Koert working experience in China - page 15/16

8/14/2019 Koert working experience in China - page 15/16

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CHINACHINA

December 2009 / January 2010MITA 373/03/2001


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Prologue

Th ADB pd pptt Dth b pp t t, tat ad ha kdby a pay t, t, tk t ad bhp at.

Richard van derWerf

Rutger OudejansFrank Kuijsters MarleenDieleman

Ard Huisman Hans Loth

Vol.19 No. 10 December 2009 / January 2010

1

Jan de Vegt

Marie-HlnePiederiet

Time ies ...

I have the feeling that the summer holidays have just nished and now suddenly I realizethat Christmas and New year are approaching.

If I look back at the events we have organized since summer, I realize that it is true. TheAnnual Dinner and Dance, the enterpreneurial panel, the visit of Jaap van Zweden and hisorchestra, the wine tasting at the Hollandse Club and nally we (and I) are preparing for theend of year network drinks at my place, for which I invite all ADB members warmly.

Looking back, it will probably be for some people a year to better forget, the aftermath ofthe credit crisis, the economies going down and all the consequences that may have brought.We see now signals that Singapore (and other countries) are technically out of recession.Adding the word technically in these reports makes me suspicious. What are these journalistsand analists trying to say? Technically we are out but effectively we are still in?

In my personal opinion it will take some more time before all economic indicators are pointingin the right direction. I think we are recovering from a huge overreaction on the credit crisis,companies as a reaction (or as a consequence) stopped orders, used-up their inventories andnow, as consumer spending is not going down that drastically, they have to restock. This givespressure in factories and transportation systems, as factories and transport systems were scaleddown due to the sudden lack of orders due to the credit crisis or maybe their credit position.Could that be the part that leads us technically out of recession, but not really?

China will play a leading role in global economic recovery, new opportunities will come up,reason for us to get some further insights in China and business developments, which is thetheme of this combined December/January issue.

I do hope that we are overcoming the economic crisis, but I still have my doubts. Technicallywe may be out, but if we are effectively out.., time will tell ....

On the contrary we see that the number of Dutch people in Singapore still has risen overthe last year and the ADB has recorded its largest number of (new) members in history.This of course motivates us to take our tasks even further.

December is family month Sinterklaas, Christmas, New years Eve. Most events you spendwith family and friends, whether here in Singapore, in the Netherlands or any other place onthis Earth, therefor I wish you and your families Merry Christmas and a Happy and HealthyNew Year.

Enjoy the holidays and see you next year on our traditional Nieuwjaars borrel on the11th of January!

And in between the December festivities, do nd the time to relax and read the ADBMagazine!

Jan de Vegt


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Prologue 1

review

Selling Wine in Singapore 3

Business

World Expo 2010 Shanghai China 4What does a Chinese consumer want? 6

Rich, Richer, Richest: Wealth and Private banking 8in ChinaBuilding business ties 10My Chinese adventure: hosting meetings and 12embracing naptime Sleeping in China?

Under Chinese management 14

Bizz AgenDA 15

greenPAge

Low Carbon City Initiative 16

TrAvelChina beaches 18

inTerview

Ask4Me in Guangzhou 20Doing business in China, an interview with 22Michiel Verhoeven

sPeciAl

The Little Red Book 25Tibet, or did the 13th Dalai Lama kowtow? 26

Know Your TAxChina challenges Special Purpose Vehicles 28

column BY...

Richard SoemitaTime to move to Paraguay? 29

Business news 30

evenT AgenDA 32

conference cAlenDAr 34

emBAssY info 35AssociATion info 35

A monthly publication of the

Association of Dutch Businessmen

c t t

ADB BoArD

Jan de Vegt President

Marie-Hlne Piederiet Honorary Secretary

Ard Huisman Honorary Treasurer

Richard van der Werf Member

Frank Kuijsters Member

Marleen Dieleman Member

Rutger Oudejans Member

Hans Loth Member

eDiToriAl commiTTee

Frank Kuijsters, Chief Editor

Gene Kwee

Karin Gerbens

Lineke van Nederpelt

Richard Soemita

Sara Caris

Willem Anne Hoekstra

secreTAriAT

Lineke van NederpeltMailing Address:c/o 22 Camden Park, Singapore 299814Telephone: 9101 6201email: [email protected]

Website : www.adb.org.sg

Email : [email protected]

Editorial contributions for the next issue maybe sent or handed over to the ADB Secretariat,before or on the day of the monthly ADBmeeting. The contents of this magazine are partlybased on information received from third parties.The Committee does not take responsibilityfor the correctness of the articles.

Designed by Jennifer Phua

Printed by Khoo Sun Printing Pte LtdMITA 373/03/2001

Membership fee is S$ 100 per calendar year.For registration, please see the website www.adb.org.sg/en_member_signup.htm.Membership is renewed automatically effectivethe rst month of the new calendar year.

Make your cheque payable to Assocation of DutchBusinessmen and send to ADB, c/o 22 CamdenPark, Singapore 299814.

Termination of membership must be receivedby ADB Secretariat in writing before 1 January,otherwise you will be charged for the full amountfor the following calendar year.

Please notify the ADB secretariat of any changes inemployer, (email) addresses or any other personalparticulars that might be of interest to the ADBadministration.


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In January 2008 the big dream of Arjen Blomcame through, he started his own wine businessin Singapore. The name of the company wasWine Directions Pte Ltd and specializes in theimport and distribution of boutique wines fromNew Zealand.

During the ADB wine talk on Tuesday November17, 2009 it became clear that there are a lotof differences between the Netherlands andSingapore on the preference and consumptionof wines.

The Dutch have access to an abundantoffering of wines from the European continent,with the French wines leading the pact. Often is

the preference for certain wines and wine stylespassed on from generation to generation, as theparents guide their children often in the rst wineexperiences. There is also a lot of exposure to theEuropean wines due to the holidays celebratedin the different wine producing countries. Asa result they hardly look for wines beyond theEuropean continent.

For the common Singaporean, wine is areasonable new phenomenon. Wine started tobecome a part of their lifestyle only 15 yearsago. As there isnt a wine tradition or legacy,they are open to wines from all over the world.Singaporeans are also adventurous with regardstrying new products and styles, which alsoreects in their wine choice.

s w sapAustralia is for many years the market leaderin volume in the Singapore market and in retailthey have a 60% market share, followed by Franceand much smaller volumes by Chile, USA, Italy andNew Zealand. The main reason of the Australiansuccess is the style of the Australian wines thatsuit the Singapore palate and the value for moneyaspect that these wines offer.

Also the proximity of Australia towardsSingapore helps a lot as many Singaporeans havebeen there on holiday, send their kids to studyin Australia and the supermarkets are filled

with Australian produced products. That makesAustralia a trusted brand which helps in sellingtheir wines.

In case you are not that familiar with theAustralian wine region and wine styles, you canuse the overview below as a guideline whenbuying your Australian wines.

Western Australia Margaret River: Chardonnay and Cabernet

Sauvignon

South Australia Clare Valley: Riesling (dry style) and

Shiraz Barossa: Shiraz, Shiraz and more Shiraz Adelaide Hills: Sauvignon Blanc, Pinot Gris

and Pinot Noir McLaren Vale: Chardonnay, Cabernet

Sauvignon, Shiraz

Victoria Yarra valley: Chardonnay en Pinot Noir Heathcote: Viognier and Shiraz Macedon Ranges: Sparkling wines Mornington Peninsula: Chardonnay and

Pinot Noir

Enjoy your next glass of wine.For more information about Wine Directions

visit their website www.winedirections.com

Arjen Blom

Wendy Laheij, Lyshia Liauw, Piet GroenMarie Helene Piederiet, Mathieu Spros, JurnTerpstra, Marcel Krol

Wilco Alberda, Michael Krayenhoff,Roderick Kasteel, Arnaud Schmutzer

More pictures onwww.adb.org.sg


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wd ep 2010 shaha chaglobal interest, concerns all nations, developed orless developed, and their people. Being the rstWorld Exposition on the theme of city, Exposition2010 will attract governments and people fromacross the world, focusing on the theme BetterCity, Better Life. For 6 months, participantswill display urban civilisation to the full extent,exchange their experiences of urban development,disseminate advanced notions on cities and explorenew approaches to human habitat, lifestyle and

working conditions in the new century. They willlearn how to create an eco-friendly society andmaintain the sustainable development of humanbeings. Expo 2010 Shanghai China will centreon innovation and interaction. Innovation is thesoul, while cultural interaction is an importantmission of the World Expositions.

