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ANNUAL REPORT 2014 German Chamber of Commerce in China Support. Facilitate. Represent. Inform. North China Shanghai South & Southwest China Shanghai SUPPORT. FACILITATE. INFORM. REPRESENT. We help you make the right moves. German Chamber of Commerce in China • North China German Chamber of Commerce in China • Shanghai German Chamber of Commerce in China • South & Southwest China Landmark Tower 2, Unit 0818 8 North Dongsanhuan Road, Chaoyang District, Bejing 100004 Tel. +86 10 6539 6688 [email protected] 25 F, China Fortune Tower 1568 Century Avenue Pudong District, Shanghai 200122 Tel. +86 21 5081 2266 [email protected] Room 1903, Leatop Plaza 32 Zhu Jiang East Road Tianhe District, Guangzhou 510620 Tel. +86 20 8755 2353 [email protected] content 4 Foreword 5 German Chamber of Commerce in China 6 About Us 7 Interviews with the Chairmen 10 Chamber Boards and Chamber Teams 13 Membership 14 Membership Benefits and Services 18 Membership Statistics 20 Financials 21 GCC in the Press 22 GCC in the Press 25 Economic Review and Outlook 26 Economic Review and Outlook 28 Regional Trends 29 Chamber Activities 30 Events Overview 2014 32 Business Events: Chamber Meetings 36 Business Events: 20 Years Anniversary 38 Business Events: Workshops 51 Business Events: Working Groups in Taicang 55 Taicang Office Opening 56 Social Events 58 17th German Ball 60 Events Neighbouring Provinces 63 Social Responsibility 64 Special Events 69 Imprint FOREWORD Foreword Dear members and partners of the German Chamber of Commerce in China, Another productive year has come to an end, and with this annual report we wish to summarize the events and accomplishments of 2014. Business expansion remains a major concern for many of our members. The German Chamber of Commerce endeavors to create a variety of networking platforms to give them the opportunity to meet other members and potential new business partners in a mostly casual setting. The social event highlights in North and East China in 2014 were the German balls, which were themed “Tanz in der Manege” in Beijing and “Der Blaue Engel” in Shanghai and the two soccer tournaments in Beijing and Tianjin. In May, Shanghai celebrated its 20 th anniversary with a special event. Over 400 guests attended, and a commemorative publication for members and friends summarizing the work and development of the Chamber during the past 20 years was published. We now support a total of nearly 2500 members in China. All over the regions the German Chamber of Commerce is aiming to further spread its services and opened a new office in Taicang to support the strong German business community there. A high-ranking visit to the Southwest was paid in July by Federal Chancellor Dr. Angela Merkel who held the opening speech at the China (Chengdu) - German New Urbanization Cooperation Forum. The forum highlighted the growing influence of German companies in China’s Western provinces and the potential of this region. In South & Southwest China the Oktoberfests were successfully held in Chengdu, Chongqing, Guangzhou and Shenzhen, attracting more than 10,000 visitors. One of the biggest changes this year was the implementation of a new membership concept in all regional chapters of the Chamber. The new concept allows more of each member company’s employees to benefit from GCC’s services. New regional statutes were introduced in South & Southwest and revised statutes were implemented in Beijing and Shanghai to clarify the structure and aims of the Chamber. Both the statutes and the membership concept received majority support from our members during the extraordinary General Meetings. Providing our members with information through business roundtables, workshops and seminars has continued to be one of the German Chamber’s main objectives. In Beijing, the Chamber’s key events included two banquets in honor of the German ambassador to China Mr. Michael Clauss and the Chinese ambassador to Germany Mr. Shi Mingde. Two new roundtable series were launched in Beijing to give insight into HR and real estate, while in Shanghai two new workshop series – “Construction & Building Operation” and “Information Technology“ – as well as five new working groups in Taicang and workshops in Chinese language were added to the Chamber’s range of offerings. The Chamber also aims to share the newest information about developments in the Chinese market and the overall business environment in China with our members. We therefore conducted the 5th national business confidence survey in 2014, the results of which were presented to German and Chinese media representatives in Beijing and Shanghai. We also conducted the 3rd wage and salary survey and organized a series of HR roundtables around China to present the survey’s results to members and partners of the German Chamber. In 2015 the German Chamber of Commerce in China will continue to provide high-quality services and support for our members. We further strive to cater to their needs and assist them in growing their business in China. Yours truly, Alexandra Voss Executive Director and Board Member GCC • North China 4 Annual Report 2014 Simone Pohl Executive Director and Board Member GCC • Shanghai Oliver Regner Executive Director and Board Member GCC • South & Southwest China German Chamber of Commerce in China 2014 marked another dynamic year for the German Chamber of Commerce in China. Again, German and international companies actively benefited from our services and we continued to grow and develop across China. The Year of the Horse was very exciting and we are all looking forward to achieving an even better Year of the Goat with and for our members. Annual Report 2014 5 About Us german Chamber of Commerce in China AHK Greater China is the key supporter of German foreign business development in China, working on behalf of the government of the Federal Republic of Germany. With offices in Beijing, Tianjin, Shanghai, Taicang, Guangzhou, Shenzhen, Chengdu, Hong Kong and Taipei, it represents German business interests in China and advocates Sino-German business cooperation. The first office in the Greater China Region was established in 1981 in Taipei. Since 1994 AHK Greater China has been active in Mainland China. Membership Development of the German Chamber of Commerce in China (2006-2014) 2,454 2,224 2,047 1,675 1,477 1,300 2006 2007 2008 1,753 1,867 2486 Official representation The Delegations of German Industr y and Commerce are the most important partners of the German Federal Ministr y of Economics and Technology in terms of promot ion of Ger ma n bu si ness i n Greater C h i na. Together with Germany’s missions abroad (embassy and consulates) the Delegations officially represent the interests of Germany’s industry and commerce towards political and administrative authorities in China. Member organization The German Chamber of Commerce in China is the official member organization of German companies in China. By providing up-to-date market information and practical advice the German Chamber helps its 2009 2010 2011 2012 2013 2014 members to succeed in China. It offers a platform for the Sino-German business community and represents its members' interests towards stakeholders including government bodies and the public. The Chamber was founded in 1999 and currently has more than 2400 members in mainland China. Service provider The service provider of the network of German Chambers of Commerce (AHK) in Greater China supports companies with their market entry and business development in China and Germany. Under the brand DEinternational it provides business services which encompass all aspects of the market entry process. These include market research and business partner search, company establishment and patent registration, recruitment and training, as well as PR and marketing support. 6 Annual Report 2014 interviews german Chamber of Commerce in China How would you summarize the year 2014 in a few words? The year 2014 saw a further strengthening of the good relationship that China and Germany have developed over the last decades. Leaders of our countries paid a number of political visits to each other. President Xi paid a visit to Germany in March and German Chancellor Merkel visited the West of China for the first time, holding the opening speech at the China – German New Urbanization Cooperation Forum in Chengdu on 6th July. The participation and contribution to this event was one of my personal highlights this year. In October Li Keqiang travelled to Germany on the occasion of the 3rd Chinese-German inter-governmental consultations in Berlin. The latter resulted in an overarching action plan aimed to foster innovation in both countries. German companies have contributed enormously to the innovation progress in China in 2014, by establishing research locally and providing insight to advance certain industries. What do you think have been the German Chamber's most notable accomplishments in China this year? In 2014 we conducted the fifth national Business Confidence Survey (BCS) and the third Wage and Salary Survey. On 19th June the results of the BCS were presented to nearly 70 German and Chinese media representatives at the press conferences in Beijing and Shanghai. Later in the year new statutes and a simplified new membership concept were adopted in all of our three Mainland chapters. In North China we welcomed nearly 70 new members in 2014, and now support almost 560 companies. We offered more than 180 events, attracting up to 6.500 participants and introduced new HR and Real Estate roundtables. Mr. Lothar Herrmann Chairman GCC • North China What developments – in China or in the Chamber – were you most pleased with in 2014? Would you like to see any changes come about in 2015? The economy in China is undergoing a transition from a high growth period to a period of more moderate growth. I’m pleased that policy makers have refrained from introducing any significant stimulus programs and accepted more moderate growth rates, knowing that the official growth target of 7.5% for 2014 will likely be missed. Although at the first sight it might seem disappointing that the growth rates are decreasing, it is a positive sign for the implementation of the future reforms. China has recognized the need for a more sustainable economic growth. In 2015 I would like to see an economic upgrading process whereby China moves up the value chain by investing more in technology and innovation. This will bring new business opportunities also for German companies in China. What would you say your region of China has to offer to German companies in 2015? What would you say to Chinese government officials about what German companies can offer to their region? According to the findings of our recent Business Confidence Survey, Beijing remains a top 3 destination for new investment. The capital offers proximity to decision makers and political stakeholders. Outside of Beijing, Shenyang in particular has become a center for German investment in the Northern provinces. The city attracts companies with investment incentives, well-developed infrastructure, a big, yet unsaturated market and lower labor costs. When asked about benefits German companies can offer to certain zones, I refer to social work ethics, jobs with lucrative perks and promising career opportunities they offer. Once companies from the machinery or automotive industries settle in an area, they attract further investment from their suppliers and service providers, creating more jobs and stimulating local growth. They also provide the potential to cooperate with Chinese companies, exchange know how and develop the area of activity together. What is your most ambitious goal for 2015? I actually set several goals for 2015. Firstly, I would like to improve the collaboration between the chamber chapters throughout China, with the aim to upgrade the level of services for our members. Secondly, I plan to increase the participation in our regularly held “Stammtisch” and establish the event as one of the most interesting networking opportunities. I also commit myself to continue working on opening up the possibility for membership to Chinese companies. However, the most ambitious goal will remain to support German enterprises, especially small and medium sized keeping and improving their market position in China, by lobbying for fair, transparent and compliant market conditions. Annual Report 2014 7 with the german Chamber of Commerce in China How would you summarize the year 2014 in a few words? From a Chamber perspective, it has been a challenging but successful year. Mr. Titus Freiherr von dem Bongart Chairman GCC • Shanghai What do you think have been the German Chamber's most notable accomplishments in China this year? First, being without a Delegate/ Managing Director for almost half a year has put a lot of strain on the Chamber, and it speaks for the high level of engagement of the team that this did not impact the Chamber’s member communication and services. Second, this year we celebrated our 20th anniversary, completed the modernization of our statutes – which concluded a process lasting for more than two years –, introduced a new membership concept and opened a new Chamber office in Taicang. What developments – in China or in the Chamber – were you most pleased with in 2014? Would you like to see any changes come about in 2015? With regard to the above changes of statutes, we were very happy to see such a high level of commitment for the chamber among our members. For 2015, we have new projects in the pipeline – please stay tuned. However, one thing I also want to mention is that without the great commitment of all board members, our past accomplishments would not have materialized, nor would we be able to push for future improvements. What would you say your region of China has to offer to German companies in 2015? What would you say to Chinese government officials about what German companies can offer to their region? I believe that the Yangtze Delta region offers an excellent combination of a robust market for the products and services of German companies, a highly functional infrastructure, and a big pool of talents. In addition, cities like Shanghai, Suzhou, Wuxi, Taicang, Kunshan and Hangzhou have become “home” for many German expat families, which is not least due to the hospitality of our Chinese hosts here. On the other side, I am also convinced that German companies bring a unique background of high quality technology, excellent education and development opportunities for local staff, an extraordinary level of commitment for China. What is your most ambitious goal for 2015? As we have already mentioned in previous years, connectivity with our members is a continuous priority for the Chamber and, in this regard, we want to proactively reach out and initiate/strengthen the dialogue. 8 Annual Report 2014 2013 chairmen german Chamber of Commerce in China How would you summarize the year 2014 in a few words? 2014 was a very interesting and challenging year in China. We feel the changes inside the business environment as well as from the political side. There is an ongoing transition from an economy based on cheap labor towards an economy focusing on high tech. We also saw how important the relationship between Germany and China is being taken from both sides. In the South & Southwest of China we were privileged by many high level visits this year, including Federal Chancellor Merkel in Chengdu and Bavarian Minister President Seehofer in Guangzhou and Shenzhen. Mr. Stefan Rosenbohm Chairman GCC • South & Southwest China What do you think have been the German Chamber's most notable accomplishments in China this year? We had a big change in our Chamber team in South China. I appreciate that each member of the chamber staff quickly grew into their responsibilities and provides very good services for our members. They specifically arranged a very interesting and professionally managed range of events. Another important project was the successful implementation of our new regional statutes. What developments – in China or in the Chamber – were you most pleased with in 2014? Would you like to see any changes come about in 2015? I’m very happy to see all the activities of our members under the umbrella of the chamber, for example the manufacturing working group or the self managed training concept “member for member training”. Also the activities to set up an education program for blue collar workers are a very good initiative and I hope we can expand these activities to more topics and have more companies involved. What would you say your region of China has to offer to German companies in 2015? What would you say to Chinese government officials about what German companies can offer to their region? The Pearl River Delta is still one of the best places in the world for mass production. With an excellent supply chain, world class logistics and a huge base of technical resources, this area is still first choice for nearly all kinds of consumer products, satisfying exports as well as the domestic markets. Even though prices are increasing more and more. But we see also new areas, such as the automotive industry which delivers a lot of new opportunities for German companies. China is going green and this trend brings a lot of interesting approaches for German companies’ activities as well. Germany is one of the most demanding markets for high tech, automotive and environment protection concepts and German companies want to bring their expertise and experiences to China to support the development of the region. What is your most ambitious goal for 2015? I will tr y to spend more time in the community to understand more about the challenges we are facing in our region. I am also hoping to further improve the services and events we offer for our members. Annual Report 2014 9 german Chamber of Commerce in China north China Chamber Board Mr. Lothar Herrmann* Chairman Siemens Limited China President and CEO Mr. Martin Broda Treasurer Commerzbank AG Beijing Branch General Manager Mr. Jörg Müller Volkswagen Group China Executive Vice President Ms. Alexandra Voss* GCC | North China Executive Director Delegation of German Industry & Commerce Beijing Delegate and Chief Representative Mr. Karsten Engel BMW Group Region China President and CEO Mr. Kay Popken Lufthansa German Airlines Managing Director Strategy and Development China Mr. Stephan Luerssen Vice Chairman Bitzer Refrigeration Technology (China) Co., Ltd. Managing Director Mr. Xingliang Feng NRW.INVEST China/Beijing Executive Chief Representative Ms. Susanne Rademacher Beiten Burkhardt Rechtsanwaltsgesellschaft mbH Partner and Chief Representative Beijing *GCC All-China Board Member Chamber Team 10 Annual Report 2014 10 2013 Mr. Sebastian Suciu Ms. Corinna Schlapps Mr. Björn Lindemann Executive Chamber Manager +86-10-6539-6660 [email protected] Project Manager Beijing +86-10-6539-6664 [email protected] Regional Manager Tianjin and North China +86-22-8787-9249 [email protected] Ms. Jana Kumpf Ms. QI Cuiyun Regional Manager Beijing +86-10-6539-6661 [email protected] Chamber Assistant Beijing +86-10-6539-6662 [email protected] Ms. ZHANG Xiaolei (until 12/2014) Ms. Sarah Chen Mr. Max J. Zenglein Ms. WANG Min Senior Events Manager +86-10-6539-6663 [email protected] Economic Analyst China +86-10-6539-6665 [email protected] Project Manager Tianjin +86-22-8787-9249 [email protected] Project Manager Tianjin +86-22-8787-9249 [email protected] german Chamber of Commerce in China Shanghai Chamber Board Mr. Titus Freiherr von dem