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Innovation and Technology in Hong Kong

• When will Hong Kong Build its First Passive House?• Counterfeiting in Germany

Issue I 2017

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Dear Members and Readers,

It is my pleasure to welcome you to this first edition of our chamber magazine in the year of the Rooster. I am writing to you in my capacity as the incumbent Chairman of the European Chamber of Commerce in Hong Kong. Presidency rotates among the, at present, 15 constituent national chambers, which make up the Eurocham in Hong Kong and this year, it is our turn to manage Eurocham’s affairs.

The year 2017 also marks the 20th anniversary of the Eurocham, the founding of which the German Chamber was instrumental. The occasion will be celebrated with a gala dinner event on 22nd of September, 2017 and I would like to encourage everyone to save the date. Further details will be announced as event preparations progress and we look forward to your support and participation. This anniversary comes at a critical juncture in time, where we find it necessary to send a strong signal of European unity to our partners in Hong Kong and around the region, coupled with our unfailing belief, that open trade borders, and free and pluralistic societies are the cornerstones of universal progress and prosperity for all.

Over the last two decades the European Chamber has come a long way to mature into a highly respected business group and powerful voice of its stakeholders, representatives of over 3,300 members within their national chambers, who in turn employ several tens of thousands of staff in Hong Kong. To protect and further the interests of the member companies of the national chambers, and to promote business relations between Europe and Hong Kong are the Eurocham’s primary tasks and mandate, which we intend to vigorously pursue. At the core of the lobbying activity are the Eurocham’s business councils, namely; automotive, environment, finance, intellectual property and communications. I expressly invite members to seek active participation in the councils relevant to your business.

Members of the German Chamber need not worry about being neglected; rather the opposite is the case. The German Chamber is and will remain as strong as ever and constantly strive to add value to your membership. In tandem with the activities of the Eurocham it will be your year of, as the Chinese idiom goes, Double Happiness!

Yours sincerely,

Horst Geicke Chairman of the European Chamber of Commerce in Hong KongFounding Partner, PAG

Published byGerman Industry and Commerce Ltd. (GIC) / German Chamber of Commerce, Hong Kong (GCC)3601 Tower One, Lippo Centre89 Queensway Hong KongTel.: +852 2526 5481 Fax: +852 2810 6093General Email: [email protected] Website: www.hongkong.ahk.de

PublisherMr. Wolfgang Niedermark

Editor-in-ChiefMs. Monica Murjani

ContributorsMs. Alexandra Bauernfeind Mr. Claudio de BedinMr. Raymond ChungMr. Horst GeickeMs. Anne JacobsMs. Mimi PoonMs. Kat-Yu TangMr. Albert Wong

Design and ProductionMr. Sam Ho

Advertisers in this issueFerrari Logistics (Asia) Ltd.Mercedes-Benz Hong Kong Ltd.Messe Berlin GmbHPro. Q. C. System Far East Ltd.Sixt GmbH & Co. KGTutima (H.K.) Ltd.

©2017: German Industry and Commerce Ltd. / GCC. No part of this publication may be reproduced without the publisher’s prior permission. While every effort has been made to ensure accuracy, the Publisher is not responsible for any errors. Views expressed in GC.comm are not necessarily those of GIC/GCC.

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Committee Members for 2016-2017

PresidentMr. Hans Joachim IslerManaging DirectorH.D. Isler & Co. Ltd.

Vice-Presidents Mr. Andreas BinderPresident & CEOMercedes-Benz Hong Kong Ltd.

Mr. Michael CiesielskiManaging DirectorMGB METRO Group Buying HK Ltd.

TreasurerMr. Eberhard BrodhageGeneral ManagerCommerzbank AG Hong Kong Branch

Committee MembersDr. Michael FuchsDeputy Chairman CDU / CSU Parliamentary GroupMember of Parliament, Berlin

Mr. Horst F. GeickeFounding PartnerPAG

Mr. Tom GerigkManaging DirectorDickie Toys Hong Kong Ltd.

Mr. Malte HautGeneral Manager, Hong Kong, South China & MacauLufthansa Group

Mr. Mark HellmannPresident & CEO, AsiaHellmann Worldwide Logistics Ltd.Asian Regional Headquarters

Dr. Markus KramerPresident, Operating Division, Dispersions & PigmentsBASF East Asia Regional Headquarters Ltd.

Mr. Andreas KulenkampffManaging DirectorTchibo Merchandising Hong Kong LP

Mr. Wolfgang NiedermarkChief RepresentativeGerman Industry and Commerce Ltd.

