02 | 2017 | THE ELECTRIC AGE

The automotive industry proceeds rapidly with the development of cars with alternative propulsion systems, like plugin hybrid and battery-electric vehicles. By surpassing the United States as first global leader on the New Energy Vehicle (NEV) market in 2015, China plays a major role in driving the further development of the electric vehicle industry. According to data from the China Association of Automobile Manufacturers (CAAM), with a production of more than 517,000 NEVs in 2016, China has established itself as a power to be reckoned with.

In this issue of the German Chamber Ticker, we will also take a closer look at smart manufacturing, the Internet of Things, smart technologies and their effects on the automotive industry, but also on our daily life and our connected or even “smart homes.” Furthermore, experts will share their insights on growing trends in the Chinese transportation industry, in particular the fast development of the enormous high-speed railway network in China. We hope you enjoy reading it.

Yours sincerely,

Alexandra Voss

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Cover Story 1 - China’s New Energy Vehicle

Understanding the Market, Policy & Consumers

by YALE ZHANG

2014 and 2015 were stunning years for the New Energy Vehicle (NEV) development in China. In 2014, China produced nearly 85,000 plug-in hybrids and EVs, which is 265% higher than in 2013. In 2015, the production volume hit 379,000 units, rocketing by 345%. In 2016, the volume grew further 35% up to 510,000 units. China’s global rank of the NEV market increased from number four in 2013 to number two in 2014, right after the US. One year later, China jumped to number one, far higher than the US market size of 123,000 units. In 2016, China’s NEV volume has outpaced more than double of the rest of the whole world. 

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Cover Story 2 - Changing How We Live?

Connected Homes and Integrated Technology

by ELLEN TATHAM

Less than a decade ago the idea of remotely controlling devices in your home felt like something from a science fiction novel, today it feels normal. In order for smart homes to function effectively you need a central “hub” from which everything can be controlled, and smartphones or tablets seem to be becoming the obvious choice. The global adoption of smartphone technology has been faster than that of any other consumer technology in history. The developments in Smartphone technology have empowered the consumer and provided them with greater capabilities, ushering them into the realm of science fiction.

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Cover Story 3 - Re-shaping the Pattern of Mobility

A Brief Analysis of the Growing Trends in the Chinese Automotive Industry

by FREEMAN SHEN

There is essentially no difference between what we drive now and a car invented by Carl Benz a hundred years ago. So, I have been thinking that if Android and IOS can be considered the second invention of the mobile phone, then when will we truly reinvent the car? This is the opportunity seen by the Chinese automotive industry today. We believe that the next three to five years will be crucial: The car will be redefined and the technology singularity for the automotive value chain is approaching. The accelerated speed for future automotive developments will significantly pick up and display an increasing level of intelligence.

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Cover Story 4 - The “Sino-German Electric Vehicle Charging Project”

How to Meet China’s Challenges in the Electric Vehicle Charging Infrastructure

by SANDRA RETZER and HAOPING WANG

In recent years, E-Mobility has become a major topic for several countries worldwide. Due to challenges in the field of energy security, climate protection and air pollution in urban areas, the governments of Germany and China push the development of alternative propulsion systems in vehicles. The goal indicated in Germany’s “National Electro Mobility Development Plan” is to have one million Electric Vehicles (EV) by 2020 while China’s goal is to reach five million in New Energy Vehicles (NEV) production and sales by the same year. EV development has become a vital part in China’s national “Energy Saving and New Energy Vehicle Industry Development Plan (2012- 2020)” and an essential area in the national development strategy “Made in China 2025.” A well operating and interoperable charging infrastructure is crucial for the promotion and development of EVs. 

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Cover Story 5 - The Future of Electric Vehicles and Industry 4.0

Something Old, Something New, Something Borrowed and Something Green

by QIAO LIU

There are so many new words popping up each day: Electric Vehicle, Industry 4.0, Artificial Intelligence, Human-Robot Collaboration, UAV etc. probably sound familiar. This article seeks to further explain them to the reader.

