EXCLUSIVE INVITATION TO DEMO THE WORLD 2016 BEIJING

We would love to invite a promising German or European startup on behalf of our friends of a big, successful Chinese property group (Beijing Haidian Property Group Co.), an innovative science park (Zhongguancun) and the Chinese government (Haidian District People’s Government of Beijing Municipality) to participate in a global top competition festival "Demo The World".

WHO: German / European startup in Clean Energy / Environmental Protection

WHY: Interested in the Chinese market now or in future? Your successful first step into the Chinese market: 2x 10.000 USD award, a 6-month incubating program, professional local support, top-level networking.

WHERE: Beijing, China

WHEN: 15.10.2016 – 18.10.2016

(Costs for flights and accommodation are covered)

There will be 12 excellent startups from countries such as the US, Israel, France, South Korea, Singapore out of two clusters: AI and Clean Energy / Environmental Protection Your business should have a strong innovation and market feasibility 250 selected guests will join 10 professional judges (industry experts and investors) will evaluate your 5 min pitch (English or Chinese)

Should you be interested email us at: info@herobakery.com

THANKS!

WHERE ARE THE CAREER OPPORTUNITIES IN CHINA FOR INTERNATIONAL TALENTS?

THE FASTEST-DEVELOPING ECONOMY IN THE WORLD

As the fastest-developing economy in the world, China has an extremely dynamic talent market.

Chinese state-owned corporations are seeking for international business opportunities, whereas multinational companies and growing niche players are attracted by the strong economy, its advantages and the big markets in China.

There are not only opportunities for international talents that can act as a bridge between different markets, but as partners that can provide specialized expertise for a better collaboration and co-creation.

EMPLOYMENT MARKET FOR NON-CHINESE SPEAKERS IN CHINA

Language barriers are a major issue for non-Chinese speakers who want to work in China. It cannot be denied that proficient Mandarin skills will help you get access to more career opportunities, however, more and more opportunities that only require English language abilities are available.

In recent years, companies in China have become more open to international talents, who usually have a good understanding of a specific international market. In the meanwhile, as more Chinese talents are internationally educated, it is easier for foreign talents to communicate in English within an organization.

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IS SHANGHAI THE ONLY CHINESE CITY YOU KNOW?

CHINA IS THE WORLD’S LARGEST ECONOMY BY PURCHASING POWER PARITY AND RAPIDLY DEVELOPING

China is the world’s most populous state as well as the 3rd largest country (by total area) in the world. It has more than 10.000 years’ culture and history and has experienced a long evolution from an agricultural to industrial civilization. It has already become the largest economy by purchasing power parity and the world’s second largest economy by nominal GDP. At the same time, China is playing an essential role in the international affairs. It is one of the five permanent members of the United Nations.

The geographical diversity of China brings up abundant reserves of various natural resources such as coal and iron ore. This capability in combination with its rich labor force makes China become the largest global hub for manufacturing. On the one hand, local factories are utilizing the inherent advantages to produce goods for domestic consumption as well as foreign export. On the other hand, an increasing amount of global manufacturing facilities prefer China as their destination of relocation.

The science and technology sector in China is also burgeoning. The government has created more than 100 Economic and Technological Development Zones throughout the country in order to attract foreign investments and to build up high-tech industries. Up to now, there have been many remarkable achievements in various fields, such as aerospace (the series of “Shenzhou” airships), biomedical science (hybrid rice and artemisinin), nanoscience and high performance computers. Driven by the national strategy to pivot science and technology, higher education has also developed significantly. The total number of international scientific papers of China ranked number two in the world (2015).

China has made great progress in the internet industry as well. The three renowned internet giants, Alibaba, Baidu and Tencent, have been playing vital roles in the fields of e-commerce, search engine and social media worldwide. Meanwhile, numerous entrepreneurs are encouraged to set up their own businesses. Places including Beijing, Nanjing, Shanghai and Guangzhou have become the hotspots for innovative startups.

CHINA IS NOT ONE MARKET, BUT MANY

In terms of the administrative division, China has 34 level-1 administrative areas, including:

  • 23 provinces

  • 5 autonomous regions

  • 4 municipalities

  • 2 special administrative regions

From another dimension, cities in China are divided into six tiers according to their:

  • population

  • economic development

  • consumption level

Especially for Tier 1 and Tier 2 cities, plenty of large state-owned companies and multinational corporations are located, providing numerous job vacancies and economic value.

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WHICH GERMAN CITY IS THE MOST SUITABLE FOR YOU?

Germany, as the largest national economy in Europe and the 4th largest by nominal GDP in the world, provides a highly developed and convenient environment for residents and companies. People in Germany enjoy a high living standard, and a sound social security and health care system. In addition, the university education is highly distinguished while being free of charge at the same time.

