Category Archives: China

Building a Strong Platform

China Daily Editor’s note

As a German federally-owned enterprise, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a global service provider in international cooperation and professional training for sustainable development. GIZ operates in 130 countries with 17,000 staff members worldwide and provides policy advice, knowledge transfer, capacity building and organisational development support in areas where German know-how is world-leading.

GIZ has more than three decades of experience in cooperation with China, and 28 years with Northeast China. What changes happened in Shenyang over the past decades? What are the main achievements of the cooperation between Germany and Shenyang? Helmut Schönleber, Programme Director of GIZ, shares his views with China Daily.

China Daily - European Weekly - April 11 - Page 17 - Building a Strong Platform
China Daily – European Weekly – April 11 – Page 17 – Building a Strong Platform

Q: What role does GIZ play in promoting the cooperation between Germany and Shenyang? What are the main achievements?

Commissioned by the German Federal Ministry of Economic Co-operation and Development, GIZ launched projects in China since 1982. We began our first project in Northeast China in 1986, a Training Centre for Welding in Harbin. Just a few years later, we started to support the Liaoning Vocational and Technical Education Research Centre in Shenyang, and implemented our regional projects from our Shenyang Office ever since.

In the Liaoning Employment Promotion and Training Programme, we worked together with our Chinese partners on improving the labour market structure, supported highly skilled talent training, provided training for business start-ups, and initiated a Public-Private Cooperation Project between BMW-Brilliance and vocational schools in Shenyang. In total, we held more than 60 symposiums and trainings with over 2,500 participants.

In 2011, we started to cooperate with Development and Reform Commissions in a programme to support the new State Council strategy on integration and coordination of economic development in the Northeast. The programme achieved a good improvement in cooperation between provincial stakeholders, and contributed to an impulse on German business contacts with Northeast China.

In our projects, we arranged many mutual visits of German and Shenyang officials, experts, and entrepreneurs to build new partnerships. Germany established a Consulate General in Shenyang, and German Lufthansa Airlines connected Frankfurt and Shenyang with a non-stop flight, starting in 2012.

Q: Why are German enterprises interested in investing in Shenyang?

Germany and Northeast China are similar in climate and in the character and business habits of our people, such as seeking excellence in profession. More and more Germans know about the economic development of the Shenyang Metropolitan Area as a hub to reach all of Northeast Asia. When we did research for our “China Liaoning Business Guide”, we even found out that Liaoning was the fastest growing sub-national region in the world, far ahead of Ile-de-France, Greater London, California, Tokyo-to or Bavaria. Both the matching character of people and the amazing growth opportunities are important for attracting German enterprises.

The cooperation between Germany and Shenyang initially focused on big enterprises such as BMW and Brilliance, but the centre of attention is now shifting to small and medium enterprises. They are concerned with demand and supply, the location of customers and competitors, and the political environment when selecting their location for investment.

Q: What factors will German investors consider if they want to invest in Shenyang?

Aside from industry-specific key factors, German companies consider investing here due to the national Shenyang Metro development plan and the preferential policies expected to be applied. Compared to other locations, the Shenyang workforce has a higher level of professional training, but there is still much room for improvement. The city and the provincial government seem to pay attention to provide quality human resources for foreign enterprises.

Q: What’s your suggestion for companies in Shenyang on attracting German partners?

Firstly, German enterprises like to cooperate with foreign partners in the same field of operations. So, Shenyang enterprises should get to know German enterprises in their specific market niche.

Secondly, German companies like partners who apply a similar work attitude as they do. They like precision, specialization, efficiency, reliability, honesty, and openness. Shenyang enterprises with those characteristics will more easily succeed in finding German partners.

It is one of the objectives in our Northeast Programme to promote economic cooperation between enterprises of our two countries. Within our project, over 200 north-eastern enterprises will build cooperation with Germany. We will provide entrepreneurs of Shenyang the opportunity to meet German entrepreneurs. It will be up to them to turn these opportunities into successful cooperation.

Q: In your opinion, what needs to be improved in Shenyang?

Foreign enterprises need foreign people. I suggest Shenyang to pay more attention to providing proper services for these people, such as more international schools for their children, international food and entertainment, and convenient public transportation. Foreigners and Chinese alike also love clean air, so try to improve air quality.

Foreign enterprises also need a strong vocational training system trimmed to their specific needs. German enterprises consider their long-term development more than others, so they require the availability of talents they need in 10 or 20 years.

Shenyang has been looking at the experience of the German Ruhr Area, and adopted some of the lessons learnt. I think there is still much more to be exchanged. Why not intensify the twinning between Shenyang and Düsseldorf and between Liaoning and Baden-Württemberg? We at GIZ will be happy to assist in all these endeavours.

