Download - China Brief November 2011

Transcript
Page 1: China Brief November 2011

Your Feedback, Our Responses

AmCham-China's 2011 Membership Satisfaction

Survey Highlights

HR strategies for branding, recruiting and retaining

Highlights from the chamber's annual ball

Win with China10 Years into the WTO

Sustainable investment:what you need to know

Inside:

No

ve

mb

er

2

01

1

vo

lu

me

1

9

Nu

mb

er

9

ww

w.

Am

ch

Am

ch

iN

A.

or

g

Page 2: China Brief November 2011
Page 3: China Brief November 2011
Page 4: China Brief November 2011

20

v o l u m e 1 9 N o . 9 N o v e m b e r 2 0 1 1

10 Your Chamber, Your Feedback, Our Responses

highlights from Amcham-china’s 2011 membership Satisfaction Survey, and where we go from here

By China Brief

Vanishing Glaciers of the HimalayasThe gradual warming of the himalayas could affect the lives of millions of people. long-time china watcher orville Schell explains how.

By China Brief Insight

15Chamber Urges China to Repeal Restrictions on International Law FirmsA statement by the American Chamber of Commerce in the People's Republic of China

13HR strategies for branding, recruiting and retaining how to leverage human resources in china.

By Matthew Bruno

Winning With China: 10 Years into the WTO

how manufacturing leads to new business partnerships

By Richard P. Lavin

17

self-identi�ed as Chinese citizens

have been AmCham-China members for seven or more years

rated AmCham-China’s events as valuable

of respondents self-identi�ed

as corporate members

self-identi�ed as having a “senior/principal” level

of decision making within their

company

joined to engage with the Chinese and US govern-

ments on policy issues

joined to increase access to events that could

enhance their industry expertise and professional

skills, and provide informa-tion to make them

more competitive

rated AmCham-China’s government advocacy

and White Paper as valuable

rated AmCham-China’s networking opportuni-

ties as valuable

rated AmCham-China’s China Brief monthly

magazine, China Wire daily news summary, and China Bulletin weekly e-newsletter as valuable

joined to expand profes-sional and social

contacts

have been AmCham-China members for

three years or less

26 respondents

170 respondents

69 respondents

62 respondents

events

government relations

events

49 respondentsinformation

77%

27respondents

74% 52%

70%69%

40%

62%

business visa program

advocacy

60 respondentsnetworking

73%W

HAT W

E ARE D

OIN

G W

ELL

WHO OUR MEMBERS ARE WHY YOU JOINED

WHERE YOU WOULD LIKE US TO IMPROVE

RATE

D A

S V

ALU

ABL

E

Page 5: China Brief November 2011

Maximizing Membership

At this time of year, AmCham-China is hosting many of our signature annual events. We recently celebrated our ninth annual American Ball (enjoy pictures replete with boats, par-rots and snakes on page 30) and be sure to read our back page to learn how you can get involved with the charities chosen to receive funds raised from this year’s Ball. The chamber’s Human Resources Conference is on November 4 (for HR branding and retention tips see page 13), our Board of Gover-nors election is in progress and we will hold our Appreciation Dinner for government officials on December 2.

We look forward to seeing you at these events, and your feedback is valued and always welcome. AmCham-China re-cently conducted our 2011 Membership Satisfaction Survey to better understand how we are doing and where we can im-prove. In this issue China Brief shares the survey’s highlights as well as how you can maximize the benefits of your mem-bership, get up to speed on the latest chamber developments, and find out where the chamber plans to go from here.

In the survey, many members showed an interest in learn-ing more about products, services and best practices through the chamber. As a result, AmCham-China is introducing a new event platform, Member-to-Member, or M2M.

Now companies can tailor events around their products and services, or their unique insights and resources. M2M events are sponsored by a single company to share the latest information about their offerings, technologies or expertise with AmCham-China members. Please contact Connie Zhao: [email protected] for more information.

The new M2M event platform is a testament to collaborat-ing with you—we want to ensure our programming is tailored to suit your needs. Please do keep the feedback coming! Your ideas, thoughts and suggestions help the chamber to chart our future course. See our website for staff contact information or stop by our office anytime to share your input. We look for-ward to working with you and seeing you soon.

Megan Rhodes Editor

Article Submisson Policy:China Brief actively seeks article submissions. We give strong preference to AmCham-China members. Full submission details are available on AmCham-China’s website www.amchamchina.org. Please send letters and submissions to: [email protected].

The 2011 American Ball Charities

who they are and how you can get involved

7 Chairman'sMessage 8 ChinaBriefFlashback24 KnowYourWorkingGroups TianjinChapter’sRealEstateCommittee24 WorkingGroups Whattheydoandalistingofleadership25 Events Aroundupofthechamber’sactivities27 SpecialEvents AmbassadorLockeToursChamber’sChapters AmCham-ChinaHosts“InvestUSA”Forum TianjinChapter’sFallClassicGolfTournament AmericanBall2011,CastawaysMoored!35 NewMembers AmCham-China’snewestadditions36 MemberSpotlight JoleneKinser

38

30

22 Sustainable Investmenthow to address china’s top environment, social and governance challenges

By Adam Lane

Castaways Moored!highlights from the chamber's annual ball

Page 6: China Brief November 2011

6 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

Editorial Staff

vP, commuNicATioNS

Matthew WislacommuNicATioNS DirecTor

K.C. SwansoneDiTor

Megan RhodescreATive mANAger

Zhang HuiASSiSTANT DeSigNer

Jin Pengcover DeSigN

Zhang HuicoNTribuTorS

Jon AbramovicBarbara Chen O'ConnellRachel DodsworthRyan DutcherMichelle GuoJulia HoweMariel MontuoriBritten PiedrasantaElizabeth RowlandCaroline SunConnie Zhao

Forsponsorshipinformation,pleasecontactChristine Yuat(8610)8519-0832ore-mail:[email protected].,Ltd.isasponsorshipcoordinatorforChinaBrief.(8622)5885-2812

China BriefcontentdoesnotnecessarilyreflecttheopinionsorpositionsofAmCham-ChinaoritsBoardofGovernors.©2011,TheAmericanChamberofCommerce-thePeople’sRepublicofChina.Allrightsreserved.

Dalian ChapterchAirmAN

Tony BalowIntel

vice chAir

Preston KuoJaylandLearning

ec memberS

Tim FrosellGoodyear

Dorman KwanPWC

Leif RogersBankofJinzhou

Patrick WoockETTInvestments

Tianjin ChapterchAirmAN

Michael HartJonesLangLaSalle(Tianjin)

vice chAir

George GrosshansLDITianjin-TianjinMTIInternationalSchool

ec memberS

Amy ChanRenaissanceTianjinHotel

Natalie EbdenInternationalSOS(TianjinClinic)

Lucy LiuTheExecutiveCentreTianjin

Vincent LoDeloitteToucheTohmastsuCPALtd.

Hank MartinHank’sSportsBarandGrill

Jon ReedTianjinCustomWoodProcessingCompany,Ltd.

Central China Chapter chAirmAN

Janie CorumAlohaBusinessServices

vice chAir

Qiqing JiangCumminsEastAsiaR&DCo.Ltd

ec memberS

Steve CarpenterDiamondPower

Jun Hu GE(China)Co.,Ltd.

Herb MittlerWuhanYangtzeInternationalSchool

Scott ShawLDiTraining

AmCham-China Board of Governors

AmCham-China Chapter Executive Committees

chAirmAN

Ted DeanIndividual

chAirmAN emeriTuS

John D. Watkins, Jr.GE(China)Co.,Ltd.

TREASURER

Gus KangDeloitteToucheTohmatsu

GEnERALCOUnSEL

Nathan G. BushO'Melveny&MyersLLP

vice chAirSMichael CrainIndividual

Gregory GilliganAPCOWorldwide

Wang-Li MoserIntelChinaLtd.

goverNorS

Matthew EstesBabyCareLtd.

Ningke PengDowChemicalChina

Timothy StratfordCovington&BurlingLLPBeijingRepr.Office

Barry FriedmanWal-MartChina

Malone MaMetLife

David WangBoeingChina

Jim GradovilleIndividual

George HuangChubbInsurance

Nina HsuLTIAssociates

Lester RossWilmerCutlerPickeringHaleandDorrLLP

AmCham-China Leadership

AmCham-Chinaisamember-ledorganization.Thechamber’ssuccessisrootedinthevision,hardworkanddedicationofitsmembers,manyofwhomareleaderswithintheircompaniesandthebusinesscommunity.AmCham-Chinaisfortunatetohaveanexceptionalgroupofmemberswhocontributetheirtalentsandtimetotheorganization.Throughtheireffortsthesevolunteerleadersmakeitpossibletoprovidetheinformationandintelligence,businessservices,networkingopportunitiesandeventsthatbenefitallmembersandtheadvocacyinitiativesthathelpshapethebusinessenvironmentinChina.

AtAmCham-China’snationallevel,thechairman,threevicechairsandtengovernorscomprisetheorganization’sBoardofGovernors.AllvotingmembersofAmCham-ChinaareeligibletoparticipateinanannualelectiontoselecttheBoard.Additionally,membersatthreeAmCham-ChinaChaptersfromaroundthecountry(CentralChina(Wuhan),DalianandTianjin)eachhavetheirownlocalexecutivecommittee(EC).TheseECsensurethateveryChapterhasanagendathatisresponsivetotheneedsoflocalAmCham-Chinamembers.

There are many opportunities to get involved with AmCham-China. Interested members are encouraged to contact the chamber’s volunteer leadership or professional staff, or one of the more than 40 working groups listed later in this magazine and on AmCham-China’s website (amchamchina.org).

Page 7: China Brief November 2011

Ted Dean

Amcham-china chairman

Your Platform for a Stronger Advocacy VoiceAs our 20th anniversary year draws to a close, the members of AmCham-China can reflect on some important gains on the advocacy front in 2011. These are successes of the strong, effective government relations platform that we have built over the years.

One of our more strategically valuable initiatives in recent years has been a push to expand the number of American Business in China White Paper (White Paper) follow-up meetings we hold with Chi-nese government officials. This year we have met with policymakers in over 20 Chinese government ministries and agencies, and in key provinces/regions and cities where our members have a strong or growing business presence.

The meetings take place after we have first sent copies of the relevant White Paper chapter to participating officials, providing them with an outline of our members’ concerns related to a particular industry. Chamber members then join with our government relations team in face-to-face exchanges with key decision makers in their industry. We have found that White Paper meetings provide for frank and often productive discus-sions between regulators and businesspeople with practical operating experience in a given sector.

