D O C U M E N TAT I O N 2 0 0 6

THE HAMBURG SUMMIT

China meets Europe
13 to 15 September 2006 Hamburg Chamber of Commerce

www.hamburg-summit.com

Sponsors
Initiator & Organiser

Table of Contents

Exclusive Sponsor

Platinum Sponsor

04

Welcome Address by President Karl-Joachim Dreyer

20

Banking and Finance in China

34

Chinas Future Role in Asia

Gold Sponsors

06

22
A Bridge for Knowledge and Skills

Getting there: Logistical Challenges

36 38

Awards

Supporters

08 10 12 14

24
Let us like to be Neighbours

Supporting Programme

Chinas Emerging Automotive Sector

42
We need Understanding

26 28

Asia in 2015 Scenarios

Outlook by Conference Chairman Nikolaus W. Sches

Still more Work to do

China`s Need for Energy and Natural Resources

44 45

Views on the Hamburg Summit

China the new Economic Powerhouse

Quotes

30 32

Competing Powers in Asia

Partners

Summit Partners

Academic Partner

16 18

46
EU-China Trade Relations China and Europe in a Globalised World

Summit Speakers

47
Chinas Environmental Situation

Art of Illumination

Media Partners

Official Media Partners

Supporting Media Partner

Imprint: HAMBURG CHAMBER OF COMMERCE International Department Jens Amann Adolphsplatz 1 20457 Hamburg Germany

Phone: +49 40 361 38 -287 Fax: +49 40 361 38 -494 E-Mail: jens.assmann@hk24.de www.hamburg-summit.com

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Chinese Translation and Type Setting: Dr. Boesken & Partner GmbH, Hamburg Circulation: 2.500 copies

THE HAMBURG SUMMIT 2006

THE HAMBURG SUMMIT 2006

Welcome Address by President Karl-Joachim Dreyer

Karl-Joachim Dreyer, President, Hamburg Chamber of Commerce

wo years ago, we set up the first Hamburg Summit: China meets Europe hoping that it would become the premier economic gathering to strengthen the already prospering business relations between Europe and China. Our hopes were no illusions 2006 we have continued this series. Never before in the history of our Free

and Hanseatic City of Hamburg, we welcomed so many high ranking Chinese politicians and businessmen. This clearly is a sign of trust in our city as the premier China business location in Europe. Hamburg is widely perceived as the most important center for China-related business all over Europe. For thousands of companies in

China, our city is the preferred gateway to the European market. For Hamburg and its business community the relationship to China plays a prominent role: More than two million containers coming from or going to China - a total of 20 percent of all containers being shipped between China and the EU are handled by our port every year. Hamburg plays a central role in the shipping routes between China on the one hand and Northern, Central and Eastern Europe on the other hand. It is a stable, long lasting and productive cooperation that is beneficial for all partners: Hamburg, Germany and Europe profit enormously from Chinas economic boom. China is no longer only a sourcing and production place but has become one of the worlds largest consumer markets. It has emerged into one of the global economic players and is now entering a decisive phase of economic and political development. We should therefore put our focus on the abolishment of trade barriers for more liberalised markets. In addition to this, dialogues on strengthening the legal security must be pushed in order to create a stable basis for private investment in China. For the EU, it is necessary to accept China as an equal trading partner and to accept fair competition from Chinese companies. Both Europe and China have a lot of experiences to share. Further steps in this direction still have to be done. Feasible and long-lasting solutions can only be reached by an open dialogue. For this purpose the Hamburg Summit is the perfect platform. It was a pleasure as well as a special responsibility for us to host this conference again in 2006. <<

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The Summits talks and panels sparked numerous fruitful discussions amongst the attendees

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A Bridge for Knowledge and Skills

Chinas Prime Minister Wen Jiabao gives his opening speech at Hamburgs City Hall

he visit of Wen Jiabao, Prime Minister of the Peoples Republic of China, was the highlight at the beginning of the conference. Many participants considered his address as frank and ground-breaking. Wen began his speech by stating that since its inception the Summit has played an important role in enhancing cooperation and friendship between China and the European Union. And he continued: Chinas relations with Europe are the best among relations with countries, they are stronger than ever before. If one compares China-EU relations with a huge ship in the ocean, the business community would be its powerful engine.

In his speech Wen wanted to make a number of points clear to help you better appreciate developments in China. He first assured the audience that China would continue to pursue the path of peaceful development. In this process the Chinese government pursued a strategy of opening up for mutual benefit that will bring more opportunities to the world. Wen cited a number of figures to illustrate the benefits of this policy. Since its accession to the World Trade Organisation in 2001, he mentioned, Chinas annual imports have averaged about 500 billion US $, creating nearly 10 million jobs for the exporting countries and regions. The will to open up and elimi-

nate trade barriers must, however, be in evidence among all partners, Wen said. We call on all countries to open markets, lift restrictions on technology exports, boost international investment and establish an international multilateral trading system that is open, fair, reasonable, transparent and nondiscriminatory. Naturally, he also commented on the extremely important energy issue. China, he said, is a major energy consumer, but more importantly it is a major energy producer. Two thirds of its hydroelectric power potential remain untapped, and the development of nuclear, wind and biomass power has just begun. In 2005 the Chinese government had framed a clear target: Our goal is to build a stable, economical and clean energy supply system. Wen also dealt with a topic that dominated many discussions at the Hamburg Summit: the importance of protecting intellectual property rights and IPR holders interests. To us in China, he explained, protecting IPR is both an international obligation and a requirement for promoting Chinas own development and enhancing its capacity for independent innovation. He left no doubt as to what must be done: We must make sure that steps taken in China to protect IPR are as hard as steel. Wen described by way of an anecdote what is necessary to make relations successful and profitable for both sides. Gottfried Wilhelm Leibniz had stated that a bridge for exchanging knowledge and skills needed to be built. Today, 300 years later, Wen said, China and Europe are in need all the more of a bridge of this kind. <<

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400 guests dined in the historic Groer Festsaal

Prime Minister Wen is greeted by President Dreyer (left) and Chairman Sches

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Let us like to be Neighbours

hen I grew up as a little boy in Hamburg in the 1920s, China was as far away as the moon tonight, Helmut Schmidt, recipient of the ChinaEurope Friendship Award of the Hamburg Summit 2004, told the audience in his speech during the opening dinner. Since then the number of people on the planet had more than tripled, but the Earth and the space on its surface had not grown. We are getting ever closer to each other, the former German Chancellor concluded, expressing a personal wish to the Chinese, European and German guests. Let us understand that we are neighbours, he said, and strive for good neighbourly relations. Because the more closely we cooperate, the greater is the benefit for both sides. For the much-travelled and expe-

rienced politician Helmut Schmidt the almost unbelievable economic upswing that the Peoples Republic of China has achieved since the late 1970s [is] an outstanding phenomenon that has rarely occurred elsewhere in the history of mankind. In his view it is a miracle that deserves great respect from us Europeans. Of course, he told the Chinese guests at the Hamburg Summit, I am well aware of the hundreds of social problems which the enormous economic change and economic growth have presented to you. But Schmidt was confident that Chinese politicians will be able to solve these problems responsibly. My confidence is founded in the cautious prudence of Chinese leaders that I have observed over the past three decades, thanks to Deng Xiaopings example. So