Germany is also the 3rd largest exporter worldwide, with many industrial and technological departments ranked at the top of the world. In terms of its automotive industry, several world-famous car brands are born here, including Audi, BMW, Daimler, and Volkswagen. In the meanwhile, Germany is famous for its machinery manufacturing and electronic equipment. Made in Germany has already become a worldwide symbol of quality and reliability.

German cities are very diverse. From traditional industrial bases to booming high-tech hubs, cities in Germany create numerous employment positions for local residents as well as international talents. Have you ever thought about working in one of the cities in Germany? Our HeroBakery team is glad to provide you with a quick overview of key industries and the growing startup ecosystem in the eight major German cities.

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China and Germany - How to collaboratively Innovate?

Small and medium-sized enterprises in China and Germany are getting much closer through various exchange conferences and a series of cooperation. With the supportive political environments of the two countries, complementary labor and non-labor elements can be exchanged easier among entities, benefiting the development of innovation capabilities in both markets.

The 2ND China-Germany SME Conference

On June 6th and 7th, the 2nd China-Germany SME Conference was held in the Sino-German (Jieyang) SME Cooperation Zone in Guangdong province of China. German Industry and Commerce as well as the People’s Government of Guangdong Province jointly hosted this event. The theme of this year’s conference was “The Belt and Road Builds the Future”, which is aligned to the action outline of Sino-German cooperation, aiming to promote the collaborative innovation of Made in China 2025 x Industry 4.0 in order to deepen exchanges and to foster cooperation for mutual benefits and a win-win development for two countries.

The conference included three major exhibitions regarding German advanced techniques and equipment, financial services, and China-Euro cooperative enterprises respectively. Several round-table theme meetings were also held, discussing topics such as opportunities and paths to the Sino-German Cooperation in environmental protection.

During the conference, 184 SMEs from Germany, France, Spain, Austria, Czech Republic and over 230 Chinese companies communicated with each other to seeking synergy opportunities. Upon the end, they successfully signed 30 cooperation contracts, 30 letters of intents, and 208 minutes of cooperation talks covering among others the fields of technology, sanitation, energy, environmental protection, finance and human resources.

Reasons for Chinese and German SMEs to Seek Cooperation

Increasing SMEs cooperation is the inevitable tendency under the political environments of both countries.

The strategy “Made in China 2025” emphasizes the innovation-driven, talent-oriented, quality-focused and structure-optimized industrial reform of China. Germany, as the top 1 European country that has invested the most into China and made most of the technology transfer to China, is able to provide Chinese companies with advanced technologies and valuable management expertise. Through such kind of Sino-German exchange conferences, more and more outstanding German enterprises are invited to China and have a close exchange with Chinese firms. In this way, SMEs in China could learn from the German manufacturing industry to improve their own innovation capabilities.

Industry 4.0 as proposed by the German government, similarly, expects to further develop Germany’s innovative edge in new technologies and production cycles. China, as the second largest economic entity in the world, as well as the second largest export market for Germany outside of Europe, has a unique strategic position for German companies. Cooperating with Chinese firms means larger market opportunities and more potential customers. With the Chinese market as its backup, Germany could also increase its control and dominance over the global manufacturing value chain.

The Role SMEs are Playing in Sino-German Business

Small and medium-sized enterprises are collectively strong but individually rather weak. Their products or services are usually of single variety, their management style is comparatively simple, and they tend to have a shortage of highly-qualified talents with the right fit. All these factors determine their relatively disadvantageous position in the market competition. Nevertheless, SMEs account for a significant proportion in the Sino-German businesses. We can see that SMEs in Germany and China are seeking more cooperation on different projects, creating numerous job opportunities, accelerating capital circulation and livening up the entire business environment. Complementary resources, technologies and talents are exchangeable among entities and the two markets overall, contributing to the flourishment of both sides.

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IN 35 MINUTES FROM MUNICH TO BERLIN

The HeroBakery team has joined the presentation of the WARR Hyperloop project and is very excited about its vision and entrepreneurial mindset of the German Hyperloop Team.

WATCH HERE YouTube

Hyperloop is a cutting edge mobility vision with the concept to create a low pressure tube for the transportation pod, developed by Elon Musk, the founder of Tesla and SpaceX. This invention can significantly reduce the air resistance within the tube. Therefore, the transportation pod is able to move faster (up to 1200 km/h) with less energy consumption ideally.

Attracted by this energy efficient technology concept, the WARR Hyperloop Team, that consists of 38 students from the Technical University of Munich, participated in the SpaceX Hyperloop Pod Competition. Their team stood out from the 700 teams all over the world and became one of only two European teams in the final round.

Their design concept is to use a compressor to suck away the remaining air in front of the pod in order to reduce the pod’s drag to a minimum inside the low pressure tube. And they have already started building the pod on the TUM campus at Garching Forschungszentrum. At the current stage, however, support is still needed to cover the costs for further construction of the pod, vacuum tests in Germany, and the pod transportation to California.