Bongart* Chairman Ernst & Young (China) Advisory Ltd. Partner and Head of GBN Greater China, ASEAN & Korea Mr. Andreas Odrian Treasurer Deutsche Bank (China) Co., Ltd. Director and Head of Corporate Banking and Coverage, MNC Mr. Bernd Reitmeier Startup Factory (Kunshan) Co., Ltd. General Manager Mr. Jan Noether* (Until July 2014) GCC | Shanghai Executive Director Delegation of German Industry & Commerce Shanghai Delegate and Chief Representative Mr. Peter Legner Schenck Shanghai Machinery Corp., Ltd. President & CEO Ms. Bettina Schoen Freudenberg Management (Shanghai) Co., Ltd. General Manager Mr. Christoph Angerbauer* (From August 2014 until January 2015) GCC | Shanghai Acting Executive Director Delegation of German Industry & Commerce Shanghai Acting Delegate Ms. Mingming Liu Voith Corporate Management (Shanghai) Co., Ltd. Executive Representative Member of Voith Paper Board Ms. Brigitte Wolff PwC Strategy& Director Mr. Rolf H. Köhler Vice Chairman CanadAsia Management – Development (Shanghai) Co., Ltd. Director *GCC All-China Board Member Chamber Team Ms. Petra Kreuder Ms. LI Yandi Ms. XIAO Liewen Executive Chamber Manager +86-21-5081-2266 Ext. 1605 [email protected] Senior Project Manager +86-21-5081-2266 Ext. 1609 [email protected] Project Manager Membership Administration +86-21-5081-2266 Ext. 1850 [email protected] Ms. JIANG Qi Ms. Pauline Beitenger Mr. Ulf Schneider Junior Project ManagerMembership Administration +86-21-5081-2266 Ext 1644 [email protected] Project Manager Shanghai +86-21-5081-2266 Ext. 1871 [email protected] Regional Manager +86-21-5081-2266 Ext. 1656 [email protected] Ms. Verena Simon Ms. CHEN Zhixuan Project Manager focus Marketing & Special Projects +86-21-5081-2266 Ext.1630 [email protected] Junior Project Manager +86-21-5081-2266 Ext. 1650 [email protected] Ms. Olivia Helvadjian Ms. Caitlin Waggoner Ms. Dr. Annika Beifuss Communications Manager & Chief Editor German Chamber Ticker +86-21-5081-2266 Ext. 1637 [email protected] Editor German Chamber Ticker +86-21-5081-2266 Ext. 1675 [email protected] Communications Project Manager +86-21-50812266 Ext 1859 [email protected] * GCC All-China Board Member 11 Annual Report 2014 11 german Chamber of Commerce in China South & Southwest china Chamber Board Mr. Stefan Rosenbohm* Chairman Shenzhen Giesecke & Devrient System Co. Ltd. General Manager Mr. Frank Jäger The Cable Assembler Ltd. CEO & Owner Mr. Oliver Regner* GCC | South & Southwest China Executive Director Delegation of German Industry & Commerce Guangzhou Delegate and Chief Representative Mr. Gerd Kaarow Metz Connect Zhongshan Ltd. General Manager Greater China Mr. Peter Nestmann Treasurer Little Fat Fish Holdings Limited (Hong Kong) Managing Director Mr. Rüdiger W. Kümmerle Rhea & Partner International Holdings Ltd. CEO *GCC All-China Board Member Chamber Team Ms. Fabienne Privat Ms. Astrid Schröter Executive Chamber Manager +86-20-8755-2353 Ext. 203 [email protected] Liaison Manager Sichuan-Chongqing +86-28-8533-6840 [email protected] Mr. LEE Chihang Regional Manager Shenzhen & West PRD +86-755-8635-0487 [email protected] 12 Annual Report 2014 2013 Membership The German Chamber of Commerce in China aims to provide valuable first-hand information as well as benefits to support and expand the business of our member companies. With 2486 members across China in 2014 the Chamber continued to grow and our member companies trust us as a partner in various aspects of Sino-German business relations. Many of our member companies joined the GCC on the day of its foundation and have continued to support our activities and development over the past years. Our long-term as well as our newer members contribute greatly to the success of the GCC. Annual Report 2014 13 benefits Membership Membership Benefits • Free profile entry in our Membership Directory, a listing of all members in China that is published annually • Free delivery of the Membership Directory • Free profile entry in the German Company Directory (GCD), the online index of German companies in China and free access to the Directory • Free delivery of the member magazine 'German Chamber Ticker’ and the possibility to publish 'member news' in the magazine free of charge • Free posting of your company details under the 'New Member's' section of our website for two months and free listing as a new member in the GC Ticker • Reduced member rates for our events in North China, Shanghai and the neighboring provinces as well as South & Southwest China • Reduced member rates for training courses offered by the GIC training departments • Up to 15% discount for advertisement in the ‘German Chamber Ticker’ magazine and Membership Directory • Up to 30% discount for advertisement on the AHK Greater China homepage and online job market postings • Access to our 'Benefit Program’ that grants discounted rates when you present your membership card at partner hotels, restaurants, hospitals etc. • Advantages for German Business Visa Application Services for Members NORTH CHINA 2015 Firmenname German Chamber of Commerce in China Shanghai Mr. Xyz Mustermann Events The German Chamber of Commerce in China hosts a huge variety of business and social events every year to provide our members with the opportunity to meet potential business partners and to exchange first-hand professional information. Our focus is on seminars, roundtables, chamber meetings and conferences on current changes in the business environment as well as networking and other social events. SHANGHAI 2015 MEMBERSHIP NO. SH 1234 MEMBERSHIP TYPE MEDIUM CORPORATE VALID UNTIL FEB. 2016 Firmenname German Chamber of Commerce in China Shanghai Mr. Xyz Mustermann MK 2015_final.indd 3 14-11-18 下午2:15 MEMBERSHIP NO. SH 1234 MEMBERSHIP TYPE MEDIUM CORPORATE SOUTH AND SOUTHWEST CHINA VALID UNTIL FEB. 2016 2015 Firmenname German Chamber of CommerceMK 2015_final.indd in China Shanghai Mr. Xyz Mustermann 1 14-11-18 下午2:14 MEMBERSHIP NO. SH 1234 MEMBERSHIP TYPE MEDIUM CORPORATE VALID UNTIL FEB. 2016 MK 2015_final.indd 5 Membership Cards 14-11-18 下午2:15 Membership Card & Benefit Program German Chamber members benefit from discounts at various Chamber events. Moreover, our Benefit Program provides membership card holders with discounts of up to 25% at many hotels, restaurants, hospitals and other businesses across China. Newsletter & Mailings The regular Newsletter of the GCC provides its members with the latest news about the Chamber, its partners and the market. In addition, regular mailings update the recipients with an event guide for the region. Visa Benefits Chamber members enjoy advantages in German business visa application for Chinese employees. They can submit visa application documents at the GIC Visa Department without making an appointment in advance. German Company Directory (www.german-company-directory.com) Our members enjoy year-round free access to the official database of German companies in China, within a pool of over 5,000 entries classified in several categories. This extensive resource is well organized and easy to use. Homepage German Company Directory 14 Annual Report 2014 Homepage (www.china.ahk.de) Counting 60.000 visits and over 100.000 pageviews every month, our homepage is the largest Sino-German online business platform. It is a joint project of all German Chamber chapters in Mainland China and Hong Kong and offers up-to-date market information and facts about the membership as well as events in the Greater China region. Furthermore, it provides access to our publications. Our members can download presentations, browse through pictures of past events and register for upcoming seminars or workshops. Job Market (www.jobmarket.china.ahk.de) DE Job Market is an efficient source for domestic as well as international talent and the preeminent platform for reaching professionals with a German background. Over 500 German companies advertise nearly 700 open job positions and internships annually. Nearly 1,000 professional candidates are registered in the resume database of the platform. German Chamber members benefit from special prices for job advertisements. and services Membership Publications Membership Directory The Membership Directory of the German Chamber of Commerce in China provides an in-depth view into the who's who of German companies in China and includes: • the profiles of more than 2,200 of our member companies • 10+ pages of useful contacts in China • special index in front with colored company logos • 4 different indices to search for companies, member names, cities and business classifications Publication Period Yearly (November) LanguageEnglish/Chinese Print-Run 3,000, All-China Pages 1,000+ Price RMB 1,200 (non-members),  RMB 600 (members) Readership Up to 3,500 Distribution Direct Mailing The Membership Directory will be of great benefit to anybody dealing with SinoGerman business operations in China. On top of that, it is a vital source of information on the members of the German Chamber of Commerce in China, making the network of the Chamber tangible and accessible for the reader. A must for decision-makers from the German community in China. Readership The Membership Directory is popular among German, international and local business people seeking German business partners. German Chamber Ticker German Chamber Ticker is a free bi-monthly business magazine published by the German Chamber of Commerce in Mainland China. Its cover stories and business articles deal with current economic and social topics and provide a deeper look into different industries. Furthermore, German Chamber Ticker features interviews with high-ranking business professionals and reveals the latest news about the German and international business community in Mainland China. Distributed to all members and partners of the German Chamber of Commerce in China, German Chamber Ticker is the ideal way to reach decision makers. Flexible advertising options allow both small and large businesses to access a diverse international readership. Readership With a total circulation of its printed version of around 16,500 copies as well as the frequent monthly downloads of its online version, each issue reaches over 25,000 readers. Distribution Our main distribution channel is direct mailing to our members. Around 4,000 copies are additionally displayed at Chamber event venues and key locations throughout Beijing, Tianjin, Shanghai, Hangzhou, Suzhou and South & Southwest China. Furthermore, around 6,000 copies of each German Chamber Ticker issue can be found on Lufthansa flights from China to Germany German Chamber Ticker Mobile! The full version of the magazine can be read on and downloaded from the German Chamber website: www.china.ahk.de/germanchamberticker. Additionally, with the GCTicker app for Ipad, tablets and smart phones runnning iOS and Android, readers can enjoy the full content of each magazine on the go. Publication Period Bi-monthly LanguageEnglish Print run 16,500, Mainland China Pages 90+ Price Free of charge ReadershipOver 25,000  (5% Chinese, 15% expats,  35% Germans general,  45% German business) Distribution Direct mailing,  website (2,500 downloads/month),  app, Lufthansa Flights  and selected locations in Shanghai Android Apple Annual Report 2014 15 GCC Surveys Membership Business Confidence Survey 2014 Strong Foundation and Future Perspectives The German Chamber Business Confidence Survey has been conducted annually Surveyed Companies: 2,400 since 2011. It is a key gauge measuring business sentiment of German companies Response Rate: 17.4 % operating in China. As of 2014 the German Chamber in China has over 2400 Survey MethodOnline member companies representing about 50% of German business in the country. The survey was conducted online between 12th May and 6th June 2014 among our member companies. This time period Figure 2: Industry Segments was specifically chosen to allow for sufficient time for companies Question: What is your main industry? to develop their business sentiment for the remainder of 2014. In 26.4%  Machinery/Industrial Equipment total the survey comprises of 29 questions, focusing on market 14.3% Automotive conditions, investment plans, and business performance. This year 9.0% Consulting/Legal Services a total of 417 companies participated in the survey. It should be 6.0% Chemicals noted that the survey focuses on the opinions of individual local 6.0% Electronics 5.3% Plastic/Metal Products operations of German companies in China. Survey Duration 12th May – 6th June 2014 4.6% 4.3% 3.4% 3.1% 3.0% 2.8% 1.8% 1.4% 1.1% 0.2% 7.3% 0% Finance/Insurance Construction Consumer Goods IT/Telecommunications Logistics Medical Supplies Environmental Products/Services Aerospace Tourism Pharmaceuticals Other 5% 10% 15% 20% 25% Despite challenging conditions and an increased cautiousness, China retains its status as the most significant market worldwide for companies from Germany. German firms particularly identify productivity improvements as a major factor to achieving business objectives and therefore expect higher sales and increased profits. Additionally they want to retain last year’s high investment level in China despite indications that Chinese competition is significantly increasing. Challenges with regard to human resources as well as internet restrictions remain the most urgent problem in the Middle Kingdom, but with a slightly positive change. 30% Top 10 business challenges Question: Please evaluate your current business challenges. Increasing labor costs Finding qualified staff 75.2% 80.9% 82.0% 74.1% 78.2% 83.1% Retaining qualified staff 67.2% 69.1% 74.8%  Bureaucracy/ administrative hurdles 58.7% 58.5% 64.6% Corruption 49.1% 54.5% 56%  Protection of intellectual property Increasing commodity & energy prices  Slow internet speed Preferential treatment of local companies Domestic protectionism 57.7% 51.9% 41.2% 54.5% 51.5% 51.7% 2013 59.1% 49.5% 50.4% 50.2% 45.2% 48.5% 2012 56.1% 47.2% 50.2% 0% 16 Annual Report 2014 2014 10% 20% 30% 40% 50% 60% 70% 80% 90% Membership WAGE AND SALARY SURVEY 2014 Slowdown of Wage Increases Human resource related issues continue to be among the biggest challenges for German companies in China. Labor costs have been rapidly increasing, and companies continue to struggle to find and retain qualified staff. Though there have been slight improvements over previous years, more than two thirds of German companies report that human resource issues are their most pressing challenges. As the economy develops, China’s labor market too is in need of transformation. China is shifting from a low-cost manufacturing hub into a far more sophisticated economy with an emphasis on services and domestic demand. In some labor-intensive industries China has already lost its competitive edge. Its new growth model depends more on a skilled workforce than on an abundant supply for cheap, unskilled labor. Survey Duration 25th August  – 26th September 2014 Surveyed Companies 2,800 Response Rate 12.7% Survey Method mixed (online, email) Average Wage Increases by Region (in %) blue collar North East This year, the German Chamber of Commerce conducted its survey on wage developments at German companies in China for the 7th time. The extensive survey was conducted between 25th August and 26th September 2014. It covers wage developments in 36 job categories, and includes questions ranging from turnover rates and productivity to the employment conditions of foreigners. This year a total of 356 companies participated in the survey, an increase of 24% compared to the previous year. The results of the survey are part of the Labor Market and Wage Report 2014/2015, which provides both information on the current situation of German companies and an overview of general market conditions in China. white collar South 10% 8% 6% 4% 2% 0 National Shanghai Other Beijing Other GZ/SZ Other Productivity Drivers 2013 2014 100% 90％ 80% 70％ 60% 50％ 40% 30％ 20% 10％ 0 Improved internal processes Better internal training Overall better job experience Improved retention Increased automation Improved general education Annual Report 2014 17 Membership development statistics Membership development 2011-2014 2011 2012 2013 2014 North China Members 600 540 559 490 432 500 400 289 291 290 282 300 200 100 2 0 5 12 82 16 Wholly Principal 9000 125 169 184 Wholly Principal 6000 Single Principal 29 30 15 18 26 31 41 44 Additional Member Private Member 4 13 15 8 Special Member Total Shanghai Members 1604 1603 1452 1356 1750 1500 1250 1000 778 831 750 400 432 500 250 0 936 932 470 475 49 43 41 39 29 24 24 22 Wholly Principal 9000 Wholly Principal 6000 Single Principal Additional Member 65 83 86 88 Private Member 28 29 32 32 7 Special Member 10 14 16 Young Leaders Total South & Southwest China Members 350 300 250 225 239 256 282 259 268 323 311 200 150 100 50 11 15 18 15 23 26 13 18 10 10 14 14 Additional Member Private Member Special Member 0 Single Principal 18 Annual Report 2014 Total Membership regional distribution Regional Membership Distribution North China Shanghai South & Southwest China Beijing 419 Shanghai1147 Guangzhou Region (Guangzhou, Foshan) 119 Tianjin 71 Taicang77 Dongguan20 Liaoning 34 Suzhou76 Shenzhen Region (Shenzhen, Hong Kong) 107 Jilin 13 Kunshan43 Southwest China (Chengdu, Chongqing) 36 Shandong 17 Zhejiang  Western PRD (Zhuhai, Zhongshan etc.) 26 Others 5 Shandong  55 6 Others15 Others200 Total559 Total1604 Jilin Total  323 Liaoning Beijing Tianjin Hebei Shaanxi Qingdao Jinan Shandong Jiangsu Henan Suzhou Sichuan Chongqing Hubei Kunshan Shanghai Anhui Taicang Zhejiang Chengdu Fujian Guizhou Yunnan Guangxi West Pearl River Delta Guangzhou Foshan Dongguan Shenzhen Annual Report 2014 19 Membership financials Allocation of Expenses 2014 General Expenses and Administration ¥ 14,936,854 Publications ¥ 1,723,097 Events ¥ 5,151,300 4% 23% 66% Other  ¥ 850,816 7% Total  ¥ 22,662,067 Revenue Distribution 2014 Membership Fees  ¥ 9,253,052 Other  ¥ 2,679,613 Events  ¥ 6,023,802 Publications  ¥ 2,549,682 Yearly Sponsorships  ¥ 1,914,607 12% 27% 41% 11% Total  20 Annual Report 2014 ¥ 22,420,756 9% GCC in the Press Extensive press work is one of the German Chamber of Commerce’s methods to advocate for the interests of German business in China. We put efforts into increasing awareness of our Chamber’s activities and further fostering a positive image of German companies in China. In addition to the general press work, the German Chamber of Commerce conducts and publishes studies to support our members in the development of their businesses and to help reveal challenges and concerns of German enterprises in China. Annual Report 2014 21 GCC in the Press GCC in the In 2014, the German Chamber of Commerce once again successf ully leveraged local and inter national media in order to increase and strengthen the public voice of German business in China. We articulated the pressing issues of German companies, provided statements about major events, and cultivated press relationships which allowed us to communicate the importance of Sino-German economic relations. Last year was marked by a number of important events, such as visits of President Xi to Germany and Chancellor Merkel to C h i na , a s we l l a s t he 3 r d Si no-Ger ma n Gover n menta l Consultations in Berlin. In addition, the revision of the Foreign Investment Catalogue and the Fourth Plenum of the 18 th Party Congress shaped Sino-German business relations. All these events drew signif icant attention to our organization from foreign and local media. During 2014 we generated nearly 180 pieces of news about SinoGerman events and their impact on the economic rela- tionship between the two countries. We also released updates about our organization and its activities. Media platforms and channels such as A R D, CC T V, China Daily, Die Welt, Handelsblat t, Phoenix T V, The Economist and many more published and broadcasted our quotes, contributions, reports and interviews in English, Chinese and German. In June we presented the findings of the yearly Business Confidence Survey (BCS) to nearly 70 journalists at two press conferences in Beijing and Shanghai. The survey is one of the most relevant tools we use to examine the pressing concerns of German enterprises in China, which we communicate to stakeholders and the media. The outcomes of the survey were highly anticipated and well received. In 2015 we will continue spreading key messages for maximum impact within the target group. 