Hamburg`s First Mayor Ole von Beust

Prime Minister Wen Jiabaos calligraphic entry in Hamburgs Golden Book

he assured the Chinese visitors that the other world powers have no legitimation to criticise China. Hamburgs First Mayor Ole von Beust endorsed this view in his words of welcome to the Chinese guests. In all the years of cooperation, China and Hamburg have always shared a mutual respect for each others collective selfconception and cultural identity. We meet each other not in a lecturing mode but in dialogue, he said. He went on to deal briefly with the centuries-old tradition of relations between the Hanseatic city and the gigantic Asian empire. In Hamburg, China has met Europe not just since Chinas unparalleled rise to economic power status in the twenty-first century but for many generations, Mayor von Beust said. Relations dated back to the early eighteenth century when the first ship laden with tea, porcelain and silk berthed in the Port of Hamburg. Germanys Economic Affairs Minister Michael Glos, representing the federal government explained that we are engaged in an increasingly intensive dialogue. China is our most important trading partner in the Asia-Pacific region and, conversely, we are proud to be Chinas most important partner in Europe. German firms had much to offer towards developing China, Glos said. They did, however, expect fair framework conditions in the Chinese market. The process of market opening in China has not yet been completed, the minister from Berlin said. Germanys aim was to intensify cooperation. That was why Glos told the Chinese guests: Let us work jointly to achieve this goal. <<

Former German Chancellor Helmut Schmidt expressed his confidence in Chinas leaders

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We need Understanding

Xu Kuangdi, CFIE, and Theo Sommer, Die Zeit, discussed the protection of intellectual property rights

Hamburgs First Mayor Ole von Beust (left) was one of the many attendees of the opening session

u Kuangdi, Chairman of the China Federation of Industrial Economics (CFIE), crowned his opening address to the Hamburg Summit with a special message. The EU, he said, is Chinas biggest trading partner and Germany is Chinas largest trading partner in the EU. At the same time China is the EUs second biggest trading partner. In 2005 the value of Sino-European trade value reached nearly US $ 218 billion, exceeding for the first time the value of trade between China and the United States. And it will soon reach US $ 300 billion. These figures show that economic cooperation has progressed rapidly since 1975, when China and the European Economic Community established diplomatic relations. Theo Sommer, editor-at-large of the German weekly newspaper Die Zeit, first visited China with Helmut Schmidt in 1975 and has since been a frequent visitor there.

His question was: How we can promote further economic relations between Europe and China? Xus answer: We need dialogue, we need understanding on both sides. To document the growing importance of relations, Xu arrived with the largest delegation of Chinese entrepreneurs, politicians and academics ever to visit Hamburg. But trade, Xu explained, was only one aspect. The EU was also, with companies like Airbus, Siemens, Nokia or Volkswagen, the fourth biggest investor in China and its largest supplier of technology. China and Europe are economically inter-complementary, Xu said. More and more Chinese enterprises would also invest and set up companies in EU countries. Xu sees three serious obstacles here: first, the very different legal systems from one country to the next that Chinese entrepreneurs failed

to understand, second the high levels of taxation compared with China, and finally dealing with powerful trade unions. In China, workers representatives and management were friends and not adversaries, he said. Protection of intellectual property rights was an important issue right from the opening debate. Replying to Sommers question how China planned to deal with this issue in the future, Xu offered an original explanation for the ongoing difficulties. In traditionally agricultural China, he said, it had been customary to learn from neighbours. This tradition continued to determine the behaviour of businessmen. His fellow-countrymen had yet to learn that such a thing as intellectual property existed. We must train entrepreneurs to abide by international laws, he said. That is a major task for the Chinese government. <<

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Still more Work to do

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Enrique Barn Crespo in discussion with a Summit participant Enrique Barn Crespo, European Parliament, encouraged China to implement its WTO obligations

efore Enrique Barn Crespo, Chairman of the European Parliaments International Trade Committee, outlined his views on relations between China and the European Union he first responded to the previous speaker Xu Kuangdi, to whose remarks on the irritation that European tradeunions triggered among Chinese investors in Europe he replied: Trade unions are not the enemies of entrepreneurs, he told his Chinese counterpart, they are independent partners of the management. The European parliamentarian said he was delighted Chinese Premier Wen Jiabao had indicated in his opening speech to the Hamburg Summit that talks on implementing all of the World Trade Organisations rules were to continue.

China had long ceased to be a classic developing country, he said, partly in view of its magnificent culture rich in tradition and partly as a country with enormous foreign exchange reserves. China, he said, is the owner of America because it holds the biggest portfolio of Treasury bonds. When China joined the WTO in 2001, Barn Crespo explained, all concerned were convinced that it had to be classified as a non-market economy. But there has been increasing pressure from Beijing to receive market economy status without delay. Barn promised Chinese participants at the Hamburg Summit that the European Commission is currently assessing Beijings progress toward a market economy and might at the end of this review grant

China market economy status. He also told his Chinese partners I cannot honestly say that China has fully implemented all its WTO obligations. There is still more work to do. This is of course one of the Communitys key priorities in its bilateral trade and economic relationship with China. As main issues identified so far by the EU he listed inadequate enforcement of intellectual property rights, a definition of industrial policies that might discriminate against foreign companies (in the automobile sector), barriers to market access in a number of service sectors, including construction, banking, telecommunications and express courier services, and access to raw materials. <<

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China the new Economic Powerhouse

Ronnie C. Chan, Hang Lung Group, predicted China to account for half of the worlds manufacturing capacity in the near future