More than meetings, our members look for progress. The chamber has consistently been among the strongest voices calling on Beijing to repeal policies that purport to promote indigenous innovation, though in practice often serve to discriminate against foreign companies. We were pleased to see some initial signs of progress in this area, with the central government’s announcement earlier this year that it would repeal three measures underpinning the policy. However, we will continue to monitor implementation to gauge the practical effect of the repeal and also to see how the shift is playing out at the provincial and local level.

To be sure, our member companies continue to face new challenges in terms of government policies. One that has recently attracted a great deal of attention is the social insurance law, introduced earlier this year with little advance notice, which will substantially raise the effective tax burden for companies with foreign employees. The new financial obligations imposed by the law could be considerable for some employers. But an even more troubling issue is that at present, Chinese policymakers have not yet de-vised mechanisms to allow expats to actually collect on social insurance benefits. We are actively seeking to engage with both central and local government officials to make sure that our members' concerns are heard, and we will continue to press for practical solutions that would help to alleviate these problems.

At the same time we have advocated for members' interests in Beijing, we have also been developing new contacts at the provincial and local level through our highly popular—and often sold-out—provin-cial investment trips. Our provincial trips, which typically last three to four days, offer a time-effective way for members operating there or considering business expansion to gain an overview of the business climate in fast-growing second-and third-tier cities, and just as important, to meet local government leaders there. This year the chamber organized visits to Sichuan, Zhejiang, Inner Mongolia and Fujian provinces/autonomous region.

Looking towards Washington, the chamber has been a strong and consistent voice of opposition to the currency bill now before the US Congress. In the spring, AmCham-China lead a delegation of mem-bers to Washington on its annual DC Outreach trip.

Meanwhile, we are also continuing to work closely with the US Embassy and have hosted a number of high-level US officials. Our highest-profile guest this year was US Vice President Joe Biden, who met with a select group of chamber members and discussed the local business environment with them during his visit in August. In May, we teamed with the US China Business Council to co-host one of the biggest visits by a Senate delegation in recent memory—a total of 10 Senators—at a lunch. And these are just some of the higher-profile events. We’ve also organized meetings with a growing stream of individual politicians from the US, including many state governors seeking to attract Chinese investment and culti-vate closer commercial ties with China.

Our ongoing efforts to develop long-term relationships in Beijing and Washington, DC have paid off as we have become a valued source representing the views of the business community to both sides in advance of bilateral talks (including the annual meeting of the Joint Commission on Commerce and Trade, coming up soon). In the future, we’ll work to deepen the gains we have already made in govern-ment relations. By presenting a unified front, we hope to magnify the voices of our individual member companies and do more to improve the business climate in China.

Page 8: China Brief November 2011

8 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

China Connect Video Interviews:In this special edition of China Connect, AmCham-China speaks with the Chairman of the US-China Economic and Security Review Commission William Reinsch. In the run-up to the Commission’s annual report to Congress on the national security implications of the US-China bilateral trade and economic relationship, Reinsch traveled to Beijing to meet with members of the business community. In this video interview, he shares some context for the report and discusses key issues affecting US-China relations.

Podcasts:Tom Orlik, author of Understanding China’s Economic Indicators, explains which numbers deserve attention, which merit skepticism, and how investors can get an early read on where the economy is heading.

A surprising half of all students in one Minnesota public school district have enrolled in an innovative Chinese-language immersion program. School administrators weigh-in on why it’s a success.

There’s speculation Beijing may soon overhaul a corporate structure that has allowed foreign investors ownership in Chinese Internet companies (which are technically off limits). Paul Gillis, who teaches accounting at Peking University, explains.

Longtime China watcher Orville Schell, now at the Asia Society, discusses “Coal+Ice,” a new photography exhibit opening in Beijing that documents the rapid melting of the Himalayan glaciers.

Find us at:

Search for: AmCham-China

iTunes

Please see AmCham-China's "Multimedia" web page to access our podcasts and China Connect videos.

In China Brief Flashback, we revisit the events and issues AmCham-China members experienced 10 years ago. Here are a few highlights from November 2001:

TalkingTrash

N ovember’s 2001 cover story, “China’s Growing Garbage Crisis,” highlighted the per-

vasive problem of dumping untreated waste. With a lack of adequate treatment and disposal facilities, the amount of hazardous waste in China exceeded the country’s capacity to dispose of it safely.

In the article, Husayn Anwar, a member of AmCham-China’s Environ-mental Health and Safety Forum (now known as the Environmental Industry Forum), cautioned that incinerators would do more harm than good without the proper equipment or management. Despite warnings from industry experts, the article noted that China’s waste man-agement approach was shifting from landfills to incinerators. Experts es-timated that incinerated waste would account for 35 percent of managed waste by 2015.

The“WhiteHouseKnock”

A t AmCham-China’s 2001 annual meeting, outgoing chairman Tim Stratford discussed the Board’s priorities over the past year, in-cluding preparing for China’s entry into the WTO and expanding

member services.

In addition to welcoming the new Board of Governors and toasting the accomplish-ments of outgoing members, AmCham-China members performed several song and dance numbers at the Kerry Centre. Highlights included “Heard it though the Grapevine” and a creative twist on “Jail-house Rock” titled “White House Knock.”

The evening’s finale elicited audience participation with a performance of “WTO,” sung to the music of the Village People classic “YMCA.”

To access the full China Brief archive, please go to: www.amchamchina.org/chinabrief.

China Brief's November 2001 cover story

Page 9: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 9

Page 10: China Brief November 2011

1 0 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

A s a member-led organization, Am-Cham-China always welcomes feedback from our members. We conduct a regular formal survey to garner your insights on how we are

doing and to determine how we can best serve you in the future. Thank you to our 354 members who took the time to complete the survey this summer and provide this valuable feedback. Here are a few highlights from the 2011 results:

Your Chamber, Your Feedback, Our ResponsesHighlights from AmCham-China’s 2011 Membership Satisfaction Survey

self-identi�ed as Chinese citizens

have been AmCham-China members for seven or more years

rated AmCham-China’s events as valuable

of respondents self-identi�ed

as corporate members

self-identi�ed as having a “senior/principal” level

of decision making within their

company

joined to engage with the Chinese and US govern-

ments on policy issues

joined to increase access to events that could

enhance their industry expertise and professional

skills, and provide informa-tion to make them

more competitive

rated AmCham-China’s government advocacy

and White Paper as valuable

rated AmCham-China’s networking opportuni-

ties as valuable

rated AmCham-China’s China Brief monthly

magazine, China Wire daily news summary, and China Bulletin weekly e-newsletter as valuable

joined to expand profes-sional and social

contacts

have been AmCham-China members for

three years or less

26 respondents

170 respondents

69 respondents

62 respondents

events

government relations

events

49 respondentsinformation

77%

27respondents

74% 52%

70%69%

40%

62%

business visa program

advocacy

60 respondentsnetworking

73%

WH

AT WE A

RE DO

ING

WELL

WHO OUR MEMBERS ARE WHY YOU JOINED

WHERE YOU WOULD LIKE US TO IMPROVE

RATE

D A

S V

ALU

ABL

E

* Respondents=write-in responses

Page 11: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 1 1

New TreNds aNd developmeNTs

• Increasing preference for electronic versions of chamber publications including the American Business in China White Paper (White Paper).

• Growing opportunities for new information sharing and net-working opportunities for specific job functions at our member companies (read about our new event platform, M2M, below).

• A reinvigorated Public Policy Development Committee (PPDC)—the in-house think tank for advocacy issues that also drives the chamber’s White Paper development—is now meeting on a monthly basis with 30-plus members in addition to representatives from the US embassy regularly in attendance.

How You CaN make THe mosT of Your membersHip

Want to help your company succeed in China? Interested in sup-porting US-China relations? • 159 respondents find the White Paper to be AmCham-China’s

most important government relations activity. • If you are interested in policy issues, stop by the next PPDC

meeting. To get involved with the PPDC and the White Paper, email Elizabeth Rowland: [email protected].

• Join your industry’s working groups (please see page 24).• Join one of the chamber’s provincial trips, which offer excellent

networking opportunities and critical on-the-ground insights for foreign companies considering investment and expansion beyond first-tier cities. Please email Breeze Wang: [email protected] for more information.

GoiNG forward, we plaN To

• Continue to enhance programming through targeted events with high-level expert speakers, and organize more events with Chinese experts and opinion leaders.

• Develop more functional and industry specific events. • Re-energize forums and committees (we hosted a well-at-

tended forum and committee Chairs and Co-chairs meeting on September 15, and outlined a plan for action—stay tuned for more to come!).

• Deepen advocacy efforts on issues of concern to members, including the current social insurance tax law.

• Request face-to-face meetings with key government contacts, and invite more government officials to speak with members.

• Provide networking opportunities for members with central and provincial government officials.

• Explore more ways to deliver electronic information.• Streamline and sharpen the White Paper process.• Launch a new event platform: Member-to-Member (M2M),

which allows companies to sponsor events, sharing their latest information about offerings, technologies or expertise with AmCham-China members.

We look forward to continuing to improve our advocacy, in-formation, networking and business support services, working together to help you and your company succeed in China. And we always want to hear from you. Please call 8519-0800, email [email protected], or speak to us the next time you stop by the chamber’s office or see a staff member at an event.

Page 12: China Brief November 2011

1 2 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

Page 13: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 1 3

Page 14: China Brief November 2011

1 4 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

Page 15: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 1 5

D ue to a number of severe restrictions, international law firms in China face significant challenges in China’s legal market. While these policies are directed against international law firms, those

hardest hit by these restrictions are Chinese lawyers, the Chinese legal system and clients of both interna-tional and domestic PRC firms. We urge the PRC gov-ernment to revoke or amend these restrictions in order to open the market in accord with prevailing interna-tional practice.

Under current regulations, lawyers qualified to provide advice on the laws of the PRC are not permitted to join international firms. If they do join, their Chinese law license which authorizes them to practice PRC law will be suspended during their tenure with the international firm.

