06 | 2017 | Green Growth and Sustainabilty

China’s New and Green Normal

Whether the skies above the bustling metropolises or rolling green hills of China are clear or darkened by pollution, whether we can see them with the naked eye or not: environmental issues are undoubtedly among the biggest issues facing all of us working and living here in China. China’s rapid economic growth – with GDP growth averaging ten percentage points for a decade – has taken its toll on the environment. The government, the business community and academia has acknowledged the need to act and address China’s environmental degradation.

This issue of the German Chamber Ticker will be all about facing the reality of environmental degradation and concurrent green initiatives, business ideas and solutions to help your business to emerge from the haze of pollution. We will shed light on how recent incentives in China’s green industry will affect your investment plans, we will look into stationary and mobile air purification systems and provide insight into how Beijing’s new push for environmental enforcement will impact your day-to-day business in China. And, building on our previous issue about innovation in China, we will also look at how Internet of Things (IoT) technologies are enabling new possibilities for enterprises to achieve cleaner and more efficient operations.

As you can see, there is no shortage of ground to cover when it comes to green growth and sustainability in China. As always, the German Chamber of Commerce in China Shanghai remains committed to helping your business flourish in China, especially in this “new, green normal”.

We hope that you will enjoy this month’s German Chamber Ticker!

Yours Sincerely,

Simone Pohl

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Cover Story 1 - A China Carol

Cover Story 1 - A China Carol

The Ghosts of China Past, Present, and Future

By JOHN PABON

In Charles Dickens’ holiday classic “A Christmas Carol,” Ebenezer Scrooge plays host to three unlikely guests. Transporting Scrooge to a more innocent era, the Ghost of Christmas Past reveals a time where childhood friends and family were more important than money. The Ghost of Christmas Present introduces Tiny Tim, a seriously ill child nonetheless overcome with the joys of Christmas. Looking ahead, the Ghost of Christmas Future paints a lonely death for the miser. With this, Scrooge pledges to change his ways. He undergoes a transformation taking him from despised to revered. China, too, is presently having to grapple with ghosts of its past in hopes of creating a more sustainable future... More

Cover Story 2 - Green for the Internet of Things

Cover Story 2 - Green for the Internet of Things

Global Imperative for Climate Actions

By JIAWEI ZHAO

The 2016 Environmental Performance Index from Yale University showed that over 3.5 billion people, or about half of the world’s population are living in countries with unsafe air. 10% of the world’s deaths are caused by air pollution. This environmental crisis will likely be exacerbated by another 30% increase in energy demand by 2040, with a corresponding 35% increasing in carbon dioxide emissions, as projected by the International Energy Agency. Given the severity of the issue, environment protection has become a key concern for China... More

Cover Story 3 - China’s Air Pollution Problem

Cover Story 3 - China’s Air Pollution Problem

Background and Solutions for Stationary and Mobile Air Purification

By ROBERT F. WOLF

In September 2017, a scientific research was published which revealed that more than 1.1 million people in China die due to the massive air pollution per year. As shocking as this number is alone, a further finding of this study showed that in the People`s Republic, air pollution causes a shorter lifespan of three years in average. Only a mere 1% of China`s urban population is surrounded by air which is considered safe by the standards of the European Union.... More

Cover Story 4 - Investing in Green

Cover Story 4 - Investing in Green

How Will Recent Incentives in China’s Green Industry Affect Your Investment Plans?

By KRISTINE HORBACH

When planning investment in the green industry in China, it is important to consider not only the current investment climate for renewables, but also the influential financial incentives introduced by the Chinese government... More

Cover Story 5 - China’s Environmental Enforcement

Cover Story 5 - China’s Environmental Enforcement

Understanding How the Environmental ‘New Normal’ Will Affect Your Business

By JULIA COYM


Environmental enforcement has become a major business risk for companies operating in China – especially in the manufacturing sector. The fact that China’s manufacturing slowed down at the start of the fourth quarter only underscores how serious China’s leaders are about enforcement. Additionally, at the 19th Communist Party Congress, Xi Jinping affirmed the party’s commitment to the environmental agenda as part of its plan to address social issues resulting from years of rapid growth. The message is clear: Environmental protection now takes precedence over economic growth...More

