The new Afghanistan Chamber of Commerce and Industries (ACCI) is preparing the largest ever business community elections in the country. Mohammad Qurban Haqjo, CEO of the national chamber, explained in a meeting on June 6, 2008, that all registered members in 21 provinces will be invited to vote for their delegates to the national ACCI High Council in July, 2008. Voters include members of the former Afghan Chamber of Commerce and Industries (ACCI), the former Afghan International Chamber of Commerce (AICC), and a large number of business people who were previously not affiliated with either chamber. The former chambers had decided in a March 2008 Joint Assembly to merge both organizations and hold elections as soon as possible.

The national and all provincial chambers of commerce are currently validating their membership lists and accepting new membership applications. Voter lists are being prepared. According to ACCI Membership Director Fraidoon Watanyar, more than 10,000 voters were already registered by June 6, 2008. At the current rate of membership applications and verification, about 12,000 members are expected to cast their votes in July and elect more than 120 delegates for the national High Council. The High Council will then convene in Kabul in August to elect the new Board of Directors of ACCI.

Key objective of the merger and the elections is the creation of an ACCI High Council that is accepted and supported by a strong majority of the Afghan business community as their leading representative organ, and that is also able to build opinions and make majority decisions internally, to then unanimously advocate these decisions externally.

The ACCI Board of Directors has established an election schedule for the economically active provinces, as well as procedures for the nomination of candidates and the actual voting. Nomination and elections will be free, fair, and transparent. The event will be a unique opportunity to introduce democratic procedures many members are not yet familiar with.

The Lao National Chamber of Commerce and Industry (LNCCI) and UNIDO held two workshops on income generation of business membership organizations (BMOs) from April 25 through May 2, 2008. The workshops in the capital Vientiane and in Northern Laos’ Oudomxay Province were part of a training series on chamber and association management within the joint UNIDO-UNDP project “Promoting Private Sector Development Through Strengthening of Lao Chambers of Commerce and Industry and Business Associations” in the Lao People’s Democratic Republic.

The LNCCI Board of Directors met in Oudomxay for an internal meeting before opening the first workshop on April 25. President Kissana Vongsay, Vice Presidents Onesy Boutsivongsad, Dr. Sananh Chounlamany, Chantao Pathammavong, Sisanouk Sisombat, Southone Sirisack, Oudet Souvannavong, and Secretary General Khanthavong Dalavong participated in the discussion of income generation potential and new strategies of LNCCI, provincial CCIs, and the other BMOs. Deputy Secretary General Sengdavone Bangolesengdet explained the principles of decision-making and political advocacy of the business community within a strong and united BMO system. CIM Expert Dr. Ramon Bruesseler presented a status report on LNCCI strategy development in 2008. UNIDO Expert Helmut Schoenleber provided background information on international best practice in demand-oriented services for members, the structure of fair membership and service fees, and the optimization of other income.

Oudomxay province had been selected for this first workshop of the series, because the provincial Chamber of Commerce and Industry is one of the youngest in the country and urgently needs support in capacity building and management. The provincial government underlined its strong interest in the new chamber: Oudomxay Governor Bounphone Buttanavong and Vice Governor Somsy Saybounhuang joined the group after the workshop and promised their continued support for the business community and its chamber.

Leaders and financial managers of LNCCI, five provincial chambers, and seven national business associations participated in the second workshop in Vientiane from April 28 through May 2. Trainers in this workshop were LNCCI Deputy Secretary General Sengdavone Bangolesengdet, accounting and auditing consultant Phonexay Sanasin, and UNIDO’s expert on business membership organizations, Helmut Schoenleber.

Nearly 500 top business community representatives from all provinces of Afghanistan assembled in Kabul on March 9th, 2008, to set a strong signal for private sector development by establishing a new, united Afghanistan Chamber of Commerce and Industries (new ACCI). They formally confirmed the merger of the two former chambers, the Afghan Chamber of Commerce and Industries (former ACCI) and the Afghanistan International Chamber of Commerce (former AICC).

The assembly, chaired by Hakim Malyar, also discussed and agreed on a transitional by-law. The delegates of the private sector elected a temporary Board of Elders to decide on the transitional leadership of the new chamber until democratic elections have been carried out in all provinces. The elders decided to ask the complete Chamber Merger Committee (CMC), that had prepared the assembly, to act as Transitional Board of Directors of the new ACCI. Mahmood Karzai, Chairman of the CMC, will be the Transitional President, and CMC Head of Secretariat, Mohammad Qurban Haqjo, will be the Transitional Chief Executive Officer.

Minister of Commerce and Industry, Dr. Mir Mohammad Amin Farhang, expressed his full support for the new ACCI, but also promised that the government will not get involved in its internal affairs. “The new chamber must represent the democratic decisions of the business community vis-a-vis the public, foreign organizations and businesses, and also vis-a-vis the government”, he told the entrepreneurs. “This chamber is your own house!” He also suggested for the new ACCI to join international chamber organizations such as the Islamic Chambers of Commerce and Industry as soon as possible.

The ambassadors of Germany, Dr. Hans-Ulrich Seidt, and of Saudi-Arabia, Said Ghorm Malhan, were honorable guests of the assembly. The USA and Germany have been supporting a strong, efficient, and representative chamber system in Afghanistan for several years. Their development agencies were represented by Zdravko Sami of USAID and Shafic Gawhari of GTZ. The presidents of Afghanistan Investment Support Agency, Omar Zakhilwal, and of the Export Promotion Agency of Afghanistan, Suleman Fatimie, representatives of international organizations and of the national and international media also participated as observers in the meeting.

The assembly was a joint session of all elected delegates of the former ACCI and the former AICC, extended by numerous well-known private sector representatives who were previously not affiliated with either chamber. New ACCI President Karzai appreciated the strong engagement of the entire business community. He explained that the CMC was surprised by the enormous interest in the new chamber. “Until the last day before the assembly session, we kept receiving requests of business groups and famous entrepreneurs of all provinces to be included in the new chamber. Of course we are very happy about their interest, and despite our difficulty to organize these last-minute changes, we did not want to turn them down.” In a controversial discussion, regional and sectoral interest groups within the business community had voiced their concern about appropriate representation in the first regularly elected leadership organs of the new chamber.

The assembly unanimously passed a resolution requesting the transfer of all property owned by the former chambers to the new ACCI. The former ACCI had used contributions of the business community over decades to acquire considerable assets, which have not yet been returned by the government. The new Board of Directors plans to discuss the issue with Afghanistan’s President Hamid Karzai within a few days.

The transitional leadership of the new chamber plans to establish election rules and to organize democratic elections for the regional chambers’ boards of directors as soon as possible. Transitional CEO Haqjo confirmed in an interview that he strives to complete the merger of organizational structures and full-time staff of the former ACCI and the former AICC before the first regularly elected Board of Directors takes office. He appealed to the international donor community to continue supporting this effort.

The Prime Minister of the Lao People’s Democratic Republic, Bouasone Bouphanvanh, joined more than 350 top representatives of the private business community in their discussion about a new legal framework for the business membership organizations (BMOs) of the country. The discussion was key topic of the 2008 Annual Congress of the Lao National Chamber of Commerce and Industry (LNCCI) on February 1, 2008 in Vientiane. By participating for the first time in a LNCCI Annual Congress, Bouasone underlined the government’s strong consideration for a more rational and effective BMO system under leadership of LNCCI. The event was a rare opportunity for entrepreneurs and business leaders to voice their concerns about specific obstacles to the development of their BMOs, as the Prime Minister listened in the afternoon session to the presidents of LNCCI, twelve provincial chambers of commerce and industry, and sixteen sector associations, before presenting his own viewpoints and recommendations.

LNCCI President Kissana Vongsay pointed out that the Ministry of Commerce and Industry (MOC) already provided his chamber an unprecedented opportunity by authorizing it to draft a new decree on BMOs: “While all previous laws, decrees, and regulations were written by the Lao government, the BMO Decree will be the first to be officially suggested by a non-government organization.” Building a strong, united, democratic, sustainable, and financially independent system of political advocacy for the business community and of high-quality services for the members will be the main objectives of the decree, said Kissana. The improvement of the legal framework for BMOs in the Lao PDR is one objective of the UNIDO/UNDP joint project on private sector development.

Vice President Onesy Boutsyvongsack presented the LNCCI Board of Directors’ current considerations about the draft’s detailed provisions, and invited all participants to comment. In the morning session of the Annual Congress, the LNCCI members unanimously approved the 2007 annual action report presented by President Kissana, the financial report presented by Vice President and Treasurer Daovone Phachanthavong, and the 2008 action plan presented by Vice President Dr. Sananh Chounlamany. Secretary General Khanthavong Dalavong facilitated the discussions.

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, Dr. Ralf Meier, Head of Program Management of the German SEQUA gGmbH 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.

Prof. 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.
During 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.

About 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.

The 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.

One of the most prominent representatives of the Afghanistan business community was among over 70 people killed in a bomb attack in Baghlan on November 6, 2007. Hajji Muhamad Arif Zarif, Chairman of the Afghanistan Chamber Reform Commission and Member of the National Parliament, was laid to rest in a state ceremony on November 9 in Kabul. Arif Zarif was also Chairman of the parliamentary Economics Committee and owner of several private enterprises. Six of ten members of the Economics Committee were killed in the attack.

The Chamber Reform Commission (CRC), the Afghanistan Chamber of Commerce and Industry (ACCI), the Afghanistan International Chamber of Commerce (AICC), the Chamber Merger Committee (CMC), and domestic as well as international business membership organizations grieve the loss of an outstanding personality who was strongly yet patiently engaged in uniting and developing the private sector of his country. Arif Zarif devoted much of his time and energy to promote an integrated and independent chamber system for Afghanistan, and he gave his life in a mission to increase public awareness of private sector development projects. All who are left behind are committed to double efforts in achieving his goals and following his visions.

Peace be to his departed spirit!

The Lao National Chamber of Commerce and Industry (LNCCI) hosted a top-level meeting of the executive committee and provincial chambers, as well as other business associations, on November 2, 2007 in Vientiane. The president of the LNCCI, Kissana Vongsay, said the executive committee discussed plans to improve capacity building of the chamber for the year 2008, to ensure that the entrepreneurs groups and associations benefited as much as possible. He said government officials should work to improve the business environment for entrepreneurs, and help resolve government – related problems of business owners, to ensure that the private sector can help the country’s economic progress. Strengthening the business community in Laos will be the key issue of LNCCI in the year 2008, who is committed to take leadership in business and employers representation.

The Chamber of Commerce and Industry will also play a part in increasing local incomes, as part of the national socio-economic development process. New entrepreneurs will have the chance to learn more about how to improve their businesses and to ensure they can export their products to international markets, on the same level as experienced entrepreneurs. To implement the new plans, the executive committee will ensure that the national chamber is enshrined in law, rather than being the subject of a Prime Minister Decree. Since 1989, when the Lao National Chamber was established, the number of members has been increasing to 1075, including 25 business associations and 9 provincial chambers. Still it needs to improve services to the members, such as business information, and to attract new members in all business sectors in Laos.