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u Chengyu, CEO of Chinese oil and gas group CNOOC, offered European entrepreneurs clear and concise advice: Dont give up! Fus company works extensively with foreign partners, which is why he is aware of their position. It is not easy, you may have frustrations, but if you give up, you have no future in China. Yet the prospects must surely be better than anywhere else in the world. Also Chinese entrepreneurs like Ronnie C. Chan, Chairman of the Hang Lung Group, a leading Hong Kong property developer, viewed their countrys development prospects with great optimism. He saw China accounting for half of the worlds manufacturing capacity in a few years time. That means half the worlds energy and raw materials will be consumed in China, he said. And it also means that every

other ship and plane will travel either to or from China. China will not remain the workshop of the world, Chan explains. It will develop brands of its own and follow a path similar to that of Japan. Five years ago no-one could name a Chinese company, Chan said. Now there is Lenovo and others. Lenovo Chairman Yang Yuanqing: The Chinese want to be more and more international. But every company has to find its own way. Along with the economic development Chinas already important political role in the world will become even stronger. But en route to this successful future a number of hurdles still remain to be cleared. CNOOCs CEO Fu mentioned the enormous danger that Chinas seemingly unquenchable hunger for energy represents. And even

after joining the WTO China still needs to fulfil many preconditions, Europeans say. But Mario Monti, former EU competition Commissioner, mentioned that Europe also still has much to do to improve relations with China. What China lacks above all in addition to protection of intellectual property rights is, he felt, a modern competition law: China must be very careful in putting together its own domestic legislation. Deutsche Bank director Jrgen Fitschen also awaits an opening of financial markets. The financial market today is very heavily regulated, he said. That is why it is still very expensive to go to China as a company. You have to be very careful, otherwise you will regret it. <<

Fu Chengyu, CNOOC (left), and Mario Monti, Bocconi University (right), were two of the high-ranking speakers of the first panel

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EU-China Trade Relations

Lutz Bethge, Montblanc International

Laurence Barron, Airbus China

Cai Weici, China Machinery Industry Federation

Diethard Gagelmann, Otto Group

he development of trade is an accurate reflection of economic development in China. The growth rates are immense, opportunities are enormous, especially for European companies, and not just in basic industries such as energy, automotive or chemicals, but also in luxury goods. A few years ago no-one could imagine the Chinese as customers for luxury goods on a large scale, said Lutz Bethge, Managing Director of Montblanc International in Hamburg, but in the next decade China will be the No. 2 market in luxury products, exceeding the United States. Considerable problems exist, of course, inevitably so. They mainly relate to products such as textiles, clothing or shoes. There is a vague feeling of Chinese invasion in these markets in Europe. The EU criticises exports of pirated products and with it the lack of protection for intellectual property rights in China. But Diethard Gagel-

mann, Member of the Executive Board of Otto Group, the worlds largest mail order company said: We are very satisfied. China can compete with other countries even better because of good products. So a good work of information remains to be done in order to clarify that European firms also have opportunities in China. How big they are is something that Cai Weici, Vice President of the China Machinery Industry Federation, can underscore with ease in relation to his own industry. It is, he said, Chinas largest and, most unusually for China, it is an industry with an import surplus. But he set clear priorities. We need efficiency to protect the environment and we need to improve quality. That was why the best opportunities for foreign providers were in the high-tech and high-value sectors. A company that clearly fulfils these requirements is the European aircraft

manufacturer Airbus. 20 % of our entire production goes to China, said Laurence Barron, President of Airbus China. At the same time, half of the Airbus planes flying in the world have parts from China. The question for all European partners in trade with China is, however, whether they can make a profit or trade is based on the you pay all, we get all motto that is imputed to the Chinese. Pricing was a very painful part, but we are making a profit, said Barron, commenting on experience at Airbus, while Bethges brief comment was: Its OK. Both men realised, of course, that it is no longer merely a matter of selling their products to China. Service and research are two keywords that will be increasingly important in the future. People dont buy a brand, they want service, said Bethge. Barron agreed. Service, he said, is a very competitive issue. <<

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Chinas Environmental Situation

Meinhard von Gerkan, Klaus Tpfer, Alfred Th. Ritter and Soledad Blanco (f. l. t. r.) discussed the various environmental challanges China faces

he Rhine, joked Klaus Tpfer, referring to the swim he took in the river as Germanys federal environment minister in May 1988, was not dirty only after I had bathed in it." All rivers had been so polluted back then that there was an urgent need for action. Tpfer, director of the United Nations Environment Programme (UNEP) until March 2006, thereby made the point in his keynote address to the Hamburg Summit that environmental issues are by no means shelved only in developing countries. Yet environmental protection is an economic necessity, he said. Looking at China, Tpfer who advises the Chinese government on environmental issues, said, financial and human capital are available in sufficient quantity. If the country is to maintain its growth momentum it must reinvest in its natural capital. That was where the crucial bottleneck was to be found. Twenty of the worlds 30 cities with the highest levels of atmospheric pollution were in China. That was why it was important for the government to invest in environmental technology. Tpfer specifically advocated developing

renewable energy resources and decentralising power production. The Chinese leaders know that efficiency in the use of resources must improve. The panel agreed that the Chinese government today is more keenly aware of ecological considerations. German chocolate manufacturer Alfred Th. Ritter, recipient of the China-Europe Sustainability Award of the Hamburg Summit 2006, even said that the two best solar systems for the production of regenerative energy were in China. He now has solar collectors made in China. With them we have reduced by a third the energy costs of our production in Germany, he said. Chinese entrepreneur Zhang Yue, recipient of the China-Europe Sustainability Award of the Hamburg Summit 2004, said that his country had undertaken an U-turn in environmental policy. What had been done in the past six months was comparable to a revolution. The ecological problem will be solved, he ascertained. Zhangs company Broad Air Conditioning manufactures ecofriendly air conditioning systems that in some cases are powerful enough to

supply entire airports. A more critical note was added by Hamburg based architect Meinhard von Gerkan, whose office in China designs cities and has built, amongst others, the trade fairs and congress centres in Nanjing and Shenzhen. There was no logical and ecological urban planning in China at all, he said. Cities grew uncontrolled. The distance between Shanghai and Nanjing is 200 kilometres, but you cannot say where one city ends and the other begins, von Gerkan said. In addition, enormous amounts of heating energy were wasted in housing. Soledad Blanco of the EU Commissions environmental affairs department also felt that China had major environmental policy deficits. At the regional level there were no minister to implement the governments environmental programmes. Yet there was so much to be done. No country in the world used as much coal as China. Every 14 days a new 1,000-megawatt coalfired power station is built, Ms Blanco said. China was also responsible for 40 % of the worlds carbon dioxide emissions. The consequences for global warming are immense, she said. <<

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Zhang Yue reported a 180 degree turn in Chinas environmental policy

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Banking and Finance in China

