M e m b e r M a g a z i n e f o r S w e d i s h C h a m b e r s o f C o mm e r c e i n H o n g K o n g a n d C h i n a
No.04
2011
Employed by the Chinese
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Executive talk He will put Asia on the art map
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Feature His passion is creativity
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SwedCham Hong Kong New chairman elected
As Chinese companies are increasingly going global, more people in the West have to get used to the fact that their employer could one day be Chinese.
FLY THE SHORTCUT TO EUROPE
Publisher Swedish Chambers of Commerce in Hong Kong and China For advertising inquiries, please contact respective chamber’s office The opinions expressed in articles in Dragon News are those of the authors and do not necessarily
CONTENTS
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Cover photo: iStockphoto INQUIRIES Swedish Chamber of Commerce in Hong Kong Room 2503, 25/F, BEA Harbour View Centre 56, Gloucester Road, Wanchai, Hong Kong Tel: +852 2525 0349 E-mail: chamber@swedcham.com.hk Web: www.swedcham.com.hk General Manager: Eva Karlberg Marketing Manager: Märta Lang Administration Manager: Maria Tornving
Helsinki
INQUIRIES Swedish Chamber of Commerce in China Room 313, Radisson Blu Hotel 6A, East Beisanhuan Road, Chaoyang District Beijing 100028, People’s Republic of China Tel: +86 10 5922 3388, ext 313 Fax: +86 10 6462 7454 E-mail: beijing@swedishchamber.com.cn Web: www.swedishchamber.com.cn General Manager: Yvonne Chen Member Service & Sales Manager Beijing: Karin Roos Webmaster & Finance Assistant: Jaycee Yang Administration Assistant: Vika Jiao
Beijing Delhi Chongqing
Bangkok
Seoul Shanghai
Tokyo Nagoya Osaka
Hong Kong
Singapore
Shanghai Contact Member Service & Sales Manager Shanghai: Johanna Pollnow Tel: +86 21 6217 1271 Fax: +86 21 6217 0562 Mobile: +86 1368 179 7675 E-mail: shanghai@swedishchamber.com.cn
6 Opinion: Anders Wollter 8 Snippets 10 Cover story:
20 Executive talk: Lars Nittve, M+ 22 Young Professional interview:
Fredrik Dahlberg and Fredrik Suter
28 Feature: Fredrik Härén
22
30 Chamber activities in Hong Kong 34 Chamber activities in Beijing 36 Chamber activities in Shanghai 38 New members
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46 Extra General Meeting in Hong Kong 48 After hours 50 The chamber and I: Joakim Hedhill Swedish Chamber of Commerce in Hong Kong
Swedish Chamber of Commerce in China
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4 Editorial
reflect the views of the publisher. Editorial management, design and printing Bamboo Business Communications Ltd Tel: +852 2838 4553 Fax: +852 2873 3329 www.bambooinasia.com bamboo@bambooinasia.com Art director: Johnny Chan Designer: Victor Dai English editor: Chris Taylor
No.042011
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DRAGONNEWS • NO.04/2011 3
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EDITORIAL
When it’s time to do business, we’re exceptionally open.
Mats Harborn Chairman Swedish Chamber of Commerce in China
Ulf Ohrling Chairman Swedish Chamber of Commerce in Hong Kong
China contributes to a more diverse world Dear Reader, In this magazine we have written many times about Swedish management in China. In this issue, we turn the table around and look at Chinese management through the eyes of Swedes employed within a Chinese company or in a company owned by a Chinese. It is interesting reading. One thing that stands out is speed. Things move more quickly in a Chinese company and decisions are made swiftly – and as one of our Chinese members said once at a seminar in which we compared management styles, “In the past, the big ate the small – today, the fast eat the slow”. The pace at which Chinese society and Chinese companies have changed over the past 10 years, since China joined the WTO, is truly breathtaking. There is a drive and a power propelling growth that is hard for a Westerner to relate to, as to a large extent it has its roots in the collective desire of the Chinese to reinstall the position of China in the world after almost two centuries of humiliation.
foreign acquisitions and with foreign staff in a more natural way. The likely effect will be even more foreigners employed and working inside Chinese companies. It is also likely that foreigners will assume leading roles in Chinese companies as there is a shortage of qualified and experienced Chinese managers capable of running multinational companies. The trend of Chinese companies buying up foreign companies has just begun. Both of these trends are a consequence of Chinas’ economic integration into the world and something that we should take into consideration, embrace and make the most of. Some 40 years ago the West was afraid of Japan and 20 years ago we started worrying about South Korea. Now we can say that the world has become a more diverse place with large global Japanese and South Korean actors contributing to the global economy. We are quite sure that a decade or two down the line we will conclude that Chinese global players have also contributed to a more diverse and richer world.
As China matures, grows larger and gets more powerful, both politically and economically, we will also see a breed of more confident Chinese managers who will deal with
We tend to see China coming from isolation onto the world stage as something new and unique. However, as late as between 1911 and 1949, China was an integral part
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of the world scene and took an active part in shaping the world at that time. China is now, again, entering this stage, which should be the normal relation between China and the rest of the world. Irrespective of political and other differences a higher degree of economic integration and inter-dependency benefits everyone in the longer perspective. This was, by the way, the very basic idea behind the formation of the European Union. We are witnessing the emergence of a truly multi-polar world where players, large and small, co-exist on increasingly equal terms. The question of which type of management will be the best suited to deal with these changes cannot be clearly answered. As individuals become increasingly important and the entire world is their market, probably the most important thing is to find a management model that suits the needs of a particular company best creates the best working environment for its staff – because it is motivated individuals, no matter whether Swedish, Chinese or any other nationality, that runs a successful business. We would also like to wish all our members a very merry Christmas and a happy and prosperous New Year!
Every business has a different story and a different goal. We understand that. Over many years in this market of unique opportunities, we’ve developed the local knowledge, resources and connections needed to turn ambitions into reality. That’s why we’re one of the most well-established northern European banks in the region. For corporates, financial institutions and private banking clients, we’re ready to listen and cater to your needs – in Beijing, Shanghai, Hong Kong, Singapore and New Delhi. Discover more at www.sebgroup.com/asia
Continuous CSR improvement is the key Chinese companies working with corporate social responsibility (CSR) in a systematic and holistic way will gain competitive advantages, according to Anders Wollter and Camilla Goldbeck-Löwe of the Centre for Corporate Social Responsibility at the Embassy of Sweden in China. Text: Anders Wollter, anders.wollter@foreign.ministry.se Camilla Goldbeck-Löwe, camilla.goldbeck-lowe@foreign. ministry.se Photo: Dan Fjeldheim-Ek
A
round this time of year, Swedes living abroad inevitably call to mind all the pictures and memories of Swedish Christmas celebrations. This year adds an extra, bright and positive picture, courtesy of the Swedish Chamber of Commerce in Hong Kong. This is the picture of how our traditional Christmas decorations are manufactured, not only responsibly, but also in a factory looking surprisingly “Swedish”. The study visit to the Shenzhen supplier of Swedish retail group ICA was part of the Hong Kong chamber’s much appreciated 25th anniversary seminar, appropriately themed around corporate social responsibility (CSR). As we are both relatively new to China and feel that CSR issues should primarily be ”owned” and run by companies themselves, we think it would be presumptuous to try to lecture Swedish companies in China on what to do in their CSR work in China. We have the greatest respect for all the positive work and the efforts put into CSR by Swedish companies in China. And for companies looking at developing operations and supply chains in line with CSR, the Swedish Trade Council is running an excellent programme within ”Sustainable Sweden” (contact person: Anita Jonsson, Swedish Trade Council, Shanghai). Nevertheless, we would like to share with you some observations. The CSR centre is a focal point for CSR efforts initiated by Swedish public organisations in China (we cooperate closely with the Consulates General in Hong Kong and Shanghai, the Swedish Trade Council and the Swedish Institute).
Traditional Swedish holiday decorations are manufactured in South China in factories that have learnt much about CSR.
The centre is also in charge of administering the unique agreement on CSR between the Swedish government and China’s Central Government. Having the privilege of working on CSR issues with Chinese public agencies and industry representatives alike, we feel we can create a connection between practical CSR work and global policy-making. CSR in China today is actually far more widespread than most people might imagine. We are looking at a strong and positive trend in the country in which many Swedish companies are pioneers. But the difficulties and challenges are many, with one specific challenge for Swedish companies being discussion of how far back in the supply chain their responsibility goes. Another challenge is gaining acceptance for and understanding of CSR issues within the local “eco-systems” of industrial development zones and local and regional governments in China. CSR is not created over night, let alone the fair and sound public governance that is the basic prerequisite for CSR to work. But knowledge and insight into CSR issues is growing in China, creating the critical mass needed for change. We see connections made between CSR issues and traditional Chinese culture and values of responsibility. We are also seeing a growing understanding that CSR can and should go beyond pure philanthropy (for our part we would argue that this is not part of CSR). With the attention CSR issues gets from central government agencies in China today, we believe companies working with CSR in a systematic and holistic way will gain competitive advantages. Chinese companies see the potential competitive edge as well. This is especially true as they venture abroad, finding themselves compared to international players, and as China emerges as an active international investor and creator of production. Some Chinese companies are also starting to acknowledge that CSR, if really allowed to permeate the entire organisation, contributes to not only productivity and quality, but also to adaptability and predictability. In this perspective, it is actually not hard to convince Chinese companies and other players that you can build a business case for CSR. Simple improvements in the environmental field, for example to reduce emissions,
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It is actually not hard to convince Chinese companies and other players that you can build a business case for CSR.” will mean evident savings in raw materials and energy, and can thus create economies for companies. Swedish experience and knowledge within environmental and process technology has a big role to play here. But reducing the emissons and raw material inputs, important as this is, does not alone mean that the full potential of CSR is realised. The breadth and wholeness of CSR is still lacking and the next steps will be harder, especially since they are more long term in nature and results. CSR in terms of fair working conditions, fighting corruption and respect for human rights demands that the whole organisation is involved in the CSR work. Often substantial changes in management and corporate culture are needed, but this is a change that is bound to be favourable for the company operation, at least long term. This fact is acknowledged by the Chinese we speak to and we also see how Swedish companies are helping their Chinese partners achieve these changes. One of today’s mega-trends is the increasing cost of labour in China coupled with the growing insight that raw materials and energy are neither unlimited nor cheap anymore. Processed input goods are also getting more expensive and technologically more advanced than before. A major initial way of adapting to this new situation for Chinese companies has been to increasingly have the present workforce work overtime. This is not sustainable. The pool of cheap labour is decreasing. It is also likely that China’s cheap labour pool will become less relevant. Companies will need
to economise their use of staff, competence, energy and input goods in entirely new ways.
ner, presented its joint programme for 2012. We will continue the CSR training we are doing throughout China. So far, 450 strategically placed officials have received the training Achieving profitability is an issue that will always be central stage for every company. in eight different training sessions. We will It is never “finalised”. In the same way, work also increase our communications activities, on sustainability within the organisation can presenting media seminars and working on never be finalised or achieved. Continuous improving our Swedish-Chinese website. improvement with CSR is key, and one examFurthermore, the coming year will see not ple is how Swedish companies could be much only policy dialogues but also a Swedish-Chibetter in reporting how they have dealt with nese high-level meeting for business leaders and their social and environmental responsibilities. government authority heads. Another project The professional services company KPMG we will initiate in 2012 is an alumni network conducts a review every three years of how large for the Chinese officials who have completed corporations are handling and declaring their our CSR training, and work together with the CSR commitments. In the latest study of the Swedish Institute’s master CSR management 100 largest companies in 34 countries Sweden programme for young Chinese executives. It is has slipped considerably, from 7th to 13th place. our hope that this will further spread knowledge This is despite the fact that the about important CSR issues as share of Swedish corporations well as enabling our Chinese that declare their sustainability training participants to build commitments actually has their networks and exchange increased from 60 per cent to practical experiences from their The number of strategically 72 per cent. One reason might work within the CSR field. placed Chinese officials that be that companies from other have received CSR training countries now are doing more We will also work to from the Swedish CSR centhan they used to. strengthen the connection betre in Beijing in co-operation Accounting and declaring tween the international policy with the Chinese Ministry of CSR commitments is a first work taking place within, for Commerce (MOFCOM). vital step to strengthening instance, the OECD and the sustainability. But the step to United Nations and our CSR actual change in sustainability issues is a lot work and activities on the ground in China. bigger. This is a picture supported by, for inOne example is the recent appearance by Swestance, a study from Uppsala University of the den’s CSR Ambassador Lisa Emelia Svensson at consequences of new guidelines for sustainthe 25th anniversary conference of the Swedish ability reporting by Swedish state-owned comChamber of Commerce in Hong Kong. panies. The report was commissioned from This is all a way of saying that a light can the Swedish Ministry of Enterprise, Energy be seen at the end of the tunnel. We are really and Communications and it was published in looking forward to a strengthened dialogue September 2010. with people from the business world and the members of the Swedish Chambers of Commerce. And during the Christmas holidays we The CSR centre at the Embassy of Sweden has recently, together with the Ministry of will especially enjoy those Christmas decoraCommerce (MOFCOM), a key Chinese parttions from Shenzhen. b
450
Anders Wollter is Minister Counsellor and head of the CSR centre at the Embassy of Sweden in Beijing, as well as being in charge of CENTEC, the embassy’s centre for cooperation in environmental technology and sustainable urban development. Camilla Goldbeck-Löwe is the project manager at the Embassy’s CSR centre.
