www.osec.ch

Seminar

How to manage your China business successfully Block Block Block Block

1: 2: 3: 4:

Management Principles Risk Management Finance Management Legal aspects

Zurich, November 28, 2003

Eine gemeinsame Veranstaltung von Osec Business Network Switzerland und Unipec

Kooperationspartner:

How to manage your China business successfully

Structure of the seminar Block 1: Management Principles

Topic The management of your China business starts with the choice of the right managers and the installation of the right structure. Due to the geographic and cultural distance between Switzerland and China, only a healthy check and balance within the management can ensure a long-term stability and continuity, while only a local staff with enough power and self-reliance will enable an aggressive and flexible business in the fierce competition in China. Speaker Mr. Heinz Bachmann, Chairman of the Swiss Textile Machinery Association and Santex Ltd., former President & CEO of Saurer Textile Systems Group, guided one of the most successful engagements of Swiss companies in China during his tenure with Saurer. With a minimal investment in 1997, Saurer has built up a very competitive and profitable business in Suzhou. Now Saurer has a highly professional and profitable organisation in China. Mr. Bachmann will share his view and experience on how to guide the management to build a competitive and stable China operation at the Chinese cost level while producing top quality.

Block 2: Risk Management

Topic Many companies have complained about suffering massive losses of know how, a heavy turn over of the staff, pitfalls with authorities and tax bureaus, instability due to repeated collapses as well as irregularities and corporate corruption. Account receivables in China remain unpaid and undetected while the management reports profits for several years. Side business of the management siphons off the assets of the investors. Many contracts remain unfulfilled. How making the risks manageable and controllable determines the life and death of a company in China. Speaker Mr. Jianhe Mao, a businessman and consultant based in St.Gallen mainly active between China and Europe, turned around a sizeable number of ailing Chinese operations of European companies. He also successfully built up different businesses for his clients and on his own. He made acquaintance with many failures of what European company might suffer caused by mismanagement. Mr. Mao will summarise his cases, analyse the different risks and propose several ways of how to build up a functioning risk management mechanism.

Block 3: Finance Management

Topic How can you introduce a healthy controlling system within the Chinese cultural environment? How can you value a certified balance sheet by an internationally reputable auditor of a Chinese company? What are the typical problems with finance management that a European company will face in China? There seem to be many answers to these never ending questions, but many companies have made their own painful experiences and have been surprised by many seemingly illogic regulations and actions of the accounting staff. Speaker Mr. Ying Wang, a Chinese citizen, educated in Germany in the 80ties, worked for Ciba-Geigy and Holderbank as controller for Asian operations. For seven years, he has worked as CFO and Deputy General Manager of Siemens Cerberus in Beijing gaining a profound first hand experience on how to manage a company in China, with focus on finance and controlling. Mr. Wang will present his experience with finance management in China, making rules and regulation more understandable. Moreover, he will analyse the background of differences compared to Europe and show potential dangers with finance management in China.

How to manage your China business successfully

Block 4: Legal aspects

Topic Have you a reliable contract with your general manager? Have you protected your intellectual properties effectively within labour contracts with your staff? How safe is your company protected against liabilities arisen by unauthorised staff? The more your firm is committed to China and exposed to risks, the more legal questions arise. Speaker one Mr. Fei Ning, managing partner at Haiwen & Partners Shanghai Office, has solved many cases for Chinese and international companies, including Swiss companies, during his 10 years legal practice in China. He is one of the most competent and experienced lawyers with regard to the legal, economic and cultural environment in China. Speaker two Dr. Michael Werner, a lawyer based in St.Gallen, lived and studied in Hong Kong between 2000 and 2001. He focuses on international trade and contracting with regard to China, feasible legal protection of business interests in China as well as on co-ordination of consultant support by local partners for SMEs. Mr. Fei and Dr. Werner have collected and studied many cases and will show typical deficits in the legal protective framework faced by an European company operating in China.