Heinz Dollberg, Allianz Versicherungs-AG

Ulrich W. Ellerbeck, HSH Nordbank AG

Margot Schller, GIGA - Institute of Asian Affairs

Jin Yun, Shanghai Pudong Development Bank

he financial sector is the heart of the economy, said Jin Yun, Chairman of the Shanghai Pudong Development Bank. Because growth was unlikely to lose momentum in the years ahead the sector was sure to play a much larger role in the future than it does today. Jin described three conditions that had to be fulfilled to ensure that it does. We must open the door, we must broaden the open areas and, compared with years ago, our steps must be bigger. In principle, he said, there can be no doubt on these points, but we feel that finance is very sensitive. The opening of the financial sector must not proceed at a faster pace than the development of the economy. Otherwise restrictions would be inevitable, with unforeseeable consequences for the economy. If you look at international financial institutions, Jin said, they took a long time to develop. The greatest uncertainty Chinese banks face continues to be non-per-

forming loans. Rainer Schfer, head of country risk and emerging market research at Dresdner Bank, said: The government has done a lot to recapitalise Chinese banks, bring down the ratio and improve controlling, but there can be no doubt that a big black hole still exists. Heinz Dollberg, head of the Asia Pacific division at Allianz Versicherungs-AG agreed: The capital market is the bottleneck. And Ulrich W. Ellerbeck, Member of the Management Board of HSH Nordbank in Hamburg, also promised that many years will elapse before we see a really free market in China. So why is the HSH Bank already committed in the country if Ellerbeck is convinced that in view of the size of the market all foreign banks are just niche players? We have to follow our customers and we have to protect them, he said. Given the size of the market, he added, being represented in it would seem to be a must. Investing

in the Chinese market is investing in the future, Ellerbeck and his colleagues agreed calling unanimously for further liberalisation of the market. Competition is still rudimentary, as Dollberg made clear by means of a small example. In all of China a total of 36 insurance companies are now in business. And how many compete in the German market? More than 1.500, Dollberg said. Jin Yun added: As Chinese banks we are already feeling the pressure of competition. We have to learn how to compete with you, we still have a way to go before we reach international standard. To do so, many innovationsremain to be implemented. Management skills must be improved, Chinese banks must learn to handle risks and they must, above all, look after their customers much more effectively. The key of all keys, Jin Yun was firmly convinced, is to train talents, and the key to training talents is to change mentality. <<

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Getting there: Logistical Challenges

Wong Wai Shing, Kerry EAS Logistics Limited, deliveres his impetus speech

ong Wai Shing praised the chances of the logistics industry in China. The market is there and it is extremely rosy, he said, but unfortunately roses have thorns. In other words, the industry still faces great tasks. Wong is Joint Managing director of Hong Kong-based logistics company Kerry EAS and Vice President of the China International Freight Forwarders Association. In his keynote speech at the Hamburg Summit Wong said that in 2005 the Chinese logistics market had done 470 Billion US$ of business and that business was increasing by 25 % per year. The potential is enormous, he said.

The other panellists were also positive about the prospects. Logistics in China is growing more and more important, said HSH Nordbank director Peter Rieck. His bank is the worlds largest ships financer and also does business in the aviation and railways sectors. Both Wong and Rieck also stressed the difficulties of commitment in China, however. China is so big, so large. No company can cover the whole country, Wong said. This would require far too much of an investment, so cooperation was a must. What is more, the market was too fragmented. At the moment 500,000 local companies offer different

kinds of logistics services, Wong said. Rieck agreed that efficiency suffered as a consequence. In Europe logistics accounts for about 7 % of the cost of typical retail goods, he said. In China it is more than 15 %. Another important issue was the inadequate liberalisation of the market. In China we have offices at 130 locations and need a total of 900 licenses to operate them, Wong complained. While inland transport suffers from poor roads, overburdened Chinese railways and poor-quality warehousing, Chinas seaports are well developed. A man who benefits from the boom in container shipping is Guan Tongxian, president of Shanghai-based Zhenhua Port Machinery. He stated that he was expecting container traffic to continue to increase in China. The quality of products made in China is excellent, and labour costs are much lower than in, say, Europe. Hapag-Lloyd CEO Michael Behrendt was very satisfied with conditions in China. We have no logistical problems whatever there, he said. Since acquiring CP Ships last year the Hamburgbased company has been one of the worlds leading container shipping lines. China is the worlds most important market, not just for us but for all of container shipping, he told the Summit attendees. <<

Peter Rieck, HSH Nordbank AG, and Guan Tongxian, ZPMC

Michael Behrendt, Hapag-Lloyd AG

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The audience witnessed a lively discussion

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Chinas Emerging Automotive Sector

Zhu Yanfeng, China FAW Group Corporation, expects Chinas automobile production to double by 2010

Winfried Vahland, VW, Mei Zhaorong, Institute of World Development, Bernd Gottschalk, German Association of the Automotive Industry

umming up the outlook for Chinas automobile industry, Bernd Gottschalk, President of the German Automotive Industry Association (VDA), stated that today China is one of the great challenges for the automotive industry and soon it will be one of the great challengers. The challenge is a fast-growing market with production set to increase from well over five million vehicles this year to more than ten million in 2010, according to Zhu Yanfeng, President of China FAW Group Corporation and Chairman of the CFIE Presidium. You can see with the naked eye how fast the automobile industry has grown in China in recent years, said Mei Zhaorong, Honorary Director of the Institute of World Development, State Council of China, and recipient of the China-Europe Friendship Award of the Hamburg Summit 2006, You used to see more motorcycles than cars on Chinese roads, now it is the other way round. Gottschalk agreed, saying that no other market has experienced such growth in volume and

nowhere else have such large investments been made in recent years. The automotive market in China has changed significantly since China joined the WTO in 2001, said Winfried Vahland, President and CEO of Volkswagen Group China. Vahland, whose company was active in China at a very early stage and is one of the leading manufacturers, noted that we have to fight for all our customers. Volkswagen does so mainly by means of state-of-the-art technology. Today we have 1,600 R&D people in China, and we will be increasing that number, he explained. VW has decided to offer only the latest technology in China, partly with a view to reducing the contribution of traffic toward environmental pollution. Zhu Yanfeng promised that the automotive sector will play a key role in the economy. In the next five years China would develop one or two brands of its own. It would do so, however, in accordance with the axiom some people play tennis, we play ping-pong. In other words, Chinese firms seek to

conquer the low-price segment, whereas cooperations or imports will continue to predominate at the upper end of the market. This view was shared by Zhang Guangsheng, Vice Chairman of the Board of the Shanghai Automotive Industry Corp. (SAIC). Domestic competition corresponds with international cooperation because competitiveness is a difficult process, but the result is worth it, Zhang said. In China and everywhere else in the world, the emergence of strong brands is a key factor in modern competition on the automotive market. For this to happen it is important that automotive production in China is integrated seamlessly into the worldwide supply networks of manufacturers and suppliers, Gottschalk stated. In this case, Gottschalk said, he is convinced that China will achieve its targets. Everything I read in the five-year plans I have seen in reality. And whenever a competitor shows up, take him seriously. Chinese competition in Europe will happen. <<

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Asia in 2015 Scenarios

Richard Hausmann, Siemens, and Eberhard Sandschneider, German Council on Foreign Relations, outlined their views an Asias future

orecasting the future is difficult, all the panel-speakers agreed. But Richard Hausmann, President of Siemens China, risked three theses, the first of which most impressively reaffirmed the Summits basic tenor. Economically, he said, the twenty-first century might not be Asian, but Asia would play a significant role. We will have to make room for China and India, he said. And he left no doubt that it is something that will not only happen but also need to happen because otherwise China will face big social problems. It will be accompanied by powerful economic changes in the two up and coming Asian countries. India and China, those two mega-countries, will no longer be the workshop of the world, they will shift to innovation. That is a clear goal of the Chinese government, Hausmann said. Last not least, both countries would play a more important role in world affairs. I am more on the optimistic side, he concluded, that growth will go on at least until 2015.