22 Annual Report 2014 Press GCC in the Press interview excerpts Excerpt of the interview with Christoph Angerbauer (acting Delegate) for China Contact on the Shanghai Pilot Free Trade Zone (November 2014, DE) Ein Jahr nach der Gründung der Shanghai Pilot Free Trade Zone sollen nun weitere Reformen die Attraktivität der Stadt mit dem größten Hafen der Welt für ausländische Investitionen steigern. Vereinfachungen im Devisenverkehr, die Verringerung des Verwaltungsaufwands und weitere Liberalisierungen für ausländische Investoren sollen Cross-Border-Investitionen und Kapitaltransfers erleichtern. Weitere Reformbereiche betreffen die Zollver waltung sowie die Inspektions- und Quarantänesysteme. Ausländische und insbesondere deutsche Unternehmen erwarten dadurch weitere Wachstumsimpulse und vieles deutet darauf hin, dass Shanghai auch in den kommenden Jahren ein vielversprechender Standort für die deutschen Industrie-, Handels- und Dienstleistungsunternehmen sein wird. Alexandra Voss for Spiegel on the findings of the Business Confidence Survey 2014 (July 2014, DE) Ihre starke Position verdanken die Mittelständler in erster Linie ihrer Anpassungsfähigkeit. "Beweglichkeit ist die große Stärke vieler kleiner und mittelständischer Betriebe aus Deutschland", sagt Alexandra Voss, Geschäftsführerin der Deutschen Industrie und Handelskammer in Peking. Dabei seien die Herausforderungen nicht geringer geworden, wie Voss betont. Vor allem die Größe und regionalen Unterschiede des chinesischen Marktes würden Neuankömmlingen viel abverlangen. Tatsächlich ist das Riesenreich ein Schmelztiegel mit diversen Dialekten und unterschiedlichsten kulturellen Bräuchen. Auch Wohlstand und Kaufkraft sind extrem ungleich verteilt. Die aufstrebende Wirtschaftsmacht sei wirtschaftlich "eher als Kontinent denn als Land anzusehen", sagt Voss. Astrid Schröter for BBC news on Angela Merkel's decision to visit Chengdu (July 2014, CN) “We have been going on with the “Go West” policy from the Chinese gover nment for about a decade now. Dur ing t hat time many Ger man companies moved to this region. Companies which are based here are facing a high demand market, this is an opportunity that is open to everyone. This development of course drew attention from Germany. The city of Chengdu is getting more and more into the focus and presents together with Chongqing a new hub in the West of China.” Annual Report 2014 23 YOUR PARTNER IN GREATER CHINA Market entry support for your business success in the middle kingdom As the service provider of the German Chambers of Commerce Worldwide Network (AHK) in Greater China, we support you with your market entry and business development in Greater C h i n a a n d G e r m a n y. W i t h m o r e t h a n 2 5 0 s p e c i a l i s t s i n B e i j i n g , S h a n g h a i , G u a n g z h o u , Hong Kong, Taipei and Karlsruhe we tailor customized solutions for your business success. Design & Web Services Event Management Corporate Services German Company Directory Company & Office Foundation Media Consulting Vocational Training Services Market Entry Success Office in Office Exhibition Services Delegations Sourcing Support Recruitment Services Legal Services Sales Support Market Research German Industry & Commerce Greater China DEinternational Taiwan Ltd. Tel Beijing + 86 10 6539 6688 | Shanghai + 86 21 6875 8536 Guangzhou + 86 20 8755 2353 | Hong Kong + 852 2526 5481 Taipei + 886 2 8758 5800 | Karlsruhe + 49 721 1614 284 www.china.ahk.de/services DEinternational is the service unit of the German Chambers of Commerce Worldwide Network. 24 Annual Report 2014 Training Services German Chamber Membership Building, Energy & Environment econet china Economic review and outlook China continued to see a moderate level of growth in 2014 and economic key indicators remained generally stable. The service sector contributed to a large share of the country’s GDP and urban unemployment remained at about 4%. Wage increases stabilized at about 10% while consumer prices only increased by 2%. The country is in the process of massive structural reforms which will continue in 2015 and bring about many changes in China’s business environment. Annual Report 2014 25 China Economic economic review and outlook Key Developments in Brief Key Economic Indicators  • GDP growth expected at 7-7.2% In % yoy basis • Services and retail as key growth drivers GDP • Energy prices will be falling Investment and Output • Deepening of structural reforms Utilised FDI Fixed Asset Invest Industrial Production • Slowdown in new job creation a risk • Risk of deflation Consumer prices (CPI) Producer prices (PPI) • Falling prices a concern • Stabilizing policy adjustments Export Value Import Value • Shifting to higher value-added exports 2011 10.4 9.3 23.6 25.9 12.9 –2.6 30.5 11.0 17.4 23.8 15.7 9.7 24.0 13.9 5.9 6.9 –0.7 –5.4 3.3 5.5 5.4 6.0 17.5 18.4 –16.0 –11.2 31.3 38.7 20.3 24.9 Economic Development 2015 Key areas of reforms Strengthening of market mechanisms Financial market liberalization Administrative reforms Bureaucracy reduction Opening of service sector Reform of SOEs and monopolies Progressing rule of law Expansion of social and health insurance Tax and fiscal reforms Reform of household registration system GDP (yoy growth rate in %) 11 10 9 8 7 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 Economic grow t h in Ch ina w i ll cont inue to fa ll in 2015, with GDP growth estimated to be between 7.0-7.2%. Rather than experiencing an abr upt crash, the economy is slowly downshif ting to medium growth but given the size of the Chinese economy in absolute terms, this slowdown is natural. Economic transformation and the implementation of reforms are an ongoing process attempting to amend China’s economic development model towards a more sustainable growth pattern. Deepening refor ms have the potential to cause shor t-ter m economic disr uptions as mounting str uctural problems are eradicated. Tolerating a slowdown in certain sectors of the economy in favor of shifting the growth momentum towards domestic consumption, services and innovation will test policy makers’ commitment to accepting lower levels of GDP growth. The structural slowdown to medium growth is currently occurring within a generally stable macroeconomic environment. Key macroeconomic indicators have been slowing, but are generally still expanding at high levels. Key targets of economic policy in 2015 will focus on preventing a substantial slowdown of GDP growth as well as on defying the risk of deflation. Targeted easing of monetary policy to facilitate money supply as well as measures to encourage and support SMEs and export companies, coupled with easing of real estate restrictions and public spending on infrastructure, aim to counter the risk of growth slipping below 7%. Monitoring new job creation in 2015 will be of substantial impor tance, as more heav y-handed stimulus measures are expected should the still-resilient labor market weaken. 12 26 Annual Report 2014 2010 9.2 Foreign Trade • Expanded use of RMB 2011 2009 9.6 Price Levels • Service sector jobs expanding 2010 2008 2013 2014 Given its economic weight, even at moderate growth rates of around 7% China can maintain its position as an important global grow t h engine. 2015 will mark a decisive year for deepening refor ms to br ing Ch ina on a more sustainable development path. Downward pressure and economic r isk, Outlook 2015 economic review and outlook Source: NBS 2012 2013 2014 7.7 7.7 7.4 Price Levels Consumer price index Purchasing price index 4% 3% 2% –3.7 20.6 10.0 5.3 19.6 9.7 1.7 15.7 8.3 2.6 –1.7 2.6 –1.9 2.0 –1.9 7.9 4.3 7.9 7.3 6.1 0.4 1% 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2013 2014 –1% –2% -3% howe ver, a r e i nc r ea si ng, for c i ng t he government to strike a careful balance of suppor ting economic grow th while advancing its ambitious reform agenda. Reforms Restructuring and economic upgrading are v ital in shif ting to a new grow th model. China is in the midst of massive structural reforms. Manufacturing’s share of China’s economy is declining, while the ser vice sector now contributes the largest share to GDP. After years of rapid economic growth, China needs to adjust its growth model, which is heavily reliant on investment and expor ts. Achieving this requires boosting domestic demand and services, while the industrial sector need s to move up t he va lue cha i n. Progress already occurred in 2014: the government announced that 80 key tasks were completed and another 108 reform points have been initiated. By the end of 2015 the tertiar y sector is expected to contribute to about 50% of GDP. A mong ot her a reas, steps to i mprove resou rce a l locat ion by st reng t hen i ng market mechanisms, opening monopolies as well as reducing market restrictions in services can be expected this year. In an effort to free up savings for domestic c on s u m pt ion , e x p a nd i n g t h e s o c i a l safety net will increasingly draw policy at te nt ion . 2015 w i l l m a r k a c r uc i a l yea r for de e pe n i ng a nd acce le r at i ng -4% Foreign Trade Export Import 30 20 10 0 –10 –20 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2013 t he comprehensive refor ms. Despite the advances it should be noted that profound structural changes take time and are only gradually taking shape. Reforms will encounter economic and pol it ica l headw i nd s a nd t he ac t ua l reform scope as well as speed in various areas will differ widely. Price Levels Con su me r pr ices i nc r ea sed by on ly 2.0 % i n 2014, w it h pr ice i nc r ea se s in the last quarter being particularly weak. Absent of a strong stimulus and a recovery of oil prices, upward pressure on c on s u m e r pr i c e s w i l l c on t i n u e to be wea k . Ref lec t i ng i ndu st r ia l 2014 overcapacit y and falling commodit y prices, producer prices have been falling for 34 consecutive months. Overall price levels in 2015 are expected to remain low, with consumer inflation increasing at around 2%, while producer prices are unlikely to recover during the economic slowdown. Given the low level of price increases, the risk of deflation will be a policy concern, but with GDP expanding at around 7% and with sufficient policy tools at hand it is unlikely to evolve into a macroeconomic threat. Foreign Trade 2014 ma rked t he t h i rd yea r foreign trade failed to reach its growth target, Annual Report 2014 27 economic review and outlook underlining persistent weak global demand and falling demand i n t he wa ke of lower econom ic grow t h i n Ch i na. Ex por t performance will remain vital for GDP growth, but growth is likely to see greater f luctuations. Together with increasing competition from Southeast Asian countries, especially in lowend manufacturing, expor ting companies are increasingly under pressure. Processing and low-tech manufacturing is expected to further shift to inland regions or lower cost Asian countr ies. Expor ts of more sophisticated goods as well as services are likely to gain in importance. Developed markets will remain the most important, but export growth to emerging economies, notably within the ASEAN region, will accelerate. Impor ts have been sluggish in 2014 as commodit y pr ices dropped and Chinese demand cooled. The situation is likely to persist in 2015, with imports only growing at low levels. Record current account surpluses are increasing the pressure for the RMB to appreciate against the USD. Given the weak global environment there is, however, a chance that the Chinese government will depreciate the RMB in order to boost exporting 11% 10% 9% 8% 7% Jan/Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan/Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2013 2014 Foreign Direct Investment 30% 20% 10% 0% -10% -20% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2013 2014 *Data Source: NBS 28 Annual Report 2014 Labor Market Employment growth remained resilient in the face of slower economic growth, adding 13 million new jobs in 2014 with urban unemployment stable at about 4%. The ser vice sector represents the largest share of GDP and has evolved into a major contributor for growth with a positive effect on job creation. In general, expansion of the service sector generates more new jobs per percentage point of GDP growth. In 2015 job creation will be particularly important, as the government will carefully monitor the labor market performance as economic growth slows. Wage increases in 2015 will stabilize at about 10%. As was the case in 2013 and 2014, productivity growth will be outpaced by wage increases, undermining China’s competitiveness while posing a key challenge for companies. Risks and Growth Drivers A slowdown in the real estate sector, dealing with industrial overcapacities, and falling price levels pose risks to economic growth in 2015. Increasing debts of local governments as well as corporate debt are a risk to the financial sector. Another risk is that the current anti-corruption drive coupled with stricter fiscal controls for local government spending may contribute to more cautious decision making, contributing to slower growth. Lower economic growth starting to affect new job creation may develop into a considerable risk. A challenging global economic environment with lackluster growth further poses a risk to China this year. Should GDP growth lose momentum in the beginning of the year, higher levels of intervention – at the cost of progress on reform – become likely. Industrial Production 6% manufacturers should GDP growth prove too low. Policies to facilitate trade in a weak global environment can be expected to include measures to increase usage of the RMB as well as new free trade agreements and expansion of the “new” Silk Road. In 2015, China’s economy at a larger extent, will continue to rely on investments and exports. Structural changes are, however, beginning to affect the growth drivers. Growth in services will again outpace that of manufacturing. Retail growth is likely to stabilize at the current high levels and falling energy costs may boost consumers’ spending power. Generally, the importance of e-business and mobile internet will be on the rise. Urbanization projects and infrastructure investments will continue to drive fixed-asset investments, which will be a pillar of growth in 2015. Industrial upgrading and the need to increase productivity in manufacturing, and increasingly in the highly backward agricultural sector, are also expected to contribute to growth. As for regions, growth in the western and central provinces as well as in lower tier cities will outpace growth in the major economic centers. __________________________________________________ For further questions please contact: Max J. Zenglein, Economic Analyst Email: [email protected] Phone: +86 10 6593 6665 Chamber Activities The GCC • Shanghai offers its members a broad range of business and social events. From workshops and seminars, working group meetings, excursions, and factory visits to entertaining social evenings and networking events, you can always find a program that matches your expectations. Our team tailors each event to member needs in order to maximize the benefit of being an active member of the German Chamber. Annual Report 2014 29 Shanghai German Chamber of Commerce Every year, the German Chamber of Commerce • Shanghai organizes a large variety of activities such as workshops, seminars, social and networking events, offering its more than 1,600 members a platform for exchange and to increase their business contacts, as well as to help them stay informed about the latest business developments. As the Chamber network of professionals and business leaders includes the business community of not only Shanghai, but also of the neighboring provinces Jiangsu and Zhejiang, we regularly hold business and social events in cities such as Taicang, Suzhou, Kunshan, and Changzhou . In 2014, we increased the scope of our activities in Jiangsu, and on 22nd October we opened an office in Taicang in order to offer more activities to our members there. All in all, nearly 130 events took place in Shanghai alone in 2014, with the Chamber Meetings the monthly highlight. Our members had the chance to listen to and converse with expert speakers, socialize with decision makers from the Sino-German community, and enjoy a pleasant atmosphere at the diverse venues of the events, including five star hotels, interesting bars as well as production sites. Our workshops provide participants with the opportunity to stay up-to-date on topics including human resources, automotive, tax, finance and more. Issues of general importance are regularly addressed within the framework of established workshop series as well as special events, working group meetings and joint events with other chambers and institutions. In 2014, two new workshops series in Shanghai on “Construction & Building Operation” and on "Information Technology“ in Shanghai as well as five new working groups in Taicang were added to our range of offerings. The Chamber also continues to support the rising generation of business leaders. Our workshop series “Wirtschaftsjunioren” lends young professionals support in their careers through special seminars, workshops and social events. Furthermore, the German “Praktikantenstammtische” in Shanghai and Taicang provide platforms for exchange among German interns and students. We do not only host business events, but also organize social gatherings to strengthen the solidarity of the German community in and around Shanghai. For instance, we organized public viewings of the German team’s games during the world cup, several “Stammtische,” women in business events, four Inter-Chamber Mixers and a young professionals’ mixer in 2014, offering great networking opportunities in a casual atmosphere. Furthermore, on 29th May we celebrated the 20th anniversary of the AHK in Shanghai with more than 400 guests. For the 17th time the yearly highlight of our social event calendar was the “German Ball.” This year more than 1,250 members of our Chamber met under the theme “Der blaue Engel,” ate delicious food, danced to the music of six different bands, made new friends and enjoyed an unforgettable night. By now, the “German Ball” has become famous among the German business community not only in Shanghai, but throughout and even beyond Greater China. 