Global
China Insights
CHINESE WISDOM
The Soup Allegory of Harmony
CHINA OBSERVATIONSJourney to the East
BUSINESS CHINA
Brandz
TMTop 50 Most
Valuable Chinese Brands 2013
MADE IN CHINAQQ: The Little Penguin
Connecting the World
C H I N A T I M E S
Lecture Professor Cheng Siwei
A Scientist’s Passion for Chinese
Philosophy and Poetry
F E AT U R E I N T E R V I E W
JULY 2013
IN THIS ISSUE
G
EN
GRONIN
CONFU
C
IUS
TUTE
INST
I
C M Y CM MY CY CMY K GCI-journal-COVER.pdf 1 6/18/13 3:36 PM01
I N T H I S I S S U E
China City Culture
Wuhan
Impressions:
High Mountains and
Flowing Water
Global
China
Insights
July 2013
__________________________________________________
China Times
Lecture
Professor Cheng
Siwei: China’s Current
Economic Situation
6
__________________________________________________
Business China
BrandZ™ Top 50
Most
Valuable Chinese
Brands 2013
10
__________________________________________________
Made in China
QQ:
The Little Penguin
Connecting the World
14
____________________________________________________
________________________________________________
Doing Business with China
Intercultural Business
Communication:
Germans Doing Business
in China
23
__________________________________________________
China Vogue
Dedicated
Setter of
Fashion?
26
__________________________________________________
Feature Interview
A Scientist’s Passion for
Chinese Philosophy and
Poetry: Interview with
Professor Jan B.F.N.
Engberts
36
Chinese Wisdom
4
The Soup Allegory of
Harmony
China Observations
17
My Experience as a Preschool
Teacher in China; Soundscapes of
Handan; My Journey to the East
Aesthetic China 31
Chinese Classical Dance; 12 Girls
Band; Listening to the Rain; A
Taste of Chinese Painting and
Calligraphy; Living in Chinese
Style
Media on China 44
A Bite of China: A Taste of China;
Book Introduction ‘China met
andere ogen’
GCI Culture Calendar 47
General Information; Board
Members; Management Team;
Information on Cultural
Activities of GCI
40
01
N THE agE of globalISaTIoN, it is easy to meet a foreign friend, common to study a foreign language, and popular to visit a foreign country. All these experiences will quite probably open a window, showing a marvelous new world and breathe new life into people.
Six years ago, I came to the United States and had a one-year academic stay at Michigan State University. I found it highly significant and enjoyable observing and reflecting on different cultures. Meanwhile, my attention was naturally drawn to explore and reflect on my own country and culture, as I was frequently asked about China, Chinese people and Chinese culture. I felt ashamed that I could not answer as an expert would. I also realized that people outside China have very limited resources to truly understand the world’s most populated country. Many people have heated discussions about the real nature of China. That reminded me of the story of the Blind Men and an Elephant, in which a group of blind men argue about what the elephant looks like based on their own experience of touching different single parts of the elephant. Everybody could possible describe China from their own perspective, based on his or her own experience or information. Yet this can be so controversial! This stimulated my passion to promote the world’s knowledge and understanding of China and Chinese culture.
I feel lucky and thankful that I joined Groningen Confucius Institute (GCI) in 2012. The ‘kingdom of tulips’ reveals the beauty and novelty of Dutch culture, day in, day out, both inside and outside of my work in the Netherlands. I am also advancing my dream to promote mutual understanding between China and the rest of the world by working at GCI. I am particularly appreciative of and impressed by one version of the story of the Blind Men and an Elephant: the blind men stop arguing about their own judgment and start listening and collaborating to ‘see’ the full elephant. It is so precious that individuals are aware of the value of communication and respecting different perspectives. This is also where my initiative originates in developing a journal in which we share different perspectives on China and provide insights into China from as many different aspects as possible. We aim to provide a full view of real China to the readers as well as featuring international and comprehensive perspectives, cutting-edge topics, in-depth reporting, classic interpretations and vivid exposition.
The first step on a journey is always exciting and challenging. We have such a great team at GCI, in which we enjoy cooperation and synergy. It is a cross-cultural team, as we have members from China, the Netherlands and the United Kingdom. Mutual understanding is something of which we are very proud. The efforts of learning both Chinese culture and local culture laid the foundation of our team’s innovation. True to Chinese style, patience is a real important concept to which we adhere: being patient for the long-term dream, being patient when facing a challenge, being patient with others and being patient with oneself. That is one of the core values of Chinese culture and it is also the strength of our team. By sharing we succeed. When you read the very first issue of Global China Insights, I hope you enjoy the beauty of TULIPS, GCI’s spirit: Teamwork, Understanding, learning, Innovation, Patience and Success. Best regards from Groningen,
Liu Jingyi
Editor-in-Chief
Global China Insights
ISSUE 1 July 2013I
letter from the Editor-in-Chief
C o l o f o N
Published by: Groningen Confucius Institute
Advisory Board Members:
Su Zhiwu (苏志武) Hu Zhengrong (胡正荣) Pang Zengyu (逄增玉) Johan Peter Rehwinkel Hendrik Jan Pijlman Sibrandes Poppema
Co-publishers: Liu Jingyi (刘婧一)， Xuefei Knoester-Cao (曹雪飞)
Editor-in-Chief: Liu Jingyi (刘婧一)
Senior Editor: John Goodyear
Editor: Ingrid Fischer
Editorial Assistant: Teng Jiaqi (滕嘉琪)
Editorial Office Manager: Jasna Ros
Designer: Nynke Kuipers Grafisch Ontwerp BNO (Kuenst)
Photographers: Sunny Gardeur, Xinhua News Agency and others
Printer: Zalsman Groningen Media
Editorial Office Address: Oude Boteringestraat 42 9712 GL Groningen The Netherlands
Tel: +31 (0)50 - 36 34 688
Email: [email protected]
Editorial Email: [email protected]
Advertising Email: [email protected]
Subscription Email: [email protected]
Website: www.confuciusgroningen.nl
Available at:
Netherlands:
Groningen Confucius Institute Municipality of Groningen Groningen City Library Atlantis Café Groningen
germany:
City of Oldenburg, China Office Academy of English, The China Room
China:
Confucius Institute Headquarters (Hanban) Communication University of China
ISSN 2214-5761
shang 商, jue 角, zhi 徵, yu 羽) – equivalent
to the five-note scale in music, in a metaphorical sense adhered to this process so as to ensure calmness of mind when handling state affairs. But a problem arises when the ruler only pays heed to courtier Ju’s view of what is right or wrong. This is like making soup without seasonings, when it is so tasteless no one wants it. It is also like repeatedly playing the same note on the qin-se (琴瑟). This has no interest
or enjoyment, so no one would want to listen to it.
