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Confucianism in China Business

• Chinese Education Industry • Green Germany

Issue I 2015

Dear Members,

Occupy Central or, more accurately, “The Umbrella Movement” last year was an event of great significance for Hong Kong and although the siege has peacefully ended months ago, the fallout from the turmoil is likely to resonate through Hong Kong’s society for the foreseeable future. We expect, despite the relative calm of late, that the movement will have a lasting effect on the political landscape of the Special Administrative Region. Much of the debate was about true democratic processes and whether or not there is any such thing as international democratic standards and procedures.

In view of the above, our lead story in this issue of GC.comm appears timely, where we examine Confucian values and corporate governance. While it is not surprising, that certain business practices can be considered normal in one part of the world and unacceptable in another, one has to acknowledge that in the 21st Century and in a world of the internet, universal codes of conduct and practices in society are critical prerequisites for a peaceful coexistence and economic prosperity among global communities.

It is interesting to observe, that again Hong Kong is at the forefront in this process as the interface between different cultures and sets of values where East meets West. The recent announcements of the reform of China’s investment law or the setting up of a Western style law court in the Qianhai Free Trade zone in Shenzhen are good examples, where China is emulating Hong Kong’s proven and tested international practices in the fields of business, law and the administration in enclosed test tube like environments, before these policies are applied on a wider scale.

Another event of great significance was the announcement that the next Asia Pacific Conference of German Business will be held in Hong Kong in 2016. This will be the 15th edition of what can be considered the single most prestigious gathering of German business and political leaders to meet their counterparts in Asia. Undoubtedly this event will be a great opportunity to feature prominently the presence of German business in Greater China, but to also highlight the virtues of the Hong Kong SAR as prime location for German entrepreneurs to manage their business in Asia. Although the conference is about business, the core message is one of partnership, corporate responsibility and trust. What better place to deliver such messages than the Hong Kong SAR?

With our best wishes for the year of the ram,

Yours sincerely,

Ekkehard GoettingChairman & CEO, German Industry and Commerce Ltd.Chairman, GIC Greater China (Taicang) Co. Ltd.Vice President, German Chamber of Commerce, Hong Kong

Published byGerman Industry and Commerce Ltd. (GIC) / German Chamber of Commerce, Hong Kong (GCC)3601 Tower One, Lippo Centre89 Queensway Hong KongTel.: +852 2526 5481 Fax: +852 2810 6093General Email: [email protected] Website: www.hongkong.ahk.de

PublisherMr. Ekkehard Goetting

Editor-in-ChiefMs. Monica Murjani

EditorMr. Fabian Geuther

ContributorsMr. Ekkehard Goetting Mr. Ivo A. HahnMr. Hans-Eberhard Mahncke

Design and ProductionMr. Sam Ho

Advertisers in this issueHRS – Hotel Reservation ServiceLogwin Air & Ocean Far East Ltd.Lufthansa German AirlinesPro. Q. C. System Far East Ltd.Sixt GmbH & Co. KGTutima (H.K.) Ltd.

©2015: German Industry and Commerce Ltd. / GCC. No part of this publication may be reproduced without the publisher’s prior permission. While every effort has been made to ensure accuracy, the Publisher is not responsible for any errors. Views expressed in GC.comm are not necessarily those of GIC/GCC.

| www.hongkong.ahk.de / www.china.ahk.de | Issue I 2015 | 1

A Matter of Trust

German Chamber of Commerce, Hong Kong (GCC)

Committee Members for 2014-2015

PresidentMr. Hans Joachim IslerManaging DirectorH.D. Isler & Co. Ltd.

Vice-Presidents Mr. Horst F. GeickeFounding PartnerPAG

Mr. Ekkehard GoettingChairman & CEOGerman Industry and Commerce Ltd.ChairmanGIC Greater China (Taicang) Co. Ltd.

TreasurerMr. Eberhard BrodhageGeneral ManagerCommerzbank AG Hong Kong Branch

Committee MembersMr. Andreas BinderPresident & CEOMercedes-Benz Hong Kong Ltd.

Mr. Reinhold CarlManaging DirectorAudi Hong Kong / Volkswagen Group Hong Kong Ltd.

Mr. Michael CiesielskiChief Executive OfficerMGB METRO Group Buying HK Ltd.

Dr. Michael FuchsDeputy Chairman CDU / CSU Parliamentary GroupMember of Parliament, Berlin

Mr. Tom GerigkManaging DirectorDickie Toys Hong Kong Ltd.

Mr. Mark HellmannPresident & CEO, AsiaHellmann Worldwide Logistics Ltd.Asian Regional Headquarters

Dr. Markus KramerPresident, Operating Division, Dispersions & PigmentsBASF East Asia Regional Headquarters Ltd.

Mr. Andreas KulenkampffManaging DirectorTchibo Merchandising Hong Kong LP

Mr. Günther S. RittnerSenior AdvisorThyssenKrupp Elevator AGAsia Pacific Office

Company SecretaryMrs. J. Wu-ScharsigPartnerJennifer Wu-Scharsig, Solicitor

| 2 | GC.comm | Issue I 2015

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P.1 Editorial

ContentP.5 In Depth

• Confucianism in China Business: Influences on Corporate Ethics, CSR and HR

• In-Sight Interview with Mr. Ivo A. Hahn, CEO Greater China, Stanton Chase International

P.9 Special Report

• 2014 14th Asia-Pacific Conference of German Business (APK)

P.13 China• Chinese Education Industry:

Shaping a New Talent Pool

P.16 Germany• Green Germany: Berlin Pioneering in Urban

Sustainability & Diversity in the Food Industry

P.18 GIC – Inside• Recruitment, Training and Coaching Services

P.24 GCC – Inside• Member Focus – Ansmann Energy International Ltd.• Member Update• New Members• Flashlights

P.43 Event Schedule

P.44 People • Mr. Hans-Eberhard Mahncke, Managing Director,

Mahncke Logistics & Consulting Co. Ltd.The images above are credited to:Robert Scoble (flickr), & Frontierofficial (flickr), himmelbeet Garten.

The cover picture is credited to: Franco Folini (flickr).

Christianity in Western countries. Weber concluded from his works that Confucianism restricted the emergence of a capitalist system in China, unlike to Christianity in the West.

Confucianism SimplifiedDeveloped by the Chinese philosopher Confucius (551-479 BC), Confucian ideology has been firmly established as an undeniable unofficial, but powerful system of moral, political and social principles heavily influencing nearly every aspect of Chinese life since the Han era (206 BC-AD 220). If broken down to an idealised simplified version, Weber described Confucianism as a moral philosophy purposely anchoring people in their existing relationships, and heavily determined by social hierarchy structures. These structures are glorified and lending them to be the only social duties of the people. This concept is widely known as ‘filial piety’. Also in Confucian ideology, the world is said to be always the best as it is, as long as the world and the people are in a harmonious state under a virtuous ruler. Therefore one can conclude that Confucianism is a rationalist moral philosophy of adapting oneself to the world and its social structures. Each person has a duty to family and society that supersedes responsibility to oneself.

In addition to this moral system, Confucian ideology is represented by five virtues: Ren (humanity-benevolence), Yi (righteousness), Li (propriety), Zhi (wisdom) and Xin (trustworthiness). Thus, one side of Confucianism is the conformity and acceptance of the social roles and the other side is the cultivation of character through education and reflection on one’s own actions.

In approaching Chinese concepts in business ethics, Confucius and Mozi are among the most influential philosophers to review. Among the main virtues in Confucianism the most important is filial piety as outlined in the preceding paragraph. The high respect towards the family, teachers and rulers is an exceptional feature, which is clearly visible in the current population. Mozi, who is believed to have lived a few centuries after

Carrying out business in China may be met with various challenges by foreigners. Many of these major challenges are a result of different ethos in business ethics in China compared to Western countries. In understanding and managing in this different environment, knowledge of Confucianism and Chinese traditions in general are necessary. A connection between traditional values of a society and the evolvement of its economic system can be likely drawn, just as with capitalism being the economic system that evolved in Western countries. The recent introduction of a more capitalist economic system in Mainland China poses a challenge in a way that it can conflict with traditional values associated with Confucianism, which has heavily influenced Chinese society in aspects of, for example especially, hierarchy and behaviour in a community.

Even though the business environment in China is constantly evolving, one should keep in mind that business ethics in China include some unique concepts as discussed below. And furthermore foreign enterprises in China are also likely to encounter difficulties in instituting their home corporate ethics policies in this different cultural environment.

Weber’s Economic EthicsAround a century ago, Max Weber, a German sociologist, philosopher and economist contrasted the major moral concepts determining human behaviour in different societies worldwide, in his work Die Wirtschaftsethik der Weltreligionen (‘The economic ethics of the world religions’), and how they influence the economic system in those societies. Although Confucianism is not regarded as a religion, its scope of significance and influence in the Chinese society is comparable with the scope of

Confucianism in China Business

Influences on Corporate Ethics, CSR and HR

| Issue I 2015 | 5| www.hongkong.ahk.de / www.china.ahk.de

Mianzi refers to the concept of ‘face’, and is more widely defined as pride or self-respect and self-respect of others. Although this concept is universally applicable across different cultures and certainly exists in a way in Western societies, the degree of concern in the Chinese context is higher, and comes with various additional facets. One of the main features is showing respect for one’s social status and reputation in society, and perhaps it is more important to give face to others than to protect one’s own. Direct disagreement or confrontation with a colleague or a person in a higher position may lead to a ‘loss of face’ and is thus usually avoided. Gathering opinions from employees can be difficult yet not impossible, since any proposal for improvement could cause their superior to ‘lose face’ by suggesting that they are in some way deficient. In general, additional sensitivity must be applied.

