By Dominic Phinn
Three decades of constant and rapid economic growth have made the wave of change taking place in China a focus of worldwide attention. For Chinese and foreign residents alike, these changes are as plain to see in Nanjing as in any other Chinese city.
Fresh building projects contributing to Nanjing's high-rise-dominated skyline, the huge increase in cars and buses coinciding with the disappearance of bicycles, the new shops and glaring billboards advertising the newest Nokia mobile phone, or the most sophisticated foreign fragrance, provide some of the most obvious indications of the transitory nature of China today. However, although these kinds of changes are among the most apparent, they are by no means the biggest.
To mark the milestone of reaching 100 members in Nanjing, The European Chamber has taken a step back and reflected on how the situation in Nanjing has been changed by China's quarter of a century of economic growth:
Infrastructure. There has been an explosion of infrastructural development in Nanjing with a huge increase in the number and size of the city's expressways, rail lines, ports, airports, telecommunications and buildings. The cranes and scaffolding that have become as commonplace in the city as the buildings themselves over the last few decades, have meant that in March 2004 there were 1300 high rise buildings in Nanjing (buildings with 30 stories or more). This growth has continued into 2007 and now the number of buildings which have been completed or approved now count more than 2000.
Nanjing's growth as a city of crucial importance on the Yangzi river delta has created the need for connections between the CBD and the suburbs. This has transformed the city from a city which in 1996 had 357 km of bridges, to one now whose bridges stretch more than 1,239 km.
Foreign trade and investment. By 2006, the amount of foreign investment in Nanjing had reached US$14 billion (?10.7 billion). There are presently 97 projects in Nanjing from 55 Fortune 500 companies. The increase in foreign-invested enterprises in Nanjing has directly contributed to this colossal figure. Whereas in 1996 there were 438 foreign-invested companies in Nanjing, there are now 1,556 in and around the city. The total production capacity of two European Chamber member companies based in Nanjing, LG Phillips and BASF YPC, exceeds 600,000 tonnes.
Standards of living. The increase in foreign trade, largely from European Chamber member companies, now accounts for more than 40 percent of Nanjing's GDP and has contributed to a huge increase in the standard of living and spending power of residents. Take a walk to Xinjiekou in Nanjing's downtown district and it is impossible to ignore when faced with thousands of choices of clothes, music, food, shoes, jewellery and dining. In 1996, the average monthly income of Nanjing's urban residents was less than RMB500 a month. By 2004 it had risen to RMB900. In 2007, the average urban income has exceeded RMB1,600.
The change in lifestyle for foreigners is not so easily measured, but is still plain to see. In 1996 there were only seven restaurants serving Western food. Now, there are endless options for dining, dancing and drinking with countless Western restaurants, caf¨¦s and bars adding to the range of Chinese cuisine and entertainment.
As an exceptionally prosperous city, Nanjing has attracted vast numbers of new residents over the last decade - Chinese nationals leaving their rural hometowns to take advantage of the plentiful work opportunities and city lifestyle available in Nanjing. In 1995, Nanjing had a population of 5.2 million. In 2004, the population has risen to 5.5 million, and has since passed the 6 million mark - an increase of 800,000 in 10 years.
Nanjing, China's traditional capital has, like so many other cities in the Middle Kingdom, undergone a profound transformation over the past quarter-century. However, the continued growth of the economy that continues to be complemented by warmth and welcome from city's people means that although the road ahead may be one that is unpredictable, it will be one that is guaranteed to be exciting, fascinating and enjoyable.
BMW: A responsible corporate citizen in China
The establishment of the BMW AG Beijing Representative Office in April 1994 marked the beginning of the official presence of the BMW Group in the Chinese market. In 2003, the BMW Group set a new milestone in its development in China with the establishment of a production and distribution joint venture - BMW Brilliance Automotive Ltd. In September 2005, the registration of BMW China Automotive Trading Ltd was completed with its headquarters in Beijing. It is a wholly-owned subsidiary in charge of import, sales, marketing, service and all related activities for imported BMW and MINI vehicles.
BMW also has a long-term commitment to social responsibility, including supporting young talent, organising traffic safety training for children, establishing education funds and promoting vocational education.
In January 2006, the "BMW Excellent University Students Award Fund" was established in cooperation with the honourable Soong Ching-Ling Foundation. With this program, BMW will provide a fund of RMB2.5 million over a period of five years to support 500 excellent students from families with less fortunate economic backgrounds.
In April, BMW Brilliance Automotive Ltd signed an agreement with GTZ to jointly launch a series of auto vocational education programmes to promote sustainable development in the Chinese automobile industry.
In June, BMW donated RMB500,000 to set up BMW Warm Heart Libraries in 20 primary schools around Xi'an, Shaanxi province.