DRAGONNEWS • NO.04/2011 7
Head of Greater China and
Dan Lindwall General Manager Hong Kong branch Dan Lindwall Head of Greater China and Head of Greater China and General Manager Hong Kong branch General Manager Hong Kong branch
G lo b a l S n i p p ets
Stephen Chan
Hong Kong branch Stephen Chan Head of Corporate Banking Head of Corporate Banking Hong Kong branch Hong Kong branch
China opens up for foreigners n China’s central authorities have set down a more open policy to attract top-notch foreign talents to help promote the economic and social development and global competitiveness of the nation.
Iceland rejects Chinese tycoon’s land purchase
QUOTE
n The Chinese Zhongkun Group, led by the wealthy entrepreneur Huang Nubo, made a bid to buy a vast piece of land on the north shore of Iceland, in a deal that would have been worth some US$8.5 million. However, Iceland’s Interior Ministry rejected the application, in part because no foreign buyer had ever bought so much land in the country. Huang had sought to buy 30,639 hectares of land and create a coastal nature retreat that should attract some 10,000 visitors per year and create jobs for Iceland, according to the South China Morning Post. The country is recovering from the collapse of its banking industry in 2008. Some critics expressed concern that allowing Huang to purchase the land could give China a strategic toehold in the Arctic Circle.
“I don’t think China is coming in here as a Trojan horse.” Haris Pamboukis, former Minister of State in Greece, who describes China’s investment strategy in Europe as “discreet and well thought-out”.
Did you know … n … that the struggling Swedish and former General Motors-owned carmaker Saab is not the only company trying to sell stakes to Chinese firms to secure its future? Victor Meijers, a Dutchman who is the only foreign global partner in DeHeng Law Offices, one of China’s big law firms, says to The Economist that he gets several inquiries a month from struggling European firms looking for a Chinese so-called white knight to save their companies.
Wen pushed the button n In late 2004, Premier Wen Jiabao formally announced, “The Chinese government encourages more enterprises to go global.” Then, the race to buy companies overseas began in earnest. The number of foreign acquisitions made by Chinese companies rose rapidly: They doubled from 40 in 2003 to 82 in 2006 and reached a peak of 298 in 2008. In 2010, China’s outward foreign direct investment (FDI) reached US$57.9 billion, nearly 20 times 2003 levels, and accounted for over 5 per cent of global FDI. Since 2007, Australia has become one of the world’s largest destinations for Chinese FDI.
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According to the newly unveiled National Medium and Long-term Talent Development Plan (2010-2020), the government will work out favourable policies in terms of taxation, insurance, housing, children and spouse settlement, career development, research projects, and government awards for high-calibre overseas talents who are willing to work in China. Furthermore, the government will also improve the system for giving permanent residence rights to foreigners, explore the potential of a skilled migration program, and work out measures to ensure a talent supply, discovery and appraisal system. The national plan, a blueprint for creating a highly skilled national workforce over the next decade, aims to transform the country from being “labour-rich to talent-intensive.”
Where to invest? n Chinese outward investment has a short history, but the timeline also points to the major role the Chinese state has played. Until late 2004, outward investment was confined to a few friendly countries, such as Sudan and Pakistan. Then Lenovo’s purchase of IBM’s personal computer unit seemed to indicate it was possible to purchase American non-bond assets on a large scale. The rejection of a bid for the US oil company Unocal by the China National Offshore Oil Corporation (CNOOC) in mid-2005 almost immediately closed that door. As an investment target for the People’s Republic of China, Australia is quite similar to America, and after a major Chinese state firm had been blocked by the US government, others shifted their attention to Australia. Less than two years later, attention shifted to sub-Saharan Africa. By 2009, the primary focus was South America, which has now drawn over US$60 billion in Chinese non-bond investment. It is entirely possible that North America will be next: There is a herd mentality among large state investors, according to a report by The Heritage Foundation. The countries attracting the most Chinese investment are Australia, the US and Brazil, in descending order, with Argentina the most popular recent destination. In Brazil, China is now the No 1 trading partner. In terms of the sectors that draw the most interest, energy is the clear leader.
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local knowledge and experience as well as a high level of flexibility and personal service. We strongly As your banking partner we are here to help your business succeed. Banking with us you benefit from As yourinbanking partner we are here to helpinyour business succeed. Banking with us you benefit from believe long term, two-way relationships the traditional way. local knowledge and experience as well as a high level of flexibility and personal service. We strongly local knowledge and experience as well as a high level of flexibility and personal service. We strongly believe in long term, two-way relationships in the traditional way. believe in long term, two-way relationships in the traditional Our offering includes full-service corporate banking, from all way. types of financing to a wide range of cash management services. As an experienced member of the local clearing system, our payment services Our offering includes full-service corporate banking, from all types of financing to a wide range of cash Our offering to includes are second none. full-service corporate banking, from all types of financing to a wide range of cash management services. As an experienced member of the local clearing system, our payment services management services. As an experienced member of the local clearing system, our payment services are second to none. are second to find none. Contact us to out more about how we can help your business. Contact us to find out more about how we can help your business. Contact us to Head find out about how weGeneral can help your business. Dan Lindwall, of more Greater China and Manager Hong Kong branch, +852 2293 5388 Stephen Chan, Head of Corporate Banking Hong Kong branch, +852 2293 5322 Dan Lindwall, Head of Greater China and General Manager Hong Kong branch, +852 2293 5388 Dan Lindwall, of Greater China and General Hong 8877 Kong branch, +852 2293 5388 Johan Andrén,Head General Manager Shanghai branch,Manager +86 21 6329 Stephen Chan, Head of Corporate Banking Hong Kong branch, +852 2293 5322 Stephen ofBranch Corporate Banking Hong Kong branch, +852 2293 5322 CatherineChan, Gao, Head Deputy Manager Shanghai branch, +86 21 6329 8877 Johan Andrén, General Manager Shanghai branch, +86 21 6329 8877 Johan Andrén,Chief General Manager Shanghai branch, +86 21 6329 8877 Jason Wang, Representative Beijing, +86 10 6500 4310 Catherine Gao, Deputy Branch Manager Shanghai branch, +86 21 6329 8877 Catherine Branch Manager Shanghai branch, Amy Chen,Gao, ChiefDeputy Representative Taipei, +886 2 2563 7458 +86 21 6329 8877 Jason Wang, Chief Representative Beijing, +86 10 6500 4310 Jason Wang, Chief Representative Beijing, +86 10 6500 4310 Amy Chen, Chief Representative Taipei, +886 2 2563 7458 Amy Chen, Chief Representative Taipei, +886 2 2563 7458
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Photo: iStockphoto
Employed by the Chinese
As Chinese companies are increasingly going global, more people in the West have to get used to the fact that their employer could one day be Chinese. Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com
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O
nly a decade ago, China joined the World Trade Organisation (WTO) and many analysts asked if China was really ready for it and whether it would adhere to international norms. At that time, nobody could ever have foreseen that China, 10 years later, would be asked to help bail out Europe from a financial crisis that is threatening the future of the euro and the global economy. Yet that is precisely what has happened. Since its WTO accession, China has witnessed a massive economic boom, thanks to domestic reforms and the opening up of certain industries for foreign investors. There has been a shift of economic power in the world and today, China with its vast capital reserves, has become a very important player in the global economy. China’s move into the WTO has resulted in a world significantly different from the one that was dominated by developed economies, led by the United States.
Volvo Car Corporation from Ford Motor An important part of China’s strategy in 2010. is encouraging companies to go global and • China National Bluestar bought the polyacquire assets overseas. China has learnt the silicon company Elkem from the Norweproduction process very well, but is now on gian conglomerate Orkla in January 2011. the hunt for technology and brands. It is likely that this trend will continue. Following the financial crisis in 2008So whether you like it or not, 2009, China has become more you had better get used to the active in terms of mergers and fact that your employer in the acquisitions (M&A) abroad. The near future could be Chinese ... current crisis in Europe could provide more opportunities. China’s accession In recent years, there have Dragon News has talked to to the World Trade some people who already work been a number of Chinese Organisation (WTO) for Chinese-owned companies to takeovers of Western companies. 10 years ago has hear about their experiences. Examples include: changed the world. In 2008, Anders Karlborg • In 2008, Changsha-based and Mikael Malm both decided Zoomlion, a construction to leave Ericsson and start working for Ericequipment manufacturer, acquired a comsson’s competitor Huawei Technologies in petitor, Italy’s Compagnia Italiana Forme Shenzhen. They were headhunted and were Acciaio SpA (CIFA). among the first Westerners to be employed • Goldwind, a Chinese wind-turbine manuby Huawei in China. They joined after facturer, bought the German wind-turbine three months. designer Vensys in 2008. “It was of course a big step to take,” • Chinese auto maker Geely acquired
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Rising concern over Chinese takeovers Increasing Chinese foreign investments are starting to worry governments and public opinion in the West. Capital and companies from China are going global in a way never seen before. China’s first wave of takeovers included many failures, such as the consumer electronics manufacturer TCL’s acquisition of France’s Thomson Electronics (see separate article), the Shanghai Automobile Industry Corporation’s (SAIC) takeover of South Korea’s Ssangyong, the insurance company Ping An’s investment in the Belgian-Dutch financial services group Fortis and the mobile phone maker Ningbo Bird’s strategic partnership with France’s Sagem. The Chinese companies either had to pull out of or sell off their acquisitions. However, Chinese companies have learned from their mistakes and fine-tuned their strategies for foreign direct investment. “Instead of buying global brands, sales networks, or goodwill, Chinese companies now mainly try to acquire concrete assets, such as mineral deposits, or state-of-theart technologies and R&D facilities. In addition, Chinese companies no longer use their overseas takeovers to gain market share abroad; they deploy them to strengthen their positions in the Chinese market,”
writes Peter J Williamson and Anand P Raman in the Harvard Business Review. “It’s too soon to say whether the new approach is working, but the initial results are encouraging. Wisdom comes from good judgment; good judgment comes from experience, and – say the Chinese – experience comes from all the times you use bad judgment. By failing spectacularly and early, China’s takeover artists could well have discovered how to succeed in the future,” says Williamson and Raman.