Th: Btt cty, Btt :In 1800, only 2 percent of the global populationlived in cities, but by 1950, the gure had risento 29 percent. In 2010 around 55 percent of thetotal human population will live in the city. Despiteall its glories, there is no denying that the city

today, because of high-density living patterns,faces a series of challenges, such as spatialconicts, cultural collisions, resource shortagesand environment degeneration. Without effectivecontrols, the unchecked expansion of cities willaggravate these problems and consequentlyerode the quality of urban life.

All the problems facing the city are believedto have originated from the discords between manand nature, between man and man, and betweenspiritual and material aspects of life. It is alsomaintained that such discord, if left unattended,will inevitably lead to the decline of the qualityof life in cities and even the degeneration ofhuman civilisation.

It is in the face of such discord that Expo 2010Shanghai China proposes the concept of a Cityof Harmony responding to the appeal for BetterCity, Better Life.

So far, more than 180 countries and 34international organisations have conrmed theirparticipation in World Expo 2010, with 70 millionvisitors expected over 6 months. The Netherlandsand Singapore have their own pavilion.

Th Dth pa (4.000 m2), designed byarchitect/artist John Krmeling, is called HappyStreet. Its an entire street in the shape of thenumber eight, an auspicious number in Chineseculture. Visitors to the pavilion stroll along 20

houses in different styles that represent Dutcharchitectural tradition, including designs byGerrit Rietveld and Jan Wils.

By Sara Caris

Next year the World Expo will be organized inShanghai, China.

The World Expo is a large-scale, global andnon-commercial exposition. It aims to promotethe exchange of ideas and the developmentof the worlds economy, culture, science andtechnology; and to allow nations to publiciseand showcase their achievements, as well as toimprove international relationships.

The World Expo has seen three eras since the

rst World expo in 1851 at the Chrystal Palace,London:1. Industrial isation from 18511938 : World

expositions were focused on trade and thedisplay of technological inventions.

2. Cultural Exchange from 19391991 : Worldexpositions became more strongly based ona specic theme of cultural signicance, andbegan to address issues of humankind.

3. Nation Branding from 1992present: Countriesstarted to use World expositions more stronglyas a platform to improve their national imagesthrough their pavilions

ep 2010 shaha cha will be an event toexplore the full potential of urban life in the 21stcentury and a signicant period in urban evolution.The prospect of future urban life, a subject of


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With the theme Better city, better lifeExpo organisers have challenged participantsto generate ideas for liveable cities in the 21stcentury. As a largely urbanised and denselypopulated country, the Netherlands has much tooffer in this regard. The Dutch pavilion promotessustainability, environment, and corporatesocial responsibility. It shows, for instance, the

innovative ways in which Holland deals withspace, energy and water.Th sap pa (3.000 m2) designed

by Kay n Ta Architects will showcaseSingapores achievements in urban planning, watertechnology and environmental services, whilepromoting closer relations between the peopleof China and Singapore. The pavilion will alsohighlight Singapores ability to offer a high-qualityand integrated environment to live, work andplay within a compact area through sustainableplanning and development.

The Singapore Pavilion is to be calledUrban Symphony. The theme is best expressed in

the pavilions

architecture, onewhich evokes images of amusical box. It forms an orchestra

of elements and a symphony for the senses from the choreography of the plazas waterfountain to the rhythm of fenestrations on thefaade.

Pictures and exhibits of Singapore adornthe way to the atrium space and main hall ofthe rst oor, where visitors will enjoy variousactivities; taking in performances right up tothe expanse of the second oors column-freeopen space. Topping off Singapores reputationas a much-admired garden city is the rooftops

A Garden in the Sky. The pavilions four columnsstand as symbols of the four main races plus theirforeign guests, supporting the entire structuralsystem on a oor comprised of different shapesand sizes. This demonstrates how while someof the Singaporean may come from elsewhere,they are all able to live, work and play togetherin perfect harmony while sharing the samecommon ground.

wh: May 1st to October 31st 2010wh: Waterfront of the Huangpu Riverbetween Nanpu Bridge and Lupu Bridgem at: http://en.expo2010china.com


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c t, th ch y t t

. Th habtat th Pp rpb

are increasingly afuent. It is a dream market

ay pa. Bt h d y t d

thd?

The Chinese today is not the same as him ofa few years ago. The living room of a family in atown like Shaoxing, in the east of the country,can now look just like those of a middle classfamily from Alkmaar or Oss.

Today, the modern Chinese will be able tomeet all his basic needs, and perhaps looks likethe Westerner of a few generations ago. Yet heis looking for the luxury and comfort to matchhis new standard of living. It appears that the

prosperity of the average Chinese in the comingyears continues to rise rapidly. The gross nationalproduct is still growing, global crisis or not.Companies from around the world closely watchthe Chinese consumers nding increasing nancialprosperity.

A few years ago DVD players, iPods, watchesand mobile phones were enthusiastically welcomedand sold like hot cakes. But Chinese consumersare with their time. An overdose of choice anda growing welfare standard makes him moredemanding and less satised. A proper strategythat is responsive to the wishes of modernChinese is the key to business success in China.

mtpBut what are some 1.3 billion Chinese peopletoday waiting for? A concrete top ten popularproducts or services is impossible to compile. Buthere some recommendations to get the modernChinese onto your side.

ft: Focus on the smaller cities likeChengdu and Xiamen. Research indicates theseplaces, where the average population still variesfrom 2 to 12 million people, as the most fertilemarkets for the moment. The population is notprimarily critical, but the economic development,

purchasing power and social status of the residentsdetermine the attractiveness of the metropolis inthe making.

what d a ch at?By Frank Kuijsters


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INTERNET

AANSLUITI

NG

SKYPE

SOFTWARE&

HARDWARE

Source: Roland Berger Strategy Consultants

sd: The Chinese over 40 years old are as a

customer much less interesting than those in theirtwenties and thirties. The reforms introduced byDeng Xiaoping in the early eighties marked thebeginning of the new China. The Chinese in theirtwenties and thirties have grown up in a marketoriented China and are thus more open to foreigninuence and innovations. Moreover, they haveconsiderably more disposable income than oldercompatriots.

Thd: Invest in building a relationship withthe Chinese consumer. Loyalty in Chinese goesfar, especially in their choice of brands. But abrand must invest heavily to win the condence ofChinese people. Branding is therefore crucial. That

effort is often rewarded, the chances are that aChinese woman who is satised with the cream ofLOreal, will continue to buy LOreal for the restof her life. For international brands there is a bigchallenge, because Chinese are naturally attachedto home-grown products. Skepticism about importproducts is particularly with older, more traditionalChinese. Yet the young, modern Chinese is veryexplicitly looking for Western brands.

fth: Choose the right sales channel.Modern Chinese are fond of shopping malls andhypermarkets, huge supermarkets where besidesfood, things like clothing and electronics are sold.The French Carrefour recently opened its 135th

store, the American Wal-Mart has opened thisyear 100 Shops. Whether a Chinese goes for hisshopping to a mall, Wal-Mart, grocery store or usesthe internet, all depends on his domicile. Smallercities dont always have a hypermarket, just likebig cities virtually have no small neighborhoodsupermarkets anymore. Behind sale on the Internetis a great exclamation mark: the rise of Chineseonline hoppers is unprecedented. Last year theirnumber grew by over 137 percent, representinga ow of nearly 18 billion U.S. dollars.

fay: Think of the environment. Chineseconsumers are increasingly environmentallyconscious. Modern Chinese have already expresseda preference for sustainable business.

Selsh consumers

Researchers have identified eight different archetypes of the

Chinese consumers in the 21st century. The detailed proles can be

used with a product to match consumer preferences.

1. et (21.3%)

People over 30, high income, averse to traditional values,

eccentric, the early adopters.

2. Hdt (15.1%)

Average income, attracted by anything new and trendy,

especially out on pleasure and comfort.

3. Tadta aat (12%)Thirties, low incomes, combined with a traditional mind

up consumerism, status oriented, but their buying behavior

inuenced by traditional beliefs.

. mat (11.8%)

Predominantly women, risk-and little interest in new technology

or innovation. Looking for the best value for money. Limit their

consumption to basic necessities.

5. md p (11.5%)

The serious consumer looking for the best quality and would be

willing to pay more. Less sensitive trend, focus on career.

6. P aat (11.1%)

Mostly men, average age 34 years, the richest little interestedin environmental or social issues, especially from its own success

and showing them.

7. Tadtat (9.4%)

The typical small businessman, low price-conscious, especially

for the long term. Family life and provide a good stable home

and determine consumer attitudes.

8. ct (7.9%)

40 +, mostly women, great value to social and environmental rules,

little interest in trends or status.


