Dragon News - No.2, 2016

M e m b e r m a g a z i n e f o r t h e 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 Ko n g a n d C h i n a

No.02

2016

A bumpy road to sustainability Significant policy adjustments are required in order for China to become sustainable, as China’s investment-driven growth model has come to an end.

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Lars Danielson Volvo picks up pace

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Viktoria Chan A feeling for fabrics

Publisher The 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 reflect the views of the publisher.

Finnair is Europe’s first airline to fly the new, fuel-efficient and quiet Airbus A350 XWB. Experience a new sense of flying at A350.finnair.com

Editorial management, design and printing Bamboo Business Communications Ltd Tel: +852 2838 4553 www.bambooinasia.com bamboo@bambooinasia.com Art director: Johnny Chan Designer: Victor Dai English editor: Chris Taylor

CONTENTS

No.022016 22

4 Editorial 6 Opinion: Thomas Lagerqvist & Ulf Ohrling 8 Snippets 10 Focus story: A bumby road to sustainability 22 Feature: Christer Ljungwall

26 This is Sweden

Cover: iStock 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 Email: chamber@swedcham.com.hk Web: www.swedcham.com.hk General Manager: Eva Karlberg Event Manager: Edin Colak Finance Manager: Anna Mackel 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 Email: beijing@swedishchamber.com.cn Web: www.swedishchamber.com.cn General Manager: Karin Roos Webmaster: Jaycee Yang Finance Assistant: Klara Wang Shanghai contact Unit 201, No 885 Renmin Road, Huaihai China Tower Huangpu District, Shanghai 200010 People’s Republic of China Office Manager Shanghai: Marianne Westerback Tel: +86 21 6217 1271 Mobile: +86 1368 179 7675 Email: shanghai@swedishchamber.com.cn

30 Young Professional interview: Viktoria Chan 32 Chamber activities in Hong Kong 34 Chamber activities in Beijing 36 Chamber activities in Shanghai

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38 Bengt Sjöberg: Battling cancer with a record donation 40 Jacob Wallenberg receives honorary award 41 Swedish Career Fair 2016 42 Obituary: Stefan Rönnquist

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44 New members 48 Annual General Meeting in Hong Kong 50 Annual General Meeting in China 52 After hours 54 The chamber and I: How sustainable are you?

Swedish Chamber of Commerce in Hong Kong

ADVERTISERS APC page 35, Asia Perspective page 19, Bamboo page 49, B&B Tools/Teng Tools page 55 Ericsson page 27, Executive Homes page 53, Finnair page 2, Greencarrier page 53 Guanghua Kellogg page 21, Handelsbanken page 56, Hellström page 51 Iggesund Paperboard page 37, IKEA page 33, Kinnarps page 39, Mannheimer Swartling page 47 Norman Global Logistics page 51, PSU pages 28-29, Radisson Blu page 46, SEB page 5 Sigtuna Boarding School page 17, Stockholm School of Economics page 15 Swedbank page 43, Volvo Cars page 9 Publishing schedule for Dragon News 2016 The actual delivery date may vary and is the final decision of the chambers.

No 3. Publishing date: 23 September. Advertisements: 26 August.

No 4. Publishing date: 25 November. Advertisements: 28 October.

Finnair flies to 17 destinations in Asia and over 60 destinations in Europe.

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24 Executive talk: Lars Danielson

Swedish Chamber of Commerce in China

Thank you!

APC Logistics for your immense generosity shipping and distributing Dragon News in China, Hong Kong, Asia and Sweden.

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The Swedish Chambers of Commerce in Hong Kong and China

DRAGONNEWS • NO.02/2016 3

EDITORIAL

Ulf Ohrling Chairman Swedish Chamber of Commerce in Hong Kong

Lars-Åke Severin Chairman Swedish Chamber of Commerce in China

China’s constant challenges Dear Reader, For a long time now, China has been a place of constant challenges. In the past, its incredibly strong growth was a challenge.

How does a company adjust budgets and plans when turnover increases by 25-30 per cent on an annual basis? Today, China’s challenge is to restructure its economy and to reduce factory output in many industries without creating stagnation.

Meanwhile, another problem China faces is the sustainability of its growth.

Growth without concern for the environment has created a tremendous environmental cost burden that needs to be immediately confronted if China is to remain, or again become, habitable. Domestic and international concern is a daily challenge for China, its people and their government.

Throughout the modern history of China, there have been many crucial moments – game-changing moments. Perhaps, unwittingly, we are witnessing such a moment right now.

The shift towards a domestic consumption-driven, greener economy while dealing with a debt overhang, a grey banking sector and the growing wealth divide are not only challenges for China, but even more so for the Communist Party of China (CPC).

However, as observers look on with increasing concern, China gives the impression of business as usual amid an ever-growing sense 4 DRAGONNEWS • NO.02/2016

that it will inherit the future.

In the meantime, it should be noted that the government is evaluating the efficiency of its reforms in the interest of initiating more effective ones, and Chinese companies continue to become more competitive, meaning that China continues to be a profitable – if less so in recent years – environment for Swedish enterprises to establish, invest and develop in.

Particularly interesting in this context is China’s “supply-side initiative”. Traditionally, China has used the tax system to provide incentives to stimulate factory output and promote innovation. Today, China needs to reduce overcapacity and simultaneously increase domestic consumption – and achieve it without stoking social tensions.

Essentially, this amounts to very challenging times for the Chinese economy, as dealing with supply-side overcapacity by means of “normal” measures – state regulations and tax schemes – will not suffice. Laying off large numbers of factory workers will inevitably create social tensions and perhaps unrest. But, all the same, China’s state-owned conglomerates need to be consolidated and, in certain instances, privatised. Potentially, we are about to see an entirely new form of “supplyside initiative”, China style.

It is perhaps in light of the tensions that may lay ahead that we are seeing increased emphasis on party discipline and

also witnessing strict media censorship. In applying increased leadership control of all party functions and “re-educating” party cadres and government officials, the central government is re-establishing “party values” in a wide-ranging push not seen for many years. The problem going forward will be to achieve results, reduce corruption and increase cohesion within CPC ranks. Should this initiative fail, there is a likelihood that other measures will fail too and that social tensions will be difficult to control.

In view of all above, it is obvious that the road ahead will be bumpy, but none of us working here in China think that we are facing a disaster, at least not short term. China has faced challenges before and has proven its ability to overcome challenges. We cannot compare China to countries that have faced similar situations in the past. China is a case study in and of itself.

To be sure, the coming years will likely entail greater risks, but a changing environment also offers new opportunities.

Swedish companies must be prepared to be ever more agile, nimble and adaptive to a rapidly evolving business environment, while also keeping a close eye on the political arena.

We suggest using the approaching summer holidays to do some further reading and get a better understanding of what China will be undergoing in the next three to five years.

That, at least, is what we plan to be doing.

We wish everyone a wonderful summer!

Managing relations with corporate headquarters Thomas Lagerqvist and Ulf Ohrling, authors of Quotations from a China Practice, a book about Chinese business culture published

by Mannheimer Swartling, share part of their experience and observations relating to corporate structures comprising a Chinese subsidiary.

Below is an excerpt from the book’s second edition. The book can be obtained by emailing the authors.

Text: Thomas Lagerqvist, thomas.lagerqvist@msa.se Ulf Ohrling, ulf.ohrling@msa.se

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ow to build and develop relations with the group headquarters, its management and board of directors outside of China, or the other way around, requires certain attention.

The Chinese characteristics of doing business are certainly – and in most cases – very different from doing business between various cultures in the West. Corporate issues, such as changing directors or decreasing or increasing share capital, group cash management or transferring monies from abroad to be used for a Chinese subsidiary are matters that, from a Western point of view, do not require much attention and time.

However, in China they may easily turn into tedious affairs, full of obstacles not that easily explained to group headquarters.

The same applies to situations, for example, where you have to suddenly stop production and send employees home because of a minor dispute with the local electricity company that resulted in a complete power cut for a couple of days, until you were forced to make concessions to conclude the matter so as to be able to resume operations.

You might also need to explain a situation in which the entire administration has become paralysed and the office premises occupied due to some unfinished HR matter that has made staff irate and uncontrollable.

Another issue that could come up is having to explain that you were locked in a room in the factory (or out of the factory) simply because your joint venture partner became aggravated over some minor matter.

Reporting to group headquarters often adds to the stress experienced by local management, unless of course they are Chinese. That is because Chinese managers, at least in smaller companies, will normally not report anything other than good news. Bad news is generally scraped under the proverbial carpet.

The management of a Chinese subsidiary, or a joint venture for that matter, will basically require three elements: time, trust and cultural understanding. Consequently, group headquarters also have to be engaged in the process. This is because time requires a long-term view at a group level as opposed to a narrow calendar-quarter view. Building trust requires, in addition to time and a long-term view, also that group headquarters possesses enough cultural understanding to comprehend why things are happening and how to support local management in creating a corporate culture that is both consistent with the group values and culture, but based also on risk analysis according to local conditions.

For example, when acquiring a Chinese business, it is essential not to rush the post-transaction integration process, but rather first consider all aspects of the changes that may have to be introduced and to seek the experience and advice from those who are familiar with the business and how the Chinese business culture works.

We have seen examples of new reporting and decision-making structures that would not go down so well if applied in China. A Chinese sales manager may lose respect for the local general manager in the event he is required to report to or take orders from other people in the sales organisation located elsewhere in the world and not to the local general manager. Losing respect for a superior can eventually – for cultural reasons – lead to other weaknesses in the management of a Chinese subsidiary.

Global operational management and

Thomas Lagerqvist is senior advisor at Mannheimer Swartling Advokatbyrå, where he specialises in mergers and acquisitions (M&A) and corporate, intellectual property and international trade law. He has more than 20 years’ experience in China-related matters. He was a director of the Swedish Chamber of Commerce in Hong Kong from 1992 to 2010 and its chairman 1996-2010.

Since 2011, Lagerqvist is the chairman of the Sweden-China Trade Council.

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Global operational management and reporting systems ... should be carefully introduced in China, as the result may well end up in confusion, lack of control and general sloppiness.” reporting systems may work well generally, but we think that they should be carefully introduced in China, as the result may well end up in confusion, lack of control and general sloppiness. Chinese employees are normally not loyal to an organisation or a company; they are loyal to the person who hired them and oversee their daily work.

A second edition of Lagerqvist’s and Ohrling’s book Quotations from a China Practice was recently published.

Another issue that requires attention and the negative effects of which are perhaps not quite clear to most foreign business people is the fact that expatriate managers are normally in China on fairly short-term contracts. And as it would normally take more than a year before an expatriate manager can be of any real use due to the time it takes to sufficiently understand the cultural differences, the time in which they become able to make valuable contributions is limited. There may be good reasons why company policies generally limit the period of an overseas placement. But, in the case of China, we would recommend longer time periods, also taking into consideration what we have said about the importance of person-to-person loyalty.

All our experience shows that using the three fundamental elements; time, trust and cultural understanding, in good faith, and as suggested above, will help group headquarters to perform better “back-seat driving” and will eventually result in a strong corporate culture that helps build a sustainable presence in China.

It is also important to understand Chinese culture and in particular the importance of hierarchy. Although Nordic organisational structures are partly hierarchical as well, we tend to be more individualistic, egalitarian, information oriented and results-oriented compared to many Chinese, who focus more on being collective, hierarchical and relation oriented.

In other words, when, for example, in the name of effectiveness, a manager from headquarters makes direct contact with someone at a middle-management level in a Chinese subsidiary, the result can easily become a breach of the cultural code and an affront to the local top management. We have, unfortunately, seen this happen so often it would be remiss if we did not make a point of mentioning it. b

Ulf Ohrling is a partner at Mannheimer Swartling and an experienced advisor on cross-borders M&A, intellectual property and IT law. He has worked in China since 2004 in the firm’s offices in Shanghai and Hong Kong. Since 2011 Ohrling has been the chairman of the Swedish Chamber of Commerce in Hong Kong and previously a director of the Swedish Chamber of Commerce in China.

DRAGONNEWS • NO.02/2016 7

S u s ta i n a b l e S n i p p e t s Organic food boosted by food scandals n While breathing air, buying food and drinking water all have become increasingly risky in China, wealthy consumers have started to buy more and more organic food. The organic food market in China tripled between 2007 and 2014, now accounting for slightly more than 1 per cent of total food consumption, according to data from the organic trade fair Biofach.

Even though this is lower than in Europe and the US, where organic food’s share of the total food consumption is between 5 to 8 per cent, Biofach expects the market share for organic food in China to rise sharply over the next few years.

In a study carried out on 204 Chinese organic consumers in Beijing and Shanghai, 71 per cent said they were ready to pay a premium of 20 to 50 per cent for organic products.

The top five reasons for buying organic were all related to food quality assurance, reports the business intelligence newsletter China Briefing.

“The 13th Five-Year Plan is a turning point for China.

It aims to further the rejuvenation of the Chinese people, creating a sustainable society where every person can share in the fruits of development.”