Something Old

Technically, electric cars are not completely new, since the major parts of a car remain the same, except the power source. It is well-known that a car, automobile, or auto, whichever name you prefer to use, is actually a wheeled, self-powered motor vehicle that you would choose for transportation. For the near future, no matter how the automotive industry changes, vehicles will still have wheels, engines, and similar car bodies. Also, the production will remain the same. The auto industry has developed rapidly over ... More

Cover Story 6 - The Time is Now

E-Mobility in China

by PROF. DR.-ING. TONG ZHANG

With a production of more than 517 thousand New Energy Vehicles in 2016, China was clearly the Number One worldwide regarding E-mobility. Compared with 2015, the number of battery only electric vehicles (BOEV) has increased dramatically with a gain rate of more than 84% for passenger cars and 4% for commercial vehicles. The situation for the hybrid, incl. plug-in hybrid vehicle was mixed with a plus and minus of 27% for passenger cars and commercial vehicles respectively. The market trend reflects the Chinese New Energy Vehicle development strategy, starting with full electrification, first in commercial vehicles before moving to passenger vehicles. By maintaining the dominant market position of the new energy commercial vehicle, the gain of battery electric car in 2016 also shows the long anticipated entry into the private car market. 

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Cover Story 7 - The Invisible Benefit

High-speed Mobility in China

by MAJDI ALHMAH

With an estimated 130,000km of rail lines, China ranks second in the world behind the USA for the longest railway length with Germany weighing in at 41,315km.

However, when it comes to high-speed railway length, China ranks first globally and exceeded 22,000km railway length in September 2016, Spain comes second in the world with 3,100km and Germany third with 3,038km. The length of China's high-speed rail is greater than the combined length of all high-speed railways in the world. This staggering achievement was made just in ten years, and my tenure in China has started since then.

In the past decade, China has been building an extensive high-speed rail network to upgrade its existing railroad network. The plan was to build eight high-speed rail corridors, four verticals and four ... More

In the Spotlight - ASEAN: Economic Dynamism Regionally and Globally

Interview with Peter Kompalla, Executive Director of the German-Philippine Chamber of Commerce and Industry and of the German ASEAN Business Council from the Philippines

by SIMONE POHL and OLIVIA HELVADJIAN

The Association of Southeast Asian Nations, or ASEAN is a major hub of manufacturing and trading and one of the fastest-growing consumer markets in the world. As the region develops its economic profile, rising wages and labor costs in neighboring countries like China also help ASEAN to gain momentum. On the occasion of the ASEAN breakfast organized by the German Chamber of Commerce in China | Shanghai, German Chamber Ticker had the opportunity to speak to Mr. Peter Kompalla, Executive Director of the German-Philippine Chamber of Commerce and Industry and of the German ASEAN Business Council from the Philippines, on the potential, trends, and challenges in the region.

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Features 1 - The Booming Electric Age

China’s Policies for E-mobility Manufacturers and Legal Responsibilities

by DR. ULRIKE GLUECK and EMILY XU

The automotive industry in China has become the largest in the world. The fast development of the automotive industry has brought considerable benefits to consumers, but also contributed greatly to environmental pollution. As reported by the media, automobile exhaust contributes a fair share to air pollution in most big cities. Therefore, the development and promotion of new energy vehicles (NEV) has been put high on the agenda in China. In the 13th Five- Year Plan, the government plans that by 2020 the annual production of e-mobility shall reach 1 million units. In order to realize this goal, the government has implemented or drafted various policies and rules to support and speed up the development of e-mobility, e.g. exempting Vehicle Purchase Tax on certain kinds of NEVs, developing e-mobility infrastructure nationwide, paying subsidies for the private purchase of NEVs etc. It is expected that, China will become the largest market for e-mobility in the future and that the booming electric age is coming. 

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Features 2 - The Inner Race of Influence

For many Executives Influencing Others Comes from within their Character

by WARWICK JOHN FAHY

One of the greatest challenges facing leaders in China today is the compulsion to drive rapid change in a complex, high-pressure environment. The world we live in is increasingly volatile and unpredictable as social media, financial technology (fintech), and mobile commerce shake up the business world. As the global economy becomes more uncertain, business leaders feel under greater pressure to deliver results. We have observed that leaders with a strong executive presence to leverage their credibility, respect, and reputation inside the company are better equipped to lead this change.

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More than Business - The Football Project

by STEFAN AHRENS

Imagine when you were young, all the long school days of sitting and listening to classes. Physical education provided an opportunity to relax, to leave the congested classroom and storm onto the playground to let some steam off. Aside from the fun it provided, sports education is a vital part of a child’s development of all sorts of useful skills. However, in Shanghai, especially schools that educate migrant worker’s kids face harsh scarcity of resources and are often unable to provide qualified sports teachers to help these kids develop basic movement skills and enjoy some healthy exercise.

In fact, sometimes they can only provide one teacher for 600 kids Or the math teacher delivers sports classes. The consequences of a lack of exercise and physical education are far and wide, as sports can also support the development of intellectual and social skills such as team spirit, tolerance and respect for each other. It is also particularly important from a health point of view, since child obesity is rapidly becoming an issue in China.

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