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IN THIS ISSUE: 12 PAGES OF UPDATED BENEFIT PARTNER INFORMATION TO PULL OUT

June - July 3 | 2009

Engineering for Speed China is Building the World’s Largest High-Speed Railway Network Harbin and Ice | Yingtan and Water | GCC’s Shenzhen Office Opening | City Tour Dongcheng


German Bell Thomas Berchtold Marco Bettega Fabian Betto Monika Bitsche 2000: 1st Place “Manager Magazin”, Design Annual Report * 1st Place “Manager Magazin”, Ranking s-dax Annual Report * 2001:

Roman Bösch Jennifer Dai Roland Darjes Nick Diehl Cornelia Engler Christina 1st Place “Manager Magazin”, Total Ranking Annual Report * 1st Place “Manager Magazin”, Ranking m-dax Annual Report * 2nd Place

Erne Bianca Fels Anuschka Fink Hubert Fink Klaus Forschinger Peter Förg “Manager Magazin”, Total Ranking Annual Report * 2002: 1st Place alc (Austrian Leading Companies) Most Dynamic Businesses

Michael Fröhle Fabian Gantert Samantha Groeblacher Yvonne Hanschitz-Orasch (Category: “Goldener Mittelbau”) * 2nd Place “Manager Magazin”, Ranking s-dax Annual Report * 3rd Place “Manager Magazin”,

Matthias Helbach Cornelia Held Bettina Jäger Robert Kastner Cornelia Total Ranking Annual Report * Bronze “Berliner Type” Annual Report * 3rd Place alc (Austrian Leading Companies) Most Dynamic

KauFmann Martin Keim Lara Kocab Christian Kräutler Kerstin Künzle Businesses (Category: “Goldener Mittelbau”) * 2003: 5th Place “Ranking Week” Full Service Agency * 2nd Place “Manager Magazin”,

Tino Le Duigou Christian Lercher Eric Lin Yang Liu Daniela Loacker Peter Ranking s-dax Annual Report * 1st Place alc (Austrian Leading Companies) Most Dynamic Businesses (Category: “Goldener Mittelbau”)

Loacker Stephanie Locher Oliver Lorenz Alan Masetti Scott Mastin Irene * 2004: 5th Place “Ranking Week” Full Service Agentur * 2nd Place “Manager Magazin”, Ranking s-dax Annual Report * Best Design

Mathis Monika Mathis Sabine Mattle Nina Mayer Richard Morscher Daniela “Manager Magazin” Annual Report * Award “Printers Club Award”, Annual Report * 2005: 6th Place “Ranking Week” Full Service

Neumeister Amy Ou Beatrice Purin Christian Pockenauer Svetlana Polster Agency * 1st Place “Manager Magazin”, Ranking s-dax Annual Report * 5th Place “Manager Magazin”, Total Ranking Annual Report

Nicole Prate Jürgen Raich Heidi Rehner Fabienne Rieger Petra Rumpl * Award “Printers Club Award”, Annual Report * 2006: 4th Place “Ranking Week” Full Service Agency * 1st Place “Manager Magazin”,

Christian Saubert

Iris Scheibler

Natalie Scherer

Total Ranking Annual Report * 1st Place Total Ranking s-dax, Annual Report

Karin Schertler

* strong team. excellent results.

Michael Schlebes Claudia Schmid Daniela Schnetzer Bernd Schuler Sandra * Silver Award “Berliner Type” Annual Report * Award “Deutsche Druck Industrie” Annual Report * Award “Deutscher Printers

Schuster Andreas Siegele Sonja Skerbinjek Brian Smith Carola Sturn Nian Award“ Annual Report

*

Innovation Prize

“Deutsche Druck Industrie” Annual Report

*

2007: “International Printer of

Sun Volker Troy Denis Vellacher Christa Wehinger Bernhard Widmann the Year “Sappi Award” Annual Report * 2008: Silver International Calendar Show 2008 * nominated for Design Award 2009 ...

Christoph Winder Walter Witschuinig Annie Xia Grace Zhang Tracy Zhang

klaus (a) · ruggell (fl) · chicago (usa) · shanghai (china) Room 1101 · 555 Nanjing West Road · 200041 Shanghai · China Contact person: Oliver Lorenz · B2B@montfortshanghai.com · Tel. +86 (0) 21 / 52 13 66 00 - 800


GCC Board

Beijing

The German Chamber of Commerce in China

Shanghai

South China

* All-China Board member Siemens Ltd. Northeast Asia CEO Siemens Ltd. China CEO and President Dr. Richard Hausmann * Chairman

Lufthansa German Airlines Managing Director Greater China Mr. Arved von zur Mühlen * Chairman

Trolli Confectionery Co. Ltd. Director Development Asia Pacific Mr. Michael Stein * Chairman

KPMG Huazhen Certified Public Accountants Partner Audit Mr. Andreas Feege Treasurer

Bosch (China) Investment Ltd. Executive Vice President Mr. Elmar E. Weitzel Vice Chairman

German Chamber South China Executive Director Ms. Alexandra Voss * Delegate & Chief Representative Delegation of German Industry & Commerce Guangzhou

German Chamber Beijing Executive Director Ms. Jutta Ludwig * Delegate & Chief Representative Delegation of German Industry & Commerce Beijing

Vossloh Fastening Systems (China) Co. Ltd. CEO Mr. Thomas Dorn Treasurer

Lufthansa German Airlines General Manager, Southern China Mr. Nico Beilharz

Deutsche Bank (China) Co. Ltd. Beijing Branch Director, Head of Corporate Banking Coverage, China Mr. Eddy Henning

German Chamber Shanghai Executive Director Mr. Manfred Rothgänger * Delegate & Chief Representative Delegation of German Industry & Commerce Shanghai

TCA Ltd. The Cable Assembler Dongguan CEO / President Mr. Frank Jaeger

Gruner+Jahr (Beijing) Advertising Co. Ltd. General Manager & President Mr. Wolfgang Kohl

Squire, Sanders & Dempsey L.L.P. Partner, Head of German Desk Mr. Rainer Burkardt

VA TECH ELIN Transformer Guangzhou Co. Ltd. (SIEMENSEnergy Sector) General Manager Mr. Dirk Soete

Volkswagen (China) Investment Co. Ltd. Executive Vice President, Finance Department Dr. Jörg Mull

Analogic Corporation CEO Dr. Rolf Hupke

C. Melchers GmbH & Co. KG Guangzhou & Chongqing Representative Offices Inspirion GmbH Guangzhou Representative Office Chief Representative Ms. Renate Tietjen

TUI China Travel Co. Ltd. CEO Mr. Marcel Schneider

POLYMAX (Shanghai) Trading Co. Ltd. Chairman of the Board Mr. Ulrich Mäder

Bayer (China) Ltd. Vice President, Corporate Social Responsibility Greater China Mr. William Valentino

DEKRA (Shanghai) Co., Ltd. Managing Director Mr. Günther Strobel

Daimler AG Executive Vice President Daimler Northeast Asia Ltd. Chairman & CEO Mr. Ulrich Walker

Management Engineers China Ltd. Managing Director Ms. Brigitte Wolff

June - July 2009 | 2


The German Chamber of Commerce in China

www.china.ahk.de

3 | June - July 2009


Preface

The GC Ticker is the internal bi-monthly newsletter of the German Chamber of Commerce in China.