On Children's Day, BMW continued its children's traffic safety training program with the "Slowing Down for Children" series of activities in Tianjin and Beijing. In July 2006, BMW Group and Beijing Chinese-German Safe-Driving Technology Development Co., Ltd jointly introduced three traffic safety books: Drivers' Training Pass, Drivers' Handbook and Anna & Paul und Das Geheimnis des Wiesels, a traffic book for children, aimed at disseminating knowledge of traffic safety and strengthening the consciousness of traffic civilisation.
In June 2004 the BMW CleanEnergy Exhibition was opened at the China Science & Technology Museum to introduce hydrogen as a clean energy of the future to the Chinese public.
BMW has established good relationships with a variety of social organizations, including but not limited to the China Charity Federation, Soong Ching-Ling Foundation and Operation Blessing-China, which BMW largely supported last year as a Diamond sponsor at the European Union Chamber of Commerce Charity Dinner. BMW supports individuals as well as organised charities as part of its corporate social responsibility; for example, holding charity sports tournaments for world AIDS awareness.
All of the above illustrate how BMW is actively involved in China's social and economic development as a responsible corporate itizen.
New initiative: We are Chinese companies as well
The German Presidency and EU embassies in China have initiated a campaign aiming to present the achievements of European companies for the benefit of China, such as creation of jobs, training, supporting local infrastructure, research and development, and so on - positive aspects of the presence of European companies in China that merit their being welcomed and treated on an equal footing with domestic companies, with respect to market access, public procurement, technical product specifications and IPR protection.
To this end, a series of events will be organised by chambers of commerce and individual companies. Important aspects are lobbying, invitation of government representatives at local and provincial level, the presentation of products and services, open houses, interactive social events as well as encouraging Chinese employees to speak in favour of "their" companies and contact with the media. Most events will take place outside Beijing.
The first two events have already taken place in Shanghai and Nanjing. However, we still need your support regarding events from companies from the European Union. Modifications and additional ideas are welcome.
If your company is interested in participating in this campaign, please contact Mr Helmut Lueders, Head of the Trade Promotion Office at the German Embassy in Beijing at helmut.lueders@diplo.de or Mr Harm Hindriks, Marketing and Communication Manager at the European Chamber at hhindriks@euccc.com.cn.
The Pearl River Delta HR Working Group
In January 2007, the Pearl River Delta Chapter of the European Union Chamber of Commerce in China started the new Human Resources Working Group with a kick-off meeting in Guangzhou and another in Shenzhen. The Working Group was set in place to provide a platform for companies to share their experiences with others who encounter the similar issues relating to human resources and to identify problems in this sector that inhibits the development of EU companies within Pearl River Delta (PRD) area of China.
The working group has become very popular with our members. The networking among HR managers is growing and discussions are becoming more active. We are pleased to see that the interest of our members in this Working Group, as shown by the fact that they are discussing more openly and that they are keen on networking with participants.
We have already held a Working Group meeting to update and discuss the new draft of China's Employment Contract Law. The meeting also saw discussion and analysis of the possible influence of the legislation on both the employer side and employee side. Other topics, including the individual income tax and development and retention of talent, have also been discussed.
In the upcoming Human Resources Working Group meeting in April, we will talk about salary surveys carried out by HR consulting companies Hewitt and Mercer. European Chamber member companies that have participated in the survey as interviewees will offer an introduction to the survey as well as their opinions as clients.
PRD Networking Cocktail successful
The Pearl River Delta (PRD) Chapter of the European Chamber of Commerce in China hosted its first Networking Cocktail in 2007 and the farewell party for the former general manager and founder of the PRD Chapter, Marco Gasparroni, at "the Mansion" in Guangzhou on February 9.
The Event was attended by high-level guests from the national chambers of commerce and consulates general in Guangzhou and the business community of Guangzhou and neighbouring cities. Participants had the opportunity to chat in a relaxing environment and get to know more about each other.
A wide variety of guests came to join the European Chamber in beginning a new and successful year of communication, networking, and business. The Chairman of the PRD Chapter gave a speech about the good working atmosphere between the European Chamber and the national chambers and thanked Mr Gasparroni for his work to establish the PRD Chapter. During his speech, he also welcomed Ms Francine Hadjisotiriou, the new general manager of the PRD Chapter.
Ms Hadjisotiriou expressed hopes that the year 2007 will be as successful as 2006 for the European Chamber and its members. She promised that the networking event will be followed by a variety of events in Guangzhou and Shenzhen.
With Germany holding the presidency of the European Union, the vice-consul-general from Germany, Ms Jutta Gilbert, delivered a speech at the event. Since Europe will celebrate its 50th anniversary in 2007 (March 25, 2007 marked the 50th anniversary of the signing of the Treaties of Rome), more events and celebratory parties will be organized in 2007.
The PRD Chapter started this year's celebration with this successful Networking Cocktail and is already planning similar events for the future. The PRD Chapter thanks everybody who attended the event and made it a good time for all.