Dr Patrick Ho Chi-ping, Hong Kong-born deputy chairman and secretary general of the China Energy Fund Committee (CEFC), a non-governmental organisation that holds special consultative status with the United Nations.

QUOTE Did you know …

Water shortage crisis likely to deepen n While China is home to 21 per cent of the world’s population, it contains only 7 per cent of the world’s freshwater supplies, according to the United Nations.

A 2015 report by the National Academy of Sciences said that China’s water shortage crisis is likely to deepen as the country continues to develop. Government efforts to try and redistribute water from relatively water-wealthy regions in the south to more parched provinces in the north are also likely to further worsen the problem, reports the Wall Street Journal.

In an interview, co-author Guan Dabo, professor at the University of East Anglia in the UK, criticised the so-called South-North Water Transfer Project – a US$81 billion effort to re-route water from the south to the drier north – in particular.

While the government has touted its elaborate solution to the Chinese capital’s rapidly falling water table, Guan said that by 2020 the additional water infusions brought by the project – which last year began delivering water to Beijing – would likely satisfy only 5 per cent of the city’s overall demand.

To address the country’s appetite for water, Guan advocates a greater push for more effective use, such as fighting leakages in agricultural irrigation, as well as consumer cutbacks and a shift toward less water-intensive industries, such as the service industry.

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n … that the 13th Five-Year Plan (2016-2020) is the first such plan formulated under President Xi Jinping’s leadership and considered to be strategically important, as the year 2020 will be the centennial anniversary of the founding of the Communist Party of China and the deadline for realising China’s goal of becoming “a moderately prosperous society in all respects”?

Too little too late n Since 1 January 2016, all Chinese couples have been allowed to have two children due to concerns about an ageing population and a shrinking workforce which forced the government to abolish the country’s controversial one-child policy.

This policy, which was instituted in the late 1970s, restricted most couples to only a single offspring through a system of fines for violators and even forced abortions.

The authorities argued for decades that it was a key contributor to China’s economic boom and had prevented 400 million births.

However, China’s population, the world’s largest at 1.37 billion, is now ageing rapidly and suffers from a severe gender imbalance, while the country’s workforce is shrinking.

Under the new law, married couples are now allowed to have a second child, but the legislation maintains limits on additional births.

In November, the National Health and Family Planning Commission predicted that about 3 million extra babies will be born each year over the next five years as a result. This would add a total of about 30 million people to the labour force by 2050, officials said.

Still, experts say the shift is likely too little, too late to address China’s looming population crisis.

“The abolition of the one-child policy is unlikely to have a big near-term impact on the economy,” said Chang Liu of Capital Economics to CNN Money.

“This move is targeted at longer-term demographic shifts in China.”

First, it will take years before babies born as a result of the policy change are old enough to join the workforce.

Many couples may not even want to have more children as they choose to spend rising wealth on a better standard of living. Other lifestyle concerns, such as heavy pollution, and political uncertainty may also act as a deterrent to having more children.

Four myths about China (2)

A bumpy road to sustainability Significant policy adjustments are required in order for China to become sustainable, as China’s investment-driven growth model has come to an end.

Text: Jan Hökerberg jan.hokerberg@bambooinasia.com

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D

ozens of major Chinese cities have worse air than permissible in a smoking room in a US airport. Access to arable land is another problem; some 20 per cent is polluted by heavy metals. Access to water, which is scarce in northern China, is perhaps even more acute, with 60 per cent of the country’s water unfit for human consumption.

“When I lived in Shanghai I couldn’t even cook pasta in tap water,” says Karine Hirn, partner of East Capital, an asset manager that recently decided to change the direction of its China fund and mainly invest in companies with sustainable solutions (see separate article).

“Fears of water shortages are alarming Chinese officials so much that roughly half of the newly allocated environmental funding in the 13th Five-Year Plan is expected to go to water projects,” Hirn says.

Year after year, China’s leaders relied on a development model based on doubledigit annual gross domestic product (GDP) growth in order to keep the unemployment rate low, not only in the interests of creating social stability and a harmonious society, but also in order to ensure the Chinese Communist Party retained its place at the helm.

Today, double-digit growth figures are a thing of the past and China has entered its 13th Five-Year Plan, which was adopted in March, focusing on a more balanced and sustainable economic development.

In the plan, the central government sets the annual GDP growth target at 6.5 per cent over the next five years. The growth target reflects the Chinese Communist Party’s long-term goal of doubling the country’s GDP and household income in a decade and fulfil President Xi Jinping’s so– called “Chinese dream” of a “moderately prosperous society” in 2020.

“China’s growth model – the way we knew it 15 years ago – is over,” says Hirn. “The average disposable income per capita moved from US$930 in 2000 to close to US$8,000 in 2015. Today, more than half of the Chinese population live in a city and the transition from an infrastructure-driven economy towards a service-driven economy already started under the previous Five-Year Plan.

That structural adjustment process is focused on the quality and sustainability of growth.”

According to the plan, a fifth of the country’s energy sources will be renewable in 2030. China is, today, the world’s leading producer of renewable energy and No 1 when it comes to wind power and solar power.

As China’s economy slows down after more than two decades of unparalleled growth, some observers predict that this could herald the collapse of China and that its political and economic system is unsustainable in the modern world.

For this year’s four issues of Dragon News, the Swedish Chambers of Commerce in Hong Kong and China will analyse some of the myths surrounding China’s future development, such as “China cannot innovate”, “the Chinese model is not sustainable”, “Hong Kong is just a part of China” and “China has no global brands”. Are these myths true or false? Read for yourself to find out.

“In the 1990s, China was already talking a lot about sustainability, making many proud, high-level declarations without much happening,” says Karl Hallding, senior research fellow at the Stockholm Environment Institute (SEI) where he is leading the Rethinking Development research theme. “In the 11th Five-Year Plan 2006-2010, China had the ambition of reducing energy intensity – that is, the ratio between the consumption of energy and the GDP – but even if the country did manage to fulfil its goal, the reason for that was not less use of energy but rather substantial increases in the GDP growth rate,”.

From 2006 and onwards, China’s leaders worried about not being able to secure a sufficient supply of energ. As an example, China went from having been a net coal exporter in 2006 to becoming the

DRAGONNEWS • NO.02/2016 11

China’s growth model – the way we knew it 15 years ago – is over.”

Karine Hirn, East Capital

world’s largest coal importer in 2010, while the oil import dependency was expected to grow well beyond the current 60 per cent.

“Concerns about energy security, rather than to limit environmental pollution, were the driving forces for China to put so much effort into a programme for renewable energy sources. This programme is all domestic and largely controlled by the government through investments and subsidies,” says Hallding, who has had extensive experience of international co-operation on environment and sustainable development since the mid-1980s, with a focus on the growing global importance of China and other emerging economies.

“Since there were many winners in China’s peculiar political economy China quickly became the world’s largest market for renewables and Chinese producers of renewable energy became the biggest in the world,” he says.

Hallding believes that China’s real economic growth today could be lower than the official figures and he bases his assumptions on statistical data.

“For more than 10 years, China has had big problems coping with its growth, since it’s been investment-driven rather than driven by productivity and regular market forces. The government has injected capital into production that doesn’t result in output in a regular market. It has led to enormous excess capacity in the heavy industries,” says Hallding.

“This policy has generated economic growth, for certain, but also an extreme increase of greenhouse gas emissions. It’s a growth model that hasn’t benefited anyone except for those who have made money on such economic activities,” he adds.

Hallding points at remarkable dips in China’s current electricity and coal consumption, which could indicate fundamental changes in the Chinese economy.

“Both Chinese and international statistics indicate that coal consumption essentially stalled or even fell in 2014. This was an unexpected break in a long record of rapid year-on-year rises. This sudden stagnation in coal consumption in an economy dependent on coal for two-thirds of its total energy supply is highly significant,” says Hallding.

“The reason for this stagnation is not because of environmental policies; rather it indicates a substantial adjustment – some call it an industrial collapse – in China’s heavy manufacturing,” he says.

Since the early 2000s, heavy industry has generated more than a third of China’s GDP. Output figures from energy-intensive industries, such as iron, steel, cement, aluminium, and so on, grew by 10-20 per cent annually from 2004 to 2014, but now the output is negative, between -5 and -15 per cent, according to Hallding.

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as 4 per cent growth on “the mendacious official data” for a year, Other experts, such as Michael Pettis, a former Wall Street trader and professor of finance at Peking University’s Guanghua is a consumption-oriented fiscal stimulus program funded by the School of Management, are warning of the growing imbalances in central government and monetised by the People’s Bank of China, the Chinese economy.

Buiter said in August last year, according to Bloomberg.

Pettis argues, in an interview in Fortune magazine, that the Others, such as the e-commerce giant Alibaba’s executive Chinese economy is following the example of many other countries, chairman Jack Ma, are more optimistic about China’s future and like the Soviet Union following World War II, the Brazilian economy believes that China’s economy will face “a difficult three to five in the 1970s, and Japan in the 1980s. In each of these cases, national years” but the slowdown will be good for long-term development. governments put forward policies that artificially boosted investment In a recent interview in the South China Morning Post, which he and suppressed consumption, policies that led to a fast build-up of recently acquired, Ma dismissed fears that China would follow growth and large trade surpluses. But eventually these imbalances go Japan’s route to stagnation, saying the country still had huge into reverse, and that is what is happening now. potential waiting to be tapped.

Christer Ljungwall, head of the office of Comparing China to an ocean liner, Ma said science and innovation at the Swedish Agency for the Chinese leadership understood the country’s Growth Policy Analysis in Beijing, says he can see old growth model was unsustainable and that they some similarities: needed to chart a new course.

“The most difficult process of any fast growing “It is easy for a small boat to change its course. economy is the adjustment period during which time But as the world’s second-largest economy, China The annual GDP growth the imbalances generated by rapid growth have to be is like an ocean liner ... We have to choose either target in China’s newly addressed and resolved. For Japan the adjustment has not to slow down and overturn the ship, or to slow adopted Five-Year Plan.

– at least until recently – been locked into stagnation, a bit to make the turn,” Ma said in the interview. while for Brazil the adjustment has been brutally difficult and the economy is currently in rapid decline,” says Ljungwall.

Since initiating market reforms in 1978, China has “It is risky to generalise, but some aspects of China’s growth experienced rapid economic and social development, lifting more are similar to that previously experienced in Japan. For example, than 800 million people out of poverty. investment fuelled growth is accompanied by rapidly rising debt “Rapid economic ascendance has brought on many challenges levels and too little economic reform. There is a risk that China as well, including high inequality; rapid urbanisation; challenges to underestimates the difficulty of adjustment and starts this process environmental sustainability; and external imbalances. China also too late to avoid a financial crisis,” he says (read the full interview on faces demographic pressures related to an ageing population and pages 22-23). the internal migration of labour,” the World Bank said in a China Citigroup Inc’s chief economist Willem Buiter, who has also been Overview report in April this year. an external member of the Bank of England board, thinks that China “Significant policy adjustments are required in order is sliding into recession and the leadership will not act quickly enough for China’s growth to be sustainable. Experience shows that to avoid a major slowdown by implementing large-scale fiscal policies transitioning from middle-income to high-income status can be to stimulate demand. more difficult than moving up from low to middle income,” the The only thing to stop a Chinese recession, which Buiter defines World Bank concludes. b

6.5%

The reason for this stagnation [in coal consumption] is not because of environmental policies; rather it indicates a substantial adjustment – some call it an industrial collapse – in China’s heavy manufacturing.”

Karl Hallding, Stockholm Environmental Institute

DRAGONNEWS • NO.02/2016 13

Sustainable investments The vibrant side of the China story can be found in the service sectors and in strategic emerging industries, such as clean energy, new energy vehicles, healthcare, internet, and so on. These industries are the drivers of growth today, according to Karine Hirn of East Capital.

It takes courage to take on a challenge.

Recently, the asset manager East Capital changed the direction of its China fund to invest mainly in companies whose products, services, technologies and infrastructure bring sustainable development solutions to China.

“In China, where there is already a lack of sufficient water and arable land for the world’s most populous country, it will create serious threats to sustainable growth and implicitly to social order if these challenges are not properly addressed. This is why the Chinese government has started to implement strong policy support and large investments in the environment,” says Karine Hirn, partner of East Capital.

“As a result, the environmental theme for China offers a strong potential for attractive returns with an investable universe consisting of fast-growing and innovative companies, many of which are upcoming global leaders,” she says.

Economists and analysts debate whether China is heading towards a soft landing or a hard landing. Hirn does not believe that China’s economy will collapse: “China is not heading towards a hard landing scenario. The ongoing structural adjustment process is mainly impacting primary and secondary sectors and the government is committed to restructuring them in an orderly way. At the same time, there is a vibrant side of China that is often hidden: the ‘New China’ characterised for example by the service sectors and the strategic emerging industries, such as clean energy, new energy vehicles (NEV), healthcare, internet, and so on. These industries are the drivers of growth these days and we will continue to see them contribute to a growing GDP looking ahead.”