The Shenyoungsters

I like to call the people of Shenyang “Shenyoungsters”. First, they are young compared with the people of European cities, statistically ten years younger than the average age of Germany. You will notice this when you go shopping at one of the malls or pedestrian zones of Shenyang: smiling at you will be mostly tall and pretty girls in their twenties (or at least looking as such) and smart trim young men. Second, their city has been going through an amazing rejuvenation since I first visited in 1985.

In 1985, I was a postgraduate scholarship student at Renmin University of China in Beijing, researching management reforms in the shipbuilding industry of China. The Dean of Economic History, Professor Sun Jian, guided me during an excursion to major shipyards, and our last stop was Dalian Shipyard in Liaoning province, the yard that built the largest ships of China.

At a time when men and women alike were wearing a blue or green Mao suit, when streets were jammed not with cars but with bicycles, when people addressed each other “comrade”, Dalian was a buzzing and relatively westernized city with business and modernization in the air. We interviewed Director Wang Youwei who had massively expanded the Shipyard and actually spoke some German. Afterwards, we took a train from Dalian back to Beijing, with a one-night stopover in Shenyang.

I expected Shenyang to be even more modern and globalized than Dalian, because Dalian was just a so-called “open” port city in Liaoning, while Shenyang was the provincial capital and seat of the government. But on my first visit, Shenyang disappointed me very much. My first impression of Shenyang was that of a huge village in the middle of early industrialization. Even the faces of people seemed dusty. At the time, I saw no reason to ever come back.

And I didn’t, for eleven years. In 1996, I was appointed coordinator of a Sino-German project to support chambers of industry and commerce. We considered the Liaoning chamber to be one of our key partners, main reason for my second visit to Shenyang. Now this Shenyang was quite different from the one of a decade before! There were international hotels, pubs with German beer, many entrepreneurs full of vigour and eager to cooperate with Europe. I met some wonderful people, such as Li Yingzhang of the provincial chamber, descendant of a “capitalist family” whose father had donated the family wealth to the Party in the early 1950s, or Yang Guanxing with a similar background, Chairman of the chamber today. People in general were friendly, especially to Germans, and not as intrusive as elsewhere. Many of my best friends in Shenyang today are friends I met at that time.

In the later 1990s and 2000s, I visited Shenyang many times and witnessed her progress. I moved to live there in 2008, to head the GIZ Shenyang Office and the GIZ LEPT Programme. A year later, Shenyang expanded the airport freeway to eight lanes and became host of “Germany and China – Together in Motion” with some of the high-level events arranged by GIZ. Shenyang built her first subway line, which was opened on the same day Governor Chen Zhenggao honoured me and some other foreign experts with the Liaoning Friendship Award. Shenyang opened a new, large international airport and hosted the National Athletic Games. I had to move back to Beijing, but still consider Shenyang my second home after Germany. My Shenyoungster friends, young or old, are the ones I can trust, rely upon, and both have fun and do serious business with.

China Daily - European Weekly - April 11 - Page 17 - Shenyoungsters
China Daily – European Weekly – April 11 – Page 17 – Shenyoungsters

Helmut Schönleber

Symposium on Professional Education in Anhui

The Role of Chambers of Commerce in Vocational Training

China’s Anhui General Chamber of Commerce organized a Sino-German Symposium on Vocational Training on December 12 and 13, 2007 in cooperation with the Sino-German SME Project and the Hefei College of Finance and Economics. More than 50 owners and managers of private training institutions and other educational experts from the whole province participated in the event. After an introduction by Vice Presidents Cao Jianhua and Wu Chenggui, the Head of Programme Management of the German SEQUA gGmbH Dr. Ralf Meier, explained in his presentation the German dual system and the important role of chambers of commerce and industry as well as chambers of skilled crafts in coordination and administration of vocational training.

Presentation by Dr. Ralf MeierProf. Chen Zhulin of Shanghai’s Tongji-University explained possibilities of applying the German dual system in China. Prof. Su Yan (Hefei Institute of Vocational Training), Prof. Zeng Xianghong (China Computer Science Vocational School), Huang Bangduo (Tongyong Technology School) and Fan Shenping (Anhui Bureau of Labor and Social Security) contributed with their speeches and presentations to a complete overview on the current discussion about improving and modernizing their country’s vocational training system. Their viewpoints and the possible future role of chambers in vocational training were then actively discussed in small groups.