30 Annual Report 2014 events 2014 chamber activities Overview of the Events 2014 2013 Shanghai Events Workshops Special Events Young Leaders (from 2014 workshop) Chamber Meetings Social Events Joint Social Events Stammtische . Annual General Meeting Extraordinary General Meeting 20 Years Anniversary German Ball Shanghai Total 59 3619 19 505 – – 7 1304 8 1564 6 1173 24 162 1 190 2 136 1 400 1 1250 128 10303 Taicang Events Working Groups Business Events (Workshop, Seminars, etc) Round Table In-house Seminars Participants Events 10 2 11 2 Suzhou Events 40 1277 23 814 8 232 8 1285 12 1546 7 121 24 144 – – – – – – 1 1240 123 6659 Participants Events 270 49 300 57 Participants – 7 10 – Participants Events Participants – 142 225 – Participants Business Events (Workshop, Seminars, etc) 8 360 4 53 Social Events 1 70 2 94 Stammtische 12 216 3 154 Hangzhou Events Participants Events Participants Business Events (Workshop, Seminars, etc) Stammtische 5 126 12 96 Kunshan Events Business Events (Workshop, Seminars, etc) 4 Changzhou Events Business Events (Workshop, Seminars, etc) 7 Nanjing Events Business Events (Workshop, Seminars, etc) 1 Ningbo Events – – 12 174 Participants Events 94 1 Participants Events 135 1 Participants Events 15 – Participants Events Participants 22 Participants 42 Participants – Participants Business Events – – 1 45 Provinces Total 75 1788 41 951 Total 203 12091 164 7610 Annual Report 2014 31 chamber chamber activities On the last Thursday of almost every month, the Chamber organizes a large-scale dinner in the ballroom of a five star hotel. Each evening includes a keynote speech from a high-profile business leader or decision maker. The Chamber Meeting serves as a regular occasion for the German business community to come together. It offers an opportunity for the members to stay informed about chamber activities and to network with both other chamber members and other representatives of the wider German community in Shanghai, including institutions such as the German consulate, political foundations and the German school. On average 170 participants took part in each Chamber Meeting in 2014. An integral aspect of the Chamber Meeting platform is to give new members the chance to introduce themselves to the community and present their businesses. Furthermore, they also have the opportunity to extend their networks beyond the German community, as Chamber Meetings regularly attract local and international participants. In short, Chamber Meetings allow participants to enjoy great food, to receive valuable information directly from expert keynote speakers and to network with industry peers all at once. January 2014 Links Blinken und Rechts Abbiegen - Wohin steuert China? Held in German Speaker: Dr. Wolfgang Roehr | then Consul General of the Federal Republic of Germany in Shanghai Moderator: Rolf H. Koehler | vice chairman of the board of directors, German Chamber of Commerce in Shanghai The first Chamber Meeting of 2014 dealt with the topic of China’s future: “Feinting left and turning right - where is China headed?” presented by Dr. Wolfgang Roehr, then Germany’s consul general in Shanghai. He addressed the demographic development of China and its one child policy, as well as the “hukou’’ household registration system and its reform. Dr. Roehr also spoke about his experiences with the Chinese education system, and the link between China’s economic growth and its geopolitical influence. He then commented on China’s relations with neighboring Asian states, and on how vibrant economic exchange does not necessarily entail good political relations. Finally, he addressed Germany’s position in a world where China is becoming more confident and more important. In his view, this development is positive for both countries. Dr. Roehr concluded that the current political choices of China and its reform plans should not be a cause for concern for German companies. 32 Annual Report 2014 meetings chamber activities February 2014 ‘China`s Rich‘ – Insights Held in English Speaker: Mr. Rupert Hoogewerf | Chairman & Chief Researcher, Hurun Report Inc. Moderator: Mr. Titus von dem Bongart | Chairman of the board of the German Chamber Shanghai; Head of GBN Greater China, Ernst & Young (China) Advisory Ltd. “When talking about money, everyone wants to make a little bit more.” With these words Mr. Rupert Hoogewerf, chairperson and chief researcher of the Hurun Report, opened his speech. The glittering atmosphere at the Pudong Shangri-La put the guests of this chamber meeting in the perfect mood for the topic of the evening: “China`s Rich – Insights.” In China, Mr. Hoogewerf stated, there is enormous interest in being successful and getting to the top of society. Mr. Hoogewerf believes that in China not only famous landmarks are symbols of the economic progress of China, but also the successful entrepreneurs who are shaping the face of modern China. In order to draw a picture of today’s Chinese billionaires, he covered topics like sources of wealth, preferred location of residence, travel destinations and choices for children`s education. Chinese entrepreneurs now act more transparently and fortunes are more often self-made than inherited. Mr. Hoogewerf revealed that for every person listed in the Hurun Report, there are 1.5 rich Chinese entrepreneurs who are missing; a phenomenon Mr. Hoogewerf calls hidden wealth or “iceberg wealth”. March 2014 General Meeting and Election of the Board of Directors 2014 Held in German Moderator: Mr. Jan Noether | President & CEO, German Chamber of Commerce Shanghai The March chamber meeting was held at the Grand Hyatt Shanghai in Pudong on the occasions of the biannual board election and the annual general meeting of 2014. Mr. Rolf Koehler, vice chairman of the Board, presented a laudation of Mr. Kurt Fasser, who has been actively engaged for many years in the activities and workshops of the German Chamber of Commerce in China Shanghai. Mr. Fasser was awarded with the first honorary membership of the German Chamber in Shanghai. Then the 18 candidates for the board election had the opportunity to introduce themselves, and gave enthusiastic and charismatic speeches outlining their goals for the chamber. Elected were Mr. Titus von dem Bongart, Mr. Bernd Reitmeier, Ms. Bettina Schoen-Behanzin, Ms. Brigitte Wolff, Mr. Rolf Koehler, Ms. Ming Ming Liu, Mr. Andreas Odrian, and Mr. Peter Legner. All of the elected board members have more than 15 years of experience in China. Annual Report 2014 33 chamber activities April 2014 One Store per Day – How to Manage Retail Growth at Breakneck Speed in China Held in English Speaker: Mr. Christian Nothhaft | CEO, Watsons China Moderator: Mr. Rolf H. Koehler | Vice Chairman, German Chamber of Commerce Shanghai Having studied tourism at the Munich University of Applied Sciences and then worked in the catering sector in Germany, the speaker of this chamber meeting, Mr. Christian Nothhaft, took an unusual path to become the CEO of the health and beauty care chain store Watsons in China. According to Mr. Nothhaft, even though China’s growth is slowly decelerating, the retail market still offers great potential. One factor driving the growth is the countrywide urbanization and fast development of third tier cities. According to Mr. Nothhaft, a common error among Western brands in China is that they want to position their product in the same way they do in the West: this mistake, and the increasing pressure of local competitors, will in the future make it more challenging for Western companies to succeed in the Chinese market. One piece of advice that Mr. Nothhaft gave is to avoid outsourcing processes that you can develop within your company, and to develop talents within your company rather than hiring from the outside. June 2014 Farewell to the German Consul General Dr. Wolfgang Roehr Held in German Speaker: Dr. Wolfgang Roehr | then Consul General of Germany in Shanghai Moderator: Ms. Bettina Schoen | Member of the board, German Chamber of Commerce Shanghai, General Manager, Freudenberg Management A total of 240 people joined the festive farewell meeting for the German Consul General in Shanghai on 19th June at the Kerry Hotel Pudong. Board member Ms. Bettina Schoen welcomed the guests of honor, Dr. Wolfgang Roehr and his wife Dr. Sylvia Kettelhut. Mr. Titus von dem Bongart, chairman of the board, gave a laudation speech for the retiring consul general, who has spent more than eight years as consul general in Shanghai. In his speech, he referred to Dr. Kettlehut as the strong woman behind Dr. Roehr, and emphasized the couple’s close relationship to China. Subsequently, Dr. Roehr gave a speech on whether or not the 21st century can be called the Chinese century. As another highlight at the end of the impressive evening, the Feng Hao Jazz Trio played several well-known songs, accompanied by Dr. Roehr on the clarinet. September 2014 Weiter mit Vollgas voraus? – Trends im chinesischen Automobilmarkt Held in German Speaker: Alexander Seitz | First vice president, Shanghai Volkswagen Moderator: Mr. Titus von dem Bongart | Chairman of the board of the German Chamber Shanghai, Ernst & Young (China) Advisory Ltd. Members and guests of the German Chamber Shanghai gathered at the Andaz Hotel Xintiandi to listen to and discuss the topic “Full speed ahead? Trends in the Chinese automotive market.” Mr. Titus von dem Bongart opened the evening by greeting the new German consul general in Shanghai, Mr. Peter Rothen, who subsequently introduced himself to the German business community. Mr. Rothen described the connections he sees between his last five years living close to Silicon Valley and his present location in Shanghai, another home of technological innovation. Then Mr. von dem Bongart welcomed the main speaker Mr. Alexander Seitz, first vice president of Shanghai Volkswagen. Mr. Seitz outlined the main challenges in the Chinese automotive market and explained how to face those by adapting to different customer requirements, developing and tapping into new business fields, optimizing the supply chain and enlarging the brand’s presence in China. 34 Annual Report 2014 chamber activities October 2014 Extraordinary General Meeting and Vote on Amendments of Statutes Held in English Moderator: Mr. Titus von dem Bongart | Chairman of the board of the German Chamber Shanghai, Head of GBN Greater China, Ernst & Young (China) Advisory Ltd. In order to vote on the proposed amendments of the statues and by-laws, the German Chamber of Commerce in China Shanghai held an extraordinary general meeting on 30th October. Guest of honor Dr. Volker Treier, deputy chief executive of the Association of German Chambers of Industry and Commerce (DIHK), delivered the opening speech. Mr. Titus von dem Bongart, chairman of the board of directors, welcomed the members and introduced the proposed amendments of the statutes and by-laws. Executive chamber manager Ms. Petra Kreuder explained the proposed membership categories. Even though a significant number of members attended the election, the required quorum of voting members was not reached. Therefore, as required by the statutes, a second extraordinary general meeting was held one week later, where a significant majority approved the new statutes and the membership concept. October 2014 Deutschland - bevorzugter Partner für Chinas Modernisierung Held in German Speaker: Mr. Michael Clauss | Ambassador of Germany to China Moderator: Mr. Titus von dem Bongart | Chairman of the board of the German Chamber Shanghai; Head of GBN Greater China, Ernst & Young (China) Advisory Ltd. The speaker for the Chamber Meeting in October was the German Ambassador Mr. Michael Clauss. Mr. Clauss assumed this office at the end of 2013, and at this meeting spoke to the German business community in Shanghai for the first time. The topic of his speech was “Germany – China’s preferred partner for modernization.” He talked about the strong bonds between Germany and China and the mutually beneficial cooperation of the two countries. A delegation from the German Bundestag, among them Ms. Renate Kuenast, chairwoman of the Committee on Legal Affairs and Consumer Protection, attended the event and joined the discussion with the ambassador and the German Chamber members. December 2014 Christmas Chamber Meeting 2014 Held in German Speakers: Mr. Michael Bauer | Catholic priest and Dr. Annette Mehlhorn | Protestant Minister Moderator: Mr. Bernd Reitmeier | Member of the board, German Chamber of Commerce Shanghai; General Manager, Startup factory (Kunshan) Co. Ltd. In December, the German Chamber invited the German business community to come together once again at the Christmas Chamber Meeting. Mr. Bernd Reitmeier opened the evening by summarizing the year 2014 and highlighting the year’s most important events for the German Chamber of Commerce in Shanghai: its 20th anniversary in May, the visit of German vice chancellor Sigmar Gabriel to Kunshan, the opening of a new German chamber office in Taicang, and the adoption of the new statutes and the new membership concept. Next, Protestant Minister Dr. Annette Mehlhorn encouraged the audience to reflect on love and the inconsistency of human life, and Catholic priest Mr. Michael Bauer gave a humorous speech on the many opportunities that life changes bring about. A choir of the German Christian Community sang Christmas carols throughout the evening and guests enjoyed a set dinner of traditional German Christmas specialties. Annual Report 2014 35 chamber activities 20 th Ann of the German of Commerce in On 29th May the German Chamber of Commerce in China • Shanghai celebrated a very special occasion: its 20 th anniversary. Since the founding of the Delegation of German Industry & Commerce in 1994, the German Chamber in Shanghai has provided German companies with a dependable source of information and support to successfully carry out their business activities in Shanghai and its neighboring provinces. To celebrate these twenty years of hard work, development, change and innovation, the German Chamber organized a gala dinner at the Pudong Shangri-La. Among the guests were high-ranking Chinese government officials such as the Vice Chairman of the CPPCC Shanghai Committee Mr. Zhou Hanmin, and important figures from the German business and political scene, including President of the DIHK Dr. Eric Schweitzer, General Consul Dr. Wolfgang Roehr, and – flown in from Germany especially for the event – Dr. Klaus Grimm, the first Delegate of German Industry & Commerce, who shaped the work of the German Chamber significantly during the first 11 years. 36 Annual Report 2014 iversary chamber activities Chamber China | Shanghai To start the evening’s events the nearly 400 guests experienced a journey through time through recorded interviews with “Old China Hands” who shared their experiences and memories of the different phases of the Chamber. Each period was preceded by a performance by Rolf Becker & Band, with music that had been composed especially for the occasion and incorporated popular songs from each period. Next, Dr. Schweitzer gave his keynote speech about the important role the German Chamber of Commerce in China plays in the global AHK network. He highlighted the impressive development of the Chamber in Shanghai: starting with only 34 founding members in 1994, today over 1,600 members benefit from the support of the Chamber. Dr. Schweitzer further talked about one of the missions of the German Industr y & Commerce (GIC) in China: promoting and establishing vocational training schools in China which provide education according to the German dual system. After broaching issues the DIHK is currently engaged in in Germany, Dr. Schweitzer wished the Chamber all the best for the years to come and thanked all employees for their great work and commitment. A laser dance performance, a photo slide show that showed events of the last 20 years of the Chamber and singer Teresa Lee together with Rolf Becker & Band entertained the guests before and during the main course. Afterwards all employees who worked for the AHK for more than 10 years were asked to come to the stage and were honored for their commitment and valuable support. Members of the Chamber also had the chance to win tickets for the Kunshan Beer Festival, the German Ball and a training of the GIC in a lucky draw. It was then time for the last ceremonial act of the evening: the cutting of the anniversary cake by Mr. Jan Noether, then CEO and President of the German Chamber, and Mr. Titus von dem Bongart, Chairman of the Board of the Chamber. After the official events were over, the guests enjoyed mingling, cake and champagne until late. Annual Report 2014 37 Workshops chamber activities China’s business landscape is becoming increasingly complex. As foreign companies face ever-changing challenges from authorities and business trends, the Chamber seeks to provide assistance with its monthly workshops. Several series of workshops supply the German business community with information and insight into various fields of interest. Drawing on its extensive network of professionals and experts in China, the Chamber hosts several workshops each month on a wide range of topics. These are chosen in close consultation with workshop leaders, who themselves are distinguished specialists in their respective fields. This year, we offered trainings in Chinese for the first time, which were met with lively interest. Aside from providing insider news, participants of workshops can get involved directly with our experts during Q&A sessions. Workshops also provide an excellent platform to network and meet people who share your interests. Of course, the Chamber provides the right environment to foster the exchange of ideas and connections among the participants - every workshop ends with a delicious buffet service and a free flow of beverages, balancing business and pleasure. 38 Annual Report 2014 chamber activities Automotive Secrets of Highly Successful Products – das Beispiel SVW Santana March 5th Speaker: Dr. Frank Tiemann | Head of Marketing & Corporate Communication; SVW VW Brand Bernd Pichler | National Sales Director VW Brand, SAIC-VW Sales Company Ltd. The Software Revolution in the Automotive Industry Speaker: Mr. Alexis Trolin | Head, ConnectedDrive Lab China, BMW Group March 24th The Future of E-Mobility & Hybrid Technology in China August 27th Speaker: Mr. Juergen Bauer | Project Manager, Audi Tongji Joint Lab CV Dr. Marcus Maiwald | Business Unit Manager, Technical Training and Consulting, Fraunhofer-Institute for Manufacturing Technology and Advanced Materials IFAM Workshop Leader Dr. Heiko Rauscher CEO Porsche Consulting Ltd. The German Automotive Industry in the Focus of the NDRC: The Chinese November 5th Anti-Monopoly Law and the latest Developments in the Automotive Industry Speaker: Dr. Bernd-Uwe Stucken | Partner, Pinsent Masons LLP Please briefly describe your workshop. In the automotive workshop we discuss important challenges and trends in the automotive industry. We try to cover a broad range of topics, including market and competition, operations, technology and regulatory frameworks. Our participants come from OEMs, suppliers, dealerships or service providers. Participants with other backgrounds are very welcome as well. Which major trends and key challenges were addressed in your workshops in 2014? We addressed four topics: “Secrets of Highly Successful Products – Example SVW Santana,” “Software in the Automotive Industry,” “The Future of E-Mobility” and “Chinese Anti-Monopoly Law.” Which of the topics you discussed in 2014 generated the most passionate debate? All topics generated lively discussions. The topic of “Software in the Automotive Industry” in particular: We had participants with very different backgrounds, such as automotive OEMs, suppliers, research institutes, Google, Apple, and others. This created deep insights into a trend which may revolutionize the industry. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We cooperated with the workshops “marketing & sales” and “legal & tax.” The cooperation was very fruitful, and we plan to continue to offer joint workshops wherever it may be beneficial for the workshop participants. What key topics do you plan to address in your workshop(s) in 2015? There is a number of topics we are currently thinking about. A final decision has not been made, but we plan to cover a variety of aspects. In the past we had a number of speakers coming from OEMs. I hope we can also get speakers from other market players, e.g. from automotive suppliers who also strongly inf luence the shape of the automotive industry. Annual Report 2014 39 chamber activities Business and Society Workshop Leader Ms. Katja Hellkoetter Founder and Managing Director Constellations International Social Inclusion: What Can Be Done at the Workplace and Beyond?  Speaker: Mrs. Anja Weckwert | Senior Advisor, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH; Mr. Thilo Koeppe | Vice President PMC Asia, AMETEK Inc. & Managing Director, Dunkermotoren Taicang Co., Ltd. March 6th Innovations at the Interface of Business & Society:  May 22nd Global Trends and Practice in China Speaker: Ms. Sun Haiyan | Founder, Social Entrepreneur & Editor in Chief, Economy Magazine Please briefly describe your workshop. The workshop on Business & Society was set up in 2013. An important goal of the workshop is to connect German companies with players outside the companies’ borders. Thus, we invite various society stakeholders, NGOs, social entrepreneurs, government representatives, academics etc. to participate. The workshop intends to investigate and encourage ways of engaging in Chinese society by highlighting existing best practices: these could range from traditional philanthropy and charity projects towards more sophisticated cases of shared value creation for the company and society. Which trends and challenges were addressed in your workshop in 2014? In the face of growing societal problems (pollution, social inequality, etc.) companies realize that CSR is not just “nice to have” for image reasons, but also a necessity. For mid-sized German companies, social engagement becomes more and more strategic for various reasons, including talent recruitment and retention, government relations, and social cohesion in the region. Topics we addressed in the workshops included “Social Entrepreneurs as Innovation Partners.” This was illustrated by the example of SAP, who hosted one of the workshops. Another workshop topic was on “social inclusion at the workplace.” Which workshop was the most successful, and why? It is hard to qualify any of the workshops, they were all different, inspiring, and engaging a broad range of stakeholders. There was a good combination of formats from collaborative workshops. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We had one joint event with the HR workshop group in Shanghai, focusing on how societal developments affect the work of HR managers. Furthermore, we had one other event in cooperation with the Taicang Roundtable and its HR Roundtable. What key topics do you plan to address in your workshop(s) in 2015? With support from the Bertelsmann Stiftung, we will co-design and launch an initiative on social engagement of the German industry in China. A first strategy roundtable will take place on 20th March. Furthermore, regular networking events will continue: the first one will take place together with the Young Leader’s Forum of the German Chamber on 12th February, featuring innovative social entrepreneurs and their business models, as well as ways of shared value cooperation for companies with entrepreneurs. 40 Annual Report 2014 chamber activities Construction & Building Operation Construction Procedures in China –  Planning, Approval Process & Implementation Speaker: Mr. Colin Liu | Partner, CMS China; Mr. Erik Wauer | General Manager, MPS April 24th Workshop Leader Soil and Indoor Environmental Pollution - Remedy & Legal Aspects September 3rd Speaker: Dr. Stephan Simon |Managing Director, WESSLING Holding GmbH & Co. KG; Dr. Falk Lichtenstein | Head of Corporate, CMS China Beijing Office; Head of Dispute Resolution of CMS China Workshop Construction & Building Operation:  September 11th Process Energy Cost Reduction Speaker: Mr. Marijn ten Wolde | Energy and Resource Efficiency Manager, Bosch Siemens Home Appliances; Mr. Frank Ralf Mueller | General Manager, LAR Process Analysers China Voith Paper City – Site Visit Speaker: Mr. Bryan Glenister | Construction Manager of multiple Voith projects; Mr. Benny Chen | Manager, Voith Training Center; Mr. Tom Gu | OpEx & Environmental Business Management, Voith Paper FRS Asia Mr. Christian Bosselmann Deputy Managing Director energydesign Shanghai October 10th Lean Factory – Planning & Realization in China  November 14th Speaker: Mr. Qian Liang | Head, Corporate Real Estate Asia Pacific, Bosch China Investment Ltd. Please briefly describe your workshop. The workshop presents an opportunity to discuss current trends in the area of the construction and operation of facilities in China. It lays special emphasis on setting up production sites and their smooth and energy efficient operation. Which major trends and key challenges were addressed in your workshops in 2014? In 2014, we addressed five topics: “Process Energy Cost Reduction (twice),” “Lean Factory Design,” “Soil and Indoor Environment Pollution,” “Construction Procedures,” and “Planning, Approval and Legal Aspects.” Additionally, we arranged the visit of the Voith Paper Fabrics site. Which of the topics you discussed in 2014 generated the most passionate debate? The topic of “Process Energy Cost Reduction” was particularly successful. We offered this workshop twice. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We have the greatest synergy with the “Production and Logistics Workshop.” What key topics do you plan to address in your workshop(s) in 2015? We will continue to address key trends in Construction and Building Operation. Future workshops will cover topics such as zero liquid discharge in production (site visit Mubea in March) and decentralized industrial waste water treatment (site visit Suzhou Industrial Park). We also offer a one day training workshop for FM personnel in industrial facilities (beginning of February with the TRT). Another topic is automation of controls to optimize building and process energy demand. Annual Report 2014 41 chamber activities Controlling and Finance Workshop Leaders Mr. Alexander Prautzsch Director | Tax Services - China Tax & Business Advisory Services Pwc Mr. Marco Eilers Director German Desk Deloitte Touche Tohmatsu Certified Public Accountants LLP Inventory Reduction through a Coherent Order to Delivery Process April 3rd Speaker: Dr. Andre Philipp | CEO, Deutz Dalian Engines Co. Ltd. Mr. Joerg Nuernberg | Executive Director, Droege Group China Ltd. Sicher verkaufen in China Speaker: Philipp Senff | Head of Compliance, Pinsent Masons May 8th The next Wave of Foreign Exchange De-regulations -  May 27th New Opportunities for your Cross-Border Cash Management Speaker: Mr. Samuel Fischer | Vice President Corporate Treasury Sales, Deutsche Bank China; Ms. Maggie Qiu | Director, Head of MNC Shanghai Capital Markets & Treasury Solutions, Deutsche Bank China The SAP FIN Module in the Chinese Environment -  June 24th Functionality, Concepts and Best Practices to improve Financial Control Speaker: Ms. Wendy Zhang | Senior Product Specialist, SAP Labs China; Mr. Andrei Li | Product Office Leader, SAP Labs China The Shared Service Center Approach - A Practical View of Finance Strategy Speaker: Mr. Alexander Prautzsch | Director, PricewaterhouseCoopers Consultants November 28th Please briefly describe your workshop. The workshop Controlling & Finance provides a forum for managers in financial and administrative functions as well as professionals like accountants, bankers and advisors to interact and address subjects of mutual interest for German companies. The target is to have six workshops per year with different focuses, covering both current and evergreen topics of interest. Usually, two expert speakers with different backgrounds lead the discussions. Which major trends and key challenges were addressed in your workshops in 2014? The major topics of 2014 have been inventory management, sales compliance, cross-border cash management, SAP FI module functionality and shared service centers for the finance function in China. Which of the topics you discussed in 2014 generated the most passionate debate? We had debates on all topics, in particular about cross-border cash management, which is a new development in the Chinese regulatory environment, and the set-up of shared service centers, which is an ongoing agenda item among big and medium sized German players in China. The latter is connected to the topics ‘process reliability’ and ‘efficiency.’ Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? There is some room for industry specific events together with relevant industry working groups. What key topics do you plan to address in your workshop(s) in 2015? New topics for 2015 may include financing options offered by public credit institutions as well as IT security strategies in China. 42 Annual Report 2014 chamber activities Human Resources Termination of Employment in the PRC: Experiences & Guidelines for Employers January 14th Speaker: Ms. Pyn-An Sun | Senior Associate, Schindhelm Rechtsanwaltsgesellschaft GmbH Career Development and Recruitment of Foreign Nationals in China Speaker: Miriam Wickertsheim | Director, Direct HR Ltd. Alexander Wibbing | Project Manager, Partner Support Program, AHK Shanghai May 13th Workshop Leader Mr. Joerg Heil General Manager hartung:consult What Makes Leading German Companies Top Employers In China? June 5th Speaker: Mr. Robert Schaefer | Member of the Executive Board, Top Employers Institute; Ms. Nicole Jin | Country Manager, Top Employers Institute China Salary Developments 2014/2015:  October 28th Presentation of the German Chamber’s 7th Annual Salary Survey Speaker: Mr. Max J. Zenglein | Economic Analyst of the German Chamber of Commerce Greater China Creating a Coaching Culture in China Dr. Laurenz Awater/ Management consultant, coach at INNOVA Management Institute Ms. Linda Xu / HR consultant at INNOVA Management Institute November 5th Please briefly describe your workshop. The Human Resources workshop covers all areas of HR management in China: finding staff, retention, remuneration, training & development and much more. Parallel to our public workshops we also started an HR roundtable, which consists only of HR practitioners and allows us to discuss more sensitive topics in a smaller group. Which major trends and key challenges were addressed in your workshops in 2014? Excluding the HR Summit, we had a total of six HR workshops in 2014. We covered regular topics, such as the annual presentation of salary developments, and standard issues such as the termination of employments. However, we also discussed new topics such as the career development and recruitment of foreign nationals in China. Which of the topics you discussed in 2014 generated the most passionate debate? I don’t see that any specific event stood out. Some topics, such as the presentation of salary developments, usually generate more discussions than, for example, legal topics. However, our target group always actively engages in discussions. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? In 2014 we had no joint workshops, but I see a potential for cooperation with the Legal & Tax and the Business & Society Workshops. What key topics do you plan to address in your workshop(s) in 2015? Besides covering legal and other current topics, we plan to have the sustainable development of human resources as the main theme for the coming year. Our event “China HR Tomorrow – The Summit 2015,” which is planned for April, will again combine various topics in one single event and the speeches will be translated into Chinese for the first time. It will be the not-to-be-missed event for all HR professionals. Annual Report 2014 43 chamber activities Legal and Tax Workshop Leaders Leader Mr. Roger Haynaly Partner Roedl & Partner China Ms. Vivian Yao Certified Tax Advisor, Partner Roedl & Partner China Current Developments regarding Restructurings & Investments  in China from a Tax Perspective Speaker: Mr. Anthony Chau | Tax Partner, KPMG Shanghai Office CV January 16th Transfer Pricing Challenges in China -  How to Manage Transfer Pricing Risks for Your Business in China Speaker: Dr. James Zhao | Transfer Pricing Partner, Deloitte Shanghai; Mr. Simble Li | Transfer Pricing Senior Manager, Deloitte Shanghai March 4th Practical Tax Issues related to Cross-Border Inter-Company Services Speaker: Mr. Charlie Sun | Senior Associate, Head of Tax Practice Area Group ,CMS China April 15th The New China-Germany Tax Treaty has been signed! -  Opportunities and Challenges for German Companies Speaker: Mr. Alexander Prautzsch | Tax Director, PwC China May 6th Chinese Labor Law Update on employment and HR laws Speaker: Dr. Iris Duchetsmann | Partner, Clyde & Co May15th When Joint Ventures Go Wrong Speaker: Mr. John Macpherson | Director Greater China, Control Risks June 10th The New China-Germany Tax Treaty Speaker: Mr. Jeff Xu | Tax Partner, Shanghai Deloitte Tax Ltd July 1st Soil and Indoor Environmental Pollution - Remedy & Legal Aspects September 3rd Speaker: Dr. Stephan Simon |Managing Director, WESSLING Holding GmbH & Co. KG; Dr. Falk Lichtenstein | Head of Corporate, CMS China Beijing Office; Head of Dispute Resolution of CMS China A New Wave of Anti Tax Avoidance Measures  by the Tax Authorities in China, are you ready? Speaker: Mr. Tony Zhang | Tax Partner, Grant Thornton October 21st The German Automotive Industry in the Focus of the NDRC:  November 5th The Chinese Anti-Monopoly Law and the latest Developments in the Automotive Industry Speaker: Dr. Bernd-Uwe Stucken | Partner, Pinsent Masons LLP Trends und Entwicklungen im chinesischen Steuerrecht 2014  für ausländische Investoren Speaker: Mr. Titus von dem Bongart | Head of GBN Greater China, Ernst & Young December 9th Please briefly describe your workshop. The workshop Legal & Tax provides an open platform for first-hand information exchange and discussion on current topics and developments in business and tax related laws and regulations. Which major trends and key challenges were addressed in your workshops in 2014? More initiatives and programs were introduced in 2014 to strengthen governmental administrations. To adapt to those developments and to assess the business risks appeared to be the most challenging task. Which of the topics you discussed in 2014 generated the most passionate debate? Apart from the very positive reception of the new double tax treaty between China and Germany, the aggressive approach of the Chinese tax authorities against unwelcomed service charges from foreign parent companies were certainly the most popular topics. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? Even though legal and tax issues tend to be isolated areas, there were fruitful cooperations with the workshops for automotive and for construction. What key topics do you plan to address in your workshop(s) in 2015? Updates on ongoing developments will be cornerstones of the new agenda. As riskoriented issues are further on the rise, they will complement the program for the year along with new important laws and regulations that are issued in 2015. One or two events will be reserved for a review of the past year and/or outlook into the upcoming one. 44 Annual Report 2014 chamber activities Information Technology Securing your Business Information - Security in the Digital World Speaker: Mr. Keith Yuen | Partner EY Beijing; Ms. Wendy Xia | Manager EY Bejing February 26th Serving 600 Million Users, Challenges of Chinese Internet Operations Speaker: Mr. James ERON | COO & Co-Founder, ChinaNetCloud May 7th Workshop Leaders Leader B2B E-Commerce in China – 3 Steps to Success! September 2rd Speaker: Mr. Volker Englert | Supervisor for Sales and Customer Service China, Koehler Group;   Ms. Elisabeth Broering | Key Account Manager – Fashion & E-Commerce;   Mr. Patrick Deloy | Founder and Executive Director, Bluecom Group Information Technology Security Top Secret – How to effectively protect  your Data and Company Know-How from Cyber Criminals’ Attacks Speaker: Mr. Markus Woehrle | General Manager, datadirect Taicang Ltd.; Mr. Michael Heitzmann | Senior Security-Consultant, datadirect Taicang Ltd. Mr. Jan Bernstorf China Deputy General Manager BearingPoint (Shanghai) Enterprise Management Consulting November 26th Mr. Ahmet Tombul General Manager Please briefly describe your workshop. The IT workshop presents an opportunity to discuss current trends, challenges and opportunities in information technology, as well as topics with a special focus on the Chinese market. Our objective is to offer a networking opportunity. We would like to increase the transparency of IT strategies, IT solutions, opinions and lessons learned with IT projects in China. The workshop is designed for cross-industry participants who are engaged and/ or interested in information technology or closely related topics, such as CIOs, IT managers, business process managers, software and IT consultants, and business managers who strive for more business-IT alignment. Vauman Information Technology Consulting Which major trends and key challenges were addressed in your workshops in 2014? Since the relaunch, B2B-commerce and different aspects of security were two of our major topics, and were addressed in three of our workshops in 2014. Which of the topics you discussed in 2014 generated the most passionate debate? Our IT workshop addressing “B2B E-Commerce in China – 3 Steps to Success!” was attended by more than 60 participants. We had a lively discussion with the three speakers, who were presenting B2B-commerce from different perspectives and the participants gave us very good feedback. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? Since the relaunch of the IT workshop in September 2014, we did not cooperate with any other GCC workshops so far. However, the IT workshop is a collaborative event, jointly promoted and executed with the Canadian and Chamber of Commerce. What key topics do you plan to address in your workshop(s) in 2015? In 2015, we intend to address topics that are on top of the CIO’s agendas, e.g. “ERP strategy: Local ERP vs. SAP?,” “Digital strategy for China: E-Commerce, B2B and/ or O2O?,” and “Business-IT Alignment – How to communicate with HQ?” Annual Report 2014 45 chamber activities Marketing & Sales Workshop Leaders Leader Ms. Brigitte Wolff Director PwC Strategy& Secrets of Highly Successful Sales People Speaker: Mr. Michael Adick | Managing Director of Articulate February 19th Secrets of Highly Successful Products – das Beispiel SVW Santana March 5th Speaker: Dr. Frank Tiemann | Head of Marketing Communication Department; SVW VW Brand ; Bernd Pichler | National Sales Director VW Brand, SAIC-VW Sales Company Ltd. The Secrets of Successful Brands in China May 20th Speaker: Ms. Tatjana Martens-Pearce | Managing Director Shanghai, globeone Shanghai Office Ms. Na Tang | Senior Consultant, globeone Shanghai Office Mr. Bernd Pichler National Sales Director VW brand SAIC-VW Sales Company Ltd. Special Excursion Marketing & Sales: “The Secrets of Successful Products  September 18th in China – The Example of Organic Chocolate Ms. Julia Zotter | General Manager, Zotter China Please briefly describe your workshop. Our workshop addresses professionals in sales and marketing, covering various topics relating to the "6 Ps" (promotion, price, product, place, people, and processes). Last year, participants also included general managers and company owners, and professionals who are genuinely interested in new marketing methodologies and trends such as the impact through new media, big data and e-commerce. Our workshop is a platform that brings them together with providers of marketing services and consulting. Which major trends and key challenges were addressed in your workshops in 2014? We covered a wide range of trend topics in 2014. We aimed at uncovering the secrets to success with the following topics: The secrets of successful salespeople, the secrets of successful brands, the secrets of successful products (exemplified by the SVW Santana) and the secrets of successful products in China (with the example of organic chocolate). The secret of gaining the interest of the audience was that we showed real examples in China, presenting achievements and shortfalls at the same time. Which of the topics you discussed in 2014 generated the most passionate debate? As automotive is quite a popular topic, it drew the most attention, especially as the VW brands such as Santana and Tiguan are omnipresent in Shanghai’s streets. However, we were surprised by how many chocolate lovers joined us at the factory visit to learn ‘from bean to bar’ about organic chocolate making. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We did a successful joint workshop with automotive on ‘branding.’ For 2015, we prepared a workshop together with Mechanical Engineering & Plant Constructioncalled “The Impact of Digital in the B2B Landscape.” What key topics do you plan to address in your workshop(s) in 2015? "The Impact of Digital in the B2B Landscape” “Secrets of successful processes – CRM example SVW” “Secrets of successful services – Loyalty programs” “Secrets of successful places – Changes in the sales channel – e-commerce” ‘Secrets of successful strategies – insights about China strategies 46 Annual Report 2014 chamber activities Machine Building & Plant Construction Strategien zum Schutz geistigen Eigentums in China -  Besonderheiten der Maschinenbauindustrie Speaker: Dr. Bernd-Uwe Stucken | Partner, Pinsent Masons LLP January 22nd Mr. Peter Legner President & CEO Recruitment Challenges im Maschinenbau – April 10 Qualifizierte Mitarbeiter nach deutschem Vorbild Speaker: Wilhelm Dittrich | Head of Recruitment and Training Department, AHK Shanghai th Produkt- und Know-how-Schutz im Maschinenbau in China –  May 2nd Technisch präventive Maßnahmen Speaker: Oliver Winzenried | Director of Wibu-Systems AG and of Protect-ing im VDMA Working Group in Germany; Rainer Glatz | Managing Director, Trade association Software und Elektrische Automation, VDMA; Head of Geschäftsstelle Plattform Industrie 4.0 Erfolgreiche Zwei-Marken-Strategie in China-  Das Beispiel TRUMPF / Jinfangyuan (JFY) Speaker: Peter Hoecklin | President, TRUMPF China Workshop Leaders Leader Juny 11th Schenck Shanghai Machinery Corp. Ltd Mr. Daniel Tweer General Manager Rosler Surface Tech (Beijing) Co., Ltd. Please briefly describe your workshop. The machine-building industry is equally important for China and for Germany. More and more German machine-building companies are investing in China, facing increasing competition from Chinese companies and challenges in a very dynamic business environment. In our workshop, we try to bring forward the most significant and urgent topics related to the machine-building industry in China. Which major trends and key challenges were addressed in your workshops in 2014? We have conducted workshops around the following subjects in 2014: “Successful 2-Brand Strategy in China – The Example of Trumpf and Jinfangyuan,” “Product and Know-How Protection in the Machine-Building Industr y – Technical Preventive Measures,” “Recruitment Challenges in the MachineBuilding Industry – Qualified employees, according to German Standard,” and “IPR Protection Strategies in China – Special Challenges in the Machine-Building Industry.” Which of the topics you discussed in 2014 generated the most passionate debate? The most pressing topic in 2014 and in the coming years is to find qualified and well-trained employees. We expect that we will conduct further events related to this subject in the future. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? So far, we have not cooperated directly with other workshops, but we are planning to have a common event with the marketing workshop regarding social media. In general, we have overlapping subjects with most of the other workshops, but we always try to focus on a machine-building perspective. What key topics do you plan to address in your workshop(s) in 2015? In 2015, service will be a topic, as well as the automation trend, training, and maybe Industry 4.0 and design. Annual Report 2014 47 chamber activities Production & Logistics Workshop Leader Mr. David Mueller General Manager Staufen Shanghai Ltd. Energy Efficiency in Manufacturing Facilities: Concept – Construction – Operation March 20th Speaker: Mr. Christian Bosselmann | Deputy Managing Director, energydesign Shanghai Material Cost Reduction – the Key to increase Competitiveness in China Speaker: Mr. Mike Li | Deputy Operation Director, KSB Shanghai Pump Co., Ltd. May 19th Lean Factory – Planning & Realization in China November 4th Speaker: Mr. Qian Liang | Head, Corporate Real Estate Asia Pacific, Bosch China Investment Ltd. Please briefly describe your workshop. The workshop provides a forum where participants can exchange information and discuss key challenges, mainly in the field of production and logistics. However, as this workshop aims at sharing best practices related to improving process efficiency and reducing manufacturing costs, the scope of topics covers all value-adding activities along the supply chain. Which major trends and key challenges were addressed in your workshops in 2014? Some of the key topics we addressed were:  Rising production costs in China and the related challenge of staying competitive in the market  Lean factory planning as the basis for efficient internal logistics and production processes - by defining the value stream and material flow in a company in an ideal way right from the beginning  Solutions for higher energy efficiency in manufacturing facilities to meet challenges from rising energy prices and pressure from the local governments Which of the topics you discussed in 2014 generated the most passionate debate? The workshop about energy efficiency received very active participation and interest from the attendees. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? In 2014, we successfully cooperated with the workshop “Construction & Building Operation,” which we will definitely continue in 2015. Another workshop to cooperate with in 2015 is the workshop “Automotive Industry,” as competitiveness in operations is one of the key success factors in this industry. What key topics do you plan to address in your workshop(s) in 2015? Some of the topics for 2015 are intelligent manufacturing (Industry 4.0), reliable and efficient supplier networks, and logistics solutions for transportation between China and Europe. 48 Annual Report 2014 chamber activities Young Leaders Look Behind the Curtains of the Kerry Hotel Speaker: Gregor Wateler | General Manager Kerry Hotel Pudong Solo-preunership in China:  Breaking and Making the Rules  Speaker: Mary Rezek Essential Legal Knowledge for Business in China Speaker: Dr. Falk Lichtenstein A Special Shanghai SKYLINE STROLL The WHO is  WHO of Shanghai’s Breathtaking Skyline Speaker: Fanny Hoffmann-Loss March 6th Workshop Leaders Leader March 25th Partner April 15th Look behind the curtains II - The Cross-Cultural Experiment of the German Musical "ELISABETH“ Speaker: Mr. Richard Fei and Ms. Mandy Chen Ward Howell May 6th Kaminabend mit Herrn Generalkonsul Dr. Wolfgang Roehr: "China – größte  June 3rd Volkswirtschaft der Welt? - vor innen- und außenpolitischen Herausforderungen" Business Risks in China – How to Avoid or Deal with a Crisis Speaker: Mr. Neal Beatty Mr. Michael Maeder September 23rd Ms. Andrea Cristancho China BD & Marketing Director PTL Group of companies st October 21 Please briefly describe your workshop. The Wirtschaftsjunioren | Young Leaders Shanghai Chapter provides a networking and learning platform for young entrepreneurs and managers of any nationality who are interested in developing their professional skills and broadening their personal knowledge. The Shanghai Chapter was founded in 2010 by the German Chamber of Commerce in China - Shanghai in close cooperation with young managers and entrepreneurs with a long-term interest in China. The Wirtschaftsjunioren | Young Leaders (http://www.wjd.de) is the German arm the Junior Chamber International (http://www.jci.cc). Ms. Verena Simon Project Manager German Chamber of Commerce in China | Shanghai Which major trends and key challenges were addressed in your workshops in 2014? WJ/Young Leaders workshops addressed topics regarding entrepreneurship/leadership, business and culture. They provided advice on topics like ‘discovering greater creativity and influence in leadership communication.’ Furthermore, we covered CRS tips for start-ups and mid-sized companies implementing new initiatives in their firms from the WoW Power perspective of Touchmedia. Which of the topics you discussed in 2014 generated the most passionate debate? The format that attracted the most interest this year was our newly developed event format “Looking behind the curtains,” which reveals unique insights on how a business is run behind the scenes. Participants especially liked the Kerry Hotel event, as the scale and scope of the hotel operations behind the scenes is quite astonishing. The general manager showed the participants operations behind the scenes and revealed critical elements of a hotel’s service operations. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? Recently, we are focusing on cooperating with the CSR & Sustainability workshop as we see interesting overlaps and synergies particularly in the area of social entrepreneurship. What key topics do you plan to address in your workshop(s) in 2015? We are planning interesting events covering entrepreneurship, business and culture. Specifically we are planning a workshop for early 2015 on social entrepreneurship. In addition, we are looking at expanding the “Looking behind the curtain” format and introducing more exciting businesses to our members. Annual Report 2014 49 chamber activities Women in Business Workshop Leader Ms. Verena Simon Project Manager German Chamber of Commerce in China | Shanghai Work-Life Balance – Can It Be Achieved? Speaker: Claudia Gehlen | Executive coach and trainer Strategic Planning - Develop Your Best Career Plan Speaker: Bettina Al-Sadik-Lowinski | BAS-Coaching, BAS-Consulting January 16th March 13th Releasing the Transformation Power of Women in Leadership April 22nd Speaker: Julia Atkinson | Senior Executive Coach at Atkinson-Training Leading across Cultures – Gain Awareness of Your Own Cultural Orientation and Learn to Use Cultural Differences More Constructively Speaker: Bettina Al-Sadik-Lowinski | BAS-Coaching June 17th How Social Intelligence Builds Positive Relationships October 28th Speaker: Claudia Gehlen | Executive coach and trainer Please briefly describe your workshop. The Women in Business Workshop is a networking and learning platform especially provided for female professionals of all nationalities working in and around the greater Shanghai area. In a multicultural environment, female professionals have the space to exchange information about their professional life, career planning, work environment and challenges to better understanding the dynamics of this multinational business climate. The Women in Business Workshop was initiated in 2013 to address female professionals in and outside of the German Chamber Shanghai and serve as a platform for their career and personal development Which major trends and key challenges were addressed in your workshops in 2014? WiB addressed a variety of topics regarding the working lives of women: how to balance work with private life, the challenge of leading across cultures, career planning, and the question of social intelligence in and outside of the work environment. Which of the topics you discussed in 2014 generated the most passionate debate? All topics were well received and discussed by the participants. The platform allows participants to share with their peers, and provides deeper insight into the experience of a female professional pursuing a career in the Yangzte Delta. Female professionals who work in MNCs, NGOs, or who are self-employed entrepreneurs come together to learn from each other and develop their professional skills. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We cooperated with EPWS (Expatriate Professional Women’s Society) and plan to enlarge the platform for female professionals by continuing the cooperation with EPWS and connect with other chambers in Shanghai who offer this format of workshops. What key topics do you plan to address in your workshop(s) in 2015? We are delighted to have appointed Doris Rathgeber to be the new workshop leader of the Women in Business Workshop starting from 2015. Furthermore, the German Chamber will offer more Women in Business events around the topics of selfcoaching, senior career development, experience sharing with successful female entrepreneurs in Shanghai and much more. 50 Annual Report 2014 Working Groups IN Taicang Working groups play a critical role as business facilitators for companies in China. Currently, Taicang hosts over 160 active German companies with around 8,000 local employees, mostly engaged in the knowledge-intensive capital goods industr y. Moreover, they all share similar corporate cultures and needs, due to their common home bases in Germany and other parts of Europe. Ac t ive a nd com m it ted work i ng g roup pa r t ic ipa nt s for m connections between different companies and create a dense network of interaction that includes knowledge exchange, problem solving, best practice sharing and other pooling of resources among local companies. In addition, they represent the specific interests and needs of German companies, and are able to identify and discuss strategic topics, provide solutions and implement actions for the benefit of the German industry in Taicang. Since the beginning of 2014, the German Chamber of Commerce and the Taicang Roundtable (TRT) have successfully established various working groups with the joint efforts of local companies and individuals. Each working group is defined by a different overall topic, meets on a regular basis and is headed by a working group leader (an expert from a local company in the respective field). Annual Report 2014 51 chamber activities Human Resources Workshop Leader Ms. Angela Bao (Until September 2014) Vice President HR & HR Services Schaeffler Greater China Mr. Daniel Faeh (Until December 2014) Project Manager Jiangsu Province German Chamber of Commerce in China Shanghai Secrets of Highly Successful Sales People Speaker: Mr. Michael Adick | Managing Director of Articulate Kick-off Meeting HR Working Group  Speaker: Ms. Angela Bao | Vice President HR & HR Services, Schaeffler Greater China Blue Collar Workers: Hiring and Retention Speaker: Ms. Dr. Iris Duchetsmann | Partner Clyde & Co February 19th March 12th May 30th Social Engagement July 25th Speaker: Ms. Magali Menant | Co-Founder and Managing Partner of CONSTELLATIONS International Team Building in Wuxi (Picking Peaches) Speaker: Ms. Angela Bao | Vice President HR & HR Services, Schaeffler Greater China July 26th GCC Annual Salary Survey October 29th - Taicang Special Focus Speaker: Mr. Max J. Zenglein | Economic Analyst of the German Chamber of Commerce Greater China Please briefly describe your working group. The goal of the working group is to create a platform to improve HR processes, facilitate information flow and exchange best practices among companies in Taicang. The half-day working group meetings are held every two months to actively discuss and contribute to specific HR topics in Taicang. Guest speakers are invited to provide input on specific topics related to Taicang that support and trigger the working group discussions. Which major trends and key challenges were addressed in your workshops in 2014? During the working group kick-off meeting in spring, the group defined some key topics that were successfully addressed during the year: hiring and retention of blue collar workers, social engagement/CSR and the salary/wage developments. These meetings showed that some challenges in Taicang differ from Shanghai in various respects and require different and more local approaches and solutions. Which of the topics you discussed in 2014 generated the most passionate debate? In addition to four successful and very productive meetings, the working group organized a team building trip to Wuxi. While picking peaches and eating healthy and delicious food at a Songjiale, the participants could network and exchange ideas to further strengthen the ties of German companies in Taicang. Which other working groups did you cooperate with, and with which working groups do you expect to have the most synergies for the coming year? No cooperation yet, but there are overlapping topics for instance with the training & professional development working group in Taicang to further improve the human resources in Taicang. What key topics do you plan to address in your working group in 2015? This will be discussed and defined at the beginning of the year during the first working group session. 