Corporate Social Responsibility in ChinaCorporate Social Responsibility (CSR) in the western sense has been gradually arriving in China since the open door policy in the 1980s. CSR was imposed on Chinese suppliers by foreign companies in response of the rising awareness of CSR in the West. After a number of corporate scandals in the last 15 years, the awareness towards preventing such has been increasing. Additionally, globalisation, social media, and consumer pressure from the educated middle class population are also key drivers for the rise in importance of CSR.

There is little separation between business and private life for the Chinese. Practices such as gift giving or even cash gifts (‘red envelopes’) at special occasions such as Lunar New Year, or birth of a child, and invitations to family events are still prevalent in today’s business environment - serving the important function of honouring a potential business partner and strengthening ties. Foreign companies that have strict policies on gift- giving or receiving and hospitality may encounter difficulties enforcing them in the Chinese environment. In such cases, adjusted policies may be considered as long as they do not challenge core principles of the parent foreign company.

Since the fight against corruption has been strengthened with Xi Jinping’s anti-corruption drive since 2013, improvements have been visible recently. For example, such powerful senior officials, like the former domestic security chief Zhou Yongkang, have been removed from their posts and were put under investigation. Although these investigations may have initially even worsened China’s position in corruption indexes, the public awareness of the fight against corruption is all around.

Confucius, recognised that sole reliance on filial piety as a deficiency. As a result, Mozi highly advocated the creation of laws, also for the prevention of corruption.

The Confucian Manager In Confucian culture, the manager is expected to display humanism (ren). He is expected to manage with kindness and focus on relationship building, while employees work for the good of the group. Even though Chinese management today is characterised as authoritarian, the power of the leader is not absolute – managers must be virtuous in order to gain respect and keep their moral authority.

A Confucian approach applied to corporate ethics policy recognises a more community-oriented goal, while not only profit and organisational success is important, but also the needs of employees and customers, ideally resulting in high employee loyalty.

Therefore, there are challenges that can arise for a company relying on Confucian values in a country that is shifting to a more market-based economy. Confucianism applied in a company strongly fosters two tendencies: collectivism and hierarchy. Collectivist goals overshadowing individual interests can lead to individuals sacrificing their own interests. Harmony is crucial in a collectivist society seeking organisational success. Suppression of conflicts and individual rights for the sake of maintaining harmony does not yield to problem solving, but rather procrastinates the conflict. The strongly fostered hierarchy leaves limited room for open, free and honest discussion in conflict situation. Additionally, Chinese employees tend to be less willing to report unethical acts of colleagues above them in the hierarchy. Another feature of a Confucian based hierarchal structure is an authoritarian paternalism, deterring persons in general from making decisions autonomously.

Concepts of Guanxi and MianziThe concepts of Guanxi and Mianzi are also central in Chinese society and thus heavily influence business life. Guanxi can be translated as relationship, connections or networking. However, Guanxi is by far more complex than these terms by themselves, and can be considered to be a form of ‘social capital’. Guanxi is formed over time, cultivated energetically, and based on trust and reciprocity. Furthermore, Guanxi is essentially utilitarian rather than emotional, since it bonds individuals through the exchange of favours. A practical consequence of Guanxi, purely being built on personal relationships between individuals, are connections and loyalties that are often more important than organisational affiliations or legal standards.


values must be regarded as essential when aiming for success, both in terms of strategy development in CSR and HR management. However, Chinese culture is nothing but homogeneous. In a rapidly changing environment, there are also emerging values and beliefs other than Confucianism. Distinctions between inacceptable business practices in the West that can be seen as acceptable in a Chinese environment need to be acknowledged by foreign companies.

Hong Kong and Singapore, two former colonies that are also strongly Confucian-influenced, have successfully demonstrated how the blend of traditional customs in society combined with a stable legal system can foster rapid economic development and large accumulation of wealth, whilst maintaining low levels of corruption. These cities can be valued as a positive example of successfully incorporating aspects of different cultures into one economy.

Finally, empathy while training staff with illustrating issues on the basis of traditional Chinese principles can be rewarding: These values should be utilised and can have a positive effect. Guy Dehn, Founder of Public Concern at Work (UK), refers to the following example when explaining the importance of raising concerns and speaking up in Confucian terms: “If you see broken glass on the floor in your house, you would take action to protect your family. That philosophy can also be translated to the workplace.” n

This article was based on following information sources provided by: Institute of Business Ethics (2012): Judith Irwin, Doing Business in China: An overview of ethical aspects; East-West Centre of Business Studies and Cultural Science (2010): Alicia Hennig, Confucianism as Corporate Ethics Strategy; Unternehmensethik im Spannungsfeld der Kulturen und Religionen (2006): Johannes Wallacher (Hg.) and Stephan Rothlin, Spannungsfelder der Wirtschaftsethik im Chinesischen Kontext; Macrothink Institute Journal of Management Research (2009): Charles A. Rarick, Historical Antecedents of Chinese Business Ethics; Human Resource Development International (Taylor & Francis 2005): Jia Wang, Greg G. Wang, Wendy E. A. Ruona & Jay W. Rojewski, Confucian Values and the Implications for International HRD.

However, still some time will pass until the efforts are reflected in corruption indexes.

Human Resources Management (HR)HR practice in China is under constant change while it is steadily moving towards a market economy. However, the Confucian imprint in HR practices in China is still at least partly visible. Such as in the following: Employee selection is based rather on human feelings and Guanxi than personal competence; compensation is largely established on seniority rather than performance; performance evaluation is largely qualitative and tends to be subjective; HR development emphasises on management and utilisation rather than training and development; and HR functions are to support social harmony.

For foreign HR managers in the China, knowledge of the six features outlined above is important when developing HR strategies. In fact, the successful blend of Western management practices that stress physical and scientific principles, and partly ignore communal factors has proven to contribute to the economic success of other economies within the Confucian scope of influence, such as Hong Kong and Singapore.

A Final NoteIn terms of business ethics and CSR strategies, two major challenges remain when partnering with Chinese companies or establishing a foreign-owned company in China. Firstly, the customs in doing business in China are heavily based on values following Confucian tradition, with the concepts of Guanxi and Mianzi being notable. Secondly, implementing CSR strategies by both domestically and foreign companies is a maturing field and needs effort from both sides. The recognition of corruption being a major issue in the Chinese business environment, and the recent measures in fighting against corruption reflect efforts of the government to improve the business environment in China.

HR management in China bears properties that are very different compared to common Western HR practices, with the two concepts of Guanxi and Mianzi also playing an important role in this field. The knowledge and understanding of traditional Chinese

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In-SightMr. Ivo A. Hahn

CEO Greater China

Stanton Chase International

GC.comm: Mr. Hahn, could you name one circumstance during a negotiation where a distinct difference in Chinese business ethics became clear in contrast to Western business ethics?Mr. Ivo A. Hahn: When looking at Chinese business ethics, it is fair to say that they’re not merely very diverse from Western habits, but also form an integral part of the cultural and social fabric of the Chinese society. Just think of ‘hung bao’ (红包 in simplified Chinese), meaning ‘red envelopes’, which is essentially cash money handed out in red envelopes, presented as a gift at social and family gatherings, including weddings and major festivals, including Chinese New Year. How many Westerners would hand out cash money as a wedding gift?

Hung Bao has become an integral part of Chinese business culture, particularly in the PRC, but equally amongst other Chinese societies. This has reached endemic proportions when doing business in China. So much so, that Xi Jinping and the Communist Party felt obliged to declare ‘war on Hung Bao’ or war on corruption.

If you read daily newspapers, even in China, you will easily find articles that serve as a deterrent for the public at large, and which are equally meant to pacify the population that nobody is above the law, including - or particularly - high-ranking Government officials. During recent years, the Chinese Government also began to target Western MNC’s operating in China, some of which have unfortunately adopted the ‘Hung Bao mentality’.

GC.comm: How do these differences influence and challenge the activities of your clients in China? Mr. Ivo A. Hahn: As already mentioned, corruption has penetrated every aspect of doing business in China and is costing the economy billions of yuan. A recent

survey, conducted amongst companies in Hong Kong, concludes that they ‘invest’ 10% of total sales revenues in ‘lubricating’ business relationships in China. An inventive CFO of a Western MNC operating in China recently explained that his company books Hung Bao expenses as “TCF” – or “technical consulting fees”! I think this visualises the scale of the problem in China.

GC.comm: Does your company consult on adjusted corporate social responsibility strategies for clients doing business in China?Mr. Ivo A. Hahn: Yes, quite a number of our MNC clients have expressed concern about the widespread corruption in China, the risk of doing business in China, and the potential impact on their company. Consequently, we now brief every newly hired client-facing consultant that our company does not pay Hung Bao, neither to prospective clients, the government, nor anybody else. If any of our consultants would ever make such a request, we would terminate that person immediately, and without prior notice. We also brief candidates, whom we consider for senior leadership roles, about our & our clients’ unambiguous stance in upholding fair, transparent, and crystal-clear and clean business ethics.

Our company, is a leading global top 10 retained leadership partner, offering C-level executive search, assessment and recruitment services to multinational organisations in Greater China, Asia Pacific and worldwide. This also means that our own understanding of the different values between Western headquartered MNC’s and local Chinese candidates, as well as our ability to assess their specific values and ethics, is a critical precondition of our added-value services, ultimately resulting in the appointment of leaders for mission critical positions. n


14th Asia-Pacific Conference of German Business (APK)

More than 800 delegates from 31 countries attended the 14th Asia-Pacific Conference of German Business. During the two-day conference, totalling 28 hours of presentations and discussion from 94 remarkable panelists on the growth region Asia, attendees gained valuable first hand outlooks and participated in lively discussions. For the first time the conference was held completely in English on both days.