This regulatory restriction prevents Chinese citizens who have spent many years at university studying the Chinese legal system and passing the PRC bar exam from pursuing a career as a practicing

PRC lawyer and partner (owner) in any of the many international law firms from around the world. The ability to practice PRC law within an international firm would afford Chinese lawyers broader employ-ment opportunities, allow them to gain experience in international best practices in how to best provide advice and assistance to clients, and enable them to provide more seamless and better advice to both foreign clients seeking to do business in China and to Chinese companies seeking to do business abroad. Thus, both foreign and Chinese clients stand to benefit significantly from a less protectionist regime.

If PRC lawyers were free to shift from interna-tional to domestic firms and vice versa, the quality of legal services would be improved and best practices more widely shared among all firms, international and domestic. Chinese law would also become a more acceptable choice of law to govern contracts around the world as international firms become more familiar with PRC law.

Currently, PRC law firms can hire foreign lawyers

Chamber Urges China to Repeal Restrictions on International Law Firms

A statement by the American Chamber of Commerce in the People's Republic of China

www.fo

tolia

.com

Page 16: China Brief November 2011

1 6 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

from many jurisdictions and have those lawyers provide legal advice on the law of their home countries. They can do so here in China or through overseas offices in global centers like New York or London. While we welcome the development and expansion of local firms, we also urge the PRC government to permit international firms to be able to do the same in China, both because it is in China’s own interest and on the basis of fairness and reciprocity.

In addition to the regulations that restrict PRC lawyers from associating with international firms, other regulations further discriminate against international firms to the detriment of their clients, both foreign and domestic. For example, in several cir-cumstances international law firms are prohibited from accom-panying their clients in meetings with government officials or administrative proceedings, even though there are no restric-tions on attendance by other professionals and advisors or by PRC lawyers. This is of special concern with respect to meetings before the Ministry of Commerce regarding anti-monopoly merger reviews, but has also been an issue with other PRC agencies and ministries. Further examples of discriminatory practices are the prohibition on the hiring of newly qualified lawyers by international firms, the long approval processes and mandatory waiting periods to establish a first office and to open additional ones and the restriction on individual partners being able to serve as the managing partner of multiple offices.

With respect to legal services, China’s regulations are far more restrictive and its market more closed than neighbors such as Japan and than the Hong Kong SAR, as well as major trading partners such as the US and the EU.

To some extent, the challenges highlighted in this statement are the result of the enormous successes that have resulted from the partnerships forged between Chinese and foreign business in recent years. While this process has at times been very difficult, stronger integration has generally benefited all parties and a great deal of progress has been made in establishing a strong and sustainable rule of law in China. Further gains will result from liberalization of the legal profession to bring China in line with global trends. Not only would the law firms and individual lawyers benefit, but companies would receive better and more efficient advice, Chinese lawyers would prosper and become more influential on the international stage, Chinese law would gain more acceptance around the world, and Chinese society would benefit from better trained, more professional lawyers.

For more information, please contact Julia Howe: [email protected]

If PRC lawyers were free to shift from international to domestic firms and vice versa, the quality of legal services would be improved and best practices more widely shared among all firms, international and domestic.

Page 17: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 1 7

T his December marks the tenth anniver-sary of China’s accession to the World Trade Organization (WTO). Over the past decade, China’s manufacturing industry has seen tremendous growth. The nation

has become a manufacturing powerhouse in terms of both production volume and revenue, with eightfold revenue growth from RMB 48 billion in 2001 to RMB 400 billion in 2010.

The Chinese government has now set its sights on the next set of goals: moving the industry up the value chain. In a bid to transform Chinese manufacturing from the largest to the strongest, the 12th Five-Year Plan calls for:

• upgrading manufacturing;• introducing technological innovations; and • promoting sustainable development of the industry.

This ongoing transformation offers excellent business opportunities for manufacturing companies, including Caterpillar. Read on to learn how Caterpil-lar plans to play a role in the process, as a manufac-turing leader known for its innovative products and long-term partnership with China.

1. upGradiNG wiTH CHiNa

In examining China’s development in the past 10 years, it is clear that the business reforms that accom-panied entry to the WTO were critical in the success of the manufacturing industry. Caterpillar benefited from the liberalization along with its Chinese manu-facturing counterparts. With its China headquarters in Beijing, Caterpillar now employs a staff of more than 9,000 employees nationwide and has seven new man-ufacturing facilities under construction.

However, maintaining this rapid growth is a challenge. The Chinese government’s solution is to promote the transformation and upgrade of the man-ufacturing industry through technological innovation. A new level of partnership will be necessary to ensure the strategy succeeds, and Caterpillar is committed to being China’s long-term partner. All we need is a level playing field.

Building a level playing field requires transparency in policies and regulations. Only then can companies be assured that they will reap the rewards for bringing their most cutting-edge technologies to China. It is critical for creating an environment where innovation and creativity thrive.

It is also important that China maintain a commit-ment to opening up markets. As a case in point, we have noticed that more small and mid-range types of equipment are being moved to the “restricted” category in the updated draft of the 2007 version of Catalogue Guiding Foreign Investment. This has raised concerns about whether the scope of business may gradually be narrowed for international companies in China. We hope that this is not the intent of this update, because restricted markets do not breed the healthy competition required to maintain industry vitality (please see the construction equipment man-ufacturing chapter in the American Business in China White Paper for more details: www.amchamchina.org/whitepaper).

However, there is reason to be optimistic. A recent encouraging example is President Hu Jintao’s com-mitment to decouple government procurement and indigenous innovation. We look forward to the imple-mentation of this policy.

Winning with China: 10 Years into the WTOHow manufacturing leads to new business partnerships

By Richard P. Lavin

Source: www.wto.org

Page 18: China Brief November 2011

1 8 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

2. THe power of parTNersHips

Ten years into China’s accession to the WTO, economic development requires greater emphasis on innovation through partnerships. The manufacturing industry faces the challenge of upgrading production methods and moving up the value chain. Caterpillar is con-stantly developing and refining technologies to make its products better and to help its customers. In 2010, Caterpillar invested US $1.9 billion in research and de-velopment, which translates to substantial customer benefits.

We are proud of how our contributions in technology transfer have helped in the development of the Chinese machinery industry. Our technology transfer agree-ments in 1987 marked a significant milestone for Cater-pillar and for the development of the Chinese machinery and engine industries. We signed agreements with 12 state-owned Chinese companies in 10 provinces.

In the past several years, Caterpillar has estab-lished cooperation with leading Chinese companies, Yuchai and AVIC Liyuan, to accelerate the devel-opment of remanufacturing and hydraulic compo-nents. Earlier this year, Caterpillar and Shaanxi Fast Gear Co., Ltd. formed a joint venture to manufacture drivetrain systems and other components for Cater-pillar machinery to produce a full line of on-highway

automatic transmissions. These efforts are merely the latest in an ongoing Caterpillar strategy to develop partnerships with leading Chinese companies as we deploy our comprehensive business model.

3. remaNufaCTuriNG susTaiNabiliTY

As the WTO encourages trade and cooperation among nations, the best solutions for sustainable develop-ment will come through partnerships. Part of the 12th Five-Year Plan involves implementing energy conser-vation programs and reducing emissions. These are areas where it makes sense to partner with foreign firms with experience. The US and Europe have sig-nificant experience in leveraging technology to meet ever-rising emissions standards.

In China, by working with a government-led alliance, Caterpillar introduced remanufacturing tech-niques that can reduce energy usage up to 85 percent compared with traditional manufacturing processes. Remanufacturing is now an encouraged area of in-vestment in China.

Caterpillar has fully cooperated with several provinces in sustainable development projects. In 2008, our subsidiary Solar Turbines worked with Shandong Jinneng to help it recycle coke glasses into much-needed energy. As a result, Jinneng became the first company outside the US to win the Environmen-tal Protection Agency’s (EPA) International Combined Heat and Power (CHP) Award. The EPA estimates that this CHP system effectively reduces carbon dioxide emissions by 540,000 tons per year.

Caterpillar is also an active member of the US-China Energy Cooperation Program (ECP), one of AmCham-China’s three cooperation programs, and it serves as the co-chair of the ECP’s Decentralized Power Gen-eration & Combined Cooling, Heat & Power Working Group. This working group supports cities where natural gas is (or will soon be) available to achieve their energy conservation and emissions reduction goals by applying high-energy efficient systems.

As a member of the WTO, China has undergone more development in the past 10 years than many could have anticipated or believed possible. Going forward, in the next 10 years, the most successful companies will be those that integrate sustainability into their core business. That is what we are doing at Caterpillar, and we are committed to helping our partners and customers in China do the same.

Richard P. Lavin is the group president for Cater-pillar Inc.

To read about AmCham-China and the WTO over the past 10 years, please see: www.amchamchina.org/wto

To get involved with the ECP, please email: [email protected]

WTO: FAST FACTSThe World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. Established on January 1, 1995 by the Uruguay Round negotiations, the WTO aims to help producers of goods and services, exporters and importers conduct their business.

WTOfunctionsinclude:

• Administering WTO trade agreements

• Serving as a forum for trade negotiations

• Handling trade disputes

• Monitoring national trade policies

• Offering technical assistance and training for developing countries

• Cooperating with other international organizations

The WTO has 153 members, representing more than 97 percent of the world’s population, and 30 observers, most seeking membership. The WTO is governed by a ministerial conference, meeting every two years; a general council, which implements the conference's policy decisions and is responsible for day-to-day administration; and a director-general, who is appointed by the ministerial conference.

Page 19: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 1 9

FormoreinformationabouttheCenterStagePackage,pleasecontactChristineYuat(8610)[email protected]

Now companies can have the chance to become AmCham-China’s EXCLUSIVE event

sponsorship each month through theCenterStagePackage.

With the CenterStagePackage, your company will be seen by AmCham-China’s

exclusive audience through:

Banner in initial event announcements.

Logo, banner and title sponsorship for one month in

the Tracker e-mail (8 times/month).

Exposure at the registration area of most events that take place during the

sponsored month· A table with sponsorship signage · Option to have a pull-up banner

· Option to have brochures or other printed pieces

For Non-Member

For Member

RMB 24,000/monthRMB20,000/month

Page 20: China Brief November 2011

2 0 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

INTER VIEW

A series of striking photos, now on display at the Three Shadows Photography Art Centre in Beijing, document the dramatic melting of

Himalayan glaciers over the past century. The images are part of a broader exhibit of documentary photography—“Coal+ Ice,” sponsored by the Asia Society—that documents the environmentally devas-tating results of the heavy use of coal worldwide. The show, which includes the work of 30 photographers from around the world, will run from September 24 to November 28.