As this allegory concludes, delicious soup cannot be made with a single ingredient, and fine music cannot be played on a single note. Soup made from a variety of ingredients has taste because it is an organic mixture of the five flavours, each distinct, but which blend to give an altogether richer and more appetising piquancy. The same is true of music and the integrated melody of the five sounds. It is, therefore, advantageous to bring in more ingredients as they produce better results when functioning under the principle of harmony.
Harmony, then, is an essential concept: firstly, it embodies a complementary relationship within which all the
components are interactive and mutually beneficial. This is not only applicable to making soup and music; it also works when handling state affairs, as in the cooperation between ruler and courtier. In governance, it serves to eliminate the wrong and emphasise that which is right. In China, therefore, harmony is regarded as a crucial facet of political philosophy or leadership. Second, harmony as a strategy connotes a dynamic process of creative transformation during which all the elements involved undergo a transformational synthesis, changing and collaborating but maintaining individual identity. Something entirely new is thus created.
Last but not least, harmony suggests a dialectic state in which opposites are united. Further growth is made possible and all the other positive aspects manifest themselves. Yet, it must be pointed out that Yan Ying’s description of harmony as a principle focuses only on the positive aspects of unity in opposites. His knowledge of dialectic relations revealed by means of harmony is limited and therefore simplistic as he fails to detect the intrinsic conflict between opposites. In other words, his soup is one of harmonious proportions. Similarly, his understanding of unity does not advance beyond the level of reconciliation. His philosophy is obviously aimed at providing a theoretical foundation for his political reformism.
The highest good is like water.
Water benefits all things generously without striving with them.
Staying in the lowly place that men disdain,
It is close to Tao.
It knows to keep near to the ground in choosing the dwelling.
It knows to hide in the hidden deep in cultivating the mind.
It knows to be gentle and kind in dealing with others.
It knows to keep its words in speaking.
It knows to maintain order in governing.
It knows to be efficient in handling business.
It knows to choose the right moment in making a move.
Since it does not strive with others,
It is free from blame.
— Tao Te Ching
(道 德 经)
shàng shàn ruò shuǐ上 善 若 水。
shuǐ shàn lì wàn wù ér bù zhēng水 善 利 万 物 而 不 争，
chŭ zhòng rén zhī suŏ wù处 众 人 之 所 恶
， gù jī yú dào故 几 于 道。
jū shàn dì居 善 地，
xīn shàn yuān心 善 渊，
yŭ shàn rén与 善 仁，
yán shàn xìn言 善 信，
zhèng shàn zhì正 善 治，
shì shàn néng事 善 能
， dòng shàn shí动 善 时。
fū wéi bù zhēng夫 唯 不 争，
gù wú yóu故 无 尤。
dào dé jīng—《 道 德 经》
momentarily dissolves; a feeling of shared warmth prevails. Everyone present feels cheered and secure within the ethos of harmony – he (和).
The concept of harmony is the cornerstone of the Chinese philosophy of life. It is sought and nurtured in all occupations and pursuits, most particularly in human relations. Harmony is advocated in Confucianism as a strategy through which to address social problems and maintain an even social keel: it stabilises human relations and facilitates formation of social groups. Among all analyses of the concept of harmony, Yan Ying’s (晏婴) soup allegory
and its illustrative dialectical exposition is When dining out in China at restaurants
frequented by locals, it becomes
immediately clear that the dishes placed on the table are not specifically for those who have ordered them, but are to be shared. On a fresh dish being served, the host or hostess picks out the choicest morsels for their guests, who reciprocate. A dinner generally begins with a warm-up period when there is an exchange of small talk, courtesies and toasts. Things then liven up. Table conversation becomes animated, with much joking and laughing. The whole scene takes on a more familial ambience until a moment of supreme harmony is reached when discord born of class difference, personal prejudice or the generation gap
The
Soup Allegory of
Harmony
Wang Keping (
王柯平)
Whether a person eats to live or vice versa, everyone needs food. History
bears witness to humankind’s concept of food as a prerequisite for survival,
the fulfilment of which also brings enormous sensual pleasure. Speaking as a
Chinese person, enjoyment of food in all of its colours, styles and tastes, even the
symbolic names given to dishes based on the cooking expertise and the materials
used, is part of my psyche. My experience and observations have given rise to
the theory that Chinese wisdom has practical associations with Chinese dining
etiquette.
most impressive. The commentary of Zuo Qiuming (左丘明) on The Spring and Autumn
Annals (春秋) states:
Seeking harmony is like making soup. Water, fire, vinegar, soy sauce and prunes all go together to stew fish or meat. The chef makes a harmonious melange of these ingredients produce deliciously savoury soup. In the process, he adds a little of this and a soupcon of that to bring its flavour and texture to perfection. The diner enjoys a good soup because it brings him enjoyment, hence peace. The interrelationship between ruler and courtier should correspond to this process. On observing that what the ruler believes to be right is flawed, the courtier points out wrong aspects, while endorsing those that are correct. On observing that what the ruler believes to be wrong nevertheless has a valid aspect, the courtier points out that which is correct and rules out the wrong. In so doing, governance retains its peace and harmony without violating the overall structure that keeps the masses free from competitiveness and contentiousness. Zuo Qiuming goes on to say:
Ancient sage-rulers adjusted the five flavours (sweet, sour, bitter, spicy and salty) when making soup and harmonised the five sounds (gong 宫,
C H I N E S E W I S D O M
The humane man, desiring to establish himself, seeks to establish others; desiring
himself to succeed, helps others to succeed. To judge others by what one knows
of oneself is the method of achieving humanity.
— Analects
zǐ yuē: “fū rén zhě, jǐ yù lì ér lì rén, jǐ yù dá ér dá rén.
子曰：“夫 仁 者，己 欲 立 而 立 人，己 欲 达 而 达 人。
néng jìn qŭ bò, kě wèi rén zhī fāng yě yǐ.”能 近 取 擘，可 谓 仁 之 方 也 已。”
lún yŭto a major increase in inflation rate. In both 2010 and 2011, inflation increased quite a lot. In 2011, China’s inflation rate was at 5.4%. It decreased a little in 2012, but it is still a problem today. In China, local government debt has ballooned, now standing at 10.7 trillion RMB (€1.39 trillion) with around one-third of local governments unable to pay back their debt. Professor Cheng equates and compares this problem of an inability of local government to pay back the money with the sub-prime crisis in the United States.
The financial stimulus package also led to the housing market bubble. In 2009, housing sales in China increased by 42.1%. The stock market, in the first half of 2009, increased abnormally from 1664 Shanghai index points to about 3000. This increase was due to massive investments in the housing market, particularly by state-owned enterprises and local governments that had borrowed money and has since resulted in large unpaid debts.