Peter J Williamson/Anand P Raman
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A poll conducted for the BBC World Service in March 2011 found rising concern about the eastward shift in economic power: a majority of Germans, Italians and French view China’s rise negatively. Americans and Canadians feel similarly. These proportions have gone up since a similar survey in 2005. There is also an increasing fear also among governments in the West that politics, not profit, might drive state-owned Chinese companies’ decisions. For example, in the US there is a widespread opinion that Chinese telecommunication equipment firms pose a threat to its national security. Australia and Canada used to be open markets for foreign acquisitions but are now creating hurdles for China’s state-backed firms, particularly in natural resources. The magazine The Economist opposes such kinds of reactions. “China is miles away from posing this kind of threat: most of its firms are only just finding their feet abroad. Even in natural resources, where it has been most active in deal-making, it is not close to controlling enough supply to rig the market for most commodities,” the magazine concludes.
Some Chinese investments could, however, become extra-sensitive, especially if they are visible to a broader audience – for example the classic black cabs in London, a symbol for Britain. They are made by Manganese Bronze, which is today partly owned by Geely, the Chinese carmaker that also owns Volvo. This development is not dissimilar to when Japanese firms entered the American market in the 1980s. When Mitsubishi’s real estate company in 1989 acquired the entire Rockefeller Centre complex in New York – a strong symbol of America – it caused a widespread Japan-bashing in the US.
By failing spectacularly and early, China’s takeover artists could well have discovered how to succeed in the future.”
recalls Karlborg who is vice president at Huawei. “At that time I was stationed in Dubai, but I had worked six years for Ericsson in China before. My family liked it there and supported the move.” Malm, who is director at Huawei’s delivery planning and management department, had also dealt with China for many years while working for Ericsson and other employers. “China felt like the right choice for me and my
Members of Congress, union leaders and business executives expressed worries that growing Japanese economic influence might seriously threaten the future wealth and power of the United States. Similar concerns are likely to intensify, both in Europe and the US, over the next few years as Chinese firms continue their shopping spree. While Chinese foreign direct investment in Europe is still small compared with its investments in other regions, it has grown quickly over the past couple of years. And in 2010 Europe overtook the United States as China’s largest trading partner.
family,” he says. Huawei was founded in 1988 and has grown rapidly since then. Today, it has a global workforce of some 120,000 people. “The corporate culture here is very strong and there is an extreme loyalty with the company among the staff. Without this loyalty the company couldn’t have grown so fast,” says Karlborg. When he joined Huawei he noted that
The classic black taxis in London are now partly owned by Volvo’s owner Geely.
the level of English was low, so he implemented a programme to improve English skills. “Our objective was that between 80 and 90 per cent would pass the final test, which they did. It boosted the competence level in the company.” Both Karlborg and Malm enjoy working in a fast-growing company where decision-making is just as fast. “You get more involved. If you are part of a decision
There is an extreme loyalty with the company among the staff.” Anders Karlborg, Huawei
here you will also be part of carrying out what you have decided. It was not always like that in Sweden,” says Karlborg. Much of the information-sharing and communications in the company are carried out through meetings. “If a manager invites people to meetings they all come but many also bring other colleagues who were
DRAGONNEWS • NO.04/2011 13
not invited,” says Malm. He thinks that meetings in a Chinese company are more to the point, compared to Sweden. In China, people can have opinions but in the end it is the boss who decides.” For Karlborg and Malm succeeding as a non-Chinese manager in a Chinese company means making adjustments, being perceptive and willing to compromise if you want to get things done. “In many ways it is easier to be a manager here than in Sweden. Here, people come to work every day and they never refuse to work overtime or attend a meeting in the evening,” says Karlborg. Team-building activities are also important in a Chinese company, whether it is football, badminton or joint dinners. “Not many Swedes are working in Chinese-owned companies today,” says Malm. “I feel it is a great benefit to get to know Chinese management from the inside. Chinese companies have a lot to offer the world. Perhaps Western leadership is not always the best? Perhaps Chinese leadership or a mix of Chinese and Western leadership is better?” One of China’s high-profile acquisitions so far is Geely’s takeover of Volvo Car Corporation from Ford Motor in August 2010. The deal was in general regarded as positive for Volvo and it was supported by the trade unions and by a former chief executive, Hans-Olov Olsson. Per Bjarneberg has worked at Volvo since 1986. Over the years he has worked under Swedish, American and now Chinese owners. Today, Bjarneberg is responsible for customer service at Volvo Cars China in Shanghai. “We don’t really notice the change of ownership in our daily work. However, everything goes faster today. There is a clear ambition from our management to increase the speed of change, simplify things and delegate decisions,” says Bjarneberg. He sees it as an advantage that Volvo now is a smaller company than its main competitors. “Since Ford is a big company, decisions took longer. Even when Volvo was Swedish-owned, decisions took longer than today,” he says. “We work more long-term today and it is a difference compared to the last years with Ford, when we were more
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WTO changed everything China is a totally different country today compared to 2001 when the country entered the World Trade Organisation (WTO). In November 2001, trade ministers of the World Trade Organisation (WTO) approved China’s entry after many years of negotiations. For China, it was a big gamble involving all its 1.3 billion people, its companies and the ruling Communist Party – and it worked. “China made a ‘brave and tough’ choice when it joined the WTO back then. It was also the ‘correct’ choice as the pay-off is great,” Commerce Minister Chen Deming recently said at a World Economic Forum meeting in Dalian, according to the South China Morning Post. Since the WTO accession, the central government has rewritten more than 2,300 regulations to ensure compliance with WTO commitments. The government has also abolished most import permits and export quotas and cut import tariffs from 15 per cent in 2001 to 9.8 per cent in 2010. In 2001, the value of China’s imports and exports of goods totalled US$510
billion – in 2010 the amount was US$2.97 trillion. China’s per capita gross domestic product has increased from US$800 to US$4,000 over the past decade, which means that the living standard of the average Chinese has been significantly improved. In 2001, China was the seventh largest economy in the world. Ten years later China is No 2. China is also the world’s largest automotive market. In 2000, just over a million cars or light vehicles were sold. In 2010, that number hit 16.6 million, surpassing the 11.6 million in the United States. In the financial market, China’s four big banks – the Industrial and Commercial Bank of China (ICBC), China Construction Bank, Bank of China and the Agricultural Bank of China – have become the world’s largest financial institutions, surpassing their US peers.
It is a great benefit to get to know Chinese management from the inside.” Mikael Malm, Huawei
downsizing much due to the financial situation in the market,” says Bjarneberg. “For me, with 25 years at Volvo, it feels very good at the moment.” Peter Sahlström is another Volvo veteran who started to work for the company in 1985. He has mostly worked
in purchasing and has seven years with Ford in Detroit and two years with Mazda in Hiroshima, Japan. He is now vice president for purchasing at Volvo Cars China’s technology centre in Jiading, north-west of Shanghai. Sahlström agrees with Bjarneberg that decision-making is much faster today than
There are fewer levels in the company now.” Peter Sahlström, Volvo Cars China
Everything goes faster today.” Per Bjarneberg, Volvo Cars China
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ever before in the Volvo organisation. “There are fewer levels in the company now, so decisions can be made faster and informal dialogues go smoother. It also feels good that we have a clear plan of how to move forward until 2020,” he says. Even if some of the time that Ford was owner was rather turbulent for Volvo, Sahlström says that they learnt a lot from Ford that now is very useful in the new organisation. For example, he recalls that at Ford they could have meetings scheduled for 30 minutes, which took the Swedes by surprise. “At Volvo in Sweden, you never had a meeting that lasted less than an hour,” he says. This more efficient meeting structure has now been brought to China as well. The traditional Swedish fikapaus, or coffee break, was not possible to implement in the Ford organisation, but Sahlström says it is now a part of Friday afternoons at Volvo in China. “It was a new concept for our Chinese colleagues. They came to the coffee break but they wanted to know what we should talk about. We had to explain that at a coffee break we do not have an agenda, we can talk about everything,” says Sahlström. Volvo has implemented a programme of socalled matched pairs, which means that at management levels there is both a Chinese manager and an expatriate.
16 DRAGONNEWS • NO.04/2011
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When it all went wrong … Li Dongsheng was one of the pioneers when Chinese companies started to go global. His company TCL took over the French company Thomson in 2004, but then things started to go wrong. Today, TCL has recovered and is one of the world’s largest makers of TV screens. Li Dongsheng comes from a small village in Guangdong in southern China. Li founded his company, Telephone Communication Ltd (TCL), in the early 1980s, originally by making cassette tapes and then later on TVs and telephones. In 2002, TCL was one of the first Chinese companies making acquisitions abroad by purchasing a bankrupt German television manufacturer, Schneider Technologies. Two years later, TCL acquired the majority of the French consumer products company Thomson, which owned the US electronics brand RCA. TCL also went into a mobile phone joint venture with the French company Alcatel. Li was at the top of his career and was so proud when President Hu Jintao came to the signing ceremony of the Thomson deal and when the French president Jacques Chirac made Li an Officer of the Legion of Honour, a French civil and military honour. Coincidentally, Li had also for decades used the name Tomson as his English first name. “The chance to become a global television company just doesn’t come along every day. We checked the risks, but it seemed to me that this was a unique opportunity,” Li recently told the South China Morning Post.
“We have to be humble and admit that we do not know China as well as they do. At the same time, our Chinese colleagues do not know Volvo as well as we do. We simply have to help each other,” says Sahlström. b
18 DRAGONNEWS • NO.04/2011
However, the joint venture TCL Thomson Electronics (TTE) lost 143 million yuan by the end of 2004. In 2005, it lost another 820 million yuan and in 2006 the company suffered a loss of 1.93 billion yuan. The main problem was that Thomson had focused on traditional cathode-raytube TVs at a time when the market had shifted to liquid crystal display TVs, that is flat-panel screens. TCL has admitted that the company didn’t know much, at that time, about the European market. None of the employees from TCL could speak French and the local employees in France did not trust the Chinese. From 2007, TCL started to restructure its business which meant lay-offs of staff and shut-downs of factories in Europe. The Chinese company also changed its management style. Now, they wanted the foreigners to work in their way. “When we first started to work with foreign companies, I looked up to them,” says Li. “Now, after years of internationalisation, I still think they’re big, but I can at least tell how big they are. My company is now able to compete with them
in some fields, and the gap between us is getting smaller.” Since 2007, TCL has made a remarkable turnaround and for the first half of 2011, the company earned 539 million yuan, a 241 per cent increase from the year before. TCL is today the seventh-largest TV brand according to the market research firm DisplaySearch. He Zhiyi, a business professor at the Beijing University, told the South China Morning Post that the early losses were a price TCL had to pay. “In the early days of globalisation, the lack of knowledge of the culture, systems and the laws in foreign countries caused problems and took a long time to overcome. After the company learned of the problems, adapted to the local environment and reconstructed the company, the benefits of globalisation gradually emerged.” He added: “TCL shouldn’t give up their globalisation. What they have done so far is only a start. I think TCL’s globalisation is a symbolic event for Chinese enterprises.”
SWEDEN’S LEADING BOARDING SCHOOL High school and Middle school programmes in Swedish or English. The IB Diploma has been established at SSHL for over 30 years with a proven record of success. Numerous free time activities and close contacts with universities and industry. Our school is located in idyllic Sigtuna on the shores of Lake Mälar, close to Stockholm cultural life and Arlanda airport. Come and visit SSHL, an international version of Sweden. We are happy to show you the school and our activities at any time. We also offer a trial period, giving you the opportunity to experience school and boarding life. During the summer we offer summer courses in Swedish and Mathematics and a confirmation camp.