About 70 per cent of East Capital’s China fund portfolio consists of shares listed in Shanghai or Shenzhen – socalled A-shares. Hirn points to Chinese companies that she believes could have a great future and contribute to a more sustainable China.

“We like Beijing Origin Water, for example – a leading provider of membrane-based water-treatment solutions in China. We also like BYD, China’s first auto manufacturer to develop in the NEV business, as well as Huaneng Renewables, a renewable-energy company with a focus on wind power generation.”

China is already the largest clean-tech market in the world and it is mainly dominated by Chinese domestic companies.

“Over the past 10 years, Chinese companies have been demonstrating a very strong ability to climb up the innovation

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Even when it comes for free.

Together with The Carl Silfvén Foundation, Stockholm School of Economics is proud to present a scholarship, giving you the opportunity to earn an Executive MBA in Stockholm, Sweden. Covering the entire tuition and additional expenses. All you need is courage.

Read more and apply at www.hhs.se/scholarship Deadline August 31

China is not heading towards a hard-landing scenario.”

Karine Hirn, East Capital

ladder and to offer solutions than can compete with foreign companies. This is particularly the case in water treatment and waste management technologies, electric vehicle battery production, solar panels, wind turbine generators, high-speed trains, LED lightning solutions, etc. The list is long and this is reflecting the ultimate ambitions of the government to create national champions that will be global leaders in their respective areas within five years.”

II N T E R N A T L II V E T Ö P P N A R N T E R N A T L V E T Ö P P N A R I N T ER NAT LI V ET ÖPPNA R EN EN N E

VÄR LD VÄ ÄR RL LD D V

AV AV V A

M ÖJ LIG H E TER MÖ ÖJ JL L II G GH HE ET TE ER R M

Sustainable manufacturing QuizRR has developed an educational tool that helps brand owners and suppliers to train their employees to become more aware of rights and responsibilities in the workplace.

Clothing has always played a big role in Jens Helmersson’s life. After graduation from Uppsala University, he started to work at H&M, where he gained experience in retail, purchasing, marketing and production in countries such as Sweden, Turkey, Romania, Bangladesh and Hong Kong.

Helmersson’s wife Helena also worked at H&M and when she was appointed head of sustainability for H&M in 2010, the couple moved from Hong Kong to Sweden. Helmersson had spent 14 years with H&M and wanted to take on new challenges. He found a job as purchasing manager at Indiska, an India-inspired retail chain in the Nordic countries, where he stayed for two years.

However, in Bangladesh a few years earlier, he met Sofie Nordström, who at that time was producing training material for global brands, such as videos for H&M’s suppliers, in which they learnt about fire protection, safety and other important workplace regulations.

In 2013, Helmersson and Nordström continued the discussion on how they could use their experience to help more workers. They came up with an idea to develop what Nordström had worked with into a digital educational tool to ensure decent working conditions and safe workplaces.

“Our idea was to combine videos with a quiz, all on tablets, and create a tool that made it possible to not only educate the workers but also measure sustainability progress,” says Helmersson.

Helmersson and Nordström co-founded QuizRR (the two “R”s stand for rights and responsibilities). Nordström runs the company from Sweden, while Helmersson moved back to Hong Kong with wife Helena and their two children last year, after Helena became H&M’s global head of production.

QuizRR faced many of the hurdles that small startup companies deal with. However, the interest was there from some bigger companies, such as Clas Ohlson and Antonia

16 DRAGONNEWS • NO.02/2016

Our ambition is to have trained two million workers by 2020.”

Jens Helmersson, QuizRR

Ax:son Johnson Foundation for Sustainable Development (Axfoundation), which bought licenses in advance so that QuizRR could finance building the product.

A business incubator, the Centre for Social Entrepreneurship Sweden (CSES), also supported QuizRR with legal advice, coaching and an office. A digital design firm, Ocean Observations, halved its price for developing the tool.

“With the funding in place, which also included our own savings, we could start to develop QuizRR 1.0. We went to Bangladesh and China four times to evaluate the users’ ability to understand the tool before spending any money on IT development and we also produced videos in local languages with local actors,” says Helmersson.

A pilot project that involved almost 3,000 training sessions was held in China in the autumn of 2015, with participation of managers and workers from 12 factories that supply brands such as Lindex, MQ, Filippa K, Axfood and Intersport. A finished solution was launched with kick-off meetings that were held in Shanghai and Shenzhen in April this year and more than 50 factories, that are suppliers to Swedish companies, have joined today.

A similar pilot project is also underway in Bangladesh.

“We believe that our solution comes at a right time,” says Helmersson. “China is moving from being a low-price manufacturing country to more value-added production, where factories need to live up to taking more responsibility. Our tool secures the employees’ understanding of workers’ rights, workplace policies, health and safety regulations, fire and building safety and workplace dialogue.”

In a short period of time, QuizRR has grown from three to nine people, and earlier this year three financiers joined to help the company with the funding.

“Our ambition is to have trained two million workers by 2020. We hope to open two new markets each year, with Cambodia, Vietnam, Indonesia, Myanmar and Ethiopia next on the list,” says Helmersson.

Här kommer du att träffa lärare som: Här kommer du att träffa lärare som: •Här Motiverar sina och lärare kännersom: ansvar för att alla elever lär sig kommer duelever att träffa

• Motiverar sina elever och känner ansvar för att alla elever lär sig • Får alla elever känna delaktiga påför lektionerna Motiverar sina att elever ochsig känner ansvar att alla elever lär sig • Får alla elever att känna sig delaktiga på lektionerna • Tror på varje förmåga och lär känna varje elevs styrkor Får alla eleverelevs att känna sig delaktiga på lektionerna • Tror på varje elevs förmåga och lär känna varje elevs styrkor • Stimulerar allaelevs elever att vara öppna, kunna lyssna påstyrkor andra och umgås Tror på varje förmåga och lär känna varje elevs • Stimulerar alla elever att vara öppna, kunna lyssna på andra och umgås alla sorters människor, vilket är egenskaper som viktiga förumgås • med Stimulerar alla elever att vara öppna, kunna lyssna påärandra och med alla sorters människor, vilket är egenskaper som är viktiga för framtidens arbetsgivare. med alla sorters människor, vilket är egenskaper som är viktiga för framtidens arbetsgivare. framtidens arbetsgivare.

Vi har en mångårig erfarenhet av utlandssvenska skolungdomar. Många har Vi har en mångårig erfarenhet av utlandssvenska skolungdomar. Många har inte svenska som sitt erfarenhet modersmålav vilket inte är ett hinder för att börja på SSHL. Vi har en mångårig utlandssvenska skolungdomar.

Många har inte svenska som sitt modersmål vilket inte är ett hinder för att börja på SSHL. Vi tarsitt emot elever under i mån för av plats. inte svenska som modersmål vilkethela inte läsåret är ett hinder att börja på SSHL. Vi tar emot elever under hela läsåret i mån av plats.

Vi tar emot elever under hela läsåret i mån av plats.

SOMMARKURSER SOMMARKURSER SOMMARKURSER Bli bättre på svenska Bli bättre på svenska BliIntensiv bättre språkträning på svenska

Intensiv språkträning Intensiv språkträning Svenska traditioner Svenska traditioner Svenska traditioner Utflykter till Stockholm Utflykter till Stockholm och Uppsala Utflykter till och UppsalaStockholm och Uppsala

PROVBO PROVBO PROVBO Det finns möjlighet att provbo Detskolan finns möjlighet provbo på gratis ochatt uppleva Det finns möjlighet att provbo på skolan gratis internatlivet medoch tre uppleva fulla skoldagar. på skolan gratis och uppleva internatlivet med tre fulla skoldagar. internatlivet med tre fulla skoldagar.

Välj mellan speciella provboende Välj mellan provboende helger eller speciella boka in någon annan tid Välj mellan speciella provboende helgerterminerna eller boka in någon annandig. tid under när det passar helger eller boka in någon annan tid under terminerna när det passar dig. under terminerna när det passar dig.

www.sshl.se www.sshl.se www.sshl.se

Sustainable agriculture A self-cleaning, moving floor for pigs, cows and calves leads to healthier animals, increased profitability for farmers and, not least, huge environmental advantages. Moving Floor is now targeting China, which could be its next big market.

One day in 1995, the farmer Tommy Lindvall in Ekeby municipality on the Swedish island of Gotland watched a TV programme about gnues on the African savannah. Thousands of gnues live together but are very rarely sick. The reason is that they wander over large areas and never stay in their own or others’ manure. Constant movement gives them much better hygiene.

Lindvall thought about his own farm, which was home to 5,000 pigs, and the difficulties he had cleaning the barn floors with water – a task that could only be carried out twice a day by hand. It was not possible to move the animals, so he came up with the idea of moving the floor.

After his invention was ready, he applied for his first patent, which was quickly approved. Lindvall was surprised to hear that no one had done this before.

Agriculture is the basis of human life but it also causes huge negative environmental impacts. According to the Food and Agricultural Organisation (FAO) of the United Nations, a cow releases as much emissions as a car and a pig consumes a half bathtub, or 170 litres, of water per day only for cleaning its living area. Between 70 and 80 per cent of all antibiotics in the world are used for animals. The FAO estimates that food production needs to double by 2030, while the environmental impact needs to decrease by 50 per cent.

The sustainability advantages of Lindvall’s invention, Moving Floor, were enormous. It cleans the floor around 15 times per day, thereby preventing significant bacterial growth.

No water is used in the cleaning process: rather the manure is transported away on rolling hoops.

However, running a farm is a time-consuming job and Lindvall had little time to run a company on the side. In 2009, he let his two daughters, Peg Söderberg and Katja Lindvall, develop the business. The Moving Floor technique had been approved by Swedish Board of Agriculture and systems were developed for pigs, cows and calves. Today, some eight families of patents in up to 28 countries have been approved.

“We’ve installed our concept at 100 farms in northern Europe,” says Katja Lindvall.

“We’re collaborating with universities to prove the concept’s functionality,” she says. “Tests have shown indications of a 2030 per cent increase in daily growth of calves, which not only means healthier animals but also increased profitability for the farmers. Furthermore, with our concept, ammonia emissions are 95 per cent lower compared to conventional systems.”

China could be a big future market for Moving Floor. Since its launch in 2009, the company has sourced half of its components in China for the manufacturing that takes place in Ekeby. Prefabricated modules are delivered to the farms in flat, freight-optimised packages. Mounting and installation is done on-site.

As urbanisation has become an engine of future development, China is now also focused on making the agricultural sector more efficient. China’s State Council has initiated goals for significantly changing the way the country’s agriculture is running by 2030 – for example, by speeding up the establishment of highly productive farms equipped with modern facilities and managed with the assistance of modern technology.

“Over the past year, we have noticed much increased interest from China. At the moment, we are working on establishing demonstration farms in China. Since our products are based on modules, they work well in both big and small farms,” says Lindvall.

Demonstration farms will be set up outside Beijing and in Hainan and Shanxi provinces. The company is also collaborating with China Agricultural University and Tianjin Animal Science and Veterinary Research Institute.

“We are still a small company, but if can get a breakthrough in China we will probably set up production there,” says Lindvall.

With our concept, ammonia emissions are 95 per cent lower compared to conventional systems.”

Katja Lindvall, Moving Floor

18 DRAGONNEWS • NO.02/2016

Sustainable fabrics SpinDye has invented a process for manufacturing of fabrics, reducing water usage by 85 per cent and the use of chemicals by 73 per cent, while demanding half the energy compared with conventional dyeing.

Andreas Andrén moved to China in the early 2000s, when he and his brother, and later another Swedish partner, developed a street-wear brand. They also sourced suppliers and conducted quality control for other Swedish and European brands.

Eventually, in 2011, they sold their business to a Chinese company but continued to work for the new owner who was based in Hangzhou.

Back in Sweden, Andrén met with Axel Mörner and Martin Berling, two entrepreneurs who had founded a company called We are SpinDye (WRSD), or simply SpinDye. In October 2014, Andrén joined the company as chief operating officer.

SpinDye’s vision is to dramatically reduce the textile industry’s dependence of water.

“Our ambition is to become the world leader of sustainable fabrics. With our technology, we’ve managed to reduce water usage by 85 per cent and use of chemicals by 73 per cent, with only about half of the energy consumption compared with conventional dyeing,” says Andrén.

Spin dyeing is not a new technology. It has been used by the automotive industry for interior textiles in cars, but SpinDye has refined it so it suits clothing manufacturers, which generally manufacture in smaller quantities and use much thinner threads.

Conventional dyeing is normally carried out with a special solution containing dyestuff, chemicals and large volumes of water. Spindye’s technology takes water out of the process, with pigments added to the spinning solution before the solution is extruded.

Through this process, the colour pigments become a part of the fibre, and the fabric gains excellent colour fastness that stands up to light, washing, rubbing and perspiration.

“The end-consumer normally doesn’t want to pay extra for a sustainable solution, so it should be considered a bonus. Today, customers also expect their suppliers to work in a sustainable way. That’s why we can’t rely on simply being sustainable – we also have to show that the performance is better with our technology. Using our SpinDye process the colours become part of the fibre resulting in outstanding colour fastness performance and gives garments a longer lifetime,” says Andrén.