Each morning, breakfast sessions were held before the conference, including that of Mr. Ekkehard Goetting, Chairman & CEO, German Industry and Commerce on the Current Economic and Political Developments in Greater China. Ambassadors, Consul Generals, and Heads of the German Chambers of Commerce Worldwide Network (AHK) reported on current developments and experiences from their responsible region. The conference was opened by Sigmar Gabriel, Minister for Economic Affairs and Energy, the Chairman of the Asia-Pacific Committee Dr. Hubert Lienhard and also by the Vietnamese Prime Minister Nguyễn Tấn Dũng.

The Asia-Pacific Conference (APK) is organised bi-annually in Asia since 1986. Since then it has evolved into the largest German networking event in the region, attracting both business and political leaders. The APK accounts to the awareness of the fact that Asia has constantly been playing an increasingly important role in the global economy. To the same extent, the conference has become a catalyst and platform for a co-operative dialogue between Germany and Asia.

By tradition the closing ceremony of the conference is the handover of the conference from the host country to the economics minister of the following host country. The next APK in 2016 will take place in Hong Kong. Gregory So, Secretary for Commerce and Economic Development of Hong Kong, said in his keynote, that he feels as if he just won an Oscar! n

Ho Chi Minh City, Vietnam, 20-22 November, 2014

Welcome Reception, Reunification Palace

Working Breakfast with Ekkehard Goetting

Welcome & Opening by Nguyễn Tấn Dũng, Sigmar Gabriel, Hubert Lienhard

Dialogues with Asian Ministers

Economic Outlook Asia Panel


Industrie 4.0 – A vision for Smart Manufacturing Panel

Raw Materials and Resources Panel

Free Trade Agreements and Asia-Pacific ‘Winners and Losers’ Panel

Expectations of the Emerging Middle Classes in Asia Panel

How to Develop and Retain Talent Panel

Innovation and IPR Panel

Dinner Reception, Sheraton Hotel - 21 November 2015

Working Breakfast

Keynote Speaker Sigmar Gabriel

Press Conference with Sigmar Gabriel

Openness for FDI Panel


How to Finance a Growing Company in Asia Panel

Health Care in Asia Panel

Political Stability and Security in Asia-Pacific Panel

Statements ‘Asia 2030’ Panel

Dinner Reception, Botanical Garden - 22 November 2015

Closing Plenary by Brigitte Zypries, Bui Quang Vinh, Hubert Lienhard, Gregory So Kam-leung

AHK colleagues

APK participants



Chinese Education Industry

Education reforms have been among the highest priorities of the Chinese government since the second half of the 20th century. China has substantially improved basic education for its citizens, quadrupling its number of university graduates during the past decade.

The pressure to be admitted into a secondary school with higher reputation and performance on standardised university entrance exams is extremely great, since university admission is limited and competitive.

Laws, high-pressure-competition, and affluence have led the private education sector to grow. Correspondingly, subsidised social services in China are tied to the family’s hometown thereby constraining domestic migrants to enrol their children in private schools. As well as, an increasing number of affluent parents are aiming to avoid the public education system that requires elevated discipline and drills a high workload. However, attending international school makes it almost impossible to receive tertiary education in a Chinese public university.

These driving factors have shaped a diverse private education sector, which is continuously growing.

Current StandingAmong the remarkable achievements is the near elimination of illiteracy, and in recent years, tremendous results in the Programme for International Student Assessment (PISA). The illiteracy rate fell from over 80 percent in 1949, while literacy rate among adults was at 95% in 2012, according to UNESCO statistics. In the most recent PISA study from 2012, Shanghai-China scored highest in all main categories and improved significantly from the previous study of 2009, when Mainland China participated for the first time. China’s

Shaping a New Talent Pool

Mathematics Reading Science

Score annualised change in score points Score annualised change

in score points Score annualised change in score points

OECD average 494 -0.3 496 0.3 501 0.5

Shanghai-China 613 4.2 570 4.6 580 1.8

Hong Kong-China 561 1.3 545 2.3 555 2.1

Singapore 573 3.8 542 5.4 551 3.3

Korea 554 1.1 536 0.9 538 2.6

Japan 536 0.4 538 1.5 547 2.6

Germany 514 1.4 508 1.8 524 1.4

Australia 504 -2.2 512 -1.4 521 -0.9

United Kingdom 494 -0.3 499 0.7 514 -0.1

United States 481 0.3 498 -0.3 497 1.4

Brazil 391 4.1 410 1.2 405 2.3

2012 PISA results of Shanghai-China, Hong Kong-China, Taiwan, Korea, Germany, United Kingdom


Special Administrative Region – Hong Kong has been participating and scoring high too, since the first PISA study was conducted in year 2000.

Hsiao-Chia from Yantai, Shandong province belongs to the winners of China’s ruthless education system. Having achieved good grades in all stages of his primary and secondary education, he had received admission to the school of engineering of Xi’an Jiaotong University, where he gained an undergraduate degree. Today, he is a PhD student at the University of Hong Kong. Having completed public education in a Chinese third-tier city, he experienced the rigour of the Chinese education system: Classes can extend well into evening, and the amount of homework is very high, thus going to bed past midnight on weekdays is not unusual for an average Chinese student.

China has especially achieved excelling results in Shanghai city after reforming its education system, making its students the best test-takers according to the PISA study worldwide. In Shanghai, teachers are rigorously evaluated to keep the teaching standard high, but differences in quality of education between major cities and rural areas remain large, and the high results achieved in Shanghai cannot be seen emulated across to the whole country. Since the introduction of standardised entrance exams for the admission to high schools (Zhongkao) and universities (Gaokao), the academic focus has shifted to test training rather than a comprehensive well-rounded education.

According to the most recent Business Confidence Survey conducted by the German Chamber of Commerce in China in 2014, finding qualified staff remains among the top three business challenges for

German companies in China. Intensive test training appears to turn out good students in terms of results in standardised tests, however at the expense of general skills needed at work. This is supported by the ‘human resource challenges’ scoring among the highest challenges (74.1%) for German companies in China, even though Shanghainese students scored best worldwide according to the most recent PISA study. Though HR challenges are certainly not solely due to education matters, it is still possible to draw this correlation.

The SectorThe deficits of the public education system and its rigour have resulted in a gradual development of the private education sector; providing wide-ranging alternatives or support to public education. Private education is active in a number of sectors, where three different types of schools are gradually evolving: Private schools enrolling both local and foreign students with the flexibility to integrate an international curriculum to a certain extent; Sino-foreign joint-venture schools fully integrating international and Chinese curricula and taking both local and international students; and lastly International schools enrolling only foreign students with a fully international curriculum. Besides these full-day schools, private providers offer tutoring, language training, and courses specifically catered to prepare for standardised tests. Other than classical academic disciplines, there are also professional schools offering management, arts and sports education.

China Private Industry Market Size 2009-2015E

Market Size (CAGR: 15.3%)

Source: Deloitte Research

The growth of the Chinese private education market has also been fuelled by public demand, primarily through rising affluence of Chinese citizens, but also by national-level plans to increase enrolment in higher education to 40% by 2020. China is rapidly internationalising, thus overseas vocational training (including AHK dual


system professional training programmes in Hong Kong and China) is beginning to evolve and poses lucrative business opportunities. Training and tutorial services supplementary to public school are a growth-subsector with high potential. As another part of internationalisation, the demand for English language training as a subsector has reached a market size of RMB 30 million in 2012 and continues to grow.

Executive training in China remains by now comparatively rare. In view of the development of China’s rapid growth, such education in the long-time will be further demanded. Businesses today are requiring more workers with an executive MBA degree or similar, thus presenting a rewarding growth market for such a service.

Students at major universities in the US, Western Europe and Australia recognise the rising number of Chinese among their fellow students. According to the UNESCO institute of statistics, with almost 700,000 students abroad, China accounts nearly 20% of total mobile students abroad in 2012. This contrasts to a much lower number of mobile students hosted (abt. 90,000) in China. All revealing is the fact that the number of Chinese students engaged in full-time studies abroad, at many institutions, is larger than those only on an exchange programme - staying for a semester, or a year. Hosting more than 200,000 Chinese students,

Company Stock Ticker Symbol

2011 Fiscal Year

Revenue, US$m

Revenue growth over prior FY (%)

Net Income, US$m

Profit Margin

(%)

Financial reporting cutoff

date

New Oriental EDU 558 44 99 18.2 2011.05.31

Ambow Education AMBO 273 31 36 13.2 2011.12.31

Xueda Education XUE 222 44 5 2.2 2011.12.31

TAL Education XRS 111 59 24 22 2011.02.28

Chinacast Education CAST 76 50 10 13.7 2010.12.31

ChinaEdu Corp CEDU 68 18 3 3.9 2011.12.31

ATA Inc ATAI 45 26 3 6.5 2011.03.31

China Distance Education DL 42 20 -1 -1.2 2011.09.30

Modern Education jB1082 35 -24 3 7.6 2011.06.30

Noah Education NED 14 -86 -4 -30.8 2011.06.30

TOTAL 1,442 178 12.4

Publicly-listed Chinese Education Companies

Source: Factiva, Deloitte Research

the United States continue to be the most popular destination, followed by Japan, Australia and the United Kingdom (abt. 75,000 – 100,000).

