Chengdu Chapter calls for involvement in college education

Many companies complain that it is difficult to recruit qualified employees. Meanwhile, fresh graduates, the source of human resources, find more and more doors shut by companies that ask for only experienced talent. To change the situation and to improve the quality of human resources in the long term, close cooperation between universities and enterprises is necessary. However, this cannot be achieved by just a few bilateral agreements.

An HR roundtable meeting dedicated to college students' professional training was held in Chengdu on June 16 with leading local universities and foreign enterprises. The European Chamber proposed to provide yearly short-term internships to college students beginning in the first year of studies, instead of the traditional six months at the end. As a result, work experience will be accumulated by graduation. By offering simple tasks to interns, companies can save on budget when hiring for more sophisticated positions. It is also a good way to get to know candidates before recruitment, and it helps to reduce the turnover rate of young graduates.

The involvement of enterprises in the programme and the career tutorial of universities are advantageous to both sides. Intervention in the supply chain may bring about cost reduction in training and recruitment for enterprises in the long-term, and students will benefit from professional training and graduate ready to fill the needs of companies.

Another HR forum with the same purpose will be held by the Chengdu Chapter at the end of July. A broader range of participants will include all local universities and Chinese enterprises. The European Chamber will call for involvement of all concerned parties in improving the human resources supply in the local market. A job fair is scheduled to be organized in October to facilitate the recruitment of English-speaking candidates for foreign companies in Chengdu.

Nanjing Chapter celebrates Europe Day with Chinese officials

As a member of the European Chamber, you may have come across a reference to May 9 as "Europe Day" and wondered about its significance.

Probably very few people in Europe know that on May 9, 1950, the first move was made towards the creation of what is now known as the European Union. In Paris on that day, against the background of the threat of a Third World War engulfing the whole of Europe, French Foreign Minister Robert Schuman read a declaration to the international press. It called on France, Germany and other European countries to pool their coal and steel production as "the first concrete foundation of a European Federation". What he proposed was the creation of a supranational European Institution, charged with the management of the coal and steel industry, the very sector which was at that time the basis of all military power.

Everything began on that day, which is why, during the Milan Summit of EU leaders in 1985, it was decided that Europe Day should be celebrated every May 9.

The European Chamber Nanjing Chapter wishes to celebrate Europe Day in order to remember the whole process of the construction of Europe since 1950. Therefore the leaders of the city government and the different bureaus were invited to a dinner to meet the top executives of member companies. In total, 60 people attended the dinner, including European Chamber members from various companies and local Chinese officials.

As an introduction to the speeches, short videos showing the cooperation between China and Europe were presented. The first video focused on the unification of the 25 European countries - unified despite their diversity. The second video was about the European Union programs for pollution and agriculture. Then Madam Xu, Deputy Mayor of the Nanjing City Government, and Mr Paul Booms, Vice Chairman of the Board of the European Chamber, delivered their speeches. The celebration signified the strong ties between Europe and China and mutual willingness to further develop this relationship.

The European Chamber would like to thank the Jinling Hotel for its support in the organization of this event.

Commissioner Mandelson launches Chamber's 7th chapter

On June 5, the European Union Trade Commissioner, Mr Peter Mandelson, and the Ambassador, Mr Serge Abou, officially launched the Pearl River Delta Chapter of the European Union Chamber of Commerce in China.

The Pearl River Delta represents China's manufacturing pillar in the sectors of electronics and computer equipment, textiles, automotive, energy and chemicals, together with its developing service sectors like finance, logistics and transport. "The opening of the Pearl River Delta Chapter shows that the Chamber is extremely committed to enhance dialogue and to improve the business environment also at a local level," said European Chamber President Janssens de Varebeke in his opening speech. "The cluster-based economical system formed by Guangzhou, Shenzhen, Dongguan, Foshan, Huizhou, Jiangmen, Zhaoqing, Zhongshan and Zhuhai truly represents the biggest and most concrete example of China's economic reform, and European companies are among the main supporters of this achievement."

The opening ceremony was attended by significant European-invested companies operating in Guangdong, which expressed their wish to further expand their operations if the surrounding business environment supports this strategy. Before the opening dinner, Mr Mandelson held a meeting with representatives of the EU diplomatic corps based in Guangzhou, led by the Finnish Consul General, Mr Hannu Toivola, and representatives of the European business community. The discussion was mainly focused on investment opportunities, IPR, energy, government procurement, logistics infrastructure and corporate social responsibility.