Change China’s Development Pattern
Now in 2013, China is dealing with the negative effects of the financial crisis. To tackle these problems, Professor Cheng recommends changing China’s development pattern and he recommends several major changes to achieve this.coupled with the decrease in foreign demand led to an accumulation of inventory, something China is still trying to reduce to this very day. Another negative result of the stimulus package, Professor Cheng pointed out, was the low investment return. A lot of money went to state-owned enterprises and local government. Many projects were started, some of which were quite inefficient to begin with, providing low returns and others were long-term projects characterised by very small and very slow returns. As a result, efficiency declined. Before the stimulus package, 1 RMB (€0.13) could generate around 0.5 RMB (€0.07) GDP. In 2009, it only generated 0.21 RMB (€0.03). Investment efficiency really went down.
To make matters worse, a lot of environmental problems emerged. According to Professor Cheng’s research, the environmental cost, including low energy efficiency, environmental pollution and the damage of the ecosystem equals 13.5% of China’s GDP in 2005. This year's prognosis is that China’s GDP will only increase by 10.4%, which means that the environmental debts are something that are left behind for “our children and grandchildren”. The oversupply of money by the government also triggered the danger of inflation. It led
“The economy only
can guarantee our
today; science
and technology
can guarantee
our tomorrow;
but only education
can guarantee
our day after
tomorrow, so
investing in education
is investing
in our future.”
CHINA TIMES
(FDI). Global FDI was at its low point last year at a total of only 1.2 trillion USD (€0.92 trillion), it is expected to improve only slightly this year to 1.3 trillion USD (€1 trillion). One of the major reasons, as Professor Cheng elaborated, was that foreign investors are being pulled back in order to reduce their leverage ratio.
Domestically, China also has its problems. In September 2008, in order to fight the financial crisis, the Chinese government announced a financial stimulus package of 4 trillion RMB (€0.98 trillion) to stimulate the economy, leading to a 9.2% gross rate in 2009. According to Professor Cheng’s research, the gross rate would only have been 2.4% without this investment by the government, which implies that the stimulus package was quite a success. But, as Professor Cheng pointed out, every policy has both its positive and its negative sides. The negative side of the stimulus package emerged between 2010 and 2012.
To begin with, there was huge excess capacity. Twenty-one out of China’s twenty-four industries suffered from excess capacity. Another problem was the existence of over-inventory. These facts
International Crisis and Domestic
Problems
China’s current economy is demonstrating a drop in growth. According to Professor Cheng, the reasons for this economic slow-down are twofold: international and domestic. Internationally, the financial crisis is not yet over. The United States, although slowly improving, is still in economic straits; economic growth in Japan remains sluggish and the European debt crisis still continues to be a big problem. To illustrate the huge effects of the international economic crisis, he pointed out that, last year, the world economy grew 3.2% and this is the first time that economic growth in emerging and developing countries is higher than growth in the developed world.
Professor Cheng expects that the world economy might improve a little this year, and provided a prognosis for economic growth of around 3.5%. He anticipates that international trade will improve a little this year, but not too much because the demand from the developed countries is still not very strong.
Another international problem for the Chinese economy is the drop in foreign direct investment
Lecture
Professor Cheng
Siwei: China’s Current
Economic Situation
On 24 May 2013, the Faculty of Economics & Business of the University of Groningen and
the groningen Confucius Institute co-organised a lecture by the famous Chinese scholar
and statesman Professor Cheng Siwei (
成思危). Known in China as the ‘father of venture
capital’, Professor Cheng delivered a lecture entitled China’s current economic situation in
connection to FDI (foreign direct investment) and venture capital.
All photos by Sunny Gardeur
Ingrid Fischer
extensive growth (increase capacity) to intensive growth (increase productivity). According to Professor Cheng, industrial productivity (value added per person per year) in China is only one-fifth of the productivity in Germany, which is a problem. Wealth creation is important, too: low productivity and not enough wealth creation can cause significant long-term structural difficulties, e.g. Greece’s debt crisis is attributed to high social expenditure and low productivity. In Professor Cheng’s opinion, it is most important to raise productivity by intensive growth. Only if China can create more wealth, people can receive higher salaries. Intensive growth can be achieved by innovation, by improving management, and also by horizontal and vertical integration of industry.
And finally, which might be one of the most important changes, there should be a change from external momentum (subsidies, investments, bank loans) to internal momentum (people’s activity and creativity). Chinese people work hard; they want to make a better life for themselves. On the one hand, education can raise the level of science, technology, morality and culture; and on the other hand it can foster innovative people. Therefore, the Chinese government should pay more attention to education, as Professor Cheng puts it: “The economy only can guarantee our today; science and technology can guarantee our tomorrow; but only education can guarantee our day after tomorrow; so investing in education is investing in our future”. He added that “only education can make China have a bright future!”
Conclusion
Professor Cheng concluded by reiterating the conclusions he made in his speech at the United Nations in April 2013, entitled China Story: although we have accomplished a lot of notable achievements, we still have a long way to go; although we still have a long way to go, we are on the right track; although we are on the right track, there will be many pitfalls on our way to the future. So we need to always keep a very prudent attitude towards the future, because like the meaning of Professor Cheng’s Chinese name: when you are successful (成), you have to think
about threats (思危).
Another necessary action proposed by Professor Cheng is to upgrade foreign trade. Even though he argued that China needs to rely more on domestic demand, that does not mean foreign demand should be ignored. He underscored that China should also pay attention to foreign demand and improve foreign trade. China is now second in foreign trade in the world, only a little bit behind the US. With some improvements, Professor Cheng believes that “maybe this year, we can be number one”. But this cannot be achieved without some improvements. China has to promote the increase of independent foreign trade as foreign demand cannot be controlled. Foreign trade should be focused more on Africa, Latin America and South East Asian nations, thereby becoming less reliant on USA, Japan and the EU, especially as protectionism is gaining ground in these countries. Professor Cheng also pointed out that China needs to choose its foreign investors not only for their money, but for their strategic importance for the Chinese economy: investors that can help improve technology and management, and can help solve environmental problems.
But, promoting venture capital investment and upgrading foreign trading alone is not enough. Professor Cheng argued that Chinese companies also need to implement several internal changes. There has to be a change from
CHINA TIMES
China needs to change its reliance on foreign demand to reliance on domestic demand, and should focus especially on domestic consumption. This is not easy, but according to Professor Cheng it can be done by: synchronising the economic growth rate with people’s income; linking salary with the inflation rate; and raising the wages alongside increases in productivity. Over the last two years, the Chinese government has already managed, particularly in the public sector, to link the minimum wage in China to the inflation rate. The income floor has been raised several times from 800 (€104) to 1600 (€208) and 2000 (€260) to 3500 RMB (€455), with only 9% of people having to pay income tax in China. But, linking salary with productivity is one problem that has not yet been solved, as Professor Cheng pointed out. In recent years, salary increases have been higher than increases in productivity.
In order to boost domestic demand, people need an environment in which they feel secure enough to consume. That is why Professor Cheng advocates improvements to China’s social security system. Changes should be made to the pension system, unemployment, medical care and so on.