The high and still increasing number of Chinese students abroad, combined with the decreasing number of students taking the Zhongkao and Gaokao in the recent years due to the one-child-policy, implicate the upcoming challenges to the Chinese education industry.

Although business opportunities are widespread, the education industry is facing more competition, making market development and product enhancement essential for continued success and investment return. Nonetheless, with China’s continuing economic growth, urban families are more concerned about the quality and performance of their children’s education than ever before. n

This article was based on following information sources provided by: Deloitte (2012): William Chou and Charlotte Lu, Reflections on the Development of the Private Education Industry in China 2012; UNESCO Institute for Statistics (2012); OECD (2012): Andreas Schleicher, PISA 2012 Results in Focus. Photos credited to: Rex Pe and Frontierofficial (flickr).


Green Germany

When strolling through middle class urban residential neighbourhoods of larger German cities, one will come to realise a significant difference in the landscape of stores and restaurants compared to other European cities. The number of businesses catered to or at least partly catered to a vegan diet is eye-catching. However, the abrupt rise of such businesses during the past ten years is not a reflection of a sudden increase of citizens whose diet has forgone of any meat, seafood, dairy and egg. In fact, it reflects the increasing awareness for a well-balanced diet and lifestyle. Being vegetarian or vegan and consuming organic food is also considered to be fashionable and modern, since it reflects consciousness on morality, sustainability, health and fitness. This increasingly prevalent consciousness also touches on the whole issue of work-life-balance - its compatibility with an urban life. The increasing number of urban farming projects is another development closely linked to this modern, conscious, sustainable and healthy lifestyle: the ‘green’ lifestyle.

The Vegan BusinessUntil around five years ago, one could find less than a handful of vegan restaurants in Berlin. Today, the official website of Berlin lists fifteen vegan restaurants. Most of the urban districts feature at least one purely vegan grocery store, while there are additionally four chain-based organic grocery stores offering a larger range of declared vegan goods. Vegan cooking books are also filling the shelves of book stores. According to a study conducted for ARD, one of the major two German state TV channels, market researchers discovered that revenue generated from fifty popular vegan groceries increased by almost 40%.

Estimating the number of actual strict vegans is difficult. According to a study conducted by order of the Federal Ministry for Food and Agriculture, 80,000 German citizens live a vegan diet, by far less than one percent of the overall population. Vegan associations

in the country claim numbers that are ten times larger. Additionally, it must be noted that vegans might not require or demand any specifically ‘vegan’ declared products, but just prepare their own diet with common groceries available at any common store. Thus, the group of customers boosting the revenue of the fifty popular groceries mentioned above is not strictly vegan – they are residents who are conscious about their diet, health and sustainability, plus consider vegan products as more appropriate for themselves. A neologism for such customers is ‘flexi-vegan’ or if they do consume meat once in a while ‘flexi-vegetarian’. As a result, this group of customers has the highest potential for rapid growth, boosting business opportunities for vegan food products.

Arguments for VeganismVegans cite a variety of reasons that pursued them to constrain themselves on their food choices, and assign morality a higher value than convenience and for some enjoyment. In this article, one of the major contributions to the debate of animal rights shall be introduced. The work Animal Liberation (1975) of controversial Australian philosopher Peter Singer has highly influenced this debate. Singer defines human behaviour as human speciesism, the discrimination or exploitation of animals due to an assumed primacy of the human species. He develops the thesis that the belonging to specie has no moral significance. Although there are differences between humans and non-humans, they share the capacity to suffer or to feel pain, and equal consideration must be given to that suffering. Especially in the case of mammals and birds, there appears to be significant evidence for their capacity to suffer. The result of this moral theory would be the boycott of any products that evolved from cattle breeding, but especially from industrial livestock farming. Vegan Food ProductsGroceries that are excluded in a vegan diet in contrast to a vegetarian diet include obvious examples such as dairy products and eggs, while gelatine, lard and rennet may be among the less stated examples. Soy instead of cow’s milk, ice cream based on coconut, almond, rice or soy milk, vegan schnitzel based on tofu, even vegan cheese - similar products can be found nowadays on the shelves of the stores mentioned above. However, the quality of such products aiming to imitate meat

Berlin Pioneering in Urban Sustainability & Diversity in the Food Industry


or dairy must be critically reviewed, especially vegan convenience products. They frequently contain a long list of artificial ingredients such as flavour enhancers, making the visual appearance and taste more attractive. Thus, many vegans rather prefer to not rely on meat replacement products, but rather prepare their food by themselves from natural and probably healthier ingredients. However, strictly vegan food can pose health risks and increase the probability of malnutrition such as lack of iron, zinc, proteins, calcium and vitamin B12 when not balanced effectively. As a result, the market for dietary supplements aiming to reduce the risk of malnutrition is growing.

Vegan – Just a Matter of Food?A number of vegans and flexi-vegans widen the scope to not just limited to food, but expanded to any products they use or wear. Among the more obvious cases are the use of leather and fur, trickier examples are wool, silk, or supplements and medication encased or using animal products. Toiletries may contain animal products or testing as well, and many vegans try to avoid such. Thus, the market for cosmetics that do not contain animal products and are not tested on animals is posing another field with growth potential. In addition, the market for vegan fashion is yet quite small so far, but also a sector with growth potential.

Urban SustainabilityThe issue of compatibility between work-life-balance and urban life in Germany is as old as urbanisation itself. During the period of industrialisation in the 19th century, when a large number of people migrated to the cities seeking employment and a better life, many of these migrants lived under very poor conditions. To improve their situation, the cities introduced organised allotment gardens, which were cultivated by the assigned tenants. The use of such gardens is limited to private use as a non-permanent home. Until today, a law protects allotment gardens with fixed leasing fees, with 833 allotment-garden complexes in Berlin surviving until today.

With the rising consciousness of sustainability within urban areas, which are typically the areas furthest away from food production, urban farming has been receiving increased attention in the recent decade. An initiative deserving special attention for its wide and ambitious scope of targets is the “himmelbeet” project in Berlin-Wedding, literally translated as ‘skybed’. The non-profit organisation initiated by ethnologist Hannah Lisa Linsmaier runs an intercultural community garden, focusing on ecological farming of regional and cultivation on traditional plant varieties. Community activities

include workshops on gardening, cooking, environmental education, nutrition and various cultural activities. The garden also features a café welcoming any guests in the garden. Institutions and private persons have the opportunity to rent their own bed for one season for cultivation of their own plants.

Green Germany boosting the Development of Non-Profit Organisations and Business OpportunitiesIn a society developing to be more conscious about health and sustainability, ascribing moral issues as a higher value above convenience and pleasure has become increasingly common. Living a strictly vegan lifestyle can be seen as the highest achievement in controlling oneself to be healthy and ethical, and is at any rate partially desired by growing share of the population. Berlin, historically known to be a cultural breeding ground, is pioneering in pursuing to live the Green lifestyle. While the rising demand for healthy food is imposing promising business opportunities in the food, catering and beauty industry, it also inspires people to bring the process of food production back to urbanity. n

This article was based on following information sources provided by: ARD Plusminus (2014): Jan Zimmermann, Boom-Geschäft vegane Produkte; Senatsverwaltung fürStadtentwicklung und Umwelt Berlin (2012): Geschichte des Berliner Kleingartenwesens; Bundesministerium für Ernährung und Landwirtschaft (2013): TNS-Emnid-Umfrage des BMEL, Einkaufs- und Ernährungsverhalten in Deutschland; himmelbeet (2014): Hannah Lisa Linsmaier, Satzungsziele. Photo credited to: himmelbeet.


Recruitment, Training & Coaching Services

Human Resources & Recruitment When it comes to searching for candidates for your company, GIC offers customised services and two available platforms for client’s pursuit:

HR Consulting: A ‘One-stop-shop’ project management of the whole recruiting process, starting with position profiling to concluding the employment contract. Also in collaboration with GCC member partners, GIC delivers a comprehensive range of customised HR tools/consulting e.g.: evaluation and training of client’s HR departments, staff performance/assessment management, and more. Employers benefit from our deep first-hand understanding of both German and Chinese cultures, and wide industry exposure to recruit the right candidates.

Job Report: The premier career platform for job seekers to reach companies recruiting in Hong Kong or South China. The job report contains listings of internationally oriented qualified employees and executives. Published monthly and distributed directly to GCC member companies and uploaded to GIC/GCC’s website - http://jobmarket.china.ahk.de, the service offers potential candidates direct contact to top management and personnel managers of international companies, as well as online exposure.

Job Market: The web-based recruitment platform is an efficient source for domestic and international talents, and a pre-eminent platform for professionals with a German background/interest i.e. Germans based in Greater China, Germans interested in coming to Greater China, Chinese with German language skills, and Chinese with an interest in establishing themselves within a German multinational company. Participating companies gain access to our pool of highly qualified candidates. The Job Market has more than 520,000 monthly page views, 500 companies posting jobs regularly, and about 15,000 candidates per year.

For enquires please contact: Ms. Dora Fung / Ms. Venus Mo.

Apart from executive training seminars offered by the chamber, GIC along with GCC and GSIS offer:

Searching and Developing ‘Talents’

Dual System Professional TrainingInternationally and globally operating businesses especially rely on employees who possess the flexibility, the language and intercultural skills, as well as professional qualifications to master the growing challenges of a global economy. In order to help German and international companies located in Hong Kong to meet those demands, GIC, GCC, in close co-operation with GSIS (since 1984) offer a dual system professional training programme (in accordance with the provisions of the German Vocational Training Act (BBIG - Berufsbildungsgesetz) for two vocations relevant to the Hong Kong labour market:

• Wholesale and Foreign Trade Management Assistant (Kaufmann/ Kauffrau im Groß- und Außenhandel)

• Transport and Logistics Management Assistant (Kaufmann / Kauffrau für Spedition und Logistikdienstleistung)

The German professional training system (Duales System) enables training companies to recruit and to train their future employees according to their own needs in specific markets and business environments. The companies design training schedules and programmes to their requirements, and will eventually benefit from the practically oriented, directly applicable qualifications the trainees have obtained during the training period.