We spoke with the exhibit’s executive producer, Orville Schell, about the envi-ronmental impact that melting glaciers will have in China. Schell, who directs

the Asia Society’s Center on US-China Relations, warns that the gradual warming of the Himalayas could disrupt water flows, agriculture and life for the millions of people who live downstream.

Q Can you tell us a little about the photos of glaciers in the exhibit, how they were taken and what they show us?

A I had a friend with whom I’d made several documentary films, a mountain-eer named David Breashears. He’d started, just in a very cursory way, to notice in his many trips to the Himalayas —Pakistan, Nepal, Tibet, Bhutan—that the glaciers he first encountered 25 years ago were changing. So he began to do matched photographs. He would take

photos of glaciers, mostly taken by Europeans from 75 or 100 years ago, and he would go back to exactly the same place at the same time of year, wait for the clouds to disappear, and reshoot the glacier. So what people will see in the photograph show at Three Shadows are these comparisons [displayed] on a huge screen that must be 60 to 80 feet long. You’ll see these huge white [areas from images of] the glacier 75 to 100 years ago and then what it looks like now, and you’ll see the comparative loss of ice mass.

So this is having and will have a very profound effect on the flows of all the major river systems of Asia, because each of the rivers—the Indus, Amu Darya, Brahmaputra, Ganges, Salween, Sutlej, Yangtze, Mekong, Yellow River—all rise in

Vanishing Glaciers of the Himalayas

By China Brief

Page 21: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 2 1

the Tibetan plateau. And in certain seasons they all depend on glaciers melting at exactly the right time and kicking in flow to keep the rivers in a state of balance. But with this disturbance the rivers are being disrupted. First we’re getting floods—to wit, [the massive flooding in] Pakistan two years ago. Then we’ll get droughts. This is of great consequence to an enormous number of people.

Q You have pointed out something many people may not be aware of—that the effects of global warming are espe-cially acute at high altitudes.

A What happens is these greenhouse gases go into the atmosphere from the burning of fossil fuels like coal. The higher the altitude, the more the temperature increases for very complex reasons. This means that the effects of climate change, while they’re serious at low altitudes, are very serious at high altitudes.

When you hear a figure of a one percent average increase in global temper-atures, that means in some places, you’re getting a four- or five-degree increase and in other places you may get no increase. This is why the Himalayas, the frozen

reservoir of Asia, are both extremely sensitive in terms of climate and tem-perature fluctuations, and also extremely important to these river systems.

Q many Chinese live along some of the major rivers you’ve mentioned, so more floods or droughts would likely have a severe impact in China. Given those risks, what’s your assessment of beijing’s response to global warming so far?

A [Over the past five years], I would have to say there’s been an extraordinari-ly rapid absorption of both the science and the threat that climate change poses both to China and the world. Whereas in the US, because of all sorts of political and religious static, there’s great resistance to recognizing just how threatening this phe-nomenon is.

So I think China in many ways has come farther and is actually doing a lot of things. However, the sad fact in the world in general, China included, is that the gross increment of development, which involves more electricity and the burning of more coal, still is increasing aggregate amounts of greenhouse gas emissions. [This is true] even though per

unit of production, particularly in China, the amount of greenhouse gases is being reduced through all sorts of green tech-nologies—wind, solar, nuclear, thermal and energy savings. So it’s a paradox. On the one hand China is exemplary in certain ways. But on the other hand, because it has a great need to develop, it’s still producing more greenhouse gases.

It’s hopeful in that there is a response of some consequence, but if you look at it globally it’s not so hopeful. The US and China are the two big players. If they don’t get together, there literally is no possibility for any kind of a solution. It doesn’t matter what anyone else does. If the US and China can’t get a handle on this question of fossil fuel consumption and the sequestration or diminishing of greenhouse gas emissions, we’re going to see a rapidly warming planet, and all the consequences we know very well flow forth from that, including the melting of the ice systems in the Himalayas.

To hear this and other podcasts covering business and economics in China, please visit the AmCham-China website or search “AmCham-China” to subscribe to us on iTunes.

In China Brief’s “Artist Spotlight,” we partner with one of Beijing’s galleries to feature a selected artist’s work that lends a new perspective on an article from the magazine.

November's Artist Spotlight

This month’s featured artist (see bottom photo) is photographer and mountaineer David Breashears.His photographs of melting Himalayan glaciers are currently alongside archival photographs taken over the past century by some of the world’s greatest mountain photographers. The comparison reveals the alarming loss of ice at an unprecedented rate. See www.glacierworks.org to learn more.

Gallery Statement

These two pieces are currently exhibited at the Three Shadows Photography Art Centre in Beijing as part of their Coal+Ice documentary photography exhibition, which features the work of 30 photographers from China, the US, Malaysia, Russia, Hungary, Poland, Norway, Germany and the UK. See www.threeshadows.cn for more information.

West Rongbuk Glacier Courtesy of Royal Geographical Society, 1921 (top picture)West Rongbuk Glacier Courtesy of GlacierWorks, 2008

Page 22: China Brief November 2011

2 2 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

T here are several factors that make the investment climate in China different than in other countries, and these need to be carefully

considered by investors. They include:

• Strong relationships between companies and local government agencies that report to provincial au-thorities rather than to central gov-ernment agencies.

• Difficulties in managing staff and enforcing codes of ethics amid high staff turnover and a scarcity of expe-rienced professionals.

• Weak enforcement of regulations, which is often related to the close re-lationships between businesses and local governments.

• Low fines for regulatory viola-tions, and attempts to use financial influence or government relation-ships to hide information from the media at local levels.

BSR’s environment, social, and gov-ernance (ESG) news screener helps investors identify high- and low-per-forming companies based on ESG factors and provides a good overview of some of the major ESG issues facing Chinese companies. Our analysis reveals some important insights for investors who want to better understand how Chinese companies are performing and respond-ing to ESG issues.

laCk of GoverNaNCe

Corruption is a major challenge for business in China, particularly for financial services and energy companies

with nationwide networks that may struggle to implement effective internal control mechanisms. The most common problems include financial fraud, bribery and the misuse of company funds. The traditional Chinese practice of giving expensive gifts to business as-sociates is also a primary source of cor-ruption in the country. Companies need to have clear standards and policies governing this practice.

Company spotlightEarlier this year, Sinopec’s Guangdong branch was involved in a “luxury-liquor” scandal which started when

invoices were posted on a Chinese online forum revealing that RMB 1.68 million (US $258,000) had been spent on liquor. Sinopec launched an investigation and suspended the Guangdong branch’s general manager for six days after the news broke. The general manager was later removed from Sinopec Guangdong and fined RMB 131,100. During the inves-tigation, Sinopec refused to answer jour-nalists’ questions, and it was reported that Sinopec Guangdong required all departments to trace the leak in order to punish the whistleblower.

This scandal demonstrates how the spread of the Internet and social media is putting increased pressure on companies to maintain high standards. The rise of social media has made it

China Brief is pleased to introduce a new partnership with BSR (Business for Social Responsibility). BSR works with its global network of more than 250 member companies to develop sustainable business strategies and solutions through consulting and research.

Editor’s note:

S ustainable investing refers to an approach that factors environ-mental, social and governance (ESG) issues into investment decisions. It considers both the

investor's financial needs and an invest-ment’s impact on society. In many cases, investors who adopt this approach will encourage companies to improve their practices on ESG issues.

On a global basis, increasing numbers of investors are committed to imple-menting the UN Principles for Respon-sible Investment (UNPRI) — a set of six principles that help guide decision-mak-ing around ESG issues. Some investors

employ sustainable investing criteria from the standpoint of better managing risks, and thus improving financial per-formance. Others want to seize business opportunities in the fast-changing en-vironmental and social landscapes or to ensure that their investment practices are in line with particular ethical values.

A 2009 BSR study funded by the Inter-national Finance Corporation concluded that, while sustainable investment practices in China are still relatively un-developed, there have been encouraging signs of progress from stock exchange regulators and some pioneering mutual funds and private equity firms.

What Investors Need to KnowHow to address China’s top environment, social and governance challenges

By Adam Lane

Sustainable Investment in China

By Lindsey Lim

Page 23: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 2 3

harder for companies to hide illegal practices, with companies now facing greater “headline” risks. Companies are now expected to respond quickly and honestly to reports (or rumors) of corruption. In the end, media reports revealed Sinopec’s ill-advised move to punish internal whistleblowers.

Investors should take concrete steps to help companies strengthen their internal controls, review corporate whistleblower policies to ensure that they provide adequate protection and provide feedback if the policies fall short.

subsTaNdard produCT QualiTY

Substandard products continually make it onto the market, indicating wide-spread failures in quality control. The problem affects a wide range of in-dustries, including energy, consumer products, health care, agriculture and industrial machinery. Product quality risks can be minimized with strategies for rigorous sampling and testing across the entire supply chain.

Company spotlightIn April, following consumer complaints and a company investigation, Sinopec Henan’s #93 grade ethanol gasoline was found to contain too much manganese. The company attributed the error to insufficient quality controls and opera-tional problems at Anyang Oil Limited’s storehouse.

Sinopec Henan relieved the parties responsible from their duties and offered compensation to motorists whose cars were damaged. Moreover, the company invited government bureaus, consumer groups and technicians to serve as in-dependent witnesses to confirm the accuracy of complaints, carrying out vehicle repairs and other tasks related to the compensation program.

Sinopec’s response was exemplary from a customer service perspective, yet is also typical of a response focused only on the short term. There is no evidence that Sinopec fully understands the un-derlying causes of the problem and has sought to prevent this—or similar—problems from occurring in the future.

From an investor perspective, Sinopec should be asked to publicly provide a supply chain strategy, with details of the measures they took to resolve the problem and regular reports on their performance moving forward.

wasTewaTer polluTioN

The challenge of waste and water pollution in China among manufactur-ers is two-fold: too many companies not only pollute, but also often refuse to clean up pollution when it has been discovered. Local governments and civil society groups are increasingly placing pressure on companies that do not respond to calls for action.

Provincial environmental offices have warning lists and blacklists of companies that violate environmental standards, and local governments have jurisdiction to impose fines and close down operations. However, blacklist-ed companies have the opportunity to rectify their problems by undergoing a series of inspections in order to be removed from the blacklist.

Company spotlightIn February 2011, 24 NGOs called on Chenming Paper to stop illegally dumping sewage. This incident followed in the wake of 21 previous environmen-tal violations by the company since 2004. The company did not respond to the NGOs’ statement and the company’s spokesperson did not respond when journalists called.