As the only German team in the final round, students at the WARR Hyperloop Team work totally voluntarily. Their interests come from the idea of highly energy efficient technology as well as the pursuit of a sustainable future. We highly admire their enthusiasm and spirit. If you are interested to support their goal to create the first promising Hyperloop concept in the world and to win the competition, visit their campaign here: WARR Hyperloop Team - SpaceX Pod Competition

WANT TO RECEIVE FIRST-HAND INSIGHTS ABOUT CHINA & GERMANY? SIGN UP NOW!

MUNICH EVENT “How To Start Up Your Own Business In Munich”

Hi friends, YOU ARE INVITED to our next information & networking session “How To Start Up Your Own Business In Munich”!

  • Wednesday | 04.05.2016 19:30 - 20:45

  • HeroBakery GmbH Königinstraße 11A RGB 80539 Munich Germany

Don't miss this opportunity and get your free ticket here: https://lnkd.in/edBA27K Our team is looking forward to meet you there!

TOP 3 REASONS GERMANY ATTRACTS CHINESE TALENT

Germany, the economic powerhouse in Europe, is now attracting more and more qualified Chinese to work in Germany.

1 GROWING ECONOMICAL RELATIONSHIP

The “New Silk Road”, an ambitious plan envisioned by Chinese President Xi Jinping, represents China’s visions for an interdependent economic and political community stretching from East Asia to Western Europe. China nowadays is eager to transform itself from a low-tech manufacturing powerhouse into a world center of innovation. Modern Technology is needed to help China solve its environmental challenges and to compete in high-end manufacturing in the global markets. Germany, an important pillar in the West of the “New Silk Road”, can support with its expertise in the field of innovative technologies. “German business values China not just as our most important trade partner outside of Europe but also as a partner in developing sophisticated technologies,” German Chancellor Angela Merkel said during the CeBIT technology show 2015 in Hannover.

The number of Chinese companies is increasing in Germany. Over 2,000 Chinese companies are running businesses in Germany. In the first quarter of 2015, Chinese direct investments in Germany have been amounted to 210m USDs. In order to strengthen competitive advantages, more and more Chinese-German joint ventures aim to recruit Chinese employees with a superior degree, foreign language skills (English, German) and international working experiences.

2 HIGH DEMAND IN THE GERMAN JOB MARKETS

At present Germany has one of the lowest unemployment rates (4,7%) in the EU. And there is likely a huge labor demand for non-EU citizens in Germany upcoming. A study by the Bertelsmann Institute points out the forthcoming retirement trend of the baby boom generation – it will lead to an insufficiency of labor in Germany. The future EU internal migration to Germany is expected to be around 70,000 people every year, however, 500.000 immigrants are needed annually to maintain the work force in Germany. Therefore, a majority of qualified employees will be probably sourced from outside of the EU.

This trend can be very attractive for Chinese people. There is a high demand especially for qualified engineers (mechanical, automotive, electrical and building), scientists, mathematicians, IT specialists and hospital doctors / general practitioners. With a progressive demographic ageing, opportunities in the geriatric, health and nursing industries will emerge.

3 SUPPORT FROM THE GERMAN GOVERNMENT

The “Blaue Karte EU”, also known as the “Blue Card”, was launched in Germany in August 2012. The Blue Card is a simplified work permit for up to four years. To acquire the Blue Card, you have to provide evidence of your qualifications and a concrete job offer that provides annual gross earnings of at least 46,400 Euros. In so-called shortage occupations (scientists, mathematicians, engineers, doctors and IT specialists), a minimum salary of 36,192 euros is required.

A new policy also allows foreign job seekers to stay in Germany for up to six months. Those who can find a job that meets the minimum salary requirements can stay for three years. Employees who demonstrate a good knowledge of German language skills can also extend their stay by two years. If the cardholder should maintain a lasting relationship with a company, the employee can seek for a permanent residency in Germany.

Besides the 3 key reasons mentioned above, German working culture is well known for its emphasis on work-life balance. Many corporates in Germany have only a 35-40 hours workweek (mandated by the German law) and employees can take holidays for around four weeks per year. Not to mention that Germany has an amazing landscape and lifestyle – livable cities from Berlin to Munich, the German Ocean in the North and the Alps in the South…Servus!

ALIBABA, HAIER, TSINGTAO WHO?

I ALIBABA | the Chinese e-commerce giant: market value of $211 billion (exceeds Amazon’s)

II HAIER | the world’s N°1 Major Aplliances manufacturer

III TSINGTAO BREWERY | one of the world’s largest breweries, selling in more than 60 countries worldwide

Alibaba, Haier and Tsingtao are well known in every single household in China, but you might be surprised only a few Germans can name these Chinese brands.