SpinDye’s suppliers, such as master-batch manufacturers, spinners, weavers and knitters, are all located in China and the company delivers finished fabrics to its clients.

One of SpinDye’s first customers is Fjällräven, a Swedish company specialising in outdoor clothing and equipment; for example, the popular lightweight Kånken backpack. Fjällräven is using SpinDye’s fabrics for a new version of Kånken that will be released later this year.

SpinDye is still in the startup phase but has eight employees in Stockholm and three in China.

“Conventional dyeing of textiles causes around 20 per cent of the whole world’s water pollution, so our technology could have a huge impact,” says Andrén.

Our ambition is to become the world leader of sustainable fabrics.”

Andreas Andrén, SpinDye

The analyst

“It will be bad, but probably not catastrophic” Christer Ljungwall, counsellor for science and technology and head of the Swedish Agency for Growth Policy Analysis’ office in Beijing, gives his view on China’s current economic situation in China and the prospects of a more sustainable future.

Text: Jan Hökerberg, jan.hokerberg@bambooinasia.com

Some analysts believe that China’s growth model is so unsustainable that it could be in for a hard landing, even a collapse, or a long-term decline of the country’s economy. What is your comment to such a scenario?

“I am worried, and it will be bad, but probably not catastrophic. Combating economic slowdown with credit expansion and infrastructure spending – in China’s case of gigantic proportions – is viable in the long-run only if paralleled by economic reform. Such adjustments are necessary for any economy, but we’ve seen too little reform in China in recent years. As a consequence, rapidly rising debt – in particular in China’s large informal banking sector – has become a serious threat to financial stability. Unfortunately, recent statistics don’t provide much comfort so the situation definitely looks worrisome.

“From a theoretical point of view, the advice to Chinese policy-makers is easy: first, relying on demand driven by debt is a dangerous recipe, and thus China must implement reform that increases household purchasing power; second, overall debt levels must be reduced. These two measures require significant changes, involving the financial system funding economic activity, private enterprises assuming a strengthened role, and a number of institutional changes that would represent a sharp break with the past.

“In practice, these suggestions may be hard or even impossible to achieve within a reasonable timeframe. Markets are not mature enough to accommodate such reforms, and the political system to some extent lacks the capacity to implement them. If not handled appropriately, there will be turbulence. The big question is how prepared the rest of the world is to handle the shock – big or small.”

Can you see any similarities between China’s current situation and the Brazilian economy in the 1970s, and Japan in the early 1990s, when the national governments put forward policies that artificially boosted investment and suppressed consumption?

“The most difficult process for any fast growing economy is the adjustment period when imbalances generated by rapid growth have to be addressed and resolved. For Japan the adjustment has – at least until recently –

resulted in stagnation, while for Brazil the adjustment has been brutally difficult and the economy is currently in rapid decline. It is risky to generalise, but some aspects of China’s growth are similar to the Japan experience.

For example, investment fuelled growth is accompanied by rapidly rising debt levels and too little economic reform. There’s a risk that China underestimates the difficulty of adjustment and starts this process too late to avoid a financial crisis.”

China’s economy has slowed down from decades of double-digit rates to a growth pace around 6-7 per cent. Some economists believe the real growth rate could be even lower and point at indicators such as diminished electricity consumption.

What is your opinion?

“Are the Chinese authorities deliberately forging data? No, I wouldn’t claim that, although there may be instances of incorrect reporting. The system for reporting and collecting data in China is not as developed as in advanced economies. Of course, this leads to various problems. For instance, there may be reasons to be cautious about the GDP deflator, which, if understated will overstate real growth. At the same time, it’s difficult to pin down the rapidly growing service sector, which accounts for almost half the country’s GDP. The large informal economy is also unaccounted for. The low increase in electricity consumption may partly be explained by a structural shift from industrial units to small-scale service enterprises.

Generally speaking, data on GDP is a rather crude measure of economic activity, but if we look at the current situation in a positive way, aggregate growth may very well be in the range of 5-7 per cent.”

China is in for a period of brutally difficult adjustments.”

structural reform – is an attempt by the government to implement measures that may lead to a serious change away from creditfuelled economic growth. This is not a new idea and many policies have been in place for years but have failed to generate substantial changes. Nonetheless, all of this highlights the difficult process to set proper and strict supply-side policies side-by-side with demand-side policies. For the new supplyside initiative to be effective in China it has to be structured to reduce debt and to rapidly increase household purchasing power. Thus, the way in which new reforms are designed will be crucially important and determine whether the adjustment period will be smooth or result in a hard landing for the Chinese economy.”

China’s current growth model will slowly diminish in favour of a new model.”

In March, China adopted its 13th Five-Year Plan, which reflects a move towards domestic consumption, innovation and entrepreneurship in seeking to achieve a more balanced and sustainable economic development. Could this be the beginning of the end of China’s growth model?

“China’s economic adjustment necessarily involves a move towards domestic consumption, innovation, entrepreneurship and less involvement by the government.

Thus, China’s current growth model will slowly diminish in favour of a new model.

None of the changes will be easy and will require significant reform that represents a radical change from the recent past.”

What are, in your opinion, China’s main obstacles on the road to a more sustainable development?

“As stated earlier, my main concern is that the country’s rapidly raising debt levels and the need to reform are not taken seriously enough.

Another obstacle is that a consumption and innovation-led economy requires significant institutional and governance adjustments, some of which are not on the political agenda.”

President Xi Jinping has recently said that he is not completely happy with the reform process, that “the main problems are structural ones, and the key issue still lies on the supply side”. Could his remarks speed up necessary reforms in China?

“China is in for a period of brutally difficult adjustments. While this is well understood by Chinese policymakers, there is tension between the short-term aim to support growth and the long-term goal to make the economy more efficient. The supply-side initiative – including

It is China’s ambition that a fifth of the country’s energy sources will be renewable in 2030. China is already the world’s leading producer of renewable energy and the top nation when it comes to wind power and solar power. Isn’t that a good start to a more sustainable China?

“Yes – it’s a good start and there are massive investments in renewable energy, both public and private. Several sectors in the energy system are highly concentrated in a small number of companies, or are state controlled, such as, for example, the power sector, which facilitates coordination. Investments into infrastructure, on the other hand, need to be better coordinated. For example, large scale investments in solar and wind power infrastructure have, in many cases, failed to be properly integrated into the power grid, and have thereby been wasted.

“Massive investments into renewables may, at the same time, lead to inefficient subsidies for certain industries. China should learn from the large investments into solar PV several years ago, which contributed to flooding the market and eventually led to multiple bankruptcies.

Increased support for renewables is a step in the right direction, but it is important to remember that China continues to be heavily dependent on fossil fuels and accounts for approximately half of global coal consumption. Improving energy efficiency is another crucial step to reduce the country’s carbon footprint.” b DRAGONNEWS • NO.02/2016 23

Volvo picks up pace Volvo Cars have made huge investments in factories, technology and products and in China, Lars Danielson, head of Volvo in the Asia-Pacific, believes that the company could more than double in size within the next few years.

Text: Jan Hökerberg, jan.hokerberg@bambooinasia.com

F

or decades, Volvo had the ambition of selling 500,000 cars per year worldwide but didn’t really make it. However, in 2015, Volvo – now owned by the Chinese automaker Geely – finally reached the target for the first time in the company’s almost 90-year long history.

However, this is just the beginning according to Lars Danielson, senior vice president and head of Volvo Cars operations in China and the Asia-Pacific.

“Our current target is to sell 800,000 cars worldwide in 2020. We’re investing in new factories, technology and products and have ambitious plans to grow in China. Last year, we sold 81,000 cars in China and our target is to more than double that figure,” says Danielson.

In 2015, Volvo became the first car company to export premium cars made in China to the United States. The model being exported is the Chengdu-manufactured S60L sedan, which is a version of the S60 that has an extra eight centimetres of rear-seat legroom for buyers who have a driver and ride in the back.

“Our intention was to show that you’ll get the same quality of car manufactured in China as of a car produced in Europe,” says Danielson.

Volvo is also building a new factory in the US, in Ridgeville, near the port of Charleston in South Carolina.

“With factories in Europe, the US and the Asia-Pacific,

If you want to be successful in China, or Asia, you need to be successful in other parts of the world.”

24 DRAGONNEWS • NO.02/2016

crossover SUV. Another manufacturing Four years later, when Geely acquired plant in Daqing, in the northern province of Volvo Cars from Ford Motor Company, Heilongjiang, will later this year assemble the Danielson was asked if he was willing to be luxury S90 sedan. In Zhangjiakou, a popular responsible for manufacturing in China, ski resort which will be part of the 2022 which included building a greenfield factory Beijing Winter Olympics, Volvo has built an in Chengdu, Sichuan province – Volvo’s first engine manufacturing plant that will go into new major factory investment since 1963. full production this year.

“I said yes immediately. To get a chance Volvo’s Asia-Pacific headquarters is like this at the end of my career is like the we’ll have a much more balanced footprint located in Shanghai in the automotive district icing on the cake. When I joined Volvo and be less exposed to currency fluctuations,” of Jiading, where the company also has an 10 years ago, I could never in my wildest he says. engineering centre and a design centre. Volvo’s fantasies imagine that I would end up in Chinese sales organisation occupies an office China a few years later,” says Danielson.

Danielson was born in 1949 in Åmål, a in the Pudong district.

He stayed in Chengdu the first year municipality in western Sweden, where he At the end of 2014, the second generation but, in 2011, moved to Shanghai, where he also grew up. He has spent all his work life XC90 model was introduced. It was the first shares a flat near the Xintiandi restaurant in the automotive industry: first more than model based on a and entertainment 30 years at Saab Automobile and General new global platform district with his Motors, and since 2006 at Volvo Cars. called Scalable American-Chinese Although most of his positions have been Product Architecture partner Kathy, who within manufacturing, he does not have a (SPA), which Volvo works in purchasing background as an engineer. Rather, he studied The annual number of cars Volvo hopes to has developed at Geely. Danielson mathematics, numerical analysis and informasell worldwide within the next five years – after investing has three grown-up tion processing. After graduation, he joined 300,000 more than today.

US$11 billion in sons in Europe – one Saab in 1980, working in production control new technology. in London and two and logistics, as well as heading the press shop.

A similar, smaller, platform called Compact in Sweden.

After three years with General Motors Modular Architecture (CMA) is also being When the factory in Chengdu was Europe in Zurich, Switzerland, in the 1990s, developed in a joint project with Geely under inaugurated in 2013, Danielson was Danielson returned to Sweden as head of Volvo’s leadership. appointed head of Volvo Cars China and, in production at Saab’s factory in Trollhättan. In April 2015, he was promoted to be the head 2006, he was recruited by Volvo to become of Volvo Asia-Pacific, which, besides China, general manager at Torslanda, Volvo’s factory The premium car segment in China is dominated by Mercedes, BMW and Audi, also includes the company’s sales organisations in Gothenburg. but Volvo is among a group of brands that are in South Korea, Japan, Malaysia, Thailand, chasing the three German automakers, and India, Taiwan and Australia. they include Lexus, Land Rover and Cadillac.

“We have a strong global brand built on In just a few years, Volvo China smart technology, unique Scandinavian design, has grown from around 100 a long tradition of high safety standards and employees, when environmental thinking. For example, our new Danielson arrived, XC90 has got tremendous reviews all over the to more than 5,000 world, including China, and won more than today.

80 awards,” says Danielson.

The factory “However, if you want to be successful in in Chengdu China or Asia, you need to be successful in manufactures other parts of the world. Chinese customers the S60L have good knowledge of products that are extended sedan attractive in the West. You need to have and the XC60 products that the customers want to buy,” says Danielson.

Volvo’s customers in China have a similar profile as in other countries. They are wellLars Danielson about ... educated, wealthy, independent and many are entrepreneurs. ... similarities and differences between the Chengdu facility and Volvo’s factories in “We have a higher share of customers Gothenburg and Ghent, Belgium: “Volvo has the same high level of quality in all our factories; with a university degree than any other brand that’s very important. A difference in China is that the degree of automation in the body shop in the premium segment,” says Danielson. is lower than in Europe. In China, we also have younger staff – the average age among our He enjoys life in China and, when he is white-collar workers is 33 years, which is 10-15 years lower than in Europe.” not working or travelling, he likes to exercise, ... Volvo’s distribution network in China: “We started with 75 dealers and now we have more for example by playing tennis. He doesn’t than 200. We are well represented in tier-1 and tier-2 cities; now we’re building the network in know how long he will stay. “I’m taking one tier-3 and after that we will enter tier-4 cities.” year at a time,” he says. b ... China’s automobile market: “China is the world’s largest auto market, with 20 million cars

800,000

sold in 2015. In the premium car segment, China is now on the same level as the US and will probably, within the next five years, surpass Europe, which is currently the global leader.”

DRAGONNEWS • NO.02/2016 25

This is Sweden

Midsummer M celebration in Sweden Celebrating Midsummer is one of the highlights of the year for most Swedes.