Investors can dramatically reduce their chances of encountering such problems if they examine a company’s environmen-tal track record before making an invest-ment. In addition to contacting provincial environmental offices, investors can use the Institute of Public and Environmen-tal Affairs’ website to identify companies with poor environmental performance. This website contains a database that tracks water and air-standards violations by manufacturers in more than 300 cities in China.

THe role of susTaiNable iNvesTors

To ensure that companies properly address ESG issues, investors should:

• Pay close attention to local news reports of companies that are fined for violating standards. Problems identified at local levels may indicate wider problems throughout the cor-poration, even if they are not picked up by national media.

• Actively follow a given company’s response to ESG-related accusations, and work with other investors to influence company actions.

• Make clear to corporate leadership that they are closely monitoring warning lists and blacklists.

• Proactively track social media for ESG-related news reports.

• Work with NGOs active on ESG issues in order to identify poor-per-forming companies.

• Visit local branches of portfolio companies and develop a relation-ship with managers through face-to-face meetings.

By effectively and consistently engaging with their portfolio companies, investors can play an important role in addressing ESG challenges in China.

Adam Lane is a Manager at BSR.

China can further leverage the role of sustainable investment to the benefit of the economy and the country. A better under-standing of ESG issues among mainstream investors would increase their expecta-tions for corporate transparency, improve corporate governance, and ultimately, support more successful companies. The market would reward innovative companies that address critical sustainabil-ity challenges. With the right incentives and commitments from government—and backing from more investors—sustainable investment could flourish.

For more information and updates on sustainable investment in China, subscribe to BSR’s quarterly Sustainable Investment in China newsletter: www.bsr.org

Lindsey Lim is an Associate at BSR.

Page 24: China Brief November 2011

2 4 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

Support Staff:1, Sujing Wang ([email protected])2, Julie Leng ([email protected])3, Nancy Xu ([email protected])4, Cindy Du ([email protected])5, Victoria Qu ([email protected])6, Mariel Montuori ([email protected])7, Jonathan Abramovic ([email protected])8, Elizabeth Rowland ([email protected])

09, Nancy Cooke ([email protected])10, Amanda He ([email protected])11, Grace Li ([email protected])12, Julia Howe ([email protected])13, Michelle Guo ([email protected])14, Breeze Wang ([email protected])15, [email protected], Anna Li ([email protected])

Forum ChairsPlease see www.amchamchina.org for more infromation about AmCham-China's forums and committees.

Aerospace 4

John Bruns, Boeing (China) Co., Ltd.Kevin Wu, Textron

Agriculture 1

Michael Boddington, Boddington ConsultingKevin Eblen, Monsanto

Beijing 4

Michael Dardzinski, Reed SmithJohn Holden, Hill & Knowlton (China) Public Relations

Co., Ltd.Business Process Outsourcing 1

Julie Liu, Cummins ChinaMichael Liu, Compupacific International Inc.Gabrielle Sanders, Convergys Software Service (Beijing) Co., Ltd.

Clean Technology 1

Robert Jones, EcolinxEmiel van Sambeek, Azure International

Cosmetics 2

Carol Shen, Estee Lauder (Shanghai) Commercial Co., Ltd.Environmental Industry 1

Daniel Li, Albemarle (Shanghai) Chemical Co.Michael Nicholls, Otek Australia Pty. Ltd.

Financial Services 3

Kim Woodard, InterChina ConsultingFood 5

Owen Ma, PepsiCo, Inc.Healthcare Industry 5

Jimmy Ip, Edwards Lifesciences World Trade (Shanghai) Co., Ltd.

Roberta Lipson, Chindex International, Inc.Human Resources 3 & 7

Alan Babington-Smith, LMI China (Shanghai) Inc.Jim Leininger, Towers Watson

Insurance 3

Lester Ross, Wilmer HaleSufang Cui, Principal Life Insurance Company

Intellectual Property Rights 12

Mark Cohen, Fordham University Law School

Information Technology/Telecom 1

Max D. Klein, USITOManufacturing and Sourcing 3

Harold Lang, Terex (China) Investment Co., Ltd.Dwight Nordstrom, PRI Management & Consulting Ltd.

Manufacturing (Tianjin Chapter) 10

Scott Taylor, IndividualMarketing, Advertising and Public Relations 1

William Moss, Motorola David Zeke Yusah, Lenovo

Media and Entertainment 2

Mathew Robert Alderson, Harris Moure PLLC, BeijingArturo Casares, Mexico Guajillo Entertainment SA DE

CV Beijing Representative OfficeJames Dyson, Weber Shandwick

Oil, Energy and Power 1

Greg Ray, Independent Project Analysis, Inc.Zhiyong Zhao, Hess China Oil and Gas Beijing

Provincial & Regional Development 14

Emory Williams, SureBlock CompanyLily Yang, Schneider Electric

Real Estate and Development Industry 1

Eric Hirsch, Jones Lang LaSalleJin Yong, CB Richard Ellis

Real Estate (Tianjin Chapter) 10

Micheal Hart, Jones Lang LaSalleRetail and Distribution Industry 1

Matthew Estes, BabyCare Ltd.Barry Friedman, Wal-Mart

Small Business 6 & 7

Anthony Goh, US-Pacific Rim International, Inc.Standards 3

John Larkin, LTI AssociatesFei Liu, ASTM International China Office

Tax 8

Wendy Guo, PriceWaterhouse CoopersBrett Norwood, Deloitte Touche Tohmatsu CPA Ltd.

Tourism Industry 2

Jamie Lee, Individual

American Community and Culture 2

Kathy Chi, Golden Richland Business ConsultantsAnthony Goh, US - Pacific Rim International, Inc

Business Sustainability 6 & 2

Andy Andreasen, Shanghai AIAL Information Consulting Co., Ltd.

Kaying Lau, IndividualChinese Government Affairs 13

Wan Li, CumminsCustoms & Trade 8

Xiaoping Jiang, Flextronics (China)Election 6

David Diebold, David Diebold & Associates (HK) Ltd. Beijing

Golf Program 1

Hans Lootiens, Renaissance Beijing Capital HotelSu Cheng Harris-Simpson, SCHS Asia

Legal 12

Timothy Stratford, Covington & Burling LLP Beijing Rep. Office

Hank Wang, Garvey Schubert Barer

Golf (Tianjin Chapter) 10

Hank Martin, Hank's Sports Bar & GrillPublic Policy Development 8

Patrick Chovanec, IndividualUS Government Relations 8

James McGregor, APCO Worldwide Inc.Visas 6

Gary Chodorow, Frederick W. Hong Law Offices Beijing

Darlene Macneill, Deloitte Touche Tohmatsu CPA Ltd.Women’s Professional 6

Su Cheng Harris-Simpson, SCHS AsiaNina Hsu, LTI Associates

Women’s Professional (Tianjin Chapter) 16

Lucy Liu, TEC TianjinJennifer Zhang, Deloitte Tianjin

Work Safety 7

Harold Lang, Terex (China) Investment Co., Ltd.Desmond Soh, Oshkosh Corporation (Beijing)

Young Professionals 6

Jeremy Huff, NBA China

Committee Chairs

Know Your Working Groups

The Tianjin Chapter’s Real Estate Committee provides members with the latest updates on China’s real estate market, in addition to key development trends in the Greater Tianjin area. The committee is also active in advocating for the preservation of historical buildings and offers opportunities to learn more about the city’s colonial architecture.

Tianjin’s real estate committee often hosts dialogues and informative events on issues ranging from Tianjin’s urban planning to the city’s changing landscape. Commit-tee chair Michael Hart, managing director of Jones Lang LaSalle, recently delivered a “Tianjin Property Update” at the top floor of the Tianjin World Financial Center, one of the city’s newest landmarks. For more information on this event, please tune in to Hart's podcast, available online at: www.amchamchina.org/podcasts and also on iTunes.

Your participation is welcomed. For more information on how to get involved in the committee, please contact Amanda He: [email protected].

The Tianjin ChapTer’s real esTaTe CommiTTee

AmChAm-ChinA in AC tion – Working group

Am

Ch

Am

-Ch

inA

stA

ff

Members listening to the latest property updates on the top floor of Tianjin's World Financial Center

Am

Ch

Am

-Ch

inA

stA

ff

Michael Hart, Tianjin Chapter chairman, explaining the city's spike in residential property prices

US-China Aviation Cooperation Program 11

Pat Power, FAAMarc Allen, Boeing (China) Co., Ltd.

US-China Energy Cooperation Program 15

[email protected]

US-China Healthcare Cooperation ProgramJun Zhou, [email protected]

Export Compliance Working Group 8

Marc Allen, Boeing (China) Co., Ltd.Chris Szymanski, SMIC Co.

Please see www.amchamchina.org/cooperationprograms to learn more.AmCham-China Cooperation Programs

Page 25: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 2 5

DevelopmenTs in The Us anD Global eConomies

In a lunchtime, off-the-record address, David Dollar, US Treasury Department’s economic and financial emissary to China, briefed AmCham-China members at the Kempinski Hotel Beijing on the latest devel-opments in the US economy and prospects for the coming year.

In the wake of the financial crisis and the collapse of the real estate bubble, Dollar noted the American economy will undergo a period of fundamental adjust-ments, in terms of both labor and capital, before resuming a course of strong sus-tainable growth.

Dollar also analyzed the growth outlook for consumption, government spending, business investment and exports. He com-mented on the potential risks to the global economy posed by the European debt cri-sis and discussed China’s role in helping support global demand.

manaGe YoUr WealTh in ToDaY’s eConomY

Timothy A. Schlindwein, founder and man-aging principal for Schlindwein Associates, outlined key wealth management issues with AmCham-China members and guests.

Key Points:• Theoretically, investment should be

strictly statistical. From a practical perspective, humans often make deci-sions driven by personal bias.

• The three wealth planning challenges are: regulation, taxation and inflation.

• Diversification is essential.

In today’s extremely volatile market, it is essential to understand your portfolio. How you invest depends upon your goals and

your stage in life. Mr. Schlindwein noted in-vestment strategy is contingent upon four life metrics: acquisition, growth, preserva-

tion and deployment. Where you are in these four cycles plays a significant role in how you should execute your investment approach.