Mr. Günther S. RittnerSenior AdvisorThyssenKrupp Elevator AGAsia Pacific Office

Company SecretaryMrs. J. Wu-ScharsigSole ProprietorJennifer Wu-Scharsig, Solicitor

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P.1 Editorial

ContentP.5 In Depth

• InnovationandTechnologyinHongKong

• In-SightInterviewwithMr.AlbertWong, ChiefExecutiveOfficer,HongKongScienceandTechnologyParksCorporation

P.12 China•WhenwillHongKongbuilditsfirstPassiveHouse?

P.15 Hong Kong•WestKowloonCulturalDistrict

P.19 Germany•CounterfeitinginGermany

P.22 GCC – Inside•MemberUpdate•NewMembers•Flashlights

P.31 Event Schedule

P.32 People •Mr.ClaudiodeBedin,Partner,deBedin&LeeLLP

Theimagesabovearecreditedto: Kat-YuTang&GICHongKong.

Thecoverpictureiscreditedto: GICHongKong.

Innovation and Technology in Hong Kong

Hong Kong and Shenzhen recently signed a Memorandum of Understanding on Jointly Developing the Lok Ma Chau Loop, where both cities will develop the Hong Kong/Shenzhen Innovation and Technology Park on 87-hectares of land together. The site is about four times larger than the current Hong Kong Science Park, and it will become the largest innovation and technology platform in Hong Kong. At the same time, the establishment of the Hong Kong/Shenzhen Innovation and Technology Park has also resolved the Loop’s long-standing land use issue arising from the Shenzhen River training works back in 1997.

This platform, as a key base for co-operation in innovation and technology research, aims to attract technology-based top enterprises, research institutions and higher education institutes of Hong Kong and Shenzhen, as well as those from other locations on the Mainland and overseas. Other than high-tech R&D facilities, related higher education, cultural and creative, as well as other complementary facilities will also be provided at the site, using about 55.2% of the total area. To create a people-oriented environment by merging with the natural setting and to promote

economic vibrancy, the rest of the 44.8% is proposed to be designated as Open Space, Amenity / Activity Corridor, and Ecological Area.

Hong Kong Science and Technology Parks Corporation, being the dedicated agency to promote innovation and technology development in Hong Kong, welcomes this development. They will be setting up a subsidiary company, which would be responsible for the construction and operation of the Hong Kong/Shenzhen Innovation and Technology Park (HK/SZ I&T Park). The HKSAR Government believes that The Hong Kong/Shenzhen Innovation and Technology Park together with the Science Park and industrial estates will achieve significant synergy and cluster effect.

Government’s AmbitionThe development of the Lok Ma Chau Loop into HK/SZ I&T Park once again demonstrated the focus of the HKSAR Government to further enhance the innovation technology ecosystem. The traditional four pillar industries comprising of; trading and logistics, financial services, professional and producer services, and tourism, have been a driving force of Hong Kong’s economic growth for years. The Government has also identified and promoted six industries to help diversify the local industry structure – Innovation and technology industry is one of these six. With the new presidency in USA and Brexit in Europe, the development of the global economy has a certain amount of uncertainty ahead — diversification is practical.

| Issue I 2017 | 5| www.hongkong.ahk.de / www.china.ahk.de

These six industries have become critical in supporting the four pillar industries. In recent years, the HKSAR Government has been striving to foster the development of innovation and technology, to become one of the driving forces in the economy growth, as a new pillar industry. The Innovation and Technology Bureau (ITB) was established in 2015, and since 2016 instead of under the topic ‘Economy’, ‘Innovation and Technology’ has become a stand-alone topic in the Policy Address. Allen Yeung, Government Chief Information Officer, previously the Chief Corporate Development Officer at the Hong Kong Science & Technology Parks Corporation, supports the idea and urged that the innovation and technology industry should revolutionise the Hong Kong economy as a whole in the future, and Hong Kong should become more attractive for global talent.

Support in Innovation & TechnologyThe Innovation and Technology Commission (ITC), a commission under ITB, is implementing the innovation and technology policies and measures formulated by the ITB. To encourage and assist technology-based companies to upgrade their technological level and introduce innovative ideas to their businesses, the ITC administers the Innovation and Technology Fund (ITF). The ITF supports projects that contribute to innovation and technology upgrading in industry. There are four main programmes under the ITF to cater for different needs: Innovation and Technology Support Programme; University-Industry Collaboration Programme; General Support Programme; and Enterprise Support Scheme (which was launched in late April 2015 to replace the Small Entrepreneur Research Assistance Programme).

As at the end of March 2016, 5,088 projects with a total ITF funding of $11 billion were approved, of which 2,103 are R&D projects. Additionally, in April 2016, the R&D Cash Rebate Scheme was subsumed under the ITF. Introduced by the Government in April 2010, the Scheme aimed to reinforce the research culture among enterprises, and encourage them to establish stronger partnerships with local research institutions through providing cash rebate on applied R&D investments by enterprises.