New SchoolDuring his visit of two private schools in the provincial capital of Hefei before the symposium, Dr. Ralf Meier obtained deeper insights into the current situation of vocational education in China. He explained that he was very impressed by the high organizational level of the new private schools. For example, the Hefei College of Finance and Economics just started operations in 2006 and already admitted over 7000 students within less than one year. In discussions with the top management of the schools, he shared his opinion and provided valuable advice in regard to their further development strategy. The students vividly expressed their appreciation of Meier’s visit.

Discussion with Dr. Ralf Meier
Discussion with Dr. Ralf Meier

Chamber Management Workshop

Anhui Chamber Administrators Discuss Management Strategies

Group PhotoAbout 40 general secretaries and chiefs of administration of the prefecture and county chambers in Anhui Province met on December 10 and 11, 2007 in Hefei for a workshop on management and services of chambers of commerce. President Li Weihua welcomed all participants and the German experts Dr. Ralf Meier and Helmut Schoenleber of SEQUA, who reported on international best practice in chamber management and work quality standards. All modules of the training program were provided to the Chinese partners. GTZ and SEQUA supported the event within the Sino-German SME Promotion Program.

Workshop for New Chamber Vice Presidents

Anhui Leadership Training

Workshop SessionThe Anhui General Chamber of Commerce (AHGCC) organized the first training workshop for entrepreneurs who were recently elected vice-presidents of all prefectural chambers in the province. The workshop took place on November 23 and 24, 2007 in Hefei, the provincial capital, with 70 participants. Anhui Chamber President Li Weihua and Vice Presidents Cao Jianhua, Yan Anyun and Wu Chenggui held keynote speeches during the workshop. Experts Helmut Schoenleber and Zeng Fanyin explained the principles and guidelines of chamber work and leadership in their presentations.

Workshop on CCI Legal Services

China’s New Labor Law and the Law on Arbitration

Workshop SessionAnhui General Chamber of Commerce (AHGCC) organized a workshop with private entrepreneurs to exchange information and opinions on the new Labor Contract Law and the Arbitration Law of China. Nearly 100 entrepreneurs attended the workshop in Hefei on October 29 and 30, 2007. The German development cooperation agencies GTZ and SEQUA supported the event within the Sino-German SME Promotion Program.

Opening SpeechesChamber President Prof. Li Weihua pointed out the impact on labor cost in China that is expected from the new Labor Contract Law, which will come into effect on January 1, 2008. The labor law expert of Anhui University, Dr. Li Kungang provided details on the requirements of the new law and compared it with similar laws of Germany, Japan, France, and the USA. The Secretary General of the Hefei Arbitration Commission, Li Jiale held a presentation on the Arbitration Law and its implementation in Anhui province. Experts and participants discussed the implications of both laws in small groups.

CCI Organizational Structure

First Workshop with New Chamber Leaders

The entire newly elected leadership of Anhui General Chamber of Commerce (AHGCC) actively participated in a workshop on the organizational structure of chambers of commerce which was carried out in the city of Ningguo from October 25 to 27, 2007 with 68 participants from all over the province. GTZ and SEQUA supported the event. Li Weihua, new president of the provincial chamber, explained in his opening speech the organizational and political milestones the new presidium intends to discuss with the prefectural and county chambers as well as the governments on all levels. According to Li, a suitable legal framework needs to be created for the work of the chambers.

Opening Speeches
Opening Speeches

First Vice President Cao Jianhua and Vice President Yan Anyun pointed out the growing acknowledgement of the importance of chambers of commerce in representing private sector interests. This role had just been reconfirmed by the recent party congress in Beijing. To master the new tasks, the Anhui Chamber wants to adjust organizational and process structures according to international standards and scientific methods.

Participants
Participants

Chamber Best-Practice Mission to Europe

New CCI Leadership Joins Entrepreneurs’ Delegation

Discussion at SEQUA headquarters
Discussion at SEQUA headquarters

The newly elected leaders of chambers of commerce and industry (CCI) in the Chinese province of Anhui had the opportunity to better understand the daily work of their colleagues in Germany, Austria, Belgium, and France during a fact-finding mission from September 16 to 26, 2007. SEQUA gGmbH organized the mission within the Sino-German SME Project. A number of member entrepreneurs of the Chinese chambers accompanied the elected and full-time leaders.

At Darmstadt CCI, Martin Proba, Sonja Müller and Jens-Uwe Lalk informed the group about CCI sector development policies, using the Automotive Cluster Rhein-Main-Neckar as an example, and about CCI international work, using the China Competence Center of Darmstadt and Frankfurt CCI as the other example.