Seminar program 09.00

Introduction

09.15

Management philosophy and key success factors Choice of the management

Heinz Bachmann moderated by Jianhe Mao

10.00

Discussion with Mr. Bachmann

moderated by Jianhe Mao

10.30

Coffee Break

10.45

Risk management

Jianhe Mao moderated by Heinz Bachmann

11.30

Discussion with Mr. Mao

moderated by Heinz Bachmann

12.00

Lunch Break

13.30

Finance management in China

Wang Ying moderated by Jianhe Mao

14.15

Discussion with Mr. Wang

moderated by Jianhe Mao

14.45

Coffee Break

15.00

Legal aspects

15.45

Discussion with Mr. Fei Ning and Dr. Werner

16.15

Final Discussion

Moderator Jianhe Mao

Fei Ning and Michael Werner moderated by Michael Werner moderated by Jianhe Mao

How to manage your China business successfully

Information for participants Language

German (Block 4: English) – participants' questions and statements may be in German or English

Venue

Osec Business Network Switzerland Stampfenbachstrasse 85, 8035 Zürich Phone 01 365 51 51 Fax: 01 365 52 21

Hotel Room

We will gladly book a hotel room for you at about CHF 180.–, please tick registration form.

Information

Rolf Lüthi, Osec Business Network Switzerland Phone 01 365 53 54, e-mail: [email protected]

Registration

Sylvia Zbinden, Osec Business Network Switzerland Phone 01 365 53 33, e-mail: [email protected]

Participation fee

Members Osec and Swiss-Chinese Chamber of Commerce CHF 780.– Non-members: CHF 920.– (Incl. refreshments, documentation and lunch. The price is VAT-free.) Cancellations: If we receive notice of your withdrawal up to two weeks before the event 10 % will be charged, and later (i.e. from 13 days to 1 day before the event) 50 %. If we are not informed we regret that we are unable to refund any fees. Substitutes are welcome at no extra charge.

Please send to: Or by fax: Or by e-mail:

Osec Business Network Switzerland, Sylvia Zbinden, P.O. Box 492, 8035 Zurich 01 365 52 21 [email protected]

Registration form Seminar «How to manage your China business successfully» Zurich, November 28, 2003

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How to manage your China business successfully

Zurich, November 28, 2003

Profiles of the speakers and moderators Heinz Bachmann Chairman Swiss Textile Machinery Association (Swissmem) Chairman of Santex Ltd. Born in 1942, Heinz Bachmann graduated in textile engineering at Reutlingen, Germany. Heinz Bachmann started his career in the textile industry in Cape Town South Africa for Wellington Industries Ltd. in 1967 and returned to Europe as managing director of the Lauffenmühle Group eight years later. He joined Rieter Ltd. as member of the Group's Management in 1981, responsible for sales, marketing, service, research and development worldwide as well as for all international subsidiaries. Heinz Bachmann took over the ailing Saurer Textile Systems Group in 1990 as its CEO and subsequently turned around and consolidated the business. He oversaw the expansion world-wide, especially in China, and guided the turn around of Schlafhorst and Zinser in 1999-2002. Recently he retired from active management and became Chairman of Santex Ltd and a member of the board of directors of Saurer and several other reputable European companies. Heinz Bachmann chairs the Swiss Textile Machinery Association and is guest professor and member of the Academic Advisory Board of Donghua University in Shanghai.

Jianhe Mao Managing Director Unipec GmbH, St.Gallen Born in 1961 in Harbin, Northeast China, Jianhe Mao learnt German in Shanghai and received his M.E. from Ruhr University Bochum. Jianhe Mao became a project engineer with Eckardt in 1987. After a short intermezzo as area manager for China with Mannesmann Hartmann & Braun in 1989, he worked with AEG to export post automation equipment. He joined Saurer in 1993 and worked as business developer and assisted Fidinam to launch real estate investments in China. He also managed various industrial projects for Saurer's textile machinery business in China. Jianhe Mao started his own consulting company Unipec in St.Gallen in 1996. Besides numerous consulting assignments to help European companies to succeed in entering the Chinese market, in restructuring their operation as well as in optimising ownership and management, he initialised and managed with his partners several industrial projects of his own. He focused on adapting the business culture to the Chinese environment and on building a healthy check and balance within the management. He excels with his profound practical experiences and impresses many with his spirit of entrepreneurship. While pursuing his consulting activities Jianhe Mao is also currently working on projects in the fields of medical equipment and career consultancy in China.