The international competitiveness of Chinese companies has increased rapidly since the 1990s – China has overtaken Germany as the world’s top exporter since 2009. But why are so many big Chinese brands unknown by German people? A study conducted by Huawei in 2014 has identified three main reasons:

1 POORLY DEVELOPED MARKETING STRATEGIES

Beginning in the early 1950s economic planning was introduced in China – most of the Chinese companies were state-owned and therefore underdeveloped in proper marketing strategies. In 1978, China started to return to a more market-oriented economy. Traditionally, Chinese companies have been focusing on low-cost manufacturing, paying little attention to intangibles such as brand.

2 INTERNATIONAL DIVISION OF LABOR

Chinese companies are often integrated into the value chain of foreign companies as OEMs (Original Equipment Manufacturers). Many are supplying B2B products that are sold under the brand names of foreign companies. As a result, Chinese companies have a low consumer brand presence in foreign markets.

3 RELATIVELY POOR COUNTRY IMAGE OF CHINA

Although nowadays there is a wide range of high-quality Chinese products available in the global markets, many Germans still associate Chinese consumer goods with simple, low-tech and cheap products. The relatively poor brand image of Chinese consumer products may be influenced by the image of its country of origin.

FUTURE DEVELOPMENT OF CHINESE BRANDS

China nowadays produces about 80% of the world’s air-conditioners, 70% of its mobile phones and 60% of its shoes. China makes almost half the world’s goods. However, the manufacturing cost is increasing and the factories are moving out from China.

The Chinese government is now encouraging the global expansion of Chinese companies to turn China’s image from a low-cost manufacturing country into a center of innovation. According to the ‘Made in China 2025’ strategy, China will seek innovation-driven development, apply smart technologies, strengthen foundations, pursue green development and redouble its efforts to upgrade China from a manufacturer of quantity to one of quality.

A recent study “Chinese Champions” by the Munich Technical University states: “Chinese companies are growing more self-confident and are intensively pursuing the goal of establishing their brands in other countries”. Chinese firms have already been producing high-tech products that meet the highest standards (e.g. Comac, which designs and builds large passenger aircrafts with a capacity of over 150 passengers to compete with Boeing and Airbus).

“If a country has no global brand, it can’t be on top,” says Zhang Ruimin, the 66-year-old CEO of Haier. Chinese companies should attempt to position themselves as global brands or multinational companies. If Chinese brands want to be outstanding in the global markets, they need to invest more on their brand image and global marketing strategies. Establishing a good brand image does not simply rely on offering high-quality products, but also developing a deep understanding of the target markets.

There is also a wide range of new developments regarding the brand image and level of recognition of Chinese companies. Relatively few Chinese companies are known by their names or brands in Germany until now.

On the contrary, there is a growing number of ambitious Chinese companies that are ready to gain recognition and to achieve success in Germany and worldwide, with a combination of high quality, innovative products, good service and an attractive price-performance ratio. It is indeed a very exciting global trend that will shape our future!

HOW CAN CHINESE FOOTBALL LEARN FROM GERMANY?

One year ago, Germany won its fourth World Cup title. What can China learn from Germany? Since Chinese president Xi Jinping announced his passion for football earlier this year, China has been facing reforms in order to achieve its dreams (qualify for the world cup, host the world cup and finally win the world cup). Xi himself played on his school team as a youngster and had always learnt at an early age how important it is to build up the love of the sport. In responses, the education officials announced the education of Chinese youth about football by sending textbooks and building up new soccer fields. With the help of foreign coaches and methods, Xi dreams about achieving his dreams one day.

Recently, the attractiveness of the Chinese market became apparent to most of the top teams in Europe. Several sponsorships valued millions were established for the next decade. Even A.C. Milan, one of the most successful clubs in Europe is about to be sold to Chinese investors. It is not only a profitable business for both sides, it also helps to promote football in China, to inspire the people and finally to infect the youth with football fever. Several European oldies even signed up for Chinese teams to support the Chinese Super League. Top stars such as Drogba and Anelka for example have increased the attractiveness of the sport. In addition, experienced coaches like former Italian national manager Lippi and former England manager Eriksson are helping to develop the quality of Chinese football. However, the remaining huge gap between the quality of European and Asian teams could be seen during the match in the semi finals at the Club World Cup, Bayern Munich against Guangzhou Evergrande.

“11 out of 1.3 Billion” is the title of the first documentary about football in China. It simply underlines the question about why such a great nation of over 1.3 billion people cannot manage to form a competitive football team. (In comparison, Costa Rica with its four million population made it to the quarterfinals at the last World Cup in Brazil – four million people is one fourth of Beijing.) Japan and South Korea for instance, are examples in East Asia of successful football education. Numerous players from these two countries are well trained and have contracts in many European teams.