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rh, rh, rht: wath adPat bak cha


8

The number of Chinese US$ millionaires is expected to cross 450,000 by the end of the year, withtheir total assets under management hitting $1.73 trillion. Despite the global economic downturn,their wealth still expanded this year, creating growing opportunities for Private Bankers. In comparison:it will take another 4 years for the market in the rest of the world to regain 2007 levels. The globalwealth dropped 11.7 percent last year to $92.4 trillion.

China is arguably the most explosive wealth market in the world, as rising income and a highsavings rate are likely to continue. The number of millionaires in China is expected to reach 800,000over the next four years.

Wealth is very concentrated. Half of it is owned by only about 0.1% of the households, in particular

in the regions Guangdong, Beijing, Shanghai and other coastal provinces. Although these millionairessaw growth, the total wealth in the country fell by 2.3 percent to $3.41 trillion last year, as the countrywitnessed volatile stock markets, plunging exports and uctuating property prices throughout the crisis.

Competition to service these customers grows. In 2007, foreign banking giants like HSBC, Citibankand BNP Paribas, have set up private banking operations.

Of the local banks, Bank of China was the rst Chinese bank to launch private banking business. It hasnow established private banking centres in 15 regions and last year bought the Geneva-based HeritageFund Management. The Industrial and Commercial Bank of China, the nations largest bank by assetsand retail network, will expand its private banking network from the current ve cities to 10, to coverother economic regions like Yangtze River Delta, Pearl River Delta and central China.

By Willem Anne Hoekstra and Frank Kuijsters

Wang Chuanfu Zhang Yin Xu Rongmao Huang Guangyu

ri

ch

riche

riche

st

The 2009 - list of richest people in China counts 130 dollar-miljardairs. In 2004there were only 3 multimillionaires. The number 1 of 2009 is Wang Chuanfu, executive ofBYD (electric cars). He has 5.1 billion dollar. Last year he was number 103 on the list, with

only 880 million dollar.The investment of the American investor Warren Buffet has been good for his wallet.

The richest man of 2008, Huang Guangyu, founder and then boss of white goods shopsGome, was with 6.3 billion dollar richer, but he is currently in prison and has disappearedfrom the list of richest people in China.

The top ten richest are together worth 45.3 billion dollar, last year that was 40.1billion. Only three of the top ten of last year are back in the list. In 2004 the top ten hadtogether only 7.9 billion.

This year 6 out of 10 are in real estate developers. Last year only 4 were in real estate.If we look at the top 100 richest people in China, you could be in 2004 on the list if

you had 100 million dollar, in 2009 you need that to be in the top thousand. Last year youneeded at least 1 billion dollar to be in the top 100.

The economical crises had only a slight impact on the total.Peking has at least 143.000 euro millionaires 9 out of 1.000 inhabitants and almost

9.000 who have more than 10 million euro. Shanghais in Chinas second biggest city with116.000 millionaires 6 out of 1.000 inhabitants and almost 7.000 who have more than10 million euro.


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Name Billions ($) Company Industry

1 Wang Chuanfu 5.1 BYD Electric cars, batteries2 Zhang Yin 4.9 Nine Dragons Paper Paper3 Xu Rongmao 4.7 Shimao Real estate4 Yang Huiyan 4.6 Country Garden Real estate5 Huang Wei & Li Ping 4.4 Sinhoo Real estate and nance5 Liu Yongxing 4.4 East Hope Group Chemicals, aluminium5 Lu Zhiqiang 4.4 Fanhai Real estate and nance5 Zhu Jianlin 4.4 Hoson Development Real estate9 Wang Jianlin 4.3 Wanda Group Real estate10 Liu Zhongtian 4.1 Zhongwang Group Aluminium, plastics10 Yan Bin 4.1 Reingwood Group Real estate, mining10 Zhang Jindong 4.1 Suning Retail, real estate13 Lv Xiangyang 4.0 Guangzhou Young Cars, gsm, batteries, mining13 Zong Qinghou 4.0 Wahaha Textile, beverages15 Chen Fashu 3.7 Xinhuadu Ind. Group Retail, gold and pharmaceutical16 Ma Huateng 3.6 Tencent Gsm and online activities17 Chen Lihua 3.4 Fu Wah International Real estate17 He Xiangjian 3.4 Midea Group Household appliances17 Huang Guangyu 3.4 Pengrun Investment Retail, real estate, private equity20 Liang Wengen 3.2 Sany Heavy Industry Industrial machineries20 Liu Yonghao 3.2 New Hope Group Real estate, chemistry, nutrition22 Chen Zhuolin 3.1 Agile Property Real estate22 Liu Canglong & Liu Hailong 3.1 Hongda Group Chemistry, metal and real estate22 Lu Guangqui 3.1 Wanxiang Group Car parts, real estate22 Xiuli Hawken 3.1 Renhe Group Real estate

Source: Huron Report of Rupert Hoogewerf

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Business

China has been Singapores top foreign investment

destination for the last few years. Bilateral trade

has been growing rapidly, making Singapore one

of the largest investors in China since the rst

half of 2000. The entry of China into the WTO

and the start of the China-Asean tariff reduction

plan have further opened up the Chinese market.

This provides more opportunities for Singaporeto improve its bilateral trade relationship with

China.

Bilateral trade between Singapore and China has

been ourishing since the two countries established

diplomatic relations in 1990. The relationship

is further strengthened by frequent high-level

visit. Tellingly, when Chinese president Hu Jintao

arrived in Singapore for a state visit recently in

November 2009, he spoke of the two nations close

friendship and cultural ties. In response the

Singapores foreign ministry reected on the close

friendship and strong ties between Singapore and

China and the upcoming event as to celebrate 20years of diplomatic relations next year.

fdat th b tAs mentioned earlier, it was not until 1990 that

Singapore opened relations with the Peoples

Republic of China, which it had accused of

supporting Communist movements in neighboring

Malaysia, Indonesia and elsewhere in Southeast

Asia. Many ethnic Chinese Singaporeans descend

from people who ed civil war and Communist

rule in the 20th century. Today the circumstances

have changed. Singapore and its neighbor countries

are eager to build trade ties with China, but areclear that there is no intention of becoming vassal

states.

Singapore is known for its aptitude and its

continuous drive to strive for further enhancements

to enable growth. As an example, the government

promotes Mandarin teaching to help business

ties. From a Singapore perspective, the ties are

not just commercial, but strategic.

In addition, investments from China and

Singapore in their respective territories are

actively promoted through the Bilateral Council for

the Promotion of Investments (established since

18 May 2005). The objectives are threefold:1. to outline Chinas investment environment

and policies on foreign investment;

2. to help Singaporean enterprises in China avoid

difculties and create a favorable business

environment for them;

3. to faci l i tate Chinese investment in

Singapore.

As a testimony of the strong belief of continuous

building of the strong foundations of trade

between the two countries, the China Council

(China-Singapore Council for the Promotion of

Investment) is chaired by the Chinese Minister

of Commerce and made up of relative bodiesdirectly under the State Council of China and

the Embassy of the Peoples Republic of China

in the Republic of Singapore (the Economic and

Bd b t

President Hu speaking at the Singapore ChineseChamber of Commerce & Industry

By Gene Kwee


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Business

Commercial Counsellors Ofce). The Singapore

Council (Singapore-China Council for the Promotionof Investment) is chaired by the Singaporean

Minister of Trade and Industry and made up of

relative bodies of Singaporean Government and

the Singapore Embassy in Beijing (Commercial

Section).

A Secretariat has been established in both

councils for daily contact. A senior ofcial from the

Department of Foreign Investment Administration

of the Chinese Ministry of Commerce will be

appointed the Secretary-General of the China

Council. A senior ofcial from the International

Business Development Directorate of the

Singaporean Ministry of Trade and Industry willbe appointed the Secretary-General of the

Singapore Council.

With such an impressive backing it is not

surprising that the mission of promoting, soliciting

of bilateral investments and solving common

investment problems and investors concerns

through bilateral coordination and cooperation has

proven to be very successful. To ensure a sustained

level of success, a joint conference is typically

held twice a year to allow for an exchange of views

on bilateral investment. The conference is held in

China and Singapore alternately. In principle, it

will be chaired by chairmen from both councils.When the chairmen cannot attend the conference,

it can be chaired by vice ministers supervising

the investment affairs with the authority of the

chairmen.

Another factor that is likely to lead to further

growth in trade between the two countries is

the fact that Singapore and China have signed

a comprehensive free trade agreement (FTA),

which has been implemented on 1 January 2009.

Highlights of the FTA:

85% of Singapores exports to China will be

duty-free, with another 10% slated to be

duty-free by 2010. All of Chinas exports to Singapore will be

duty-free.