SIGTUNASKOLAN HUMANISTISKA LÄROVERKET Telephone: +46 8 592 571 00 www.sshl.se
Asia does not have a leading contemporary art museum. Lars Nittve, former director of Tate Modern in London and Moderna Museet in Stockholm, has started to create one in Hong Kong. Text: Jan Hökerberg, Bamboo, jan.hokerberg@bambooinasia.com
He will put Asia on the art map A
fter nine successful years as director at Moderna Museet in Stockholm – one of the world’s leading museums for contemporary art – Lars Nittve was forced to step down due to regulations for Swedish government-employed directors. He had spent more than 20 years directing museums in various countries, and he decided it was time to start teaching and do some writing. That was until he got a phone call from Henry Tang, Hong Kong’s then Chief Secretary and chairman of the West Kowloon Cultural District Authority, who asked if Nittve was interested in being the director of the contemporary art museum to be built in the city. Tang and Victor Lo, chairman of the museum’s advisory committee, told Nittve: “We want you to build the museum that Asia does not have.” “During the first part of our conversation I just said no,” Nittve recalls. “But then I started to understand the ambitions behind the museum and thought that here was a chance to do something that will not only affect Hong Kong but also Asia and even the whole world.”
A few days later Nittve said yes. Important for his decision was also that his wife, Shideh, before they met, had visited Hong Kong regularly and loved the city. Nittve admits he is not an expert on Asia, but he has been a board director of the 21st Century Museum of Contemporary Art in Kanazawa, Japan – “one of the best art museums in Asia”. Nittve was born in 1953 in Stockholm, where he studied at the Adolf Fredrik music school. He learnt at an early age how to play flute and piano as well as to sing, both solo and in choirs. “I was not bad at singing and playing, but I realised I would not really be a star so I quit,” he says. He then tried other professions such as being a photographer, a librarian and a ski instructor, before taking up studies at the Stockholm School of Economics. There, he met David Neuman, who later became the founder of the art gallery Magasin 3 in Stockholm. Neuman spent much of his time visiting art exhibitions. Nittve joined him, learnt a lot about art and became increasingly interested. After some time, Nittve decided to interrupt his economic studies.
The lack of a leading contemporary art museum in Asia has created opportunities for us.” 20 DRAGONNEWS • NO.04/2011
In conjunction with the Chinese New Year, Lars Nittve will launch his first event in Hong Kong, which is called “M+ Bamboo Theatre Exhibition”.
“I came to a point where I realised I was spending all my free time on art, but my economic studies would lead me in a totally different direction,” says Nittve. That was a turning point. He left the Stockholm School of Economics and chose to study art history at Stockholm University instead. “It was great,” he says. “It felt like I had finally had come home.” It did not take long before he was also teaching at the university. At the same time he was an art critic at the daily newspaper Svenska Dagbladet. After graduation, he moved to New York, where he spent two years as an art critic at the influential Artforum magazine.
move back to Sweden in 2001. However, the museum’s building had to be renovated after problems with mould and damp. During the renovation, which took two years, Nittve had to run a museum without home. “We arranged exhibitions at a lot of different places, from Riddarhuset [The House of Nobility] to construction sites. We also had an exhibition bus that toured around the country,” says Nittve. That experience is standing him in good stead in his new job. Since the Hong Kong museum, which is called M+, will not have a building until 2017, Nittve has initiated something he calls Mobile M+, which means that the museum can launch next year on a small scale, with events in different locations. The first one will be the “M+ Bamboo Theatre Exhibition” at the location of the forthcoming Xiqu Centre on Canton Road during the Chinese New Year festivities in January 2012.
Back in Sweden in 1985, Nittve applied for and got a job as chief curator at Moderna Museet in Stockholm, Sweden’s leading contemporary art museum. As a curator he learnt how to combine different skills such as project management, communications and knowledge about art. Nittve has a budget of When Olle Granath was HK$1.5 billion for the art collecabout to resign as director, Nittve tion. So far, not a single piece has thought he had a chance to get been acquired, but Nittve is in the job. But he didn’t and instead continuous discussions with arthe moved to Malmö in southern ists, galleries, auction companies Sweden, where he helped the and private collectors. The number of financier and art collector Fredrik “The lack of a leading conannual visitors to Roos set up and run the Rooseum temporary art museum in Asia the Tate Modern in Centre for Contemporary Art, a has created opportunities for us,” London. Lars Nittve job he did for five years. he says. “Many collectors have had expected oneIn 1995, Nittve was approblems with what to do with and-a-half million. pointed director of the Louisicollections as they grow older. ana Museum of Modern Art in Often their families cannot, or Denmark, where he became the first director do not want, to take over and the collectors after the legendary founder Knud W Jensen. are also reluctant to sell something they have After three years at Louisiana, he accepted an built for decades. A museum can offer them a offer to be director and build London’s first long-term home for their collections.” contemporary art museum, the Tate Modern. Asian art will play a dominant role in “I had a fantastic time in London. I was the museum. Nittve aims to build a collecthere two years before the museum opened tion in which the core of the art is reprein May 2000 and stayed one-and-a-half years sented by Hong Kong, China and the rest of after that. The Tate Modern became a great Asia. Chinese contemporary art will have a success. We had hoped to get one-and-aprominent place. half million visitors per year but we got more “If you visit [the contemporary art than five million. Today it is ranked as one museum] Centre Pompidou in Paris, there of the world’s top three or four contemporary is no doubt that you are in France. I want to art museums,” says Nittve. create the same feeling here with M+, You In London, he met Shideh Shaygan should immediately know that you are in who had come from Iran to Sweden when Asia,” says Nittve. she was 18 and after finishing her architect He will not hesitate to show controversial studies had moved to London. They got art in the museum. “You cannot get respect married in 2004. Nittve has a son, 23, from for running a contemporary art museum if a previous marriage. you don’t dare to be controversial. Our mission is to show the most important, the best and the ‘hottest’ visual contemporary art in Moderna Museet in Stockholm had now decided that they really wanted Nittve this part of the world,” says Nittve. b as director and managed to convince him to
5 million
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Fredrik Suter (left) and Fredrik Dahlberg are used to a deadline-driven flexible working style.
Marketing is like
planting bamboo Marketing is necessary if you want your business to grow. But marketing is like planting bamboo. In the first six years, the seedlings only grow about 12 inches high. Then suddenly in the seventh year the bamboo sprouts to six feet tall. In marketing, it also takes time for results to appear. Prospects need to see your name many times before they remember you and recognise your value.*
Problem solving via digital means Fredrik Dahlberg and Fredrik Suter are the founders of an e-publishing agency called Triple Happiness. Last summer, the duo released their first product, an iPhone app called Hong Kong Taxi Translator, and they are eager to make reality of their many more ideas in the near future. Text: Katrin Vervoort Hansson, akikokatrin@gmail.com PHOTO: Tyra Dahlberg
22 DRAGONNEWS • NO.04/2011
F
redrik Dahlberg and Fredrik Suter initially met in Stockholm in 2010 during an intercultural training in order to prepare them for their respective spouses’ new assignments in Hong Kong. They realised early on that they were both planning on using the opportunity given to them to take a step out of their daily work routines to find new opportunities to broaden their professional experiences.
Hong Kong is truly an entrepreneurial haven where everything is possible.” Fredrik Dahlberg
Our company, Bamboo, can help you with that. It is our business is to help our clients build longterm relationships with their customers, staff and other stakeholders. * The similarity between marketing and planting bamboo was originally conceptualised by George Torok, a marketing expert and co-author of the book Secrets of Power Marketing.
Bamboo Business Communications Ltd (Hong Kong) +852 2838 4553 Bamboo Business Consulting (Shanghai) Co, Ltd +86 21 6472 9173 Jan Hökerberg managing director jan.hokerberg@bambooinasia.com Johan Olausson sales and marketing manager johan.olausson@bambooinasia.com www.bambooinasia.com
“Sometimes it may seem strange that we drive ourselves like this, but with both of us being deadline-driven and happy with the approach, we take it as a given,” Dahlberg says. An additional benefit to Dahlberg, father of two, is that he can spend more quality time with his children by working in this manner.
In this field, it’s having a critical mass of apps that leads to success.” Fredrik Suter
This is how the app looks on an iPhone.
portunity to type in an address and find the Before moving to Hong Kong, Suter phonetic Cantonese pronunciation as well as a spent the majority of his professional life flashcard to show to a taxi driver. working for digital agencies focusing on user An additional benefit to visitors from experiences across media platforms, while abroad is that, under most circumstances, the Dahlberg continues to run an advertising app does not require any additional data fees, and branding agency called R-B-K, Rekwhich can be very expensive. The app has lambyrån Kamraterna. been downloaded from iTunes accounts from After moving to Hong Kong, the pair all over the world, and since Dahlberg and continued to meet and decided to work Suter have not put any PR into their product, together as partners in a new venture. In they know that word of mouth has been the order to get started, Suter and Dahlberg set primary driver behind their sales. up companies in Hong Kong, which proved The duo is fully supportive of the business to be much easier than either ever thought it model provided by Apple and Google to supwould be. port the app markets, feeling “We can honestly say that that the 30 per cent fee to the it was nearly more difficult to parent companies is truly a open the necessary bank acfair price to pay for access to a count and even that took less broad consumer base. than an hour. Hong Kong is The fee Apple and Following on Hong Kong truly an entrepreneurial haven Google are charging Taxi Translator, Triple Hapwhere everything is possible,” developers of apps. piness is now working on Dahlberg says. releases for Macau, Beijing and Shanghai. In the beginning of their cooperation, the While the idea behind the app is very pair spent time brainstorming, which led to simple, each object in the app has up to 10 business ideas that they would pursue. data sources – for example, map location, ad“From the start, we definitely had no dress and phonetic Cantonese pronunciation shortage of ideas. Even today, we might – so the actual creation is a laborious process, be tied up with the production phase of a for which the company uses a production new project but somehow, we can’t seem to crew in India. stop generating new areas and at times end After these planned releases, additional up apologising to each other for doing so,” products that are on their roadmap will be says Suter. brought to the same channels. In the end, the focus of their company, called Triple Happiness, became e-publishing that focused on solving everyday probDahlberg and Suter have a flexible working style, meeting up most days in their oflems related to travel, cultural experiences fice of choice - Cafe O on Caine Road – to and learning. align on their daily and weekly targets. Some As such they have also defined their pridays they only spend moments together; mary target consumer group as Westerners on other days they may spend 10 hours or in Asia. more. The duo credits their previous experience in agencies for their goal orientation Their first product was the Hong Kong and drive to deliver even internal milestones Taxi Translator, an Apple and Android app exactly as planned. that offers visitors to Hong Kong the op-
30%
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Given the plethora of apps, the pair knows that there are competitive offerings in the market already and that it is likely that more will come. “In this field, it’s having a critical mass of apps that leads to success – you seldom see a one-app company unless it’s in the gaming segment,” says Suter. “One of our competitors in Hong Kong is a more expensive app, which is further sponsored by paid addresses, especially luxury shopping malls.” Dahlberg concludes, “We want to keep our app at US$0.99 yet find more creative ways of generating interest from end users. We are for example now in the process of getting all Hong Kong Chamber of Commerce offices and Consulate General offices visible in our app. Some of them are now adding that Taxi Translator is a simple method of taking a taxi to come to their respective offices and we can’t be more pleased …” b Fredrik Dahlberg in brief Name: Fredrik Dahlberg Occupation: Triple Happiness founder Location: Hong Kong In Hong Kong since: 2010 Best thing about my job: “That it’s giving me the right new experiences at the right time.” Best thing about Hong Kong: Cheung Chau island What I sometimes miss in Hong Kong: “I always yearn for cleaner air!”