Publisher German Chamber of Commerce in China Managing Editor Mr. Bernhard Porpaczy (Shanghai) Editorial Team Mr. Martin Regnet (Beijing) Mr. Kilian Becker (Guangzhou) Main cover photo : © Imaginechina Cover header photo: © Heinrichson Photos GC Ticker is free of charge. For subscription or extra copies please email your nearest Chamber office Other issues of the magazine can be found on our website: www.china.ahk.de/publications For editorial or sponsorship inquiries please contact: German Chamber of Commerce in China Beijing Office German Chamber of Commerce in China • Beijing 0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd. Chaoyang, Beijing 100004 Tel: +86-10-6590 0926 ext. 308 Fax: +86-10-6590 6313 Email: publications@bj.china.ahk.de Guangzhou Office German Chamber of Commerce in China • South China 2915 Metro Plaza, Tianhe (N) Rd. Guangzhou 510620 Tel: +86-20-8755 2353 DL: +86-20-8755 8203 Fax: +86-20-8755 1889 Email: becker.kilian@gz.china.ahk.de Shanghai Office German Chamber of Commerce in China • Shanghai 29F, POS Plaza, 1600 Century Ave. Pudong, Shanghai 200122 Tel: +86-21-5081 2266 ext. 1872 Fax: +86-21-5081 2009 Email: porpaczy.bernhard@sh.china.ahk.de © 2009. German Chamber of Commerce in China. No part of this publication may be reproduced without the publisher’s prior permission. While every effort has been made to ensure accuracy, the publisher is not responsible for any errors. Views expressed are not necessarily those of GIC/GCC.

June - July 2009 | 4

The German Chamber of Commerce in China

China - Recovery in Progress? China is betting on infrastructure spending to pull itself through the current economic downturn: 45% of the USD 586bn stimulus package is devoted to the development of highways, railways, airports and power grids. Beijing is revisiting one of its older tactics for boosting domestic demand: building up the nation’s transport network. Following the previous focus on highways, this round is especially looking at the country’s railway network. See our cover story on the impressive number of high-speed train lines currently being built all over China. The crucial difference to previous infrastructure spending sprees is that the government has enough money in its coffers to fund these mega-projects. It is no longer dependant on issuing long-term infrastructure bonds to finance the construction of new highways. This has very interesting implications for the sector, especially for the large state-owned infrastructure and civil engineering companies. While this group can especially look forward to winning major contracts over the coming two years, there will also be excellent chances for international players. At the German Chamber, we noticed the crisis especially in our members’ growing interest in cost-reduction possibilities, labour law issues and short-time work arrangements. April brought first signs of a positive change, as China seemed to manage the crisis well and confidence levels of German companies were back on the rise.

and that domestic consumption will pick up. This was strongly felt throughout the Greater China Day in Hannover back in March. The annual forum drew a record number of attendees and top-flight speakers including former Chancellor Gerhard Schröder. Whether China will reach its ambitious 8% growth target in 2009 was the question of the day. Dr. Jörg Mull of Volkswagen China, one of the many senior corporate speakers at the event, concluded that the Greater China Day set a positive signal in times of considerable economic uncertainties. “German companies in China made it clear that they trust in a positive development of the Chinese markets.” Meanwhile, membership numbers at the German Chamber are still rising, indicating that China plays a vital role in the strategic development of most German corporates. To provide a more detailed census of the current economic situation and business outlook, the German Chamber will conduct a Confidence Report of German Industry in China. Your support of this study is very much appreciated. Let’s hope that the current, global outbreak of swine flu will be handled in an adequate manner, so that neither the flu nor the required counter measures will be threatening the economic recovery process in China. Enjoy reading this issue of the GC Ticker. Wishing you a healthy summer!

More companies in Germany are now looking towards China again, spurred by the common belief that the country will emerge from the crisis stronger than before

Arved von zur Mühlen Chairman | GCC • Shanghai


The German Chamber of Commerce in China

Chamber Notices

BEIJING

ALL CHINA Membership Directory 2009/10 Update The “Who is Who” of the Chamber will be updated in May and June to reflect all our new and existing member companies for the upcoming 2009/10 edition of the GCC Membership Directory. All members will be contacted by their local Chamber team to update their information and reserve their ad spaces. If you haven’t been contacted yet, please get in touch with your respective project manager: Beijing: Ms. Kathrin Tobusch | tobusch.kathrin@bj.china.ahk.de Shanghai: Ms. Yandi Li | li.yandi@sh.china.ahk.de South China: Ms. Esther Hu | hu.esther@gz.china.ahk.de

SOUTH CHINA Shenzhen Office Opening Leads to New Name: German Chamber of Commerce • South China Paying tribute to its new presence in Shenzhen and the growing number of activities outside Guangzhou, the board of the German Chamber of Commerce in China decided to rename its office in the Pearl River Delta into German Chamber of Commerce • South China. This underlines the aim of the local chamber team to not only service German businesses in the capital of Guangdong, but also in other equally important business hubs in South China such as Shenzhen and Zhuhai. On occasion of the Shenzhen office opening ceremony, Ms. Alexandra Voss, Executive Director of the GCC • South China, proudly announced the name change with immediate effect. The event at the Kempinski Hotel attracted more than 100 guests, who warmly welcomed the chamber team in its new location. Speeches of Consul General Mr. Eberhard Schuppius, Ms. Voss and Ms. Sabine Florian (GCC • Hong Kong) mirrored the importance of the Chamber’s presence in Shenzhen and encouraged member companies to further strengthen ties with the Chamber. With Regional Manager Mr. Max Zenglein based at the new office in the Chinese Overseas Scholars Venture Building, local representatives of German companies are now able to address a contact person on the ground. Furthermore the German Consulate will have a presence at the office once a month. The opening ceremony showed once more that the Shenzhen community knows how to party. To get a better impression, please visit the Around Town section later in this GC Ticker.