Although Professor Eberhard Sandschneider of the German Council on Foreign Relations agreed with this scenario he was unable to share the previous speakers optimism. Yes, he said, the twenty-first century would be a global world with a strong Asian pole, and the basis of power would be innovation and not the army. But the biggest risk would be to manage stability in the world, and therefore I have some doubts about a linear development. China was so big and all options were open. Whatever you want to see, he said, I will show it to you. The West had long ceased to serve as a model. Gone were the days when the free market economy and democracy had been a blueprint for the world. In Asia, Sandschneider said, self-confidence is growing faster than the economy. Europe was now no more than a museum. Theo Sommer, editor-at-large of the German weekly Die Zeit, underscored this position with a few sober figures. In 1900 the Europeans were still 20% of the worlds popu-

lation. Today they made up a mere 11% and in 2015 they would be barely 7%. We seem to be a vanishing race, Sommer said. Europe already has a problem today, the speakers agreed. It has no coordinated policy to Asia. China recognises Europe as an economic power but not as a political power, Hausmann said. And Europe has lost its political innocence as well as the US. If we push these countries to human rights we should protect them at first, Professor Sandschneider noticed. For all the growing self-assurance there are some Chinese, like Zhang Yue, Chairman of Broad Air Conditioning, who lament the consequences of growing prosperity, and not just on account of the serious ecological and social problems. People have become very materialistic, he complained. We are a country of materialists. People used to read a book and be happy. Today, under growing Western influence, he said, we consume so we are happy. <<

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Zhang Yue, Broad Air Conditioning, commented on the discussion

Theo Sommer, Die Zeit, moderated the session

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China`s Need for Energy and Natural Resources

ecure supplies of energy and raw materials are of great importance for China. Energy is the driving force behind the Chinese economys enormous dynamism. 40 % of the world increase in oil consumption comes from China, former Australian Prime Minister Bob Hawke estimated, and Ernst-Ulrich von Weizscker, Professor at the University of California in Santa Barbara, adds more figures. China, he said, produces 4 % of the worlds domestic product but consumes 12 % of the energy. Chinas energy and resource consumption per unit of GDP is much higher than that of the rest of the world, said Xie Qihua, Chairwoman of Baosteel Group Corporation, the countrys biggest steelmaker. China,

she warned, faces an increasingly severe shortage of energy and resources. To prevent that from happening, the Chinese government made a significant adjustment to the national development strategy. The new eleventh five-year plan focuses on eco-efficient economic development and environmental protection. Furthermore, the plan seeks to improve the utilisation of natural resources so as to reduce energy consumption by 20 % per unit of GDP by 2010. But Chinas consumption of energy and raw materials will increase nonetheless. Renewable energies such as wind power will play a part in this development. Werner Marnette, CEO of Norddeutsche Affinerie AG, warned the Chinese not to make the same mistakes

as the Germans: Ensure that there is competition in the production of energy. The main goal is coal, Zhao said. Coal is extremely important in China, Jean-Christophe Iseux, Special Adviser to the Peoples Government of China agreed. Iseux also forecasted that China will devote substantial political efforts to secure imports of oil and other sources of primary energy. Hawke agreed unreservedly: Chinas diplomats are heavily into securing foreign energy resources. He also stressed that Irans importance for China should not be underestimated. It is very much in the centre of a conflict between the United States and China, he said. Hawke therefore sees great opportunities for a convergence of interests between China and Europe. <<

Zhao Xizheng, China Electric Council

Robert Hawke, former Prime Minister of the Commonwealth of Australia

Ernst-Ulrich von Weizscker urged the worlds nations to quadruple the efficiency of resource usage

<<

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Competing Powers in Asia

he Australian Ambassador to Germany, Ian Kemish, tells an anecdote to describe relations among Asian countries. Some years ago he attended a conference of Asian states at which the former Japanese Prime Minister Junichiro Koizumi spoke. Koizumi addressed one head of government after another directly, describing bluntly the conflicts that Japan had with his country. Kemish feared that there might be an uproar. But Koizumi ended his speech by saying that Japan enjoyed very close economic ties with these countries and that he was therefore willing to resolve all of the conflicts. Ampalanavar Selverajah, the Singaporean Ambassador to Germany, also emphasised the peacekeeping effect of economic ties. The more intense economic growth, the more

everybody has to lose by a conflict, he said. But where are the problems, Eberhard Sandschneider, Otto Wolff Director of the Research Institute at the German Council on Foreign Relations, asked. Volker Stanzel, German Ambassador to China, conceded that competition in Asia sometimes gives rise to fears, but Asian countries are discovering the advantages of cooperation. Instead of competing powers in Asia we will have competing regions like the United States, the EU and Asia, Stanzel predicted. But we want an architecture that is open, said Selverajah, because Asia is still a region of difference. China, Japan and India will have a stake in the region, but there is always an invisible partner in the room, Kemish pointed out: the United States,

China and Japan were the leading powers and no country in the region wants to be in a position where it has to choose between them, Selverajah said. Relations between China and Japan are the most important for regional development and security. Chinas rise has a greater impact on Japan than on the United States. In 20 years China will have overtaken Japan in economic power. For a stable Asia it is important that both countries come together, Selverajah is convinced. The conclusion reached by Guo Wei, President of Digital China Holdings, is wholly consistent with the positive underlying mood. Chinese growth should bring benefits to the world, even to Japan, he said. The largest risk is misunderstanding. <<

<<

Volker Stanzel, Ambassador of the Federal Republic of Germany to the Peoples Republic of China

Robert Hawke, former Prime Minister of the Commonwealth of Australia (right)

Guo Wei, Digital China Holdings Ltd

Ampalanavar Selverajah, Ambassador of the Republic of Singapore to the Federal Republic of Germany

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China and Europe in a Globalised World