At the closing ceremony, Minister of Industry and Commerce, Dr. Nam Viyaket, provided comments on the government’s point of view on the promotion of the business community’s development. According to Viyaket, the government fully supports the movement of the Lao National Chamber of Commerce and Industry as the leader of the business community in Laos. The event was supported by UNIDO and UNDP who were represented by Dr. Kheungkham Keonuchan and Stephane Vigie.

Anhui 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.

Chamber 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.

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.

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.

A joint committee of the Afghanistan Chamber of Commerce and Industry (ACCI) and the Afghanistan International Chamber of Commerce (AICC) has, in a Kabul meeting on October 7, 2007, paved way for a merger between the two organizations to form a new, stronger, and united national chamber of commerce to represent the entire private sector of the country. Their elected top leaders, President Dr. Ghulam Mohammad Yaylaqi of ACCI and Chairman Azarakhsh Hafizi of AICC, signed a joint declaration on the merger at the meeting.

Minister of Commerce and Industry, Dr. Amin Farhang, expressed his full support and his appreciation of a united voice for the private sector. “This will significantly speed up the economic progress of our country and reduce confusion among private entrepreneurs and traders”, he said at a press conference. “A modern, member-oriented chamber can play an important role in services for the enterprises and influence political decision-making. Of course, it also makes our life in the government easier, if we only need to talk to one partner who represents the balanced interest of the private sector.” According to Farhang, a new, liberal chamber law can now be ratified much faster than without the merger.

Two main sponsors of economic development in Afghanistan, USAID and GTZ, support the concept of the merger of the two chambers. They were represented by the Director of the Office Economic Growth, USAID, Donnie Harrington, and the Acting Head of Sustainable Economic Development Program (NaWi) of GTZ, Shafic Gawhari. More than 70 national and international journalists, leading representatives of both chambers, private entrepreneurs, politicians, and members of the international community in Kabul observed the event.

The Chairman of the recently established Chamber Merger Committee, Mahmood Karzai, brother of Afghanistan’s President Hamid Karzai, declared that the CMC will work towards ensuring that the combined chamber introduces best practices such as a democratic election process, by-laws giving power to the members, external auditor to audit accounts, and a democratic and accountable board.

He also provided further details on the decisions of the meeting. “We expect the first session of the founding assembly for the new chamber to take place as soon as November 24th. During that session, we want private sector representatives of all regions and sectors to discuss and adopt our new by-laws and to elect the new leadership. The new chamber can then start full operations before the end of the year.” Karzai had just been elected Chairman of the Committee on October 4th, with Khan Jan Alokozai and Azarakhsh Hafizi as Vice Chairmen and Mohammad Haqjo as Head of Secretariat.

Responding to a question of the Ariana TV correspondent, Chamber Reform Commission Chairman Arif Zarif explained that the restructuring of the chamber’s full-time staff organization will be a major task of the new CMC. “A socially acceptable solution for the reduction of employees must be found,” said Zarif who is also Chairman of the Economics Committee of the National Assembly, Afghanistan’s parliament.

Joint Declaration on Merger

With the objective to establish a strong and united business membership organization representing the entire private sector of Afghanistan, and to build a platform for the self-administration of the business community of Afghanistan, the leading elected organs of the Afghanistan Chamber of Commerce and Industry (ACCI) and the Afghanistan International Chamber of Commerce (AICC) have, after careful consideration and friendly negotiations and in close consultations with the Ministry of Commerce and Industry, decided to merge both organizations into one national Chamber of Commerce and Industry of Afghanistan.

Under guidance of the Chamber Reform Commission (CRC), ACCI and AICC have established a Chamber Merger Committee (CMC) to prepare and implement the merger process. The CMC is composed of seven leading representatives of ACCI, seven leading representatives of AICC, and one impartial Head of Secretariat.

The CMC has unanimously elected Mr. Mahmood Karzai as its Chairman, Mr. Khan Jan Alokozai and Mr. Azarakhsh Hafizi as its Vice Chairmen, and Mr. Mohammad Haqjo as its Head of Secretariat.

Kabul, October 7, 2007

Dr. Ghulam Mohammad Yaylaqi
President of ACCI

Azarakhsh Hafizi
Chairman of AICC

Confirmed:

Dr. Amin Farhang
Minister of Commerce and Industry

Arif Zarif
Chairman of CRC

Press Release in PDF Format

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 Association of German Chambers of Commerce and Industry, Association of German Chambers of Skilled Crafts, der Federation of German Industry, and 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”.

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.

The 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.

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, 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 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.
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.

In cooperation with the German development agency GTZ, the Anhui Provincial Economic Commission carried out the First International Symposium on Industry Clusters from August 8 through 10, 2007. The event was opened by Vice-Governor Huang Haisong and GTZ Program Executive Dr. Juergen Steiger.

Around 240 Chinese cluster specialists discussed cluster theories, development strategies, sucessful examples, and cluster management with the German experts Godehard Neumann, Bernd Hackler and Helmut Schönleber. The Wuhu Automotive Cluster, home of China’s leading car exporter Chery, was explored as a model candidate for cluster formation in the country.

The National Development and Reform Commission (NDRC), the Anhui Provincial Government and the German Technical Cooperation (GTZ) have jointly organized an International Symposium on SME Promotion: “China’s Approach to SME Promotion through Public-Private Dialogue on Policy, Strategies and Developing Models”. The symposium was held on June 29th and 30th 2007 in Hefei, Anhui Province, PR China.

As a result of the NDRC announced program for the promotion of small and medium-sized enterprises which sought to develop and establish a co-operative business environment for SME in China, Anhui Province presented the new tested models of cooperation and promotion of industrial locations.

The symposium provided a forum to discuss international policy approaches in the field of SME Promotion especially on public-private cooperation and to share knowledge and experiences from Anhui Province. In three plenary sessions and three interactive workshops, the following major topics were addressed:

• SME Policy and Business Environment
• Business Development through Modern Regional Strategies
• Business Development Services (BDS) and Development of Chambers and Associations

More than 350 participants attended the event, including high-ranking government officials from the Anhui Provincial Government, representatives of international organizations as well as German and international experts and renowned experts and scholars from research institutes and academies. National and regional media reported extensively on the event.

China’s Draft Law on Sector Associations and Chambers has been discussed during the March plenary sessions of the National People’s Congress and the People’s Political Consultative Conference, but the legislative bodies failed to reach an early consensus. On April 5, 2007, the nation-wide newspaper “China Business Times” published the second part of an interview with the German expert Helmut Schoenleber who stressed the importance of non-government business membership organizations (BMO) for the healthy development of private enterprises. According to the expert, the country needs a fair BMO law protecting the interests of members and aiming for a wider self-administration of the private business community. For drafting the BMO law, legislators should not only consider the economic situation, national characteristics, demands of enterprises, and related laws and regulations of other countries, but they also need a fair portion of creativity.

The municipal government of eastern China’s city of 4 million, Hefei, capital of Anhui province, wants to improve the service system for small and medium-sized enterprises. On March 26, 2007, German GTZ organized a half-day expert hearing for leaders of the city’s economic commission and the municipal SME service center. Meng Xunzhi, director of GTZ Anhui office, and SEQUA-Expert Helmut Schoenleber participated and introduced SME service systems in western developed countries, which are largely based on the private business community and its membership organizations.

One of Germany’s well-known experts on corporate identity has accepted an invitation by SEQUA to introduce international best-practice models on branding and establishing a corporate image to small and medium-sized entrepreneurs (SME) during a symposium in the eastern Chinese province of Anhui.

Frank Merkel, founder and CEO of wob AG, held a presentation and participated in discussions in Hefei, capital of Anhui province, from March 19 to 21, 2007. The symposium was organized by the Anhui General Chamber of Commerce (AHGCC) and the Anhui Association of Private Economy, and supported by the German technical assistance organizations GTZ and SEQUA. The event aimed at providing guidance to owners of Chinese SME in developing their own brand strategy, at improving their conscience in corporate social responsibility, but also at assisting chambers of commerce and business associations in organizing high quality management training for their members.

World-famous brand enterprises such as BASF, Bosch, Heidelberg, Henkel, Hoffmann Group, Hyundai, John Deere, Mercedes-Benz und SAP are among the customers of wob AG. But Merkel has also successfully assisted many SME in developing their corporate identity.

Section 1. (Citation)

This Act is called the “Chamber of Commerce Act, B. E. 2509″

Section 2. (Enforcement)

This Act shall come into force as from the day following the date of its publication in the Government Gazette. (Published in the Government Gazette, Vol. 83, Part 38, dated 26th April, B. E. 2509 (1996))

Section 3. (Other Laws)

All other laws, rules and regulations, in so far as they are already provided in, or are contrary to or in consistent with the provisions of this Act, shall be replaced by this Act.

Chapter 1 General Provisions

Section 4. (Definitions)

In this Act:

“Chamber of Commerce” means an institution established by several persons of the promotion of trade, industry, agriculture, finance or economy other than for sharing profit or income;

“State enterprise” means a State enterprise under the Law on Budgetary Procedure exclusively where it is a juristic person and its objects concern trade, industry, agriculture, finance or economy;

“Co-operative Society” means a Co-operative Society under the Law on Co-operative Societies exclusively where its objects concern trade, industry, agriculture, finance or economy;

“Registrar” means the Central Chamber of Commerce Registrar or the Changwat Chamber of Commerce Registrar, as the case may be;

“Official” means a person appointed by the Minister to carry out this Act;

“Minister” means the Minister of State having charge and control of the execution of this Act.

Section 5. (Execution by Minister of Economic Affairs)

The Minister of Economic Affairs shall have charge and control of the execution of this Act, and shall have the power to appoint officials and to issue Ministerial Regulations prescribing fees not exceeding the rates attached to this Act and prescribing other activities for the purpose of carrying out this Act.

Such Ministerial Regulations shall come into force upon their publication in the Government Gazette.

Chapter 2 Establishment of a Chamber of Commerce

Section 6. (Chamber Categories)

Chambers of commerce are of categories, as follow:

(1) Changwat Chamber of Commerce;

(2) Thai Chamber of Commerce;

(3) Foreign Chamber of Commerce;

(4) Council of the Chambers of Commerce of Thailand.

Section 7. (Registration Office)

There shall be established a Central Chamber of Commerce Registration Office in the Department of Internal trade, Ministry of Economic Affairs, in order to control the issue of a license and the registration of chambers of commerce throughout the Kingdom, and also to function as the Chamber of Commerce registration office for Changwat phra nakorn and Changwat Thon Buri.

There shall be established, in Changwat other than Changwat Phra Nakorn and Changwat Thon Buri, the Changwat Chamber of Commerce Registration Office to be directly under the supervision of the Central Chamber of Commerce Registration of Office.