GC Ticker Invited to Advise Asian Games Magazine The editorial team of GC Ticker recently received an unexpected honour by the Guangzhou Asian Games Organizational Committee (GAGOC). Mr. Kilian Becker, Executive Chamber Manager and local Editor of GC Ticker in Guangzhou, had been invited to give comments and advice on the content and layout of the official bilingual Asian Games Magazine. Together with representatives of local authorities, universities and foreign consulates, our editor provided his input from a foreigner’s perspective and spent an insightful afternoon with GAGOC’s representatives and editorial team.

www.china.ahk.de

New Communications Department in GCC • Bejing Mr. Martin Regnet has joined the German Chamber in Beijing as Head of its Communications Department. Before moving to Beijing, Mr. Regnet was in charge of the Asia-wide Communications for a large German automotive systems supplier. His previous Chinabased business experience includes the position of Chief Editor for “The Bridge,” a magazine which he published for a foreign national Chamber of Commerce in China. Mr. Regnet will be in charge of coordinating communication activities and cooperation with media in Germany and China. Contact: Tel: 010 6590-0926 ext. 318 Email: regnet.martin@bj.china.ahk.de

Get Ready for the German Ball Beijing 2009! After the Ball is before the ball: Preparations for the 9th German Ball on 14th November 2009 (TBC) at the Kempinski Hotel Beijing have begun. Get involved now and support the event as a sponsor and partner. For more information please contact: Ms. Katja Sassi-Bucsit at sassi-bucsit.katja@bj.china.ahk.de

SHANGHAI New PR Manager for GCC • Shanghai Ines Ahrens has recently been appointed to lead the PR efforts of the German Chamber of Commerce • Shanghai. She brings with her a profound background in corporate communications and journalism, having worked most recently as a senior consultant for Edelman, one of the largest international PR agencies. Ms. Ahrens will be responsible for creating more awareness for the German Chamber in the Greater Shanghai area as well as in Germany and within the AHK network. For any media inquiries please contact Ms. Ahrens at: Tel: 021 5081-2266 ext. 1637 Email: ahrens.ines@sh.china.ahk.de

German Ball 2009 - Save the Date! The 12th German Ball will be held on 28th November 2009 at the Grand Hyatt Shanghai. Stay tuned to find out about this year’s theme. November may still seem a long way off, but sponsorship packages are already in high demand. For further information please get in touch directly with Mr. Sebastian Zettelmeier at: Tel: 021 5081-2266 ext. 1605 Email: zettelmeier.sebastian@sh.china.ahk.de

5 | June - July 2009


Chamber Teams

Your company on the desks of our members China-wide

The German Chamber of Commerce in China

Beijing Ms. Katja Sassi-Bucsit Executive Chamber Manager Tel: 010 6590-6930 Fax: 010 6590-6313 Email: sassi-bucsit.katja@bj.china.ahk.de

Ms. Miao Wang Chamber Affairs Manager Tel: 010 6590-0926 ext. 207 Fax: 010 6590-6313 Email: wang.miao@bj.china.ahk.de

Ms. Claudia Barkowsky Regional Manager North China and Executive Chamber Manager GCC • Tianjin Tel: 010 6590-0926 ext. 329 Fax: 010 6590-6313 Email: barkowsky.claudia@bj.china.ahk.de

Mr. Lipeng Wang Vice Executive Chamber Manager GCC • Tianjin Tel: 010 22 2301 1709 Email: wang.lipeng@bj.china.ahk.de

Shanghai

Advertise in the most frequently used directory of German companies in China.

Ms. Anna-Lisa Hartmann Executive Chamber Manager Tel: 021 5081-2266 ext. 1630 Fax: 021 5081-2009 ext. 5630 Email: hartmann.anna-lisa@sh.china.ahk.de

Mr. Bernhard Porpaczy Product Manager GC Ticker Tel: 021 5081-2266 ext. 1872 Fax: 021 5081-2009 ext. 5872 Email: porpaczy.bernhard@sh.china.ahk.de

Ms. Heidrun Buss Project & Event Manager Shanghai Tel: 021 5081-2266 ext. 1656 Fax: 021 5081-2009 ext. 5656 Email: buss.heidrun@sh.china.ahk.de

Mr. Ferdinand Pillenstein Regional Manager Zhejiang & Jiangsu Provinces Tel: 021 5081-2266 ext. 1830 Fax: 021 5081-2009 ext. 5830 Email: pillenstein.ferdinand@sh.china.ahk.de

Ms. Li Yandi Project Manager Tel: 021 5081-2266 ext. 1609 Fax: 021 5081-2009 ext. 5609 Email: li.yandi@sh.china.ahk.de

Ms. Liu Li Chamber Team Assistant Tel: 021 5081-2266 ext. 1650 Fax: 021 5081-2009 ext. 5650 Email: liu.li@sh.china.ahk.de

Limited placements still available, contact your local Chamber for details.

Beijing Ms. Kathrin Tobusch 010 6590-0926 tobusch.kathrin@bj.china.ahk.de Guangzhou Ms. Esther Hu 020 8755-8217 hu.esther@gz.china.ahk.de Shanghai Ms. Li Yandi 021 5081-2266 ext. 1609 li.yandi@sh.china.ahk.de

South China Mr. Kilian Becker Executive Chamber Manager Tel: 020 8755-8203 Fax: 020 8755-1889 Email: becker.kilian@gz.china.ahk.de

Ms. Esther Hu Chamber Assistant Tel: 020 8755-2353 ext. 217 Fax: 020 8755-1889 Email: hu.esther@gz.china.ahk.de June - July 2009 | 6

Mr. Max J. Zenglein Regional Manager Tel: 0755 8635-0487 Email: zenglein.max@gz.china.ahk.de


Contents

The German Chamber of Commerce in China

Business Focus

Members Mix

8 News from Berlin and Brussels

Meet the Member

10 Engineering for Speed

China is working fast on the world’s largest network of high-speed railway lines

14

14 It Began in the North

‘Jing-Jin’ laid the ground for China going high-speed: with ballastless track and turnout technology from Germany

16 Regional Spotlight:

Harbin – not just holidays on ice Hainan – tourism remains the island’s economic focus Chengdu – becoming a hub for the IT industry Yingtan – the water industry looks at Jiangxi Province

20

Expo in Brief

22

65 66

68

Two GCC-supported initiatives help children and their families in Guangzhou and Sichuan

69

32 Shanghai

New Books

70

Food & Restaurants

72

Learning to cook Chinese can be that easy

Art & Culture

73

Parallel units in South China’s contemporary art scene

Talk about Aspirin, automotives and China in 2050 made up a busy event calendar in Shanghai this spring

Travel

74

74

Best from the horseback view: Inner Mongolia’s remote treasures

City Tour

76

From Dongcheng with love

Around Town 42 Beijing

www.china.ahk.de

Education & Training

Giving Back

45

An enlarged GIC office in Guangzhou and the Chamber’s new local presence in Shenzhen complemented the name change of the GCC • South China

46 Shanghai

Health Friendships in transit

Bridging the gap to Chinese high potentials

30 South China

44 South China

64

Schröder visited the Shanghai Expo office

The Greater China Day in Hannover sent a positive signal of German investor confidence in China

Benefit Program 2009 – Yellow Pages

Member News: 50

Community

22 All-China

GCC • Beijing reviewed an eventful year at the annual general meeting and kicked off its first networking evening for young professionals

48 53 54 54

Beijing South China Shanghai

Chamber News

24 Beijing

Willi Vett – Beiten Burkhardt Thomas Ahlers - FIT Juergen Baur – Rödl & Partner Dirk Meissner - MCon