Singapore and China businesses will get

preferential access to the private healthcare

and business services sectors.

China businesses will get preferential access

to Singapores private education industry.

Greater flexibility for businessmen and

professionals to travel and work in both

countries.

rt Pa

Singapores trade with China has seen a tremendousgrowth over the last decades to over $90 billion

last year compared to the $7.6 billion in 1994.

sap

cha

It is then no surprise that China is one of

Singapores largest trading partners. Recent

developments such as the flagship projects

in bilateral cooperation, including the SuzhouIndustrial Park and Tianjin Eco-City projects,

have seen remarkable achievements and the

implementation of the free trade arrangement

between China and Singapore has helped raise

the level of the economic cooperation between

the two countries.

The business circles of Singapore have also

voiced their belief that a stable and prosperous

China would bring benefits to the region and

the world as a whole. They also expressed the

willingness to continue to play an active role in

advancing mutually benecial cooperation and

bilateral ties between Singapore and China.Up until now, Singapore has made investments

worth more than $60 billion in China.

Looking at the intentions and the strong

support from the government it can only be

expected that the foundations are not likely to

be eroded. During the last visit of President Hu

a remark was made that China and Singapore

should strive to create new opportunities for

bilateral cooperation in an effort to realize

economic recovery at an early date and calling

for the two nations to work together to create

an even brighter future. This all exudes a strong

belief of the mutual benefit that the successof the China-Singapore trade and economic

cooperation will bring to both countries.


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it mday at. i jt ad cha

ad i jyd h th y a.Bak at y dk t dak ad y a ha

a pin dropping on the oor where 80 people

k. it a ad i dd t hk t

the other oors and come to the conclusion that

th ch tata pay p, bt

y a tt h a day.

Dth ch dt th a As a management consultant for Accenture in

Singapore I help clients, in general the top 500

multinationals, to dene their strategy and take

responsibility for organizational change and

business transformation. For the past 9 months I wasleading a strategic project for a prominent Chinese

client, one of the most admired companies in the

world. Their mission is ambitious: become a leading

player in the European market. Professionally I had

never faced such a great challenge before, leading

such a change program in unknown territory. And

to embark on this endeavor I rst had to become a

Chinese resident and learn basic Mandarin (which

is a whole other story!). The headquarter where I

worked is impressive: spacious, modern, surrounded

by small lakes, lanes and bridges. Nothing is left to

the impression that this company is not going to

conquer the world. Something different comparedto Industry Park Vianen. Inside their gates over

40.000 people live and work.

my ch adt: ht tad ba apt sp cha?By Koert Breebaart

shh - th Pa ab HKThe client is based in Shenzhen an American

voice told me over the phone. I had never heard of

that city in my life. Now I do. Here are some data

points for you: Shenzhen is 1 hour north of Hong

Kong and connected through the MRT system. The

city has 14 million inhabitants, with an average

age of 30! Only 20 years back it was a small shingvillage, until Deng Xiaoping declared Shenzhen to

be a Special Economical Zone. Now it is home to

the largest companies in the world, coming with

modern skyscrapers, luxurious hotels, complex

infrastructure and a lot of HDBs, following

Singapore example. The one thing you directly

notice when driving through Shenzhen is the chaos

on the roads. Any ride turns into a rollercoaster. A

Singaporean would get bended toes and lowered

pants by the jaywalkers, the ghost riders, the

tricycles on the highway and the unattended

trafc lights. Several times Ive said farewell to

the world in the back of a taxi or bus.The main difference with cities like Hong

Kong and Shanghai is that Shenzhen is considered

mainland China and everything is in Chinese:

conversations, menus, signs, telephone operators,

you name it The city is not really catered for

westerners, but the good thing is, once you get

through it, Shenzhen offers the best restaurants

in China, is extremely affordable and has a

amboyant nightlife.

la th jbCommuting up and down Shenzhen, Monday to

Friday from Singapore was a dragon travel. Ittook me 6-8 hours door-to-door, depending on

luck and availability of transportation means,

involving, taxi, plane, boat and limousine service.

During the week I stayed in the impeccable

Pavilion Hotel.

In an over-simplistic way, you could say my

work consists of preparing and hosting meetings.

Two aspects stood out:

- First, the dynamics of the meetings: organize

a meeting in China with 2 or 3 people and you

will nd yourself presenting to an audience of

30 people. The unwritten rule is that anyone

invited can invite others at their judgment orinterest. So when the Accenture consultants

come and speak everybody wants to listen

Business


15/40


13

Business

Sometimes there was French fried, but more

often not. And then after lunch, the curtains close,the stretchers come out of under the desk, the

lights go off, the phones go on mute and everybody

goes to sleep. I can assure you after nine hectic

months: A wonderful oasis in the midst of turbulent

meetings!

Although the life experience gained working

in China was fantastic, I am glad to be back in

Singapore.

in. After the meeting people just disappear,

normally without giving any feedback.- And second, the people that attend the

meeting: Chinese people. I found some good

insight in differences between cultures on

www.globesmart.com. After a close look at

this picture I understood there was some work

to be done. Grey is the Chinese, white the

Dutch. This denitely helped me being more

effective in my management style!

Also a matter of learning through practice:

Festive celebrations. A round table, plenty of

food and Chinese red wine are the ingredients of

Chinese New Year celebrations. You go around, yell

Gan Bei to anyone, you laugh loudly, you slamthe red wine away and then you yell something like

Happy Ox. After some practice a lot of fun.

Lunchtime was my favorite. We were given

special pink Tunch vouchers that we could

exchange for food in the canteen. The food was

rather good, very Chinese style. The Chinese word

for food is fan, which also translates to rice. So

there is rice mornings, middays and evenings.


16/40


1

Business

ud ch aati th th k a ch aat

ty?

Although the communist Mao Zedong Confucianism

rejected as reactionary and feudal, the inuence

of the Chinese philosophers thoughts and actions

of the population never completely disappeared.

Indeed, even during the Cultural Revolution, when

everything that smacked of the old China had to

be destroyed, Confucius did affect the thinking

and acting of the population. You cant just erase25 centuries.

fdatThe teachings of Confucius (551-479 BC) is known

as the cultural foundation of China. He is described

as Chinas rst master and has followers in East

Asia. Confucius teachings originally transmitted

only orally, but after his death by his students in

writing. More than 1000 years long, to the early

twentieth century, Chinese students were required

to the wisdom and teachings of Confucius and

learned by heart at any time could cancel out

loud. The teachings in the Chinese psyche as such

deep scars left as the Judeo-Christian moralityin the western world.

Confucianism is therefore, deliberately or

not, major impact on the management of Chinese

enterprises. The Journal of Management Studies

in an article in 2007 concluded that the inuence

of Confucius on Chinese Management wasnt

estimated for a long time on its true value.

The faster Chinas economy develops, the

more the Chinese seem to refer to their history

and important gures of the past. The Chinese

economic miracle is leading to a renaissance ofthe ancient Chinese values. At several schools

Confucius is educated again.

zj ctAnyone who has done business in China will

recognize: the way to a decision or agreement

is long and full of bumps (see box 10 tips).

But if a decision has been taken, it also carried

with dizzying speed, without reserve or wailing

afterwards.

It is not only a consequence of the top-down,

authoritarian management culture, but it is also

due to the Confucian work ethic. One can accuse

the Chinese of many, but they do not lay down azesjes culture. In addition, both employee and

By Frank Kuijsters


17/40


15

Business

ua b pp cha

1. B fd - Guanxi, or personal relationships are crucial.

Never underestimate the importance of building a personal

relationship with your business partners.

2. rpt - Chinese build a relationship with people like

themselves in an honorable way to show respect to others.

3. sty - All relationships are in Chinese eyes by denition

wrong, why it is important to show respect for age, seniority

and background.

. Athtaa - Managers are usually directively, a reection of

the Confucian concept of hierarchical organization of society.

5. ma - In exchange for loyalty, is the manager expected to

show understanding and interest in all aspects of the life of

an employee.

6. Pt - There are often close links between the senior

management of an enterprise and local party ofcials.

7. fa l - It is important for people not to lose their faces

in the presence of their group. Respect seniority always and

never let differences of opinion appear.

8. fa - Do as many others a favor, debt should ever be

repaid.

9. B cad - Business cards must be presented formally

at the start of a meeting. Treat it with respect card, the card

is at that moment the man / woman.