In the Spotlight - No Loss of Know-How, No Job Reductions

In the Spotlight - No Loss of Know-How, No Job Reductions

Interview with Mr. Wolfgang Müller, Senior Advisor of IG Metall Bavaria District

By LYDIA SCHULZ

Mr. Wolfgang Müller has been working with IG Metall Bavaria since 1999 and was member of the supervisory boards of Audi, Schaeffler and Siemens. As Senior Advisor of IG Metall Bavaria, he conducted a survey in 2016/17 on the relationship of labor unions and work councils and their Chinese investors...More

Feature 1 - Legal Update

Feature 1 - Legal Update

China Amends Regulations on Environmental Protection of Construction and Production Projects

By DR. ULRIKE GLUECK, MICHAEL MUNZINGER, XU WANG

During the last years, due to the alarming situation of air, water and soil pollution in the PRC, the necessity and importance of a better environmental protection was brought into the focus of public awareness. Also the Chinese government continuously attached greater attention to this issue. Starting from 2014, a series of laws and regulations related to environmental protection have been revised, updated and newly introduced in the PRC... More

Feature 2 - Buying Health Abroad

Feature 2 - Buying Health Abroad

Chinese Customer Expectations Trigger International Patient Management Industry

By THOMAS KAPITZA

Though there is an astonishing lack of valid statistical data, International Patient Management (IPM) Industry is expected to be a growing business sector, serving Chinese customers and patients. Taking a closer look into the current situation, one thing is certain: Hopes are flying high for companies providing medical treatment and complementary services against the backdrop of a rapidly emerging Chinese healthcare system... More

Feature 3 - Smooth Transitions

Feature 3 - Smooth Transitions

Employment Issues in China M&A Deals

By TRACY LIU

Employment law issues have the potential to significantly affect M&A deals in most jurisdictions and can play a crucial role in deciding whether a deal goes ahead smoothly. A slight problem in an M&A transaction brought on by an employment law issue can cost both transacting parties time and money. In the worst cases, the presence of certain employment-related matters can thwart a potential deal entirely and force it to be abandoned. Given the colossal costs that can stem from these labor disputes, it makes sense that employers or potential buyers be proactive and take steps that will cumulatively lower employment-related risk... More

Feature 4 - Protecting Your Property Rights

Feature 4 - Protecting Your Property Rights

"Use" in the OEM Business Model According to Chinese Case Law

By GÜNTHER MARTEN

The annual damage caused by counterfeiting and piracy to the world economy is estimated to be around USD 461 billion. In the year 2013, this illegal trade amounted to some 2.5% of world trade and constituted some 5% of all imports into the EU. 80% of counterfeits confiscated in the EU and US came from China (including Hong Kong). Even though China has made progress in the protection of IP rights, the percentage of counterfeit products seized from China remains roughly the same...More

Feature 5 - German Business in China

Feature 5 - German Business in China

Results of the 2017/18 Business Confidence Survey

By GERMAN CHAMBER OF COMMERCE IN CHINA

German companies evaluate the current economic situation in China more positively than in 2016 and remain optimistic for the coming year. However, they are faced with a range of business challenges and have become more cautious regarding investments at new locations in China. The German Chamber of Commerce in China conducted its annual Business Confidence Survey between 21st August and 29th September 2017 and collected 423 valid responses from its member companies. The representative sample allows for a comprehensive overview on developments and business sentiments of German companies in China...More

More Than Business - Sustainable Return on Investment (SROI)

More Than Business - Sustainable Return on Investment (SROI)

A Tool for Emerging Economies?

By TARA MERK AND PHILIPP KRUSCHEL

In the 21st century, running a successful business is not always easy. The competitors are plenty and profit margins are growing slim. Moreover, with unstable regimes, the looming threat of climate change and drastically increasing inequality, the playing field on which multinational enterprises operate today has become significantly more complex – or at least, this is what it seems. A group of leading businesses has begun to see the matter from a radically different point of view. Instead of focusing solely on the return on investment (ROI) generated through simple labor, machine or advertising investments, they are turning the international risk factors listed above into viable business opportunities... More

 

 

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