76

Competitions

78

Church Calendar

79

Chamber Events Calendar

80

7 | June - July 2009


Business Focus

Sino - German Business

The German Chamber of Commerce in China

News from Berlin and Brussels Tremendous Interest in Angola Berlin. More than 300 entrepreneurs followed the invitation of the DIHK to the 2nd GermanAngolan Economic Forum in Berlin at the end of February. Angolan President Dos Santos was accompanied by five of his ministers and 40 business delegates. The highlight of the Forum was the signing of a bilateral economic partnership treaty and several agreements at company level. In the presence of the new German Minister of Economic Affairs, Karl-Theodor zu Guttenberg, DIHK Managing Director Martin Wansleben announced that his organisation together with the Ministry of Economic Affairs would still establish a representative office of the German Economy in Luanda this year. An ever-increasing number of German companies show interest in this region, particularly from the areas of energy, mining and transportation infrastructure. Contact: schwiderowski.heiko@dihk.de

Now Legal: Accounting Abroad Berlin. With the passing of the Annual Tax Act 2009, companies are now permitted to conduct their bookkeeping abroad. Hence the DIHK was able to implement one of its longstanding claims. The new system will help businesses save operating costs and reduce bureaucracy. Prior to the new rule, companies were only able to relocate their electronic accounting to a foreign country in special cases, since the General Tax Code required domestic accounting. This represented a hindrance both for foreign subsidiaries, which had their accounting centralised in the country of the holding company, as well as for midsized companies, seeking to capitalise on cost benefits.

IHKs Promote Mobility of Apprentices Brussels. For their Mobility Consultant Initiative the IHKs (Chambers of Industry and Commerce) received praise from Brussels. The programme that is subsidised by the European Social Fund will be promoted as a best practice model across the EU. And this is how: Since February, experts from 13 chambers advise businesses nationwide on how their apprentices and young professionals can gain experience abroad. The consultants June - July 2009 | 8

help in organising foreign work-stays and initiating exchange programs. The underlying rationale of the programme is that an export nation like Germany increasingly requires professionals with international experience and proficiency in foreign languages. The best way to achieve this is through an internship abroad. At present, only about 2% of apprentices have gained international work experience. The IHK and the European Union aim to considerably increase this share by 2015. Contact: maerz.jaqueline@dihk.de

Stock Exchange Tax is Looming Berlin. What was already believed to be a long-closed agenda point may soon reheat discussions. Taxation of stock-exchange transactions may become a reality again according to the plans of German Minister of Finance, Peer Steinbrück. The DIHK opposes the re-establishment of this tax, as it would raise the cost of trading with shares and thus counteract the stated objective to engage a broader level of the population in a company’s wealth. Furthermore, the tax would likely expel certain areas of the financial sector from Germany, making capital procurement for companies and the country’s economic recovery even more difficult. From a legal perspective, the stock exchange tax would also undermine EU law, which provides for a tax exemption on turnovers in the securities business.

for a short time only,” the DIHK warned. The Bundestag passed the law on March 20th. Contact: beland.ulrike@dihk.de

Universities Finally Open Doors for Masters Berlin. And she does move: The conference of the ministers of education and cultural affairs adopted a uniform regulation of the university admission for qualified vocational applicants. According to this regulation, master craftsmen (German Meister) and business administrators (Fachwirte) shall receive the general university admission qualification. Graduates of the ‘dual system’ with at least three years of work experience can also obtain a subject-specific university admission qualification after passing an aptitude test. Hence, the conference followed the long lasting urges of the DIHK to regulate university admission in a consistent way. Due to the previous regionally unequal regulations hardly any trainees started to study after their apprenticeship. Contact: lambertz.guenter@dihk.de

European Election 2009

Contact: neeser.alexander@dihk.de

Breach of a Taboo as Last Escape Berlin. Do expropriations fit into a social market economy or should regulated insolvencies be preferred? Although this question was considered impossible until recently, it was raised at a historical consultation concerning the rescue takeover law (Rettungsübernahmegesetz) at the German Bundestag in March 2009. Based on the example of the beleaguered property investor Hypo Real Estate, representatives of federal institutions, labour unions and banks discussed the controversial new law. “The expropriation is indeed a breach of a taboo, but probably the only alternative in an otherwise unsolvable situation. Therefore, this tool should be used

Brussels. “The European election is very important – please give your vote”, appeals DIHK President Hans Heinrich Driftmann to entrepreneurs in Germany. 375 million citizens from 27 member states will elect their European Parliament on the 7th of June 2009. In the next five years 99 German delegates will co-decide about environmental, social, industrial and business politics. “The majority of economical relevant laws are coming from Brussels already for a long time. Therefore you should have a close look and decide with your vote, which German delegates shall represent your interests for the next five years.” Contact: schraff.susanne@dihk.de


The German Chamber of Commerce in China

Sino - German Business

Business Focus

www.china.ahk.de

9 | June - July 2009


Business Focus

Cover Story

The German Chamber of Commerce in China

Engineering for Speed

China is Working Fast on the World’s Largest Network of High-Speed Railway Lines To meet the steadily rising demand for mobility of the Chinese population, excessive construction works are being carried out to upgrade the infrastructure. Besides ongoing extension of the Chinese road and air traffic system, the railway track network is growing continuously. Since 2005, several high-speed railway tracks have been under construction to connect the major cities. Altogether, the authorities aim to construct 12,000km of high-speed railway track by the year 2020. Main lines are the BeijingHong Kong connection via Wuhan and Guangzhou, the Beijing-Shanghai line and the east-west-connections from Xuzhou to Lanzhou and from Shanghai via Wuhan to Chengdu (see the individual boxes to get an overview of the major planned lines).

Chinese workers welcome a CRH3 EMU at a railway station in Tianjin, April 23rd, 2008 © Imaginechina

Beijing-Tianjin: First Success and Next Steps With the opening of the Beijing-Tianjin Intercity Railway on occasion of the Olympic Games in August 2008, the first Chinese high-speed railway line with design speed of 350km/h started operation. Travelling time for the 115km stretch between the two cities has shortened from 70 to 30 minutes with trains running at 15-minute intervals during peak time. Next projects are the Wuhan-Guangzhou PDL (Passenger Dedicated Line) and the Zhengzhou-Xi’an PDL by end of 2009 as part of the five-year plan with several lines to follow with a total investment of RMB 3.5tn for railway construction only. Apart from the construction of tracks, the building and upgrading of railway stations across the country represents June - July 2009 | 10

Beijing-Harbin Line

Beijing-Shanghai Line

Route: Tianjin, Qinhuangdao, Shenyang. Branch: Shenyang-Dalian Total length: 1,700km Maximum speed: 350km/h Estimated completion: 2013

Route: Tianjin, Jinan, Xuzhou, Bengbu, Nanjing Total length: 1,300km Maximum speed: 350km/h Estimated completion: 2012