10. Pat - Meetings often last long and seemingly have no clear

objective. Often such meeting not more than one step in building

a relationship. The purpose of the meeting is more than the

relationship to move forward than to a specic business goal.

manager much more than we are accustomed

to do their best for the groups interest.These success factors result directly from the

thought of Confucius. More and more business

schools have therefore placed Confucianism in

their curriculum. Meanwhile the Chinese prove

that their ancient philosophical mentor can be

perfectly combined with western management

techniques: Confucius has become an export

product. Worldwide, there are already 210

Confucius Institutes in 64 countries including

one in The Hague.

Th dt th at

Of course the practice is often more stubbornthan the philosophy. The abuses in some Chinese

factories are similar to those described by Charles

Dickens than to the lofty musings of Confucius.

Mao would be turning over in his tomb at the

Square of Heavenly Peace.

Yet the influence of Confucius is difficult

to overestimate. Central to his philosophical

principles are relationships, universal virtues

and work ethic. Although they do not relate to

organizations or businesses, they play in adapted

form an important role. The loyalty between king

and citizen is translated into such an employer

has the responsibility for his employee, who in

exchange faithful and is looking for his patron.The Confucian manager attaches a great

importance on building relationships. He claims

the group interests over individual performance.

In some ways the Confucian ethical principles

do surprisingly modern feel. The ideas of the

American management guru Peter Drucker are

similar to that of Confucius. And values like

hard work, dedication and loyalty make us think

again about Protestantism.

Bizz AgenDA

AESER 2009 (Asia-Pacic Embedded Systemsedat ad rah c)

14-15 December 2009Nanyang Technological University, Singapore

http://eos.ntu.edu.sg/APESER2009/

wd ga Tad st

20 January 2010The Ritz-Carlton Millenia Singapore - Grand Ballroom, Level 1http://www.cmtevents.com/aboutevent.aspx?ev=100101&

sap itata Abtatf 2010

21-22 January 2010Rafes City Convention Centre, Singapore

http://www.siaf.sg/

wd Phaa otk Aa 2010

25 January 2010Marina Mandarin Hotel, Singaporehttp://www.terrapinn.com/2010/pharmaoutlook/venue.stm


18/40

1. why th tat dd?China is the most populous country in the world.

Its economy is also one of the fastest growing,

with annual average GDP growth rates settling

in at 9% to 10% over recent decades. The steady

growth has attracted global attention for both

outstanding economic gures and the potential

environmental impacts resulting from the massive

increase in energy consumption. Due to limited

resources and environmental capacity at home

and abroad, China is impelled to explore a pathof sustainable development, which will contribute

to development and security at national and

international levels. Cities will play an important

role in this challenge, because most energy is

consumed in cities. In order to protect people

and nature from dangerous environmental threats,

sustainable development of Chinas growing cities

must become a top priority.

Td tad apd baat. The

number of cities in China has increased from 193 in

1978 to 661 in 2005, among which 54 are so-called

mega-cities and 84 are large cities, compared to,

respectively, 13 and 27 in 1978. By the end of 2006,

the urbanization rate in China was about 43.6%of the population. This rate is rapidly increasing,

with 75% of the population estimated to live in

cities by 2050.

Hay dtaat th . Energy

consumption in heavy industries - such as iron

and steel, chemicals and energy - accounts for

70% of the total in the industrial sector, and is

still growing at a fast pace. Industries themselves

represent 70% of Chinas total energy consumption.

Heavy industry provides the goods and products

which are increasingly consumed in cities.

ey pt t a

apdy. The energy consumption increase in

Chinas cities does not only result from rapid

industrialization, but also from the buildings and

transportation sectors. There are 17 billion m2 of

buildings in Chinas urban areas, with 1 billion m2

added each year. Chinas vehicle population is also

growing quickly, having surpassed 150 million by

June 2007. In addition, urban energy consumption

per capita is estimated to be three times higher

than that of rural areas. The annual migration ofapproximately 10 million people from rural areas

to urban centers projects a scenario of continued

and rapid increase in urban energy consumption.

ey pt a

ta pb t. Vehicle

emissions remain the biggest source of air

pollution in cities. The pollution is the result of

factors such as inappropriate urban planning,

insufficient public transportation investment,

growing vehicle numbers and low gas emission

control standards.

The Chinese government attaches great

importance to climate change and is creating a

series of policies and measures to address theissue. One of the governments initiatives to

reduce the countrys contribution to climate

change was to establish a national target to

decrease energy intensity by 20% by 2010. In a

move to help China achieve this target, and to

facilitate national and international low carbon

development, WWF - with the support of local and

global partners - will implement a Low Carbon City

Initiative (LCCI) in China in the next 5 years.

2. what th tat abt?LCCI will explore low carbon development

models in different cities, working to improveenergy efciency in industry, construction and

transportation sectors. It will also address the

development of renewable energy and ensure that

other cities in China can learn from successful

experiences and replicate them.

LCCI will focus on:

Supporting the research and the implementation

of policies which contribute to low carbon

development,

Supporting capacity building on energy

efciency and renewable energy, and support

demonstration projects,

Promoting energy efcient technology transferand cooperation between China and developed

countries,

l cab cty itat


16

green PAge

Building

City Planning

Industry/UtilitiesTransport

Public

ch py k:Central/Provincial Government Support

itata adata B&i:Multi-national companiesinvestment

itata adata B&i:Support from thenancial sector

itata gAA:Fund support from other donors and countries

itata adata pb k:Export support of EE andRE industry

Pb pat pathpnth-sth:North-South EE and RETechnology transfer andcooperation

itata B&i + aada:Best practice and expertise from developed countries

ee: Energy Efciency re: Renewable Energy

B&i: Business and industry gAA: Government Aid Agency

cpta fak ad Ky D th l cab cty itat


19/40

Exploring new finance and investment

instruments and sustainable trade opportunitiesfor energy efciency and renewable energy

industry,

Improving public awareness on climate change

in order to enable and encourage Chinese

citizens to save energy and the environment.

3. wh d th tat tat?In the rst stage, cooperative pilot projects will be

implemented in the cities of Shanghai and Baoding.

At a later stage more cities will be selected and

join the Initiative.

shaha: n -bd dtat including

policy research on eco-building promotion and

demonstration

Energy efciency improvement of existing

a a bd including

demonstration projects to promote energy

consumption management systems, energy

auditing and retrofitting, energy efficient

operation, capacity building and international

cooperation

20 ay t 20% y a apa, to

raise public awareness of energy efciency,

and to extensively engage the people of China

in energy saving

Bad:

ntk taab y kd

aat ad thy pat

including information database and service

platform on renewable energy, patent pre-

warning mechanism on renewable energy

technology, technology exchange and

training

ea th tt ad pt

taab y pdt including policy

research on ways to promote the renewable

energy industry, training on international trademeasures of renewable energy products, and

exchange of investment and nancing in the

renewable energy industry

capaty bd ty pa ad

dta pak dpt including

design and implementation of a Solar Energy

Demonstration City action plan and Wind

Energy Industrial Park development plan,

and development of certication service and

public technology platforms

LCCI will also conduct activities in Beijing

focusing on low carbon development policy,

promoting the best practices derived from thepilot projects, and making the 20 ways to 20%

energy saving campaign a success.

Exploring the low carbon city development

path is promising yet challenging, and more

participation and support from governments,

research institutes, companies and international

organizations is required. WWF will develop and

deliver all LCCI activities together with partners

on this open platform, joining global actions to

combat climate change.

Pat Energy Research Institute of the National

Development and Reform Commission

Shanghai Construction and CommunicationCommission

National Renewable Energy Industr ial

Production Base (Baoding)

Chinese Renewable Energy Industries

Association

Chinese Wind Energy Association

Shanghai Research Institute of Building Science

Administration of Baoding National Hi-tech

Industry Development Zone

HSBC Climate Partnership

WWF - UK, Netherlands, Sweden, Norway,

Denmark

Source: www.wwfchina.org/english/sub_loca.php?loca=1&sub=96


17

green PAge

Baodings Power Valley Jinjiang International Hotel is partially powered byself-generated solar electricity, which comes from nearly 4500sqm of solar PVpanels that have been integrated into the hotels design.


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21/40


19

TrAvel

but on the whole they are never to crowded.

When youve made it onto the island everything

is within walking distance. The traditional shing

bays are rustic and charming. Bring food for a BBQ

in the pits provided, then meander the pathways

to colonial mansions and past the dramatic sea-

crashing waves on the rocks.

How to get there: From Xiamen Airport, take

Bus 27 to the ferry.H K has many beaches. Th shk o

bah (a bah) has great facilities,

sensational scenery and a laid-back party

atmosphere. Her you see an mix of surf dudes,families, sunbathers, hippies and expat wives

in relaxation mode. The small seaside village of

Shek O is a great place to wander or grab a bite

to eat when youve nished tanning.