But why does China struggle so hard in football? The 82nd place on the FIFA world ranking is in any case not a place to be satisfied with, especially not for a nation like China, which is always striving to be the best. There are three major challenges that inhibit China’s development of football:

LACKING POPULARITY BY THE PEOPLE

Other sports like basketball, table tennis or badminton, without argument, are far more popular to the Chinese currently. In particular, less space is needed, relatively inexpensive equipment and the success of the Chinese national team for many years at the Olympics made table tennis and badminton very popular. Basketball on the other side is a phenomenon. How did a nation with smaller people become so crazy about basketball? It is obvious because of Yao Ming, a home-grown star who became successful in the US NBA as the first Chinese player. It reflects that China is strongly influenced by stars with whom they can identify with and be proud of. Youngsters prefer to play one of the more popular sports rather than football, so a football culture hasn’t developed through the generations. Therefore, the challenge is to support and educate young talents in football as early as possible in order to create a home-grown star, who represents the nation in one of the top leagues in Europe and finally also at World Cup. The challenge is to build up a certain passion for football, which can be done through the media (in recent years the live broadcasting of European top matches in China improved a lot) and also through own experiences in order to fascinate the people.

UNSUSTAINABLE YOUTH SUPPORT AND SCOUTING

The scouting network of all the big clubs is nowadays essential to create sustainable success. Football academies for players starting from age 15 belong to a standard facility for many clubs in Europe. Not only the education in football is supported but the academic skills as well. In this case, a player that might not be successful in his football career can still have the opportunity to succeed in society with a regular job. One problem in China is the one-child-policy. Parents do not want the children to “waste” their time with other activities rather than studying. Furthermore, if a player is not able to succeed in playing football, in most of the Asian societies he or she has less a lower to succeed in a regular job because the player invested everything in football and not in academic education. The support for young players to develop both academic and football skills to a certain level are crucial for sustainable success. It will also encourage talented players to work hard and believe in becoming a professional player without being afraid of failing in society. The challenge is to build up facilities, which support the youth in their future career in football and a possible career with another job. In 2012, Guangzhou Evergrande already started to build up the biggest football youth academy in the world. Right now with 50 pitches and 2400 students the academy has all the requirements to develop a generation of successful football players. By 2017, the plan is that 20,000 schools will have received new football pitches and training facilities, which it is hoped will create 100,000 new players. The discussion about integrating sport scholars for universities to improve the university football teams is another approach and follows the American system to support young professional athletes. Consequently in 2016, the sport will become an option in the national university entrance exam. All in all, becoming a challenging football nation starts with early youth support. Especially, the focus on the sustainability needs to be aimed at the future.

LACKING METHODS AND LEADERS

Another issue is the knowledge of football itself. Training methods, strategic systems and mental training need to be developed with the help of foreign coaches and experts. As Chinese reformer Deng Xiaoping already established corporations with western universities in order to let Chinese students to learn from the top nations about economics and capitalism. The same path can be taken, for example, to develop football in China. The development of current World Cup winner Germany can be seen as systematic and successful work for more than ten years at least. After the disaster of the German national team during the European Cup in 2004, Germany quickly realized that the glorious team, who went to the final during the World Cup in 2002, aged and needed change. The structural reforms were implemented within the whole German football association. With the long success of German football, it was relatively not a very hard job to work on discovering new talents in order to form a new generation of champions. The so-called many “DFB-Stützpunkte” were established in every district, region and state in Germany to scout talents effectively. Talented players were developed further in one of the professional clubs of the German Bundesliga. The success of several youth national teams in World and European Cup proved, that the right methods were implemented. The golden generation brought German football clubs international success and steady participation in all final rounds of all international tournaments in recent years. Winning the World Cup in Brazil last year was the high point of the successful transformation of German football. To guarantee and improve their sustainable work further, the DFB recently published their plans to build up the “DFB Academy” in Frankfurt with all major facilities including a medical health centre, accommodation and several indoor and outdoor sport fields. This will also be the ideal platform for exchanging knowhow of football experts in order to innovate methods and improve football. China needs to use Germany as an example. Of course, the development in China will take much longer than in Germany but China’s goals are much lower as well. Structural methods, systematic development of the youth and learning from the best coaches of the world are the challenges for China. The past showed that the potential within the Chinese people exist. Already in the 1990s, the first Chinese player called Gu Guangming played in the German 2nd Bundesliga. Several Chinese players from the World Cup team in 2002 followed into European teams as well. However, after these few succeeded, there have not been further players to make it to Europe since. Leaders of the Chinese national team need to figure out the problems and re-educated the new generations of talented football players.

At last to summarize, the Chinese football association needs to reform their structure using the “German” model. Despite the numerous gold medal winners during the Olympic games, building up an international competitive team in football is way more difficult than drilling a single athlete. There is more than hard work to succeed in football. Passion, talent and the support of the whole nation are the base for a sustainable football nation. Former German manager Vogts calls China a “sleeping giant” who needs to develop native players in order to let the nation identify with them. Old stars from Europe would help to increase the popularity of the sport itself, but not more. The German motto “One nation, one team” was the key to success during the World Cup in Brazil. That is what China has to aim for in the next decades.