Harbin

Beijing

Tianjin

Jinan Shenyang Xuzhou

Qinhuangdao

Bengbu

Beijing

Dalian Tianjin

Nanjing Shanghai


Cover Story

The German Chamber of Commerce in China

China High-speed Railway Glossary

There are two speed categories of PDL in China: • 200-250km/h: these trains can include both passengers and freight and are used for important corridors, where no railways exist yet. In the long-run, once dedicated freight lines are built, PDLs of this type will be able to upgrade to the maximum speed of 300km/h. • 350 km/h: this category is yet the fastest high-speed railway in the world and is currently also used in France (TGV Est). No freight service can run at this level. Intercity Line: maximum speed of 200-350km/h, connecting large urban centres Updated conventional railways: Some of the main lines of conventional tracks are already updated to the maximum speed of 200km/h. Source: Wikipedia and author huge investment volumes and business opportunities. The development of Guangzhou New Railway Station alone makes up an estimated investment of RMB 18bn. When completed, the station will boast more than 30 tracks and service over 200,000 passengers a day, making it one of the biggest worldwide. Further stations are being built in Beijing (South Railway Station), Changsha, Chengdu, Fuzhou, Hangzhou East, Shanghai Hongqiao, Suzhou, Tianjin, Wuhan, Xi’an and Zhengzhou.

With 1,290km of high-speed railway lines (Munich-Nuremberg, CologneFrankfurt and Berlin-Hannover) in operation, Germany – along with Japan and France – still belongs to the leading field of fast-train nations today. German companies have developed milestone technologies for tracks, track equipment and train technique. German companies have provided ballastless tracks to China, where concrete layers substitute the originally ballasted track. German company RAIL.ONE developed the track system method adopting special concrete sleepers. Max Bögl invented the prefabricated slab system, while Siemens contributed the know how for the catenary system for the Bejing-Tianjin line. German engineering bureaus, such as PEC+S, provide consultation services for the high-speed railway projects in China. In order to fulfill the demands, project teams are being established at the relevant sections, consisting of foreign experts, translators and employees for administrative tasks. The project teams closely cooperate with the Chinese joint venture partners and the client, usually represented by the Chinese Ministry of Railway (MOR). The team monitors the construction work, solves problems and implements extensive quality and safety measures, in order to avoid accidents and damages to the building structure nearby.

Project Spotlight: Nanjing Dashengguan Yangtze Bridge As part of the Chinese high-speed railway development some of the biggest railway bridges worldwide are presently being built. The Nanjing Dashengguan Yangtze River Bridge within the Beijing–Shanghai PDL is just one of them. Nanjing ‘Big Bridge’ is designed as a 1,615m steel framework arch with main openings of 2x360m. Arranged in one level, the bridge overpasses four tracks of the high-speed railway line (300 and 200 km/h)

Beijing Shijiazhuang

Zhengzhou

Wuhan Changsha

Guangzhou Shenzhen

www.china.ahk.de

Beijing -Hong Kong Line Route: Shijiazhuang, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen Total length: 2,300km Maximum speed: 350km/h Estimated completion: Construction of Beijing-Wuhan section has already started, Wuhan-Guangzhou to go into operation by January 2010

Shanghai-Shenzhen Line

Qingdao-Taiyuan Line

Route: Hangzhou, Ningbo, Wenzhou, Fuzhou, Xiamen Total length: 1,600km Maximum speed: Shanghai-Hangzhou-Ningbo part is designed for MOR of 350km/h, rest is designed for MOR of 200-250km/ h for both passengers and freight Estimated completion: Ningbo Wenzhou - Fuzhou - Xiamen by end of 2009, Shanghai Hangzhou in 2012

Route: Jinan, Shijiazhuang Total length: 770km Maximum speed: 200-250km/h Estimated completion: by end of 2009

Taiyuan

Shijiazhuang

Jinan

Qingdao

Hong Kong

11 | June - July 2009

Business Focus

Passenger Dedicated Line (PDL), synonymous with High-Speed Rail. A PDL is a railway route, which permits speeds of more than 200km/h. However, the name is misleading in that some lines are not passenger only. The planned tracks will make China’s highspeed rail network the biggest one in the world.

German Technology and Know-How


Cover Story

The German Chamber of Commerce in China

Business Focus

Nanjing Dashengguan Yangtze Bridge

and two tracks of Nanjing Metro. One key challenge during construction was the drilling of bored piles with lengths of up to 112m. Special boring equipment was needed, which operated from drilling platforms that first had to be installed in the Yangtze River. 80,000t of steel were used for the truss girder - about eight times the amount that was needed for the construction of the Paris Eiffel Tower.

Project Spotlight: Wuhan-Guangzhou To implement the special technologies for high speed railway a good number of foreign companies, mainly from Germany are working on

the Wuhan–Guangzhou PDL project. The scope of service ranges from production and delivering of track components (special sleepers, turnouts), technology transfer for construction of ballastless track to consultation and supervision for the construction works on site. The Wuhan–Guangzhou PDL crosses the provinces of Hubei, Hunan and Guangdong at a length of 960km. The line is based on 323km of subgrade sections with embankments and cuttings, 472km of bridges, and 165km of tunnels. Due to the difficult geological situation the track is – as usual in China – mainly built on viaducts with long passages of piers and prefabricated girders. Crossing many mountains a number of

Xuzhou-Lanzhou Line

Shanghai-Chengdu Line

Hangzhou-Kunming Line

Route: Zhengzhou, Xi’an, Baoji Total length: 1,400km Maximum speed: 350km/h Estimated completion/Status: Zhengzhou-Xian by end of 2009

Route: Nanjing, Hefei, Wuhan, Chongqing Total length: 1,900km Maximum speed: Shanghai-Nanjing is part of Beijing-Shanghai line with 350km/h tracks; NanjingChengdu is designed for 200-250km/h for passengers and freight; Chongqing-Chengdu section is designed for 350km/h Estimated completion: Shanghai-Nanjing section in 2010, Nanjing-Hefei-Wuhan opened in 2008

Route: Nanchang, Changsha, Guiyang Total length: 1,630km Maximum speed: 350km/h Estimated completion: 2012

Hangzhou

Lanzhou Xi’an Baoji

Xuzhou

Nanjing Hefei

Zhengzhou Chengdu Chongqing

June - July 2009 | 12

Wuhan

Shanghai

Changsha Guyang

Kunming

Nanchang


Cover Story

The German Chamber of Commerce in China

While other railway lines use German tunnel boring machines such as the types of Wirth (e.g. for the Guangzhou-Shenzhen line) and Herrenknecht (e.g. Guangzhou metro), these tunnel sections are constructed conventionally, mainly using mining techniques like drill and blast or excavation. Within the section Huadu-Guangzhou Station the construction of the 4.3km JinshaZhou tunnel is considered to be extremely difficult. The cooperation of all experts and parties involved avoided serious accidents.