<<
Former German Chancellor Helmut Kohl encouraged Europeans to show more respect for Chinas cultural heritage

urope und China are regions with a great and long history. Germany is an important part of Europe. Bilateral relations between China and Germany have developed well and successfully over the past 35 years, said Helmut Kohl, outlining his impressions to Hamburg Summit participants on his return from a recent journey to China. The Chinese, the former German chancellor is firmly convinced, are keeping a close eye on Europe. European integration, the success of the Euro, which is now the worlds second most important currency, and the size of the market are all factors, he said, that China considers to be extraordinarily important. We must preserve for the future the confidence built in the course of

decades, Kohl said, appealing to politicians and entrepreneurs. Sounding a warning note, he added we will not develop good relations on a lasting basis if we fail to show understanding for Chinese culture and for special conditions in China. It was this understanding, he said, that he feels Europe fails to show at times. There was still a great social divide between the cities on Chinas eastern seaboard and the countrys interior, but the Chinese government had put measures in place to deal with this problem. If you hold talks about human rights you must always bear in mind what explosive potential there is in the country and what responsibility the politicians bear, the former chancellor said. Europeans and Chinese were dependent on each

other more than ever in a totally changed world. The bipolar world broke up after the fall of the Wall in Europe, Kohl stated. A multipolar world was now taking shape in which China, India, the United States, the EU and Russia and maybe, before long, South America will play crucial roles. It is important for Europeans to set out to support the multipolar world, Kohl said, because we promote world peace by making use of our opportunities to strike a balance. Europeans and Germans as a core country in a united Europe could only benefit from showing patience. Kohl: Chinas development cannot be pursued in time with Germanys legislative periods. <<

Horst Teltschik, Teltschik Associates, introduced the Hamburg Summits Honorary Chairman

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China's Future Role in Asia

wo countries stand for all Asias resounding progress towards a new era. China is the model, but India too has now set out on the path that China has successfully taken for two decades. Lee Kuan Yew again addressed the Hamburg Summits participants by satellite link. The founder of modern Singapore is convinced that the Chinese economy will continue to grow rapidly: I think they can carry on at 8 % for the next years, and India is growing at about 70 % of Chinas rate. East Asia will be the fastest growing region in the world. Lee, Prime Minister of Singapore from 1959 to 1990, vividly recalled the beginnings of the Chinese economic miracle. In 1978 Deng Xiaoping visited Singapore and Hong Kong. He had not expected to see cities that were more

modern than Beijing and Shanghai, Lee said. In December that year the Beijing authorities decided to open up the country that had until then been sealed off from the rest of the world. Nearly one million Chinese tourists a year now visit Singapore, and everybody is learning Chinese to do business, Lee mentioned. Singapore had already invested heavily in China, so we asked our businessmen to invest in Vietnam and other countries, the still influential elder statesman said. It was a matter of not putting all eggs in one basket. Chinas enormous social problems and environmental pollution will not impede its growing influence on a permanent basis, Lee is convinced. The new leaders who took office two years ago previously served in poor regions. They are shifting the emphasis from the

coast to the west and northwest. And they would eventually solve the problems. It will take a long time, it is costly but they will spend on it, Lee said. Whatever happens, Beijing would become a rich city exerting a great attraction on all Asia, and the 2008 Olympic Games would make a major contribution toward this. They are planned as green Games and Lee said with a wink that China will keep this promise. In 1999, to mark the Peoples Republics 50th anniversary, the sky over Beijing was to be blue. So Factories were shut down for two weeks. For the Olympics they will shut them down for three weeks, Lee forecasted with a laugh. <<

Singapores Minister Mentor Lee Kuan Yew predicted China and India to make East Asia the fastest growing region in the world

The audience engaged in discussion with Lee Kuan Yew via satellite link

<<

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Awards

Zhang Yue, Broad Air Conditioning, presented the China-Europe Sustainability Award to Alfred Th. Ritter, Alfred Ritter GmbH & Co. KG

Volker Stanzel, German Ambassador to China, handed the China-Europe Friendship Award to Mei Zhaorong, Institute of World Development

he gala dinner at the Hotel Atlantic Kempinski on the Alster was another highlight of the Hamburg Summit. Festively decorated and illuminated for its visitors from all over the world, the hotel in its exclusive lakeside location was a worthy venue for the presentation of the China-Europe Sustainability Award and the China-Europe Friendship Award. After an artistic prelude, with Chinese music played by three young female Chinese musicians in traditional dress, the awards were presented. Zhang Yue, Chairman of Chinese power engineering firm Broad Air Conditioning and the 2004 prize-winner, presented the ChinaEurope Sustainability Award to someone whose name most of you surely have sweet memories of Alfred Th. Ritter, CEO of German chocolate manufacturer Alfred Ritter GmbH & Co. KG. Ritter has campaigned for years for ecology and alternative energy. In a joint venture he manufactures solar

power systems in China. Zhang praised Ritters commitment because solar energy does not earn him a lot of profit in the short term but he is committed to it in the long term. Asked what the connection between chocolate and environmental protection was, Ritter said, I just like to produce things that are really useful for people. And in the long term solar power, he said, had a great future. In keeping with the Hamburg Chamber of Commerces intention of choosing a German and a Chinese award-winner, the second prize of the evening went to a personality from Beijing: Mei Zhaorong, advisor on foreign affairs to the Chinese government and former Chinese Ambassador in Berlin, received the China-Europe Friendship Award. The first award-winner in 2004 was former German Chancellor Helmut Schmidt. Mei, director of the Chinese Institute of World Development, was honoured

in recognition of his remarhable contributions to European-Chinese relations. In his speech in honour of the awardwinner, Volker Stanzel, the German Ambassador in Beijing, not only praised Meis long service to the Chinese people but also noted that with the long list of his publications he has indeed helped to pave the way for SinoGerman relations. Deeply moved, Mei Zharong qualified this praise a little. My contribution toward Sino-European friendship has been modest, he said. That is why I am also accepting the prize for the Chinese people who have championed the cause of friendship. Politician Mei, born in 1934, said that while he had deep roots in his own people he was well aware how important friendship with Germany and Europe was. I have repeatedly found, he said, that mentality and culture are very different and that it is necessary as a result to build bridges. <<

<<

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Supporting Programme

t the end of the opening day, participants of the Hamburg Summit went on a cruise on the Alster, a popular lake that stretches from the city centre to the outskirts of Hamburg. The lakeside was lined with people, all of whom were there to see the magnificent fireworks display donated by Hamburgs twin city Shanghai. Such a lavish display has seldom lit up the sky over the Hanseatic city. A wide range of glittering fans, dancing garlands, gigantic flowers and crackling stars were painted in the air and accompanied by ear-splitting peals of thunder and quiet showers of sparks. The spectacle went on for more than half an hour, repeatedly starting anew. In the end only the peoples eyes shone as they gave the display the applause it deserved. <<

he exhibits at an unusual exhibition held during the Hamburg Summit testified impressively to the long tradition of trade between China and Europe. At a presentation entitled Chinas View of Europe Export and Targeted Production for the European Market, visitors were able to admire selected works of art from the stock of the Dresden Porcelain Collection. Vases, bottles, bowls and figures were manufactured in China in the seventeenth and eighteenth centuries and exported to Europe. Some of them were copies of European originals such as the famous Delft porcelain. The Hamburg presentation will be part of an exhibition planned for 2008. Entitled China and Europe: Alternating Views, it will deal with cultural exchange between the two regions in the period from the sixteenth to the nineteenth century. <<