Trainees receive practical and theoretical training over 22 months, taking on different duties in every department of the company, thus gaining a comprehensive understanding of the business in all its facets, while at the same time studying for the theoretical knowledge and expertise it takes to be a well-qualified management assistant in the sector of ‘Wholesale & Foreign Trade’ or ‘Transport and Logistics’. Upon graduation, trainees receive a diploma issued and signed by GCC and the Association of German Chambers of Industry and Commerce (DIHK). The diploma (Kaufmannsgehilfenbrief) is fully recognised throughout the European Union and other European countries.

For enquires please contact: Ms. Sabine Florian

In this globalising and digital business world, where goods, services, people and ideas move around the clock, the manner in which human resources are being managed and developed are continuously changing and adjusted to its region. Recruiting, training and coaching in multicultural cross border settings can be a mine field for the ill-equipped. German Industry and Commerce Ltd. supports companies of all sizes with their staffing and development needs.


From Market Entry to Market Share!

Whatever stage your business is at in Greater China, we can help you achieve your goals!

German Industry and Commerce Ltd. (GIC) and German Chamber of Commerce, Hong Kong (GCC) work hand in hand in providing business services to our members and customers. While member services focus on a specific range of activities, which are being described in more detail separately, GIC, as part of the global German Chambers of Commerce Worldwide Network (AHK) and being officially mandated to represent and promote Germany’s bilateral business interests in our host countries overseas, concentrates on the needs of our customer base in Germany and locally. Of course, all these services are available to GCC members as well and regularly at discounted rates. The services range provided by GIC/AHK is marketed under the ‘DEinternational’ brand - or ‘DE’ in short - and introduced in this section of the magazine regularly.

Service Range:Sourcing and Sales • Business Partner Search / Business Matching • Market Research • Importer’s List Germany • On site / Factory Inspection / QC • Market Testing

Legal & Investment • Investing in Hong Kong/Company Registration • Investing in Greater China • Company Credit Report & Debt Collection • VAT Refund • Customs and Tariff Information • Dispute Resolution and Mediation

Office in Office • Virtual Office • Invest in Germany (German Trade & Invest) • Landbell • Hamburg Business Development Co-operation • German National Tourist Office

Recruitment and Training • Dual System Professional Training • Job Market and Job Report • Coaching

Business Services • Interpreter & Translation Services • Meeting Room Rental

Environmental Protection & Sustainability

Publications & Business Promotion

Chamber Membership

Trade Fairs

Events & Delegations

Coaching - Not only for athletes Coaching has gained enormous importance and recognition as a collaborative relationship that helps executives and business professionals to maximise their potential and optimise career opportunities. Coaching isn’t an ‘off-the-shelf’ product, but rather diverse and individually designed. GIC has developed with a pool of qualified and experienced member coaches, and elected four areas of expertise:

• Executive Coaching • Blended Business Coaching• Cross-Cultural Coaching • Entrepreneurial Coaching

‘Executive Coaching’ encourages a systematic solution-focused process of goal-setting, action taking, and reflection of changes designed for CEOs, business owners, department heads and decision makers. Supplementing to training/management concepts, a form of Executive Coaching, focusing on personal concerns and challenges faced at work, ‘Blended Business Coaching’ is a systematic way to support professionals in obtaining specific and/or desired work behaviour, in addition aligning personal values and attitudes with those of the company and its business objectives.

Nowadays companies shift jobs and people across international and cultural borders readily, whereby assignee can be confronted with unfamiliar cultural challenges, which may result in frustration, which in return may jeopardise an entire venture. To operate successfully, professionals require tools and support to deal with cultural differences, adapt to the diversity in value, customs and practices. ‘Cross-Cultural Coaching’ addresses these challenges not only to the seconded, but also to partners/spouses.

Successful SMEs equally depend on their entrepreneur’s personal development. ‘Entrepreneurial Coaching’ focuses on individuals who are committed in creating a thriving and successful business; discovering how to capitalise on their personal and entrepreneurial strengths, manager their limitations, face their fears, and tap into their motivations.

For enquires please contact: Ms. Kristina Ernst.

For Your Development Targets Find out more about GIC’s Recruitment,

Training & Coaching services, Contact us today:

German Industry and Commerce Ltd. Tel.: +852 2526 5481

Email: [email protected]

Information Technology Solutions

EXECUTIVE COACHING: Executive Coaching is designed to help executives

attain an additional perspective and greater

knowledge of themselves as well as others. Effective

direction and interaction starts with an accurate

perception of oneself. Executive Coaching

approaches from a total system-oriented perspective.

CROSS-CULTURAL COACHING: A person’s identity is formed by culture, gender,

generation and life experience. Whether international

assignments or individually chosen career paths

abroad, new ventures often bring (unexpected)

challenges. Diverse worldviews impact how people

interact with others – leading to wider experiences and

growing prospects on the positive side and to bias and

conflict on the other side. Raising awareness of

identity with openness towards variations and

reflection on personal roots, Cross-Cultural Coaching

will help to reflect on personal background and

develop an understanding and appreciation of the

perspective of others.

BLENDED BUSINESS COACHING: Subjects of personal concern and the challenges

individuals face at work require a sharper focus.

As a supplement to training and management

concepts, ‘Blended Business Coaching’ is a

systematic way to support professionals in

obtaining a specific and desired work behavior, as

well as aligning personal values and attitudes with

those of the company and its business objectives.

ENTREPRENEURIAL COACHING: Entrepreneur Coaching focuses on individuals

who are committed to creating a thriving and

successful business. Entrepreneurs will learn in a

collaborative process to accelerate their results

and achieve their defined goals. Through

coaching entrepreneurs can discover how to

capitalise on their personal and entrepreneurial

strengths, manage their limitations, face their

fears and tap into what motivates them.

WHY COACHING? Coaching has gained importance as a collaborative relationship that helps executives and business professionals to maximize their potential and to optimize career opportunities. In order to improve performance levels and to respond to changes in the business environment coaching addresses areas: Executive

Coaching Blended Business

Coaching Cross-Cultural

Coaching Entrepreneurial

Coaching Coaching is one of the most effective ways to create dynamic, focused organizations. It supports people to use their talents, skills and experience- while at the same time it ensures clear goals are in place and outcomes are achieved.

REACH YOUR GOALS WITH THE RIGHT PARTNER FROM OUR COACHING NETWORK

AREAS OF EXPERTISE:

Executive Coaching

Blended Business Coaching

Cross-Cultural Coaching

Entrepreneurial Coaching

COACHING REQUEST FORM

Name:

Company:

Address:

Phone:

Mobile:

Email:

Type of Coaching requested:

☐ Executive Coaching ☐ Cross-Cultural Coaching

☐ Blended Business Coaching ☐ Entrepreneurial Coaching

What best describes the challenge you are facing?

For specific requirements, please indicate here:

Preferred language: ☐English ☐German ☐Cantonese ☐Mandarin Preferred date and time:

For enquiries and the return of the request form, please contact: German Industry and Commerce Ltd.

Ms. Kristina Ernst 3601 Tower One, Lippo Centre, 89 Queensway, Admiralty Hong Kong Phone: +852 2526 5481 Fax: +852 2810 6093 Email: [email protected]

COACHING REQUEST FORM

Name:

Company:

Address:

Phone:

Mobile:

Email:

Type of Coaching requested:

☐ Executive Coaching ☐ Cross-Cultural Coaching

☐ Blended Business Coaching ☐ Entrepreneurial Coaching

What best describes the challenge you are facing?

For specific requirements, please indicate here:

Preferred language: ☐English ☐German ☐Cantonese ☐Mandarin Preferred date and time:

For enquiries and the return of the request form, please contact: German Industry and Commerce Ltd.

Ms. Kristina Ernst 3601 Tower One, Lippo Centre, 89 Queensway, Admiralty Hong Kong Phone: +852 2526 5481 Fax: +852 2810 6093 Email: [email protected]


Ansmann Energy InternationalYour Specialist for Mobile Energy Solutions

ANSMANN i s a g loba l leader in the development and production of high quality battery and charging technologies. Founded as a ‘one man’ business by Edgar Ansmann in 1991, the German based company has become an international force in power and energy. At eight locations worldwide there are around 400 employees working in the business segments of ‘Consumer’ and ‘Industrial Solutions’ with products relating to ‘mobile energy’. High Quality products at a fair market price with a perfect service are the key to the company’s success.

In addition to its comprehensive standard product portfolio of batteries, chargers, power supplies, flashlights and related energy accessories, Ansmann designs and manufactures customised energy solutions that are individually tailored to customer requirements. Products from Ansmann are often integrated into equipment from OEM manufacturers, for example in garden equipment, medical instrumentation or motor drive systems. So in many applications Ansmann is the beating ‘energy-heart’ of the equipment.

Skilled employees develop products that meet the most stringent quality requirements. In the production and in the place of incoming goods in Germany, both are checked under strict controls. Regular ‘test wins’ in magazines and industry awards indicate an outstanding product quality and a great sense of new trends for the future. That’s why various clients from industry and trade have trusted in the

products from Ansmann for many years.