Fredrik Suter in brief Name: Fredrik Suter Occupation: Triple Happiness founder Location: Hong Kong In Hong Kong since: 2010 Best thing about my job: “I feel like a problem solver, adding value to people’s lives.” Best thing about Hong Kong: “Walking around the streets of Sheung Wan.” What I sometimes miss in Hong Kong: “Vivid subculture music scene, and a somewhat difficult to define lack of ‘cool stuff’ …”
Swedish banking in China We feel at home in the Chinese market and want you to feel the same. It’s a large and fast-growing market. As a result, more and more Scandinavian companies need banking solutions, such as cash management, financing in local and foreign currencies, trade finance and treasury solutions in China. We’ll help you – bringing our 20 years of experience of business in China. If you have the opportunity, please visit us in Shanghai where we’ve been located since 2001.
Swedbank Shanghai Citigroup Tower 601, 33 Huayuanshiqiao Rd. Shanghai, China + 86 21 386 126 00
Nordic touch with a Chinese edge what’s new?
launch of banking of finance practice With the legal environment for financing in China undergoing constant change, our recent launch of a Banking and Finance practice in China has been well-received. On the lending side, our team has been engaged as legal counsel by both Nordic and Chinese banks on a number of financing transactions where the banks have acted as lenders. On the borrowing side, our practitioners are advising more and more companies on legal matters and documentation concerning local financing – both interpreting the framework of rules for financing in China, that in some aspects are very strict by European standards, and in ensuring that local financing in China is compliant with parent company financing in the Nordics. Transparent and properly documented financing arrangements become increasingly important as companies’ operations in China grow and the scope and scale of local financing increases.
awards
mannheimer swartling named “clients’ choice” for eighth consecutive year For the eighth year in a row, Mannheimer Swartling has been selected “Clients’ Choice” in business law in the annual client survey “Klientbarometern”. The independent survey, conducted by BG Research, polls approximately 1,300 corporate lawyers, CEOs, CFOs and HR managers in Sweden at companies with annual turnover exceeding SEK 100 million.
mannheimer swartling ranked in legal 500 asia pacific Once again, Mannheimer Swartling has been ranked as a “Recommended” firm by Legal 500 Asia Pacific for Corporate & M&A and Dispute Resolution in The Clients’ Guide To The Asia Pacific Legal Profession.
what’s up
strong interest in our “little red book” on chinese business culture ”Quotations from a China Practice”, a book about Chinese business culture, was recently released at events and seminars held throughout Sweden and in Hong Kong and Shanghai. In their book, Thomas Lagerqvist and Ulf Ohrling, co-authors and lawyers at Mannheimer Swartling, draw on years of experience advising and working with leading Nordic companies in the Chinese market to outline how the art of doing business in China begins with understanding its culture and being able to relate to its effects in a relevant and effective way. Interest in the book and doing business in China was evident
at an event in Stockholm organized by Dagens Industri, the Swedish daily business newspaper, where approximately 150 people attended a panel discussion about China’s culture and business environment – and learned that understanding the cultural differences and knowing how to deal with them is one of the keys to business success in China. pilot tax scheme in shanghai As As of January 1 2012, a pilot scheme on tax reform will enter into force in Shanghai. Instead of Business Tax (BT), Value Added Tax (VAT) shall be imposed in certain industries: the transport sector and certain modern service industries such as R&D and technology , information technology, culture innovation, logistics assistance, tangible movable property leasing, and attestation and consultation. The scheme also introduces new VAT rates in addition to the existing rates: 11% for the transport sector and 6% for the modern services (except for tangible movable property leasing, which is subject to the existing VAT rate at 17%). It is one of the structural tax deduction measures in China with the purpose to support the development of the service industries. It aims to resolve, inter alia, the double taxation issues in the service sector. The Ministry of Finance and the State Administration of Taxation will closely monitor the implementation of the scheme in Shanghai and strive to expand it nationwide gradually during the 12th Five-Year Plan period. Businesses covered by the pilot scheme can expect certain extent of cost decrease in tax. with christmas and the western new year rapidly
approaching, we would like to express our sincerest season’s greetings!
33 / f, jardine house 1 connaught place central, hong kong, china telephone: +852 2526 4868 telefax: +852 2526 6568 25/ f, platinum no. 233 taicang road, luwan district, shanghai 200020, china telephone: +86 21 6141 0980 telefax: +86 21 6141 0983
www.mannheimerswartling.se
The speaker
“Creativity is basically change, and the Chinese are very good at rapid change and development,” says Fredrik Härén.
The speaker and author Fredrik Härén has held seminars and lectures all over the world and written seven books. His passion is creativity and he has even bought an island - where people can create new ideas - in the Philippines. Text: Erik Hellstam, erik@swedishchamber.com.cn/Torun Öhman, Torun.ohman@mpschina.cn
Making the world a more creative place T
he speaker and author Fredrik Härén leads an interesting life. So far, he has written seven books. The Idea Book has sold more than 200,000 copies in 40 countries. He has held more than 1,500 seminars and lectures all over the world and is currently working on various projects while continuing to travel the world, speaking and interviewing people. His work has resulted in him being awarded the “Swedish Speaker of the Year” in 2007. On the question of how he got where he is today he answers, “I love creativity, I love to know what is happening in the world and I love to travel. So I made that my job. Many young people today are looking for a job they enjoy and in which they can succeed. My advice to them is: Choose three things you like, and combine them into a career.” Härén also thinks that most people set their goals too low. “A goal is not something
that should ever be accomplished. Rather, it After months of travelling around the world to research his books, Härén has a should be something to strive for. If you reach broad understanding of global developments. your goals, then you have set the bar too low. “ In his view, there are challenges for Chinese His own goal for the future is very ambicompanies when going global. tious: to make the world a more creative place. “Coming from a huge national market, One of his big passions in life is creativit is sometimes hard to grasp the concept of ity, but he also has thoughts on what kind of what global means. Most Swedish companies creativity the world needs. looking for aggressive growth have a global “Creativity needs to be channelled to be perspective in their useful. A lot of creabusiness plan right tivity counteracts from the start, productivity. For whereas Chinese example, somecompanies can grow body was creative huge before they ever in inventing all the The number of copies that The Idea Book has have to consider gogames people play sold in 40 countries. ing abroad. on their smart“Global compaphones – creations nies with a strongly emphasised nationality that do not improve the world we live in. often have the problem of employees feeling Creativity should be encouraged, but within marginalised because they are not of the right specified limits. The art of managing this nationality. I tell them: ‘Don’t be a Chinese or aspect is one of the key challenges in working Swedish company. Be a company.’” with creativity,” he says.
200,000
If you reach your goals, then you have set the bar too low.” 28 DRAGONNEWS • NO.04/2011
But if being global means losing one’s nationality, doesn’t that mean losing the company’s roots? “One cannot only use one part of the metaphor. Yes, roots are where a company comes from, but without branches it will never grow. In order to be successful in many
Don’t be a Chinese or Swedish company. Be a company.”
Fredrik Härén recently spoke at a Swedish Chamber of Commerce seminar.
countries with employees of different nationalities, companies need to take a step away from national identification,” says Härén. “However, do not confuse company identity with that of the company’s products. Take IKEA for example. It is a company whose products are branded as Swedish, but whose culture is truly global. In China, IKEA is a Chinese company. In France, it is a French company. This is a policy that pervades the entire company, and is reflected in the attitudes of the employees. “A ‘national’ company automatically divides its employees into nationals and nonnationals. With globalisation, companies are stretching over borders and continents with both ownership and employees in different parts of the world. All multinational companies will need to address this issue, not only the Chinese.” Recently, Härén, who now lives in Singapore, spoke for the Swedish Chamber of Commerce in China on the topic of what Sweden could learn from China about creativity (and vice versa). Many people may wonder, is China really creative? “Yes, creativity is basically change, and the Chinese are very good at rapid change and development,” says Härén. But he can also see a potential drawback that can come
with tremendously fast change and high risk acceptance. He uses the example of orienteering. “It’s not the fastest runner that wins – it’s the one who also looks at the map and runs the right way.” Härén observes that the Chinese topdown management style might need some adjustments when taking business global. He suggests they borrow some aspects of the Swedish management style, which is good at encouraging an open and friendly atmosphere in which new ideas can become reality. Nevertheless, he thinks Chinese management can be very efficient. “When a Chinese CEO says ‘We will increase creativity’, that is what happens. The words of Chinese leaders bring massive action, and change happens faster than we could ever dream in Sweden.” Härén has just released his first novel in Swedish called De Ickesynliga (The Unvisible). He has also bought an island in the Philippines that is open for a lucky few to work on evolving good ideas while contributing to the local community. Read more at www.ideasisland.com. Härén is indeed taking huge steps towards delivering on his goal – making the world a more creative place. b
DRAGONNEWS • NO.04/2011 29
Hong Kong The seminar’s moderator Christine Loh says she is impressed by Sweden’s efforts.
A Personal Company (APC) Panel discussion with, from left, Liang Xiaohui (China National Textile and Apparel Council), Lisa Emelia Svensson (CSR ambassador), Laurence McDonald (president of Ericsson Ltd), Marcus Wilert (CSR programme developer at H&M China) and Thomas Lagerqvist (senior counsel at Mannheimer Swartling).
We all need a little of that human touch. In business, especially in global logistics, we all need a “human” to talk to, not a computerised voice. APC believes in personal service. We don’t force our customers to accept a standard freight solution. We talk to them personally to find tailor-made solutions. Door-to-door, of course. The seminar attracted some 70 people.
Corporate responsibility must be business-driven th
n As part of the 25 anniversary of the Swedish Chamber of Commerce in Hong Kong, a high-profile seminar on corporate social responsibility (CSR) in Asia was arranged on 2 November, followed by a full-day factory visit to factories in the Pearl River Delta. About 70 people attended the seminar which included speeches, a panel discussion and, in the afternoon, 10 different workshops. Sweden is in the forefront when it comes to CSR. It is one of only three countries in the world that has an official CSR ambassador. It is also the only country that has signed a Memorandum of Understanding on CSR with China. In 1970, the late American economist and Nobel Prize laureate Milton Friedman said in the New York Times that “the social responsibility of business is to increase its profits”. Since then, much has happened and the business leaders around the world have realised that they need to take CSR very seriously. The trend has also reached China, especially in the business sector, where PetroChina as early as in 2000 published a report on health, safety and environment, and State Grid in 2006 was the first Chinese company to publish a full CSR report. “Our national leaders frequently mention CSR but at this moment China does not have a national policy on CSR,” said Liang Xiaohui, chief researcher at the China National Textile and Apparel Council. According to a company law from 2005, corporations shall “bear social responsibilities”. However, nobody really knows if there are legal obligations, according to Liang, who brought up China’s dilemma of fully embracing CSR. 30 DRAGONNEWS • NO.04/2011
Sweden’s CSR ambassador, Lisa Emelia Svensson, emphasised that CSR must be business-driven. “A government must have a continuous dialogue with the business community and the non-governmental organisations in these aspects,” she said, pointing out that Sweden has high aspirations for building trust and setting an example for other countries. Moderator Christine Loh, CEO of the think-tank Civic Exchange in Hong Kong, said that she admires what Sweden does: “We hold Sweden in high regard. You are the frontrunner and when somebody is trying, then it will push others.” The seminar was held in collaboration with the Consulate General of Sweden in Hong Kong and the Swedish Trade Council and was sponsored by ICA Global Sourcing and the Hong Kong Trade Development Council (HKTDC). The Swedish Chamber of Commerce thanks them for their generous support.
Business lunch in Taipei Tove Lifvendahl, director of communication at the Confederation of Swedish Enterprises, was speaker at a well-attended lunch with the Swedish business community in Taiwan on 3 November. The topic was Swedish Identity, development and emigration.