The Director-General of the Department of Internal Trade shall be the Central Chamber of Commerce Registrar and the Chamber of Commerce Registrar for Changwat Phra Nakorn and Changwat Thon Buri, and the Governors of Changwat other than Changwat Phra Nakorn and Changwat Thon Buri shall be the Changwat Chamber of Commerce Registrars.

Section 8. (License Requirement)

No person shall establish a Chamber of Commerce unless a license has been obtained from the Registrar.

A branch of a Chamber of Commerce may not be established.

Section 9. (Number of Applicants)

In applying for a license, not less than five promoters shall file an application with the Registrar in accordance with the requirements and procedures prescribed in the Ministerial Regulation.

Section 10. (Requirements for Registration)

When the Registrar has received an application for a license and, having considered the application, he is of the opinion that no regulation is contrary to the law, is a threat to the economy or security of the country or public order or good morals, and that the promoters are of good status and conduct, he shall grant and issue a Chamber of Commerce license to the applicants and shall thereafter register the Chamber of Commerce.

If the Registrar gives an order of refusal, he shall notify the applicants of the order, in writing, without delay. The applicants have a right to appeal against the order by filing an appeal, in writing, with the Minister within fifteen days from the day of the receipt of the notification thereof. The decision of the Minister shall be final.

The Central Chamber of Commerce Registrar shall publish the grant of a license to establish a Chamber of Commerce and the dissolution thereof in the Government Gazette

Section 11. (Juristic Person)

A Chamber of Commerce, which has been granted a license and registered, shall become a juristic person.

Section 12. (License Substitute)

If a Chamber of Commerce license is lost or destroyed, the Chamber of Commerce shall apply for a license substitute.

Section 13. (Regulations Requirements)

A Chamber of Commerce must have regulations, and such regulations must, at least contain the following particulars:

(1) name;

(2) objects;

(3) office address;

(4) procedures for admitting and excluding a member to and from the Chamber of Commerce, as well as the rights and duties of a member;

(5) the operation of the Chamber of Commerce, the appointment, retirement and meeting of the directors, as well as the general meeting.

The regulations of a Chamber of Commerce must be registered with the Registrar at the same time of the filing of an application to establish the Chamber of Commerce. If the Registrar considers it appropriate, he may order the regulations to be amended before issuing a license.

Section 14. (Changwat Chamber of Commerce)

Only one Changwat Chamber of Commerce may be established and may exist in each Changwat, except in Changwat Phra Nakorn and Changwat Thon Buri where there shall be only one Changwat Chamber of Commerce called the Thai Chamber of Commerce.

Only one foreign Chamber of Commerce for each nationality may be established and may exist exclusively in Changwat Phra Nakorn or in Changwat Thon Buri.

Section 15. (Council of Chambers)

The Council of the Chambers of Commerce of Thailand may be established jointly by the Thai Chamber of Commerce, foreign chambers of commerce, trade associations, State enterprises and co-operative societies.

Section 16. (Name and Name-Plate)

The name of a Chamber of Commerce must be in Thai characters, but may be accompanied by foreign characters after or below the Thai characters, and the name used must only be that contained in the regulations. No instiution shall use the phrases, “Changwat Chamber of Commerce, Thai Chamber of Commerce, Foreign Chamber of Commerce or the Commerce of the Council of the Chambers of Commerec of Thailand”, or that of a similar meaning, as a part of its name without being a Chamber of Commerce under this Act.

A Chamber of Commerce shall have a clearly legible name-plate placed in front of its office.

Section 17. (Name Restriction)

No person, not being a Chamber of Commerce, shall use a name containing “Chamber of Commerce” or “The Council of the Chambers of Commerce of Thailand” in Thai characters of foreign characters which can be translated or read as “Chamber of Commerce” or “The Council of the Chambers of Commerce of Thailand” in a seal, name-plate, letter, notice, or other business documents except in an application to establish a Chamber of Commerce.

Section 18. (Enquiry)

The Registrar shall have the power to issue a written order requiring any person to appear for enquiry or to send a document for the purpose of the consideration concerning an application to establish a Chamber of Commerce.

Chapter 3 Member and Board of Directors of a Chamber of Commerce

Section 19. (Types of Membership)

Members of a Chamber of Commerce are only 4 categories, as follows:

(1) ordinary member;

(2) extraordinary member;

(3) associate member;

(4) honorary member;

Only an ordinary member has a right to be elected as a director of the Chamber of Commerce

Section 20. (Domicile of Members)

Subject to section 21, a member of a Changwat Chamber of Commerce must have a domicile in the Changwat where such Chamber of Commerce is situated, and must be a natural person of Thai nationality of a juristic person of which partners or shareholders holding more than one-half of its capital are of Thai nationality, and is a person engaged in a trading, industrial, agricultural, financial or economic enterprise, or must be a trade association more than one-half of the total number of members of which are of Thai nationality or must be a State enterprise or a Co-operative Society.

A natural person or a juristic person, not being of Thai nationality, or a trade association, more than one-half of whose total number of members are aliens, may only be an Associate member of a Changwat Chamber of Commerce.

A Changwat Chamber of Commerce must be a member of the Thai Chamber of Commerce.

Section 21. (Thai Chamber of Commerce)

The Thai Chamber of Commerce consists of members having domicile in Changwat Phra Nakorn or Changwat Thon Buri, who are natural persons of Thai nationality or juristic persons of which partners or shareholders holding more than one-half of its capital are of Thai nationality, and are persons engaged in trading, industrial, agricultural, financial, or economic enterprises, or are State enterprises, or co-operative societies of Changwat chambers of commerce.

Section 22. (Foreign Chambers)

A foreign Chamber of Commerce consists of members who have domicile in Changwat Phra Nakorn or Changwat Thon Buri the majority of which are natural persons of a foreign nationality or juristic persons of which partners of shareholders holding more than one-half of its capital inclusive of that of its branches registered abroad, are of a foreign nationality, and are persons engaged in trading, industrial, agricultural, financial or economic enterprises.

A foreign Chamber of Commerce must be a member of the Council of the Chambers of commerce of Thailand.

Section 23. (Council of Chambers)

The Council of the Chambers of Commerce of Thailand consists of members who are representatives of the Thai Chamber of Commerce, the number of which is not less than one-half of the number of members of the Council of the Chamber of Commerce of Thailand, five representatives from each of the foreign chambers of commerce, two representatives from each trade association, State enterprise, and Co-operative Society.

A natural person or juristic person, being a member of the Thai Chamber of Commerce, a foreign Chamber of Commerce, a trade association or a Co-operative Society, may only be an associate member of the Council of the Chambers Commerce of Thailand.

Section 24. (Board)

The Boards of the Chambers of commerce shall be as follows:

(1) The Board of the Changwat Chamber of Commerce, consisting of the directors elected from ordinary members by the general meeting, of the number in accordance with the regulations of such Changwat Chamber of Commerce;

(2) The Board of the Thai Chamber of Commerce, consisting of the directors elected from ordinary members by the general meeting, of the number in accordance with the regulations of the Thai Chamber of Commerce, but not less than three of whom must be elected from the members who are the representatives of the various Changwat chambers of commerce;

(3) The Board of a foreign Chamber of Commerce, consisting of the directors elected from ordinary members by the general meeting of the foreign Chamber of Commerce, of the number in accordance with the regulations of such foreign Chamber of Commerce;

(4) The Board of the Council of the Chambers Commerce of Thailand consisting of:

(a) Chairman of the Thai Chamber of Commerce as its ex-officio Chairman;

(b) two Vice-Chairmen; the Board of the Council of the Chambers of Commerce of Thailand shall elect the first Vice-Chairman from the directors of the Thai Chamber of Commerce and the second Vice-Chairman from the directors of the foreign chambers of commerce;

(c) every Chairman of a foreign Chamber of Commerce as a director;

(d) members representing the trade associations, totalling four in number, elected by the general meeting of the Council of the Chambers of Commerce of Thailand, as directors;

(e) members representing the Thai Chamber of Commerce of the number equal to those of the directors in (c) and (d) together elected by the general meeting of the Council of the Chambers of Commerce of Thailand, as directors;

(f) members representing the State enterprises and the co-operative societies, totalling

Chapter 4 Operation of a Chamber of Commerce

Section 25. (Authorization of Operations)

A Chamber of Commerce shall have a Board to operate the Chamber of Commerce and to be its representative in dealing with outsiders. For this purpose, the Board may authorize one or more directors to act on its behalf.

Section 26. (Vacation of Office)

Apart from the retirement under the regulations of a Chamber of Commerce, a director of the Chamber of Commerce shall vacate his office upon being a bankrupt or punished by a final judgement under this Act, and is henceforth disqualified from being a director in any Chamber of Commerce unless a period of three years has elapsed from the discharge from bankruptcy or the day of the discharge from punishment.

Section 27. (Examination)

A member of a Chamber of Commerce has a right to demand the examination of the activities and the property of the Chamber of Commerce by filling a written application with the Chamber of Commerce.

Section 28. (Duties of a Chamber)

A Chamber of Commerce shall have the following duties:

(1) to promote trade, industry, agriculture, finance and economy in general, such as to collect statistics, to disseminate trade information, to research in connection with trade and economy, to promote tourism, to issue a certificate of the origin of goods, to fix the quality standard of goods, to check the standard of goods, to establish and operate an educational establishment concerning trade and economy, to establish and operate a trade centre, to arrange a trade exhibition, to be an arbitrator in a trade dispute;

(2) to give advice and make recommendation to a member concerning trade, industry, agriculture, finance or economy, and to provide various facilities in the business operation of a member;

(3) to give advice and make recommendation to the government for the economic development of the country;

(4) to co-ordinate in trading between persons engaged in trade and the government;

(5) to conduct other activities as may be specified by law to be the duties of the Chamber of Commerce, or as may be entrusted by the government.

Section 29. (Restricted Activities)

Subject to section 28, a Chamber of Commerce shall not act in any of the following:

(1) engaging itself in an enterprise, or managing an enterprise of its member, or participation in, holding the shares of, being a partner or contributing capital to, the engagement of an enterprise with any person;

(2) acting in any way to suppress or increase the price of goods or service excessively or causing unstability concerning the price of goods or services;

(3) giving or lending money to a member or any other persons except for public charity or under a moral obligation or social appropriateness;

(4) acting in any way to increase, reduce or restrict production, amount of goods distributed or other services, and such action is detrimental to the domestic or foreign market of trade, finance, or economy of the country;

(5) acting in any way to destroy competition which may normally be entertained in the engagement of an enterprise except where it is an implementation of a governmental policy or regulation;

(6) acting in any way that may be a threat to the economy or security of the country or to public order or good morals;

(7) obstructing or preventing any person who is qualified to be a member under the regulations of the Chamber of Commerce from becoming a member, or forcing a person in any way against his will to become a member, or forcing a member by a dishonest motive to resign from the Chamber of Commerce, or contrary to the regulations of the Chamber of Commerce;

(8) disclosing statistics, documents or information concerning the private interest of any member except with a written consent from such member;

(9) authorizing or permitting any person who is not a director to perform the duty of a director.