Wang Ying Deputy General Manager and Chief Financial Officer Beijing Siemens Cerberus Electronics Ltd. Born in 1964, Wang Ying got the German Abitur at the Tonji-University in Shanghai after studying operations research at the Technology College in Changsha, China in 1982. He studied economy and engineering at the University of Karlsruhe, Germany and Administration Science at the University of Konstanz, Germany. In 1988, Wang Ying was a research fellow and PhD-student at the University of St.Gallen (HSG) for the St.Gall Center for Future Research and Consulting for Economy and Administration Ltd., where he handled the revision of the St.Gall Sector Model of the Swiss National Economy for Prof. Dr. F. Kneschaurek. In 1990, Wang Ying started his career with Ciba-Geigy, Basel as an operations research analyst developing a management decision support system for marketing for the implementation in Ciba South Africa. In 1992, he worked for Ciba-Geigy Ltd. Agro Division, Switzerland as investment

How to manage your China business successfully

Zurich, November 28, 2003

planner while he was also involved with the establishment of two Ciba Joint Ventures in China. In 1995, he became controller for the region Far East, especially China, of Holderbank Management and Consulting Ltd., Switzerland. He also established an accounting system and a management/ finance reporting system for the Holderbank group company Naga Cement Ltd. in Cambodia. In 1997, he was senior controller with Swiss RE Ltd. As deputy general manager and chief financial officer of the joint venture company Beijing Siemens Cerberus Electronics Ltd. he is responsible for finance and administration as well as all commercial matters, especially business controlling in the entire supply chain and sales organisation including customer relations key accounts management and HR management.

Fei Ning Attorney-at-law Haiwen & Partners, attorneys-at-law, Beijing and Shanghai Fei Ning is managing partner with Haiwen & Partners Shanghai Office. He received his bachelor degree from the Nanjing Institute of Chemical Technology in China in 1983. He attended the graduate program of International Commercial Law in the University of International Business and Economics in Beijing in 1993 and the LLM program in University of London from 1997 to 1998. Fei Ning is licensed to practice law in the People's Republic of China (PRC). He has rich experience in the arbitration area with the China International Economic and Trade Arbitration Committee (CIETAC), the London Court of International Arbitration and the Arbitration Institute of the Stockholm Chamber of Commerce. Fei Ning has an engineering educational background including working experience, which significantly facilitates his handling of legal issues in connection with complicated technical subjects in professional practice. Prior to joining Haiwen & Partners, Fei Ning worked with CIETAC for 4 years. Before he built up the Shanghai Office in 1999, he worked as a foreign associate with an international Swiss law firm and a British law firm for three years. Fei Ning has 10 years of practice experience. He has represented both Chinese and foreign clients in more than a hundred arbitration and litigation commercial cases before the Chinese and international arbitral tribunals and the PRC courts at various levels up to the provincial Higher People's Courts and the Supreme People's Court. In addition, he has been advising foreign clients in connection with foreign direct investment, mergers and acquisition, and real estate development in China as well as other forms of foreign trade and economic co-operation activities.

Michael Werner Attorney-at-law, Dr. iur. HSG, LL.M. HKU Gründler & Neff, attorneys-at-law, St.Gallen Born in 1968 Michael Werner worked as research assistant with Prof. Dr. J.N. Druey. After getting his law degree from the University of St.Gallen (HSG), Michael Werner worked as a research assistant with Prof. Dr. J.N. Druey and as an auditor and acting clerk at a District Court in St.Gallen. He was an associate with a big international law firm in Zurich before being admitted to the Zurich Bar in 1999. In 2001, Michael Werner was admitted to the degree of Master of Laws (LL.M.) with distinction at the University of Hong Kong in the field of international and Chinese trade and contract law. After returning from Asia, he worked as an attorney with a well-established law firm in St.Gallen and completed his doctoral thesis on national and international litigation. Since 2002, he works with the law firm Gründler & Neff, St.Gallen, focussed on business law and specialised on advising SMEs. Michael Werner is a member the Legal Chapter of the Swiss-Chinese Chamber of Commerce and works as an instructor in law at various institutions. With regard to economic and legal developments in China and based on a network with local partners, especially law firms, he provides advice, co-ordination and support for SMEs regarding their engagement in China. His preferred areas of professional practice in Switzerland are contract, trade, corporate as well as liability, labour and IP-law. He both advises corporate and private clients and represents them in court. He speaks German, English and French.