We Turn Downtown Into Upgraded

Upcoming Swedish holidays

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M

Below are some of the holidays, or other celebrated days, in Sweden for the coming months.

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CM

Urbanization is happening faster than ever, and cities have to transform to keep up. We help create smart, connected cities with horizontal platforms that foster collaboration throughout the ecosystem, and enable sustainable services that attract people and businesses.

MY

Sunday 29 May: Mors dag (Mother’s Day). Not a public holiday.

Always the last Sunday in May. Monday 6 June: Nationaldagen (Sweden’s National Day).

Friday 24 June: Midsommarafton (Midsummer Eve). De facto holiday or half day in most companies.

Saturday 25 June: Midsommardagen (Midsummer Day). At Midsummer, many people in Sweden begin their five-week annual holidays.

CY

Welcome to the Networked Society.

CMY

K

Photo: Lena Granefelt/imagebank.sweden.se

Photo: Conny Fridh/imagebank.sweden.se

TEXT: Karin Roos, karin@swedishchamber.com.cn

idsummer – or midsommar in Swedish – is one of the bigger celebrations in Sweden.

The Midsummer Eve celebration always takes place on the last Friday in June, which is 24 June this year.

Women and young children create flower wreaths to decorate their heads and in many parts of Sweden people dress in traditional regional costumes.

Flowers and branches are also placed on the maypole, which is a key component in the celebrations.

On this day, when the sun is up for almost 24 hours, families and friends gather for a day filled with games and ring-dancing around the maypole. Of course, a traditional lunch also needs to be enjoyed outside, even if the weather at this time of year can be very unpredictable in Sweden – rain and chilly daytime temperatures are not unheard of. The traditional lunch consists of herring, new potatoes, chives, sour cream and strawberries and of course snaps shots accompanied with traditional snaps songs.

Many people stay up all night to enjoy the light night and when you go to bed it is a tradition, especially for girls and unmarried women, to pick seven different kinds of flowers to put under your pillow and you will dream of your future prince charming. b

Flowers are picked for decorating the maypole and for making wreaths.

Dancing around the maypole is a Midsummer tradition.

26 DRAGONNEWS • NO.02/2016

Networks

IT

Media

Industries

www.ericsson.com/smart-sustainable-cities

Security in China This is the sixth article in a series about risk and security-related challenges in China, describing a number of actual cases. We analyse the problems, the solutions, and how the problems could have been avoided.

This is an advertisement from PSU.

Photo: istockphoto

“In our investigation, we found out that the distributor had previously acted in a similarly unethical way with another multinational company in Shanghai, and had even seriously threatened the general manager.”

Lars-Åke Severin, PSU China “Sweden is an open society and it is easier to conduct a background check and a risk assessment, even if we seldom do. China does not have such a tradition. However, there are many other ways to find information; for example, through open-source intelligence,” Severin says.

Open-source intelligence (OSINT) is an in-depth professional search of historical data in, for example, newspapers, websites, social media, official databases and so on. PSU China’s investigators can follow the “paper trail” through diverse information sources and use their skills to create valuable intelligence.

While most people undertaking research only use “the shallow internet” – that is the first 10 per cent that comes up in a search – professional investigators can go much deeper.

Check a person’s background – before it’s too late

Foreign-owned companies in China should make it a rule to perform background screenings and risk assessments before hiring key employees or signing contracts with new distributors or suppliers.

I

t is too common today among foreignowned companies in China not to perform any in-depth background screening, or sometimes to not even solicit basic references, when hiring a new key employee or signing an agreement with a distributor or a supplier.

Such lack of risk assessment can turn out to be very costly for the company. Let’s look at a real case that has recently been settled.

Two local top managers in a foreignowned company that established itself in China in 2007 already had a chain of distributors and suppliers. Over the course of the next eight years, they then, directly, or indirectly through family members, became

owners of the company’s entire distribution network, allowing them also to control the supply chain.

Earlier this year, a whistle-blower alerted the Europe headquarters, which reacted and assigned security consultancy firm PSU China to undertake an investigation and collect data. When the information was presented to the two managers, they immediately chose to resign.

No financial claims were Lars-Åke involved in the process, but for Severin the company it meant that it had unknowingly, and for many years, allowed its own managers to earn

big profits on the side. Such a situation could probably have been avoided with background screenings and regular follow-ups.

“When hiring a key employee in a management or financial position, or in sourcing and purchasing, it is very important to do a background screening. The same applies to distributors and suppliers that the company expects to have a long-term relationship with,” says Lars-Åke Severin, chief executive officer (CEO) of PSU China.

In his experience, very few companies perform such screenings, even if it is well known that resumes are often incorrect or made-up in China.

For example, a candidate may include an incomplete education or falsify the number of years spent in a job to hide a period of unemployment.

To take another example, a multinational company in Shanghai had been using a local distributor for a number of years. When the company discovered that the distributor had been acting unethically and trying to bribe customers for some time, the contract was terminated. However, the distributor refused to accept the termination and the situation escalated into a conflict that saw the distributor fill the company’s office premises

with a large number of boxes. The general manager had to flee to the server room.

Eventually, the case was settled, but the company could have avoided the situation by carrying out a background screening of the distributor before assigning him.

“In our investigation, we found out that the distributor had previously acted in a similarly unethical way with another multinational company in Shanghai, and had even seriously threatened the general manager,” says Severin.

“It’s also important to perform regular follow-up screenings of employees, distributors and suppliers, even if they have come out clean in previous screenings. In our Scandinavian mind-set we like to trust people, but even when someone has passed the test one or two years ago, it doesn’t mean that they will pass it again,” he adds.

Conclusions Below are some pointers on what a foreignowned company in China should think about when hiring a key staff member or signing a contract with a distributor or supplier.

• Decide what key functions in the company should be subject to a detailed background screening before hiring. This is a riskidentification exercise.

• Perform background screenings of distributors or suppliers that your company expects to engage in long-term relationships.

• Do not hesitate to follow up if questions arise during a screening. Such questions need not disqualify hiring, as there may be a natural explanation.

• Perform regular follow-up screenings of key employees, distributors and suppliers. Just because they were clean two years ago does not mean they will never act unethically.

Remember that, in China, if you do not follow up frequently, you are a part of the problem, not the solution.

An advantage for foreign-owned companies in China is that most new key employees that are hired have previously worked for other foreign-owned companies.

“This means that their digital footprints are easier to follow up on. Furthermore, the more the internet grows in scope the easier it is to draw on open sources,” says Severin.

Facts about PSU PSU was established in 2006 and is one of the leading security consultancy firms in China, with offices in Beijing and Shanghai. PSU has strategic partnerships in Asia, Europe and the US. We protect our clients’ most valuable assets: people, brands, reputations and business operations.

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A feeling for fabrics Meet the person, the designer, and the brand behind Viktoria Chan.

Chan launched her business at the young age of 22, financing it with her own savings and borrowed money from her parents.

“I still do some design projects on the side to cover my personal expenses, since all profits are reinvested into my company,” she says.

Chan works full time with the brand and has hired two interns; one in Sweden who focuses on signing more resellers and one in Shanghai who helps her with the design process. She has considered taking investors on board, but on the condition that they can provide more than financing.

“Contacts and knowledge are equally as important in this industry,” she says. Chan also admits that a mentor could be useful to sound off all the thoughts and doubts running through her head, which have to be faced and are part of running a sole entity.

Each piece has to contribute to a collection and it is easy to see that a great deal of thought has gone into each and every seam. “I enjoy working with almost all types of fabrics, from wool to silk. My only requirement is that the fabric should not feel cheap when you wear it,” she says.

Her interest in sewing dates back to her early childhood. She recalls how her kindergarten days were rather spent indoors weaving, rather than playing outside with the other children. Her graduation project in upper secondary school was to execute a fashion show with 50 handmade pieces.

The project received publicity in the local media and she was awarded a scholarship for the best project of the year. When she had started her university studies, friends asked her to design their prom and graduation dresses.

TEXT: Helena Storsten, helena.storsten@gmail.com

T

Top Flowy Silk Glown dress from the 2016 collection.

Middle TV host Gina Dirawi (left) wears a Viktoria Chan designed dress.

Bottom Princess Sofia entered the Svenska Akademien’s ceremonial gathering with Prince Carl-Philip in a dress from Viktoria Chan.

he Mandarin grammar books were barely While she felt confident with business management opened when Viktoria Chan nestled and a sewing machine, she was a complete beginner – into Shanghai’s fabric market as if it but, nevertheless, an eager learner – when it came to were her new home, and embarked on the fashion industry, which is well known for being the adventure of owning her own fashion label. After fiercely competitive, for its superficial attitudes and as a long hours in the studio, she now has a client base black hole for struggling small brands. that includes Swedish royals and well-known media Despite having no contacts in the industry in either personalities, who frequently wear her pieces on the Sweden or China, she designed her first collection, prime time. while contacting various bloggers, media personalities Her studio in Jing’an District in downtown and fashion magazines in Sweden.

Shanghai contains two working desks, a big sofa, and racks along the walls. The racks are filled with both As early as 2014, the Swedish women’s magazine past creations and upcoming collections. Customers Damernas Värld wrote that Chan’s designs were unique and resellers visit the studio frequently to get a tailored and described her as one of the year’s “most interesting dress or check out her latest designs. and upcoming designers”. The words “The clothes are contemporary gave fuel to her fire and she continued Viktoria Chan in brief evening-wear, but you can wear them produce collections at a high pace. at the office and directly head off to “There are significant differences Age: 25. an after work,” Chan says. between the fashion industry in Lives: Shanghai.

The brand’s main target Sweden and China. For example, in Hometown: Ängelholm. group is professional women, Sweden you need to produce and Occupation: Designer and who are independent, active, and present your collection one year founder of Viktoria Chan, sophisticated. One collection includes ahead in order to sign contracts with www.viktoriachan.com. between 35 to 40 pieces, and it is resellers, whereas here in China you Studio: 3/F, 1434 Beijing hard to believe that all these creations can promote a collection closer to the West Road, near Tongren on the racks have gone from sketches launch. Additionally, the lead times Road, Shanghai. to finished apparel since the brand’s are shorter here, and my Chinese Time in China: Moved to establishment in October 2013. customers can receive a tailored dress Shanghai one and a half within two weeks,” says Chan. years ago.

In order to align herself with With roots in Shanghai and Best about Shanghai: Hong Kong, Chan visited Asia the pace of the industry and make “People are very friendly regularly during her childhood. After her products attractive to Swedish and spontaneous; there finishing her business studies at Lund resellers, Chan had to work at breakis always something to do University, she came to Shanghai neck speed. and new people to meet.” in August 2013, with no plan other “In one year, I designed and than to study Mandarin. “I speak produced three collections, created Shanghainese and Cantonese, but Mandarin was a lookbook, a web shop and a stringent brand for completely new to me,” she says.

Viktoria Chan.”

However, she quickly discovered she was more interested in strolling around the fabric markets than From simply starting with a the vision of “making practicing Mandarin grammar and characters. “All nice clothes that people will buy” she created a those beautiful fabrics; I might be naïve, but I had to portfolio and managed to keep abreast of the industry’s do something with them,” says Chan enthusiastically. quick pace. Chan describes her four main focus areas: Running her own fashion label had been on her Product and design: “You need to have a great bucket-list since upper secondary school, so when the product, with noteworthy design, high-quality opportunity finally arose, she told herself, “Why not materials and production.” give it a go?”.

Production and sourcing: “You need fabrics with

30 DRAGONNEWS • NO.02/2016

great quality and at great value. It may sound obvious, but it’s tricky when producing smaller quantities.”

Marketing and social media: “You need publicity. You have to make sure that people are talking about your collections.”

Sales: “Sales are essential. The web shop is a great way to make the collection visible around the clock. However, selling clothes online at a premium price is not that easy since customers often want to feel the fabric and check the fitting before they buy.”

In one year, I designed and produced three collections, created a lookbook, a web shop and a stringent brand.”

Chan’s main goal is “to be displayed at exclusive international stores, to see my clothes being worn by my target group and to run my own concept stores”.

She is well on her way. Swedish luxury retailer Nordiska Kompaniet (NK) has sold her collections and well-known celebrities have worn her creations at high-profile events. Most recently, the politician Ebba Busch Thor wore one of Chan’s dresses at King Carl Gustaf ’s 70th birthday. Furthermore, Princess Sofia refers to Viktoria Chan as one of her favourite designers.

Chan’s advice for future young designers is: “Don’t wait. Think big, and surround yourself with people that support you. But don’t forget to be patient – it all takes its time.” b DRAGONNEWS • NO.02/2016 31

Hong Kong

Investing in Asia’s internet sector n It was full house at KPMG’s office in Prince’s Building on 5 April when John Lindfors, managing partner of DST Investment Management, shared his insights on private equity investing in Asia’s internet sector. Lindfors talked about growth drivers in the sector, regional differences and deal challenges when investing in the Asian internet sector. He also shared his views on the outlook for 2016 and beyond. We thank him for sharing his knowledge at this interesting event.