52 Annual Report 2014 chamber activities Training & Professional Development July 24th Training (in Chinese): Developing Winning Teams in China Speaker: Mr. c.j. Ng | Executive Director Directions Consulting Please briefly describe your working group. In the working group “Training & Personal Development” we focus on sourcing and organizing trainings at a reasonable price for all German companies in Taicang. Workshop Leader Mr. Michael Schneider General Manager E.G.O. Components (China) Co. Ltd. Which major trends and key challenges were addressed in your working group in 2014? The key challenge was to consolidate the training needs of the TRT companies by collecting training demands. To get the first trainings started in 2014 was the key milestone. Which of the topics you discussed in 2014 generated the most passionate debate? Our reviews of the experiences of different companies with certain training providers were the hottest topic in the early workshops. Which other working groups did you cooperate with, and with which working groups do you expect to have the most synergies for the coming year? The link is very close to all Taicang workshops, because all of them can be supported with the right training based in Taicang. What key topics do you plan to address in your workshop(s) in 2015? In 2015, the main targets are the following: we would like to evaluate the needs of our participants and contribute to the study program with the DH VillingenSchwenningen to have a first class starting with Taicang students. Additionally we would like to get more Taicang companies involved in the TRT Training Program. Logistics AND Supply Industry 4.0 - The Future of (Warehouse) Automation in China Speaker: Dr. Peter Oswald | CEO China + South East Asia, Viastore Systems Shanghai December 12th Please briefly describe your working group. The main target of “Supply & Logistics” workshop is to identify supply and logistics needs and challenges from local companies, to share information and find solutions together. Workshop Leader Ms. Angela Wen Quality Director Krones Machinery (Taicang) Co. Ltd. Which major trends and key challenges were addressed in your working groups in 2014? Topics addressed in 2014 were supply management, logistics concepts and policies, indirect material purchasing, local sourcing, and warehouse management. Which of the topics you discussed in 2014 generated the most passionate debate? There was always a lot of discussion during each working group meeting. Generally, our members are interested in international forwarding, customs import and export business activities, and how local suppliers can develop an understanding of German quality standards. W h ic h ot he r work shops d id you coope r ate w it h , a nd w it h wh ic h workshops do you e x pe c t to have t he mos t s y ne r g ie s for t he com i ng yea r? We have not cooperated with other workshops in 2014. It might be one of our plans in 2015. What key topics do you plan to address in your working groups in 2015? We would like to invite external professional speakers to gain more insights into resource integration, cost reduction and increased localization rates. Annual Report 2014 53 chamber activities Operations Workshop Leaders Leader Lean Shop Floor Management Speaker: Mr. Timo Schneemann | Manager of Staufen Shanghai November 25th Mr. Min Chen Vice General Manager Memminger-Iro (Taicang) Textile Machinery Co. Ltd. Mr. Richard Qin Production Manager E.G.O. Components (China) Co. Ltd. Please briefly describe your working group. We intend to share professional experience in the field of production management and find new ways and opportunities to cooperate with other members. Which major trends and key challenges were addressed in your workshops in 2014? A popular topic was lean production experience sharing. We also discussed other topics related to operations, such as EHS, Training, and capability sharing. Which of the topics you discussed in 2014 generated the most passionate debate? The two most popular topics were lean production and “How to do training for a new Chinese employee.” Which other working groups did you cooperate with, and with which working groups do you expect to have the most synergies for the coming year? Our working group was just launched in the second half of 2014, so we have not yet cooperated with other groups. For 2015, we expect to have the most synergies with the Supply & Logistic Working Group and the Training & Professional Development Working group. What key topics do you plan to address in your workshop(s) in 2015? We have not finalized all our key topics for 2015 yet, and we will do some survey to collect new ideas from our members. However, we will surely address lean production experience sharing, training issue, and EHS in 2015. Finance & Controlling Workshop Leader Ms. Dr. Zhou Shuqin CFO Krones Machinery (Taicang) Co. Ltd. Meet the Taicang Tax Office Experts Speaker: Representatives from the National Tax Bureau in Taicang November 12th Please briefly describe your working group. The Finance + Controlling working group will focus on all finance, accounting, controlling, and tax matters that foreign invested companies in Taicang have to regularly deal with. Which major trends and key challenges were addressed in your workshops in 2014? The working group was just launched in the last quarter of 2014. The first regular workshop addressed the topic of tax, with the Taicang Tax Bureau attending the workshop and supplying the latest information. Which of the topics you discussed in 2014 generated the most passionate debate? As the working group is still young, it is difficult to decide which topics stand out. Which other workshops did you cooperate with, and with which workshops do you expect to have the most synergies for the coming year? We will stay focused on finance controlling matters for the coming year and don't yet plan any major cooperations with other workshops. What key topics do you plan to address in your working groups in 2015? Topics related to authorities and their rules and regulations (e.g. Tax, SAFE, Customs, etc.) will probably remain a focus. Also, controlling-related topics such as management reporting, working capital management, etc. could be interesting to address. 54 Annual Report 2014 chamber activities The German Chamber Celebrates Office Opening in Taicang On 22nd October the German Chamber of Commerce in China | Shanghai celebrated the opening of its Taicang office. During the past year, the Delegation of German Industry & Commerce Shanghai (AHK) has expanded and intensified their activities in Taicang to provide local companies with better assistance. Taicang hosts around 200 active German companies withover 6,000 local employees. In order to support, facilitate and promote initiatives such as working groups, dialogues with government and educational and training institutions, and provide the necessary services and resources from Shanghai, it was an obvious and necessary step to set up a German Chamber office in Taicang. To celebrate the office opening, Mr. Titus von dem Bongart, chairman of the board of directors, German Chamber of Commerce in Shanghai welcomed the German Consul General in Shanghai Mr. Peter Rothen and high-ranking guests from Taicang’s German and Chinese business and political communities, such as Ms. Lu Yan and Mr. Zhu Wanli, vice-mayors of the Taicang Municipal Government, and Mr. Lu Yizhong, vice president of the China Council for the Promotion of International Trade Suzhou. About 140 participants joined the event, also enjoying the opportunity to see the new premises. In his speech, Mr. Lu emphasized how the new office opening highlighted Taicang’s strong SinoGerman “brand,” as well as the long history of Chinese-German cooperation in the region. Later, Mr. Rothen pointed out that a new German Chamber office opening no longer happens very frequently, and said that the fact that there was a German Chamber office in Taicang but none in Los Angeles emphasized how important Taicang is to German business. In his closing speech, acting chief representative of the AHK, Mr. Christoph Angerbauer, took the opportunity to thank the highly active and committed individuals from local enterprises, organizations and the government. Finally, the assembled guests enjoyed a lion dance, the official ribbon cutting, and a champagne toast. Visitors are always welcome at the German Chamber of Commerce’s office in Taicang. For more information, please contact Mr. Ulf Schneider at [email protected]. social events chamber activities Germans in Shanghai and the neighbouring provinces do not need to worry about getting to know new people. Every month, the Chamber organises many social events that bring together Germans, locals and other members of the international community. From InterChamber Mixers, happy hours and special dinners to family days and the highlight of year, the German Ball, the Chamber has it all in its busy annual social calendar. Kölle Alaaf | Cologne Carnival in Shanghai March 4th | Brotzeit This year the German Chamber of Commerce in Shanghai organized Kölle Alaaf – a celebration of the traditional carnival from the city of Cologne - for the 1st time. Children and grown-ups enjoyed traditional specialties from the Rhineland and had the chance to listen to and sing along with songs from Cologne’s carnival, experiencing a very special part of German culture. Spring Inter-Chamber Mixer April 3rd | Isola Bar & Grill, Shanghai Every year, the Spring Inter-Chamber Mixer is the first opportunity for the international Chamber community to meet. Businesspeople from all over the world enjoyed a delicious buffet and had the chance to admire the view of the illuminated Pearl Tower. Public Viewings: World Cup 2014 June 16th, June 26th, July 4th, July 14th | German Centre Shanghai The German Centre and the German Chamber invited German football fans – along with a number of Chinese fans who had also fallen in love with Jogi Loew’s team - to join several public viewings of Germany’s amazing performances live on a big screen. Everything began with the first game against Portugal, which attracted more than 500 fans. Next up were the games against the US and the quarterfinal against France. The most amazing event was the final against Argentina: more than 650 participants came all the way to the German Centre from all parts of town to watch and celebrate as Germany won its 4th title. Chinese and German fans of every age filled the lounge of the German Centre, face paint and flags colored the room in red, black and gold, and a Chinese fan club equipped with drums provided an exciting atmosphere. Snacks and free-flow beers were offered to the colorful crowd. Long after the game had ended, the fans continued to sing, drink and celebrate until after the sun came up. Asparagus Dinner June 9th | Käfer by the Binjiang One The Chamber at Käfer hosted this special Asparagus dinner for the first time in 2014. The guests enjoyed an evening of three courses of fine dining and entertainment at one of the finest restaurants in Shanghai, which was a breathtaking river view. Summer Inter-Chamber Mixer June 24th | Regal Hotel, Shanghai The international community of Chambers of Commerce gathered once again for an exceptional evening in Shanghai. Members of chambers from all around the world as well as their friends met at the Regal Hotel to exchange conversations, engage in networking, and enjoy the location. Ladies Networking Night March 12th | Mexo at the Bund, Shanghai In addition to workshops for women in business, a Ladies Networking Night was organized this year in cooperation with other Chambers. Like-minded women from a variety of backgrounds explored new opportunities and exchanged experiences at a beautiful Bund-side location. 56 Annual Report 2014 chamber activities 2 x Young Professionals Mixer April 25th | Xuan Bar, August 14th | Tap House Organized in cooperation with several other Chambers, such as the Swiss Chamber, Ben Cham (representing Belgium, The Netherlands and Luxemburg) and the Canadian Chamber, these events brought together young professionals, members, non-members and friends from around the world. Everyone had the opportunity to enjoy a relaxed get together, network in a pleasant atmosphere and taste signature cocktails at Xuan Bar, and draft beers, wines, soft drinks as well as assorted snacks at Tap House. 10th Welcome Back Party August 30th | Eurocampus – German and French School Shanghai For the 10 th time, the German Chamber, in cooperation with the German and French School Shanghai, organized the annual Welcome Back Party at the Eurocampus in Puxi. Around 900 guests enjoyed a beautiful late summer day filled with outdoor activities, games, live music, typical German food, barbecue, sweets and drinks and live music. Polo Gold Cup October 19th | Estate of Nine Dragons Hill The German Chamber of Commerce offered its members special access to an exclusive outdoor event: a day at the Polo Gold Cup. Members joined with their families and friends to experience the prestigious world of polo from up close. The audience had the chance to witness this breathtakingly high-speed game from right next to the playing field. 10th Christmas Inter-Chamber Mixer December 3rd | Paulaner Bräuhaus, Shanghai This year the Paulaner Bräuhaus opened its doors to the Christmas Inter-Chamber Mixer organized by the German and the European Chamber for the 10 th time. The venue was packed with a record-breaking 900 colleagues, family members, and friends who gathered for a cheery international Christmas celebration. Guests enjoyed indoor and outdoor buffets featuring Gluehwein and other traditional Christmas favorites, and danced the night away to music provided by Paulaner’s house band. The evening was a shining example of Shanghai’s foreign and local communities united by the Christmas spirit. STAMMTISCHE Deutscher Stammtisch Shanghai Every 2nd Tuesday of the month | Paulaner Bräuhaus, Shanghai Every month the German business community comes together in a friendly and relaxed atmosphere at the Paulaner on Fenyang Road. This is the perfect opportunity both for newcomers to get to know the Shanghai German community and for long time residents to catch up with old friends over a glass of German beer and a traditional German meal. Praktikantenstammtisch Shanghai Every third Wednesday of the month | Cotton’s, Shanghai Each month interns, students, and young professionals meet at Cotton’s Bar on Anting Road for the German Praktikantenstammtisch. This long-standing event gives attendees a chance to meet new people, learn more about Shanghai, exchange experiences, and, most importantly, enjoy a fun night out. German Corner Hangzhou Every third Tuesday of the month | Angelo’s Restaurant, Hangzhou The German Chamber Corner has become a fixed date for all expats living in Hangzhou. Every third Tuesday of the month, they meet with friends and colleagues and enjoy lively conversation in a casual atmosphere. Social Gathering in Suzhou Every first Tuesday | Harry’s Bar, Suzhou The German Chamber, in cooperation with DUSA, also organized regular get-togethers in Suzhou in 2014, which enables Suzhou’s expatriate community to come together and network in a relaxed atmosphere. Annual Report 2014 57 chamber activities 17 TH german In 2014, more than 1,200 guests at Shanghai’s art deco style Grand Hyatt in the Jin Mao tower were treated to a night full of all of the glamour and decadence of 1920s Berlin: the 17th German Ball, Der blaue Engel. The Ball’s guests made their entrances through a black and red tunnel decorated with twinkling stars, and entered the foyer, where as the stars of the evening they were welcomed with glasses of cold champagne and classic recordings of Marlene Dietrich’s signature songs. Here many guests took the opportunity to greet old friends and have their pictures taken by professional photographers at the photo boards. A charming 1920s style tap routine by U-Turned on the grand staircase officially opened the second storey ballrooms. The ballrooms were decorated in colors to reflect the evening’s theme – blue for Der blaue Engel, red for lipstick and kisses, black for top hats and cabaret nights, and gold for Marlene’s hair. This opulent setting was matched by the bounty of the buffet, and hundreds of dishes tempted the guests, including a fantastic array of fresh seafood and caviar, a whole suckling pig, numerous live cooking stations and a whole room dedicated to dozens of desserts. After the Ballroom guests finished their meals and the Dinner and Dance guests descended from the 56th floor to join in the festivities, Marlene Dietrich herself entertained the assembled revelers with a live show – courtesy of Ms. Annika Lund, the Marlene Dietrich Illusion and Mr. Markus Mittermeyer, her pianist. 58 Annual Report 2014 ball chamber activities Diamond Sponsor Platinum Sponsors Gold Sponsors Though full of delicious food and engaged by good company, few of the guests could resist jumping to their feet as the bands took the stage. Acts included the German bands Backhaus Music Company and Lounge Society partnering with the local bands Rolf Becker & Big Band, Felix Lopez & Band, as well as Studio 188 who kept the energy up and the guests dancing until dawn. For those who had already danced themselves breathless, the second story lounges offered a welcome retreat: while guests in the Cigar Lounge enjoyed live jazz of Rm2 Rhythms and smooth cigars, laughter and conversation enlivened the atmosphere in the Champagne Lounge. The climax of the evening came at midnight, with the Lucky Draw and the opening of the Midnight Buffet. Lucky Draw winners received prizes such as international f lights, stays at luxur y hotels, tickets to an award-winning musical, and even a 20,000 RMB travel voucher. Nearby, other guests enjoyed searching out their own pictures from the wall at the photo sale, or headed upstairs for another round of tempting snacks. Silver Sponsors Beverage Sponsors Media Partner Hotel Room Sponsor Now that this extravagant evening is behind us, the German Chamber Team would like to extend its special thanks to May Klug for her invaluable design work, Felix Heimberg for his charming hosting of the event, and all of the Ball’s wonderful bands and performers. Thanks to the hard work of the staff at the Grand Hyatt, the generosity of the sponsors and, above all, the boundless enthusiasm of the guests, the 17th German Ball was a resounding success. Annual Report 2014 59 Neighbouring chamber activities Business events Date Name Speaker Place 18th February Workshop Suzhou (Human Ressources): Termination of Employment in Jiangsu: Experiences & Guidelines for Employers Dr. Iris Duchetsmann | Partner at Clyde & Co Law Firm Suzhou 19th February 1st Joint Changzhou Executive Roundtable - Post Chinese New Year Retention Benchmarking Ms. Miriam Wickertsheim | Director at Direct HR, Mr. Dan Krassenstein | Director of Operations, Procon Pacific Packaging Changzhou 6th March German Company Briefing of the Municipal Government of Changzhou 2014 Government Representatives Changzhou 13th March 2nd Joint Changzhou Executive Roundtable -Labor Dispatch Law and Labor Union Mr. Anderson Zhang | Partner, Dacheng Law Offices Shanghai, Ms. Liu Qian | Of Counsel, King & Wood Mallesons Shanghai Changzhou 9th April Changzhou Roundtable Dinner: Benchmarking the Local Operating Environment 10th April Workshop Kunshan: Lean for high-mix, low volume industries - theory and practical approach Mr. Rainer Voelker, Mr. Thomas-Peter Koller Kunshan 14th April Special Event Hangzhou: Am Ostufer des Westsees und westlich des Taihu - Wo steht China heute? - Ein Jahresrück- und Ausblick Dr. Wolfgang Röhr | Generalkonsul Hangzhou 16th April Workshop Suzhou: Anti-Bribery in China Mr. Kevin Wang | Partner, CMS, China Suzhou 15th May Training in Changzhou (in Chinese): Transforming Technical Professionals into Highly Effective Team Leaders Mr. C.J. Ng Changzhou 21st May Workshop Suzhou (Legal & Tax): The new ChinaGermany Tax Treaty has been signed! - Opportunities and Challenges for German Companies Mr. Ulrich Reuter, PhD | Senior Manager, China Tax & Business Advisory Services, PwC, Mr. Lukasz Mehl, LL.M. (Taxation) | Manager, China Tax & Business Advisory Services, PwC Suzhou 10th June Workshop Kunshan: Vertragsgestaltung, Sozialversicherung und private Vorsorge für deutsche Expats Klaus-Peter von der Eltz | Mag. Sinologie und Versicherungsfachmann, Dr. Eva Drewes | Rechtsanwältin bei Luther Law Offices, Shanghai Kunshan 12th June Workshop Nanjing: Lean for high-mix, low volume industries - theory and practical approach Mr. Rainer Voelker | Senior Consultant, Staufen. Shanghai, Mr. Helmut Guesten | General Manager, emz Hanauer (Nanjing) Co.,Ltd. Nanjing Sino-German Controlling Salon: Achieving Excellence in Controlling Dr. Zhen Huang | Managing partner of Shanghai De Chen Enterprise Management Consulting Co. Ltd., Mr. Dietmar Pasche | Partner and Trainer of Controller Akademie AG, Munich and Graz, Mr. Li Xin | Director Finance Controlling, Volkswagen Group (China) Suzhou 13th July 60 Annual Report 2014 Changzhou Provinces chamber activities Date Name Speaker Place 20th June Business Expansion Forum - Moving Westwards Various Suzhou 2nd September Taicang In-House Seminar: German Visa Application Support for Chinese Business Travelers Ms. Yu Ling | Head of Visa Department, German Taicang Industry of Commerce Shanghai 4th September Workshop Kunshan: R&D and High-tech Status in China