Different tests confirm that Ansmann have extended their advance in technology. As required, all components will be developed with international standards in mechanical and electronic certifications. Highly skilled employees and modern manufacturing facilities in Germany and China guarantee the smooth flow of production orders whilst maintaining the highest level of product quality. Ansmann has an in-house test centre to carry out UN transport regulation testing. This service is available for both Ansmann’s own battery packs and battery packs assembled by external customers.

As a well-known producer, Ansmann claims to offer an excellent product quality and best service for its customers. The certification of quality management ISO 9001-2008 provides an internal and external transparency, concerning the work flow processes.

From the first inspection to in-line manufacturing process inspections and the final quality control, comprehensive testing ensures a consistently high standard of quality. All results will be recorded. In addition many Ansmann products have the CE-mark and further approvals, such as the TÜV-logo. This and the warranty, that lasts longer than the legal guarantee period for a wide range of the products, offer users a maximum amount of confidence and security.

Ansmann offers excellent products and fair prices with a high margin for the professional trade. n


Member UpdateTUV Rheinland Safety Hero Lands in Hong KongTUV Rheinland's Safety Hero Programme was successfully held at the Farm Road Government Primary School recently on 10 December. The company’s safety expert trained more than 210 students on the safety of toys and child-related products, and made them into safety heroes. The child education programme started in 2014 in Hong Kong and the rest of Greater China; and by the end of the year, nearly 1,000 children had participated. TUV Rheinland aims to ensure a safe, intuitive way for children to play with toys.

The talk features a demonstration on how to identify hazardous clothing materials, safety tips for playing with different kinds of toys, the potential safety hazards of mishandling toys and products etc. TUV Rheinland’s safety expert also instructed the students on how to wear a safety helmet when riding a bicycle or a scooter. To enrich the programme's content and format, TUVtel, TUV Rheinland's children's magazine, was published for the first time in the Greater China region this year. n

DEKRA Acquires Test Institute QuieTek Corporation in TaiwanDEKRA expands its EMC and wireless testing capabilities in Asia. The expert organisation has signed an agreement for acquisition of the QuieTek Corporation in Taipei, Taiwan. This purchase compliments DEKRA’s service portfolio and further strengthens DEKRA’s position in testing of electrical and electronic products and components. The QuieTek Corporation provides testing services for prestigious manufacturers of notebooks, tablets, wireless modules, LED TV sets, cameras, projectors, mobile phones and automotive electronics. The company has over 250 employees and runs three laboratories in Taiwan, as well as one in Suzhou near Shanghai in the People’s Republic of China. n

Merck Presents Liquid Crystal Window Technology at BAU 2015Merck will be presented at the BAU 2015 exhibition in Munich, Germany, for the first time with its newly developed liquid crystal window technology. With its state-of-the-art liquid crystal mixtures, the company has been the global market and technology leader for many years. While liquid crystals have mainly been used in television, smartphone and laptop displays until now, Merck is leveraging its unique technology for smart window systems to open up new application areas. Merck is developing this technology together with partners from the glass, window and facade industry.

This innovation, which is to be marketed under the licrivision™ brand, will be able to optimise light and thermal impact on glazed surfaces in the future, thereby conserving significant amounts of energy. This is possible by placing special liquid crystal mixtures between two panes of glass. Similar to liquid crystal displays, liquid crystals in windows can be brought into various alignments by applying a voltage to them. Depending on the alignment, more or less light passes through the liquid crystal layer and thus through the window. Various window sizes are currently being tested in pilot projects. Merck is working in close partnership with established window manufacturers and researching additional possibilities for switching liquid crystal windows autonomously based on photovoltaic principles. Then they could be operated independently of the building’s electricity supply. n

German White Asparagus Dinner

May 29, 2015Save this day in May

White Asparagus Dinner with Wine Pairing

Presented by GCC, Bachmair Wines Ltd. &

Conrad Hong Kong


AGS Four Winds Hong Kong November was important month for AGS’s charitable activities in Hong Kong. From providing logistics for the Foreign Correspondents’ Club Charity Ball to helping move highlight auction items, including a 1994 Harley Davidson, which alone raised HK$210,000 to support the children of local charity Po Leung Kuk. With a week later, moving and setting up ‘Picnic in the Park’ in Discovery Bay, which funds charities that support less fortunate children in Hong Kong. Furthermore, AGS was the logistics sponsor for the inaugural The Hub Charity Ball to help disadvantaged youth in Hong Kong and deliver valuable auction items that were key for their fundraising efforts. And finally AGS helped set up the Sandy Bay Mini Rugby Festival, the biggest mini-rugby event in Hong Kong with over 5,000 kids competing in 6 age categories. The girls in the 10 and under category competed for the ‘AGS’ cup – congratulations to HKU Sandy Bay Girls under 10! The event was filled with bouncy castles, face painting, a marching band, and rugby stars in waiting! n

Proven top performance: Voith’s 1,000th TPKL fluid coupling goes to a Chinese 6.4 MW belt conveyor drive Voith recently manufactured their 1,000th fluid coupling type TPKL. This coupling will go to the DaTong Coal Mining Group in China. The group has already had good experiences with Voith fluid couplings. Convinced by the good performance of hydrodynamic power transmission, the decision for the drive line arrangement in the main belt conveyor of a new coal mine was also made in favour of Voith fluid couplings. In this specific case the mine will receive four fluid couplings type TPKL. The fill-controlled fluid couplings will be used in a 6.4 MW belt conveyor drive with demanding requirements. The 3,160 metre (10,367 feet) long underground belt conveyor is driven by four 1,600 kW motors, with a planned capacity of 4,000 tons per hour. The belt conveyor is designed for a demanding workload as it will transport coal uphill at a 14 degree angle. n

Euler Hermes launches innovative international debt collection mobile app Euler Hermes, the worldwide leader in trade credit insurance, has launched an innovative mobile ‘Land of Payment’ application (app) that assesses the complexity of collecting debt in more than 40 of the countries where the Group is present. The new app and interactive map of collection complexity ratings are innovations that offer clients key information when and where they want it, helping businesses minimise their risk of complex debt collection by providing direct valuable trading decision data. Euler Hermes has also published a special report on international debt collection across different markets: ‘International Debt Collection: The Good, the Bad and the Ugly’. n

Greater China Day 2015

The Greater China Day 2015 organised by the German Chamber of Commerce in China and the Chamber of Industry and Commerce Ostwestfalen will be held on Wednesday 17th June at the IHK Ostwestfalen in Bielefeld.

The Greater China Day is an annual event highlight of the AHKs Greater China in Germany. This year's Greater China Day will focus on German small and medium sized companies in the context of China with Hong Kong and Taiwan.

For more information about the programme, please contact:

Ms. Melanie LindstaedtE-mail: [email protected].: +86 20 8755-2353.

German Wine TastingLook out

this October!Interested to exhibit,

please contactMs. Kristina Ernst

Email: [email protected] Tel.: +852 2532 1290


Member IntroductionGlobal Management Services Ltd.Unit A-E, 21/F, MG Tower,133 Hoi Bun Road, Kwun Tong, Kowloon, Hong KongTel.: +852 3723 8500 | Fax: +852 3723 [email protected] | www.gms-fashion.com

Global Management Services Limited is a garment sourcing company, carrying out apparel buying services and all other related activities for the European market.

While we are still a relatively young company, our focus on quality and reliability has allowed us to build strong and long-term relationships with some of Europe’s largest and most established retailers and fashion brands over the last years.

From our offices in Hong Kong and Dhaka we supervise production in a range of countries, including Cambodia, China, Bangladesh and Madagascar. For the millions of garments we manufacture every year, we have specialised teams focusing on development, production, quality control and social compliance across different product groups, including knitwear, outdoor, jersey and main woven.

In order to cater for our diverse clients’ requirements we offer knowhow and competence in different materials and production processes, allowing us to provide for anyone from luxury brands to fast fashion labels. n

Corporate Member

Mr. Tim Christian Weckerlein

Managing Director and Head of Administration &

Support

Human Capital Partners4901 Central Plaza, 18 Harbour Road, Wanchai, Hong KongTel.: +852 2840 0406 | Fax: +852 3102 [email protected] | www.hcp-china.com

Human Capital Partners is a global retained executive search firm & talent management consultancy that specialises in the automotive sector. Our in-depth understanding of conventional and unconventional automotive entities includes OEM’s, Importers, Financing/Leasing, Dealerships, Private Equity and Tier Suppliers with operations in China and across Asia.

HCP places high quality candidates in CEO and top management positions by utilising assessment tools that gauge our client’s existing executive talent and leadership needs. Our expertise in succession planning and pipeline analysis brings added value to our Client’s as we assimilate new talent into their culture. Our long-term Client relationships validate our ability to consistently deliver exceptional talent.

As part of the LIASE Group, we are now present in 16 countries across 4 continents, which enables us to search locally and truly globally. Our 13 offices in China, and 20 offices in Asia, are strategically located in the region’s major automotive hubs.

Human Capital Partners has a strong foundation in the Chinese markets with offices in Shanghai, Shenyang, Chengdu, Nanjing, Beijing, Wuhan, Chongqing, Guangzhou, Shenzhen, Xiamen, Changsha, Dalian, and Hong Kong. n

Corporate Member

Mrs. Vanessa MorielManaging Director - Asia


Kuehne & Nagel Ltd.24/F, MassMutual Tower38 Gloucester Road, Wanchai, Hong KongTel.: +852 2823 7768 | Fax: +852 2823 [email protected] | www.kuehne-nagel.com

Since 1890, when the business was founded in Bremen, Germany, by August Kuehne and Friedrich Nagel, Kuehne + Nagel has grown into one of the world’s leading logistics providers.