Thanks also go to Karine Hirn of East Capital for moderating and for great questions and to KPMG for having us.

John Lindfors and Karine Hirn talked about investments and growth drivers in Asia.

Hong Kong’s future as a sustainable city

From left, Nicholas Brooke, Richard Lancaster, Christine Loh and Vincent Connor discuss how to make Hong Kong more sustainable.

A great Valpurgis Junk n On 30 April, The Young Professionals arranged a Valpurgis Junk together with the Finnish Chamber of Commerce in Hong Kong. We had a great day outside Repulse Bay with great food, lounge music and many friendly people to talk to. The next junk will be a Midsummer junk. Stay tuned.

32 DRAGONNEWS • NO.02/2016

n A sustainability lunch meeting on 21 April, titled Hong Kong’s Liveable City and Sustainability Agenda, was well attended. Around 100 participants heard about what is going on now and what is next for Hong Kong when it comes to making the city more sustainable.

Keynote speaker Christine Loh, undersecretary for the environment, talked about how to make Hong Kong a truly liveable city and outlined how the government is responding to the challenge. Richard Lancaster, CEO of CLP Holdings, shared his views on the topic and described what he believes could and should be the role of business and the private sector. Nicholas Brooke, chairman of the Harbourfront Commission, shared his views on the roles and responsibilities of various stakeholders and discussed what he believes are the aspirations and expectations of the community.

After the speakers’ presentations, the floor was open to a rewarding Q&A session moderated by Vincent Connor, head of the Hong Kong office of the Pinsent Masons law firm.

Big thanks to the speakers and the moderator for taking their time and also to the Hong Kong General Chamber of Commerce for the venue.

Beijing

Breakfast seminar with Jacob Wallenberg n On Friday 18 March, the Swedish Chamber of Commerce in Beijing had the pleasure to welcome the Swedish banker and industrialist Jacob Wallenberg to a breakfast seminar, where he spoke about business development in China from a Nordic perspective and the challenges facing international leaders globally. Wallenberg talked about China’s rise in the world economy and its stronger competitiveness, which he claimed a lot of Westerners underestimate. He also discussed the possible outcomes of China being recognised as a full-market economy by the World Trade Organisation (WTO), if the country can fulfil the requirements, and the effects it would have for Nordic companies as well as for the global economy.

The Beijing Planning Exhibition Hall features a scale model of the entire Beijing metropolitan area.

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Shaping the future of Beijing

Jacob Wallenberg together with Sandra Holtz Ivarsson of the Swedish chamber’s Beijing office.

n China is developing rapidly, with the fastest growing economy ever known, and as a consequence mega cities emerge and entire cities change significantly within few years. What will happen to the skyline of Beijing in the near future? The Swedish chamber wanted to find out and arranged an English-speaking guide for a Friday afternoon at the Beijing Planning Exhibition Hall, where we got an introduction to both the history behind why Beijing is shaped the way it is today as well as all the plans for shaping the future of Beijing. The exhibition hall features a scale model of the entire Beijing metropolitan area, as well as multimedia exhibits on the history, current situation, and future of urban planning in Beijing. After the tour, the participants had a well-deserved after work cocktail at the delightful Capital M’s terrace looking out over Tiananmen Square.

Insights into Pyongyang n What is happening on the “home front” and what does a defence attaché do in China and North Korea?

On Thursday 14 April, the chamber had the pleasure to invite Rear Admiral Mats Fogelmark, defence attaché at the Embassy of Sweden in Beijing and Pyongyang, North Korea, for a discussion about the defence situation back home in Sweden and Sweden’s partnership with the North Atlantic Treaty Organisation (NATO). Furthermore, he also discussed Sweden’s relationship with North Korea and China. Fogelmark is one of few defence attachés in the world who is accredited in North Korea, providing a unique opportunity to offer insights into this secretive closed-door country.

The evening featured open and informal discussions in which everybody joined and shared their views of the different topics discussed throughout the event.

34 DRAGONNEWS • NO.02/2016

Flexible

From left, Fredrik Ektander (SEB), Lars-Åke Severin, Erik Engstrand (both PSU China) and Mats Fogelmark.

Shanghai

Revolutionising the mobile world

Michael Tidebäck from OnePlus tells the interesting story of a Chinese startup.

The recipe for success in China

How virgin fibre can add a sweet scent of success.

n In the evening of Friday 4 March, Michael Tidebäck, a member of the OnePlus team, discussed the success story of the Chinese smartphone startup that went from 19 users on a forum to a US$300 million turnover company in a year on a US$10,000 marketing budget.

At the event, which was held in the Mexican-inspired Maya restaurant, Tidebäck shared a story filled with ups and downs. After the speech, a Q&A session took place joined by some of Tidebäck’s OnePlus colleagues.

Tobias Glitterstam presents some of the conclusions in Business Sweden’s study.

n At a Swedish Chamber morning seminar at the Fairmont Peace Hotel on 21 April, Tobias Glitterstam, trade commissioner at the Swedish trade and invest promotion agency Business Sweden, presented the agency’s recent study of successful Swedish small- and medium-sized enterprises (SMEs) in China. His discussion was supported by an insightful panel consisting of two of the participating companies, Ted Hansson from Fingerprints and Shpetim Arifi from Leax, who shared their experiences of doing business in China. A heated Q&A followed the relevant topic.

From left, moderator Mette Lager, Elin Larsson, Niina Äikas and Carina Enocksson discuss equal opportunities.

36 DRAGONNEWS • NO.02/2016

Gender gap in the office n At a chamber breakfast meeting on 28 April, three Swedish female bankers held a stimulating panel discussion questioning equal opportunities at the office. Carina Enocksson, general manager of the Norwegian bank DNB Shanghai, Elin Larsson, client analyst at Swedbank Shanghai, and Niina Äikas, general manager at SEB Shanghai Branch, shared their experiences and reflections in a debate moderated by Mette Lager, managing director at Grow HR. The discussion was supported by statistics from Battle of the numbers, a unique project for major corporations who want to get more women into operative management positions, and McKinsey & Company’s study Women Matter.

Get in touch with Iggesund Paperboard Asia, tel: (852) 2516 0250 fax: (852) 2516 0251 or visit iggesund.com

Battling cancer

The foundation will award an annual Sjöberg Prize to a prominent cancer researcher or cancer research group. The prize will be awarded in close cooperation with the Royal Swedish Academy of Sciences, and the value of the prize will be equivalent to US$1 million, of which the majority is designated for further When he was diagnosed with lung cancer, entrepreneur research. In addition to the Sjöberg Prize, the foundation hopes to Bengt Sjöberg decided to set up a foundation and allocate SEK60-70 million every year; discussions are underway with the donate a massive SEK2 billion to cancer research.

Karolinska Institutet in Stockholm TEXT: Jan Hökerberg, jan.hokerberg@bambooinasia.com on the issue of a new cancer centre.

“Sweden has a rather conservative approach to cancer treatment – probably because almost all healthcare everal years ago, Hong Kong-based Swedish entrepreneur in Sweden is public, so they only offer traditional treatment methods,” Bengt Sjöberg started to think about giving back some of the says Sjöberg. wealth that he has accumulated over the years as a successful businessman and investor. He thought about Africa or India The likelihood of surviving advanced-stage lung cancer for five years as options for his philanthropic activities. However, on 2 January this year, is only 2-3 per cent.

Sjöberg, 66 years old, was diagnosed with lung cancer, despite the fact that “It must be possible to change the odds,” says Sjöberg. “In he has been an active non-smoking advocate for all his life.

Germany and the US there are several private clinics that have been “When I discovered how inadequate conventional cancer care is in successful using unconventional treatment methods. I’m fortunate to Sweden, but also other countries, especially within advanced-stage lung be able to afford such treatments. That’s why I am very much engaged cancer, I decided to start a foundation that I hope will make a difference in this now. Different solutions exist, even if they can’t guarantee to cancer research and the treatment currently received by cancer success and often a combination of different treatments is needed.” patients,” says Sjöberg, who immediately decided to double the value of An example is Keytruda, a new type of cancer drug that unleashes the the donation he originally intended to make. body’s immune system to attack tumour cells. Last December, 91-yearHis donation of SEK2 billion (equivalent to RMB1.6 billion) to old former US president Jimmy Carter announced that he was cancerthe Sjöberg Foundation is, he has been told, the largest ever made in free after being treated with the drug.

Sweden by a single donator.

“My hope is that the foundation The foundation will will contribute to a new view on cancer be registered in Sjöberg’s treatments, in which there is equal hometown Lysekil on the openness to evaluating both conventional Swedish west coast. and unconventional treatment methods, as well as a combination of them both,” says Sjöberg. b

with a record donation

S

It must be possible to change the odds.”

A SwedCham founding member

“My hope is that the foundation will contribute to a new view on cancer treatments,” says Bengt Sjöberg.

Over almost 40 years, Bengt Sjöberg has built a fortune from his base in Hong Kong. He came to Hong Kong in 1977, working for the logistics company ASG. As managing director of ASG Far East, in 1986 he was one of the 44 founding members of the Swedish Chamber of Commerce in Hong Kong.

“The founding of a chamber suited us well, both from a business point of view and from a social perspective. It was natural for a company like ours to join the chamber since it is a forum for networking where you could meet potential clients and you could also socialise with friends,” says Sjöberg.

In 1999, Sjöberg, the second largest shareholder in the parent company ASG, was forced to sell his shares to Deutsche Post, whose non-postal activities now trade under the name of DHL. Sjöberg wanted to buy back ASG Far East and a management buy-out took place in which ASG Far East changed its name to APC Asia Pacific Cargo. Sjöberg himself was, however, quarantined for five years. He used those years to start an operating lease company, invest in property in Hong Kong, Thailand and Sweden, and start a hedge fund. Over the years, he has also built a large private portfolio of mixed shares on the stock markets.

Under Sjöberg’s leadership, APC has expanded and today has offices in Hong Kong, China, Taiwan, Vietnam, Thailand, Singapore, Sweden and Norway. In 2012, Sjöberg sold his shares in APC to the Japanese freight forwarder Nippon Express.

Photo: Hans Reuterskiöld/Royal Swedish Academy of Sciences

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Jacob Wallenberg receives honorary award n This year’s Swedish Chamber of Commerce in China Honorary Award was awarded the chairman of Investor, Jacob Wallenberg. The prize is awarded annually to a person who has shown an extraordinary ability to promote trade relations between Sweden and China.

“Jacob Wallenberg has uniquely contributed to strengthening relations between Sweden and China,” the award notice said. “He has long been an influencer due to his involvement with corporate boards and as the owner and representative of a Swedish companies with significant operations in China. His frequent trips to China and his willingness to share his knowledge and insights have been invaluable for many. Jacob Wallenberg´s network among Chinese industries and Chinese decision-makers is impressive, and his work is a model of how a long-term perspective can create fruitful relationships in China.”

Photo: Investor

Award winner Jacob Wallenberg

Previous years’ recipients 2015 Mats H Olsson 2014 Anders Wall 2013 Bengt Johansson and Anita Jonsson 2012 Leif Johansson 2011 Tomas Kung 2010 Alice Cheng 2009 Xu Kuangdi 2008 Peter Wallenberg

Thank you, Helena

Welcome, Martin

n Helena Storsten joined the Swedish chamber in Shanghai as the holder of the Anders Wall Scholarship in August 2015 and has been an invaluable asset to our office since then. While planning a range of events, Helena has managed large successful projects, such Helena Storsten as the Swedish Career Fair. Furthermore, she has shown her versatility by taking part in the development of the chamber’s new website. Helena has been a pleasure to work with and has built an impressive network. We are sure that this motivated, driven and passionate individual will go far whatever path she chooses.

n Martin Vercouter is our new Anders Wall Scholarship recipient. Martin, who was born in Belgium and lives in Sweden, is an enthusiastic advocate of entrepreneurship and its social potential. He holds a double Master’s in molecular biophysics, and entrepreneurship and innovation management, and has had a special interest in China since 2013, when he wrote his Master’s thesis on the financing of social entrepreneurship in the country. For two years, he has been running Martin Vercouter a small consultancy aimed at empowering young entrepreneurs from Stockholm’s suburbs.

During his studies, he held several board positions in various student organisations, as well as in the Swedish-Belgian Association, and serves on the board of Högskolerestauranger AB, Sweden’s largest university restaurant chain. We are looking forward to welcoming Martin to join the Swedish chamber’s team in September.

Three young students receive scholarships n At the Swedish chamber’s Annual General Meeting, the Swedish School in Beijing’s Scholarship for Studies in China was awarded for the first time. The scholarship is divided between three young students. The main scholar is Olivia Henriksson, and additional scholars are Miriam Hallongren and Henrik Andrén.

Olivia Henriksson

Miriam Hallongren

40 DRAGONNEWS • NO.02/2016

Henrik Andrén

Swedish Career Fair – a future of

sustainable recruitment Building on last year’s success, this year’s Swedish Career Fair attracted many job-seeking visitors, curious to learn more about and meet Swedish companies – clearly a fair to be remembered.