Technology Transfer One of the major interests of the Chinese Ministry of Railway as the major client is reasonable technology transfer. Chinese constructors and design institutes should be enabled to design and construct the high-speed railway lines independently. Whereas the construc-

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tion of pilot projects such as the Beijing-Tianjin Intercity Railway line involved several foreign companies, future sections will be developed and constructed with Chinese know-how only. Nevertheless, railway construction in China today still represents the biggest market worldwide. There are plenty of projects waiting, where foreign involvement will be still necessary, such as for the maintenance of ballastless tracks and noise and vibration protection. Even if local suppliers have gained plenty of experience, many fields of technology have not yet reached international top standards and call for improvement. Therefore the development of high-speed railways in China will continue to remain a profitable field for foreign constructors and consulting engineering companies in the future. Mr. Johannes Fr端hauf is Bridge Supervision Engineer at PEC+S Germany (Planning Engineering Consulting + Services Ltd). The German joint venture supervised the project Beijing-Tianjin (lot 2) and currently works for the section Huadu-Guangzhou Station within the Wuhan-Guangzhou PDL. Another project covers the Nanjing-Dashengguan Yangtze Bridge on the Beijing-Shanghai PDL. PEC+S consists of: SSF INGENIEURE Ltd. (Civil Engineering); GRE - Gauff Rail Engineering Ltd. (Track Equipment, Track Work); ACCON Ltd. (Sound and Vibration Technology) and IMB Dynamic Consulting (Dynamic Consulting) China contact: Mr. Johannes Fr端hauf | Tel: 010 6538-9360 Germany contact: Mr. Matthias Scholz | Tel: +49 89 3604-0455

13 | June - July 2009

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tunnels is necessary. Several precast yards exist along the site for prefabrication of the 820 tons of pre-stressed concrete girders. Large gantry cranes lift the girders on the piers and special vehicles transport them to their final destination.


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The German Chamber of Commerce in China

It Began in the North

The Beijing-Tianjin Route Laid the Ground for China Going High-Speed Counting some of the leading providers of high speed train technology, German companies played a major role in the construction of the first Chinese PDL Line between Beijing and Tianjin PDL. The route starts at Beijing South Station, bridges four urban motorways and leads over delicate alluvial soil to the port city of Tianjin. New track technologies and innovations used on the 115km long path guarantee reduced wastage and highest passenger comfort and safety while travelling at 350km/h top speed.

CTC and CNTT staff members installing and adjusting a turnout drive

Ballastless Technology from Germany

©Josef Hess

Tests on traditional tracks brought out the need for new technologies. When a train reaches about 250km/h it encounters a ballast pickup, causing the axle and the bogie-mounted brake cylinders underneath the train to be hit by the ballast stones. China has developed special super-class ballast especially for high-speed Passenger Dedicated Lines (PDL). But the resources for these super ballast stones are scarce. By applying the so-called ballastless track technology ("slab track") such problems can no further occur.

of technical consultation, the check of substructures and quality assurance of the slab track mounting. The company also supported the construction and equipment of production facilities in the Beijing suburbs Fangshan and Pinggu. These two facilities altogether produced about 36,000 track-supporting layers for the double-track line from Beijing to Tianjin. With an accuracy of up to 10mm (outer geometry) in the raw parts and ±2mm (inner geometry) in the adjusted parts the required geometry had been grounded in the whole line. The construction of a 10km long test intersection of the PDL route Due to the alluvial soil on the route a total of 100km of tracks had began in 2005. China Railway 17 Bureau Group & Co. Ltd. executed the to be built on bridge constructions, of which the longest continuous planning and construction work with the support of German Max Bögl stretch runs over 36km. Such constructions require special ‘arming’, Group. The German developer of the ballastless track technology with for which portal frames boosted the 860t heavy bridge girders on precast concrete plates provided an 80-strong team that was in charge abutments. Heavy lorries imported from Germany transported the parts along the tracks to their destination, where special feeder Construction near Yizhuang, the first of three stops on the way from devices carried out the final positioning. Beijing to Tianjin

Turnout Technology Not only had German Bögl slab track technology found its way into the Chinese mammoth project. Voestalpine BWG, German daughter of Austrian Voestalpine Group, won the contracts to deliver the turnout technology for China’s first three high-speed lines. The company provides 319 special turnouts for three different Chinese railway companies. ‘Jing-Jin Line’, the connection between Beijing and Tianjin, is also the first Chinese railway line, where special high-speed turnouts were used. 28 German fabricated turnouts serve on this route alone. In 2007, Voestalpine BWG and state-owned China Railway Shanhaiguan Bridge Group Co. Ltd. (CRSBG) founded the 50:50 joint venture Chinese New Turnout Technology Co. Ltd. (CNTT). The newly formed company has since become the leading company in the high-speed turnout technology area throughout China. June - July 2009 | 14


The German Chamber of Commerce in China

A high-speed turnout of the line, an achievement of Sino-German cooperation

Business Focus

The total investment in this JV amounts up to EUR 21.5mn. 90 staff members of CNTT were responsible for the final assembly of the components and the running of on-site-logistics.

demand for mutual understanding of the other side’s concerns is omnipresent”. Mr. Hess pointed out that he is overly impressed by the excellent communication between the client and the Chinese partners.

The installation, adjustment and acceptance on site was supported by CTC, a turnout technical service consortium consisting of VaBWG turnout experts and survey engineers. “The Sino-German cooperation in these gigantic projects is very good”, said Mr. Josef Hess, project manager of CTC who is now also in charge of the ‘Wuguang Line’ from Wuhan to Guangzhou. He added, “we all work together. Hence the

In the context of technology transfer into the JV and setup of local turnout fabrication, components for future sections of the high speed PDL network are already being produced locally. For the time being however, German companies can still contribute with their knowledge and experience and help to accelerate the process of China becoming a high-speed railway nation. MK

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15 | June - July 2009


Harbin - North China

The German Chamber of Commerce in China

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Not Just Holidays on Ice Harbin is not only Vast and Cold, it Provides a Large Set of Opportunities for Investors With a total area of 53,100km², the capital of Heilongjiang province covers almost three times more land than Beijing. Populated by 9.4mn residents, Harbin is probably China’s northernmost business and visitor hotspot. The Harbin weather is characterised by mild summers and cold winters. The average annual temperature in the city is only 4.3°C (Beijing 13°C). The coldest time lasts from December to February, when the average temperature drops to –23.6°C, while it reaches just a mild 20.8°C in summer. Hence, it is no wonder that Harbin reached worldwide fame for its beautiful display of ice sculptures in winter. The Harbin International Ice and Snow Sculpture Festival, first held in 1985, runs every year from 5th January for over one month. In 2009, nearly 800,000 visitors from around the globe flocked to the festival to become captivated by the frozen magic. © Narelle Beattie

A Young Town Until the end of the 19th century Harbin was just a small fishing village on the Songhua River. As of 1896 the city experienced a strong European influence due to its geographic proximity to Russia. Traces of this era are still visible today in the city’s distinct architecture that makes Harbin a unique place in China. The majestic St. Sofia Orthodox Church and the Zhongyang Dajie shopping street with its European style buildings give visitors the impression of walking through an 'Eastern Moscow'.