Today, the Kuehne + Nagel Group has more than 1,000 offices in over 100 countries, with over 63,000 employees. Our key business activities and market position are built on the company’s truly world class capabilities:

Seafreight:- Number 1 global seafreight forwarder- Sustained year-on-year double digit growth in managed freight- Solid partnerships with an extensive range of preferred ocean carriers

Airfreight:- Number 2 global air cargo forwarder- Leader in innovative cargo management concepts- Global Cargo 2000 Phase 2 certification

Contract Logistics & Integrated Logistics:- Number 2 global contract logistics provider- Worldwide network of warehouse and distribution facilities- Number 1 global lead logistics provider

Overland: Close partnerships with best-in-class carriers

We provide logistics services to virtually all key industry sectors including: Aerospace, Automotive, FMCG, High Tech, Industrials, Oil & Gas Logistics, Pharma & Healthcare, Retail. n

Corporate Member

Mr. Otto WangDirector

Mr. Soenke HinrichsManaging Director

Melchers & Hinrichs HK Ltd.1905 Shun Tak Center West Tower168-200 Connaught Road Central, Hong KongTel.: +852 2589 1567Fax: +852 2546 [email protected]

Melchers & Hinrichs is a leading buying service provider for promotional items and fashionable luggage made in Asia. The company supplies business customers from all over the world with top-quality, innovative goods of good value. The most important partner is Inspirion (www.inspirion.eu), one of Europe’s biggest importers and suppliers of promotional merchandise. Managing Director and company owner Mr. Soenke Hinrichs has been in the promotional items and China trade business for about 30 years. n

Corporate Member


Richard Wolf Hong Kong Ltd.1406 Grand Millennium Plaza181 Queen’s Road Central, Sheung Wan, Hong KongTel.: +852 2187 3446Fax: +852 2187 [email protected]

Richard Wolf GmbH in Germany is one of the leading manufacturers of high-quality products for endoscopic diagnostic and therapy in human medicine.

Our company headquartered in Knittlingen/Germany also provides individual solutions in the fields of ESWL and ESWT, as well as solutions for industrial applications. As a full-range supplier in endoscopy we have a workforce of 1,400 highly qualified employees.

We operate as an innovative international Group with 14 branches and 130 distributors worldwide.

Our rigid and flexible endoscopes are used in the disciplines of arthroscopy, surgery, gynaecology, laparoscopy, ENT, thoracoscopy, urology and visualisation. The endoscope is the centre of our success spanning more than 100 years in this sophisticated area of precision engineering. n

Corporate Member

Mrs. Andrea LorenzGeneral Manager

STAUFEN.ASIA Consulting Academy Ltd.15/F, OTB Building160 Gloucester Road, Wanchai, Hong KongTel.: +86 21 6441 7112 Fax: +86 21 [email protected]

Staufen is an implementation oriented provider of consulting and training services with head office in Germany and branches in China, Brazil, Switzerland, Poland and Italy. Worldwide more than 200 employees implement excellent processes directly onsite, whereof 40 consultants are based in our Chinese offices in Shanghai, Beijing, Shenyang and Hong Kong. Focus of our consulting is Lean Management, Procurement & Supplier Management, as well as Management & Leadership.

The Staufen Academy offers public courses and in-house trainings to qualify your management and your employees. In addition to excellent know-how, we provide the necessary ‘do-how’ for practical implementation. For this reason, you will find us at the scene of action (Gemba) for most of the time and always as close as possible to the processes being improved – together with the people being developed. The Staufen approach will strengthen your workforce and carry your organization to the next level. n

Corporate Member

Mr. David MuellerGeneral Manager


Compagnie Française d’Assurance pour le Commerce Extérieur, branch in Hong Kong29/F, @Convoy, 169 Electric Road, North Point, Hong KongTel.: +852 2585 9188Fax: +852 2585 [email protected]

Hung Wong joined Coface as the CEO for Asia Pacific region in August 2014. Stationed in Hong Kong, Hung oversees the operations and business development in the Asia Pacific Region where Coface has a direct presence in twelve markets.

Hung Wong, a science graduate from the National University of Singapore, enjoyed a long and successful career in Cisco. He received the ‘Top Sales in Asia’ award in 2002 and was promoted to manage Cisco’s Enterprise & Commercial business in Vietnam in the same year. He was appointed Director, Channel Asia in 2005, managing seven countries, and was subsequently Director, Channels Financing for Cisco Systems Capital’s Asia-Pacific region from 2008-2011.

Prior to joining Coface, Hung was Managing Director, Distribution, for the Asia-Pacific region of Juniper Networks, where he had been leading a partner organisation and cross-functional teams to drive business growth since 2012. n

Change of Chamber Representative

Mr. Hung WongCEO, Asia Pacific, Coface

Geodis Wilson Hong Kong Ltd.2101-02 Park In Commercial Centre56 Dundas Street, Mongkok, Kowloon, Hong KongTel.: +852 2208 6888Fax: +852 2359 [email protected]

Mr. Michael Herrmann, a German native, joined GEODIS five years ago in Hong Kong with previous international placements in the AMERICAS and EUROPE. Michael is responsible as the Director- Corporate Accounts for developing and managing a portfolio of Corporate Clients and Strategic Vertical Markets for Geodis in Asia Pacific. A graduate of Heriot-Watt University of Edinburg, Scotland in Supply Chain Management, Michael has broad experience in supporting transportation and logistics as a value creation for the clients. n


Mr. Michael HerrmannCorporate Accounts Directors,

Asia Pacific


Island Shangri-La, Hong KongPacific Place, Supreme Court Road, Central, Hong KongTel.: +852 2877 3838Fax: +852 2521 [email protected]/island

As General Manager of Island Shangri-La, Hong Kong, Franz Donhauser oversees the overall hotel operation. Mr. Donhauser is no stranger to Island Shangri-La, Hong Kong, where he held the same position from 2002 to 2008. He grew up in Austria, where his ancestors owned and operated a small family hotel for many generations. n


Mr. Franz DonhauserGeneral Manager

Lufthansa Cargo AG2007-10 Tower 2, The Gateway25 Canton Road, T.S.T., Kowloon, Hong KongTel.: +852 2769 7882Fax: +852 2753 [email protected]

Konstantin Stathopoulos assumed responsibility for the operations of Lufthansa Cargo in South China, Hong Kong and Taiwan effective October 2014. He is has been with the Lufthansa Group since 1991 holding various positions in the passenger, MRO as well as logistics units and was previously stationed in different Asian locations before spending the last four years in Frankfurt in the Revenue Management Department. n


Mr. Konstantin Stathopoulos

Director, South China & Taiwan

Lufthansa German Airlines10/F, Guangdong Investment Tower148 Connaught Road Central, Sheung Wan, Hong KongTel.: +852 2868 2313Fax: +852 2521 [email protected] | www.swiss.com

Malte Haut, General Manager Hong Kong, South China & Macau, is responsible for overseeing all commercial activities for passenger business of Lufthansa group airlines in these markets. He joined Lufthansa German Airlines in Frankfurt in 2001 as Global Key Account Manager. Then he moved to Singapore to lead the Lufthansa Consulting office as Head of Asia and Pacific. In 2012, Mr. Haut was appointed as Head of Revenue Management for Lufthansa’s hub in Frankfurt. He has broad experiences in managing sales functions, business transformation projects in several airlines and managing pricing and revenue management processes for Lufthansa. n


Mr. Malte HautGeneral Manager,

Hong Kong, South China & Macau


Neumann Partners c/o CTPartners9/F, Club Lusitano16 Ice House Street, Central, Hong KongTel.: +852 3983 2000Fax: +852 2167 8188www.ctnet.com | www.neumannpartners.com

Joined CTPartners in 2013 focusing on business development in the consumer and industrial sectors in Greater China and Asia Pacific. Prior to joining CTPartners, Tanya served as a Senior Client Partner in the Industrial Practice of Korn/Ferry International. She has been involved in recruiting and training at a leading global insurance company and an international airline during her earlier career.

Tanya holds an MBA from the University of Newcastle. n


Ms. Tanya LauPartner,

Head of Consumer Practice, Greater China

Schenker International (H.K.) Ltd.35/F, Skyline Tower, 39 Wang Kwong RoadKowloon Bay, Kowloon, Hong KongTel.: +852 2585 9688Fax: +852 2379 [email protected]/cn

Mr. Henry Schmidl joined Schenker International (H.K.) Ltd. in 2009 as Director Ocean Freight. In 2013, he was appointed as Director Sales and Key Account Management.

Before returning back to Hong Kong in 2006 Henry has been working in various roles in Europe and USA. n


Mr. Henry SchmidlDirector

- Sales & Key Account Management,

Hong Kong & South China

Sovereign Trust Hong Kong Ltd.1601-1603, Kinwick Centre32 Hollywood Road, Central, Hong KongTel.: +852 2542 1177Fax: +852 2545 [email protected]

Ryan Lawson is an Associate Director at Sovereign Trust (Hong Kong) Ltd. and is responsible for consulting clients on the formation and management of onshore and offshore companies and trusts.

