03 | 2015 | Transportation & Logistics

China on the Move – Transportation & Logistics

"In this edition of the German Chamber Ticker we take a look at how the automotive, transportation and logistics industries are dealing with the new economic and technological realities of today’s China. Our authors discuss modern approaches to data, branding, automation, and other methods of bringing the industries and the supply chain into the modern era. We wish you instructive and pleasant reading!"

Oliver Regner - Executive Director, GCC South & Southwest China 

GCT-03-2015

Cover Story 1 - Picking Up Speed

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The Chinese Logistics

Market in the Era of Internet Plus

by JEAN WANG and MIKE HOFMANN

 

China’s logistics market is transforming itself. The rise of e-commerce and the digitalization of China mean that logistics’ traditional customers have to adapt to a “new normal,” while industry players face new challenges and opportunities. Premier Li Keqiang recently emphasized the huge potential of “Internet Plus” during the annual sessions of the National People’s Congress and Chinese People’s Political Consultative Congress. According to Premier Li, all traditional industries should strive to go digital in order to secure future growth.

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Cover Story 2 - Driving Ahead in China

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The New Significance of Quality and Branding in China’s Automotive Industry

by STEFAN WEILER

China’s auto sales increased to 23mn last year, growing nearly 7% from 2014 and extending the country’s lead as the world’s biggest car market. But despite a strong increase in Chinese auto sales last year, the domestic market share for Chinese brands continued to shrink, falling to around 38% year-on-year, a 2% decline from the year before – and a steep drop from just over 50% in 2010 according to estimates by the government-backed China Association of Automobile Manufacturers (CAAM).

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Cover Story 3 - Big Data, Leaner Logistics

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Implementing Smart Freight Solutions

by LIANG YANG and JIM FANG

In 2012, overall logistics expenditures in China reached around RMB 9,400bn. In 2013, expenditures rose by 9.3% and reached RMB 10,200bn, which amounted to 18% of China’s gross domestic product, compared to 8.5% of GDP in the US, 13% in India and 11.6% in Brazil. Improving the efficiency of China’s logistics system will be a major challenge, but will also provide great opportunities for profit.

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Cover Story 4 - Mr. Xi Goes to Africa

China and the African Infrastructure Development

by YUN SUN

In the past decade, China has emerged as a major external provider of financing to Africa’s infrastructure development. While the exact volume of such financing remains uncertain, due to the lack of reliable data, the role that Chinese financing has played in the African infrastructure market is widely acknowledged.

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Cover Story 5 - Know Your Audience

Tapping into the Young Drivers' Market in China

by DR. MARCO HECKER and YANN COHEN

The Chinese passenger car market has experienced substantial growth over the past decade, and has surpassed Japan and the US to become the biggest auto market in the world. Despite the slow-down of vehicle sales over the past few months, the importance of the Chinese auto market is expected to continue to grow.

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Cover Story 6 - Faster and Less Predictable

Mr. Thomas Lindy Sørensen on Freight Transportation in China

by CAITLIN WAGGONER

For this special logistics issue, German Chamber Ticker reached out to someone with over 22 years of experience in logistics across Asia: Mr. Thomas Lindy Sørensen, managing director of DB Schenker in North/Central China. Before joining DB Schenker in Korea, Mr. Sørensen worked in different roles in China, Hong Kong, India and Nepal, and was previously president Thailand, Myanmar & Laos and president Korea for Mærsk Line.

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In the Spotlight: China is Changing the World - Interview with Liz Mohn, Vice Chair of the Bertelsmann Stiftung Executive Board

China is Changing the World

Interview with Liz Mohn, Vice Chair of the Bertelsmann Stiftung Executive Board

by SIMONE POHL and OLIVIA HELVADJIAN

Liz Mohn has never been a person who takes a narrow view of the world. Since 1993, when she founded the German Stroke Foundation, Ms. Mohn has been one of the world’s leading players in social responsibility initiatives as well as in business.

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Feature 1 - FTZ Update

PRC State Council Issues Amended Negative List 2015 for FTZs

by DR. ULRIKE GLUECK and ADA TONG

In general, outside of the newly established free trade zones (“FTZs”), foreign investment in China is subject to approval from the Authority of Commerce and registration with the Administration for Industry and Commerce (“AIC”). In contrast, a negative list approach has been adopted for foreign investment in FTZs.

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Feature 2 - Economic Update

Slowdown Fears are Overblown

by MAX J. ZENGLEIN

A slowdown of China’s economy has been widely anticipated. By the end of 2014, key indicators already pointed towards continued sluggishness in 2015. After decades of rapid growth, many observers have grown accustomed to the miraculous growth rates, and expectations are only gradually adjusting to fit the new reality.

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Feature 3 - Up to the Challenge

Developing and Retaining Local Leadership Talents in China

by MARCUS KLAPDOR

Finding and retaining experienced leaders in China has become a true bottleneck – especially for Western companies. While some foreign companies are already using mostly local management in their local operations, there are others which rely heavily on expatriates in management roles.

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Feature 4 - (Passive) Castles in the Air

The Dream versus the Reality of Green Building in China

by NADINE ULRICH


Over the past few years, China has hosted a multitude of conferences, events and public debates about green building, to the extent that you could easily believe that the country was on the verge of becoming a world leader in the area. Whenever foreign companies in the field of planning, testing or construction materials appear in the Middle Kingdom, they face an almost overwhelming number of interested parties, sign multiple MoUs and LoIs, and marvel at the sight of master plans and promotional videos announcing the greenest, most sustainable, most certified, smartest and healthiest cities under construction – not only in first, but particularly in second and third tier cities.

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Feature 5 - Investing in Europe Strengthens China

CEIBS Professor Klaus Meyer on Chinese Investment in Europe

by ANNIKA BEIFUSS

Professor Klaus Meyer is one of the world’s foremost experts on the strategies of multinational companies that are located in or originate from emerging economies. Currently a professor of strategy and international business at China Europe International Business School (CEIBS) in Shanghai and an adjunct professor at Copenhagen Business School, Professor Meyer has also taught at institutions including the University of Bath and the University of Reading in England, the Copenhagen Business School, Hong Kong University of Science and Technology, and the National Cheng-chi University in Taipei.

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More than Business 1 - German Chamber Shanghai Launches CSR Initiative: Deepening Our Roots in Chinese Society

Chairman Mr. Titus von dem Bongart on “More than a Market”

by Olivia Helvadjian

The initiative “More than a Market” will be one of the major focuses of the German Chamber of Commerce Shanghai during the next two years. The German Chamber Ticker spoke to Mr. Titus von dem Bongart, Chairman of the Board of the Shanghai Chamber, to find out what role the Chamber plays and how German companies can become actively engaged in the Chinese society.

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More than Business 2 - Kick-off Event for “More than a Market”

To kick off the new initiative “China - More than a Market,” a leadership roundtable took place on 20th March at the iconic Shanghai club Yongfoo Elite. The initiative is a collaboration between the Bertelsmann Stiftung and the German Chamber of Commerce Shanghai, supported by the German Consulate General in Shanghai.

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More than Business 3 - China’s 1st Handicapped Workshop Opens in Taicang

After almost two years of intense preparation, on 26th March, Taicang Sino-German Handicapped Technology Co., Ltd. officially opened its doors. Since the idea of establishing a handicapped workshop in China was born back in 2013, the project has been progressing constantly with the support of the German Chamber of Commerce.

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