Section 30. (Non-profit)

A Chamber of Commerce shall not distribute profit or income among its members, or carry on a political activity.

Chapter 5 Control of a Chamber of Commerce

Section 31. (Supervision)

The Registrar shall have the power to issue the written order requiring a director or member to appear and explain a fact concerning the activities of the Chamber of Commerce or to send a document concerning its operation or minutes of its meeting.

Section 32. (Inspection)

For the purpose of carrying out this Act, the Registrar of the official shall have the power to enter the office of a Chamber of Commerce for the purpose of inspection during its office hours.

In acting under paragraph one, the official shall show his identity card to the person concerned.

The identity card shall be in the form prescribed by the Minister.

In the action of the Registrar of the official under paragraph one, the person concerned shall provide reasonable facilities or assistance, or give information to the registrar of the official as requested.

Section 33. (Membership Register)

A Chamber of Commerce shall prepare a membership register to be kept in the office of the Chamber of Commerce, and shall deliver a copy thereof to the Registrar within a period of ninety days from the day of obtaining a license and being registered as a Chamber of Commerce. The membership register shall at least contain the following particulars:

(1) name and nationality of the member;

(2) name used in the engagement of the enterprise and category of the enterprise;

(3) address of the office of the member;

(4) date of membership.

When there is an admission of a new member or a change in the membership register, the Chamber of Commerce shall notify the Registrar to that effect within a period of ninety days from the day of the admission or change.

Section 34. (Balance Sheet)

A Chamber of Commerce shall prepare its balance sheet at least once in every twelve nonths, which constitutes its accounting year.

The blalnce sheet must contain the amount of the assets and liabilities of the Chamber of Commerce together with an account of income and expenditure. The balance sheet must be completed and audited and then submitted to a general meeting of the Chamber of Commerce for approval within a period of one hundred and twenty days from the last day of the accounting year.

Section 35. (Annual Report)

A Chamber of Commerce shall prepare an annual report showing the result of the operation of the Chamber of Commerce to be submitted to a general meeting at the time of the submission of the balance sheet, and shall deliver a copy of the report and that of the balance sheet to the Registrar within a period of thirty days from the day of the general meeting.

Section 36. (Amendment of Regulations)

An amendment to the regulations of a Chamber of Commerce may be made only by a resolution of a general meeting, and must be registered with the registrar within a period of thirty days from the day of the resolution of the general meeting. If the Registrar considers that such amendment is inconsistent with the objects of the Chamber of Commerce or contrary to the law, he shall not register such amendment.

If the Registrar refuses to register and amendment to the regulations, section 10 paragraph two, shall apply mutatis mutandis.

Section 37. (Replacement of Directors)

The appointment or replacement of a director of a Chamber of Commerce must be registered with the registrar within a period of thirty days from the day of the appointment or replacement.

If the Registrar considers that the person appointed as a director to be of an inappropriate status or of bad conduct, or has a reasonable cause to suspect that such person may be a threat to the economy or security of the country or to public order or good morals, he has the power to refuse to register such person a director of the Chamber of Commerce.

Section 38. (Public Documentation)

Any person, who wishes to examine, copy, or have copied and certified, a document concerning a Chamber of Commerce, shall make an application in the form described by the Central Chamber of Commerce Registrar.

Section 39. (Threatening Action)

When it appears that the Board, a director or a member of a Chamber of Commerce, does any act which may be a threat to the economy or security of the country, or to public order or good morals, the Registrar shall have the power to issue a written order requiring the Board, the director or the member to stop such action or to rectify it within a period of time prescribed by the Registrar.

Section 40. (Ministerial Replacement Order)

When a Chamber of Commerce does an act which violates section 29, the Minister has the power to order the whole Board or an individual director to vacate his office. In such case, the Board or the director is disqualified from being a director of the Chamber of Commerce unless a period of three years has elapsed from the day of the order of the Minister to vacate the office.

Section 41. (Unlawful Action)

When there is a cause to suspect that any Chamber of Commerce is to act unlawfully or to be a threat to the economy or security of the country, or to public order or good morals, the Registrar shall have the power to issue a written order requiring the Chamber of Commerce to notify him at least three days in advance of the date and time of every meeting of the Chamber of Commerce. In such case, the Registrar or the official shall have the power to attend the meeting.

Where any Chamber of Commerce fails to notify the date and time of its meeting in accordance with the order of the registrar, the Registrar shall have the power to order the Chamber of Commerce to suspend its meeting, each time, for not more than ninety days from the day the Registrar issues the order. In case the Registrar issues an order suspending a meeting, section 20 paragraph two, shall apply mutatis mutandis.

Section 42. (Unlawful Resolution)

If the general meeting of the Chamber of Commerce passes a resolution in violation of a law or its regulations, upon the request of any member or an official, the Registrar shall have the power to revoke such resolution. But in case a member requests for the revocation, he shall so request within a period of thirty days from the day of the passing of such resolution.

Section 43. (Ministerial Dissolution Order)

The Minister shall have the power to dissolve a Chamber of Commerce upon the following events:

(1) When it appears that an action of the Chamber of Commerce is contrary to the law or is a threat to the economy or security of the country, or to public order or good morals;

(2) When the Chamber of Commerce does an act in violation of section 29, and such act is a serious harm;

(3) When the Chamber of Commerce is unable to continue its operation or has ceased its operation for two years or upward;

(4) When it appears that the Chamber of Commerce authorizes or permits another person who is not a director to perform the duty of a director.

Any director of the Chamber of Commerce, of which dissolution the Minister orders under (1), (2) or (4) who participated in the act which causes the Minister to order its dissolution, is disqualified from being a director of the Chamber of Commerce unless period of three years has elapsed from the day the Minister issues the order to dissolve the Chamber of Commerce.

Chapter 6 Dissolution of a Chamber of Commerce

Section 44. (Reasons for Dissolution)

A Chamber of Commerce is dissolved upon any of the following causes:

(1) upon the resolution of the general meeting for its dissolution;

(2) upon being bankrupt;

(3) upon the order of the Minister under section 43 for its dissolution.

The Chamber of Commerce dissolved under (1) or (2) shall notify the Registrar of the dissolution within a period of fifteen days from the day of the occurrence of the cause for its dissolution.

Section 45. (Revocation of License)

Subject to section 10 paragraph three, when a Chamber of Commerce is dissolved upon any cause specified in section 44, the Registrar shall revoke the license and delete the name of the Chamber of Commerce from the Register. In such case, it shall be deemed that the Chamber of Commerce may continue to act only as far as it is necessary for the purpose of liquidation.

Section 46. (Dissolution Procedings)

The provisions of the Civil and Commercial code on the liquidation of registered partnerships, limited partnerships and limited companies shall apply mutatis mutandis to the liquidation of a Chamber of Commerce dissolved under section 44.

Section 47. (Transfer of Property)

After the liquidation, the remaining property, if any, may not be distributed among the members of the Chamber of Commerce. Such property must be transferred to another juristic person the objects of which concern a public charity specified in the regulations of the Chamber of Commerce. If no juristic person is specified, it shall be transferred to any juristic person the objects of which concern a public charity, as may be resolved by the general meeting. In cases other than as mentioned above, the remaining property shall vest in the State.

Chapter 7 Penalties

Section 48. (Chamber Without License)

Any person who violates section 8 shall be liable to imprisonment for not more than one year or to a fine of not more than ten thousand Baht or to both.

Section 49. (Member of Chamber Without License)

Any person who is member of a Chamber of Commerce not licensed under section 8 shall be liable to a fine of not more than two thousand Baht.

Section 50. (Missing Name-Plate)

Any person who violates section 16 shall be liable to a fine of not more than one thousand Baht and an additional fine of not more than fifty Baht a day until rectification is made.

Section 51. (Misuse of Name)

Any person who violates section 17 shall be liable to a fine of not more than two thousand Baht and an additional fine of not more than fifty Baht a day until cessation of such use.

Section 52. (Refusal of Registrar Examination)

Any person who fails to comply with the order of the Registrar under section 18 or section 31, or fails to comply with section 32 paragraph four, shall be liable to a fine of not more than one thousand Baht.

Section 53. (Refusal of Member Examination)

Any Chamber of Commerce which refuses to allow its member to examine the activities and property of such Chamber of Commerce under section 27 shall be liable to a fine of not more than one thousand Baht.

Section 54. (Restricted Activities and Profit Distribution)

Any Chamber of Commerce which violates section 29 or section 30 shall be liable to a fine of not more than fifty thousand Baht.

Section 55. (Violation by Director)

Any director of a Chamber of Commerce who violates section 29, or does an act contrary to its objects and such act is a threat to the economy and security of the country, or to public order or good morals, shall be liable to a fine of not more than thirty thousand Baht.

Section 56. (Reporting Violations)

Any Chamber of Commerce which violates section 3, section 34, section 35, section 36 or section 37 paragraph one, shall be liable to a fine of not more than one thousand Baht.

Section 57. (Threatening and Unlawful Actions)

Any person who fails to comply with the order of the Registrar under section 39 or section 41 paragraph one or paragraph two, shall be liable to a fine of not more than two thousand Baht.

Section 58. (Refusal of Replacement and Dissolution)

Any person who violates section 40 or remains a director or a Chamber of Commerce which has been dissolved under section 44 or section 61 paragraph three, shall be liable to imprisonment for not more than two years or to a fine of not more than twenty thousand Baht or to both.

Section 59. (Bankruptcy)

Any Chamber of Commerce which violates section 44 paragraph two, or fails to comply with section 46, shall be liable to a fine of not more than one thousand Baht.

Section 60. (Unlawful Removal of Property)

Any person who violates section 47 shall be liable to imprisonment for not more than one year or to a fine of not more than ten thousand Baht or to both.

Transitory Provisions

Section 61. (Conversion)

Every Chamber of Commerce, board of trade, or association having the same characteristics or objects as those of a Chamber of Commerce which was registered under the Civil and Commercial Code prior to the day this Act comes into force, must, if it wishes to become a Chamber of Commerce license within a period of ninety days from the day this Act comes into force. And when it has been licensed as a Chamber of Commerce under this Act, the Registrar of Associations under the Civil and Commercial Code shall delete the name of such Chamber of Commerce, board of trade or association from the Register of Associations.

All the property and liabilities of a Chamber of Commerce, board of trade or association having the same characteristics or objects as those of a Chamber of Commerce licensed and registered under this Act shall be transferred to the newly established Chamber of Commerce.

If a Chamber of Commerce, board of trade, or association having the same characteristics and object as those of a Chamber of Commerce registered as an association under the Civil and Commercial Code, does not apply for a Chamber of Commerce license under this Act within the period of time mentioned in paragraph one, it shall be deemed dissolved, and the Registrar of Associations under the Civil and Commercial Code shall delete the name of such Chamber of Commerce, board of trade or association from the Register of Associations.