The Guangdong Department of Foreign Trade and Economic Cooperation, and the Guangdong Chamber of Commerce also welcomed the presence of the new European Chamber in the Pearl River Delta area. The new office will become the point of reference for many European enterprises and, in its role of facilitator of business and dialogue, it will directly contribute to the enhancement of EU-China relations.

Soccer tournament builds sense of team spirit

For centuries, sport has been a powerful tool in bringing people together and stirring passion in even the most indifferent individuals. The response to worldwide competitions, such as the Olympic Games, clearly reflects the power and influence of sport. The excitement that has been growing around the world because of the 2006 World Cup, to be held in Germany, illustrates that the power of sport is as strong as ever. The European Chamber of Commerce, Nanjing Chapter, decided to tap into this enthusiasm by hosting a second soccer tournament for its member companies.

Soccer, perhaps more than any other sport, has the ability to bring people together to create a sense of team spirit and to build morale among players and supporters. With this in mind, the second European Chamber soccer tournament was organized and took place on May 21. After the success of the first tournament at the end of last November, the Nanjing Chapter wanted to offer another opportunity for member companies to practice team building and for staff from every level of member companies to be involved in a Chamber event. Eleven squads, each accompanied by a host of supporters, took part in the tournament.

Those present took advantage of the chance to both socialize with other company staff and to strengthen the sense of team spirit within their own team. Thanks to the atmosphere created by this positive attitude and a bit of luck with the weather, the tournament was an all-around success and the goal of the Chamber to use sport as a tool to build team spirit was achieved. The final match of the tournament, which was won by the fit and well organized BASF YPC team, brought to a close a long day of sportsmanship, teamwork and most of all enjoyment - which the Chamber hopes will continue long after the World Cup is over, and at least until the third tournament that will take place later this year.

Following are some comments from companies who participated in the tournaments:

For Basf, the winning team, sport is team spirit and performance combined with fun. "If everybody gives his or her best we can achieve a lot, but if we work together as a team, we can achieve much more. These beliefs are the essentials of becoming 'the best team in the industry' (one of the BASF goals), and reflect the philosophy of our company," said Hans-Christian Marxen, head of BASF-YPC's HR Department.

VALEO commented that "because football is a team sport, it enforces team spirit and positive competition/competitiveness. Valeo attaches great importance to these values. That is why we decided to participate in the soccer tournaments organized by the European Chamber last November and again in May."

"Know Each Other Better, Work Together Better!" is the main reason we use sport as a tool for team building, said Huang Xiaoqin, the HR Manager of Diehl Controls.

Mandarin training institute satisfies local demand for learning Chinese

New Concept Mandarin has just opened a new training centre in Nanjing. This European Chamber member company celebrated the opening of its tenth Mandarin language training centre last Friday with a launch party held at the Blue Marlin Restaurant in downtown Nanjing. Approximately 200 guests from the local expatriate community attended the event.

The number of foreign companies applying to do business in China has increased dramatically in recent years, and as a result there is a recruitment drive for expatriates to work for joint ventures and large Chinese companies. Nanjing is no exception to this trend, and the number of foreigners working in Nanjing continues to grow, as does the awareness of the importance of learning Chinese. Faced with a growing Chinese economy and significant improvements in the quality of life, more expatriates are now happy to stay in the country for longer than the usual two year work contract.

Kerry Burton, director of business development in China for New Concept Mandarin, recognized the opportunity to open a new centre after he attended the opening of the European Union Chamber of Commerce Nanjing Chapter last September. "Having the European Chamber open a chapter in Nanjing indicated that the foreign community here was growing and that Chinese language services would be welcomed by the expatriates and their spouses. The company plans to open new centres in Shanghai, Beijing and other Mainland Chinese cities this year to better service the expat community throughout China." Fu Xianling, founder and CEO of New Concept Mandarin, offers the following advice. "It's important that you have the right attitude and passion to learn as your teacher should have to teach. You should understand that learning a language is about embracing a culture, learning about customs and the way of communicating. There is a formality in the way Chinese do business; from the way someone presents a business card to how they handle social occasions. We include these scenarios as part of our teaching. Most of our students are executives and upper management and they know the importance of acquiring these skills as an investment that will improve their business and their own career prospects."

For foreigners living and working in China, "knowing how to respond and act in social or business situations with some knowledge of Chinese is important. It demonstrates respect for Chinese culture, gives 'face' and makes it easier to do business and make new friends," says Fu.