<<

<<

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Supporting Programme

ne of the attractions in the Chamber of Commerce building was the Hamburg Architects in China exhibition. It was dedicated to a single project, the city of Lingang, designed on the drawing board for 300,000 people 60 kilometres south-west of Shanghai. It is under construction in an exclusive location on the Pacific right next to the newly opened largest container port in Asia as a location for various new universities and administrative centres. The architecture is made in Hamburg. As if it were born out of a single drop is how the famous Hamburg-based architect Meinhard von Gerkan describes his master plan, which has been under construction since 2002 under the aegis of six Gerkan pupils, the Hamburg architects. <<

hinese speakers in Hamburg noted on several occasions that you play tennis, we play ping-pong when seeking to make clear their more modest role compared with the Europeans. It was an understatement, and how much of an understatement became apparent at the end of the Hamburg Summit. In a table tennis show Ma Wenge, eighttime Chinese champion and two-time team world champion, demonstrated what everyone with the slightest interest in sports already knows: that the Chinese are beyond comparison at ping-pong. In a match with German twofold world champion Steffen Fetzner the audience was able to admire all the tricks of the trade. <<

<< <<

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Outlook by Conference Chairman Nikolaus W. Sches

Nikolaus W. Sches, Conference Chairman, Hamburg Chamber of Commerce

he Hamburg Summit: China meets Europe wants to build bridges of understanding and deepen business relationships. Over the last two decades the relations between EU and China have gradually developed into a mature strategic partnership. During this period, both the European Union and China have made significant progress in diverse economic fields. From the entrepreneurial point of view and we are talking business! -

this partnership should be based on free trade and open markets, on fair transfer of technology and know-how as well as on cooperation in scientific and academic research. This form of cooperation meets Chinas current strategic needs, and it is also good for the European Union that is constantly looking for new markets and partners. The SinoEuropean partnership is already a reality - an economic and political success. Our Hamburg Summit is an outstanding

opportunity to reflect on what has been accomplished and what still remains to be done. During the second summary approximately 450 decision makers from ten countries discussed the political and economic issues with some major results. First of all Chinas further integration into global politics and the global economy is inevitable, the economic interdependence is a reality. The Peoples Republic is on its way to becoming a global player, no one can deny Chinas growing influence. The European Union should view the Peoples Republic as a strategic partner and give impulses in order to forge a beneficial relationship of equals. China second is definitely a must for most European companies. For some firms facing growing competition from China it is a question of survival to arrange partnerships with Chinese companies. The process of opening up, which is a direct result of Chinas accession to the WTO holds new opportunities in store. They should not be missed. And finally the European Union should support the Chinese government in its endeavors to further reform the economy, to enhance environmental protection and establish a stable society. The European Union has a lot of experiences to share with China, for example in creating a sustainable social welfare system and successfully coping with problems of social disparities. It is exactly the aim of the Hamburg Summit to offer a forum to exchange ideas and experiences. Dialog is the bridge to peace and sustainability. <<

Chinese participants accounted for one fourth of the Summits audience

<<

Xie Qihua, Baosteel Group Corporation, in discussion during a conference break

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Views on the Hamburg Summit

Quotes

Since its inception the Summit has played an important role in enhancing cooperation and friendship between China and the European Union.
(Wen Jiabao, Premier of the State Council of the Peoples Republic of China, 13 September 2006)

The Chamber of Commerces Hamburg Summit was a success both nationally and internationally. The Hamburg Chamber of Commerce can be more than satisfied with the course of the second Hamburg Summit China meets Europe.
(Die Welt am Sonntag, 17 September 2006)

To us in China, protecting IPR is both an international obligation and a requirement for promoting Chinas own development and enhancing its capacity for independent innovation.
(Wen Jiabao, Premier of the State Council of the Peoples Republic of China)

You have good know-how but you need to show Chinese partners how it will benefit them.
(Fu Chengyu, CNOOC)

This Hamburg Summit as I understand it is mainly a meeting at which to share thoughts on international economic ties and to exchange experience just as much as fears, hopes, forecasts and suggestions.
(Helmut Schmidt, Die Welt, 14 September 2006)

Last year the EU took over from the USA as Chinas premier trading partner. There is practically no company or business associations that is not backing the several-day Hamburg Summit: China meets Europe intending to improve Hamburgs ties with its twin city Shanghai.
(Handelsblatt, 14 September 2006) (Xu Kuangdi, CFIE)

In making more efficient use of resources China is following the route that all industrialised countries have taken and using relatively fewer resources with increasing prosperity. But these efforts are not enough to master the challenge faced by all countries, industrialised and developing countries alike that of progressive global warming.
(Ernst-Ulrich von Weizscker, University of California Santa Barbara)

Investing in the Chinese market is investing in the future.

(Ulrich Ellerbeck, HSH Nordbank)

Given the swift pace of development in China, this conference in Hamburg is important. It is a good match for Hamburg and for Germany. The event will further intensify relations between Germany and China and ought therefore to be continued.
(Helmut Kohl, 16 September 2006)

What the Chamber of Commerce has now presented is an enormous opportunity for the business location Hamburg making the Chinese with their immense economic potential even more enthusiastic about the city.
(Hamburger Abendblatt, 5 September 2006)

Some countries have converted their industries and now complement the products that China exports, but this conversion has not been undertaken in southern Europe. These discrepancies make it more difficult to speak with one voice on other important issues such as the protection of intellectual property rights.
(Mario Monti, Bocconi University)

Economic development is limited not by financial or human capital but by natural capital.
(Klaus Tpfer, former Director of the United Nations Environment Programme)

This gathering, held every other year in Hamburg, is a kind of Davos of the China trade.
(FAZ, 14 September 2006)

Frank speaking, longstanding commercial and economic ties, the desire for cooperation and understanding and to devise win-win situations were the hallmarks of this second Hamburg Summit between China and the European Union.
(aktuell Asia, 10/2006)

China wants not only to raise its vehicle production but also to make sweeping changes to the structure of its automotive industry. The objective is to have one or two Chinese global players.
(Bernd Gottschalk, German Automotive Industry Association)

In only a few years time China will account for 50 % of the worlds production capacity.