If a Chamber of Commerce, board of trade or association having the same characteristics or objects as those of a Chamber of Commerce is dissatisfied with the order of the Registrar under the Civil and Commercial Code to have its name deleted from the Register of Associations, it has a right to appeal against such order, by filling a written appeal with the Minister within a period of fifteen days from the day of the receipt of the order. The decision of the order of the Minister shall be final.

Countersigned By:

Field Marshal Thanom Kittikachorn

Prime Minister

Rates of Fees

Article 1 (Citation)

This law shall be cited as the “Law No. 8 of the year 1997 on the Organization of the Dubai Chamber of Commerce and Industry”.

Article 2 Definitions

The following words shall have the meanings indicated there unless the context otherwise requires:

The Emirates: Emirate of Dubai

The Ruler: His Highness the Ruler of the Emirate of Dubai

The Chamber: Dubai Chamber of Commerce and Industry

The Board: The Chamber’s Board of Directors

The Member: Whoever shall obtain a license to practice commercial, industrial, agricultural or vocational business, and becomes a member of the Chamber in conformity with the provisions of this law.

CHAPTER I The Chamber’s Objectives and Powers

Article 3 (Legal Status)

The Chamber is a non-profit public organization, with legal entity and financial and administrative independence. It shall have the competence to own and dispose of movable and immovable properties. It can sue and be sued. The Chamber may delegate any person that it appoints as its representative in judicial proceedings.

Article 4 (Headquarter and Branches)

The Chamber’s main headquarters shall be located in Dubai. It may establish branches or offices in the Emirate, it may also establish offices or trading centers abroad, provided that the decisions and by-laws to be issued by the Board in this regard determine the objectives of branches, offices, or centers, their functions and organizational level.

The Chamber may participate in setting up joint Chambers, provided that the agreements to be concluded for establishing such joint chambers shall determine the objectives and powers thereof.

Article 5 Objectives of the Chamber

The Chamber shall endeavor to achieve the following goals:

1. Looking after the commercial, industrial, agricultural interests and other matters connected with economic and professional activities and related services, and co-operating with the competent government authorities, to organize and develop these activities so as to attain economic and social development for the community.
2. Looking after the interests of the members of the chamber, providing them with the services they need to carry out their activities and commercial transactions, protecting their rights and surveying their opinions and presenting them to the departments concerned, and co-operating with the competent authorities to solve their problems.
3. Encouraging co-operation between the members of the chamber and strengthening their mutual relations and their links with government establishments, business and professional organizations operating in the various economic sectors.
4. Co-operating with the ministries, government departments and establishments, and with local, regional and international chambers of commerce, associations, organizations and bodies in order to coordinate actions regarding common economic, technical, and administrative matters, and to exchange expertise with regard to the Chamber’s endeavors to carry out its functions and achieve its aims.
5. Undertaking to consolidate the Emirate’s economic position and to highlight its role as an international commercial and business center and to organize the functions and programmed required to promote the Emirate’s economy, and its commercial establishments, both internally and externally.

Article 6 The Chamber’s Powers

The chamber shall exercise the powers necessary for the fulfillment of its objectives, particularly:

1. Registering natural and juridical persons licensed to practice the activities stipulated by Article 7 hereunder as members of the Chamber, and issuing the appropriate certificates and documents that may help them accomplish their commercial transactions.
2. Issuing various types of certificates of origin for exported and re-exported goods and products. The Chamber may adopt the means that it may deem suitable to check the correctness of the presented data either by asking for the original documents indicating the place of origin of the concerned product, or by inspecting the product itself, if necessary.
3. Attesting signatures and stamps, as well as certificates and contracts and other documents related to the commercial transactions that may be needed by the members of the chamber in order to accomplish their transactions.
4. Nominating experts for inspecting commodities, goods and properties, and determining their types, weights and values.
5. Expressing opinion on the legislation regulating various commercial and economic matters, and studying draft laws, regulations and statutes issued by the competent authorities for the regulation of the above mentioned matters.
6. Suggesting economic programmes and plans and investment projects that may consolidate and enforce the Emirate’s economy or increase employment and investment opportunities; also suggesting legislation regulating commercial and economic matters, and submitting the related suggestions to competent authorities.
7. Carrying out activities that promote and bolster the Emirate’s economic relations, particularly by:
   1. Receiving visiting trade delegations and missions, and sending trade delegations abroad.
   2. Holding local and international trade fairs and exhibitions, and participating therein.
   3. Organizing, contributing to or participating in conferences, seminars, symposia and training courses inside and outside the Emirate.
   4. Publishing and distributing magazines, periodicals, directories and any other commercial and specialized publications.
   5. Concluding cooperation agreements with similar unions, chambers, or bodies in order to foster the cooperation and the commercial relations.
8. Preparing economic studies, researches, and reports on the evaluation of the various economic sectors’ performance, their orientation and development, the problems and difficulties they are facing and then presenting the conclusions of such studies to the competent authorities.
9. Studying all applications presented for holding exhibitions, conferences, seminars and symposia dealing with commercial and economic matters to be held in the Emirate, and presenting the appropriate recommendation regarding the approval of such events to the competent authorities.
10. Compiling information and data of economic nature, such as prices of exchanged goods, commodities, services, securities, currencies and others and issuing information thereupon, and compiling, classifying and publishing regular statistics, legislative and regulative texts.
11. Supplying commercial directories, specialized books, references, scientific and other supporting publications other may help in preparing reports and studies.
12. Providing advise to the members of the Chamber regarding legal, commercial, economic, or technical matters, supplying them with the available information and advising them on how to follow the procedures and apply the means that may help them protect their rights and develop their businesses.
13. Contributing in the development of administrative and technical cadres in the economy and business administration. Looking for the suitable potentials and means to fulfill the foresaid objective, by establishing institutions, or centers for commercial and technical training.
14. Mediating to settle commercial disputes that might arise between the members of the Chamber, or between them and other parties in order to reach amicable settlements.
15. Determining the local commercial usages and expressions.
16. Providing a mechanism for the settlement of commercial disputes, by supervising the conciliation and arbitration processes in conformity with the Chamber’s Commercial Conciliation and Arbitration Rules.
17. Owning movable and immovable properties and managing, investing, selling or mortgaging them; concluding contracts with third parties, and accepting donations.
18. Participating in committees formed by ministries, departments, bodies and other institutions with the aim of studying or regulating economic matters, representing the Chamber in activities that are within its jurisdiction and other relevant activities.
19. Performing all acts that may fulfill the objectives of the Chamber stipulated by Article V of this Law.

CHAPTER II Joining the Chamber

Article 7 Chamber’s Membership

1. Whoever is licensed by the Emirate’s competent authority to practice any of the activities mentioned here-under shall be bound to become a member of the Chamber:
   1. Activities related to agriculture, animal resources and fisheries.
   2. Mining, quarrying and exploiting natural resources and related downstream industries.
   3. Converted industries.
   4. Distribution of electricity, water, gas and oil derivatives and related activities.
   5. General contracting works.
   6. Buying commodities and other tangible and intangible movables with the intention of selling them. Selling by public auction, brokerage, commercial agencies and intermediary activities.
   7. Repair and maintenance.
   8. Hotels and restaurants.
   9. Transport by land, sea and air, business connected with maritime and air transport, shipping, tourism and travel, customs clearance, loading and discharging, storage and communications in general.
   10. Banking, money exchange, financial establishments involved in investment, funding and crediting, and all other financial brokerage operations.
   11. All types of insurance.
   12. Buying and selling land and real estate or renting them with intention or sub-letting. Buying or renting movable properties to hire them out.
   13. Accounting services, consultancies, commercial, administrative and engineering studies and related technical services. Advertising and exhibition services, news agencies and offices that supply manpower and services.
   14. Producing, publishing and distributing newspapers, magazines and books. Radio and television activities, recording and filming studios, cinemas, theatres, entertainment and private sport clubs.
2. All commercial companies or establishments practicing any type of activities which could be consistent with the activities mentioned here in above and having similar characteristics and objectives shall be bound to become members of the Chamber.
3. Individuals practicing small trade or a simple vocational activity that depends on their efforts, skills and physical strength in order to gain profit that may provide their living more than any capital shall be excluded from the mandatory membership of the Chamber.
4. Without prejudice to all clauses mentioned above, categories other than those indicated in paragraph (A) and paragraph (C) above may subscribe as members of the Chamber in accordance with the provisions of this Law.
5. If any member practices his activities through one branch or more in addition to his main office, each branch shall be registered with the Chamber, and membership fees shall be due for each of the branches.

Article 8 (Business License and Membership Certificate)

The competent licensing authority shall not deliver the original license to the concerned establishment unless a certificate or a document is presented thereto as a proof that the concerned establishment has joined the Chamber. The license shall not be renewed unless the establishment’s membership in the Chamber is renewed and the annual membership fees are paid.

The membership certificate or a document providing registration with the Chamber and payment of its fees shall stand among the main documents that should be presented to any government department or body when filling the application for a bid, for contracts with contractors supplies or other parties, for clearing exported, imported or re-exported gods and for any application that is connected with any of the activities mentioned in the above article.

Article 9 Chamber’s Fees

The Chamber collects annual membership fees from its members as well as fees for issuing certificates and for other services provided by the Chamber in conformity with the provisions, categories and amounts stipulated by a decree issued by the Ruler.

A member who has delayed the payment of his annual fees for more that one year may be exempted from paying these fees according to the conditions and provisions stipulated by the Executive Regulations.

Article 10 Suspension of Membership

A member shall have his membership suspended and shall be deprived of the services provided by the Chamber if he commits any of the following infringements:

1. Refraining from the renewal of the membership and the payment of membership fees within a period of three months from the date of maturity there of while continuing to carry out his activities, without presenting a reasonable justification to the Chamber.
2. Not co-operating with the Chamber in settling commercial complaints submitted to the Chamber against him.
3. Presenting certain documents to the Chamber that contain false information, or concealing important documents.

A member subjected to any sanctions as mentioned hereinabove may present a petition of protest to the Executive Bureau with all justification and evidences proving that the sanctions imposed were not justified, or explaining the conditions and situation that caused the concerned member to be liable to sanctions. The Bureau shall then study the petition and make its decision thereupon within a period not exceeding one month from the date of the petition. The Executive Bureau’s decision shall be final.

Article 11 Lapse of Membership

The membership shall lapse in any of the following cases:

1. Bankruptcy of the licensee – unless rehabilitated.
2. Canceling the license issued by the competent authority.
3. Presenting forged papers or documents that do not pertain to the concerned member after a court judgment.
4. Refraining from the renewal of the membership and the payment of membership fees within three years from the date of maturity thereof while continuing to carry out the activities, without presenting a reasonable justification accepted by the Chamber.
5. Death of the licensee or liquidation of the Company.

Members whose membership lapses as stipulated in paragraphs (3) and (4) above, shall be deprived from carrying out their activities upon advice by the chamber to the licensing authority. The latter shall then take the necessary procedure to cancel the license issued to them.