CosmeTiCs ForUm meeTs WiTh aQsiQ

AmCham-China’s Cosmetics Fo-rum held a meeting with the Food and Manufacturing Supervision Division of the regulator known as the General Administration of Quality Supervision, Inspection

and Quarantine (AQSIQ). Led by Patrick Wang, AmCham-China’s vice president of government affairs, the chamber delegation included 10 executives from major cosmet-ics companies.

The visiting group was warmly received by Deputy Division Chief Ma Chunliang, who was accompanied by division chiefs from related departments. Members of the chamber delegation discussed the latest issues concerning their companies and offered input on upcoming government plans. The event is expected to lead to fu-ture collaborations.

eCp roUnDTable WiTh Us ambassaDor

In celebration of its second anniversary, ECP hosted a special closed-door, off-the-record roundtable with Ambassador Gary Locke. The roundtable was immediately followed by a reception, where everyone was joined by former National Develop-ment and Reform Commission Vice Chair-man, Zhang Guobao. Mr. Zhang is a strong supporter of ECP and—along with

Ambassador Locke in his earlier capacity as US Secretary of Commerce—one of the signatories to the 2009 bilateral MOUs, in which five separate agencies of the US and Chinese governments formally recognized ECP. The roundtable included presenta-tions followed by a candid dialogue on how to promote clean energy business, gener-ate jobs and growth, protect IPR and facili-tate investment in both countries. The eve-ning closed with all pledging their support of ECP in achieving mutual clean energy and business generation objectives.

opporTUniTies, risk anD reTUrn in real esTaTe

Given price increases in the real estate market, how can developers protect quality while maintaining cost efficiency?

“This is a very unique time for China’s real-estate market,” noted Mark Cho, di-rector and head of RREEF Real Estate. During a presentation before AmCham-China members and guests at the Park Hyatt Hotel, Mr. Cho emphasized the po-tential for a high-quality, investment-grade market in Beijing. He detailed the different investment vehicles available to support fu-ture real estate ventures in China.

Key Points:• Current real estate policy mandates

that developers make payments for land projects within one year of pur-chase. For the most part, developers are required to make a 60 percent down payment on an acquisition.

• Auctioned land that is untouched for over one year is viewed unfavorably by the government. Hoarding property may make it harder to acquire more land in future auctions.

Capital for real estate proj-ects has dwindled due to recent policy tightening. This has not sig-nificantly impacted large Chinese developers, but the shift has put small- and medium-sized devel-opers under some pressure.

The market is currently under-going a correction, allowing for a cooldown in property prices. But once things stabilize, small-and medium-sized developers may look forward to a more welcoming capital environment.

AmChAm-ChinA in AC tion – e vents

Co

nn

ie z

hA

o

David Dollar on the latest economic developments

Jin P

en

g

Will Latta, Executive Committe member of the US-China Energy Cooperation Program (ECP) presenting at the roundtable with Ambassador Locke

Page 26: China Brief November 2011

2 6 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

AmChAm-ChinA in AC tion – e vents

CenTral China ChapTer hosTs neW Us ambassaDor

AmCham-China, Central China Chapter hosted an exclusive lunch briefing with the US Ambassador to China, Gary Locke, attended by more than 60 members and guests at the Wuhan Jinjiang International Hotel.

Key Points:• The event was held in honor of US

Ambassador Gary Locke’s first visit to Wuhan since assuming his post.

• Ambassador Locke shared his thoughts about his new post and his vision for the evolving US-China rela-tionship.

Ambassador Locke spoke about the importance of the US and Chinese bi-lateral trade talks and the shared goals of open and competitive markets free from protectionism. He also highlighted the need for Chinese direct investment in the US.

The event, hosted by AmCham-China’s Chair of the Central China Ex-ecutive Committee Janie Corum and AmCham-China President Christian Murck, was also attended by Consulate General of the United States in Wuhan Diane Sovereign, among other em-bassy officials.

maximizinG labor eFFeCTiveness

Hunter Guan, a member of the Central China Chapter’s Executive Committee, recently opened an event on maximizing labor effectiveness at the Zhuangyang building in Wuhan’s Economic and Tech-nological Development Zone. He intro-duced the Manufacturing Forum’s David Mitchell, general manager of Kronos Greater China.

Key Points:• Manufacturers face major challenges

due to increasing costs and must maximize the effectiveness of their la-bor to remain competitive.

• Overall Labor Effectiveness (OLE) is a tool to promote and measure produc-tivity within each shift.

Mr. Mitchell opened the discussion with

the current state of manufacturing in China. The major challenges confronting manufac-turers in China include rapid increases in the costs of labor, materials and logistics.

How do you maximize workforce effi-ciency in order to remain competitive? Mr. Mitchell introduced the concept of OLE, a common measure of productivity and tool to improve the overall effectiveness of the labor force by focusing on activities within each shift, not just overall productivity or production plans. In order to maintain and increase profit margins, OLE uses availabil-ity, performance, and quality levers to boost efficiency.

hUbei DialoGUe WiTh Us Companies

US Ambassador to China Gary Locke and the Vice Governor of Hubei Province, Tian Chenzhong, gave opening remarks at a recent dialogue between Hubei gov-ernment officials and US companies. Jus-tin Zhu (partner, Deloitte), Ryan Hou (vice mayor, Columbus, Ohio) and Punyu Ho (executive director, Schlindwein Associ-ates) introduced US investment opportuni-ties and the Foreign Commercial Service’s “Select USA” program. Three Chinese speakers from the cities of Jingzhou and Jingmen and from Dongfeng Cummins Engine Co., Ltd. introduced investment opportunities in Hubei.

Key Points:• Speakers from the US and China

spoke on investment opportunities in their respective countries. US speak-ers introduced the “Select USA” pro-gram.

• The dialogue, which was a key event during USA Week in Wuhan, was at-tended by US Ambassador Gary

Locke.

Over 100 members of the foreign business community and officials from the Chinese government attended the USA-Hubei Business and In-vestment Forum co-hosted by AmCham-China, Central China Chapter and Hubei Commerce Department at the Wuhan Wuchang Westin Hotel. The fo-rum was the key commercially-focused event during Wuhan’s USA Week.

Am

Ch

Am

-Ch

inA

stA

ff

AmCham-China, Central China Chapter and US Embassy officials welcoming Ambassador Locke to Wuhan

Am

Ch

Am

-Ch

inA

stA

ff

Central China Chapter members learning how to maximize labor effectiveness

Central China Chapter

Page 27: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 2 7

AmChAm-ChinA in AC tion – speCiAl e vent

S ince arriving in China in August, US ambas-sador to China Gary Locke has visited Am-Cham-China members in Beijing, Dalian and

Central China (Wuhan) through a number of events hosted by AmCham-China and its regional chapters.

During the World Economic Forum, the Dalian chapter hosted Locke at a breakfast event, where he spoke with members representing US companies about the challenges and benefits of doing business in China.

In Beijing, AmCham-China joined with the US-Chi-na Business Council to co-host Locke’s first econom-ic speech at a lunch event. In introductory remarks before the talk, AmCham-China Chairman Ted Dean addressed an audience of 300 business people and executives, noting the chamber is “eager to work with the ambassador…to support a stable economic re-lationship between the US and China and drive eco-nomic growth in both countries.”

Later that week, Locke traveled to Wuhan to at-tend the USA-Hubei Business and Investment Forum, co-hosted by AmCham-China, Central China chapter and the Hubei Commerce Department. At this key event during USA Week, over 100 members of the foreign business community and Chinese government met to discuss commerce and investment opportuni-ties.

The next day, over 60 members and guests wel-comed Locke to a luncheon in honor of his first visit to Wuhan since becoming ambassador. The event was hosted by Janie Corum, chair of the Central China chapter executive committee, and Christian Murck, president of AmCham-China.

Most recently, Locke attended AmCham-China’s annual American Ball. He also has met with the cham-

ber’s three public-private partnerships: the US-China Energy Cooperation Program, the US-China Health-care Cooperation Program and the US-China Aviation Cooperation Program. AmCham-China looks forward to continuing such exchanges with the Ambassador.

ambassador locke Tours Chamber’s ChaptersLocke meets with AmCham-China members across China

By Caroline Sun Photos from AmCham-China staff

The Ambassador meeting with the US-China Energy Cooperation Program (above) and at the chamber's American Ball

Ambassador Locke in Dalian (left), in Beijing and with Central China members in Wuhan

Page 28: China Brief November 2011

2 8 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

AmChAm-ChinA in AC tion – speCiAl e vent

A t a half-day fo-rum organized by AmCham-

China at the Renais-sance Hotel, Chinese and US officials, along with businesspeople and service providers, took part in panel dis-cussions on how to ex-pand Chinese business investment in the US.

The meeting was part of an ambitious new effort to develop closer US-China ties at the state and provin-cial levels. It follows on a historic visit by a delegation of Chinese governors to the US National Governors Association conference in Salt Lake City earlier this year.

Though the event included over a dozen participants, a partial list of speak-ers included Hawaii Governor Neil Aber-crombie; Changsha, Hunan Mayor Zhang Jianfei; Xiangtan Electric Manufacturing Group Chairman Zhou Jianxiong; and US State Department Principal Deputy Assis-tant Secretary Deborah McCarthy.

Speakers at the event repeatedly stressed it is a myth that the US is a difficult market to en-ter. In fact, registering a com-pany usually takes only one to two days. Government approvals are minimal, if re-quired at all, and the effective US tax rate for both com-panies and individuals, after factoring deductions and state and local incentives, is usually well below the nomi-nal rate and ranks relatively low by global standards.

For now, though Chinese business-people show a growing interest in investing in the US, worries about cultural, legal and language barriers often discourage them from taking action. Such hurdles may prove overwhelming for smaller Chinese firms. Big enterprises are more likely to be able to afford to hire US accounting, legal and other service firms to ease their entry into the US market.

Big Chinese cities and provinces typi-cally have a government commercial of-fice that focuses on attracting foreign in-

vestors, explaining local regulations and business conditions, and helping newcomers make busi-ness contacts. Chinese officials at the Invest USA Forum suggested that US cities and states set up similar offices. One Chinese business leader recommended putting more (Chinese-language) resources online to guide prospective investors through the process.

From a business standpoint, noted a Chi-nese executive, the US

offers a compelling market for Chinese companies that sell high-value products and want to build their international repu-tation. In some cases, it may make sense to produce in the US to minimize logistics costs. And Chinese companies that build a presence in the US are better positioned to offer strong after-sales service.