Heilongjiang Province “Heilongjiang” literally means Black Dragon River, which is the Chinese name for the Amur River. The Amur forms the border line to Russia in the North, while in the East, China and Russia are divided by the Wusuli River. In total, Heilongjiang shares a border of 3,040km with Russia. The province is an important centre of traditional industry and agricultural production especially for rice, soybean and corn. With 11.34mn hectares of cultivated land it accounts for 10% of China's total agricultural output. Heilongjiang is also rich in natural resources with its deposits of petroleum, graphite, coal and gold.

Solid Infrastructure Taiping International Airport lies 33km northwest of Harbin city. It was built in 1979 and began serving as an international airport in 1984. After another expansion during 1994-97, it now has more than ten daily flights to Beijing and Shanghai each and a few scheduled flights to Russia, South Korea, Japan, Singapore and Malaysia. Although Harbin is not a coastal city it does own a port on the banks of the Songhua River that is listed as one of the eight important inland harbours in China. In fact, there are two ports in Harbin: One is located in Daobei District and handles passenger traffic, the other one is the freight port in Taiping District with particularly high cargo volumes in wood products. June - July 2009 | 16

Harbin is the second largest railway hub in Northeast China after Shenyang in Liaoning Province. The city has two railway stations: Harbin Railway Station and Harbin Eastern Railway Station, which was originally built by the Russians in 1899 as an extension of the Trans-Siberian Railway. Harbin is also well integrated into China’s road network with seven highways leading to all parts of the country.

Industrial Landscape Besides agriculture, Harbin houses a wide range of manufacturing industries, primarily pharmaceuticals, automotive, electromechanical plant equipment and textiles. Other industries include light industry, metallurgy, electronics, construction materials and chemical engineering. Leading companies include Harbin Aircraft Manufacturing, Harbin Power Plant Equipment, Harbin Bearing Group, Harbin Measuring & Cutting Tool Group, Harbin Dongan Auto Engine, Harbin Pharmaceutical Group and Harbin Beer. The latter has become a giant in China’s beer industry with an annual production of 1.9mn kilolitre. It was founded in 1900 by Russians and is today China’s fourth largest brewery. On the academic side, Harbin is home to one of the top ten universities in China, the Harbin Institute of Technology. CB

Harbin Development Zone (HDZ) consists of two zones: 1) Harbin Economic and Technological Development Zone (ETDZ) was established in June 1991 and approved as a state-level development zone in April 1993. The zone has a planned area of 30km² and three centralised parks under its administration: The Nangang Park mainly serves as an incubator for new and high-tech projects and R&D base for enterprises. The Hapinglu Park is a comprehensive industrial zone for investment projects of automobile and car parts, pharmaceuticals, food processing, electronics and textiles. Yingbinlu Park is mainly dedicated to high-tech incubation projects and industrial development. 2) Harbin High and New Technological Development Zone was established in September 1988 and got approval by the state council in March 1991.

Key economic data Harbin (2007) Total GDP RMB 243.7bn

Per capita GDP RMB 24,680

Heilongjiang (2007) Total GDP RMB 706.5bn Primary industry RMB 91.5bn Secondary industry RMB 369.6bn Tertiary industry RMB 245.4bn Per capita GDP RMB 18,478

Change (to 2006) +12% +4.1% +12% +14.8% +11.9%

Source: Hong Kong Trade Development Council

Useful Links: Harbin ETDZ: http://www.kaifaqu.com.cn Northeast China City Info: http://ch-info.erina.or.jp/English/He/Har/ harbin.htm


Hainan - South China

The German Chamber of Commerce in China

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Sunny Prospects in the South Sea Hainan Sees its Future in Tourism whereas a ticket to Bali or Phuket is at least double that price. Newly introduced direct flights from Taiwan to Hainan are likely to attract even more tourists.

View over Sanya

© Kempinski Hotel Sanya

The international economic downturn is barely noticeable in China’s holiday paradise Hainan. Visitor numbers and tourism revenues over Chinese New Year 2009 witnessed a double-digit growth percentage to the year before. Contrary to its initial plans, Hainan puts further focus on its tourism sector. The set up of a petrochemical industry, which had been announced several years ago, has not happened so far and now emerges in neighbouring Guangxi. While Hainan’s government plans to enlarge the infrastructure, private investors continue to build new hotels, bearing great business opportunities for foreign suppliers. Holiday guests will be delighted, considering the fact that Hainan belongs to the few offshore regions in China without main focus on industrial development.

Production in the North, Relaxation in the South According to the National Bureau of Statistics, Hainan is China’s leading province in terms of its primary sector. In 2007, the island’s primary sector contributed 30% to the total gross value added, while manufacturing accounted for only 23% of its GDP. The industrial sector located around the provincial capital Haikou in the north of the island focuses on processing natural resources. It is also here, where German textile giant Triumph with its 2,000 employees produces linen for the Pan-Asian Market. On the opposite side of the island, tourism meanwhile is spreading out. Since 2004, foreign enterprises have started to build five star hotels that contribute to the rising demands in quality and service standards. In 2008, openings of Kempinski, Mandarin Oriental and Banyan Tree have set the scene for tough competition in the top luxury hotel segment. The Provincial Bureau of Statistics counted around 20mn visitors in 2008, an increase of 11% compared to the year before. The number of international tourists decreased by 6% though and fell to around one million. In spite of the crisis, many hotels and restaurants on the island expect satisfying business in 2009. During the spring festival 2009 the number of tourists has risen by 15% compared to the same period last year. Revenue of the travel industry has grown by 19% during the same time. Industry insiders report that the Chinese save up expensive visits abroad and travel to domestic destinations instead. Furthermore, increasing numbers of visitors from Hong Kong and Taiwan choose Hainan as their travel destination in lieu of remote islands abroad. A trip from Hong Kong to Hainan can cost less than RMB 1,500, June - July 2009 | 18

© Jakob Montrasio

Public and Private Investment Plans

Amidst the crisis the government and private investors further focus on large-scale tourism developments. Opposite to the coast of Sanya the government plans to set up three marinas on Phoenix Island. The bays of Haitang, Xiangshui, Qingshui and Shimei are subject to further investment projects. The master plan foresees the settlement of another 80 international hotels by the year 2016. These plans offer attractive business opportunities for foreign investment since the luxury hotels mainly utilise imported building services and engineering such as air-conditioning, elevator, safety and lighting technology. As for the equipment of guest rooms, baths and kitchens, the fitters favour furniture, mountings, ceramics and tableware from abroad. Remarkable business opportunities also arise from the planned infrastructure projects of the province. Not only roads and bridges, but also an expansion of the capacity for water treatment is in the making. The city of Haikou projects to build three sewage plants. In addition to that, more than USD 500mn are set aside for development proposals in renewable energy. One of the most challenging showcase projects is the planned 30km bridge that will connect the island with Mainland China. At the end of 2008 the local government filed an application with the State Development and Reform Commission. The ambitious plan has existed since 2004, yet the international economic crisis and Beijing’s USD 600bn stimulus package have added complexity to the realisation of the project.