How to get there: In Hong Kong; Take the

MTR to Shau Kei Wan station and take exit A2.

From the bus terminal, take Bus 9 heading to

Shek O beach.

You will find peaceful romance at laa

iad. Yung Shue Wan is home to artsy expats and

the most popular beach on the island, H sh

Yh bah, is only a 15-minute walk. The sand is

very ne here, and the water extremely clean,

making it a Grade 1 beach. You can eat at a snackshack, have barbecue under the palms or have

dinner at one of the fresh seafood restaurants at

Sok Kwu. The almost unvisited l s sh Bah

also Grade 1 has a few amenities but is a peaceful,

heart-skipping paradise.

How to get there: Once you arrive in Hong

Kong, catch a ferry from Central to Sok Kwu Wan

(Lamma Island), then just follow the signs.

The best beach destination of China is the

island province Haa and especially the area

around Sanya City.

The sh Bay (pty bah) offers zero

distractions but plenty of time to get lost in yourown thoughts. In this tropical idyll youll have all

the soft sand to yourself. There isnt any kind of

entertainment and its a long way to the local

shops. Be sure to bring a few books as well as food

and water. However, if you want all your essentials

taken care of, the new luxury Le Meridien resort

faces the beach and offers comfortable loungers

on the bay.

How to get there: Fly to Sanya and it takes

around an hour drive from Sanya to stay at Le

Meridien Sanya.

If you can find space, Dadha bah

(a bah) is the perfect place to lie

back on your towel, close your eyes and listen

to the delighted screams of children piling onto

banana boats and lobbing balls at each other. On

this family beach there is something to do every

moment of the day. At the promenade you nd

meat stick stalls, Russian vodka bars and dozens

of families wearing matching Hawaiian-style shirts

and shorts. Theres also a mega shopping centre

(Summer Mall) right by the shore selling all sorts

of international brands. But if you actually get a

chance to stop and look, the views are tropically

gorgeous with white sands, palm trees and

shimmering blue waters along the stretch of this

crescent-shaped beach.

How to get there: Fly to Sanya. Shuttle buses

run from Sanya Airport to Dadonghai.You can nd a secret surfers spot at Hha

bah (pty bah). The Chinese only started

surng in Hainan a few years ago. Locals will stand

watching, perplexed, as crazy Westerners carve up

this beautiful all-year-round long boarders wave.

Local surf outt Surng Hainan will pick you up,

take you there, lend and give instructions.

How to get there: Fly to Sanya and stay in

either Dadonghai or Yalong bay, or contact Surng

Hainan at www.surnghainan.com .

The China beach tour will nish at the famous

resort brand the Banyan Tree. This is a villa-only

resort with a private beach far from the sprawl of

Sanya City at the lht Bay (at bah).All the 61 secluded villas have a large natural

private pool an outdoor sunken bathtub. The beach

is private and offers full amenities, plus you get

your own little bed-cabin to hide away from the

midday sun. This resort is a favourite get-away for

the Chinese Heads of State.

How to get there: Several airlines fly

daily to Sanya from both Pudong and Hongqiao

(prices vary). Banyan Tree Sanya arranges Sanya

Airport pick-ups. For more information visit.bayat..

More info on beaches in China: http://shanghai.urbanatomy.com/index.php/life-a-style/

travel/192-chinese-beaches-the-classics


22/40

inTerview

s h d y cha, ad hatkd att d y ha cha?I came to China to set up a factory for a Dutchcompany that develops and produces greetingcards with sound and light technology togetherwith husband Jorg van den Hoven (MSc). Wesuccessfully built up a factory with 1000+employees. After a year or two we both missedwork that was related to our education, product

design development. So we decided to start ourown product design agency. Ask4Me Group worksfor clients who already know that the productionand assembly will be in China. We focus on productdevelopment: prototyping, CAD engineering,casing design, electronic component selection,injection mould design. The strength of AskMeGroup is that it is located in China. For example,during engineering phase Ask4Me Group aims todesign the product in such a way that the Chinesefactory worker knows how to assemble the productwithout much explanation. Plus Ask4Me Group hasthe advantage that it has Dutch-Chinese dialoguesduring the whole product development, instead of

only during production and assembly. This reducesthe problems of translating a product designedwith a western mindset into Chinese production.

H d th ch p y adAk4m?Looking at the size of Chinas population, talkingabout the Chinese in general is quite difcult.Ask4Me Group is located in Guangzhou, which isthe provincial capital of Guangdong province. Wechoose to locate in Guangdong as it has the bestavailability of materials, services and knowledgefor consumer (electronic) products. Guangzhou is

in the middle of Guangdong making it an easy HUBto go between cities in this province, and it has agood link to Hong Kong. The city has a populationestimated around 11 million inhabitants.Guangzhou itself has a unique character; green,nice people, with international and alternativescenes. My experience with Chinese people is thatthey are very interested in what is not Chinese.For example, Ask4Me Group is often present atChinese fairs and exhibitions related to productdesign. I notice that having a western face in thebooth is already enough to attract many curiousmanufacturers. With its participation in ChineseFairs Ask4Me Group tries to contribute to the

denition of design in China: If you say you area designer in China, most Chinese will think itis related to art, shapes, colors, graphics and

Ak4m gahAsk4Me is a product design agency that offers western design services and operates from Guangzhou.

China. From their head ofce in Guangzhou, founder and Director Boukje Koch tells us more about

her organisation and working in China.

Ak4m

gp

pdt

dpt:

pttyp,

cAD

,

a d,

t

pt

t,

jt

d d.

Th tth

Ak4m

gp that

t atd

cha.


20

By Frank Kuijsters


23/40

fashion. We try to emphasize that design is alsorelated to engineering and quality.

what y t akab pap d b cha?It is difcult to feel bored as a product designerin China, one day is never the same. I like most

projects we did so far: because every time it is achallenge to make things work. One nice exampleof last year is the Kidsclock. It is a clock forchildren who just start to have a concept oftime, but who cant read a clock yet. With aying airplane (the second needle) and a slowlymoving bicycle and car, the kids will learn whenit is time to eat, sleep or take piano lessons. Wespend great effort to get for example the rightconstruction of the clocks pointers, to nd a goodsolution for the printed parts, design it in such away that we can have all CE certications and mostof all keep the price competitive. The responsesof distributors have been overwhelming for both

our client and us.

cha t add a tht ptt akt, at thba th ptt ad qtp a. what taty dd y h th akt?Our clients are mostly western clients that producefor Europe, the Americas or Australia. However,

the number of our Chinese clients is growing.These clients want western design, because theycan use that as a marketing strategy. Thereforethe products we design for the Chinese market aremostly sold for high end prices, simply becausethey have the label European Design. This is theopposite compared to our western clients, theycome to us for our competitive prices.

what tp & tk a y ha thth Dth b k cha?I am quite proud on my accomplishments. I likemy work and have condent in my team: one

day we are discussing mould changes with ourmould partner, the other day I am sculpting achair with a Chinese foam artist, the other daywe are nding out what smells you can add toplastic. If I could change one thing, I wish thingswould take less time in China. Chinese prices arecompetitive compared to the West, but Chinesetime consumption is not always as efcient as youhope for. However with all factories disappearingin many countries, China is the place where youcan nd out how stuff works. Not by browsing onthe internet, but by actually seeing how they aremade. This is a type of knowledge that is oftenforgotten, but essential for realizing innovation.

For more information about Ask4Me visit their

website www.ask4me-group.com.


21


24/40

D b cha,a t th mh vh


22

inTerview

wh a y ad hat y pt mt?I am Michiel Verhoeven and currently the VicePresident of Microsoft Services for Asia-Pacic,Greater China, India and Japan (APJ). As amember of the Worldwide Microsoft ServicesLeadership Team, my role is to represent theServices organization in APJ with about 4,700employees and additional vendor staff. We havea Consulting & Premier organization, Sales teams,Customer Service & Support, and Global Deliveryteams. These teams are instrumental in ensuringwe successfully deploy Microsoft software withour partners so that customers enjoy productiveuse of our technologies.

Although I was born and raised in TheNetherlands, I left about 20 years ago. A senseof adventure has always driven me, not in theleast since my mums family has a long Indonesianhistory. I completed my HEAO degree in The Hague,attended a French university and enjoyed my MBA

in the USA. After working in The Netherlands,France and the USA, Asia has been my home foralmost 12 years now.