ABOUT THE AUTHOR
HONG

HeroBakery Ambassador

RWTH Aachen, Mechanical Engineering and Management | Hong loves all about football. Growing up in Germany, he was one of the very few Chinese football players in his region. He would like to promote football to the Chinese youth to share his passion | Contact: hongwa.poon@gmail.com

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CAN YOU ADAPT TO A DIFFERENT WORKPLACE CULTURE IN CHINA AND GERMANY?

The economic ties between China and Germany are stronger than ever before. Increasing Chinese-German collaboration as well as the globalization are leading to a more international working environment, intensifying intercultural exchange in both countries.

A five years research by Steelcase has identified six dimensions of workplace culture that shape the social dynamics of an office space. We have taken a closer look to the Chinese and German part.

WORKPLACE CULTURE IN CHINA – GERMANY | SIX DIMENSIONS

1 AUTOCRATIC | CONSULTATIVE

CHI | Many traditional companies in China are hierarchical. Privilege and respect are subject to rank. Most Chinese employees follow guidance from their managers and carefully express their opinions.

GER | Many Germans like leaders who are open to debate. German employees expect clear direction from the top, but also opportunities to discuss alternatives. Leaders are willing to accept this, because they rely on employees to provide information and ideas that lead to better decision making based on facts.

2 INDIVIDUALIST | COLLECTIVIST

CHI | Developing relationships, so-called “guanxi”, is still very important to many businesses in China. It can be associated with the traditional collective nature of its culture. Trust is very personal and earned. Hence cooperative relationships exist more within departments, but interdepartmental cooperation may be very low or nonexistent.

GER | Many Germans prefer to have more personal space and some distance from others. They stress on personal achievements and individual opinions. They tend to have loose relationship with others.

3 MASCULINE | FEMININE

CHI | China is a success-driven culture. Many Chinese often sacrifice family and leisure time to work. Strength is represented by decisiveness and achievement. Competition between departments is more than among individuals.

GER | Germany is the most competitive culture among European nations, a masculine culture with strong feminine undertones. Earning a good salary is as important as having high quality of life.

4 UNCERTAINTY TOLERANT | SECURITY ORIENTED

CHI | Many Chinese are tolerant of uncertainty and ambiguity. This serves them well in the dynamics of today’s economy. They can be flexible to suit situations.

GER | Many Germans avoid uncertainty by strict punctuality and a disciplined approach to every task. They tend to standardize everything with great details. However this doesn’t stop innovation in German businesses. It simply means they’re cautious throughout the process, minimizing risk by building on knowledge and thorough analysis.

5 SHORT-TERM ORIENTED | LONG-TERM ORIENTED

CHI | Persistence and perseverance are common in China. People tend to invest in long-term projects. Doing business in China is about putting in the time to learn about your clients, building relationships and developing personal trust.

GER | Germans like good time management. They know what they will be doing at a specific time on a specific day.

6 LOW CONTEXT | HIGH CONTEXT

CHI | Traditional Chinese culture is high context. Language is full of ambiguity. It is considered impolite to say “no,” even if you disagree. People rely on unspoken signals for meanings. It is often necessary to read between the lines. Therefore, videoconferencing is more effective for distance business communication than e.g. a phone call.

GER | Although many Germans highly value time and space of a meeting, in other areas, German culture is low context. Common experiences always act as the basis for communication. Providing as many details as possible is considered a good way to build understanding. Little time is spent for building deep relationships with colleagues or business partners. What gets communicated is far more important than how it’s communicated.

HEROBAKERY | CHINAGERMANY 2020

The above research was released in 2013. We at HeroBakery are experiencing that the workplace culture, especially in Chinese Tier 1 cities are changing and developing. International educated graduates, young professionals and entrepreneurs with Western working experiences are shaping the workplace culture and creating a new management style in many spaces in China.

This megatrend is super exciting and will influence the next generation of young global leaders from and in China – Germany.

Want more details and insights about China and Germany? Apply to join today!

AIIB, THE GOLDEN OPPORTUNITY FOR CHINA AND GERMANY

WHAT IS “AIIB”?

The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by the Chinese government. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region. Some experts see the AIIB as a rival for the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB), which developed countries such as the US are currently considering dominant. The United Nations has called the launch of the AIIB as “scaling up financing for sustainable development” for the concern of Global Economic Governance. The AIIB has $100 billion registered capital and its headquarters will be located in Beijing, China.

ADDING THE RMB TO THE SPECIAL DRAWING RIGHT (SDR) CURRENCY BASKET BASED ON EXISTING CRITERIA IS STRONGLY SUPPORTED BY GERMANY!