Hainan Overview 2008 Nominal change Gross domestic product (bn USD) 21.5 Population (mn) 8.5 GDP per capita (USD) 2,530 Imports (mn USD) 2.9 Exports (mn USD) 1.6 Number of tourists (mn) 19.6 - from abroad 1.0 Revenue from the tourism industry (bn USD) 2.4

9.8% 1.1% 8.7% 36.6% 16.3% 10.8% -5.5% 10.3%

Source: Hainan Provincial Bureau of Statistics/ *real change Dr. Roland Rohde is the Delegate General for Hong Kong, South & West China of Germany Trade & Invest GmbH, the newly merged foreign trade and inward investment agency of the Federal Republic of Germany. Tel: +852 2532-1277 | Email: Roland.Rohde@gtai.de


The German Chamber of Commerce in China

West China - Chengdu

Chengdu’s IT Industry

Blue Chips like Intel, Siemens, SAP, IBM or Microsoft all have offices and factories in Chengdu. Intel with its 2,500 employees has recently closed a factory in Shanghai and moved all employees to Chengdu. IBM cooperates with the Chinese electronic company Changhong – the country’s biggest supplier of TV flat screens. The city also houses the headquarters of IT giant Maipu, which had been visited by former German Chancellor Gerhard Schröder some years ago. The main reason behind the large investments of international IT companies is still the low salary level in Chendu, which brings savings in labour costs of up to 30% compared to first tier cities like Beijing, Guangzhou or Shanghai. Combined with the steady supply of highly skilled graduates from UESTC, this provides a very attractive environment, especially for the well-known international IT players, which are regarded as admired employers by the young graduates. German companies are thus seeing future opportunities mainly in building up high-end facilities for Research and Development.

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Chengdu looks back on a long tradition in developing the region as a hub for Information Technology in China. Already in 1956 the elite University for Electronic Technology and Science (UESTC) was established in tight cooperation with the military. This has helped to turn the province into one of China’s centres for IT and electronics today. 50 years later the early efforts still seem to bear fruits. Sichuan’s IT industry has an annual growth of 20% and accounts for a trade volume of about USD 5bn.

Chengdu High-tech Incubation Park houses over 300 software enterprises, R&D centres and consulting firms, including the likes of Microsoft, SAP and Lenovo © Imaginechina

The high amount of tellurium in the Sichuan region also provides good conditions for the production of computer chips and solar cells. This was also witnessed by the Minister of Economics of the state of Brandenburg, Mr. Ulrich Junghanns, who visited Chengdu in March to meet with Apollo Solar Energy, a local solar cell producer. Last but not least, the provincial and municipal government contributes its part to attract investment by tax reductions and free office space during the first three years of operation. November 2009 will bring a playful event to Chengdu. The finals of the World Cyber Games will further underline the city’s status as the capital of the Chinese internet gaming industry. OH

19 | June - July 2009


Yingtan - East China

The German Chamber of Commerce in China

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Building a Future on H2O

Yingtan in Jiangxi Province is Set to Become a Centre of China’s National Water Industry Located in the city of Yingtan a s t ra t e g ic mity to Zhujiang Strait natural

north-east of Jiangxi province, the and its 1.2mn inhabitants enjoy location. The proxithe Yangtze River, Delta and Western endow the city with a transit role between the southeast coast and mid-western areas inland. Heavy investments into road and railway infrastructure have put Yingtan within easy reach of large urban centres in Zhejiang, Anhui and Fujian Provinces. High-speed trains from Yingtan now only take four hours to Shanghai, whereas Nanchang’s Changbei International Airport is a sheer one hour drive away. This is supported by the national highways 320 (Shanghai-Kunming) and 206 (Jinan-Guangzhou), which intersect at Yingtan.

This includes providers of water purification, sewage disposal, reclaimed water processing and measuring technologies and equipment. Y i ng t a n ’ s ra w ma t e rial base and its strong copper industry and independent electricity generation are meant to provide a good operating environment for these companies. In terms of labour supply for potential investors, the local government points to its jurisdiction of eleven counties and 6mn population, of which 400,000 are currently migrating elsewhere to look for work. Last but not least, the city’s ring network water supply system with 0.1mn tons of potable water secures stable production and living conditions.

Diversifying from Heavy Industry Yingtan has so far been mainly known as an industrial base for copper smelting and processing with some additional production of electricity, chemicals, energy-saving lamps and glass. Sulfides, gold and silk are the main raw materials of this area. Jiangxi Copper Group Company is the largest copper smelting and production base in Asia, ranking among the top three in the copper industry due to its electrolytic copper productive capability of 0.8mn tons. In 2008, Yingtan had a total production capability of 1.4mn tons of copper. Sanchuan Water Meter Limited has been China’s leading enterprise in the production and marketing of water meters for seven years. Guixi Fuel Electric Plant is one of the main electricity generation bases in eastern China with an installed capacity of 1.1mn KW. With the national water industry developing at great speed, Jiangxi Provincial Government has put an emphasis on this rising sector as part of the 11th Five-Year Plan. Particular focus is put on sewage disposal and treatment. The annual output of water utilities is estimated to pass the 200mn ton mark at the end of 2010, an increase of over 15%.

Building a Hub for the Water Industry Yingtan currently plans to set up a Water Industry Park in Longgang New Zone, located between Yingtan Economic Technological Development Zone and Yujiang County. The total industrial area covers 16.4km2, of which 3km2 are set aside for investors from the water industry. Road, water and electricity infrastructure are already set up. The park is looking to attract predominantly companies active in advanced treatment of water supply and sewage to settle in Yingtan. June - July 2009 | 20

Longhu - Dragon and Tiger Mountain The birthplace of Chinese Taoism lies only 20km to the south-west of Yingtan. The surrounding area boasts six scenic spots (Shangqing Palace, Zhengyi Palace, Xianshui Rock, Yingtian Mountain, Mazu Rock and Hongwu Lake) with 99 peaks, 24 rocks and 108 natural and cultural monuments. Taoism culture, beautiful rock formations, clear water and mysteriously suspended coffins from the steep river cliffs make this area a unique, but still not much visited treasure.

Yingtan Economic and Technological Development Zone provides support to interested investors and organises site-inspections. For further information please contact Ms. Xu Hui, Secretary of Yingtan Economy and Trade Management Committee and Mr. Lü Sheng, Section Chief of Yingtan Economy and Trade Management Committee Tel: 0701 621-1058; 135 0701-8551; 137 0701-6946 Fax: 0701-622-3024 | Email:731618026@qq.com


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21 | June - July 2009


GC Ticker June-July 2009 Part 1