Vocational Passion Leading Technical Training in Tianjin by Joei Villarama
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Business Tianjin - May 2008 Dear Reader, We at Business Tianjin have you to thank for our rapid growth in the first quar- ter of 2008. We have doubled our content since January, and in the past month have proudly partnered with several more local and domestic contributors to offer you the most vital information for business success in China. Keys to the success of any organization include insight into developing markets, effective and efficient communication, state-of-the-art continued employee training, and understanding of relevant policies and procedures. We touch on each of these topics this May. Over the past couple of years Tianjin has become a hotbed for development and production of cutting-edge technology. One of the most promising mar- www.businesstianjin.com kets in this booming industrial nation is that of wind energy. Windmills have come a long way since the days of Don Quixote, and as the green push intensi- Chief Editor: Jamie Michael Kern fies, the nation eyes the wind farm to replace the coal mine. Our cover story this month features the massive growth and significant plans for the future of Managing Director: J. Hernan the local wind power industry. Senior Editor:Wang Na Also in this issue of Business Tianjin, our management trainer thoughtfully Contributors: Wolfgang Knüfer, Simon Bai, Wang Zhenzhe, Mark Gao, TingTing Li, provides a concise tome on meeting management and organizational commu- Pedro Lemos Carvalho nication. He is followed by a review of Tianjin’s most passionate technical train- Proofreader: Trent Hoeppner ing institution and an update with one of its top clients, Airbus, who will begin assembly line production late summer. Graphic Design: Zhao Jian Sales & Advertising: Tang Yan, Ren Zhen, We are pleased to announce that starting this month the Shanghai office of Zhang Danni multinational legal advisor Garrigues will provide a regular column on legal as- Photographer: W. Ji a n sistance to Business Tianjin readers. Its generations of global practice intersect well with the expertise of our local law specialist, as evidenced by their paired Distribution: Huang Hanqing, Cui Jin policy explanations – VAT and representative office taxation – in this issue. Advertising: InterMediaChina Publishing Date: May 2008 Finally, decision-makers interested in networking with multinationals should view our enlarged Chambers Report and Upcoming Events pages to commu- Building A4, 6th Floor, Magnetic Plaza Binshui West Road, Nankai District nicate with expatriate communities, meet potential business partners and keep TIANJIN 300381, CHINA abreast of social activities. Business Tianjin is FREE As always, we welcome your input and inquiries. If you are interested in con- ONLY for Members tributing to a future Business Tianjin, or just have questions or comments on an Tel: +86 22 2391 7700 article, please don't hesitate to reach out to us at the contacts on this page. Fax: +86 22 2391 0555 Sincerely, For extra copies please email: [email protected] For editorial enquiries please email: [email protected] For advertising enquiries please email: [email protected] Jamie Michael Kern Cover image supplied by Chief Editor – Business Tianjin May. 2008|Business Tianjin01 CONTENTS Business Tianjin/May 2008 BIZ BRIEFS 04 PRESS REVIEW 09 NUMBERS 10 MANAGEMENT TIPS 12 Manage your meetings DIALOGUE 18 Dr. Winfried Heusinger, CIM expert of Tianjin Sino-German Technical Vocational College Mr. Marc Bertiaux, Vice President of Airbus in China FEATURE STORY 26 The wind power industry CURRENCY 32 POLICY EXPLANATION 34 China’s VAT LEGAL ASSISTANCE 38 Taxation of representative offices 26 in China REAL ESTATE 44 Tianjin grade A office market OLYMPIC MOMENT 48 The Olympic village JOB POSTINGS 50 CHAMBERS REPORT 51 EU, Denmark, Germany Sweden, Benelux, US, Korea BUSINESS CHINESE LESSON 64 18 The factory visit TRANSPORTATION 67 Plane, train, shuttle and metro schedules and fares LISTINGS 72 Dining, nightlife, services LAST WORD 82 Expat show Beijing 34 12 02May. 2008|Business Tianjin BIZ BRIEFS FINANCE on the Growth Enterprise Market, Cooking oil price rise gets nod sells and distributes piped gas to resi- Still room for interest rate hikes dential and industrial customers in China has room to increase interest Tianjin. rates and banks' reserve requirements - South China Morning Post, 22 March to cool the world's fastest-growing major economy, central bank Gov- BOC reports 31% earnings despite ernor Zhou Xiaochuan said at the 1.3b USD in provisions National People's Congress on 16 March. The central bank raised lend- Cooking oil prices could stay high ing and deposit rates six times in after the government cleared a major 2007, resulting in the current 7.47% oil producer to raise its prices. The deposit rate, a nine-year high. National Development and Reform - Bloomberg.com, 18 March Commission said on its website it ap- proved Kerry Oils and Grains on 2 2nd China International Private April to lift the price of its cooking oil. Equity Forum will be held in Tianjin - China Daily, 2 April Jointly-held by relevant institutions Bank of China, China's third-largest from home and abroad, the 2nd lender, set aside 1.3 billion USD to Deal allows mainland insurers to China International Private Equity cover subprime-related investments invest in HK Forum will be held in Tianjin in last year but still reported 31.3% Mainland insurers will be encouraged June. “Capital Connection” will be growth in earnings. Net profit at the to set up asset management firms the highlight and core of this forum bank rose to 56.25 billion CNY last in Hong Kong to invest in stocks designed to help enterprises contact year, compared with 42.83 billion and bonds after regulators signed a many private equity funds in a short CNY in 2006. landmark agreement on 27 March. time. - South China Morning Post, 26 March Analysts say the agreement will boost - Xinhua Net, 19 March the return of mainland insurers such 10% growth for China's economy in as China Pacific Insurance and China Pension fund to double 2008 Re, which face slowing investment re- China's national pension fund will The Asian Development Bank report- turns at home, and will help support double to more than 1 trillion CNY ed that it expects China's economy the flagging Hong Kong stock market (about 143 billion USD) by the to grow by 10% in 2008 and 9.8% and fund industry. end of 2010, with more investment in 2009; China's economy grew by - South China Morning Post, 28 March in finance, transport and energy 11.4% in 2007. The bank said that sectors. Dai Xianglong, chairman tighter monetary policy and slow- Banks told to reduce foreign debt of the National Council for Social ing imports would put pressure on China's State Administration of For- Security Fund, said China would growth, and highlighted the inflation- eign Exchange has cut banks' short- continue to follow a prudent, ary risk of rising food prices. term foreign-debt quotas to ensure long-term and value-oriented - Xinhua Net, 3 April financial stability in the face of rising investment strategy for the National speculative capital inflows. The new Social Security Fund. CNY rises to high against USD requirement will have a greater ef- - CRI English, 15 April The Renminbi has strengthened fect on foreign lenders than domestic beyond seven to the dollar for the ones, as foreign banks in China have Tianjin Tianlian eyes parent firm's first time since 1994 as China’s higher overseas debt holdings and assets economic growth speeds on un- lower depositor bases than their do- Tianjin Tianlian Public Utilities plans der inflationary pressure. On 10 mestic counterparts. to raise 4-5 billion CNY in the next April, the currency appreciated to - Quamnet.com, 16 April three years to fund the purchase of RMB6.9910 to the dollar in the first the remaining assets of parent com- hour of trading, from a close of pany Tianjin Gas, Chairman Sun RMB7.0017 on 9 April. Boquan said. The firm, which is listed - Financial Times, 10 April 04May. 2008|Business Tianjin BIZ BRIEFS LAW & POLICY part of a nationwide campaign in the Securities rules ease for foreign run-up to the Olympics. investors Multiple-entry visas barred until - China Daily, 14 April Foreign investors who participate after Olympics in China’s Qualified Foreign China may IPR guidelines approved Institutional Investors program can have stopped The State Council approved new expect regulators to ease restrictions issuing multi- guidelines to promote innovation on securities deals by extending ple-entry visas and the use of new technologies by capital injection periods and allowing for foreign- China's industries. The guidelines on foreign currency accounts, the ers because the national strategy of intellectual deputy administrator of the State of the Beijing Olympics in August. property rights, drafted by the State Administration of Foreign Exchange, Visa agents in Hong Kong, citing Intellectual Property Office and other Li Dongrong, said 8 April. statements from the SAR's China relevant government departments, - Cai Jing, 11 April visa office, said that multiple-entry were approved at an executive meet- visas, popular among foreign busi- ing of the State Council presided over ness travelers, would be barred until by Premier Wen Jiabao. after the games in favor of single- and - China Daily, 10 April double-entry visas. The ban report- edly applies to business F-visas, tour- ist L-visas, and equally to all travelers regardless of nationality. - The Wall Street Journal, 9 April Heavy fines for improper public energy use Government organizations may have to pay a fine from 100,000 to 300,000 CNY for setting air conditioners be- low 26°C in public infrastructures, as summer is on the way, the Beijing Times reported on 8 April.