Feeling safe is not the only condition that needs to be met to stimulate demand. People also need interesting products to buy. Therefore, China needs to trigger and stimulate innovation to
provide more products to people. According to Professor Cheng, it is time to change the kinds of products people want to consume. During the time of the Cultural Revolution, there were three major assets to have in any household: a bicycle, a sewing machine, a watch. Then it changed to a colour TV, a washing machine, a refrigerator. Now China needs to provide new types of products for households to aim for, to attract people to consume.
However, this kind of innovation cannot be stimulated by the government alone; therefore, Professor Cheng claims that China needs to develop its venture capital business. In 1998, Professor Cheng already submitted a proposal to the Chinese People’s Political Consultative Conference (CPPCC) to promote venture capital business, which was accepted and named the No. 1 proposal of that year. After acceptance, venture capital boomed in China and is just behind the USA as the leading venture capital country today. Venture capital in China stands at 40 billion USD (€30.8bn) and in the United States it stands at 90 billion USD (€69.3bn). But the problem with venture capitalists is the vast majority invest in the later stages as opposed to the early stages of projects–– something that is not ideal for stimulating innovation.
Solutions to the Problems
The question now remains: how can China’s current economic situation be improved? According to Professor Cheng, several courses of action are needed. Venture capital investment needs to be made more successful. Professor Cheng has always pointed out the important role of venture capital, which is why he initiated the China Venture Capital Forum in 1998. In recent years, he has come up with new ideas to make venture capital business more successful: by promoting entry-investment, by getting investors to invest in the early stages, and by supporting the innovators. Additionally, he puts forward that social venture capital should be promoted by encouraging successful venture capitalists to invest in social businesses. Other ideas include training innovators and scientists to become entrepreneurs, and teaching them how to manage and market their innovative ideas.
China needs to choose
its foreign investors
not only for their
money, but for
their strategic
importance for the
Chinese economy:
investors
that can help
improve technology,
management
and environmental
problems.
positions 45 and 49 respectively. Youngor benefited from a shift in taste to smarter attire and Semir continued its focus on youth whilst
investing in retail outlets and the supply chain.
Overcoming Category Challenges – Top Risers and
Category leaders
Coupled with a flagging international economy, certain categories are facing increasingly tough competition domestically. Still, there are several standout brands that have grown in value despite a challenging year, these include:
Septwolves (七匹狼 )
Men’s apparel brand Septwolves has increased its brand value by 44 percent and is second only to Tencent in this year’s list of fastest risers. By focusing on its strategy to become the top-tier apparel brand in the lower-tier cities, and by carefully controlling its expansion, Septwolves has sidestepped competition from foreign brands and the issues of excess inventory that have affected some of the other brands in the apparel category this year.
Hainan Airlines (海南航空)
Chinese airlines faced a difficult environment due to increasing competition from domestic high speed rail and rising fuel prices, expanding group of privately-owned Chinese brands are growing
value by meaningfully differentiating their brands.”
Strong brands outperform the Stock Market
An analysis of the BrandZTM Top 50 Most Valuable Chinese Brands as a ‘stock portfolio’ over the past two years shows that it consistently outperforms the MSCI China Stock Market Index. While the total return on investment (ROI) for all companies in the MSCI China Index was -5.6 percent in September 2012, the BrandZTM Top 50 Brands Portfolio provided a 5.8 percent ROI. This proves that companies with strong brands are able to deliver better value to their shareholders.Newcomers
Four new brands have joined the rankings this year. bank of Communications (交通银行) leapt into the rankings for the first time
in position 15, its success due to both financial and brand factors. Key also to its inclusion is that 20 percent of its earnings came from retail banking, a key eligibility criteria for this ranking. The beer brand Harbin (哈尔滨) joined the ranking in position 39; it linked its
advertising to key sports events and carved a distinctive space in a competitive category. The apparel brands Youngor (雅戈尔)
and Semir (森马) were the other new entrants this year in
BUSINESS CHINA
The third annual BrandZTM Top 50 Most Valuable Chinese Brands study, commissioned by WPP and undertaken by Millward Brown, was released on 4 December 2012 in Shanghai (上海). This year’s
ranking shows that brands are becoming more important to the Chinese consumer. Despite a challenging economic environment, strong brands outperformed their competitors and the broader stock market.
China is not immune to the global economic environment, and this year the total value of the BrandZTM Top 50 Most Valuable Chinese Brands fell to US$320,224 million, down 1.6 percent on 2012. Despite this, brands continued to grow in importance. The BrandZTM Top 50 Brands Portfolio outperformed the MSCI China Index by 11.4 percent as of September 2012.
This year, China Mobile (中国移动) retains the number one spot in
the rankings with a brand value of US$50,589 million. Leading financial institutions also continue to head up the rankings – with
ICbC (中国工商银行) and China Construction bank (中国建设银行) in
positions two and three respectively.
China’s technology brands have seen tremendous growth, as Chinese consumers spend even more time – and money – on internet and mobile platforms. baidu (百度) has moved up two positions
to number four and Tencent (腾讯) has moved from position 10 to
number five.
China’s private sector and entrepreneurs are seeing growing success in building Chinese brands, with the share of Non-State Owned Enterprises (SOEs) in the Top 50 rising to 27 percent from 22 percent in 2011.
David Roth, CEO of The Store, WPP said: “As the growth rate
of the Chinese economy slows, brands become a more important discriminator of consumer choice. As this study shows, strong brands help Chinese companies grow faster. This is set to accelerate as the Chinese economy rebalances. This, combined with the requirement for more Chinese companies to be successful overseas, will drive the necessity for creating strong Chinese brands as a critical factor for success.”
Adrian Gonzalez, Head of Greater China, Millward Brown said: “Building strong brands domestically is a vital template for the increasing number of Chinese brand owners exploring international markets. This year’s BrandZTM Top 50 gives an insight into how an
B U S I N E S S C H I N A
brandZ™ Top 50
Most Valuable
Chinese Brands
2013
brands are becoming more important to Chinese
consumers and businesses
Technology brands see biggest rise
Materials
Available from
www.millwardbrown.com/ChinaTop50 Infographic explaining the results Videos about each of the Top 50 Brands Photographs of the Top 50 Brands Full report about the ranking with
analysis and commentary Mobile and iPad magazine
background and Methodology
Commissioned by WPP and undertaken by Millward Brown, the BrandZTM Top 50
Most Valuable Chinese Brands ranking is the only study to combine measures of brand equity based on interviews with over 35,000 consumers in China. It conducts a rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Worldpanel) to identify the value that a brand plays in driving business revenue and market capitalisation.
