouber oftheChamberbut tobenefit membership fee. with every consecutive year afterthepayment ofthe bership Cardisvalid for oneyear andwillberenewed of theSwiss-ChineseChamberCommerce. The Mem- thank you and togive you aspecialstatusasmember The MembershipCardoftheChamberisagesturetosay Membership CardValues E-mail: [email protected] ¬ CH-8032 Zürich Steinwiesstrasse 8 Restaurant Züri-Stube ¬ RESTAURANTS Further services willbeaddedaccordingtonew services part- Further you asalegitimate mem- The cardnotonly identifies 061-681 1991Fax 061-261 9946 4-6 78 a 4-5 476 24 87Fax 044-251 87 044-267 033-437 6463Fax 033-4376462 2007 COMMERCE CHAMBER CHINESE SWISS OF E-Mail: [email protected] ¬ CH-6300 Zug Bahnhofstrasse 28 GALLERY JJ–“EastMeets West” CH-8032 Zürich Steinwiesstrasse 8 HOTEL TIEFENAUZURICH ¬ CH-8051-Zürich Heerenschürlistr. 23 Alpine SightseeingGmbH ¬ CH-8001 Zürich Zähringerstrasse 24 ZHONG HUA ¬ CH-8004 Zürich Bäckerstrasse 62/Helvetiaplatz SHANGHAI Website: www.mishio.ch ¬ CH-8001 Zürich Sihlstrasse 9 Mishio ¬ CH-3600 Thun Bälliz 54 Restaurant CHINA-TOWN closed onmondays ¬ CH-8006 Zürich Culmannstrasse 19 BAMBOO INN directly.) (For hotel-bookings inChina,pleaseturntotheChamber ¬ Website: www.tiantan.ch E-Mail: [email protected] ¬ CH-1201 Genève 55, RuedesPâquis Tian-Tan HorizonSA Website: www.FTE.ch E-Mail: [email protected] ¬ CH-8304 Wallisellen Bubentalstrasse 7 FIRST TRAVELENTERPRISE Website: www.catvoyages.com E-Mail: [email protected] ¬ CH-1211 Genève 12 Case postale434 8C Avenue deChampel CULTURE A. TRAVEL AIR S. E-mail: [email protected] SUPPLIERS /FURNISHINGS HOTELS TRAVEL/DELEGATIONS 041-720 2121,Fax 041-7202122 4-1 21,Fx04317 54 72 17,Fax 044-311 72 044-311 044-251 4480Fax 044-2514481 044-242 4039 044-228 7676,Fax 044-22875 033-222 9952Fax 033-2229952 044-261 3370Fax 044-8703888 4-6 78 a 4-5 476 24 87Fax 044-251 87 044-267 022-731 0666/59;Fax 022-731 0675 044-322 6688,Fax 044-322 6690 80 81 81,Fax 022-839 81 022-839 Restaurant & Take away