H t d y ta t cha, ad hatkd att d y ha cha?I travel to China almost every six weeks and myusual engagements in China include meetingcustomers, business and technology partners, aswell as meeting my colleagues there. PersonallyI believe its paramount for leaders to hear thevoice of the customer, partner and employeerst hand and advocate their needs across theworldwide organization. Building organizational

capability is my rst priority in China, whilegrowing the business in a transparent manner.We have a large presence in China across sales,delivery, support and R&D organizations. So Itry to spend a lot of time with the MicrosoftChina leadership team, members of the Servicesorganization, including our customer service andsupport organization, sales and marketing teamsand consulting delivery teams. The activitiesrange from strategic leadership meetings andpeople reviews to conducting operational reviewsand roundtable discussions with customers andemployees. Connecting across the chain is a wellorchestrated effort to gain insight and to motivate

people. My trips usually include celebratorydinners with my teams to thank them for theircontributions.

By Marleen Dieleman

H d th ch p y admt?Microsoft is a global organization and has beenvery active in participating in Chinas commercialgrowth, having set up representative ofces in1992, followed by establishing ourselves formallyin 1995. Then we gradually setup our R&D,Services and Research organization in China andit is important to note that in no other marketplace except the U.S. does Microsoft have sucha comprehensive line of operations. Microsoftproducts are widely adopted and recognized inChina. We have a deep commitment to investin China for both local and global capabilities.Currently, we have over 6,000 employees,more than 13 branch ofces and more than 20technology centres, and we continue to see Chinaas a very strategic market for the companysfuture growth. China has a lot of potential as thetop IT market by users worldwide, with over 200million Internet users and over 500 million mobile

users. In addition, we are proud to develop adiverse talent pool with global capabilities notjust in R&D, but also in our customer service andsupport organization, which boasts 21 nationalitiesworking in our Shanghai ofce.

As far as how I am perceived by my Chinesecolleagues and business partners, I think thebiggest challenge in the beginning was the factthat I probably look very young for someone inthis position, especially since I am foreign and mycolleagues must have thought I needed a lot ofcoaching on local business practices therefore,people who met me for the rst time might nothave tagged much credibility just by looking at

me. What they didnt know was the fact that Ihave lived in Asia for the past 12 years! That hascertainly changed now and I have built a reallystrong relationship with my teams and businesspartners in China.

My approach is to always nd out what thecustomers want, and what pain point I can helpthem address. I want to share my experienceson my business philosophies and managementlearnings to my team and help them sharpen theircustomer focus, and show customers they are beinglistened to and taken care of. That, I feel, is akey step towards gaining credibility and winningtrust from customers and partners. I also make a

commitment to my teams and customers that Iwill visit once every 2-3 months and have themtrust that we are always making sure things are


25/40


23

inTerview

running on the right track for them. That is alsovery comforting for them to know we are ghting

for their rights and benets.I also tell my team that people are not judged

on their language capabilities, so I practicepatience (especially when English was also notmy mother tongue) when some of the teammembers have great ideas to share but might

need some help conveying them in English.

what y t akab pap d b cha?There are many stories to tell, and I have mademistakes, some are better told over beers. But Iremember when I rst started doing business in

China, simple things such as seating arrangementsare done with the utmost care and precision,whereas in Holland, we are a lot more casual andnon-hierachical. I still have to smile when peopleare nervously leading me to a high-level customermeeting which can feel like a royal ceremony,complete with high chairs and tea.

We are also more direct as a culture and tendto think its acceptable to tackle business issueshead on. Being honest and open is what we value.So once somebody has said yes to what we ask for,we think its a done deal and a decision that will beacted upon. But it can be insulting, embarrassingand disrespectful to those surrounding you. We

have to learn and appreciate the dynamics,while walking the corridors before and afterthe meetings, and doing the homework. It takesmore effort to nd out whats been committedto and what not. It meant that as a Dutch personI have had to take risks on people withouthearing the words I wantedto. That can cost dearly,although it creates amazingloyalty and traction. Stickto your values, no matterwhat cultural differences, ismy belief. You can liberallyuse the Dutch style once

people know you care aboutthem. Then you make fun ofyourself and they will acceptour directness. Hearing ayes is a real yes only whenthe validation is there in theactions and results.

Ultimately, in my travelsthrough China and otherparts of Asia Pacic, I havefound being approachable,interested and authenticthe best way of overcomingdifferences. I have been

thoroughly inspired by thediverse people I meet, and thegreat work we do together.

cha t add a tht ptt akt, at thba th ptt ad qtp a. what taty dd y h th akt?Our strategy has been working closely withour customers and business partners to gaintrust and helping them build brand loyalty. Forexample, we recently announced a partnershipwith Agricultural Bank of China (ABC) throughwhich Microsoft has been supplying software,consulting, and technological support to helpscale ABCs business growth and competitiveness.We have gone live with very large mission-criticalprojects in the backend infrastructure supporting

the consumer and corporate banking channels.This is of huge signicance as we are providingsolutions and are not only helping one of Chinaslargest banks with its desktop management, butalso the backend infrastructure. We have beenenjoying similar successes in China in otherbanks, telecommunications companies and largeenterprises because of the solution sales anddelivery approach with our partners. This goesbeyond software legalization and speaks to thelevel of trust in our technology and the ecosystemthat we are building out.

We have been working hard on educatingChinese institutions on the value of Intellectual

Property (IP) and embracing the need toshift towards a knowledge economy. Throughgovernment citizenship programs, R&D, educationalprograms, channel programs, enterprise solutionsales and delivery, while working closely withSystem Integrators (SI) and Independent Software


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Vendors (ISVs) to help them go to market. We also

work very closely with our local OEM partners likeLenovo, to strengthen a stronger partnershipsthat will extend collaboration to benet our endcustomers with integrated hardware and softwaresupport. Enabling partner ecosystem and growingwith the local industry is our long-term strategyand view, and we continue to see encouragingresults on all fronts.

lk bak y att cha,hat d y d dty? what tp& tk a y ha th th Dthb k cha?I would certainly recommend people to live inChina, which is something I have not had thechance to do. If you truly want to understand,motivate and inuence, its best that you livethere, build genuine connections and immerseyourself. Flying in and out of the country givesyou impressions and insights but does not have thesame impact. Learn the language if you can investthe time and have the discipline, make friendsbeyond work, and learn about communicationstyles and relationship networks.

Here are a few lessons learned and tips:1. Be the voice of customers Lead by example

and show the teams how your companystrategy ows through in execution.2. Invest in the best talent - People make the

most difference in the quality of your serviceand product innovation. Take a long-termview to hire, develop, rotate and retain talentfor China. Create a culture with passion andenergy that is compelling and rewarding.Employees and customers will reward you.

3. Never compromise on your values - Rootingout systemic issues in business practices willtake a generation. The causes arise fromeconomic differences, status quo and fear-based decisions. Address them and relentlessly

advocate transparent business practices.

Keep your focus on helping customers solveproblems. Use data and business intelligenceto effectively run your operations. Putyourself in the shoes of your staff, partners orcustomers and see their point of view whenfaced with challenging dilemmas. I believe amanagement team should trust their employeesto do the right thing, but be ready to enforceaccountability when its necessary.

4. Be determined and accountable - When youare pursuing long term goals, it does come withshort term deliverables and P&L constraints.Influence your headquarters, share globalstrategies and advocate local needs. Patiencehas never been my biggest strength andIm constantly reminded. Holding peopleaccountable on quarterly and annual resultsis relatively easy, but differentiation comesfrom inuencing the drivers that allow youto execute on 3-5 year goals.As member of the Services organization,

one of fundamental things we have to do isshift perception and educate the market on thevalue of intangible goods, as it is very differentbetween the East and West. This means a constantcommitment to excellence from pre-sales all the

way to support, and life cycle management tohelp our customers understand their needs andtheir rights.

I see this as a long term cultivation of mutualunderstanding and see mutual business benets inChina. I encourage you to advocate best practices,spend time and make effort to build informalrelationships. Take an interest in your businessassociates and their families and youll nd thatthere are a lot of shared family values between theChinese and the Dutch cultures. If you establisha connection and build trust, your businessexperience in China should be a successful andpleasant one for many years to come.


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Quotations from Chairman Mao Zedong, better known in the West as The Little Red

Book, was published by the Government of the Peoples Republic of China from April

1964 until approximately 1976. As its title implies, it is a collection of quotations excerpted

from Mao Zedongs past speeches and publications. The books alternative title The Little Red

Book was coined by the West for its pocket-sized edition, which was specically printed and

sold to facilitate easy carrying. The closest equivalent in Chinese is, literally The Red Treasured

Book, which was a term popular during the Cultural Revolution.