A member whose membership lapses, may have it reinstated when the circumstances that caused it to laps no longer exist according to the provision of the Executive Regulations.

CHAPTER III The Chamber’s General Organizational Structure

Article 12 (Organs)

The Chamber’s general organizational structure shall be as follows:

• The Board of Directors

• The Executive Bureau of the Board or Directors

• The Chamber’s Committees

• The Chamber’s Administrative Body.

Article 13 Board of Directors

The Board of Directors shall consist of a maximum of twenty six members to be appointed by a decree issued by the Ruler and chosen among competent and experienced people in conformity with Article No.15 of this Law. The term of the Board’s membership shall be a renewable three-years term.

Article 14 Powers of the Board of Directors

The Board is the authority assigned to supervise the Chamber’s activities and manage its affairs. It shall undertake the measures and make the decisions that it may deem appropriate for the fulfillment of the Chamber’s objectives within the framework of the jurisdiction and authorities assigned thereto.

The Board’s powers shall include in particular the following:

1. Planning the Chamber’s general Policy, adopting the programs and activities within it’s jurisdiction, and orienting the same in accordance with the requirements of the economic development and the country’s needs.
2. Proposing draft laws and decrees related to the Chamber and its affairs and functions and any amendments thereto.
3. Adopting the Chamber’s annual budget and its final statements of accounts for the last financial year.
4. Approving the receipt or grant of endowments and donations, and approving loan contracts.
5. Approving the conclusion of agreements and contracts of cooperation with other chambers, associations or bodies in domains of matters of interest to the Chamber.
6. Organizing outgoing trade delegations and missions as well as promotional tours aiming to consolidate the Emirate’s foreign trade relations or to promote its economy and to introduce the investment opportunities available in the Emirate.
7. Sending employees of the Chamber on education missions abroad for specialized or post graduate studies.
8. Issuing the Executive Regulations, other by-laws, decisions, and instructions regulating the Chamber’s administrative, financial and organizational affairs.
9. Expressing its opinion regarding the issue referred to the Board by the Ruler or any of the governmental institutions or bodies.

Article 15 Requirements for the Board’s Membership

A person appointed to be a member of the chamber’s Board of Directors shall fulfill the following criteria:

1. Be a united Arab Emirates National.
2. Practice a commercial, industrial, agricultural or vocational activity or any related service in the Emirate for at least eight consecutive years, or at least five consecutive years if he has an academic degree form university or a high institute.
3. Have not ever been convicted of a felony or any crime contradicting with honor and honesty. Have not declared bankruptcy unless rehabilitated.
4. Be a member of the Chamber during the period indicated in paragraph “2” above.
5. Be at least thirty-five years old, or twenty-eight years old if he holds a university or a high institute degree.

In exception to the provisions of paragraphs Nos. (2), (4) and (5) hereinabove, the Ruler may appoint one third of the Board’s members without being bound by the above criteria.

Article 16 Forfeiture of the Board’s Membership

1. A member of the Board shall forfeit his membership in any of the following cases:
   1. If the presents a written request to waive his membership and his request is accepted by the Board.
   2. If he loses one or more of the criteria indicated in Article XV hereinabove
   3. If he fails to attend three consecutive meeting or five scattered meetings of the Board during his term without presenting a written excuse acceptable to the Board.
   4. Death
2. In all cases, the Board shall present to the Ruler its recommendation on the cancellation of the membership of the person subject to any of the provisions stated in this article. The Ruler shall then appoint a substitute.
3. b. The Board’s term shall be considered as expired if the number of the Board’s members is reduced to less than half. In his case, the Ruler shall appoint a new Board in conformity with the provision of this Law.

Article 17 (Chairman and Executive Bureau)

1. The Chairman of the Board, the two Vice-Chairmans and the members of the Executive Bureau shall be elected during the first duly convened meeting of the Board to be held within two weeks from the date of the appointment decree issued by the Ruler. The meeting shall be presided over by the eldest member until the election procedures are completed.
2. The election shall be carried out by secret ballot. Any member may be a candidate to the post of Chairman, Vice-Chairman, or member of the Bureau. Whoever obtains the highest number of votes shall be elected as Chairman, Vice-Chairman or Member of the Executive Bureau.
3. A Board’s member may be entitled to a fixed remuneration to be determined by the Ruler of the Emirate in compensation for his commitments in attending the Board’s meetings, contributing to the activities and events organized by the Chamber, and carrying out the tasks assigned to him by the Board.
4. If after the expiration of any Board’s term no new Board is appointed, or if the new Board did not meet to elect the Chairman, Vice-Chairmans, and members of the Executive Bureau, the old Board and Executive Bureau shall continue to fulfill their functions until the new Board is appointed or the elections take place.

Article 18 The Board’s Meeting

1. The Board shall meet regularly at least once every three months upon the invitation is sent to the members ten days prior to the date of the meeting. The meeting’s agenda shall be enclosed with the invitation.
2. In urgent cases as determined by the Chairman of the Board, the Board may be convoked only three days prior to the date assigned for the meeting.
3. The Board may be convoked upon the request of the Board’s Executive Bureau. The Board may – in exceptional cases – be convoked upon a written request signed by at least six members.
4. The Board’s meetings shall be valid if attended by more than two thirds of the members, including the Chairmans. If the quorum is not established, within a maximum period of one week from the first assigned date. The second meeting shall be valid if attended by at least half of the members.
5. The Board’s decision shall be made by the majority of the votes present at the meeting. The Chairman shall have a casting vote in the case of equal votes.
6. The Executive Regulations shall determine the provisions related to the holding of the Board’s meetings, their proceedings and the rules for election and voting.

Article 19 The Board’s Executive Bureau

The Board shall have an Executive Bureau that shall supervise the Chamber’s financial and administrative affairs in conformity with the Executive Regulations and the decisions made by the Board. The Bureau shall consist of :

• Chairman

• First Vice-Chairman

• Second Vice-Chairman

• Treasurer

• Vice-Treasurer

• Two Members of the Board

Article 20 The Chairman’s Tasks

1. The Chairman of the Board shall have the following tasks:
   1. Presiding over the Board’s and the Executive Bureau’s meetings, managing and convening them.
   2. Representing the Chamber before the judicial authorities, bodies, institutions and other parties. He may depute and other person for such tasks.
   3. Attending meetings and conferences and other events and activities organized by the Chamber.
   4. Signing agreements and contracts concluded by the Chamber
   5. Ratifying the minutes of meetings, regulations, decisions and instructions; and signing letters issued by the Board and Executive Bureau.
   6. Ordering payments from the Chamber’s funds or effecting commitments in respect of Chamber’s expenditures, signing payment orders, documents and instruments, contracts, and all financial transactions within the limits and powers determined by the Chamber’s by-laws.
   7. Presenting the annual report to the Board on the affairs and activities carried out by the Chamber including his suggestions for development.
   8. Any other tasks assigned by the provisions of this Law or the Chamber’s By-law, or assigned by the Board in conformity with its powers.
2. When absent, the Chairman shall be replaced by the Vice Chairmen consecutively, who shall be vested with the powers granted to the Chairman. The Chairman may depute any of the Board’s members, the Director General, the Deputy Directors or a Director of any of the departments to fulfill certain tasks or any urgent matter under his jurisdiction.

Article 21 The Chamber’s Committees

1. Permanent committees in the Chamber shall be found formed by Board decision to tackle commercial, economic, industrial, public relations and legal matters and other issues related to the Chamber’s objectives and functions which need continuous follow up by holding regular consecutive meetings.
2. The Chamber may form Sub-Committees affiliated to the permanent committees in order to look after any special matters related to any of the commercial the practices of the Chamber’s members of their activities in those sectors.
3. The Chamber may also form ad hoc or Technical Committees assigned to fulfill a certain task having an incidental nature or a specific period during which it has to be accomplished. They may be assigned to assist any of the Chamber’s departments in the accomplishment in the accomplishment of a certain assignment.
4. Committees shall be formed from the Board’s members or Chamber’s staff or members. Committees may approach experts and specialists and others from governmental or private institutions and bodies as the Chamber may deem appropriate either for the proper composition of such committees or to have their relevant opinions.
5. The Executive Regulations shall determine the types of committees, the rules of their formation, their functions and how to convene and organize their meetings.

CHAPTER IV The Chamber’s Administrative & Financial Affairs

Article 22 The Board’s Executive Bureau

The Chamber shall have an administrative body assigned to fulfill the executive tasks pertaining to the Chamber’s functions and activities in accordance with the provisions of this Law and the Chamber’s by-law.

The rules governing the appointment of employees, their powers, responsibilities, assessment, punishment and dismissal as well as the pension & retirement system, and other provisions related to the adoption of the organizational structure of the Chamber’s administrative body, shall be subject to the provisions of the regulations of the personal affairs issued by the Board.

Article 23 The Director General

The Chamber shall have a Director General to be appointed by a decision of the Board upon the nomination made by the Executive Bureau.

He shall be assigned to preside over the Chamber’s administrative body and manage the Chamber’s financial, technical and administrative affairs. His power and tasks shall be determined by the Executive Regulations.

The Directors General shall have a Deputy Directors General, who shall be appointed in the same manner and shall help the Directors General to accomplish the tasks assigned to him, and shall replace the Directors General whenever the latter is absent.

Article 24 The Chamber’s Budget

1. The Chamber shall have an independent budget adopted by the Board and funded by the following recourses:

• The annual membership fees, the fees of issuing certificates and attesting commercial documents and others.

• Yields of the Chamber’s invested funds and its real estates.

• Revenues from facilities available at the Chamber’s premises and the various services provided to members and non-members and the yield of the sale of publications. The prices for such facilities and services shall be fixed by Board’s decision.

• Subsidies, donations and endowments that the Board decides to accept.

1. The Director General shall prepared a draft annual budget for the Chamber to be referred to the Executive Bureau two months prior to the beginning of the new financial year. The Board shall adopt the annual budget before the beginning of the following year.
2. Appropriations shall not be relocated from once to another section of the budget unless by a decision made by the Board. However, relocation can be done from one item to another in the same section of the budget by a decision of the Executive Bureau.
3. The Board may-during the financial year add new items to the Chambers published budget, and may also increase the number of employees, provided that such expenses shall be supported by appropriations not used by the budget’s other items or by the surplus revenues.
4. The Director General shall prepare the draft final statements of account within two months as from the end of the financial year. He shall refer the statements and the attached auditor’s report to the Bureau for approval.

Article 25 (Chamber’s Funds)

The Chamber shall independently manage and dispose of its own funds. However, the Chamber’s funds shall not be spent except in the scope of the objectives for which the Chamber was established. Expenses shall be settled and orders for payment shall be given, provided that the amounts due for such expenses had been determined and legally due and the appropriations for such expenses are available in the budget.

The management of the Chamber’s funds, its accounting system, methods of revenues and the means for preserving, spending and managing its funds thereof, the rules of investment, and the organization of internal financial control shall all be subject to the provisions of the Executive Regulations and the financial and accounting regulations set forth by the Board.