Criteria for the Chinese brands included in the Top 50 ranking were:
Brand must be owned by a publicly-traded enterprise
The publicly-traded enterprise must report positive earnings
Brand must originally have been created by a mainland Chinese enterprise When valuing financial institutions, we
only included banks that obtain at least 20 percent of their earnings from retail banking.
about Millward brown
Millward Brown is one of the world’s leading research agencies and is expert in effective advertising, marketing communications, media and brand equity research. Through the use of an integrated suite of validated research solutions – both qualitative and quantitative – Millward Brown helps clients build strong brands and services. Millward Brown has more than 86 offices in 56 countries. Additional practices include Millward Brown’s Global Media Practice (media effectiveness unit), The Neuroscience Practice (using neuroscience to enhance traditional research techniques), Millward Brown Optimor (focused on helping clients
maximise the returns on their brand and marketing investments), Dynamic Logic (the world leader in digital marketing effectiveness) and Firefly Millward Brown (a global qualitative research business). Millward Brown is part of Kantar, WPP’s insight, information and consultancy group.
about WPP
WPP is the world’s largest communications services group with billings of $71.7 billion and revenues of $16.1 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services, including advertising; media investment management consumer insight; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing; and specialist communications. The company employs over 162,000 people (including associates) in 3000 offices across 110 countries. For more information, visit www.wpp.com
BUSINESS CHINA
Lenovo (联想)
Lenovo (No. 23), this year became the world’s largest PC maker by
volume, according to Gartner, with overseas revenues representing 58 percent of total revenues.
Tencent (腾讯)
Tencent launched its WeChat service (a version of Weixin for
non-Chinese markets) which is enjoying growing popularity.
Haier (海尔)
Haier engaged in activities to strengthen awareness of the brand
overseas, including a sponsorship of the Science Museum in London and renewal of basketball sponsorship in the USA. It also invested heavily in e-commerce.
Chinese Consumers’ Shifting Tastes
For Chinese consumers, brands are becoming more important than ever, playing an increasingly significant role in their consumption choices – a trend that is well established in first-tier cities and becoming more deeply entrenched in China’s lower-tier urban populations. While brand competition is intensifying in both top and lower-tier cities, companies face the choice of becoming a smaller brand in top-tier cities or a bigger brand in lower-tier cities. Septwolves (No. 38) and Youngor (No. 45) are brands taking advantage of this strategy.
Chinese consumers are increasingly brand selective when making purchase decisions. This provides exciting opportunities for the companies who are investing in their brands now.
resulting in a 22 percent decline for the entire category. However, Hainan Airlines bucked the trend with a 23 percent increase in brand value, moving up five places in the ranking. Hainan airlines
has built a strong brand and reputation for excellent customer service under its Customer First Strategy; in 2011, it became the first Chinese airline to be awarded five stars by Startrax. By concentrating on the customer, and by remaining heavily focused on the Chinese domestic market, Hainan airlines, which first entered
the rankings last year at No. 46, has become one of this year’s top risers to No. 41.
Gree (格力)
The closure of a white goods subsidy programme at the end of 2011 badly affected the home appliances category, resulting in a 14 percent drop for the sector. However, gree has been able
to maintain its brand value. Sticking to its core markets of air conditioning, creating a clear message and offering its customers a wide choice of models, gree has grown to control over 50 percent
of the market in China and become the number one air-conditioner brand in the world.
Chinese Brands Overseas
Chinese brand builders are increasingly active overseas across many categories and include both State-Owned Enterprises (SOEs) and market-driven organisations. Market-driven organisations are those that are set up in response to market needs and motivated by profit. This is in contrast to the SOEs, which although now are increasingly seeking profit were originally set up by the government.
shopping, microblogging, group chat. According to Millward Brown Optimor’s report, “From March 20, 2013, there are 798.2 million active QQ accounts, with a peak of 176.4 million simultaneous online QQ users, making its audience in China comparable in size to Facebook globally”.
In my opinion, there are several reasons for QQ’s popularity in China. Firstly, QQ’s logo, the little penguin, is eye-catching. Second, in addition to its main function as a piece of communication software, QQ also has additional features, such as emoticons, chatrooms, games, personal avatars, online storage and internet dating services. These features attract a lot of young people because they can choose their personal avatars and skins to show their own unique characteristics. The majority of internet users are young people. So QQ has become popular among Chinese youth first. With the increasing popularity of internet in Chinese daily life, only after a few years QQ has become widespread among the general public. Third, it distinguishes itself by offering a lot more online features than other messaging programmes, for example, QQ Zone, which is a customizable web page where users can upload text, photos and music, or QQ group, which is a platform where people with a certain common interest can talk freely and share their ideas.
Tencent Holdings Limited (known popularly as Tencent) was a small company when it was founded by Ma Huateng (马化腾) in 1998. After
many years of development, it now continuously releases new functions and new products. So far, Tencent has grown into one of China’s largest and most used internet service portals. In 2012, it made the top five of Millward Brown Optimor’s list of the most Valuable Chinese Brands.
With the increase of the number of smartphone users and the development of mobile devices, Tencent is now shifting its priorities to WeChat. In 2011, it launched WeChat, which is also a Sonny, a young Dutch man, works at a
company in Groningen. He met his Chinese girlfriend online. He said: “I started using QQ four years ago because my girlfriend persuaded me to use it. I use the International Edition as it is in English. Now I use it everyday to talk with my girlfriend who is in China (I use WeChat a lot now). QQ is very stable, great audio and video, I love the emoticons.”
As an overseas Chinese teacher, the most convenient way to communicate with my family and friends in China is to use QQ. I often upload recently taken photos to the QQ Zone to share with friends. At the same time I can read my friends’ news too. I also recommend using the programme to my students, because, just as Kerisa said, “when you are learning a language you should use the tools the speakers of that language use.”
You will find the famous penguin at the bottom right corner of Chinese computer screens if you look very carefully. This little penguin now plays a powerful and significant role in Chinese daily life.
QQ was developed by the giant technological company Tencent Holdings Limited in 1999. Just like most Chinese internet-related programmes, QQ was based on a foreign model, which is an American messenger program ICQ. But now, QQ has become the first widely used popular instant messaging software service in China. In addition to instant messaging, it also offers a variety of services, including online social games, music,
So far, Tencent has
grown into one of
China’s largest and
most used internet
service portals.
MADE IN CHINA
here are quite a few social media
programmes available these days: WhatsApp, Skype, QQ, Google Chat, WeChat and Viber. So many that it is sometimes hard to choose which one to use. I guess it depends heavily on the function you want to use and the people you want to communicate with. These days, social media programmes also offer other services, making it harder to choose among them all.
Over the years I have made a lot of Chinese friends. At first, I had difficulty communicating with them and most of the time I used email to share my thoughts with them. The tools I used to communicate were not all that common in China and I had to adapt in order to be able to talk to my friends and colleagues. After some research and advice from a good friend, I started using WeChat. I also started using QQ not all that long after.
