Environment Working Group established in Shanghai

The Shanghai Chapter of the European Chamber has established an Environment Working Group in response to requests from members to have an information and exchange platform on environmental issues. The Environment Working Group has just had its third meeting at the offices of the European Chamber and at this meeting a representative from the Shanghai Environment Protection Bureau gave a very informative and interesting presentation on the three-year environmental action plan for Shanghai. During this meeting, elections were also held to nominate a Chair and Vice Chair in order to give the Working Group more structure. The Chairperson for the Environment Working Group is Mr Frederic Grivel of SCIP Swire SITA Waste Services Co Ltd, and the Vice Chairperson is Mr Frederik Cornu of Bureau Veritas.

Over the past few years, China has developed and implemented a series of regulations and laws to enhance environmental protection, and European businesses have been instrumental in offering services and knowledge in environmental protection. In the 11th Five Year Plan that runs from 2006-2010, the importance of environmental protection has been acknowledged with the government doubling its total expenditure for protecting the environment in the coming five years. The European Chamber is happy to learn that the Chinese authorities have decided to spend so much on improving the environment. Only by building an environmentally friendly society can China sustain its long-term economic progress and the continuous improvement of people's standard of living.

The European Chamber is working to encourage better communication between Chinese regulators and European businesses working in the environmental field through this Working Group. The Environment Working Group also works towards encouraging enforcement of equal treatment between local and non-local players and members will use this WG as a platform for information exchange through the invitation of key speakers to WG meetings. The WG will work to increase the awareness of environmentally friendly best practice and through the WG members will gain a better understanding of how to interpret local laws and regulations.

The agenda of this Environment Working Group in the future will be to:
identify and respond to the interests of working group members understand how the State Environment Protection Agency (SEPA) and the Shanghai Environment Protection Bureau (SEPB) work and to establish a dialogue with the responsible divisions better disseminate information regarding regulations and policies introduced by the authorities
For more information about the Environment Working Group, please contact Ms Derval Usher at dusher@euccc.com.cn

New EU-China programme for managers of SMEs

In July 2006, a new cooperation project was launched - the EU-China Managers Exchange and Training Programme (METP) - designed especially for small and medium enterprises. The METP intends to provide training and internships for 200 Chinese and 200 European managers in China and Europe, respectively, over the coming four years. The first one of five groups of managers is expected to start in early March 2007.

The METP takes up the positive experience gained from the former EU-China Junior Managers Training Programme which provided language training for some 160 European managers between 1999 and 2003.

This programme could not come at a better time to capitalise on the new trading reality. In 2004, the EU became China's largest trading partner and today China is already the EU's second-largest trading partner. The METP is a joint response to the need and interest from both sides. It is implemented by the China Council for the Promotion of International Trade. Total funding from the European Commission and the Chinese Government to the programme will be EUR23 million to cover the following activities:

Training of European managers

European managers will receive seven months of Chinese language training at the University of International Business and Economics in Beijing, attend seminars and workshops on cultural and business issues and undergo a three-month internship to gain work experience in the Chinese environment.

Training of Chinese managers

Chinese managers will take part in a six-week management training at Manchester Metropolitan University Business School, at ESCP-EAP European School of Management in Paris and Turin and at Solvay Business School in Brussels. The training will focus on practical business skills. Subsequently the participants will gain work experience in European companies or organisations through internships and study visits to European institutions or companies.

Intercultural skills training

To prepare the participants for their stay abroad the programme will organise joint intercultural training for both groups in China.

Cooperation between METP and EUCMA

The European and Chinese participants of the project are entitled to join the EU-China Managers Association (EUCMA), the alumni organisation of the Junior Managers Training Programme. This will offer them additional networking opportunities and assistance, that contribute to useful business contacts after the training.

More information on the METP can be found on their website www.metp.net.cn (China) or www.eu-china-metp.eu (EU). Interested companies or individuals can contact the project team by sending an e-mail to info@metp.net.cn or info@eu-china-metp.eu. Companies who wish to participate in the programme can apply for managers to do an internship in their company.