Mr. Stefan Kracht | Managing Director, Fiducia Management Consultants, Mr. Liu Caixi | Deputy Kunshan director, Kunshan Science and Technology Bureau 16th September Workplace Safety Regulation Various Suzhou 24th September Taicang Strategy Workshop: Insight on the Economic Development of China and the APAC Region Ms. Mary Boyd | Director Shanghai Corporate Network of The Economist Group Taicang 10th October Workshop Kunshan (Construction & Operation): Voith Paper City – Site Visit Various Kunshan 27th October Presentation of the GCC Annual Salary Survey - Changzhou Special Focus Mr. Max J. Zenglein | Economic Analyst of the German Chamber of Commerce Greater China Changzhou 29th October Presentation of the GCC Annual Salary Survey - Suzhou Special Focus Mr. Max J. Zenglein | Economic Analyst of the German Chamber of Commerce Greater China Suzhou 4th November Hangzhou Entrepreneur Dinner Series: Growing a Cross-Border Business Mr. Jesse Yang | President, King Sea International Hangzhou 6th November Taicang In-House Seminar: Vertragsgestaltung, Sozialversicherung und private Vorsorge für deutsche Expats Klaus-Peter von der Eltz | Mag. Sinologie und Versicherungsfachmann, Rainer Burkardt | Rechtsanwalt Taicang 26th November Lunch Briefing with the Changzhou Municipal Commerce Bureau Government Representatives Changzhou 27th November Workshop Suzhou (Construction & Building Operation): Process Energy Cost Reduction Mr. Marijn ten Wolde | Energy and Resource Efficiency Manager, Bosch Siemens Home Appliances, Mr. Frank Ralf Mueller | General Manager, LAR Process Analysers China Suzhou 27th November Special Excursion Machine Building & Plant Construction: TRUMPF Taicang Plant Visit Taicang Annual Report 2014 61 chamber activities Social events German Chamber Corner - Hangzhou 21st January, 18th February, 18th March, 15th April, 20th May, 17th June, 15th July, 19th August, 16th September, 21st October,18th November, 16th December Welcome back to Business Barbecue Dinner in Suzhou 12th September Social Gathering German Chamber of Commerce & AmCham in Hangzhou 11th March, 13th May, 10th June German Chamber of Commerce & DUSA Social Gathering in Suzhou 7th January, 11th February, 11th March, 1st April, 6th May, 3rd June, 1st July, 5th August, 2nd September, 7th October, 4th November,2nd December ChIEF REPResentative visits Anhui Mr. Jan Noether, Chief Representative of the German Industry & Commerce Greater China | Shanghai paid a visit to Anhui Province on 19th and 20th March 2014. He was warmly welcomed by Mr. Zhang Wuyang, Deputy Secretary General of Anhui Provincial People's Government. During the meeting, Mr. Zhang gave an overview about the industrial and economic situation in Anhui Province, while Mr. Noether highlighted the increasing importance of East China for German companies. After the meeting, Mr. Noether visited the Hefei New & High Technology Industrial Development Zone and the Anhui Light Industry Vocational School. He further visited the Continental-Reifenwerk Hefei, the key German company in Anhui Province. On the 20 th March, Mr. Nöther visited Ma’anshan City and met Mr. Zhang Xiaolin, Party Secretar y of Ma'anshan Municipal Committee of CPC. Mr. Li Qun, Chairman of CPPCC Ma’anshan and Mr. Wang Xiaoyan, Vice Mayor of Ma’anshan also attended the meeting. Afterwards, they visited local and German companies in Ma'anshan. 62 Annual Report 2014 social responsibility Providing Opportunities to Youth in Need The Board of the German Chamber of Commerce in Shanghai is continuing to pursue its objective of increasing the visibility of German industry in terms of social responsibility. For three years now, the Pfrang Association in Nanjing has supported more than 50 young high school students. This charity is a nonprofit organization which contributes to education for underprivileged children in Anhui and Jiangsu Provinces. It aims to combat social inequality and poor education, which often is the root of criminal behavior. It cooperates with the NGO Amity Foundation in Nanjing. In order to gain insight into the fruits of the charity organization’s work, a delegation paid a visit to the mountains of Jinzhai County in Anhui province. Dr. Eva Drewes, who brought her two daughters with her, and Mr. Rolf Koehler represented the Board of the German Chamber of Commerce in Shanghai. They joined the representative of the Pfrang Association, Ms. Julia Guesten, and Ms. Wendy Wu of Amity Foundation to visit the Nanxi High School in Anhui. This impressive school educates 3,000 high school students, including students who formerly attended the high school in Banzhouyuan 60km away, which had to be closed. In 2013, the delegation visited 20 students in Banzhouyuan eligible for funding. All of these students have by now successfully graduated with the help of the donations. During the second visit in 2014, the delegation met with a new group of 23 bright young people supported by the German Chamber, and talked with them about their personal objectives and ambitions. Their wishes ranged from supporting their families to becoming a journalist or an engineer. Mr. Koehler explained what the German Chamber does, awakened their interest in Germany, and gave each student a Chinese version of the book “The 7 Habits of Highly Effective Teens.“ As the children supported by the Pfrang Association grow, so does the project. In the near future, the German Chamber of Commerce Shanghai will expand its efforts with interested companies to widen and intensify awareness of social integration efforts in China. The workshop “Business and Society” and a bigger initiative supported by the Bertelsmann Foundation will provide the platforms for visibility and participation. Annual Report 2014 63 special events chamber activities 2014 was a busy year for the German Chamber of Commerce. The selection of workshops, social events, and fairs was enriched by the addition of several special business events and joint events with other chambers and organisations. These included factory visits, cultural events and special seminars on several topics of interest, such as the Shanghai Free Trade Zone, Visa Application Support and many more. Through these special events the Chamber gives its members the opportunity to connect with a wider variety of people and topics and boosts the German business community development in China. The Chamber utilizes its professional network to organize high-profile business events that unite German, Chinese and international business leaders. Recruitment in an Intercultural Context: Bridging the Expectations March 5th of Chinese and International HR Managers Speaker: Mr. Hsiao J. Chiu | Partner, Shanghai DEININGER Management Consulting/ Managing Partner DE.NING Management Consulting; Ms. Carol Ji | Project Manager, DE.NING Management Consulting Special Event: Swiss Chamber / German Chamber Joint Seminar “Trends and Strategies in Logistics and Supply Chain Management Speaker: Mr. Sven Kothe | M+R Spedag Group March 11th Special Event “Wieder zurück" – China Reflektionen mit der ehem. April 16th ARD-Shanghai-Korrespondentin Kerstin Lohse Speaker: Kerstin Lohse | MERICS – Mercator Institute for China Studies,Berlin China HR Tomorrow - The Summit: The Only HR Summit Focusing April 17th on German Companies in China! April 18th, 2014 Setting up a Subsidiary in China: Challenges, Risks and Chances from German Headquarter and China Branch Perspective Speakers: Mr. Dieter Mueller | General Manager, Kittelberger (Shanghai) Co. Ltd.; Mr. Jan Kittelberger | CEO, Kittelberger media solutions GmbH Moderator: Mr. Andreas Dittrich | Project Manager, German Chamber of Commerce This workshop focused on the challenges, requirements and chances for establishing a Chinese subsidiary, using the example of the German service provider and online agency “Kittelberger media solutions GmbH.” Based on the company’s experience during the last five years, the speakers, Mr. Jan Kittelberger, CEO of the German Headquarter, and Mr. Dieter Mueller, general manager of the Kittelberger Shanghai branch, addressed major risks and the reasons for making certain decisions during the founding process. This special event attracted more than 80 participants that wanted to learn from this best practice example and discussed their own experiences with the two speakers. 64 Annual Report 2014 chamber activities April 23rd, 2014 Special Event Kunshan: Gala Dinner with the German Minister of Economics and Energy Mr. Sigmar Gabriel Speakers: Mr. Sigmar Gabriel, Minister of Economic Affairs and Energy, Vice Chancellor of Germany and Party Chairman of the SPD Moderator: Mr. Titus von dem Bongart, Chairman of the Board of the German Chamber Shanghai Minister of Economic Affairs and Energy Sigmar Gabriel in Kunshan On 23rd April 2014 the German Chamber in China | Shanghai had the honor of welcoming Mr. Sigmar Gabriel, minister of economic affairs and energy, vice chancellor of Germany and party chairman of the SPD, at a gala dinner in Kunshan. Leading personalities of business and politics and representatives of the international press accompanied Mr. Gabriel at this event, such as the president of the DIHK, Dr. Eric Schweitzer, executive representative of the Voith Group in China, Ms. Liu Mingming, and the chairman of the Asia-Pacific Committee of German Business (APA), Dr. Hubert Lienhard. German political leaders accompanying the minister were amongst others the former minister of defense, Mr. Rudolf Scharping, and the former minister of economics and technology, Mr. Michael Glos. Special Event: “Packaging: Corrosion Protection for Transport and Storage – How to do this in China and why” Speaker: Mr. Robert Lipsky | General Manager of Glo Pack (Shanghai) Co., Ltd. May 21st Workshop "Vertragsgestaltung, Sozialversicherung und private Vorsorge May 27th für deutsche Expats" Speaker: Klaus-Peter von der Eltz | Mag. Sinologie und Versicherungsfachmann; Dr. Iris Duchetsmann | Rechtsanwältin bei der internationalen Kanzlei Clyde & Co. in Shanghai June 12th, 2014 Special Event Shanghai Free Trade Zone with Zhu Min, Deputy Director General of China (Shanghai) Pilot Free Trade Zone Speakers: Mr. Peter Kompalla | Deputy Chief Representative, AHK Vietnam/German Industry and Commerce Vietnam Mr. Anton Pietsch | General Manager, BME Shanghai Co. Ltd.; Mr. Niels Delater, Founder & CEO, Spectos GmbH Moderator: Mr. Jan Noether | Chief Representative, Delegation of German Industry & Commerce Shanghai; President & CEO, German Chamber of Commerce in China | Shanghai The Chinese Government considers the Shanghai Pilot Free Trade Zone (SPFTZ) to be part of its long-term strategy to shift the growth model to a more open and innovative economy. The SPFTZ will serve as a testing ground for economic reforms of increasing market access, opening the financial sector and simplifying administrative and fiscal processes. The presentation of Mr. Zhu Min provided an overview of the already implemented reforms in the SPFTZ. He was very open in discussing the strategy for the further development of the zone, and in outlining the opportunities offered to international companies. The main objectives of the Pilot FTZ are to transform the role of the government, create an international and rule-based business climate and explore new ways for the nation’s reform and opening-up undertaking. More than 150 participants took part in the event. Air Pollution Control in Shanghai: What can be done to clear the Haze? July 3rd Speaker: Dr. PEI Bing | Senior Engineer, Atmospheric Monitoring Division, Shanghai Environmental Monitoring Center German Visa Application Support for Chinese Business Travelers August 7th Speaker: Ms. Yu Ling | Head of Visa Department, German Industry of Commerce Shanghai Annual Report 2014 65 chamber activities Special Excursion Automotive: Volkswagen Plant Visit September 4th Speaker: Mr. Bernd Pichler Director Sales, VW Marketing & Sales Business Division, Shanghai Volkswagen Automotive September 17th, 2014 Special Event "After the crisis: A better future for the Euro-zone?" Speakers: Dr. Joerg Kraemer | Chief Economist of the Commerzbank AG Italian and Spanish government bonds yields have never been lower since the introduction of the Euro. Dr. Joerg Kraemer, Chief Economist of Commerzbank, highlighted what the the sovereign debt crisis means for the future of the Eurozone and how it could be ended. Countries such as Spain have regained their price competitiveness, but Italy still rejects the necessary reforms. Moreover, the loose monetary policy of the ECB is likely to create new problems in Germany. Dr. Kraemer also gave his perspective on the Asian economies and explained Commerzbank’s outlook for bond yields and currencies. Strategy Workshop "Insight on the Economic Development of China and the APAC Region" Speaker: Ms. Mary Boyd | Director Shanghai Corporate Network of The Economist Group September 24th Special Event: Präsentation des EU Positionspapiers 2014/2015 October 15th Speaker: Martin Kraemer | Vorstandsmitglied, European Union Chamber of Commerce in China, Shanghai Workshop „Richtig versichert im Ausland? Worauf deutsche „Expatriates“ October 21st in China achten sollten“ Speaker: Sven Janßen | Versicherungsmakler, Hofmann Versicherungsvermittlungs GmbH The 13th Sino-German Job Fair on November 7th and 8th in Shanghai November 7-8th November 25th, 2014 2nd Sino-German Controlling Forum: "Controlling For Growth" Speakers: Ms. Fu Fangping | United Automotive Electronics Systems; Mr. Yanik Kiermeier | Finance Manager, Schenck Shanghai Machinery Co., Ltd; Mr. Dirk Lange | Managing Director, Duravit China; Mr. Jason Ma | Partner, Express Finance Solutions (Shanghai); Mr. Enrico Turchet | CFO, Shanghai Brose Electric Motors Co., Ltd; Ms. Robyn Wang | Partner Advisory, Ernst & Young; Ms. Dr. Zhou Shuqin | CFO, Krones China Moderators: Mr. Christoph Angerbauer, Acting President & CEO, German Chamber of Commerce Shanghai Dr. Zhen Huang, Managing Partner, Shanghai De Chen Enterprise Management Consulting Co. Ltd.; Mr. Lukasz Mehl, Manager, Tax Services - China Tax & Business Advisory Services, PwC; Mr. Alexander Prautzsch, Director, Tax Services - China Tax & Business Advisory Services, PwC Under the headline “Controlling for growth,” the 2nd Sino-German Controlling Forum 2014 addressed the challenges of building efficient accounting and controlling practices for operations in China. With over 120 participants, the forum provided a lively platform for dialogue and exchange. It focused on professional controlling practices with seven high-level speakers from the manufacturing and financial service industries. Two keynote speeches by Ms. Fu from United Automotive Electronics Systems and Mr. Turchet from Brose showed how improved controlling operations could contribute to profitability and growth. After five other presentations, the conference was wrapped up in a final panel discussion. With seven presentations, in-depth Q&A sessions and plenty of opportunities for networking and exchange, the forum offered valuable insights for improving controlling practices and supporting future growth in China. 66 Annual Report 2014 chamber activities November 27th, 2014 Special Excursion Machine Building & Plant Construction: TRUMPF Taicang Plant Visit Speakers: Mr. Peter Hafner | Vice President Production, TRUMPF (China) Co., Ltd. The excursion to TRUMPF in Taicang, a globally leading company in the areas of sheet metal processing machines, laser technology and electronics, provided the participants with a number insights of the machinery industry in China. The visit began with a plant tour, which was guided by Mr. Peter Hafner, vice president production of TRUMPF China. During the tour he introduced the history of the company in China and worldwide and the production process of different machines. During the plant visit, the participants were able to see many of the TRUMPF machines in action. After the plant tour Mr. Hafner gave a presentation on the TRUMPF Group. He outlined the development of the German family-owned company worldwide in recent years and explained the success factors for its operations in China. How to apply for a German Business Visa? November 27th Speaker: Ms. Susanne Koester | Head of Visa Section, Consulate General of the Federal Republic of Germany  Shanghai;  Ms. Laura Okoye | Visa Section, Consulate General of the Federal Republic of Germany Shanghai;  Mr. Sven Wechsung | Visa Section, Consulate General of the Federal Republic of Germany Shanghai 4th Sino German Communication Forum Shanghai “Corporate Publishing in China December 16th Speaker: Ms. Sue Zhu | Head of Corporate Communications, Voith Corporate Management; Ms. Kerstin Kaehler | Executive Secretary to CEO, German Centre Shanghai OTHER EVENTS German Chamber of Commerce in Shanghai signs MOU with AmCham On 20 th February a delegation led by Mr. Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai (AmCham), was welcomed by Mr. Jan Noether, president and CEO of the German Chamber of Commerce in China | Shanghai. On this occasion, Mr. Jarrett and Mr. Noether signed a Memorandum of Understanding (MoU) to strengthen the friendship and the collaboration of the AmCham and the German Chamber of Commerce. An essential aspect of the MoU is collaboration in Shanghai’s neighboring provinces, which will be intensified in the future. Following the signing Mr. Jarrett was taken on a tour through the premises of the AHK. After this delightful meeting, we can expect a successful collaboration and an extension of our services to our members in the provinces. Annual Report 2014 67 OUTLOOK ON 2015 chamber activities AHK Shanghai welcomes new Delegate! As of 1st February 2015, Ms. Simone Pohl assumed the role of Delegate and Chief Representative of the Delegation of German Industry & Commerce in Shanghai and Executive Director and Board Member of the German Chamber of Commerce in China Shanghai. Prior to joining the AHK in Shanghai, Ms. Pohl served in various roles at the German American Chamber of Commerce of the Midwest in Chicago, acting as the President and CEO from 2006 - 2015. Before moving to the US, she worked for 8 years in the hospitality industry in Munich, Germany. What are we planning for 2015? • Developing our Corporate Citizenship Campaign and engaging more deeply in CSR • Expanding our presence and broadening our service offerings in the provinces • Implementing the new membership structure 2015 • Renewing MoUs and cooperation agreements with other Chambers and business organizations • Expanding our social media presence • Increasing the number of Chinese-language events • Holding a member satisfaction survey so that we can provide even better services to our members 68 Annual Report 2013 Imprint Publisher German Chamber of Commerce in China • Shanghai 25/F China Fortune Tower 1568 Century Avenue, 2000122 Shanghai Tel + 86 21 5081 2266 Fax +86 21 5081 2009 www.china.ahk.de Concept and Authors Ms. Olivia Helvadjian – Communications Manager Dr. Annika Beifuss – Communications Project Manager German Chamber of Commerce in China • Shanghai Imprint Fido’s Feeling Feverish? Layout & Design Ms. Fang Fang – Manager Ms. Li Ye – Designer Design Services of German Industry & Commerce • Shanghai Check Your Benefits. Exclusive discounts on healthcare for your whole family are available to members of the German Chamber of Commerce in China. Learn more at http://china.ahk.de/chamber/ benefit-partner/ Your Partner for Your Sino-German Business Success. Support. Facilitate. Inform. Represent. ANNUAL REPORT 2014 The German Chamber of Commerce in China would like to thank its Yearly Sponsors of the year 2014 Shanghai