Using these programmes opened up China for me. I could finally talk to all my friends. After using QQ for a while, I learned that QQ provides high standard services and enables me to exchange information in different ways. Any way I need to. If people ask me what social media programme I like best and use often these days, I would say QQ.
Kerisa, a British secretary working at a company in Britain’s second largest city, Birmingham explains: “I use QQ to make Chinese friends. I talk to them in Chinese and English. The chatrooms are great because there is always someone online. When you are learning a language you should use the tools that speakers of that language use and QQ is China’s number one communication tool.” Friends recommended using QQ when she started to learn Chinese two years ago. Now she enjoys talking to Chinese friends on QQ. She also created a QQ chatroom where she talks to Chinese-speaking people everyday. She can now speak Chinese very well by talking with Chinese friends using QQ.
“Du, du, du” is the sound coming from albert’s laptop, a Dutch engineer
working for a New Zealand company. at the same time, a little penguin
starts blinking in the right-hand corner of the screen. He knows that his
Chinese business partner is calling him, and albert quickly taps on the
keyboard to catch up with his Chinese friend. The communication software
Albert is using is called QQ, a very famous software brand in China. We
asked Albert about his experience with QQ, he said:
T
QQ:
The Little
Penguin Connecting
the World
M a D E I N C H I N a
Teng Jiaqi (
滕嘉琪)
funding is the responsibility of the provincial government. In 2001, the Chinese Central Government defined basic guidelines for Early Childhood Education, encompassing Physical Education, Language, Sciences (Maths, Science), Arts and Social Studies. Most parents are impatient to see their child reading and demand that teachers deliver their toddlers phonics, letters and mathematics. Parents are also keen on taking their children to a variety of extracurricular courses: ballet, dancing, piano, violin and English lessons.
After teaching a few months, I was promoted to Academic Director of the kindergarten. Our objective was to nurture international children, who will feel at home in any corner of the globe. We needed, therefore, a suitable curriculum, which lays the foundation for future worldly, inquisitive adults and a curriculum that promote cultural tolerance. Given that the principal of the kindergarten was a Canadian national, he suggested adopting a North American study programme, but I convinced the management of the through the expressions on their faces. I
see the traces of this inborn mentality in the teachings of Confucius (孔子) and his
assertion that the relationship is primarily one of harmony rather than of confrontation or conflict.
The positive aspect of teaching young children is that they are very receptive and teachers can see the result of their work much earlier than with older children or adults, bringing a feeling of fulfilment and confidence to both sides. Soon my initial alarm to approach the world of toddlers and preschoolers subsided, and after two years I would not like to leave this beautiful, dainty and peaceful world of young children.
China is a fast developing country, and education transforms accordingly. In the past, the collective approach to teaching––teaching the class as a whole group––was the dominant teaching method. But recently, the care for the individual child is starting to gain ground and is becoming increasingly sought after. There are no national standards in China for kindergartens. Both supervision and
My Experience as a
Preschool Teacher
in China
Stefan Penchev
first entering the kindergarten where I presently work as an academic
Director, my nerves were reminiscent of those just before an important
exam. Even with more than thirty years of teaching experience, I felt
totally unprepared for the job of kindergarten teacher. I just knew a
couple of nursery rhymes but no games and activities for toddlers.
actually, I knew nothing!
As it happens, the children expect at least two new songs a week as well as a rich repertoire of crafts, games, indoor and outdoor activities. It turns out that teaching preschool children is a job of its own with its specific requirements and expertise. My boss, fortunately, was patient, granting me a short induction period to familiarise myself with this new environment.
Preschool children live in a different world. We, adults, are like elephants in a china shop: unwise to their deep sensitivities. Young children get
emotional over events that adults consider commonplace and trivial. Chinese children are like any other children, yet from my experience they come across more expressive and emotional. Some of them cannot tolerate even mild scenes of violence, which are often present in children’s movies. The best scenes for them are those showing beauty, harmony and evoking positive emotions. Surprisingly, they feel happy with movies without conflict. They are quite at home with films portraying peaceful environments, and this is reflected
C H I N A O B S E R V A T I O N S
famous, not just in China but around the world. Some countries are known through their world famous brands. For example, when talking about the brand Nokia, Finland springs to mind. The brand Samsung is connected with South Korea. Apple is associated with America. Shell is connected with the Netherlands. With the growth of Chinese internet companies and popularisation of Chinese brands, sight of the QQ penguin in the bottom right-hand corner of computer screens will soon recall the country of China. More and more internationals will recognise QQ, the little penguin connecting the world.
very widely used messaging app in China now. The company even coined the phrase “The Era of WeChat” to describe the app’s popularity. The most remarkable feature of WeChat is its voice messaging function and its portability. With these useful new features, WeChat is very popular among Chinese young people. As of January 2013, it had 300 million users, according to the Managing Director of Tencent Ma Huateng. Because of its open nature and its variety of mobile features, WeChat is an important tool in Tencent’s ambtition to diversify and expand internationally.
Tencent’s QQ penguin is becoming increasingly
BRANDZTM TOP 50 Most Valuable Chinese Brands 2013
No. 5: Tencent
CoMPaNY: Tencent Holdings Ltd.
BRAND VALUE: US$20.2 Billion
YEAR-ON-YEAR CHANGE: 60%
HEADQUARTER CITY: Shenzhen
INDUSTRY: Technology
YEAR FORMED: 1998
DYNAMIC TECH LEADER DIVERSIFIES, EXPaNDS
Driven by the rise of mobile, Tencent is shifting priorities. Tencent Weibo, the brand’s Twitter-type service, and its mobile messaging app Weixin are now among Tencent’s most
significant products.
The open nature of Weixin and its variety of mobile features make it an important part of Tencent’s strategy to diversify and expand internationally. Meanwhile, QQ, Tencent’s well-known instant messaging service claims over 700 million active users, making its audience in China comparable to Facebook's size globally. Tencent reorganised its business during 2012 to develop internet opportunities more effectively. The company purchased 49 percent of
Singapore game maker Level Up for $27 million and a minority stake in Epic Games, a US 3D technology company. Tencent also entered into an agreement with Disney, in which Disney will help develop animation content for distribution on Tencent platforms.
In another deal, Tencent will provide software for a 26-inch flat-screen TV made by TCL that allows users to shop and access online games and videos. The deal marks Tencent’s first collaboration with a consumer electronics maker. The deal illustrates the dynamism of Tencent, a brand that achieved market leadership in about a decade.
Tencent derives most of its revenue from internet value-added services but also relies on mobile and telecommunications, online advertising and e-commerce with a brand called buy.qq.com, which it launched in December 2011. In 2004, Tencent Holdings Ltd. was listed on the Hong Kong Stock Exchange. Tencent ranks 37 in the BrandZTM Top 100 Most Valuable
Global Brands 2012.