Article 26 (Debts and Obligations)

The Chamber’s funds shall be considered as public funds. Any party having a debt or obligation on the Chamber shall not recover that by seizure, attachment, sale by auction, acquisition of the Chamber’s funds, or by any legal action whether a final judgment regarding such debt or obligation, was pronounced or not.

Article 27 The Auditor

The Board shall – at the beginning of each financial year – appoint an auditor registered on the accountants and auditors roster, who shall revise the annual financial statements of the relevant year. The auditor shall present a report on the audit with his remarks to the Chairman of the Board.

The auditors shall have the right to have access – at any time – to all the chamber’s books, records and documents, and to request the data that he may deem necessary for his work. He shall be entitled to check the Chamber’s assets and liabilities.

If the auditor is prevented from performing his duties or is not given the chance to duly perform such duties, he shall state the same in a report to be referred to the Chairman of the Board.

CHAPTER V Concluding provisions

Article 28 (Previous Law)

This law shall replace the Law No. (2) of the year 1975 on the Dubai Chamber of Commerce and Industry and the amendments thereto, and shall cancel the Chamber’s By-laws issued on 13/7/1972.

Article 29 (Publication and Implementation)

This law shall be published in the official Gazette and shall be enforced as from the data on which it shall be published. All the concerned authorities shall implement this law, each in accordance with its jurisdiction.

Issued in Dubai on 25 May, 1997

Corresponding to 19 Moharram, 1418 Hijri

Maktoum bin Rashid Al-Maktoum

Ruler of the Emirate of Dubai

Reluctantly legalized no earlier than in the mid-eighties, private economy has now grown to become the main power driving China’s economic development. The head organization of Chinese chambers of commerce and industry expects private businesses will contribute more than half to the country’s gross domestic product (GDP) for the first time this year. According to a “2006 Blue Book on Private Economy Development” published by All-China Federation of Industry and Commerce (ACFIC) on September 22, their share already reached 49.7 percent in the end of 2005.
ACFIC carefully distinguished between different definitions of “private economy”. The narrow definition only includes businesses who are officially registered either as private enterprise or as private small business. The wider “domestic non-state economy” also includes mixed companies of private, collective, and state ownership, as long as the state’s share is less than a controlling majority. Finally, the wide definition also includes all foreign-invested enterprises. The expected 50-percent-share of GDP was calculated for the “domestic non-state economy” definition.

Private economy already reached 60.0 percent of fixed assets investment last year, according to the blue book. The state economy took 30.6 percent, foreign enterprises 9.4 percent.

Development of private economy in the narrow definition was quite amazing during the past 28 years. Official statistics show that in 1978, the first year of China’s economic reforms, 140,000 people were employed by small businesses. The number of small businesses, however, was only listed starting 1981, when the administration of industry and commerce was established and took charge of registration. 1.8 million businesses were registered in 1981, and their number grew to nearly 25 million in 2005.

Small businesses were only allowed to employ up to seven people, usually the owner’s family members. If they wanted to grow further, they had to register as branches of state or collective enterprises and thus turned into enterprises “with a red cap”. In the second half of the eighties, a private enterprise law and a limited company law were passed and legalized more sizable private economic activities. But not before 1999, the existance of private enterprises turned into a constitutional right and the general public ceased to view private business owners as criminals.

In 1989, the administration registered 91,000 private enterprises with more than seven employees. This number grew to 4.3 million in 2005. Even more impressive, their retail sales grew from 74.4 billion Renminbi in 1987 to 1.9 trillion in 2005. Within 18 years, their sales grew 26-fold.

But the main reason for private economy to successfully move forward in an otherwise strict socialist system was their contribution to alleviate unemployment. 140.000 employees in the private economy of 1978 grew to 107 million in 2005. Private entrepreneurs are now constituing a powerful middle class. State and party have changed their policy of obstacles into a policy of support for the private economy.

23.09.2006 H. Schoenleber

Die Anregungen aus Deutschland wurden von den 60 Teilnehmern anschliessend lebhaft diskutiert. Am Symposium nahmen neben Unternehmern auch Mitglieder der Stadtregierung, des regionalen Volkskongresses und der Politischen Konsultativkonferenz teil. Das Regionalfernsehen berichtete ausführlich.

Die Stadt Huainan hat 2 Millionen Einwohner und liegt in der Provinz Anhui. Historisch ein bedeutendes Handelszentrum und Hauptstadt einer Region, der zeitweise auch Shanghai untergeordnet war, ist Huainan heute vor allem als Kohle- und Stromlieferant für die ostchinesischen Wirtschaftszentren bekannt.

Schwerpunkt des Projektes ist ein verbesserter Dialog zwischen der Regierung und den Organisationen der Privatwirtschaft bei der Definition von Strategien der regionalen und sektoralen Wirtschaftspolitik. Ausserdem sollen Modelle zur Standortförderung für KMU entwickelt werden, die auch in anderen Regionen Chinas anwendbar sind. Auf Basis der Workshop-Ergebnisse erstellt die deutsche Seite nun einen Operationsplan bis Ende 2007.

Eines der größten Hindernisse im Geschäft mit China ist die berechtigte Befürchtung deutscher Unternehmen, dass ihre Technologie, ihre Marke, ihr Produktdesign, kurz: ihr gesamtes geistiges Eigentum in China von der dortigen Konkurrenz kopiert wird, sobald sie eine lokale Produktion aufgebaut haben, und dass sie auf dem Rechtswege kaum etwas dagegen tun können. Verbesserter Schutz der “Intellectual Property Rights” (IPR) wird daher immer wieder gefordert, wenn ein deutscher Politiker das Land besucht. Als Bundeskanzlerin Merkel im Mai mit Premierminister Wen Jiabao zusammentraf, waren die deutschen Medien voller Lob über ihren energischen Einsatz für besseren IPR-Schutz. Als Wen ihrer Forderung zustimmte, wirkte dies in Deutschland als klarer Punktsieg Merkels im Interesse deutscher Unternehmen.

Dem chinesischen Premier fiel die Zustimmung nicht schwer. Denn nicht nur deutsche und andere ausländische Unternehmen in China leiden unter der heftigen Kopiererei und dem Technologieklau. Im Gesamtvolumen viel dramatischer ist der Know-How-Klau chinesischer Unternehmen untereinander. Auch die chinesische Führung hat inzwischen erkannt, wie groß die volkswirtschaftlichen Verluste des mangelnden Urheber- und Technologie-Rechtsschutzes sind. Den ausländischen Forderungen wird nicht nur wegen der bilateralen Beziehungen ohne Zögern zugestimmt, sondern vor allem zur besseren Entwicklung der eigenen Wirtschaft.

Noch bei den Beitrittsverhandlungen zur WTO hatte die chinesische Führung immer wieder argumentiert, dass sich das Entwicklungsland China hohe Lizenzgebühren für moderne Technologie nicht leisten kann und wegen der Armut großer Teile seiner Bevölkerung zumindest einen Bonus braucht. Sonst solle sich das Ausland über Raubkopien und Plagiate nicht wundern. Inzwischen gilt diese Argumentation aber nur noch internationalen Konzernen gegenüber, während der IPR-Schutz für kleine und mittlere Unternehmen deutlich verbessert wird — und zwar gleichermaßen für chinesische wie ausländische.

Beim IPR-Schutz haben chinesische Unternehmen den meisten ausländischen gegenüber einen entscheidenden Vorteil. Sie sind seit ihrer Gründung an den Ideenklau der Konkurrenz gewöhnt und haben ihre eigenen Strategien dagegen entwickelt. Nur ein geringer – allerdings schnell wachsender – Teil dieser Strategien basiert auf dem Rechtsweg. Die erfolgreichsten chinesischen Privatunternehmen sind dadurch groß geworden, dass sie profitable Innovationen sehr schnell am Markt umsetzen konnten, dann aber auch schnell genug waren, auf eine andere profitable Branche umzuschwenken, sobald die Konkurrenz es geschafft hatte, die ursprüngliche Innovation zu kopieren. Interessanterweise ist in Deutschland meines Wissens noch niemand auf die Idee gekommen, den Stiel einmal herumzudrehen: Warum klauen wir nicht den Chinesen die Ideen, wie man Ideenklau bekämpft?

Die Dachorganisation der chinesischen Industrie- und Handelskammern (ACFIC) führt derzeit unter ihren Mitgliedsunternehmen eine Umfrage darüber durch, wie diese ihre intellektuellen Eigentumsrechte schützen und wie sie bei Ideenklau gegen die Diebe vorgehen. Die Umfrage-Ergebnisse sind zwar in China noch nicht veröffentlicht, aber schon am Multiple-Choice-Fragebogen kann man erkennen, wo die Schwerpunkte liegen.

Frage 20 beispielsweise gibt zum Thema “Wichtigste Methoden zum Schutz von Technologie” fünf Antwortmöglichkeiten vor:

1. Antrag auf Veröffentlichung oder Nutzung neuer Patente,
2. Geheimhaltung der Technologie,
3. Schutzwürdigkeit von Forschungsergebnissen begutachten (und damit besonderen Rechtsschutz zukommen) lassen,
4. Streuung der Bearbeitung von Einzelteilen (unter vielen Zulieferern) zum Schutz vor Nachahmung,
5. Verträge oder Streuung von Forschung und Entwicklung (unter vielen Wissenschaftlern) mit Kontrolle des wissenschaftlichen Personals.

Schon die folgende Frage 21 vertieft das Thema der Geheimhaltung. “Welche Wege der internen Geheimhaltung wendet Ihr Unternehmen an (oder sollte es Ihrer Meinung nach anwenden)?” Vier Antworten sind vorgegeben:

1. Aufbau einer speziellen Organisationsstruktur für Geheimschutz,
2. Deutliche Kennzeichnung geheimer Geschäftsunterlagen (einschließlich digitaler Speichermedien) mit dem Wort “Geheim”,
3. Beschränkung geheimen Wissens auf den kleinstmöglichen Personenkreis, dabei ausschließen, dass andere Personen an dieses Wissen gelangen,
4. die Geheimhaltungspflicht verantwortlicher Personen durch Entwicklungs-, Dienstleistungs-, Arbeits- oder spezielle Geheimhaltungs-Verträge sicherstellen.

Frage 22 geht dann auf die “Wichtigsten Methoden zum Schutz von Geschäftsgeheimnissen” ein, bietet aber nur drei Antwortmöglichkeiten:

1. durch juristische Methoden Geschäftsgeheimnisse schützen (mit Bezug auf das Gesetz über Technologieverträge oder das Arbeitsrecht),
2. durch wirtschaftliche Methoden Geschäftsgeheimnisse schützen (Mitarbeitern, die bei der Entwicklung und Verwaltung von Geschäftsgeheimnissen mitwirken, wird ein höheres Gehalt oder eine Prämie ausgezahlt; diese Mitarbeiter werden als Mitgesellschafter am Unternehmen beteiligt),
3. durch administrative Methoden Geschäftsgeheimnisse schützen (Aufbau einer Abteilung für Geheimschutz, Unternehmensfremde werden durch Verträge zum Geheimschutz verpflichtet).