Special drawing rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by the IMF. There are several areas the AIIB can contribute to. The first is the relief of the RMB deflation by shifting the excess capacity outside China. Then, the establishment itself can bring other countries to China’s side in order to lower the risks of being financially isolated. Moreover, it can accelerate the process of making the RMB a worldwide used currency.

On 19th March 2015, the Ministry of Finance of the People’s Republic of China announced the 21 consensuses from the first China-Germany High Level Financial Dialogue. According to their agreement, China and Germany noted that the IMF would conduct the review of the SDR basket this year. Both agreed that the SDR basket composition should continue to reflect the changing role of currencies in the global trading and financial system. As one of the twenty-one agreements from the first China-Germany High Level Financial Dialogue, the German side supported China’s wish to add the RMB to the SDR currency basket based on existing criteria.

OPPORTUNITIES FOR GERMANY!

If the European central bank plans to hold the RMB as a significant part of its reserves, it will need much better access to Chinese assets. The supporting action from the German government will surely broaden the access and will provide German firms with a larger business platform regarding financial services, foreign trade and so on.

Also, as the AIIB is an international organization, it will set up its regional headquarters also in European countries. This will give Germany opportunities to compete with other European countries in order to become one of the leading countries in the AIIB. The AIIB will not only have positive impacts on trade relations between China and Germany, but also on cross border trade in Asia. Another positive effect of the AIIB is the acceleration of the pace of infrastructure construction in Asia and Germany, since Germany as a developed country with better infrastructure can provide its expertise for Asian countries. Infrastructure companies have the chance to seize this golden opportunity.

What impact will come along with the AIIB? And what opportunities will it bring to us as individuals? The HeroBakery team is continuously following the Chinese & German markets. SIGN UP free now for YOUR ChinaGermany opportunity and more insights!

ABOUT THE AUTHOR
ZEHAO

HeroBakery Ambassador

University of Liverpool Economics | Zehao is a Chinese students who has a passion for the ChinaGermany communication. He enjoys swimming, Ping-Pong and music | Contact: zehaodong@gmail.com

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LIBERALIZATION OF CHINA’S FINANCIAL SECTOR AND THE RMB

With a Compound Annual Growth Rate (CAGR) of 8.6% from 2009-2014 China has continued its economic success story. However, China’s economic growth rates have been declining since 2010, showing the country’s shift from a pure growth-driven orientation to a more sustainable approach. By providing incentives for industries in the fields of energy, environment and health care, for example, necessary steps are taken in order to achieve real progress.

In contrast to Western countries, China’s financial sector is still relatively restricted with regards to the free convertibility and trade of the RMB. But first of all,

WHAT IS RMB?

The Rénmínbì (人民币“people’s currency”) is the official name of China’s currency. On the other hand, the 元 | Yuan is the actual unit (equivalent to € | Euro or $ | Dollar), which is used in every normal Chinese conversation.

What actions has the Chinese government taken to liberalize its capital markets? We can see two attempts:

#1 LIBERALIZATION OF THE CURRENCY

In 2015 it is expected that approximately one quarter of China’s cross-border trade will be processed in RMB, which would imply an increase of more than 100% since 2012. Moreover, slightly more than 2% of the global payment transactions are processed in RMB. At a first glance this number seems to be small, especially in relation to the Euro (around 28%) and the US-Dollar (around 45%). However, the RMB now belongs to the top 5 of the global currencies. Moreover, the offshore RMB market is rapidly expanding. In November 2014 the Bank of China started to perform the clearing in Frankfurt am Main, Germany. All major banks are connected to the clearing bank, thereby enabling their clients to process intraday payment transactions in RMB. It is likely that the Chinese government will continue with this approach to boost the worldwide importance and usage of the RMB.

#2 ESTABLISHMENT OF FREE TRADE ZONES (FTZ)

The first four special economic zones in China were opened in 1979. Ever since several other FTZ have been founded. In October 2013 the Shanghai Pilot Free Trade Zone (SPFTZ) opened, marking a new endeavor to liberalize China’s capital market. The SPFTZ is a blueprint whose new guidelines and impacts, if positive and successful, could be rolled out across the entire country. However, the level of euphoria and optimism that came along with the announcement and start of the SPFTZ quickly declined as only very few foreign companies settled down in the zone during the first months. Nevertheless, it is too early to make a final judgment about the failure or success of the SPFTZ. In Q4 2014 the share of foreign invested companies registered in the SPFTZ, in relation to the domestic ones, has slightly increased. To turn the SPFTZ into a success reform progress has to be genuinely accelerated.

WHO WILL BE AFFECTED?

The increasing importance of the RMB has some major impacts on the “wallet” of foreigners living in China. Expats who still have classic expatriate contracts and are therefore paid in Euro or US-Dollar, tourists, and exchange students had to accept the appreciation of the RMB in relation to their home currency. Thinking back to end of 2009 when one Euro was worth more than ten Yuan, living in China was relatively cheap for most foreigners. Buying a drink at M1NT, one of Shanghai’s high-end nightclubs, was easily affordable for exchange students. However, in context of China’s ambition to liberalize its financial sector, it turns out that the real value of the RMB with regards to other currencies is much higher. A Euro to RMB exchange rate of four to one is not an unlikely scenario for the near future.