We give you flexibility, trust and customer attention that no business system can match. That’s APC. You may call us A Personal Company.
www.apclogistics.com
Hong Kong
SwedCham Hong Kong’s 25th anniversary Gala Dinner n On Friday 4 November 2011 the Swedish Chamber of Commerce in Hong Kong celebrated its 25th anniversary with a grand Gala Dinner at the Aberdeen Marina Club. Thanks to SAS, Swedish chef Norbert Lang flew in and prepared a delicious dinner. Maxibit generously sponsored the backdrop and Marie MacDowall of Tindra arranged the elegant decorations of the ballroom and the outside balcony. After the dinner, a live performance by the Swedish singer Eric Gadd filled the dance floor, before the band of the evening took to the stage.
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The secret of success
Beijing “It’s not about what you say – it’s about what the people you are talking to think about what you are saying,” said Emily Roblin.
Social media and innovation in China n On 29 November an interesting breakfast meeting was held in Beijing about the emergence of social media and the rise of entrepreneurial innovation. A similar meeting was held in Shanghai on 1 December. Speakers were Mats Lindgren and Tomas Larsson from Kairos Future. China is today in the midst of enormous changes driven partly by the new social media landscape and the innovation revolution. Social media have in a few years opened up new public arenas where private and public issues are discussed in new ways. But the social media do not only provide a way to communicate with the rapidly growing Chinese middle class, where several hundred million Chinese are already active social media users. They also provide a way of understanding the Chinese consumer – since much of identity formation and discussions on social change are taking place there. Influential bloggers such as the Tiny Chilis impact the lives of millions of young Chinese women. Following the social media landscape systematically gives companies and organisations a deeper understanding of the changing middle class as well as how specific topics or brands are discussed. In a similar way, the Chinese patenting pattern gives an indication as to where China’s business is heading. Since the year 2000 the number of companies receiving invention patents has increased from 1,000 to 35,000. During that period the character of the patenting bodies has shifted towards the long tail of small and medium-sized entrepreneurial 34 DRAGONNEWS • NO.04/2011
Powerful women expressing confidence n On 27 October 2011, more than 20 women took part in the Powerful Women: Expressing Confidence workshop facilitated by Emily Roblin, managing director of LEAP Training and Consulting Services China. The workshop presented some practical tips for women to use to be more convincing and influential. Roblin looked at a variety of observable behaviours that are keys to expressing confidence in English – including how to present opinions, the choice of the words to use, the tone of the voice and the overall body language. The women, both Swedish and Chinese, came from a variety of industries and backgrounds, from general managers to interns. Many stepped out of their comfort zones and put their skills to work in front of the group. A similar session was held on 16 November in Shanghai. Roblin talked about the benefit of using what she called the “headline structure” when communicating an idea, just as in a newspaper where a headline is designed to present a clear idea of the topic and attract attention. “When you want to be convincing, take the time to develop a headline,” she said. “While this may sound obvious or easy, most women use communication as a way to think through something. But, when we express confidence we need to flip that, to start with a well-thought idea that is attractive to listeners and that is easy to get the key point.” Roblin concluded that “it’s not about what you say – it’s about what the people you are talking to think about what you are saying, and perhaps more importantly, what they remember about what you said.”
Are you considering expanding or starting up your business in Sweden or China? Let Vinge assist you by downloading our apps free of charge. Take advantage of our expertise and many years´ experience. “Business in Sweden” is designed to help you when you are about to start your business in Sweden. Available on Android market in English and Chinese. “Vinge China” is designed to help you when you are about to start your business in China. Available on Appstore in English. Vinge has Swedish lawyers and Chinese legal consultants based in Shanghai, Hong Kong and in Vinge’s offices in Sweden. For more than 20 years Vinge has assisted clients in their business activities in China and has advised foreign clients in all matters regarding trade and investments between Sweden and China.
Mats Lindgren and Tomas Larsson from Kairos Future talked about the social media revolution in China.
companies. China is in the early stage of a third wave of innovation where soon not only the large state-owned or prioritised companies, but also an increasing number of smaller entrepreneurial companies, will compete successfully in the global market.
STOCKHOLM
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SHANGHAI
Shanghai From left, Björn Boström (Ericsson), Fredrik Hörstedt (Chalmers) and Van Hoang (Swedish Trade Council)
Successful R&D in China n This lunch seminar focused on the role of research and development (R&D) in China. Björn Boström, senior advisor at Ericsson, is well-known in the Swedish business community as he has successfully expanded Ericsson’s R&D department in China from 1,000 to 4,000 people in just two years. Besides being an experienced industrial leader he has in-depth experience of dealing with Chinese authorities as well as in union
relations. Boström shared his best practices when it comes to staffing and running an R&D operation in China as well as communicating why headquarters needs R&D. He promotes locating R&D departments in China, as the country has relatively low salaries coupled with high productivity. He sees investments in innovation going up, making China one of the most attractive R&D hotspots in the world. Experienced, practical and sometimes provocative, Boström provided many insights and useful tips.
Fredrik Hörstedt, deputy managing director of Chalmers Professional Education, has carried out a large number of management development assignments for companies such as Alfa Laval, Ericsson China, Nokia Networks, Sony Ericsson, Tetra Pak and SKF. He illustrated the growing presence of R&D by this example: If China continues to increase its R&D expenditures at the same rate as it has grown over the past 20 years, China will surpass the US level of 2010 in 2020.
The Chinese workforce today and tomorrow
Charlotta Lagerdahl talked about attitude changes among young Chinese.
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n Featuring two experts from the frontlines, this seminar put the spotlight on the views of the talent pool. Tero Kosonen, managing director of MPS China, highlighted strengths and weaknesses in Nordic companies’ image, why Chinese top talents would want to work for Nordic companies and what is it about our companies that attract those scarce talents. These factors include stability, freedom and work ethic. He also outlined some of the things about Swedish companies that frustrate ambitious Chinese employees, such as long vacations and a slower pace of adaptation and change. Charlotta Lagerdahl, Asia leader of the MSL Group, then outlined the changes that are hap-
pening in the new generation of Chinese to hit the workforce in coming years. Her research is based on 50 in-depth interviews with Chinese students who will graduate 2012-2014. Lagerdahl revealed some surprising attitudes in the “me generation”, big changes compared to the students who graduated only five years ago. The new generation tends to be self-centred and overconfident, but has great potential to any employer that knows how to attract and retain them. A long and lively Q&A session resulted in mutual sharing of experiences, and showed that the chamber’s members are facing and overcoming similar problems in their day-today business.
HONG KONG ORDINARY MEMBERS >>>
Stadium (HK) Ltd c/o Mantura, 5/F Bamboos Building 52 Hung To Road, Kwun Tong Kowloon Hong Kong Tel. +852 3520 0727 E-mail: goran.larsen@stadium.se Web: www.stadium.se
Helen Lindman Design 11a Stanley Beach Road Stanley Hong Kong Tel: +852 9097 0099 E-mail: helen@helenlindman.com Web: www.helenlindman.com Activities Helen Lindman Design redevelops Chinese traditional apartments and buildings in the Hong Kong areas of Soho and Sheung Wan for rental or sale. Chamber representative Helen Lindman, Director
Activities Stadium is the biggest sports retailer in Sweden, inspiring an active lifestyle by offering sporting goods and sporty fashion. Stadium is also represented in Finland and Denmark. Altogether it has 114 stores and approximately 3,000 employees. The concepts Stadium Ski, which focuses on winter sports, and Stadium Plus, with larger stores at about 3,000 m², and Stadium Outlet are also part of the Stadium group. The product range consists of 50 per cent own brands, such as Everest, Warp, Race Marine and Four D. The remaining 50 per cent are brands such as Adidas, Nike, Puma, Peak Performance, among others. Chamber representative Göran Larsén, Director
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Damco Hong Kong Limited 39/F, One Kowloon 1 Wang Yuen Street Kowloon Bay Hong Kong Tel. +852 3765 2312 E-mail: fredrik.nyberg@damco.com Web: www.damco.com
World Smart Accounting Service Ltd D79, 1/F, Block 2, Camelpoint Building 62 Hoi Yuen Road Kwun Tong, Kowloon Hong Kong Tel. +852 2345 2683 E-mail: steven@worldsmartacc.com Web: www.worldsmartacc.com
Activities Damco is one of the world’s leading third-party logistics providers specialising in customised freight forwarding and supply chain solutions, offering a broad range of services to customers all over the world. Damco has 9,500 employees in over 280 offices across 90 countries and representation in 120 countries. In 2010, the company had a net turnover of over US$2.7 billion, managed more than 2.4 million TEU of ocean freight and supply chain management volumes and air freighted more than 75,000 tons. Damco is an independent business unit within the AP Møller-Maersk Group.
Activities Our staff come from a wide spectrum of professions and formerly worked in different business segments, ensuring they have excellent insight into the needs of foreign enterprises and companies set up by foreigners in Hong Kong. Our mission is the provision of one-stop professional services for accounting, taxation and company secretaries for our clients, providing peace of mind and allowing them to stay focused on their business development. Our company was established by several professional accountants with an aim to provide professional services at highly competitive rates.