T

he Swedish Career Fair was greeted with excitement by both exhibitors and attendants as the month of April rolled in. 2016 marks the second year in a row that the Swedish Young Professionals has organised this fair for its members, with the support of the Swedish Chamber of Commerce in China. Unlike last year, this year’s fair unveiled the theme of Green Sweden to highlight the country’s prominent position in terms of sustainable technology and innovation. While the fair was held on 9 April in Shanghai at the Four Seasons Hotel Shanghai, Beijing boasted a similar event on 24 April at the Rosewood Hotel.

The fairs’ objective is to serve as a platform for talented young professionals to meet with company representatives and to exchange ideas and opportunities. Through the company booths, we aim to enable greater visibility for Swedish companies, and increase their interaction with potential Chinese and foreign employees currently residing in China.

The fairs’ theme, “Green Sweden”, has a strong focus on corporate social responsibility (CSR) – an area in where Sweden is consistently ranked as one of the most sustainable countries in the world. Swedish companies are global leaders in green innovation and in taking responsibility for their businesses, no matter where they go. Therefore, the fairs’ success can also be attributed to the various seminars with key-note speakers from several of our exhibitors that ran throughout the two event days. Though our fairs featured informative seminars, and a professional photo booth, the real emphasis was on creating a solid platform between exhibiting companies and curious visitors, laying the foundation for all participants to expand their networks.

This year, the Swedish Young Professionals increased the number of exhibitors by 76 per cent, with a total number of 37 unique exhibitors in both Shanghai and Beijing, in comparison to 21 last year. Furthermore, we increased the number of total visitors in both cities by 23 per cent, from 1,300 in 2015, to 1,600 in 2016.

This great task would not have been possible without the tremendous support of a few helping hands. Therefore, we would like to thank our financial sponsors: the Swedish Institute, the Jacob Wallenberg Foundation, the Foundation of Export Development and our volunteers for the day, the Sweden Alumni Network in China (SANC).

Until it is time again for our fairs next year, we welcome Swedish and other foreign companies in China to send us your vacancies so that we can publish them free on the Career Portal, which you can learn more about at www.swedishcareerfair.com.

We look forward to this event quickly becoming a Swedish Chamber of Commerce in China tradition, we hope to make it an annual occasion. The Swedish Young Professionals also want to see the fair grow larger every year in terms of absolute numbers, as well as satisfaction rate. We hope the participants enjoyed the ride as much as we did, and look forward to seeing you all, and many more, in the years to come. b DRAGONNEWS • NO.02/2016 41

In memory of Stefan The room erupted into laughter. It was just after 9am in the morning and most of the audience had come from afar, arriving the night before.

Jet-lagged and bleary-eyed after the previous night’s welcome dinner we made it into the conference room mostly thanks to the strong coffee served at breakfast.

A few hundred people from around the world were attending a conference at a swanky hotel in Hong Kong. They were key customers of one of Stefan’s largest clients. The company was celebrating its 10th anniversary, and a big couple of days lay ahead.

Who could be better to kick off such an important event than Stefan.

He was brilliant on stage. What the coffee hadn’t manage to energise, he did.

He was a born Master of Ceremonies, as many of the members of the Swedish Chamber of Commerce in Hong Kong can attest to. The time he presided over the annual Swedish Gentlemen’s Christmas Lunch is also legendary and will no doubt be talked about for generations.

Between the festivities he was also a highly respected chairman of the chamber.

In Memoriam: Stefan Rönnquist 1957-2016 Stefan Rönnquist was a director of the SwedCham Hong Kong’s board from 2006, chairing the PR & Membership Committee, and also chairman of the board from May 2010 until November 2011.

Stefan was very much engaged in the chamber’s activities and helped us with our branding profile and to design our website, among other contributions. He was very devoted and enthusiastic to the chamber and we all especially appreciated his positive spirit and ability to solve problems.

Stefan will always be remembered by SwedCham Hong Kong and we send our sincere condolences to his wife Annamae, his children Sebastian and Sofie and his family.

Directors of the Board Swedish Chamber of Commerce In Hong Kong

A visit to Tokyo in 2000 was the dish that whetted his appetite for Asia. Before long, he was back East. He arrived in Hong Kong in 2002.

He left behind a successful and award-winning career as a copywriter at top advertising agencies in Sweden.

This was a career he continued in Hong Kong as the managing director and creative director of a small Swedish-owned agency called Sandberg Trygg.

He eventually took over the operations and made the agency his own. It came to be known as The Tomorrow Group. At the agency’s peak, clients included world renowned names such as Finnair, Ocean Trawlers and Sony. The highly rated Nordic restaurant FINDS was just one of Stefan’s local Hong Kong clients. He was as versed in business-to-business as he was in luxury and entertainment.

When Tomorrow’s advertising business took a hit due to clients consolidating their accounts with much larger global agency networks, Stefan took on consultant roles as a marketing expert with several Hong Kong-based firms. But soon he was back in the advertising game with a new backer from the US – and with the name Slack & Company on the door.

However, after about two years, Stefan began to long for a simpler, more peaceful life and moved to a beautiful villa in Angeles, the Philippines, next to a golf course. He worked on his handicap, enjoyed life and the balmy weather between the odd assignments he brought in when he needed a dose of big city stress and a few extra dollars.

This all came to an end on 10 April.

Stefan Rönnquist died in a hospital in Angeles, the Philippines, after a period of deteriorating health.

He knew how to make us laugh.

He didn’t always know how to take care of himself and thus he left the party a little earlier than we expected.

He will light up the place he is now. I’m sure they could do with a good story and a good belly laugh.

Tore Claesson New York and Chengdu

42 DRAGONNEWS • NO.02/2016

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Chamber representative Måns Olsson, Senior Vice President, Head of Middle East & Asia Email: mans.olsson@diaverum.com

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Pricer AB 5/F, W Place, 52 Wyndham Street Central, Hong Kong Tel: +852 3103 1129 Web: www.pricer.com

HONG KONG OVERSEAS MEMBER >>>

Emerse 20/F, Infinitus Plaza 199 Des Voeux Road Central Sheung Wan, Hong Kong Tel: +852 9878 8196 Web: www.emerse.com About us Emerse is a Swedish full-service DSP (Demand Side Platform) using programmatic and real-time bidding (RTB). We handle all aspects of your online video advertising campaign, from setting up targeting parameters, launching your campaign to optimisation and reporting. We are transparent and ensure to secure placements on the most relevant, highquality websites, news sites and social networks/media. We reach 95 per cent of the internet population all around the world, including China. We make sure that the right people see your ad, at the right time, to the right price.

Emerse have worked with brands such as Coca-Cola, LG, Shell, Disney, Honda, Samsung, Panerai, Emirates and Mercedes. Emerse was also hired to deliver and optimise digital video advertising campaigns during the last presidential election in the US, as well as during the latest mayoral election in New York.

Chamber representative Sofia Rydberg, Regional Director

Norsk Hydro Beijing Representative Office 25/F, Tower A, Full Link Plaza 18 Chaoyangmenwai Ave Chaoyang District Beijing 100020, PR China Tel: +86 10 6588 1165 Web: www.hydro.com

CHINA COMPANY MEMBERS >>>

Abacare Room 2203, Building 4, Wanda Plaza No 93 Jianguo Road, Chaoyang District Beijing 100022, PR China Tel: +86 10 5820 7740 Web: www.abacare.com About us Abacare is an international Insurance broker specialised in healthcare. Based in Beijing, Shanghai and Shenzhen, and with over 20 years’ experience in Asia, we provide a wide range of solutions, such as group benefits or professional liability to local and international companies.

Our mission is to defend our clients’ best interests and provide a tailor-made service at no cost.

About us Norsk Hydro is a global aluminium company with production, sales and trading activities throughout the value chain, from bauxite, alumina and energy generation to the production of primary aluminium and rolled products as well as recycling.

The company is based in Norway.

Chamber representative Linlin Hui, Chief Representative Email: linlin.hui@hydro.com Mobile: +86 139 0100 5851

Chamber representative Imad Baatiche, Sales Director Email: imad.baatiche@abacare.com Mobile: +86 132 6107 0762

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Halmstad University Holding Ltd Halmstad University Box 823 SE-301 18 Halmstad, Sweden Tel: +46 35 16 71 00 Web: www.hh.se About us Halmstad University is collaborating with Chinese universities and both Swedish and Chinese enterprises in education, student exchange, research and development activities and business development.

Chamber representative Mike Danilovic, Professor Email: mike.danilovic@hh.se

Mobile: +46 70 815 75 88

Senab (Shanghai) Trading Co, Ltd Suite 118, Dobe Bund 422 Hankou Road, Huangpu District Shanghai 200001 PR China Tel: +86 21 6211 5359 Web: www.senab.com

About us Senab is one of Scandinavia’s leading companies in furnishing public spaces. Senab China consists of two business areas.

Senab Concept realises interior design store concepts that build brands and drive sales. We offer a product mix of standard and custom-made furniture and signage to fulfil the customers’ needs. Senab Interior helps companies create an attractive and competitive working environment. With 40 years of experience and expertise we create stimulating offices that encourage creative as well as efficient work.

Senab (Shanghai) Trading Co, Ltd is a full-service subsidiary of the Swedish company Edsbyn Senab AB. Chamber representatives Eric Lu, General Manager Email: eric.lu@senab.com Mobile: +86 186 0179 8084 Trine Roland Westergaard, Sales Manager E-mail: trw@senab.com Mobile: +86 158 2181 3652

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DRAGONNEWS • NO.02/2016 45

Silvent (Shanghai) Trading Co, Ltd 22/F, No 1375 Middle Huaihai Road Shanghai 200031 PR China Tel: +86 21 3356 5575 Web: www.silvent.com About us Silvent provides globally unique and world-leading competence and technology on how to blow and use compressed air. We improve working environments and optimise energy usage. This vision is our passion, which we want to share with our customers. Silvent (Shanghai) is the sales office, which together with the customer develops and provides solutions directly to end-users all over China.

Chamber representative Oscar Alfelt, Sales Manager China Email: o.alfelt@silvent.cn Mobile: +86 173 2102 5646

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Viking Lined Hästholmsvägen 28 SE-131 04 Nacka, Sweden Tel: +46 8 452 41 00 Web: www.sales.vikingline.com 1

About us Viking Line is a public limited company and a market-leading brand in passenger traffic on the northern Baltic Sea. We offer passenger services, recreation and cargo carrier services on the vessels Gabriella, Mariella, Amorella, Rosella, Viking Cinderella, Viking XPRS and on the new flagship Viking Grace. Every day since the late 1950s, our red vessels cast off and head to exciting destinations around the Baltic Sea, such as Helsinki, Tallinn, Turku, Stockholm and Mariehamn.

Chamber representatives Janusz Grabowski, Marketing Director Email: janusz.grabowski@vikingline.com Mobile: +46 70 452 41 22 Lu Zheng, Sales Manager Email: info@vikingline.cn Mobile: +86 137 0108 3429

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Swedish Chamber of Commerce in Hong Kong

Abraham Lincoln reads for his son.

Annual General Meeting in Hong Kong 2016 Photo: Jayne Russell, jaynerussell@me.com

On Friday 29 April, SwedCham held its Annual General Meeting (AGM) at Club Lusitano in Central. The AGM went smoothly, with constructive reports from all the chairmen of the committees and a very positive financial statement from our treasurer. The members re-elected Per Ågren of APC and Jimmy Bjennmyr of Handelsbanken as directors, while Anders Bergkvist of Stora Enso was elected as a new director. SwedCham would also like to thank Emma Gardner of KPMG, who is leaving Hong Kong, for her great job. We wish her all the best in the future.

After the meeting, an amazing three-course lunch was served with champagne to celebrate SwedCham’s 30th anniversary.

Sverige Shoppen (the Sweden shop) received SwedCham’s Annual Award. Read more about that on page 52.

SwedCham’s new board, from left: Per Ågren, Pontus Karlsson, Patrik Lindvall, Katarina Ivarsson, Ulf Ohrling, Paul Bergström and Anders Bergkvist. Absent: Karine Hirn and Jimmy Bjennmyr.

Anders Bergkvist (Stora Enso).

The storyteller

Daniel Elvin (Axis), Ove Jöraas (PCB Vision) and Lina Falk (Business Sweden).

Every company or organisation has interesting stories to tell.

Let Bamboo help you tell your story.

We have the skills to make your story compelling. We package it with high-quality graphic design and distribute it in any format you like – digital, mobile, video or print.

Ingrid Reinli (Boris Design) and Sofia Rydberg (Emerse).

Emma Gardner (KPMG).

Providing smart, entertaining and informative content is what we excel at.

Lars-Ove Filipson (SAS), Paul Bergström (Ericsson) and Anders P Hellberg (Boris Design).