An investment banker who spoke at the event noted that multinational companies have tended to expand overseas through mergers and acquisitions. International ac-quisitions by big Chinese companies could help them to build globally-recognized brands.

One proven strategy suggested by a Chinese business leader whose company has made multiple US investments is to start off small, then progress to bigger-scale acquisitions.

For more information on AmCham-Chi-na’s Invest USA initiative, please email Andy Li: [email protected].

K.C. Swanson is the Director of Com-munications at AmCham-China.

amCham-China hosts “invest Usa” ForumChinese, US officials and executives speak on boosting Chinese business investment in the US

By K.C. Swanson

Jin P

en

g

Zhou Jianxiong presenting at the "Invest USA" Forum

Jin P

en

g

Robert Wang, Deputy Chief of Mission at the US Embassy

Page 29: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 2 9

AmChAm-ChinA in AC tion – speCiAl e vent

By Amanda He Photos by Anna Li

AmCham-China members from sev-eral chapters and cities recently putted through the Tianjin Binhai

Lake Golf Club for the chapter’s annual golf tournament. The day was full of great com-petition with many prizes and awards, and after the tournament an awards banquet was held for the lucky winners.

Tim Beagle (Cintas Tianjin Enterprise Services Co., Ltd.) dominated the com-petition by winning the longest drive and most accurate long drive, and finished first place in the tournament along with guest K.C. Tan.

Hans Loontiens (Renaissance Beijing Capital Hotel ) and Damon Page (The St. Regis Tianjin) were the nearest to pin win-ners.

Second place went to John Klinker-man and Peter Chen (Tianjin Sun Hope Healthy Products Co., Ltd.), and com-ing in at third place were Steven Yau (Renaissance Tianjin Lakeview Hotel and The Lakeview, Tianjin - Marriott Executive Apartments) and guest L. Tan.

Numerous lucky draw prizes were also awarded throughout the evening. Tian-jin Chapter would like to thank our major sponsors for their support: CSOFT Interna-tional Ltd., Continental Airlines and Cintas. We would also like to thank our additional sponsors: Taylor Printing, Hank’s Sports Bar and Grill, St. Regis Hotel, Jones Lang LaSalle, New Continent, Radisson Plaza, Continental Airlines and Montrose Wine.

Many thanks to everyone for participat-ing in this successful event. We look for-ward to playing with you again next year!

Tianjin Chapter’s 2011 Fall Classic Golf Tournament

AmCham-China would like to thank our generous sponsors:

Exclusive Dinner Sponsor:

Beverage Sponsor:

Hole Sponsors:

Prize Sponsors:

Hank Martin (left) with nearest to pin winner Hans Loontiens

Page 30: China Brief November 2011

Photos by Felix photography studio

Page 31: China Brief November 2011

Photos by Felix photography studio

Page 32: China Brief November 2011

3 2 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

amCham-China thanks all of the generous Charity ball sponsors

The oDYsseY level

·Peabody Energy

·China World Hotel

robinson CrUsoe level

·Amway (China) Co., Ltd.

·The Boeing Company

·Lehman Brown

·Wilmer Cutler Pickening Hale and Dorr LLP

The blUe laGoon level

·Beijing United Family Hospital and Clinics

·Motorola (China) SolutionsMotorola Mobility

·Motorola Mobility

·NBTY (China) Trading Company Limited

·The Coca-Cola Company

·The Westin Beijing, Chaoyang

·United Airlines

·Marriott International, Inc.

The bermUDa TrianGle level

·APCO Worldwide

·BDA (China) Limited

·Caterpillar (China) Investment Co., Ltd.

·Cummins

·Hines

·KPMG

AmChAm-ChinA in AC tion – speCiAl e vent

 

Page 33: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 3 3

·LTI Associates

·Microsoft

·NBA China

·Ogilvy Public Relations Worldwide

·Qualcomm Wireless Communication Technologies (China)

·Skadden, Arps, Slate, Meagher & Flom LLP

·UTC

The blaCk pearl level

·Anheuser-Busch InBev

·Arrail Dental

·ASC Fine Wines

·Brown-Forman Corporation

·Celebration Cruise Line

·City Weekend Magazine

·ctrip

·Daniel Boulud's NYC Restaurant

·Delta Air lines

·Disney U.S.A Parks and Resorts

·Doubletree by Hilton Orlando

·Estee Lauder (Shanghai) Commercial Co., Ltd

·Grand Lucayan Bahamas

·Hilton Beijing

·Honeywell Inc.

·Hyatt Hotels Corporation

·JW Marriott Ihilani Resort & Spa·JW Marriott Waikiki Beach Hotel

Resort & Spa

·Santa Fe Relocation Services

·That's Beijing Magazine

1. 2. 3. 4.

常规情况使用1号logo。No.1 is standard format for general usage.

深色背景使用4号logo。No.4 is used on a dark background.

Page 34: China Brief November 2011

3 4 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

TreasUre islanD level

· Baker & McKenzie

· Carestream Health

· China International Travel Service

Limited (CITS)

· AmCham-China Christian Murck

· Dow Chemical (China) Investment

· Hatsune Restaurant Group

· Intel

· International School of Beijing

· Meeting Professionals International

(MPI)

· The Schoolhouse

· Westinghouse Electric Company

· The Bama Companies, Inc.

sanD, sUrF & sea level

· Air Canada

· Astor Grill at The St. Regis Beijing

· Barolo at The Ritz Carlton Beijing

· BEI at The Opposite House

· Capital Club

· CRU Steakhouse at The JW Marriott

Hotel Beijing

· Raffles Beijing Hotel

· Regent Hotel

· The Courtyard

· The Taj Pavilion

mermaiDs level

· 6th Sense-Potter's Wheel Tennis

Academy

· Alameda

· Andaz Shanghai

· Beijing Bellagio Restaurant Coor-

peration Ltd.

· Beijing Marriott Hotel City Wall

· Bodhi Therapeutic Retreat

· Capital M

· Charu Jewelry

· Courtyard by Marriott Kunshan

· Courtyard by Marriott Shanghai

Pudong

· Doubletree by Hilton, Beijing

· Dragonfly Therapeutic Retreat

· D-SATA by CuR

· Element Fresh

· Eric Paris Salon

· Fairmont Beijing

· Flamme

· Fraser Suites

· Fubar

· Futian Shangri-La, Shenzhen China

· Golden Flower Hotel by Shangri-La,

Xian China

· Grand Hyatt Beijing

· Grand Hyatt Goa

· Grand Hyatt Macau

· Grand Millennium Beijing

· Hilton Beijing Wangfujing

· Hong Kong International Medical

Clinic, Beijing

· Hyatt on the Bund

· Hyatt Regency Guam

· Hyatt Regency Hangzhou

· Hyatt Regency Hong Kong, Sha Tin

· Hyatt Regency Saipan

· John Walkins & Dinah Watkins

· JW Marriott Bangkok

· JW Marriott Hotel Chongqing

· JW Marriott Phuket

· Kempinski Hotel Beijing Lufthansa

Center

· Kerry Centre Hotel, Beijing

· Kerry Hotel, Pudong Shanghai

· Kowloon Shangri-La, Hong Kong

· Kurki Fashion (Beijing) Ltd.

· Le Meridien Cyberport

· Le Meridien Qingdao

· Le Royal Meridien Shanghai

· Long Island Massage & Spa

· Maison Boulud

· Makati Shangri-La, Manila

· Miri Resort & Spa, Marriott

· MODO Restaurant

· Mosto Restaurant

· Mrs. Fields Gourmet Cookies

· Neeti Banerjee

· NFL China

· Park Hyatt Beijing

· Park Hyatt Maldives

· Park Hyatt Ningbo

· Park Hyatt Shanghai

· Renaissance Riverside Hotel Saigon

· Renaissance Sanya Resort & Spa

· Renaissance Shanghai Putuo Hotel

· Renaissance Suzhou Hotel

· Salon De France

· SALT

· Sanya Marriott Resort&Spa

· Sawaha

· Shanghai Marriott Hotel Changfeng

Park

· Shangri-La Hotel, Beijing China

· Shangri-La Hotel, Beihai China

· Shangri-La Hotel, Changchun China

· Shangri-La Hotel, Dalian China

· Shangri-La Hotel, Dubai

· Shangri-La Hotel, Guilin China

· Shangri-La Hotel, Harbin China

· Shangri-La Hotel, Huhhot China

· Shangri-La Hotel, Kuala Lumpur

· Shangri-La Hotel, Qingdao China

· Shangri-La Hotel, Singapore

· Shangri-La Hotel, Wuhan China

· Shangri-La Jakarta

· Shangri-La Rasa Ria Resort,

Malaysia

· Shangri-La's Rasa Sentosa Resort,

Singapore

· Sharon's Store

· Sheraton Sanya Resort

· Sofitel Wanda Beijing

· Sparkle of Life

· St. Regis Lhasa Resort

· The Hutong

· The Peninsula Beijing

· The Rumi Grill

· The St. Regis Beijing

· The Westin Bund Center Shanghai

· The Westin Guangzhou

· The Westin Resort Macau

· The Westin Shenzhen Nanshan

· The Westin Taipei

· TOTAL Int'l Moving&Shipping (TiMS)

· Traders Hotel, Shenyang China

· Trek Bicycle China

· Wal-Mart China

· Wcoffee

· Yoga Yard

· Zenspa

· Mandrian Oriental Hotels

AmChAm-ChinA in AC tion – speCiAl e vent

Page 35: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 3 5

AmChAm-ChinA in AC tion – membership And ser viCes

new and renewed amCham-China membersCorporate members

William Niebur, Tieling Pioneer Seed Research Co., Ltd.

Alex Etkin, Tianjin United Family Hospitals and Clinics

David Gahn, Taylor Printing Company (Tianjin) Limited

Ian Dolling, Beijing Bausch & Lomb Eyecare Co., Ltd.

Andy Kwok, Prime Vest Hongjing Group Ltd.