Dem insgesamt achtseitigen Fragebogen können noch viele innovative Varianten innerchinesischen IPR-Schutzes entnommen werden. Für deutsche Unternehmen mit Interesse an China dürfte die Auswertung der Umfrage noch interessanter werden. Aus ihr kann man wahrscheinlich erkennen, welche Varianten die erfolgversprechendsten sind.

Um vorab die Ansichten ausländischer Unternehmen zu untersuchen, führen wir auf unserer englischsprachigen Partner-Website www.2ena.org eine Online-Blitzumfrage zu diesem Thema durch.

Helmut Schönleber, Anhui (China), Juni 2006

In der Gründerzeit Mitte der achtziger bis Ende der neunziger Jahre bestand die größte Herausforderung für Privatunternehmen darin, sich gegen behördliche Diskriminierung zu behaupten. Ein typischer Unternehmer war dann erfolgreich, wenn er durch gut gepflegte persönliche Beziehungen die eigentlich widerwilligen Beamten dazu veranlassen konnte, ihren hohen Ermessensspielraum in seinem Sinne auszuschöpfen: er erhielt regelmäßig Aufträge von den staatlichen Großkunden; er konnte ohne formale Außenhandelsgenehmigung im- und exportieren; er zahlte keine oder nur geringe Steuern; er konnte bei staatlichen Banken Kredite aufnehmen, obwohl diese noch gar keine Prozeduren für Kreditwürdigkeitsprüfungen entwickelt hatten; er erhielt Ausnahmegenehmigungen für eigentlich der Privatwirtschaft verschlossene Wirtschaftsaktivitäten. Wie er aber seinen Betrieb führte, war nicht so wichtig.

Heute ist die Privatwirtschaft nahezu gleichberechtigt, zumindest auf höchster politischer Ebene. Die mittleren Beamten haben weniger Ermessensspielraum, die Regeln sind klarer und objektiver geworden. Gegen Vorteilsannahme wird härter vorgegangen. Gute Beziehungen allein reichen heute nicht mehr aus. Ein Privatunternehmer ist heute erfolgreich, wenn er gutes Personal und eine moderne Produktionstechnik hat, mit Produkten und Service die Wünsche der Kunden erfüllt, und wenn sein Betrieb effizient wirtschaftet. Denn heute müssen sich die Privatunternehmen primär nicht mehr gegen die staatliche Bürokratie, sondern gegen einander behaupten.

Mit der Umorientierung haben weitsichtige Privatunternehmen schon vor Jahren begonnen. Einigen hat die Kooperation mit ausländischen Partnern dabei geholfen. Nun entwickelt sich daraus ein Trend, der langsam den breiten Mittelstand erfasst: der Fokus wandelt sich von außen nach innen, von den Rahmenbedingungen auf den eigenen Betrieb, von offensichtlichen Problemen auf verhüllte. Noch immer fehlen Kapital, moderne Technologie, Managementwissen, Auslandskontakt, Fachpersonal. Aber immer mehr Unternehmer erkennen die geringe Arbeitssorgfalt bei sich selbst und den Mitarbeitern als Problem, immer mehr bemerken die eigene Kreativitätsschwäche.

Ein Mangel an Kreativität im Unternehmen kann viele Ursachen haben. Die meisten davon plagen Unternehmen weltweit, aber es gibt auch einige “chinesische Besonderheiten”. Kreative Menschen brauchen Freiraum. Sie brauchen eine Umwelt, die sie nicht ablehnt, sondern fördert, wenn sie etwas anders machen als alle anderen vorher. Die konfuzianische Tradition mit ihrem strengen Hierarchiesystem steht dem entgegen: was der Vorgesetzte oder der ältere Bruder sagt, ist kritiklos und möglichst ohne eigene Gedanken zu akzeptieren. Auch wurden in der jüngeren politischen Geschichte kurze Phasen der Toleranz gegenüber Kreativität und Vielfalt immer wieder von Phasen der Ausrichtung auf gesellschaftlich konformes Verhalten abgelöst. Zwei Generationen haben intensiv erlebt, dass Kreativität keine nützliche Charaktereigenschaft ist. Die Talente der vielen potentiell kreativen Menschen in China wurden nicht gerade ermutigt.

Die relative Kreativitätsschwäche chinesischer Unternehmen ist der Hauptgrund für die geringe Durchsetzbarkeit von Urheberschutzrechten, für plötzliches Überangebot auf einzelnen Märkten (nachdem ein Unternehmen ein erfolgreiches Produkt herausgebracht hat, das dann sehr schnell von vielen anderen Unternehmen kopiert wird), und für das große Misstrauen, das Unternehmer der selben Branche und Region einander entgegenbringen.

Auch den meisten chinesischen Privatunternehmern fällt es schwer, kreative Menschen zu akzeptieren. Sie sind stolz darauf, im eigenen Betrieb das letzte Wort zu haben, und dulden nur zögernd andere Meinungen. Gute Ideen nehmen sie zwar gerne auf, aber nur wenige waren bisher bereit, im eigenen Unternehmen ein Klima zu fördern, das gute Ideen hervorbringt. Viel lieber schauen sie auf neue Ideen aus dem Ausland. Sie sind aber echte, gewinnorientierte Unternehmer, die daran gewöhnt sind, Probleme anzupacken und zu lösen, wenn sie nur erst einmal erkannt sind.

Mit dem Trend zur Konzentration auf die Lösung innerbetrieblicher Schwächen wird auch der Kreativität langsam mehr Freiraum gegeben. Wege zur Förderung der Kreativität müssen aber noch gefunden, entwickelt und umgesetzt werden. Auch dabei schauen die mittelständischen Unternehmer und die sie vertretenden Wirtschaftsverbände und Industrie- und Handelskammern zunächst auf Ideen und Methoden aus dem westlichen Ausland.

Artikel von Helmut Schönleber in “China Contact” 12/2001

In most cases, a business angel is not only philanthropic. He also enjoys the thrill of a new challenge, he likes to make good use of his well-developed skills, and by investing in a new and promising enterprise, he also aims at making some profit. Therefore, business angels networks not only help to increase the success quota of business startups, they also help senior personages to keep participating actively in social life and to receive commendation from society for it. Governments and international organizations recognize the valuable role of business angels networks for an efficient and honorable change of generations both in economy and society in general. Many of them support the networks (thus not the individual business angels) financially.

In China, there are no such business angels networks as in the USA or in Europe. But senior personages contributing with their experience to important decisions after their retirement is a tradition here, too. This usually happens on an individual and informal basis, and its focus is on the family and close friends.

Since the history of private entrepreneurship is short (starting in the mid-eighties), the number of retired entrepreneurs who would be ideal business angels is very small. However, many still energetic government leaders were ruled into retirement during recent years, and more to come. Although they don’t have much money to invest in business startups, their connections and managerial skills could be extremely valuable for many young enterprises.

Business startups in China need mentors such as business angels just as urgently as their colleagues in the West. Senior personages in China need the respect of society for their truly valuable contributions after retirement even more then their colleagues in the West. As a platform for society’s commendations and to serve these two demands, China needs to establish a network for business angels.

We currently help to prepare such a network. We are aiming for a platform mainly to be used within China, but also allowing for foreign business angels to support business startups in China and vice versa. Our format will be trilingual Chinese, English, and German. If you are interested in contributing to the establishing of this business angels network in China, please contact us at angels@suisu.cn. Become a business angel for “China Business Angels!”

In dem Artikel werden ausserdem 21 konkrete Projektvorschläge der Handelskammer von Anhui erläutert, die einerseits aus direkten Dienstleistungen für KMU, andererseits aus Trainingsmassnahmen zur Verbesserung des Management-Niveaus von Kammerführungskräften bestehen.

Schönleber hatte beim Symposium einen zweistündigen Vortrag in chinesischer Sprache gehalten, in dem er die auf Auslandsmärkte ausgerichteten Entwicklungsstrategien deutscher Unternehmen erläuterte. Ein wichtiges Element dabei sei die Einstellung auf die Geschäftsgewohnheiten im anderen Land. Den chinesischen mittelständischen Unternehmern gab er Hinweise, wie sie sich umgekehrt ebenfalls interkulturell auf ausländische Kunden und Geschäftspartner einstellen können.

Die Folienpräsentation zum Vortrag kann im Adobe PDF-Format unter der E-Mail-Adresse hs@2ena.org angefordert werden.

© Foto: Han Xiaohong

Unverständnis zeigte der Staatssekretär über die Äußerungen des CDU-Abgeordneten Eckart von Klaeden. Der hatte gefordert, die Entwicklungshilfe solle sich auf das konzentrieren, was für die gesellschaftliche Entwicklung Chinas wichtig sei.

Stather erklärte: „Diese Äußerung von Herrn von Klaeden zeigt, wie wenig er von unserer Zusammenarbeit mit China weiß. Vor allem die Unterstützung des Rechtssystems, der Rechtsstaatsdialog und die Förderung der Menschenrechte sind Schwerpunkte unserer Kooperation mit China.“ Es sei schade, dass so manche CDU-Politiker konkrete Erfolge leichtfertig durch populistische Parolen in Frage stellen. Der Besuch der Bundeskanzlerin in China werde die Bedeutung der Kooperation mit China erneut deutlich machen.

Quelle: Pressemeldung des BMZ

What are successful development strategies for private small and medium-sized enterprises in China? What should they learn from similar enterprises of developed countries? How important is a good strategy on corporate social responsibility (CSR) for private enterprise development? These and many more questions were discussed during a symposium from May 21 to 23, 2006 in Hefei. Over 100 well-known entrepreneurs from all over the province participated in the event, which was jointly organized by Anhui General Chamber of Commerce, the Anhui Association on Private Economy Research, the Government of Baohe District, and the Sino-German SME Promotion Project.

© Foto: Han Xiaohong

To date, eight provincial governments have also published their 11th Five-Year-Plans on the Chinese internet. The five-year-plans are still the main development strategy papers of the party and the government for each region. These plans may thus be used to analyze the different focus and special emphasis put on certain industries, on private enterprises, small and medium-sized enterprises, and business membership organizations.

A simple word frequency analysis of the different published provincial plans indicates the wide variety in the importance governments put on market forces, the private economy, chambers of commerce and business associations. Our table shows the total number of Chinese characters in the regional plans (tables, charts, boxes, indices etc. have been removed to increase comparability), and the word frequencies for “small and medium-sized enterprises” (中小企业), “non state-owned” (非公有制), and “chamber of commerce” (商会 or 工商联).

Das Förderprogramm wird von der Deutschen Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH und der SEQUA gGmbH im Auftrag der deutschen Bundesregierung implementiert. Die Analysen und Empfehlungen der Gutachter werden Mitte Mai dem Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung (BMZ) vorgelegt.