(Ronnie C. Chan, Hang Lung Group)

Summit Speakers

Art of Illumination

Enrique Barn Crespo, Chairman of the Committee on International Trade, European Parliament, former President of the European Parliament, Spain Laurence Barron, President Airbus China, P.R. China Michael Behrendt, Chairman of the Executive Board, Hapag-Lloyd AG, Germany Lutz Bethge, Managing Director, Montblanc International, Germany Ole von Beust, First Mayor of the Free and Hanseatic City of Hamburg, Germany Soledad Blanco, Director of International Affairs and the LIFE programme, European Commission, Environment Directorate General, Spain Cai Weici, Vice President, China Machinery Industry Federation, P.R. China Ronnie C. Chan, Chairman, Hang Lung Group, Hong Kong S.A.R. Heinz Dollberg, Executive Vice President, Head of Asia Pacific Division, Allianz Versicherungs-AG, Germany Dr. Karl-Joachim Dreyer, President, Hamburg Chamber of Commerce, Germany Ulrich W. Ellerbeck, Member of the Management Board, HSH Nordbank AG, Germany Jrgen Fitschen, Member of the Group Executive Committee, Deutsche Bank AG, Germany Fu Chengyu, President, CNOOC, Executive Chairman, CFIE, P.R. China Diethard Gagelmann, Member of the Executive Board, International Procurement, Otto Group, Germany Prof. Dr. h.c. mult. Meinhard von Gerkan, Managing Director, von Gerkan, Marg und Partner, Germany Michael Glos, Federal Minister of Economics and Technology, Germany Prof. Dr. Bernd Gottschalk, President, German Association of the Automotive Industry (VDA), Germany Guan Tongxian, President, Shanghai Zhenhua Port Machinery Co. Ltd., P.R. China Guo Wei, President, Digital China Holdings Ltd., P.R. China Dr. Richard Hausmann, President & Chief Executive Officer, Siemens Ltd., P.R. China The Hon Robert Hawke AC, former Prime Minister of the Commonwealth of Australia Ed Hotard, Chairman, Monitor Group, P.R. China Prof. Jean-Christophe Iseux, Special adviser to People's Government of China, Director, Institute of World Economy, People's University of China, P.R. China Jin Yun, Chairman, Shanghai Pudong Development Bank, P.R. China H.E. Ian Kemish AM, Ambassador of Australia to the Federal Republic of Germany Steffen Klusmann, Editor-in-Chief, Financial Times Deutschland, Germany Dr. Helmut Kohl, former Chancellor of the Federal Republic of Germany Lee Kuan Yew, Minister Mentor, Republic of Singapore (via satellite) Liu Changle, Chairman of the Board and CEO, PhoenixSatellite Television Holdings Limited, Hong Kong S.A.R. Jutta Ludwig, Delegate, German Delegation of Industry and Commerce,

Beijing; Executive Director and Board Member of the German Chamber of Commerce in China, P.R. China Dr. Werner Marnette, Chairman of the Board, Norddeutsche Affinerie AG, Germany H.E. Prof. Dr. Mei Zhaorong, Honorary Director, Institute of World Development, State Council of China Prof. Dr. Mario Monti, President, Bocconi University, Milan, Italy Peter Rieck, Member of the Management Board, HSH Nordbank AG, Germany Alfred Th. Ritter, CEO, Alfred Ritter GmbH & Co. KG, Germany Prof. Dr. Eberhard Sandschneider, Otto Wolff-Director of the Research Institute, German Council on Foreign Relations Germany, Germany Dr. Rainer Schfer, Head of Country Risk and Emerging Market Research, Dresdner Bank, Germany Helmut Schmidt, former Chancellor of the Federal Republic of Germany Nikolaus W. Sches, Conference Chairman, former President, Hamburg Chamber of Commerce, Owner of F. Laeisz Shipping Co. Dr. Margot Schller, Deputy Director, GIGA - Institute of Asian Affairs, Germany H.E. Amplanavar Selverajah, Ambassador of the Republic of Singapore to the Federal Republic of Germany Dr. Theo Sommer, Editor-at-Large, Die Zeit, Germany H.E. Dr. Volker Stanzel, Ambassador of the Federal Republic of Germany to the Peoples Republic of China Prof. Dr. h.c. Horst Teltschik, Chairman, Teltschik Associates, Germany John Thornhill, European Editor, Financial Times, Great Britain Prof. Dr. Klaus Tpfer, former Under Secretary General United Nations, former Director General of the United Nations Office at Nairobi (UNON), former Executive Director of the United Nations Environment Programme (UNEP) Dr. h.c. Winfried Vahland, Executive Vice President of Volkswagen Group, President & CEO Volkswagen Group China, P.R. China Prof. Dr. Dr. h.c. Ernst-Ulrich von Weizscker, Dean, Donald Bren School of Environmental Science and Management, University of California Santa Barbara, USA H.E. Wen Jiabao, Prime Minister of the Peoples Republic of China Wong Wai Shing, Vincent, Joint Managing Director , Kerry EAS Logistics Limited, Hong Kong S.A.R. Xie Qihua, Chairwoman, Baosteel Group Corporation, Chairperson of Presidium, CFIE, Chairwoman, China Iron and Steel Association, P.R. China H.E. Prof. Xu Kuangdi, Vice Chairman, CPPCC, President, Chinese Academy of Engineering, Chairman of CFIE, P.R. China Yang Yuanqing, Chairman of the Board, Lenovo Group Ltd., USA Zhang Guangsheng, Vice Chairman of the Board, Shanghai Automotive Industry Corporation (SAIC), P.R. China Zhang Yue, Chairman of the Management Board, Broad Air Conditioning, P.R. China Zhao Xizheng, President, China Electric Council, Chairperson of Presidium, CFIE, P.R. China Zhu Yanfeng, President, China FAW Group Corporation, Chairperson of Presidium, CFIE, P.R. ChinaEconomics, Columbia University, USA

The City Hall and the Chamber of Commerce, two of the four buildings illuminated by HSH Nordbank during the Hamburg Summit

ed C Meets Blue E. This striking shorthand symbol for the Hamburg Summit: China Meets Europe was impressively evident around the city. While garlands of red Chinese lanterns gave the Alster and its bridges a little Asian flair, the major Hamburg Summit venues were basked in a blue light.

From the City Hall to the Hamburg Chamber of Commerce, people were able to admire important city buildings in a new light. As he had done two years earlier enabled by the support of the Exclusive Sponsor HSH Nordbank AG, Hamburg-based artist Michael Batz and the bank once more transformed the

central Hamburg Summit venues with hundreds of floodlights into a sea of blue in the corporate colour of the sponsor. In the truest sense of the word the Hanseatic city was shown in a favourable light and so did justice to the Hamburg Summits importance for relations between Europe and China. <<

<<

@ Selected speeches are available at www.hamburg-summit.com

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