Chamber representative Fredrik Nyberg, Nordic Tradelane Manager North Asia Region
Chamber representative Steven Ho, Accountant
Yourlink2asia Sourcing Company Ltd Room 93, 9/F, Yau Fung Building No 93-95 Lai Chi Kok Road Mong Kok Hong Kong Tel. +852 2393 0885 E-mail: info@yourlink2asia.com Web: www.yourlink2asia.com
Activities Founded in 2006 in Södertälje, Sweden, Yourlink2asia quickly expanded and now also has a presence in Hong Kong, Guangzhou and Taipei. We specialise in Asia-based outsourced production management and provide our clients with the expertise and contacts needed to design and manufacture custom-made, high-quality and ethically produced products. Our clients cover a diverse range of industries and markets. We aim to be the leading choice for companies seeking an easier and more cost-effective way to produce products in Asia. Our services include product development, production management and logistics management combined with a strong social, ethical and environmental commitment. Chamber representatives Mikael Hansson, Chief Operations Officer Johannes Landström, Chief Sales Officer
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Troy Solutions Ltd 1701 Tai Yau Building 181 Johnston Road Wanchai Hong Kong Tel. +852 9105 9035 E-mail: info@troy-solutions.com Web: www.troy-solutions.com Activities Troy Solutions Ltd is a provider of innovative engineering solutions for heavy process industries. Chamber representative Gunnar Mansfeld, CEO
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Peter Wilhelmsson Tel: +86 136 0019 4535 E-mail: peter.wson@gmail.com
Happy Rabbit Ltd 13/F, Tak Cheung Building 22-24 Wing Lok Street Sheung Wan Hong Kong Tel: +852 2815 9940 E-mail: info@happyrabbit.com Web: www.happyrabbit.com Activities We are a sourcing organisation active in the development and production of fabric, apparel, footwear and accessories for high-profile brands in the premium fashion and lifestyle segment. As a strategic partner, we offer holistic sourcing solutions, also including in-house product design, development and QC services. We consider ourselves a “fashion bureau”. Headquartered in Hong Kong with a branch in Bangkok, we are strategically located in proximity to our extensive network of vendors in China and South East Asia. Chamber representative Pontus Karlsson, Director
HONG KONG OVERSEAS MEMBERS >>>
Le Pelle WG Plein 59A 1054 RB Amsterdam Netherlands Tel, Netherlands: +31 63 2057070 Tel, Taiwan: +886 9 8881 6508 E-mail: per@lepelle.com Web: www.lepelle.com Activities Le Pelle helps small- and medium-sized businesses to build and turn websites and web shops into effective business tools – meeting the demands of today and the future. We build our expertise around open-source software, Drupal and Magento, the most powerful opensource packages available for content management and e-commerce. We have been in the web development business since 2003. Le Pelle also serves major international companies with localisation services, providing translations and preparing software packages for all their markets. Presently headquartered in Amsterdam, operations are mainly carried out from Taiwan, where an office will be opened in 2012. Chamber representative Per Jansson, Director
HONG KONG INDIVIDUAL MEMBERS >>> Eurway International Co, Ltd 3F, No 159, Jinzhou Street 104 Taipei Taiwan Tel: +886 2 2563 7597 E-mail: sylvia@eurway.com.tw Activities Eurway International Co, Ltd, incorporated in 2002 by Swiss and Taiwanese investors, is regarded as a prudent and wellmanaged distributor of cigars and tobacco products in Taiwan. We concentrate on importing and distributing highquality cigars and other tobacco products, representing several famous European tobacco manufacturers.The company focuses on sustainable brand management through a professional team of young, dedicated and dynamic staff. We also provide consulting and marketing services for the international food and beverage business. Chamber representative Sylvia Munzhuber, Managing Director
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Örjan Feldt Tel: +852 9770 5121 E-mail: eorjan@electroline.com.hk
CHINA ORDINARY MEMBERS >>>
Huitong International AB A-610, Free Town No. 58, East Third Ring Road Chaoyang District Beijing 100022 Tel: +86 10 5867 2606/07/08 Fax: +86 10 5867 2609 Activities Our business scope encompasses the import and export of large-scale project materials and equipment. Over many years, we have developed long-term relationships with major shipping companies and airlines, enabling us to provide customers with more convenient and favourable logistics solutions. Chamber representatives Xiaoling Pei, Manager E-mail: peixl6688@hotmail.com Mobile: +86 138 0132 9190 Peng Cheng, Chairman E-mail: ddhth@sohu.com Mobile: +86 139 1085 3336
JOHNNY’S PHOTO & VIDEO SUPPLY LTD
Eva Hedberg Tel: +852 9105 7331 E-mail: eva.hedberg@stokke.com
• Photographic Equipment • Video/Audio Hi-Fi Equipment • Home Appliances • Colour Film Processing/Enlargement • Audio/Video Dubbing Services • Communication Equipment • Electronic Equipment • Repairing Services • Mail Order Acceptable Shop No.65, 1/F, Admiralty Centre, 18 Harcourt Road, Hong Kong Tel: 852-2877-2227 Fax: 852-2877-2120 Mobile: 9051-9499 E-mail: johnnysphoto@hotmail.com Opening Hour: Mon – Sat 9:00am – 7:00pm Sunday 2:00pm – 6:00pm
Bonnier China Room 901, Tower A Sanlitun SOHO No 8, Gongrentiyuchang North Road, Chaoyang District Beijing 100027 Tel: +86 10 6113 6500 Fax: +86 10 6113 6505 Web: www.bonnier.com.cn Activities Bonnier China provides professional knowledge and information to executives in various industries. Bonnier’s annual subscription service includes loose-leaf publications, webinars and live events. The service connects executives with professional expertise and keeps clients updated on the latest information in their respective businesses. Chamber representatives Joen Bonnier, President E-mail: jb@bonnierasia.com Mobile: +86 139 1187 5817 Jakob Lönnborg, Vice President E-mail: jakob.lonnborg@bonnier.com.cn Mobile: +86 138 1195 5320
GIA (Shanghai) Trade Co, Ltd Room 1408, Dongfang Mansion No 1500, Century Avenue, Pudong Shanghai 200122 Tel: +86 21 5058 2206 Fax: +86 21 5058 2205 Web: www.gia.se Activities GIA Shanghai sells, distributes and services machines and components from GIA Industri AB for the mining and tunnelling industry in China. Among our products you will find ventilation systems, locomotives, charging trucks, Häggloader and Kiruna trucks, all designed for extreme conditions underground. Chamber representative Philip Hafstad, Country Manager E-mail: philip.hafstad@gia.se Mobile: +86 135 6439 5045
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Euro-Center North Asia Consulting Services (Beijing) Co, Ltd Room 801, 8 floor, Building C, East Lake Villas No 35, Dongzhimenwai Dajie Dongcheng District Beijing 100027 Tel: +86 10 8455 9500 Fax: +86 10 8451 1176 E-mail: beijing@euro-center.com Web: www.euro-center.com Activities Since 1971, Euro-Center has acted as the extended arm of travel insurers, healthcare insurers and alarm centres to provide local assistance services to tourists, business travellers and expatriates through its worldwide network of offices. We are one of the world’s leading claims handling and cost-containment networks, annually processing approximately 160,000 cases around the globe and generating a total turnover of more than EUR100 million. Chamber representative Chue Peng Pavie, General Manager E-mail: c.pavie@euro-center.com
JP Ping Pong AB Dalabergsvägen 13C Halmstad SE-30292 Sweden Tel: +46 70 8212 139 Activities JP Ping Pong AB is a company that focuses on events, trading and ping pong development and exchanges. Jörgen Persson is one of the most successful and respected table tennis players in the world, with great knowledge about his sport. Chamber representative Peter Borggren, Manager E-mail: pborggren@telia.com Mobile: +46 70 5511 698
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Tobii Electronics Technology (Suzhou) Co, Ltd No 678, Fengting Avenue, Land Industrial Park Building No 3, 2nd Floor, Suzhou Industrial Park, Weiting Suzhou, Jiangsu Province 215122 Tel: +86 512-6936 2880 Fax: +86 512 6936 2881 Web: www.tobii.com
Mackmyra Svensk Whisky Wallingatan 2 SE-111 60 Stockholm Sweden Tel: +46 8 5560 2580 Fax: +46 8 5560 2581 Web: www.mackmyra.com
Activities Tobii is the world’s leading vendor of eye tracking and eye control, a technology that makes it possible for computers to know exactly where users are looking. Our technology is widely used in various research fields and as a means to control computers. Tobii Suzhou was founded in 2008. Currently we have two offices, one in Suzhou (production, repair centre & R&D, including HW and SW) and another in Shanghai (sales office). Chamber representative Peter Sandberg, General Manager E-mail: peter.sandberg@tobii.com Mobile: +86 150 5140 6558
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Kinabroar AB Väktargatan 6C, 311 SE-75422 Uppsala Sweden Tel: +46 709 29 56 63 +86 134 39491 669 Web: www.kinabroar.se
Chamber representatives Johan Svensson, CEO E-mail: johan.svensson@kinabroar.se Guihong Cai, Manager E-mail: guihong.cai@kinabroar.se
Activities It all started in 1998 with eight friends and a simple question: Why isn’t there any Swedish whisky? At our distillery at Mackmyra Bruk, we have pursued our dreams and created the first Swedish whisky. We make it our own way, using local ingredients and no additives. And we are constantly striving to evolve. The result has put Sweden on the international whisky map. Chamber representative Rikard Lundborg, Vice President and Co-founder Email: rikard@mackmyra.se
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Activities Kinabroar is a Swedish company that represents other companies in China. We help other companies sell their products on the Chinese market. We also work at finding Chinese products for import to the Swedish market.
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Karlsson Spools Precision Machining (Kunshan) Co, Ltd Kunjia Road, Zhangji Road (East) Kunshan Developing Zone Jiangsu Province 215300 Tel: +86 512 5763 0188 Fax: +86 512 5763 0186 Web: www.karlssonspools.com
Purple Haze Restaurants Xinfuyicun Lane 55, Chaoyang District (opposite north gate of Workers Stadium) Beijing 100027 Tel: +86 10 6413 0899 Web: www.purplehaze.com.cn
Activities Purple Haze is a partly Swedish owned Thai restaurant & bar at two locations in Beijing. With a focus on comfort and value, Purple Haze has become one of the capital’s most wellknown restaurants since it opened in 2005. It is also a natural meeting point for many Swedes visiting, or living in Beijing. Chamber representatives Tobias Demker E-mail: tobi.demker@purplehaze.com.cn Mobile: +86 139 1013 4369 Yu Wen E-mail: yu.wen@purplehaze.com.cn Mobile: +86 1350 122 1866
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Stenvall Sköld & Company (China) Limited Room 607-608, Jintai Building No 58 Maoming South Road Luwan District Shanghai 200020 Tel: +86 21 5466 9980 Fax: +86 21 5466 9970 Web: www.stenvall-skoeld.com
Activities Karlsson Spools (Kunshan) China was established in June 2005 as a wholly-owned foreign investment and main supply source for the Asian market. We manufacture cylindrical parts with narrow tolerances, including semi-assembly, main application: spools for mobile hydraulic valves.
Activities Stenvall Skoeld & Company is a strategic advisory firm specialised in supporting corporate and private equity investors in China-related mergers and acquisitions (M&A) and investments. We have special expertise in China market research, growth strategy, acquisition search and commercial due diligence.
Chamber representatives Thomas Emilsson, Managing Director E-mail: thomas.emilsson@karlssonspools.com.cn Mobile: +86 159 2626 2997 Eve Guo, Vice General Manager E-mail: eve.guo@karlssonspools.com.cn Mobile: +86 137 7312 1370
Chamber representatives Per Stenvall, Managing Director E-mail: pgstenvall@stenvall-skoeld.com Mobile: +86 136 8181 1313 Carl-Johan Sköld, Director E-mail: cjskoeld@stenvall-skoeld.com Mobile: +86 182 2122 5546
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Gustav Sjöholm Room 1202, No 11 Lane 88, Hailun Road Shanghai 200086 Mobile: +86 150 2665 2463 +46 76 1711 635 E-mail: gustav.sjoholm89@gmail.com Invest Sweden (China) Room 2102, South Building Hong Kong Plaza No 283, Huaihai Middle Road Shanghai 200021 Tel: +86 21 6390 6598 Fax: +86 21 6390 6592 Activities Invest Sweden is responsible to the Ministry of Foreign Affairs; it works to attract and facilitate foreign direct investment (FDI) to Sweden. Invest Sweden China was established in 2002 and currently has offices in Shanghai (head office), Beijing and Shenzhen, as well as a presence in Hong Kong. Invest Sweden China prioritises the fields of clean technology, ICT, automobile, life sciences and bio-technology, material science and the services industry. Invest Sweden China, in accordance with Chinese companies’ interest, also provides detailed information on specific industries and areas of expertise to make it possible to explore investment opportunities for cooperation. Chamber representative Eddie Chen Vice President & Chief Representative for Greater China E-mail: eddie.chen@investsweden.se Mobile: +86 139 1601 3793 Contact person Candy Tang Assistant to Chief Representative E-mail: candy.tang@investsweden.se Mobile: +86 138 1796 0260 Web: www.investsweden.se
Helena Magnusson Room 2203, 22nd floor, Soho Nexus Center No 19, East 3rd Ring North Road Chaoyang District Beijing 100020 Mobile: +86 182 0120 5505 E-mail: helena.magnusson@oru.se
Jacob A Bergman Room 1202, No 11 Lane 88, Hailun Road Shanghai 200086 Mobile: +86 150 2665 2634 +46 70 353 9525 E-mail: jacobbergman87@gmail.com
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Kristine Oppelstrup E-mail: koppelstrup@yahoo.se Mobile: +86 155 1061 1150
CHINA ASSOCIATE MEMBERS >>> Gert-Ove Svensson Room 0909, Kuntai International Building No 12 Chao Wai Street Chaoyang District Beijing 100020 Tel: +86 10 5879 0108 Mobile: +86 137 1791 9724 E-mail: gos@logstor.com
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Kristoffer Mil 13 floor, Block E, Golden Hongqiao Commercial Plaza No 686, Wuzhong Road (at Hongxu Road) Shanghai 201103 Tel: +86 21 6465 0978 ext 8309 Fax: +86 21 6465 0977 E-mail: kristoffer.mil@sipgroup.com Mobile: +86 150 0030 57
To see how we can help you please visit our website www.pcs.com.hk or write to John Barclay at johnbarclay@primasia.com
2011-02-24 15:23:37
ScanGlobalAdDragonNews.pdf
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12:51:55 PM
Extra General Meeting in Hong Kong
Photo: Emmanuel Serna, L’Atelier Photo Ltd
Allan Riber Nielsen, Sales Manager Hong Kong and South China.