As a 24-year-old British language graduate, I went to China to discover the Orient. My knowledge of this culture was very much informed by what I had seen on television, particularly the BBC travel documentary
Around the World in 80 Days. The footage
of China is still fresh in my mind: the masses of bicycles in Shanghai, the multitude of people in Beijing and the quiet hum of street activity in Guangzhou. Commentary of Chinese street life was accompanied by the documentary theme tune, one that was remastered into a quintessential Chinese sound with the Chinese harp and the bamboo flute. This was my acoustic perception of China before departure.
My first port of call was Beijing. Unlike the conventional traveller, I took the train from Moscow to Beijing. Getting off the train at Beijing’s Main Station soon collapses the acoustic myth of the Chinese soundscape being defined by sounds similar to the ones in the documentary. The acoustic tempo and pitch were much speedier and harsher than on the documentary. On arrival, the sound of a multitude of people’s footsteps rustling across the station platforms, luggage trolleys rolling across gangways, thousands of voices speaking a four-tone language landed on my acoustic organ with an immediacy and penetration that would shock the ear.
The soundscape of Beijing, just like its visual landscape equivalent, had undergone rapid transformation between the BBC documentary of the 1980s and my arrival in 2004. A mass expansion of the transportation network ensured that it was not the bicycle bell that governed the soundscape of Beijing’s streets, but the high-pitched car horn. But the car horn is not just an acoustic hallmark of the Chinese capital; it also dominated the soundscape, perhaps to a greater degree, at my next and final destination: Handan in the Hebei province.
On arrival into Handan, a city of then eight million people, the soundscape came across as much more disorganized and chaotic than Beijing, not least because it was concentrated on a more condensed space. Sounds of cars, buses, motorbike engines; radios, loudspeakers, announcements and raised voices; the verbal shouts of salesmen, taxi drivers and random pedestrians blended together to give me my first acoustic impression of Handan: a concentrated loud din that was a far cry from the somewhat assonant musical backdrop of the BBC documentary. Being
Culture Shock is defined as the feeling or perception of being in a place whose
customs are far removed from those experienced at home. Reading up on a
country prior to departure can do much to reduce the severity of the shock. The
textual nature of travel guidebooks, absorbed with the eye, ensures for a visual
glimpse into a country. And yet, visual readings of place cannot prepare the
visitor’s ear for the shock of the urban soundscape. This was true of my own
acoustic experience of China: a cultural shock to the ear that no guidebook can
prepare the visitor for.
C H I N A O B S E R V A T I O N S
John Goodyear
I am optimistic about early childhood education in China. China is a dynamically developing industrial country requiring knowledgeable and creative professionals. The human factor, the ‘we’ in the Confucius (孔子) quote, is the major driving force for
any country's progress. This fact is also acknowledged by the Chinese Central Government. They have demonstrated their willingness to improve education across the board. Professional academic management of kindergartens and stricter control are the keys to academic success and high professional achievements, advancing China’s development in the future. for learning and laying the foundations
for future emotions and personality in adulthood. According to the May issue of Archives of Pediatrics & Adolescent
Medicine, “experiences between birth and
age 5 matter significantly to children’s long-term emotional and psychological health, and changing these experiences for the better pays dividends” (Science Daily, May 7, 2010). Simply said, a happy child makes a happy person. Confucius (孔子)
underpinned this principle with these words: advantages of the British system.
The British National Curriculum has a very well-organised framework for early childhood monitoring and education. Its core concept is the uniqueness of each child and this is exactly in tune with the changing approach of childcare practice in China. The British government’s Early Years Foundation Stage (EYFS), a framework for preschool-aged children, has a sound structure together with an abundance of teaching aids and guidance. Its programme for mathematics is an advanced modern framework, teaching both methods for solving problems and thinking mathematically. Such an approach is crucially important for tomorrow’s engineers and scientists. But the most important feature of the EYFS framework is the assessment criteria, which provides standards for measuring the child’s development and achievements, something I have found to be lacking in the Chinese education system.
The profession of kindergarten teachers has an array of consequences, both personally and socially. Experiences during early childhood are vitally important
To put the world right in order,
古之欲明明德于天下者，
we must first put the nation in order;
先治其国；
To put the nation in order,
欲治其国者，
we must first put the family in order;
先齐其家；
To put the family in order,
欲齐其家者，
we must first cultivate our personal life.
先修其身.
CHINA OBSERVATIONS
Soundscapes
of
Handan
prominent and luxurious financial centre, and numerous big restaurants. To escape from the vibrant and lively main streets, we retreated to one of Shanghai’s many bookstores and cafés. These are great places to wind down and read about Chinese culture.
During our visit, Shanghai was in the grip of the World Exposition. The Expo was a huge area filled with structures built especially for the occasion, in which more than 246 countries and companies displayed expositions representing the unique traits of their people. One of the reasons why our visit took us to Shanghai was to witness this spectacle. The exposition was aimed at displaying future plans for improved quality of life in a setting that celebrated diversity and international cooperation––it made for an enthralling experience.
At the Shanghai Expo I had a very interesting conversation with a Chinese girl. She was about my age and was also interested in seeing more of the world. Her reason for visiting the exposition was the same I had for visiting China. She was interested in foreign cultures, and by visiting the Expo she could discover a lot of different cultures for the first time. For me, her attitude illustrated three things. Firstly, Chinese people want to know more China has always been a source of
fascination to me. This appeal probably stems from the great distance between our two countries, the allure of a language based on a completely different system, in addition to the fact that China is the country with the largest population on earth. It has always been somewhat of a mystery to me. It was a dream of mine to go there and see it for myself.
After a long flight, we arrived in Shanghai (上海). The airport was huge and
buzzing with people. A high-speed train took us downtown, where we checked in to our hotel to have a little rest before exploring Shanghai for the first time. One of the first places we went to is the river boardwalk on the western bank of the Huangpu River (外滩) known as The Bund. The atmosphere
is really relaxed and friendly, and in the evening you get a beautiful view of a completely illuminated skyline. Besides the view, you also get to experience how the locals spend their leisure time, and this way the visitor gets a feel for Chinese culture there.
The best way to get to know the city centre of an enormous metropolis, such as Shanghai, is to just wander around and get lost. On the main streets, you are bound to run into huge fashion stores, the very
Just like every year, we had to pick
a destination for our family summer
holiday. And just like every year, we
were short of time but full of ideas.
My oldest brother wanted to go to
the United States, my middle brother
wanted to explore Africa, and I
wanted to experience China. I think
you can guess which place we decided
on, because otherwise I would not be
writing this article and you would not
be reading it: we went to China.
My Journey
to the East
Arwin Timmermans
C H I N A O B S E R V A T I O N S
bangs, booms and crashes, ones that my ear eventually heard as a sonic whole. This acoustic phenomenon has an interesting effect: it cuts through the mundane, everyday soundscape, announcing the arrival of something new to the city.