Meeting with Danish governmental delegation

On May 11, DCCC hosted a dinner event in honour of HE Dr Per Stig M?ller, Minister for Foreign Affairs of Denmark, and HE Ms Connie Hedegaard, Minister for the Environment of Denmark.

"China and Denmark enjoy a long-term friendly relationship. In 2005, Sino-Denmark trade amounted to US$4 billion and has gained a good momentum for further development. China and Denmark are strongly complementary to each other economically. "We, however, should not take this relationship for granted. We need to nurture it constantly," Tom Behrens-Sorensen, chairman of DCCC, stated in his welcoming speech. "The governmental delegation headed by HE Dr Per Stig M?ller and HE Ms Connie Hedegaard is a further step to strengthen the Sino-Danish ties."

HE Dr Per Stig M?ller thanked DCCC and the Danish companies present in China for their contribution to strengthening Sino-Danish ties.

Ms Connie Hedegaard pointed out that the cooperation with China within the environmental sector is promising. She mentioned that the Chinese environmental minister proposed to set up a Sino-Danish environment cooperation framework in the meeting that the delegation had with the State Environmental Protection Administration. This proposal can be understood through an old Chinese saying that goes: "If you want to know the way, ask the people who have come back."

China knows that Denmark experienced similar problems 30-40 years ago, and researched within and developed the technology to solve the increasing problems. Denmark is now in a position to assist China in solving the country's environmental pollution problems. Ms Hedegaard called on Danish companies in China to participate actively in setting up the Environmental Cooperation Framework with China.

Change management in China: bridging the gap between knowing and doing

The opening of the Chinese market to foreign trade and investment, and the consequent collaboration between Chinese and Western businesses, now brings a new challenge to management: how to effectively manage these relationships based on a better understanding of the other's culture, and in particular, of which behaviours and attitudes may be expected.

With the accession to WTO and increasing liberalization of the market, one would be excused for thinking that the Chinese are fully adept at change. Underneath, however, there is a great resistance to change rooted in an aversion to risk.

Books, classes and seminars can go some way in explaining the "what" and "why" of influencing behaviours and implementing changes in China. Business games are a solution to know "how".

The European Chamber Nanjing Chapter has organized an HR Workshop on May 24, showing a simulation of how to implement change management in China.

The simulation is built on the principle that change evolves through four stages - awareness, interest, trial and adoption - and this is no different in China. The logic is that people will not be interested in anything unless they are aware of its need or utility; they will not try it unless they are interested; and they will not start using it unless they have (successfully) tried it. The way in which people react to change however is very different. The dynamic of change relative to what we are used is deeply rooted in a cultural and historical heritage.

The purpose of the workshop is to provide a very realistic business case to managers from which they will learn the challenges and pitfalls of managing change and innovation in an organization.

The interest of HR Management lies in the fact that change management skills are a necessity, at all management levels, and a required part of management development. The workshop focuses in particular on the duality of meeting corporate profitability objectives (wanting to introduce change and innovation in the most cost-effective and timely manner) and organizational objectives (needing to create understanding and buy-in from everyone affected by the changes).

It has long been understood that technological innovations, while often providing a huge return on investment for the company, also cause a lot of stress and de-motivation in the organization. The number one reason why change and innovation projects fail is indeed a lack of change management skills on the part of even very capable and experienced project managers - proving the need for HR management to take an interest.

Contributed by Philippe Leliaert, who is a management consultant in organizational development and change and a visiting lecturer at several business schools in Europe, Asia-Pacific and South America. Leliaert initiated a research project to better understand the essential idiosyncratic drivers and dynamics of change behaviours in the Chinese business environment and introduce these into a new simulation model to help develop change agent skills in China. This project obtained part-financing by the European Commission's Asia IT&C programme. It involved a partnership between INSEAD's Center for Advanced Learning Technologies (CALT), the Maastricht School of Management, and Nanjing University School of Business.

The Asia IT&C Programme is one of a series of initiatives from the European Commission designed to promote mutual benefit and understanding between the European Union and Asia. It aims at improving eight key sectors through the innovative use of information technology and communication proposed by non-profit making partnership.