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“Anybody can move goods from A to B. The difference is how you do it.”
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The new board of directors (from left): Dan Lindwall, Staffan Löfgren, Kristian Odebjer, Gunnar Mansfeld, Per Ågren, Ulf Ohrling, Eva Henriksson and Laurence McDonald. Absent: Niclas Möttus Olsson (inserted photo).
n On 30 November 2011 the Swedish Chamber of Commerce in Hong Kong held its Extra General Meeting (EGM) to elect a new chairman and two new directors. We welcome Ulf Ohrling, resident partner of Mannheimer Swartling as the new chairman from now until the chamber’s Annual General Meeting in 2014. We also welcome as new directors Dan Lindwall, Handelsbanken’s head of Greater China and general manager Hong Kong Branch, and Laurence McDonald, president of Ericsson Hong Kong and Macau.. SwedCham sends a sincere thank you to all candidates who ran for the board and to all members present in person and by proxy. The chamber would also like to take this opportunity to thank the former chairman Stefan Rönnquist and former director Hans Jarne for the time and effort they have put into chamber work.
This is Ulf Ohrling Ulf Ohrling is a partner of the Mannheimer Swartling law firm. He has been in China since 2004; he was first in Shanghai for five years and is now on his third year in Hong Kong. He is married to Runette and they have a 16-year-old son and a 21-year-old daughter. Ohrling was a director for the Swedish Chamber of Commerce in China for two years and is doing his second year at the board of the chamber in Hong Kong. He has been chairman of the chamber’s South China Committee and is currently serving as chair of the Editorial Committee.
www.scangl.com
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41/F, China Online Centre, 333 Lockhart Road, Wanchai, Hong Kong. +852 2117 4800.
EXECUTIVE HOMES HONG KONG
Christmas time is here again n Two of the chamber’s most popular events just took place, the Christmas party in Beijing on 3 December and the Christmas Cocktail in Shanghai on 9 December. The demand for tickets was strong this year and the parties were fully booked in no time. In Shanghai, at the cosy Hamilton House, 150 Swedes enjoyed their Christmas cocktails accompanied by choir singing, mulled wine (glögg), wine and beer served with finger food and Swedish gingerbread. To round off the evening, Toby Mac entertained the guests with the best jazz in Shanghai. The Christmas spirit was infectious, with dancing, laughing and singing guests staying on long past normal opening hours. At the Beijing Christmas Party, more than 235 guests enjoyed the traditional Christmas buffet and snaps, and spirits were high when The Beijing Beatles took to the stage. The dance floor was packed with dancing and clapping people, recalling the excitement of a real Beatles show. After the show, our DJ took over and served some great Swedish classic beats and the Mackmyra lounge bar opened up, serving the thirsty guests Beatles-inspired whisky drinks. Finally, the Swedish chamber would like to extend a Big Thank You to our generous Gold Sponsors who made this year’s Christmas parties possible: Capacent, Ericsson, Exportrådet, Finnair, Handelsbanken, Lind Andersson, Mackmyra, Premium Finance Group, PSU and Vinge. Merry Christmas and Happy New Year!
“In addition to shipping goods from A to B, we can handle everything you may need in between: warehousing, quality control, labelling, consolidation, customs handling, certificate applications, bonded warehousing, distribution and project logistics. Also, we like to think we are doing it the Scandinavian way–more control and responsibility and less hassle and excuses. Call me or send an email to arni@scangl.com and let’s talk some Scandinavian. Welcome!”
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Executive Homes HK Ltd 1601-02 Universal Trade Centre, 3 Arbuthnot Road, Central, Hong Kong
www.executivehomeshk.com 188x110_v14.indd 1
info@executivehomeshk.com
2011-04-28 06.01
A f ter hours n Shops Handpicked Scandinavian design in Hong Kong Vein is a new shop in the heart of the Star Street neighbourhood in Wan Chai, Hong Kong. It sells and markets Scandinavian-style apparel, accessories, home and interior products. The products from Sweden, Finland and Denmark are all handpicked and chosen for a distinctive cut, an original shape or form, a unique print, an edgy detail, fabulous fabrics or innovative materials. You can find well known brands such as Orrefors, Kosta Boda, Filippa K, Swedish Hasbeens and Charlotta Sparre, among others. Address: G/F 2E Star Street, Wan Chai, Hong Kong
n Bars Swedish bike bar in Shanghai In the heart of the French concession you can find Bikes & Friends – a newly opened bar and café that is a meeting spot for those who love everything about bicycles or just want to enjoy a coffee or a beer. The bar is bicycle-friendly and you can even ride your bike all the way into the bar and the inner patio. One of the founders is the entrepreneur Mattias Erlandsson who is also a dedicated biker. “The place functions as meeting point for many of the local riders and a lot of times we co-host events such as Halloween ride or smaller competitions,” says Mattias. He got the idea on a trip to Japan a couple of years ago when he visited a bicycle bar in Nakameguro, Tokyo. He noticed that there was a different vibe since bicycle people are very much like dog owners, they can stop in the street and start to talk to a fellow biker even if they don’t know each other. “There are also quite a lot of young creative Chinese who have started to ride their bicycles to and from work and it is nice to be able to support and gather them in one spot,” says Erlandsson. He admits that most customers come less for a love of bicycles than the patio and the relaxed atmosphere. “Everyone is welcome, but we are extra happy when customers arrive on a bicycle instead of with a cab,” he says. Web address: www.bikesandfriends.cc
Martin Carey, Private Banker
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n Books Little red book about understanding China “The single most important advice one can give to any Westerner planning to do business in China is that the Chinese won’t adapt to you, you need to adapt to China and the Chinese,” it says on the back cover of a book called Quotations from a China Practice, recently published by the law firm Mannheimer Swartling. And giving advice about adapting to and understanding China is exactly what the two authors, Thomas Lagerqvist and Ulf Ohrling, have done. Lagerqvist and Ohrling have, as lawyers, a lengthy experience working with leading Nordic companies in the Chinese market. In their book, they share a wealth of knowledge about the Chinese business culture and the art of doing business in China. The 162-page book, written in English, covers everything from the basic Chinese concepts such as trust, hierarchy, reciprocity and harmony, to China’s views on their role in the world, negotiation skills, setting up companies, and the use of translators and lawyers. The book can be purchased from Mannheimer Swartling for SEK 250. To order the book, please contact: soa@msa.se
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by study m ndent Indepe eBanking.co MyPrivat
T B EatS k e Ban Priv pe in Euro
n Clubs New underground club and cafe in Beijing The people behind White Rabbit, a former popular underground club in Beijing, are back with a new venture called Haze, which is located in the basement of On The Corner Café on Guanghua Lu. Run by Swede Thomas Gaestadius and his friends, it is a lounge with a minimalist bar where beers start at 35 yuan. The café serves great coffee, cakes, paninis and a few pasta dishes in a space with high ceiling warehouse atmosphere. Phone: +86 10 5900 6128 Address: A101, Guanghua Lu SOHO, 22 Guanghua Lu
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Visit us at www.nordeaprivatebanking.com, or call +65 6317 6522 to arrange a meeting.
*Further information about the study can be obtained at www.myprivatebanking.com/category/research Nordea Bank S.A is a part of the leading financial services group in the Nordic and Baltic Sea regions. Being the leading Nordic pan-European banking entity in Luxembourg and Switzerland, Nordea Bank S.A. focuses on international Wealth Management, Fund Distribution and Fund Management services. Our 360 employees serve a wide spectrum of international clients in more than 125 countries. Some products and services mentioned may, due to local regulations, not be available to individuals resident in certain countries. Published by Nordea Bank S.A., Luxembourg. Nordea Bank Singapore Branch, 3 Anson Rd #22-01, Springleaf Tower, Singapore 079909 .
T he ch a m b er a nd I
Great opportunities to network Joakim Hedhill of Handelsbanken in Shanghai is an active member at chamber events. He would like to see more seminars held by Chinese business leaders and economists.
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oakim Hedhill works as an account manager at Handelsbanken’s Shanghai branch. He has worked in Shanghai for almost one year but has previously lived in China when he was studying at university and can speak Mandarin. Before he came to Shanghai he worked with mergers and acquisitions at Handelsbanken’s investment banking department in Stockholm for three years. When did your company become a member? “Handelsbanken was one of the founding members of the chamber in China. Before the chamber started there was no formal forum for Swedish companies to meet. Through the chamber we can enhance interaction and communication among Swedish companies, which is important when the cultural gap is as large as in China. Chamber events are also a great way for us to interact with our clients in a more social setting.” What value does membership bring to you and your company? “Membership gives us great opportunities to network with both old and new Swedish companies that are doing business in China. The chamber events and activities also keep me updated about the business situation for Swedish companies in China. On the personal side, I think the chamber events are a good way to meet new friends and to stay in touch with old friends that I have come to know during my stay in Shanghai.” What kind of events are of most value for you? “I enjoy the breakfast seminars, especially events relating to economic development and the business situation in China. The joint chamber events are also very
interesting as they present an opportunity to meet members from other chambers in China. “One event I found especially interesting was Fredrik Härén’s seminar on business creativity in China. It was good to have such a famous speaker here, and such a provocative one! “I also enjoyed the dinner with members of the Swedish parliament. It gave me a chance to have a more intimate discussion with the Swedish decision makers and understand how they view China. They are getting more interested in the world’s second largest economy. Their trip only had two stops: the United States and China.” Is it hard to take time from work to join the chamber’s events? “I don’t think it is hard to find time to attend, especially as many events are very relevant and scheduled in evenings or during lunch time.” What kind of events would you like to see more of in the future? “It would be interesting to see more seminars held by Chinese speakers, such as Chinese business leaders and economists. A good example would be to visit some of the big Chinese banks and listen to their view on the future development of the Chinese economy.” Finally, what is your opinion of Dragon News? “Dragon News provides a good way to stay updated with the Swedish business society in China. I enjoy the cover stories; they are well written and have very interesting topics, such as in the last issue about Hong Kong as a business hub in China. I usually read Dragon News from first to last page. It is good for business purposes, but also from a personal point of view. I like the After Hours section, where I get good inspiration for new places in Shanghai to visit.” b
Dragon News provides a good way to stay updated about the Swedish business society in China.”
“Chamber events are a great way for us to interact with our clients in a more social setting,” says Joakim Hedhill.
Swedish Chamber of Commerce in Hong Kong
Swedish Chamber of Commerce in China
DIRECTORS OF THE BOARD Ulf Ohrling, Chairman [Mannheimer Swartling] Niclas Möttus Olsson, Vice Chairman [Getinge Infection Control East Asia] Gunnar Mansfeld, Treasurer [Troy Group] Eva Henriksson [Henriksson Consulting] Dan Lindwall [Handelsbanken] Staffan Löfgren [ScanAsia Consulting] Laurence McDonald [Ericsson Ltd] Kristian Odebjer [Advokatfirman Odebjer Fohlin] Per Ågren [APC Asia Pacific Cargo]
DIRECTORS OF THE BOARD Mats Harborn, Chairman [Scania] Katarina Nilsson, Vice Chairman [Advokatfirman Vinge] Fredrik Ektander, Vice Chairman [SEB] Erik Ek, Treasurer [Swedbank] Yvonne Chen [GM, Swedish Chamber of Commerce in China] Pao-Ling Röjdmark [associate member] Birgitta Ed [Springtime] Johan Menckel [ Sapa Group] Tom Nygren [Ericsson] Lars-Åke Severin [PSU] Thomas Sörensson [B&B Tools] Sara Wramner [VisitSweden]
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