Swedish Chamber of Commerce in Hong Kong DIRECTORS OF THE BOARD Ulf Ohrling, Chairman [Mannheimer Swartling] Anders Bergkvist [Stora Enso] Paul Bergström [Ericsson] Jimmy Bjennmyr [Handelsbanken] Karine Hirn [East Capital] Katarina Ivarsson [Boris Design Studio] Pontus Karlsson [Happy Rabbit] Patrik Lindvall [Dairy Farm-IKEA] Per Ågren [APC]

We make your company’s best stories come alive www.bambooinasia.com Bamboo Business Communications Ltd (Hong Kong) +852 2838 4553 Bamboo Business Consulting (Shanghai) Co, Ltd +86 21 6472 9173

48 DRAGONNEWS • NO.02/2016

Swedish Chamber of Commerce in China

PARTNERS ALL THE WAY

Annual General Meeting in Beijing 2016 With blue skies and a soft breeze, 6 May turned out to be a fantastic day for the Swedish chamber’s Annual General Meeting (AGM) and the following Spring Party.

At this year’s AGM, major changes were made to the board. Lars-Åke Severin was elected chairman, while Joakim Hedhill and Lucas Jonsson were elected vice chairmen.

Three new directors where also elected: Niina Äikas of SEB, Per Lindén of Scandic Foods Asia and Robert Lindell of Elektroskandia. At the same time, Katarina Nilsson, Ulf Söderström, Martin Pei and Peter Idsäter all left their seats.

We thank you all for your strong support and contributions to the Swedish Chamber of Commerce in China over the years.

The annual Honorary Award for significantly improving Sino-Swedish relations was awarded to Swedish banker and industrialist Jacob Wallenberg. Unfortunately, he was unable to be present at the AGM and sent his thanks through a short video clip. Helena Storsten, Anders Wall Scholarship recipient 2015-2016, was thanked for her strong contribution to the chamber, and the new scholarship recipient was presented. Martin Vercouter will start his nine-month internship at the Shanghai chamber’s office in September.

After the formal meeting, the traditional Spring Party took place in the beautiful garden at Radisson Blu Hotel.

The evening offered BBQ, live music with Violette and the Hunters – one of Beijing’s most popular cover bands, dancing and other fun activities. In the evening the Swedish School´s Scholarship for studies in China was awarded for the first time to three young talents.

We would like to extend a big thank you to our generous Dragon Partners – Atlas Copco, SAS, SCA, Handelsbanken, Mannheimer Swartling and Volvo Cars – and to our extraordinary sponsors for this special evening – PSU, Blue Air, Nespresso and Wine Republic. With your support, the AGM and the Spring Party became yet another success.

At Norman Global Logistics, the customer is a partner.

We believe in being close to our partners, being hands-on, and solving their every need – all the way to the door or the store.

Finding the best solutions for our clients is in our DNA. The new main board, from left, Niina Äikas, Mikael Westerback, Daniel Karlsson, Birgitta Ed, Hans O Karlsson, Lucas Jonsson, Lars-Åke Severin, Peter Rosta, Per Lindén, Joakim Hedhill and Karin Roos. Absent: Robert Lindell and Peter Sandberg.

The Spring Party was held in Radisson Blu Hotel’s beautiful garden.

Doing business in Sweden?

Tobias Demker was MC of the evening.

Swedish Chamber of Commerce in China

Violette and the Hunters are entertaining the guests.

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Norman Global Logistics Hong Kong Limited Room 811, 8/F, Tower 1, Cheung Sha Wan Plaza, 833 Cheung Sha Wan Road, Kowloon, Hong Kong Tel: +852 3582 3440 Email: hongkong@normanglobal.com www.normanglobal.com

DIRECTORS OF THE BOARD Lars-Åke Severin, Chairman [PSU] Joakim Hedhill, Vice Chairman and Chairman of the Beijing Chapter [Handelsbanken] Lucas Jonsson, Vice Chairman and Chairman of the Shanghai Chapter [Mannheimer Swartling] Hans O Karlsson, Treasurer [Ericsson] Birgitta Ed [Six Year Plan] Daniel Karlsson [Asia Perspective] Robert Lindell, [Elektroskandia] Per Lindén, [Scandic Foods Asia el Scandic Sourcing el Scandic Far East] Peter Rosta [Business Research] Peter Sandberg [Microdata] Mikael Westerback [Handelsbanken] Niina Äikas [SEB] Karin Roos, General Manager

banking and finance company law and corporate finance distribution and agency law property lease law china desk environmental law corporate reconstructuring eu and competition law maritime and transportation law real estate and construction law employment law mergers and acquisitions insurance intellectual property marketing and media law international law energy and investment law it and telecom litigation and arbitration private equity

Lawyers you want on your side

Af t e r h o u rs Photo: Jayne Russell

n Awards SverigeShoppen wins SwedCham annual award SverigeShoppen, the Swedish shop in Hong Kong, has been awarded the 2016 SwedCham Annual Award with the following motivation: “SverigeShoppen is the Hong Kong Swedes’ own fairy godmother. They work in their own little way to both support Sweden and Swedes by bringing all the things we like the most to Hong Kong. But they also devote much time and effort to show everybody else out here what Sweden, our culture and traditions, are about by, for instance, participating in various fairs and other events.

“Given their size, SverigeShoppen, suffices, with almost magical powers to put Sweden on the map in an efficient and effective way. Even if their efforts seem small to the naked eye, they are important – just as small streams make a great river. SverigeShoppen is one of these small streams. Their protégé is Sweden, a place dear to many of us, and SverigeShoppen ensures that others too understand what Sweden has to bring by scattering the fairy dust here and there.

“To further foster initiatives like these, to make people understand that all ways to support Sweden are good ways, even the small ones, SverigeShoppen deserves to be the winner of this year’s Annual Award.”

From left: Carol Ågren Lee (middle), who runs SverigeShoppen, is congratulated

by SwedCham’s Ulf Ohrling and Katarina Ivarsson.

Floorball cup On 14 May, the unofficial China Floorball Championship took place in Hong Kong at the West Island School in Pok Fu Lam. Eight teams – dominated by Finns and Swedes – from Hong Kong, Guangzhou, Shanghai and Suzhou played against each other. After a long day, the Shanghai Sharks won the final against Suzhou SSV with 4-3.

Photo: Tommy Hallberg

n Sports The Hong Kong Fashion Boys, in black shirts, meet Suzhou SSV.

n Coffee shops Enjoy a coffee break Beijing’s Fikafika is a Swedishinspired combined coffee shop and marketing platform for Nordic designer brands in the Wangjing SOHO curvilinear asymmetric skyscraper complex. Here you can enjoy a good cup of coffee shop. ka afi Fik of r ne is the ow Robi Li Xuesong coffee in modern Scandinavian surroundings. By ordering two days in advance, it is possible to get a genuine Swedish kanelbulle (cinnamon bun) or a semla (Lent bun).

Fikafika also has a delivery service, which provides an opportunity to organise customer meetings with a Swedish touch. In the shop, you can find brands such as Daniel Wellington, Fjällräven Kånken, Iittala and Acne, as well as ICA’s own brand of muesli and much more. Enjoy your fika (coffee break).

Address: T2-B1-1022 Wangjing SOHO, 1 Futongdong Dajie, Chaoyang District, Beijing Phone: +86 10 5280 0156

n Bars Arrow Factory expands Arrow Factory Brewing in Beijing has recently opened another microbrewery, in the renovated and cosy facilities at Liangmahe South Road. In 2013, co-owners Will Yorke of the UK and the Swede Thomas Gaestadius, set up their first Arrow Factory Brewing taproom next to their popular restaurant Stuff’d at Jianchang Hutong where they also run the nearby Vinecard Café.

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n Wellness Floatasian Float Spa opens in Shanghai Floatasian is a Swedish float spa that promotes a unique gravity-free experience. In December last year, Swedish floatation enthusiast, Theodor Martin, opened the spa – one of the first of its kind in China – in Shanghai.

Floatation involves immersing yourself in a specially designed tank full of highly saline water that carries the weight of your body effortlessly. Inside the floatation tank, the air and the water are kept at body temperature, creating the feeling of floating in midair, making it the perfect environment for relaxation and recovery.

Floatasian has invested in state-of-the-art equipment by importing Restingwell Spirit floatation tanks from Sweden. These are bigger than tanks used at most other spas.

Address: Dagu Creative Centre, Unit A, Building 5, 2/F, 288 Dagu Road (close to Chengdu North Road).

Phone: English: 021-6385 5189 (in English), 021-6385 5188 (in Chinese).

Email: info@floatasian.com Web: www.floatasian.com

Jenni Tinworth jenni@executivehomeshk.com

We call our long-term responsibility the Greencarrier Spirit International transportation the Greencarrier way www.greencarrier.com

Arrow Factory Brewing in Liangmahe is a bar that offers its own home-brewed craft beer, which is produced on the first floor of the building. They also offer lighter meals such as a really tasty falafel. In the summertime, they will open up a rooftop terrace where guests can enjoy a cold one together with colleagues after work.

Address: Liangmahe Nan Lu, close to Xindong Lu Phone: +86 10 8532 5335 Web: www.arrowfactorybrewing.com

Ad Dragon News June 2014.indd 1

2014-05-28 09:39:45

T h e c h a m b e r a nd I

How sustainable are you?

Living in this part of the world is demanding from a sustainability point of view. Polluted air, food scandals, undrinkable water – and the list goes on – are things we are not used to but have learnt to live with since there is not much we can do. Or is there? Is there at least something we can do to contribute to a more sustainable environment and a better world for our children? We asked some of our members what they think.

These were the questions raised: How sustainable are you?

How do you contribute, at home and at work, for a better future world?

And below are the answers.

Alexander Mastrovito Scania, Hong Kong “As an individual I try to be sustainable in commuting (public transport, biking and walking), however my frequent air travel puts me in a less than desirable bracket in terms of carbon dioxide (CO2) emissions.

But, I believe that through my work and advocacy of sustainable heavy transport, and the related emissions reductions we achieve – both in Hong Kong and elsewhere in Asia – makes up for that. Through Scania’s leadership in sustainable transport, we have the chance to make an actual contribution to global CO2 and road-side emission reductions – by transporting smarter, increasing efficiency and eliminating our dependence on fossil fuels.”

Liselotte Duthu Atlas Copco, Shanghai “I work for Atlas Copco, which is listed as one of the world’s most sustainable companies. We contribute to a better future by setting and living up to high standards of product quality, safety, ergonomics, environment, and business ethics. When it comes to my personal life in China, I try to be a good example, promote a healthy life style, care for nature, and respect others.”

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Thomas Adams Kreab, Beijing “As a global strategic communications consulting firm, Kreab works with a range of clients across our 25 offices worldwide. One of our most rewarding experiences is working with clients to help maximize the impact of their own sustainability programmes through focused communications to the audiences that matter most, such as government, the media, customers, and, perhaps most importantly, communities. We have witnessed first hand the positive impact these initiatives have had on society, and in some instances this work has influenced how Kreab operates as a business and how we as individuals live our lives.”

Photo: Jayne Russell

Hanna Hallin H&M, Hong Kong “I truly believe every person and every action matters.

There are so many simple things that don’t make any difference at all for me but have a positive impact on the planet; like turning off lights and air conditioning, bringing a reusable bag and coffee mug, recycling my waste at home and my textiles in any H&M store. I was quite young when I became aware of how my lifestyle affects people and planet far from home, and I have been a vintage lover, vegetarian and enthusiastic biker since. Some might think this is too much, but I know we all can find small changes in our lifestyle without compromising on convenience or quality of life. In fact, it will increase your chances of a better life the day after tomorrow.”

Jonas Sedin Swedish Center, Shanghai “I think the key to being more sustainable is to realise that you are not very sustainable. In my work, I try to promote more sustainable thinking and less waste, but as a private person I try to simply consume less. We simply do not need as much as we think we do.”

Anders Bergkvist Stora Enso, Hong Kong “One thing I try to do is to buy beverages in fibre-based packaging rather than plastic or aluminium. Most materials can be recycled several times, but only wood fibre can be renewed. In other words, we cannot make more oil (unless we are very patient ...), but we can plant new trees.”

Jacqueline Chen Blue Air, Beijing “I decrease the number of purchased new shoes, clothes and dresses each year. I’m taking the metro or riding a bicycle as often as I possibly can. I use more e-versions for reading and writing. I turn off the lights and electricity if I’m last to leave the office, and I encourage others do the same. I also turn the air conditioner to medium – not too cold in the summer or too hot in the winter.”

Felicia Lindoff Young Professionals, Beijing “I do my best not to over-order at restaurants and also always for dabao [takeaway] leftovers. I spend on quality, not quantity and reduce all unnecessary purchases. I like to think bigger than just for myself, and try to always have a positive attitude.”

Jimmy Bjennmyr Head of Corporate Banking Hong Kong Branch

Mikael Westerback Head of Greater China and General Manager Shanghai branch

Florence Chan Senior Account Manager Hong Kong Branch

Johan AndrĂŠn Deputy Head of Greater China and General Manager Hong Kong branch

Shanghai – Mikael Westerback +86 21 6329 8877 ext 888, Pontus Gertell +86 21 6329 8877 ext 848