SHOULD FOREIGNERS PREPARE FOR A MORE EXPENSIVE CHINA IN THE UPCOMING YEARS?

The HeroBakery team and community with experts and insiders will keep on tracking this dynamic development!

#CurrencyWar #AIIB #NewNormal

MADE IN CHINA 2025 X INDUSTRY 4.0

March 5th 2015: China’s National People’s Congress in Beijing. 3000 members came from across China to meet and to vote for legislation. Results:

CHINESE ECONOMY IS AIMING FOR A SLOWER BUT STABLE GROWTH!

“The Chinese government aims to keep the economic growth at 7% (7.5% in 2014) and inflation at 3% (3.5% in 2014)” said Chinese premier Li Keqiang.

WHAT IS “MADE IN CHINA 2025?”

A new vision was proposed at the congress, and it is a strategy to integrate internet & industrialization. This strategy refers to the plan of building up a “smart manufacturing” industry. More innovations and “smart technologies” such as mobile internet, cloud computing & big data will be integrated to boost the quality of Chinese manufacturing. Although the plan is still at a planning stage, the Chinese government is convinced that China will exceed Germany and Japan in manufacturing in 2035 at the latest.

HOW WILL GERMANY BE INFLUENCED?

In order to learn from the German industrial pattern, Chinese premier Li Keqiang & German chancellor Angela Merkel agreed on a in-depth cooperation in the “Industry 4.0.” Meanwhile, the “Sino-German Cooperation In The Platform For Action” had been announced. It includes detailed specification of innovation-driven cooperation between the two countries and designates a landmark of the Sino-German relations.

The “Made in China 2025” strategy in China is the counterpart to “Industry 4.0” in Germany. In order to succeed in “Industry 4.0,” Germany needs a globalized value chain, and “Made in China 2025” provides both big challenges & opportunities for German companies. Cooperation with each other would lift both into higher tiers of the global manufacturing industry!

THE SINO-GERMAN RELATIONS, DRIVEN BY INDUSTRIAL DEVELOPMENT ARE SPEEDING UP ALONG THE FAST TRACK!

ABOUT THE AUTHOR
Di_Xu

HeroBakery Ambassador

UCL Economics and Statistics | Di is a cheerful girl who shows a lot of enthusiasm and passion for her studies as well as her personal life (traveling, music & reading) | Contact: dixu1214@gmail.com

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CHINAGERMANY TODAY & TOMORROW

How can we ensure sustainable growth and prosperity for a world that is livable and lovable for our generation & for our children?

HeroBakery is thinking about 5 BIG questions

1 SOCIETY

“Who is Germany?“

2 VALUE CREATION

“How is value created in Germany?“

3 SME | HIDDEN CHAMPIONS

“How will German companies | especially the German Mittelstand develop?“

4 INFRASTRUCTURE

“How will Germany move data | people & goods?“

5 GERMANY’S PARTNERSHIP WITH CHINA AND ITS POSITION IN THE WORLD

“In which world will we be living?”

HeroBakery Think Tank is curious about these 5 areas | that are drivers for growth and prosperity & 5 key challenges that will have a big impact on ChinaGermany today & tomorrow!

DO CHINESE LIKE EATING SALAD, BREAD & CHEESE?

AND DO CHINESE PEOPLE ACTUALLY EAT RICE EVERY DAY?

AND WHY DO CHINESE ALWAYS LIKE TO SHARE THEIR FOOD?

Have you ever got confused while having lunch with Chinese or German colleagues | friends before

CHECK OUT OUR VIDEO “HOW TO EAT LUNCH WITH CHINESE & GERMANS”!

Play on YOUKU

#FOOD FEEDS THE #SOUL

To the extent that we all eat food and we all have souls,

FOOD IS ONE GREAT UNIFIER ACROSS CULTURES!

But what feeds your soul?

Our comfort food preferences are personally and also culturally meaningful. Our comfort foods map who we are, where we come from and what happened to us along the way.

WHAT YOU WANT TO COOK & EAT IS AN ACCUMULATION, A FUNCTION OF YOUR EXPERIENCES, THE PEOPLE YOU’VE DATED, WHAT YOU’VE LEARNED, WHERE YOU’VE GONE!

There may be inbound elements from other cultures but you’ll always eat things that mean something to you!

#FOOD AS #IDENTITY

Chinese & German cuisines each comprise dozens of distinct regional foods. Every single culture uses food as part of their celebrations. The celebratory nature of food is universal! Every season, every harvest & every holiday has its own food.

WATCH HERE YOUKU YouTube