The group travelled to Bonn on the same day, to learn about chamber models world wide and about the structure and work of the leading German business membership organizations. Dr. Ralf Meier of SEQUA gGmbH presented this introduction. SEQUA shareholders are the Association of German Chambers of Commerce and Industry, the Association of German Chambers of Skilled Crafts, the Federation of German Industry, and the Federation of German Employers Associations. SEQUA implements projects to support capacity building in business membership organizations (BMO) in numerous developing countries.

In Bruxelles, General Manager Wouter Van Gulck of the Belgium Federation of Chambers of Commerce and Industry presented the structure of his chambers. Different from their neighboring countries, Belgian CCI are based on voluntary membership. Van Gulck also provided the opportunity of discussions with representatives of the Bruxelles City Chamber and the Belgian-Chinese Chamber of Commerce. His Chinese guests were surprised to find the economic clout of regional root chambers such as Bruxelles and East Flanders stronger than the national “headquarters”.

Georges Fischer, CCIP
Georges Fischer, CCIP

Following a briefing on the International Chamber of Commerce in Paris by Hélène Kolmodin, Georges Fischer introduced both the World Chambers Federation, and the work, structures and strategies of the Paris City CCI. He also explained the latest developments of a virtual chamber: “CCIP in a de-materialized world”. Delegation leader Yan Anyun found similarities between French and Chinese CCI, both closely linked with the state organs.

Back in Germany, the group visited the largest CCI in number of members, the Munich and Upper Bavaria IHK. Johannes Huber and Christine von Nell provided insights to typical chamber tasks and how to achieve them. They showed examples on the chamber’s facilitating of members’ business contacts with companies abroad – including in China. Huber handed a CD-ROM with an enterprise database “Key Technologies in Bavaria” to each visitor, and encouraged the entrepreneurs from Anhui to take initiative contacting them.

Wirtschaftskammer Tirol PresentationThe mission was completed with an outline of the Austrian chamber structure, provided by Gregor Leitner of the Wirtschaftskammer Tirol in Innsbruck. He explained the organization and legal framework of his CCI as well as some differences to the German CCI: (1) in Austria, “Economic Chambers” include industry, commerce, and skilled crafts; (2) they represent employers’ interests in negotiations with the labor unions on tariff contracts.

The project is preparing a follow-up symposium on CCI management and structure for the new generation of leaders in Anhui, scheduled for December 10 and 11, 2007, in Hefei. Topics will include practical management tools, time management, media relations, quality management, team leadership, and more. Two Anhui workshops on building sectoral chambers and chamber legal services are scheduled in October, 2007.

Statistics: A Key Task of Chambers

Provincial Meeting on Chambers’ Statistics Work

Anhui General Chamber of Commerce organized a workshop with regional chamber statistics specialists on August 15 and 16, 2007 in the provincial capital of Hefei. Chamber president Wang Heling, who is also Vice-Chairman of the Anhui People’s Political Consultative Conference, opened the event on Wednesday, stressing the importance of statistics as one of the core tasks of chamber work. He asked the 46 participants to increase efficiency and reliability in their work by using more consistent and scientific methods.

Dr. Yan Chen
Dr. Yan Chen

Dr. Yan Chen, leader of the Anhui Provincial Economic Commission, held a keynote speech on the latest developments of the private sector in Anhui and its role in the new industrialization strategy of the provincial government. Section leader Gao Bozhou of the Anhui Provincial Statistics Office explained the calculation of private sector data within the GDP, pointed out some definition traps, and gave hints on how to avoid them. Project expert Helmut Schoenleber encouraged the participants to complete and update their membership database as a main source of statistical data about the private sector. The workshop aimed at improving the statistical work of prefectural and county chambers, and was supported by SEQUA and GTZ within the German-Chinese SME Promotion Program.

IT Workshop in Anhui

Chambers’ Web Services for SMEs

IT and website development specialists of the prefecture and county chambers in the Chinese province of Anhui met for a two-day workshop on strategies to improve online services for small and medium-sized enterprises and on the organization of chambers’ IT work in general. The workshop on August 13 and 14, 2007 in the city of Chaohu was organized by the Anhui General Chamber of Commerce with support of SEQUA and GTZ.

Strategies of IT development being discussed.
Strategies of IT development being discussed.

The IT expert of the national chamber ACFIC, Li Shanhai, presented the latest plans and procedural recommendations from Beijing. Internet services of the provincial chamber and plans for their improvement were presented by Zhang Zhihui, head of the IT department. Wang Wei, technical manager of Anhui Anlian Science & Technology Co., Ltd. explained the development of the web-based economy in Anhui province, and project expert Helmut Schönleber informed the 45 participants about organization and quality standards of chamber IT work in Germany as well as international models of BMO support services provided by leading chambers for their institutional member chambers in the regions.