For more information visit: www.europa.eu.int/comm/europeaid/projects/asia-itcz


Upcoming Events

Beijing

SME Networking Evening
6pm, Centro Bar,
Kerry Centre Hotel
Members: RMB100,
Non-members: RMB150
Following last year's successful event, the European Chamber is pleased to welcome you to the second SME Networking Evening at Centro in the Kerry Centre Hotel. Entrance fee includes two free drinks and snacks. Subsequent drinks purchased between 6pm and 8pm are buy-one-get-one-free. The SMEs Working Group offers a platform for European SMEs to network, exchange views and experience and join efforts to relay their concerns to the Chinese Government.


Shanghai

Breakfast Seminar on the
development of the Luwan district
8:30am, Hilton Hotel
Price: Members RMB200,
Non-Members RMB400
This seminar will look into the development of the Luwan district area, starting from its current status and analyzing future projects. Particular attention will be paid to implications affecting the construction sector and the real estate market.

Breakfast Seminar on the PRC
Labour Law for SMEs
8:30am, Hilton Hotel, Shanghai
Price: Members RMB200,
Non-Members RMB400
The European Chamber in Shanghai welcomes you to a new SME breakfast seminar.

This seminar investigates legal and tax aspects of employing local staff. For the legal part, it will particularly deal with issues of labour service agencies, mandatory contract terms, probation periods, overtime, termination and restrictive covenants. The tax-related panel will cover individual income taxes, calculation methods and payment procedures.


About New Concept
Mandarin
New Concept Mandarin Ltd is the world's leading Mandarin language training institute, with over 20 years of experience in applied linguistic research and training in teaching Chinese. New Concept Mandarin offers both private, small-group and corporate training programs for part-time or full-time studies at its training centres or client offices. New Concept Mandarin designs and develops all of their own course book materials and proprietary software technology in-house. Apart from enrolling in courses at their training centres, clients anywhere in the world can order CD-ROM, DVD learning products and online courses from the corporate website: www.newconceptmandarin.com.

A special immersion program is also now available in Shenzhen, China. The institute currently has ten centres throughout China, including Shenzhen, Guangzhou, Dongguan, Suzhou, Nanjing and Shanghai. International office locations include Singapore and Munich, with additional centres planned for Europe, North America and Australia.


Lobby Actions

European Chamber writes to Guangdong authorities

The European Chamber has sent a letter to Guangdong provincial authorities following concerns raised by members regarding the bidding process in Guangdong's provincial hospitals.

Local health authorities have established an arbitrary bidding price restriction for some drugs, including patented and innovative drugs. This price restriction has established a bid pricing limit, or ceiling, above which hospitals may not purchase drugs. The pricing ceiling has been set relatively low excluding approximately 500 drugs. It is unclear why the authorities have set such low limits, lower than those in Shanghai and Guangzhou.

Not only are such practices against national bidding and pricing policies, but also members fear that such steps will hinder the development of the innovative drug market in China.

In an effort to voice their concerns and find ways to resolve this issue through dialogue, industry secured meetings with Guangdong officials earlier this year.

Although there have been some results - a back-up list was established for use when drugs within the ceiling price are not available - the Chamber encourages the local health authorities to adopt national bidding and pricing policies.

Masks for Charity Second European Chamber Ball in Shanghai in Saturday, May 27, the European Chamber held its Second Annual Ball in Shanghai. The event took place at the Grand Hyatt Hotel, gathering a crowd of over 500 high-profile participants, including representatives from the European Chamber Executive Committee and the Delegation of the European Commission in China.

The evening kicked off with a lively cocktail reception, where guests had the chance to buy masks in aid of charity. The theme of the event was "Carnival" and attendees showed great appreciation for the masks featuring the European colours and logo. The proceeds collected from mask sales amounted to RMB8,736. This will benefit the charity "Loving Heart Association", a program providing grants to Chinese university students working on CSR projects. The Ball also engaged in a second charity initiative which raised RMB63,250. This was donated to the Shanghai Charity Foundation to supply free lunches for one year to 80 poor students in the rural area south of Shanghai.

Besides the great achievements in terms of charity, the dinner and the eclectic entertainment program also proved to be a great success. Those present enjoyed a large buffet including European, Chinese and Japanese cuisine. The repertoire of music ranged from traditional European ballroom dance to South American rhythms, to pop and rock music. The dance floor was never empty with all attendees bopping, swaying and twirling to the program performed by the 17-piece orchestra.

During the intervals, a show from Sichuan artists and an exciting lucky draw took place. First, traditional dancers, acrobats, Shaolins and mask-men captivated the audience. Later on, the lucky draw followed, with winners receiving prizes such as return tickets to Europe, hotel stays in China and outfits for the football world cup, just to mention a few.