Ryan holds a Bachelor of Banking and International Finance from Flinders University (Australia) and has 10 years’ experience in Financial Services. n


Mr. Ryan LawsonAssociate Director


UniCredit Bank AG25/F, Man Yee Building68 Des Voeux Road Central, Hong KongTel.: +852 2533 4000Fax: +852 2533 [email protected]

Dr. Andreas Wagner is the Head of Asia Pacific Region, Corporate & Investment Banking within UniCredit Group since March 2014. Based in Hong Kong, he has the managerial responsibility for all business activities in the entire Asia Pacific Region. Previously he held the position of Chief Administrative Officer of the Corporate & Investment Banking Division of UniCredit and various other positions in the Group. n

Additional Corporate Member

Dr. Andreas WagnerHead of Asia Pacific Region

Voith Turbo Ltd.908 Guardforce Centre3 Hok Yuen Street East, Hung Hom, Kowloon, Hong KongTel.: +852 2774 4083Fax: +852 2362 [email protected] | www.hongkong.voithturbo.com

Mr. Jinping Zhu joined Voith AG in 1996 and has since held various positions in different functions, businesses and countries within the group. In 2014 he took the responsibility of General Manager of Voith Turbo China, including in Hong Kong.

Jinping came from electrical engineering and financial controlling background, and holds a MBA degree from University of Maryland at College Park, USA. n


Mr. Jinping ZhuManaging Director

WIK Far East Ltd.Unit B, 23/F, @Convoy169 Electric Road, North Point, Hong KongTel.: +852 2811 1938Fax: +852 2590 [email protected]

Mr. Benjamin Becker has been in Hong Kong since 2004 and joined WIK Far East Ltd., as International Sales Manager in 2008.

He is responsible for developing and managing International OEM key accounts in Asia Pacific as well as global Private Label business. Furthermore he supports project co-ordination between Headquarter in Germany and locations in Far East. n


Mr. Benjamin BeckerInternational Sales Manager


26.11.201457th InterCham Young Professionals Cocktail

The 57th edition of the InterCham YPC took place at Spasso Italian Bar-Restaurant-Terrace in Tsim Sha Tsui. This thrice a year popular event was well attended again and provided great opportunities for networking across 27-chambers’ members and non-members. n

10.12.2014GCC Annual General Meeting & Luncheon: Hong Kong Post-Occupied Central

The 2014 Annual General Meeting and Luncheon was held at the Harcourt Suite of the Hong Kong Club in Central. The new committee members for 2014-2015 were elected by members during the meeting, and announced at the luncheon that followed. This year’s speaker was Hon. Mrs. Regina Ip Lau Suk Yee, Non-official of the Executive Council, member of the Legislative Council and Founding chair of the New People’s Party. A seasoned ex-government official, academic and politician, Mrs. Ip impressed her audience with a sharp and detailed analysis of the history of Hong Kong’s governance, pre- and post-handover, and the resulting implications on today’s actual situation, and possible future scenarios for the social and political development of the SAR. n

Flashlight


12.12.2014German Chamber Christmas Party 2014

The 2014 German Chamber Christmas Party was held at the poolside of the exclusive Royal Hong Kong Yacht Club, Causeway Bay. Guests, friends, colleagues and family enjoyed the unique location, with a large buffet dinner, unlimited drinks, a live band (sound sponsor: Sennheiser Hong Kong Ltd.) dancing, food tasting, a game booth, table prizes and door gifts.

The chamber would like to express gratitude and thanks to all the generous sponsors, naming here just the platinum category: Audi Hong Kong, BMW Concessionaries, Deutsche Bank Hong Kong Branch, Jebsen & Co Ltd. and Mercedes-Benz Hong Kong Ltd. n


21.01.2015Workshop: Lean Administration – methods of lean in indirect areas

This workshop was held by Jan Haug, Head of Shenyang Branch and Head of Competence Center Lean Development at Staufen, at the GIC/GCC boardroom. Attendees were given a general introduction of lean administration processes and how indirect areas such as purchasing, controlling, human resources, finance, sales, IT, customer service, etc. can to be optimised toward high excellence just as seen applied in manufacturing. Processes to improve all support functions and cross-functions were explored at the workshop applying lean principles. n

28.01.2015The Hong Kong Baptist University Student Briefing

Following a long established tradition, this year again some 20 students from the Hong Kong Baptist University, of which four were German exchange students, participated in the GIC briefing on ‘Business relations between Germany and China’, which is an integral part of the curriculum. Topics of interest were the past, present and future role of the Hong Kong SAR in this development, activities of the German business community in Hong Kong, and the key drivers of business between the two countries. n

29.01.2015GC.N@work

At Divino Patio Ristorante Bar Pizzeria in Wan Chai, GCC members and non-members enjoyed the valuable business networking opportunity, while nine new members were introduced by Sabine Florian, Executive Director, German Industry and Commerce. Everyone had a great time with colleagues and friends, enjoying drinks and Mediterranean canapés. n


Upcoming GIC/GCC Events

GCC Date Name of Event Venue

March

18 March 2015 GC.N@work Alibi, 5/F, Langham Place, Mongkok

19 March 2015 Joint Business Community Luncheon: Post-Budget Address with HKSAR Financial Secretary Hon. John Tsang

Hong Kong Convention & Exhibition Centre

25 March 2015 Lunch Seminar: Latest Trends for Enhancing Sourcing Teams GIC/GCC Boardroom

April

24 April 2015 Executive Development Seminar: Adjusting to Cultural Differences GIC/GCC Boardroom

29 April 2015 Luncheon with Dr. Michael Fuchs Harcourt Suite, Hong Kong Club

May

12-13 May 2015 Training: Lean Administration - Methods of Lean in Indirect Areas GIC/GCC Boardroom

21 May 2015 GC.N@work TBA

29 May 2015 GCC German White Asparagus Dinner Brasserie, Conrad Hong Kong Hotel

Upcoming Trade Fairs

Hong KongDate Name of Event Location

March

22 - 24 March 2015 Art Basel Hong Kong Hong Kong Convention & Exhibition Centre

22 - 24 March 2015 Affordable Art Fair Hong Kong Hong Kong Convention & Exhibition Centre

23 - 26 March 2015 Hong Kong International Film & TV Market Hong Kong Convention & Exhibition Centre

31 Mar - 01 Apr 2015 APLF Fashion Access Hong Kong Convention & Exhibition Centre

30 Mar - 01 Apr 2015 APLF Materials Manufacturing & Technology Hong Kong Convention & Exhibition Centre

31 Mar - 01 Apr 2015 Transport Security & Safety Show Hong Kong Convention & Exhibition Centre

April

11 - 14 April 2015 Global Sources Electronics & Components Fair AsiaWorld-Expo

13 - 16 April 2015 International ICT Expo Hong Kong Convention & Exhibition Centre

13 - 16 April 2015 Hong Kong Electronics Fair 2015 Hong Kong Convention & Exhibition Centre

20 - 23 April 2015 Hong Kong Houseware Fair Hong Kong Convention & Exhibition Centre

20 - 23 April 2015 Hong Kong International Home Textiles Fair Hong Kong Convention & Exhibition Centre

27 - 30 April 2015 Hong Kong Gifts & Premium Fair Hong Kong Convention & Exhibition Centre

27 - 30 April 2015 Hong Kong Printing & Packaging Fair AsiaWorld-Expo

27 - 30 April 2015 Sourcing Fair Gifts & Premiums AsiaWorld-Expo

May

06 - 09 May 2015 Hofex Hong Kong Convention & Exhibition Centre

18 - 20 May 2015 HK Medical Fair Hong Kong Convention & Exhibition Centre

23 - 24 May 2015 Hong Kong International Education Expo Hong Kong Convention & Exhibition Centre


Point of View A Member’s Point of View When and why did you or your company decide to come to Hong Kong?Having lived in Hong Kong since 1983, so for more than thirty years, it was our decision to continue living and working here in Hong Kong also after my retirement from Rhenus Logistics. My wife and I decided to open up our own logistics & consulting company in February 2014, to utilise the extensive knowledge of the logistics Industry in this region and contacts developed over so many years.

In your opinion, how have Hong Kong and South China changed since your arrival?There have been enormous changes. In the beginning, all shipments from China had to be routed via Hong Kong for both seafreight and airfreight. Only with the development of port and airport infrastructure and the opening of such facilities to foreign operators could direct services start. So while volumes grew quickly in Hong Kong, more and more shipments were shipped directly from China. This development will continue. What would you say are the advantages/disadvantages of doing business in Hong Kong?Hong Kong is the ideal location to handle logistics for the Greater China region, as the capacity and efficiency of ports and airports is unrivalled. Connections from Hong Kong to any destinations worldwide are vast, quick and reliable. However with more direct services from China, the volume of goods routed via Hong Kong will not increase much more. Major positive factors are also the independent judiciary, common law, rule of law, the ICAC and the free flow of capital. The ‘free port’ status is absolutely essential, as shipments, once in Hong Kong, can be shipped with a minimum of ‘red tape’ and everything is clear and predictable. How do you see the development of Hong Kong in relation to China in the next years?Hong Kong will lose more volume of shipments to China, as their infrastructure develops further, customs regulations are streamlined and new direct services are offered. How well are German companies doing in Hong Kong/ South China in your opinion?German companies do very well, as they in general have a high reputation for professionalism, efficiency and fairness. Looking into the future, what are the main challenges facing your work/company?The role of Hong Kong is changing, as the ‘middle man’ in trade and shipping is less and less essential. With the RMB slowly becoming an international currency, more business will be handled directly. How long are you expected to stay?As long as we find clients, who are prepared to employ our services and as long as we are still eager to work and enjoy what we do, we will continue to be here.

Thank you for your interview Mr. Mahncke.

Mr. Hans-Eberhard Mahncke

Managing DirectorMahncke Logistics & Consulting Co. Ltd.

GC_Comm_2015_Jan_v2_15012015_outline.pdf 1 29/01/2015 1:38 PM

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