Co-operation with Mainland ChinaUnder the Innovation and Technology Support Programme, there is also the ‘Guangdong-Hong Kong Technology Cooperation Funding Scheme’ (TCFS). It aims to encourage collaboration between research institutions and industries of the two places. Through combining Mainland’s rich human resources and research strengths with Hong Kong’s capability and experience in applied research and commercialisation, the competitiveness of the industries in both places can be enhanced.

As at end-March 2016, the ITF has funded 238 TCFS projects at the total amount of about $822 million, of which 79 projects were jointly funded by Guangdong/Shenzhen authorities and the HKSAR Government, with about $193 million from the ITF funding. Until May 2016, there were 16 Partner State Key Laboratories in Hong Kong and six Hong Kong Branches of Chinese National Engineering Research Centres.

In co-operation with the HK/SZ I&T Park development, the HKSAR Government will also roll out the Innovation and Technology Venture Fund in the first half of 2017 as planned to attract private venture capital funds, including those based in Shenzhen, to co-invest with the HKSAR Government, on a matching basis, in Hong Kong’s innovation and technology start-ups. The two governments will jointly promote this Fund to private venture capital investment funds in Shenzhen.

Start-up Friendly EnvironmentOther than the funding support from the Government, the Hong Kong Science and Technology Park and Cyberport, being the two largest research parks in Hong Kong, also offer support services and programme to technology-based companies and activities on the other hand. They provide premises and services in the park for applied R&D activities, as well as providing land and premises in the industrial estates for production. For start-ups, they have also incubation programme to support. These incubation programmes differ from park to park and from type to type. They provide, for example, subsidised office space and facilities, management, marketing, and technical assistance, as well as financial aid package in the critical initial years of these start-ups.

Nonetheless, the programmes help to reduce the capital investment of technology-based companies in product design and development, and enable rapid entry of new products into the market at lower cost, turning their research and development deliverables into business. Both parks also provide services for technology-based small and medium entrepreneurs (SMEs). Since they are financially and technologically more mature, the support focuses more on offering office spaces and connecting them and forming partnerships with angel investors, venture capitalists and corporate ventures from Hong Kong, Mainland China and overseas, who are looking for investment opportunities in different technology fields.

With the great support from the Government and advance facilities in both parks, start-ups in Hong Kong are developing quickly. There were nearly 2,000 start-ups in Hong Kong in 2016, a growth of 25% compared with 2015. Among these start-ups, 35% of


the entrepreneurs were from outside Hong Kong. Cyberport, for example, has strived to groom information and communication technology talent and successfully nurtured more than 160 start-ups in the past 10 years. According to the 2015 Global Start-up Ecosystem Ranking, the growth of Hong Kong’s start-up ecosystem ranked fifth globally.

In the recent 2017 policy address, t he Gove rnmen t announced more policies to bring innovation technology ecosystem to the next level. Financially, the Innovation and Technology Venture Fund and the recently introduced Technology Voucher Programme will progressively support and subsidise the investment in technology start-ups and the use of technology by SMEs in Hong Kong. Furthermore, both research parks have each established fund(s) to invest in technology start-ups and increased the quotas for their incubation programmes as well.

In terms of hardware, the Government is co-operating with Parks and Hong Kong Productivity Council to establish infrastructures like Smart-Space, InnoCell and Inno-Space and increasing the provision of those facilities. These facilities provide working spaces or residential units to start-ups and their staffs in different ways and attract local or overseas start-ups to establish in Hong Kong; subsequently facilitate the sharing of practical technologies and skills to promote the translation of innovative and technological ideas into industrial designs or products, and support a start-up culture and re-industrialisation. Government bodies like ITB, InvestHK and the Economic and Trade Offices (ETOs) will actively encourage relevant enterprises to establish their presence in Hong Kong.

Smart CitySmart City is a major strategy under the topic of innovation and technology. The Government is committed to developing Hong Kong into a smart city. To this end, Allen Yeung has commissioned a consultancy study for formulating a smart city blueprint for Hong Kong. “We need to make even greater use of innovation and technology in order to manage our cities better and more effectively.” emphasised Allen Yeung “and involve the public and make life easier for them”.

The Government is using Kowloon East as a smart city pilot area, leveraging people-centric information and

communication technology solutions for the sharing of data to improve the use of resources and enhance the management of pedestrian and vehicular traffic flows. In terms of infrastructure, the Government has launched the Wi-Fi Connected City Programme in the middle of 2016. Since then, the number of free Wi-Fi hotspots has increased by 1,400 to 18,400. In the meantime, private owners of eligible industrial buildings are also encouraged to convert their buildings into data centre. Both actions are aimed to facilitate and enhance the amount of data and a better sharing of data.

Last but not least, a $500 million Innovation and Technology Fund for Better Living will be launched by the middle of 2017 to subsidise innovation and technology projects, which will bring more convenient, more comfortable and safer living to the public, or those addressing the need of specific community group.