Chamber supports EU-China RoHS dialogue

The EU RoHS directive (Restriction on Hazardous Substances) which came into effect on July 1, 2006 forbids the use of six hazardous substances in electrical and electronic (EE) products exceeding established maximum concentration values. These include lead, mercury, cadmium, hexavalent chromium, poly-brominate biphenyls (PBB) and polybrominated diphenyl ether (PBDE). This legislation affects all EE products placed on the EU market, including products exported to the EU. As a result, exports of Chinese electrical and electronic equipment to the EU, which totalled EUR37.3 billion in 2005 (HS2002-85), are significantly affected.

Following the introduction of the EU RoHS directive, the European Commission, through the EU-Asia Invest II Programme, has funded a project which will provide a series of training workshops aimed at facilitating compliance amongst China-based SMEs. The project is being implemented by the European Union Chamber of Commerce in China, with the support of the British Standards Institution (BSI), the Sustainable Development Association (SDA) and Vlerick Management School. The workshops aim to improve market access for European and Chinese SMEs involved in the manufacturing and supply of electrical and electronic components, by building their awareness and providing practical training on compliance strategies for the RoHS Directive.

With the EU directive recently coming into effect, the Chinese government itself is in the latter stages of developing its own directive, expected to come into force on March 1st, 2007. The requirements and scope of these two legislations will vary; however, for the time being the exact details of the compliance procedures and exemptions in the Chinese RoHS are still to be finalised.

In response to requests from EU industry and the expressed interest of the Chinese authorities, the European Commission (DG Trade in close cooperation with DG Environment, DG Enterprise and Industry) as well as their Chinese counterparts (coordinated by the Chinese Ministry of Commerce) are preparing a bilateral conference on Chinese and European RoHS, which will be implemented as part of the Asia Invest II workshop series. The conference will therefore be organised by the European Chamber, with the EU-China Trade Programme (EUCTP) providing additional support and funding.

The aim of the conference is to provide a platform to discuss and better understand the European and Chinese legislations as well as their compliance requirements. It will also be an opportunity for the European Union authorities to share experiences and discuss issues related to the Chinese legislation with their Chinese counterparts. Follow-up activities are planned aimed at addressing compatibility issues and the reduction of compliance cost on both sides.

Following the conference in Beijing, workshops will be organised in Shanghai on December 7-8 and Guangzhou on December 11-12 that will provide technical assistance to those engaged in the manufacturing of electrical and electronic equipment in complying with the European RoHS Directive, with a particular focus on SMEs.

For more information on the conference and following workshops, please visit www.rohstraining.com.cn.

Mo Yang Minorities Primary School inauguration

A Danish Chamber delegation headed by Verner Hammeken and HE Mr Laurids Mikaelsen, the ambassador of Denmark to China, opened Mo Yang Minorities Primary on September 16, 2006 in Guizhou province. Mo Yang School is the first school built with the funds raised at the 10th DCCC Charity Gala Ball in February 2006. The second Charity Xi Shui School from Gala Ball 2006 is under construction and will have its inauguration in Guizhou province in March 2007. All the teachers and pupils of Mo Yang Minorities Primary School turned out for welcoming the DCCC Delegation with drums, horns and local musical instruments.

The below are excerpts from some highlights of the Mo Yang School opening:

"Hao hao xue xi, tian tian xiang shang" (Study hard and make progress everyday). With a quote from Chairman Mao Zedong, Verner Hammeken concluded his speech on behalf of DCCC.

"For China, Denmark is a faraway country, but China is in Denmark, there are Chinese businessmen and students in Denmark; For Denmark, China is a faraway country, but Denmark is in China, we have cooperation in various sectors, such as energy, clothes, shoes, etc. We are learning China, like we and the Danish businessmen who are here today and also those who have never been here in China, like Hans Christian Andersen. He wrote about China from his fantasy."

- Speech by HE Mr Laurids Mikaelsen

"I wish the children, our future, the Danish businessmen in China, the local authorities all the best"

- Mr Mikaelsen

The ceremony was a moving event for the DCCC participants, the Mo Yang School and the local authorities. A video will be made out of this event and shared at the 2007 Danish Gala Ball.