The most printed book in the twentieth century, Quotations had an estimated 5 to 6.5 billion

copies printed during Maos attempt to transform Chinese society. The books phenomenalpopularity may be due to the fact that it was essentially an unofcial requirement for every

Chinese citizen to own, to read, and to carry it at all times during the later half of Maos rule,

especially during the Cultural Revolution.

During the Cultural Revolution, studying the book was not only required in schools but was

also a standard practice in the workplace as well. All units, in the industrial, commercial, agricultural,

civil service, and military sectors, organized group sessions for the entire workforce to study the book

during working hours. Quotes from Mao were either bold-faced or highlighted in red, and almost all

writing, including scientic essays, had to quote Mao.

To defend against the theory that it would be counter-productive, it was argued that understanding

Maos quotes could denitely bring about enlightenment to the work unit, resulting in production

improvement to offset the time lost.

During the 1960s, the book was the single most visible icon in mainland China, even more visible

than the image of the Chairman himself. In posters and pictures created by CPCs propaganda artists,nearly every painted character, except Mao himself, either smiling or looking determined, was always

seen with a copy of the book in his or her hand.

After the end of the Cultural Revolution in 1976 and the rise of Deng Xiaoping in 1978, the importance

of the book waned considerably, and the glorication of Maos quotations was considered to be left

deviationism and a cult of personality. The original books now became a collectors item and some

editions are highly sought after. The book has been translated in many languages, even in Dutch and

was rst published in 1967 by A.W.Bruna & Zonen.

Maos quotations are categorized into 33 chapters in the book. Its topics mainly deal with Maos

ideology, known in the West as Maoism and ofcially as Mao Zedong Thought.

Th ltt rd BkBy Richard Soemita


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Kowtow: To kneel and touch the forehead to the

ground in expression of deep respect, worship,

or submission, as formerly done in China.

My good father taught me that there arethree subjects to avoid during conversations atthe dinner table: Money, Politics and Women.How right he was. When I was having dinner witha Greek colleague in Athens many moons ago, Icasually mentioned the case of Macedonia. Thisresulted in a 3-hour passionate lecture fromhis side on how unfair and wrong the claim ofindependence of the Macedonians was, becausein 1th century... Similarly I was ignorant enoughto mention something neutrally supportive ofthe Palestinians to an Israeli friend of mine. Abig mistake, it took months before we were onspeaking terms again. Did I mention my friendin Northern Ireland yet? Maybe I am een beetjedom?

Two years ago, I was on a business trip to ourofce in Shanghai, and I was silly enough to askabout the situation in Tibet. Me and my big Dutch

opinionated mouth. Wasnt it that China invadedpoor Tibet, and the Dalai Lama is the good guy whonow tries to liberate the poor monks, right? Well,not quite, according to my Chinese colleagues.Soon I understood that Chinese students aretaught that Tibet has been an inalienable partof Chinese territory, from the time of the Yuan

Dynasty conquest onward. Now how did todaysdispute start? The essence of the conicting claimsof three parties of the sovereignty over Tibet canonly be understood in the context of history, andmore importantly, the interpretation of history.

First a few facts. Tibet was rst unied underKing Songtsn Gampo in the 7th century. Over thelast centuries, a line of spiritual leaders calledDalai Lamas ruled as head of government, ruling ina close relationship with the Chinese Dynasties.

In 1904, the British invaded the country,after Tibet had been closed to all foreigners forhalf a century. The British then agreed with theChinese that the Qing would have sovereigntyin return for a British fee and free trade withTibet. Following this, the Qing government senta military expedition of its own to establish directChinese rule and deposed the Dalai Lama in animperial edict.

In 1913, (after the fall of the ChineseQing dynasty) the 13th Dalai Lama proclaimedindependence and expelled all Chinese

representatives, an action never accepted byChina, or by any other state. Tibet however de

facto lived autonomous for the next 36 years,whilst the republic of China (ROC) endured itsWarlord era, civil war, and World War II.

The ROC was ruling mainland China between1912-1949, before it took refuge, and today de

facto is based and governing Taiwan. It has keptits claim to legitimate sovereignty over China,including Tibet. Note that even during its factualgovernment of China, it did never have realcontrol over the region.

The new Peoples Republic of China PRC,which governs China since 1949, contends that

according to the Succession of States Theoryin international law, all subsequent Chinesegovernments (Ming Dynasty, Qing Dynasty, ROCand PRC) have succeeded the Yuan Dynastyin exercising de jure sovereignty and de factopower over Tibet.

The Tibet government in exile, underleadership of the 14th Dalai Lama, has a differentreading of history. In their view, during the earlierdynasties, Tibet and China cooperated on thebasis of benefactor and priest relationship,perhaps comparable to the Vatican and Italy.The relationship did not imply subordinationof one to the other. The 13th Dalai Lama, for

example, knelt, but did not kowtow, before theEmpress Dowager and the young Emperor whilehe delivered his petition in Beijing. Chinese

Tbt, dd th 13

th

Daa laa kt?By Willem Anne Hoekstra

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sources emphasize the submission of kneelinghere, whilst Tibetan sources emphasize the lack

of the kowtow.In 1950, the PRC invaded Tibet, in an attempt

to liberate it from the ruling Tibetan government,which held the despotic rule of aristocracy andmonasteries in power, rejecting any form ofmodernization, at the expense of 95% of Tibetansof the population who lived like serfs in a feudalserfdom or hell on earth. Except from a very thintop layer in society, Tibetans had no mentionableaccess to education, care, democracy, media, andlived in primitive conditions. Mao Zedong statedthat the decision to unite Tibet into the PRC wasdone to achieve ethnic equality and to freeTibetans from imperialist oppression.

Tibetan sources however describe thepeople in the same period as happy, content, anddevoted to Buddhism. It is a religious devotismwhich clearly nds a different interpretation inMarxist / communist ideology. Is religion a freedomor a means of oppression?

In any case, one year after the invasion, thePRC and Tibetan representatives both signed andratied the Seventeen Point Agreement for thePeaceful Liberation of Tibet, in which Tibet is anautonomous region within the Chinese sovereignty,and recognition of the Dalai Lama and of thePanchen Lama. However, Tibetan leaders later

contended this treaty, as it was signed underpressure (the PRC had 20.000 troupes waiting atthe border)

The Tibet territory has always been underdebate. Two provinces (Xikang and Qinghai) thatwere excluded from the treaty, revolted whenthey faced the Chinese land redistribution policies.This 1957 upraise was forcefully suppressed bythe Chinese Peoples Liberation Army, allegedlynot shy of brutal torture. The number of freedomghters grew rapidly, receiving American support,leading to the summit in the Lhasa uprising of1959. A gathering of 30.000 people at the DalaiLamas palace was dramatically shelled with PLA

artillery. Some reports estimate the casualties inall the conicts as much as 85.000. Clearly, theChinese peaceful liberation of Tibet had goneterribly wrong and was widely condemned. Variouscountries and committees openly disapproved,and the UN General Assembly condemned Chinafor violations of fundamental human rightsof the Tibetan people in 1959, 1961 and 1965resolutions.

Following the defeat, the Dalai Lama ed toIndia, and formed a government-in-exile. The PRCsees the continued western support to the DalaiLama, the government-in-exile and resistancemovements as a threat to Chinese territorial

integrity, sovereignty and stability.Jetsun Jamphel Ngawang Lobsang Yeshe Tenzin

Gyatso, better known as the 14th Dalai Lama, was

born in 1935 and proclaimed the tulku or rebirth

of the 13th Dalai Lama at the age of two.

Since the invasion, reports on the situation are

quite contradictory. Chinese sources claim rapidprogress for prosperous, free, and happy Tibetansparticipating in democratic reforms. Tibetans,on the other hand, call the PRC rule illegitimate,motivated solely by the natural resources andstrategic value of Tibet. They say the Chinesefeel superior to the Tibetans, using assimilationistpolicies and even genocide, aimed at destroyingTibets distinct ethnic makeup, culture, andidentity, thereby cementing it as an indivisiblepart of China. So far there has been no open andfree election under Chinese rule yet.

The current policy of the Dalai Lama, is thathe does not seek full independence for Tibet,

but would accept Tibet as a genuine autonomousregion within the Peoples Republic of China, underthe democratic condition of freedom of speechand expression and genuine self-rule.

The Human Rights Watch World Report 2008reports on Tibet: Widespread and numerousinstances of repression target ordinary citizens,monks, nuns, and even children in an effort toquash alleged separatism. The examples givenare those arrests of protestors, political grafti-writers, and others unsolicited expressions ofopinion.

Today, the Tibet government in exile is not

recognized by any government in the world.

The territory is part of China. However, variousgovernments and int

Documents

Koert working experience in China - page 15/16