Jonathan Kirkwood, Kirkwood & Company

additional Corporate members

Jenny Mao, Hess China Oil and Gas Limited Bejing Representative Office

Tim Cordingley, Hess China Oil and Gas Limited Bejing Representative Office

Bin Zhang, Hess China Oil and Gas Limited Bejing Representative Office

Daniel Liu, Tianjin United Family Hospitals and Clinics

Charlie Flint, Taylor Printing Company (Tianjin) Limited

Sunny Sun, The Bank of New York Mellon Beijing Branch

Vivien Bai, Loeb & Loeb LLP Beijing Representative Office

Yan Su, Coca-Cola Beverages (Shanghai) Company Limited

Kevin Liu, Coca-Cola Beverages (Shanghai) Company Limited

Salomon Tenenbaum, Kirkwood & Company

Patrick Liu, Fitch Ratings (Beijing) Ltd.

non-Us Corporate members

Therese Fitzgerald, Allens Arthur Robinson Beijing Representative Office, Australia

William Baker, Mahon China Investment Management Ltd. Beijing Representative Office

additional non-Us Corporate members

Alan Thometz, Grant Thornton China

Grace Gao, Auralog China

Min Odenbro, Tricorona Carbon Asset Management

additional non-resident Corporate members

Sophie Guerin, SCHSAsia

not-for-profit organization membership

Tiffan Zhang, Junior Achievement China

Erin Sullivan, WildAid Inc.

additional not-for-profit organization membership

Yang Gao, Junior Achievement China

senior professional membership

Stephen Henson

T he chamber’s popular Monthly Member Mix & Mingle (4M) was an even more special event in Octo-

ber, offering members the opportunity to meet the candidates for the 2012 Board of Governors and hear their vision for Am-Cham-China. At the 4M Grand Networking all-in-one-Night, held at the Westin Beijing Chaoyang Hotel, candidates introduced themselves, shared their plans for the

chamber and greeted members. In addi-tion to meeting the candidates, over 70

attendees caught up with old friends and joined new members for drinks and appetizers—a great oppor-tunity to network with Am-Cham-China members, the current leadership, future leaders and staff.

AmCham-China Vice President of Mem-bership, Services and Operations Nancy Cooke announced the event’s lucky draws winners:

Michael Warren (Asian Express China Ltd.) was the lucky winner of a RMB 1500 voucher for teeth whitening, orthodontics

and implants, courtesy of Arrail Dental.Dwight Nordstrom (China Manufactur-

ing Holding and Consulting Company) won a complimentary physical examination at the Hong Kong International Medical Clinic.

AmCham-China’s next 4M is just around the corner, stay tuned for more event details coming soon.

monthly member mix & mingle (4m)

Candidates Jon Christianson and Greg Gilligan at Westin Beijing Chaoyang Hotel

sA

lly

Ch

en

Members meet the candidates for the chamber’s 2012 Board of Governors

Page 36: China Brief November 2011

3 6 | c h i n a b r i e f | N o v e m b e r 2 0 1 1

China’s business community is composed of one of the most diverse and interesting groups of people in the world. Every month, China Brief spotlights one of AmCham-China’s 2,600 members, offering readers a more personal look at neighbors, business associates and friends in the community. If you are interested in being featured, or have a member spotlight recommendation, please email [email protected]

Jolene Kinser 周 玲

AmChAm-ChinA in AC tion – member spotlight

Hometown: Santa Rosa, California

Position/Company: Executive Director/Step Up Educational Consulting Company

Job duties: Leading our team, developing trainers and curricu-lum. We are a small company and I am one of the few bilingual speakers, so I wear many hats.

Time in Wuhan: I moved to Wuhan in 2006, but have spent eight years in China (Beijing, Xi’an and Jinan).

Why I joined AmCham-China:To meet new people, network and learn from others in the

chamber’s diverse and expanding community.

My favorite AmCham-China experience: Having the opportunity to participate in a welcome lun-

cheon for the new US Ambassador to China Gary Locke here in Wuhan.

Favorite places in Wuhan: Gui Shan (Tortoise Hill) and the TV Tower. I love this park

that is in the city’s center, yet does not have a crowd.

Most meaningful learning experience: I lived with two Chinese families during my second year

of studying Chinese. Here I learned to notice and appreciate countless cultural differences that enable me to be a better boss for my Chinese co-workers today. I learned that most Chi-nese people don’t realize that Americans often express them-selves directly, and that most Americans struggle with being indirect enough in this culture.

On educational consulting in China:We want to help people “step up” in life. We believe that

success in life requires figuring out what motivates you, set-ting goals and developing skill sets and healthy relationships, not only good test scores. Through fun educational camps and English classes for youth, we talk straight with students, help-ing them discover that they have something to contribute to the world.

We hold a variety of courses on topics such as conflict reso-lution, English business skills, stress management and parent-

ing…..and we are willing to travel anywhere in the country. Let us know if you have a group that would benefit from our camps!

The art of Chinese storytelling: I have learned the art of Chinese storytelling, “ping shu” 评

书. I love learning Chinese and this provided just the kind of challenge and connection with Chinese culture that I was look-ing for. A good storyteller is able to do amazing things with his or her voice. There are particular ways of drawing out words, pausing at just the right time, contrasting loud and soft, and pitching a phrase low and then moving it high that all must be mastered. You also need to speak with a Beijing-style accent to sound authentic. The effect is quite entertaining.

I participated in a storytelling event in Beijing. It was a Chi-nese-American cultural exchange where some of China's best storytellers experimented with adding English to their storytell-ing, or told a Western story in a traditional Chinese format. I, an American, told a traditional Chinese story about Li Bai, one of China's famous poets. In addition to being a storyteller, I also was one of the two emcees for the event. Both were firsts for me! Two of China's classic storytelling styles were featured at the event: 1) "pingshu," in which the story teller uses a fan as a prop and bangs a block of wood on the table at timely moments, and 2) "kuaiban" bamboo clapper storytelling, where the story teller keeps the beat with a bamboo clapper while telling his story.

I found that when I told the story to friends back in the US who don't speak any Chinese, they were mesmerized and enthusiastically listened to the whole story even though they didn't understand a word.

Co

ur

te

sy

of

Jol

en

e K

ins

er

Page 37: China Brief November 2011

N o v e m b e r 2 0 1 1 | c h i n a b r i e f | 3 7

Page 38: China Brief November 2011

World Wildlife fund (WWf)

WWF is dedicated to the conservation of nature and has been active in China since 1980, when it was the first international NGO invited by the Chinese government to work on nature conservation. WWF has more than 120 staff working in China on conservation programs.

WWF is partnering with Daorong Farm to promote traditional farming methods that reduce harmful agricultural pollution of the Huangpu River, a source of drinking water for communities near Shanghai. The farm will serve as a teach-ing facility and demonstration project to introduce environmentally friendly meth-ods to 50 farms in the surrounding area. Regional farmers will also learn strategies for selling to urban consumers. Through improved agricultural practices and rein-troduction of native plants and fish, the project will restore the surrounding wet-land system of Xiaofenyang Lake.

The Jane Goodall insTiTuTe China

(JGi China)JGI China aims to advance the power of indi-viduals through informed and compassionate action to improve the environment for all liv-ing things. Roots & Shoots (R&S), its primary program, is an international, hands-on educa-tion program. Its goal is to empower young people to take action to help the environment, animals and community. We plant the seed of sustainability as we educate students who in turn inspire their peers.

JGI China is partnering with the Migrant Children Environmental Education Project, which cultivates social entrepreneurial thinking among young leaders. Univer-sity students are trained to mentor and teach migrant children about local environmental issues, while developing entrepreneurial and leadership skills. The migrant children then learn how to implement small projects in their schools and communities. Both groups of students will be empowered, trained and prepared to make a difference in their futures.

How AmCham-China mem-bers can get involved: We welcome members to lead training workshops on project management and entre-preneurship in late 2012. Members can also lend their expertise and support to develop long-term col-laborations with R&S to expand this project and ensure its sustainability. For more information, visit R&S at www.genyuya.org.cn and email Lei Chen Wong at [email protected] to get involved.

How AmCham-China members can get involved: Visit the farm, par-ticipate in training or volunteer to pro-vide expertise for the Nature School. Members can also help raise awareness for community-supported agriculture in China, as well as promote it in their sup-ply chain. For more information about the program, visit www.wwfchina.org and email Rachel Zheng at [email protected] to get involved.

INBAR is partnering with the Sichuan Forestry Department and Fuping Devel-opment Institute to support earthquake-affected rural communities and social entre-preneurs in Sichuan province by developing the local bamboo sector to improve their livelihoods. Bamboo is a highly valuable product and is unique in its ability to conserve

local environments while providing a source of income to local farms. Through the Hongguan Village Farm-er Bamboo Cooperative, training will be provided to local farmers on lead-ership, financial business practices and environmentally-friendly farming techniques.

How AmCham-China mem-bers can get involved: Members can donate cash, make in-kind contributions or volunteer their

time to provide business expertise and mentoring. Members can also help raise the program’s visibility in China and within their networks. For more information, visit www.switchbamboo.org and email Nicole Kun at [email protected] to get involved.

Co

ur

te

sy

of

WW

f

Co

ur

te

sy

of

inB

Ar

Co

ur

te

sy

of

Jgi C

hin

A

please see

page 30 to learn

more about

the chamber's

american

ball

The 2011 american ball CharitiesWho they are and how you can get involved

inBar

INBAR is a global, intergovernmental or-ganization dedicated to poverty allevia-tion, environmental sustainability and fair-er trade through the use of bamboo and rattan resources. INBAR connects a net-work of 37 member countries, research institutes, chambers of commerce and non-governmental organizations. INBAR is headquartered here in Beijing.

Page 39: China Brief November 2011

C

M

Y

CM

MY

CY

CMY

K

2011峰会英文-210-285(出血)_复制副本.pdf 1 11-10-27 下午6:32

Page 40: China Brief November 2011

2011 Bundle Tickets on Sale!We're keeping the feel-good vibe going!

Our Executive First Suites are designed to provide you with your own personal space. Ideal for a good night’s sleep, each Suite features a lie-flat bed that fully reclines at the touch of a button while you remain seated. Together with a comfy pillow and duvet, you’ll arrive at your destination refreshed and ready to start your day.

Choose two or three round-trip tickets in Executive First Class and travel to your favorite Canadian or U.S. destinations.

2 Round-trips Western Canada / U.S.A.

RMB 40,000

Air Canada China Call Center400 811 2001www.aircanada.cn

3 Round-tripsWestern Canada / U.S.A.

RMB 54,000 2 Round-tripsEastern Canada / U.S.A.

RMB 56,0003 Round-tripsEastern Canada / U.S.A.

RMB 75,000The special fares exclude applicable tax and airport fees. Terms and restrictions apply.Air Canada reserves the right of interpretation of this promotional message.

First Travel period: January 1, 2011 to December 31, 2011.Ticketing must be completed at least 7 days before departure. Book today and save for your next trip!