Become a member of the European Chamber!

Why join the European Chamber?

With over 1,100 Corporate Memberships nationally, the European Chamber is developing into one of the principal business organisations in China. Recent successful events in September with Minister Bo Xilai and the upcoming visit of Commissioner Mandelson demonstrate the ever-widening scope of the Chamber's work. The European Chamber is also at the forefront of the AsiaInvest Forum being held this month in Chengdu and will provide extensive support for RoHS training for companies based in China. With the input of the 31 Working Groups, the 2006/7 Position Paper was launched earlier this year, reflecting the business interests and lobbying issues of European industry in China. This has already been presented to the relevant authorities in China and Europe. The seminar platform continues to provide business people with up-to-date and relevant information about the evolving business environment in China.

Special membership deal from November

The European Chamber is delighted to announce that membership for 2007 will begin in November 2006! Companies joining this or next month will pay just a 12-month fee until the end of 2007. This is an excellent opportunity for companies to get even more value out of membership with the Chamber.

How can I join?

For more information about membership please contact euccc@euccc.com.cn or call (10) 6462 2066. You can also check out the website (www.europeanchamber.com.cn) for more specific details on the office closest to you. Representatives from any of our seven chapters throughout the country will be happy to meet with you and give you more information about how the Chamber can be valuable to your work in China.

Upcoming Events

Shanghai

Legal WG Seminar on Arbitration
November 3 8:30 am, Hilton Shanghai
Price: Members 200RMB, Non-Members 400RMB
The European Chamber in Shanghai is delighted to invite you to our next Legal Working Group Seminar. The seminar will give an introduction to arbitration in China-related transactions and explain the role of the ICC International Court of Arbitration. Nadia Darwazeh, counsel in O'Melveny's Shanghai office will speak about "Arbitration for China-related Transaction, Challenges and Opportunities". Dr.Robert Briner, Honorary Chairman of the ICC International Court of Arbitration will discuss "The Role of ICC International Court of Arbitration in International Transactions".


Legal WG Seminar on the New Enterprise Bankruptcy Law
November 16
8:30 am, venue tbc
Price: Members 150 RMB, Non-Members 300 RMB
On August 27, 2006 China passed a new Enterprise Bankruptcy Law after more than a decade's preparation and debate. This law is said to give tougher backing to creditors' claims on insolvent companies and create a formal corporate-bankruptcy process. John Grobowski, Partner at Baker & McKenzie LLP, Shanghai will give us an overview of the major issues of the new law and its impact on foreign companies operating in China.

Chengdu

Dinner with European Union Trade Commissioner Mandelson
November 8, Chengdu
Time & Venue TBC
The European Chamber is pleased to welcome you to join us in a dinner with EU Trade Commissioner Mandelson. Commissioner Mandelson will be in Chengdu to attend the EU China Partenariat. For more information, please contact Ms Zen Chen at our Chengdu office. Tel: +86 (28) 8671 0577, email: chengdu@euccc.com.cn.


Suzhou

Suzhou InterChamber Mixer
November 15
6:30 pm, Sofitel Suzhou
Price: Members and Non-Members 190 RMB
The European Chamber together with other 15 Chambers invites you to a social mixer in Suzhou. Join the foreign community in Suzhou and enjoy a delicious selection of canap¨¦s as well as free flow of drinks and mingle with members of other business communities!

DCCC EVENTS

The CCP congress and Corporate Strategies

Time: 8:00 am 17th November
Venue: Radisson SAS Hotel
Price: Members: 100 RMB, Non-Members: 150RMB.


The 17th Chinese Communist Party (CCP) Congress is still more than a year away, but the politicking is well underway and is already having a subtle-but-profound impact on China's policymaking. How will all this influence the country's business environment? What are the key risks facing Nordic firms-or for that matter, any MNC-in China during the next 12 months? How can intrepid corporate executives take advantage of any unusual opportunities amid the uncertainties?