It is not all noise though. The soundscape of Handan is dominated by the sounds of Chinese voices. A walk along Renmin East Rd (人民东路) in Handan, a central city street
housing banks, government departments and a mosque, confronted my ear with a range of Chinese accents. The standard Chinese known as Putonghua (普通话), the
heavily accented countryside dialects of Handan’s rural immigrants and the Chinese of the Uyghurs landed on my untrained ear as acoustic shock. Yet, the ear adapts to the new acoustic environment. It did not take me all that long to make distinctions between ethnicity, status and background through different individuals’ verbal utterances.
This, then, was a brief hear-back (as opposed to a look-back) of some of those distinctive sounds that formed part of the Handanese soundscape. Far from the theme tune on the BBC documentary that I thought was reminiscent of China, I came to find an urban acoustic environment richer, deeper and louder than I first imagined. It blended the noisy with the cacophonous, the human with the mechanical, the assonant with the dissonant. Booms, buzzes, crackles, hums, laughs, rings, shouts, scrapes, zooms―these were just some of the sounds that shocked and surprised my ear. Yet, as with every human organ, the ear attuned itself quickly to the new conditions and accepted them for what they are: aural stimuli without whose presence the experience of the city would be incomplete. buzz of insects in Handan. This brief early
morning acoustic calm soon gives way to the cacophony of business and school traffic at around 6am.
The start of the school year in Handan is accompanied by the sound of pre-recorded revolutionary Chinese patriotic military music. This music blares out from schools’ loudspeaker systems. Not stopping at the confines of the school gates, it penetrates out into the local community. The school year is acoustically announced patriotically to the local neighbourhood. From my apartment, I would watch parents arrive with their Primary school-aged children, walking to the moderately quick tempo of the military music. Despite its ear-splitting volume, the tempo acts as a kind of crowd control to ensure that the flow of the new intake occurs at a pace with which the school’s capacity can cope.
It is not just the ushering-in of a new academic year that is heard as much as seen. Ceremonial inaugurations in Handan shock the ear. Whilst it is customary in Western cultures to quietly cut a ribbon, the Chinese hold true to the belief that noise can ward off evil spirits. Ear-splitting, explosive devices painted in red for good luck are ignited. Letting off fireworks does not just signal the opening of something new, but it wishes it well. A typical grand opening would be set to quick successive acoustic new to me, this Handan soundscape was
exciting yet exhausting. What made it even more exciting was the ability to surprise and shock, at the most random times in the most random places.
Early morning risers in Handan are confronted with an incredible sight: the enthusiastic elderly out in force for their morning exercises. Whether it be Tai Chi in Congtai Park (丛台公园) or the coordinated
street dancing of old women to pre-recorded music―the sounds generated would project peace and tranquillity in the middle of the city yet to rise for its daily work. It is still possible at this time of the morning to hear the natural tones of birds and the constant
BASF will cooperate in two new joint ventures in Xinjiang (新疆); and both parties also agreed
to strengthen investors by lending them greater support and assistance.
Strengthening ties between Germany and China will undoubtedly unleash a greater need for a wider awareness and understanding of each other’s cultures. How should Germans conduct business with the Chinese? How should Germans communicate with new Chinese colleagues and business partners? What are the taboo areas when trying to seal the all-important deal? These will be some of the questions that will not just occupy Volkswagen and BASF managers on an increasingly regular basis; they will be questions that German small and medium-sized companies will also have to face in doing business with China. These companies are the real bedrock of the German economy: small to medium-sized companies manufacturing high-quality ‘Made in Germany’ products that are becoming well sought after in China. These products are not necessarily from Berlin, Hamburg and Munich, but from towns and cities little known to the outside world, let alone in China.
One such town is Oldenburg, located in the north-western part of Germany. So important
N HIS FIRST OVERSEAS TOUR as Chinese premier, Li Keqiang (李克强) made
his only EU stopover in Germany. “Made in China,” he said at a press conference, “is still emerging and ‘Made in Germany’ has already matured.” Combining the two, according to Li, has the ability to create a “dream couple”. During the course of this German-Sino meeting, 17 declarations and cooperation agreements were signed, further deepening economic relations between the two countries. Volkswagen agreed to open a factory in Changsha (长沙) with
its Chinese joint venture partner by 2016. In a further agreement, the German chemical giant
Intercultural Business
Communication:
Germans
Doing Business in China
John Goodyear
I
D o I N g
b U S I N E S S
W I T H C H I N a
It all started out as a trial in 1978: the opening-up of China to the outside
world for trade and commerce. Since then, China has emerged as an
economic powerhouse. It is increasingly exporting its ‘Made in China’
products around the world and importing foreign goods and services into the
country. Increase in trade between China and the rest of the world has been
accompanied by increased human contact between Chinese and Western
business people. This is very much the case between China and the country
home to Volkswagen, BMW and Mercedes: Germany.
about other cultures, just as I wanted know more about Chinese culture. Secondly, even though a large language barrier existed between me and the Chinese girl, with a bit of effort, we still found a way to communicate because we shared common interests and aspirations. And finally, while I used to think that a big part of Chinese culture would be unfamiliar to me, some goals just seem to be universal.
Next we went to the city of Suzhou
(苏州). It has been called ‘Venice of the East’,
which used to be an important city for the Chinese silk trade. Given its historic value, Suzhou has been added to the UNESCO World Heritage List. Here we got tricked into visiting a fake silk museum. We found
out about the museum being fake after the visit, when we turned a corner and found the official silk museum. And although we felt a bit cheated, fake or not, both museums were fun.
After our time in Shanghai, which is China’s business centre, and in Suzhou, the historical centre for ‘Su-silk’, we went to its political centre: Beijing (北京). This is where
the government sits, where Tiananmen Square (天安门广场), the largest public square
in the world, is situated and where the Great Wall (长城) stands strong, still to this day.
The most impressive feature of Beijing is its scale. The buildings are massive, the public squares reach as far as the eye can see and everything in the city breathes an air of
power.
One of the things I would advise everyone to try in this city is the world famous Peking Duck. In a huge restaurant completely devoted to this dish, we got to experience the taste sensation of Peking Duck for the first time, prepared by a real expert.
We visited a lot of famous sites, including the Summer Palace (颐和园), the Forbidden
City (紫禁城), and we were also extremely
lucky to visit a part of the Great Wall that
was very quiet, which allowed us to enjoy the magnificent site of the wall and the serenity of the valley.
Unfortunately, all good things come to an end, and soon after our visit to Beijing, we had to return home. During our journey to the East, we experienced a complete culture shock, we saw some awe-inspiring structures and we met interesting people with fascinating ideas, but I am well aware that we experienced less than a fraction of what China has to offer.
After this trip I decided that I would one day learn to speak the language and return to China to experience the country, less as a tourist and more like a Chinese person (中国人). This opportunity for me to return to
China has come a lot sooner than expected, because this summer I will join the GCI Summer Camp to study Chinese at the Communication University of China for two weeks.