The success of the event was largely due to the kind support of our 30 sponsors. We would like to thank once again our Gold Sponsor, Bosch, our Silver Sponsors, Alcatel, Arcelor, Fortis, Metro, Philips and PSA Peugeot Citroen, as well as our Bronze Sponsors, Adidas, Bekaert, Getronics, KPMG, Messer, Siemens, Taylor Wessing, WhichProperty and Price Waterhouse Coopers.

A special thanks also to our media sponsors: Shanghai Daily (Gold Sponsor), City Weekend and China International Business (Silver Sponsors), as well as to our lucky draw sponsors: Austrian Airlines, Lufthansa Airlines, Biche de Bere, Sofitel Jin Jiang Oriental Pudong, Sofitel Boao, Adidas, Kempinski Hotel Chengdu, M on the Bund and Dragonfly.

We also wish to thank Pernod Ricard and Pieroth for sponsoring beverages, and Imos for sponsoring the event management. We acknowledge the valuable input from the Ball Committee too. Mr Adams, Mr Koppitz, Ms Yen and Mrs Yi gave us invaluable help throughout the preparation providing direction, ideas and suggestions. Once again, our sincere thanks to them too.

Photos for the event are available from the office of the European Chamber in Shanghai.

Chamber thanks Shanghai Daily and Bosch - gold sponsors of the European Ball

Launched by the Wenhui-Xinmin United Press Group on October, 1st, 1999, Shanghai Daily was the first English-language newspaper in Shanghai and the Yangtze River Delta. Today, the Shanghai Daily represents the main news source for the expatriate and modern Chinese community. With its focus on business, the Shanghai Daily functions as a bridge between the international and local Chinese issues. The daily newspaper is focused on serving as a portal for information on government policies and the investment environment in the Yangtze Delta region.

Throughout the years, Shanghai Daily has dedicated itself to building partnerships with the business and diplomatic community to further enhance and support the Chinese-expatriate community relationship. The existence of these partnerships is the fruit of careful nurturing, attention to detail and most importantly, long-lasting friendships. The involvement in charitable causes as well as community-oriented events, like the European Ball, has been a priority for Shanghai Daily since its first publication in 1999.

As we know, Shanghai has been a cosmopolitan city since the early 20th century. The memories of its dazzling past and the tempting promises of a brilliant future are palpable in present-day Shanghai, which astonishes everyone with its fast changing skyline and ever vibrant city life. Shanghai Daily knows Shanghai, and covers Shanghai daily.

About Bosch in China

Bosch founded its first trading office in China as early as 1909. In 1926, the first car service workshop opened in Shanghai. Today, all of the Bosch business sectors are present in China: Automotive and Industrial Technology, Consumer Goods and Building Technology. The company operates via a holding company in Shanghai, with 14 subsidiaries, six joint ventures, and six trading companies. The 2005 consolidated sales in China reached EUR1 billion, which represents a 35 percent increase compared to the previous year. Non-consolidated entities included, Bosch China achieved sales of EUR1.2 billion in 2005, a 15 percent increase from 2004. By 2005, Bosch had invested around EUR620 million in the establishment and expansion of its Chinese activities. In the past five years alone, the number of Bosch manufacturing facilities there has doubled, from ten to 20.

In China over 14,000 Bosch employees follow Bosch's "3S principle" - Sicher (safe), Sauber (clean), Sparsam (economical) - and are committed to bringing to the Chinese customers the latest technology as well as the most reliable services to help the Chinese people improve their quality of life. Innovation applied to environmental protection has been a corporate principle of the Bosch Group since 1973.

About Bosch Group

The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In the fiscal year 2005, some 251,000 associates generated sales of EUR41.5 billion. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as "Workshop for Precision Mechanics and Electrical Engineering," the Bosch Group today comprises a manufacturing, sales and after-sales service network of more than 280 subsidiaries and more than 12,000 Bosch service centres in over 140 countries.

The special ownership structure of the Bosch Group guarantees its financial independence and entrepreneurial freedom. It makes it possible for the company to undertake significant up-front investments in the safeguarding of its future, as well as to do justice to its social responsibility in a manner reflective of the spirit and will of its founder. The charitable foundation Robert Bosch Stiftung holds 92 percent of the shares of Robert Bosch GmbH. The entrepreneurial ownership functions are carried out by Robert Bosch Industrietreuhand KG.

For more information on Bosch, please visit www.bosch.com.cn.