Opportunities for German CompaniesWith the rapid expansion of the innovation and technology industry in Hong Kong, there is a lot of potential for German companies to develop and attain a slice of the cake in this area. Although the HKSTP and Cyberport have different focuses, together they focus on five-key technology clusters, namely: Biomedical Technology, Electronics; Green Technology; Information & Communications Technology; and Material and Precision Engineering. All the mentioned areas are some of the German’s leading industries, which means that Germany has a lot of talent and knowledge in all these areas.

To some companies, Hong Kong has not a lot of potential to expand because of the size of the market.


In-SightMr. Albert Wong

Chief Executive OfficerHong Kong Science and

Technology Parks Corporation

GC.comm: What does the recent announcement of the Lok Ma Chau Loop Development mean to HKSTP? Please elaborate on the specific aims that Hong Kong Science and Technology Parks Corporation (HKSTP) have for the project.Mr. Wong: It is an honour for us to be handed a key role in the development of this exciting project. It points to the success of the Hong Kong Science

Park and our contribution to the significant growth of the innovation and technology ecosystem. Our infrastructure is expanding. The number of successful technology companies and R&D commercialisation is increasing, so is collaboration among our stakeholders and support from the public. The project is a timely opportunity that reinforces a comprehensive industry chain and sustains the momentum for our ever-expanding ecosystem. We will build on our proven model in developing and managing the project. We hope to turn this new landmark into a technology & innovation hub where local and overseas companies can tap into Hong Kong’s growing R&D strengths, talent pool, investment interest and manufacturing advantages.

GC.comm: In recent years, the Government of the Hong Kong Special Administrative Region (HKSAR Government) has been striving to foster the development of innovation and technology, to become a new pillar industry in Hong Kong. Do you

Companies tend to look for larger markets like Mainland China. However, this small city has a business-friendly environment, where setting up and establishing a base in Hong Kong for Greater China or Asia is relatively easy. In contrast, setting up in the mainland China has more challenges e.g. culture, language, legal uncertainties etc. Without substantial support, resources and foundation, it is quite difficult to expand in China. As the HKSAR Government is striving to create a start-ups and SMEs friendly environment for technology based start-ups and SMEs — Hong Kong is a more preferred choice for expansion.

Hong Kong’s open business environment has also attracted and gathered many international talents in one place. This densely populated city has many possibilities and opportunities to exchange innovative ideas, knowledge and techniques with other internationally diverse talent. ‘One country two systems’ policy also allows many potential interactions with Mainland China. Therefore, Hong Kong is an ideal place for German technology-based companies, especially start-ups and SMEs, to establish, develop and mature before expanding to other Asian markets. n

This article was produced from the following sources: HKSAR Government, Planning Department (2013) Executive Summary of the Planning and Engineering Study on Development of Lok Ma Chau Loop (“the Study”)

http://www.pland.gov.hk/pland_en/p_study/comp_s/lmcloop/eng/study.html and Hong Kong and Shenzhen sign Memorandum of Understanding on Jointly Developing the Lok Ma Chau Loop, http://www.info.gov.hk/gia/general/201701/03/P2017010300609.htm; Research Office of the LegCo Secretariat, The Legislative Council Commission (“The Commission”), Research Briefs, Issue No. 3 2014 – 2015; http://www.legco.gov.hk/research-publications/english/1415rb03-four-pillars-and-six-industries-in-hong-kong-review-and-outlook-20150209-e.pdf; HKSAR Government, Innovation and Technology Commission, Hong Kong: The Facts - Innovation and Technology, http://www.itc.gov.hk/en/doc/HK_factsheets_I&T_(EN)_(May2016).pdf; HKSAR Government 2017 Policy Address by Chief Executive and Deal signed for HK-SZ tech park, http://www.news.gov.hk/en/categories/admin/html/2017/01/20170103_165616.shtml; owc Verlag für Außenwirtschaft ChinaContact June 2016 and December 2016, Smarte Visionen; HKSTP Latest News: HKSTP welcomes the development of the Lok Ma Chau Loop into a “Hong Kong/Shenzhen Innovation and Technology Park” (01/2017) https://www.hkstp.org/hkstp_web/en/corporate-news-science-park-company-news/latest-news?Alias=hkstp-welcomes-the-development-of-the-lok-ma-chau-loop-into-a-hong-kongshenzhen-innovation-and-technology-park; Make it in Germany website, http://www.make-it-in-germany.com/en/for-qualified-professionals/working/industry-profiles. Photo credits to GIC.


see Innovation and Technology becoming one of the driving forces in economic growth? What and how can Hong Kong do more in achieving this goal?Mr. Wong: The innovation and technology ecosystem is indeed a major driving force of Hong Kong’s innovation-driven economy. HKSTP is dedicated to building a technology-based ecosystem that connects stakeholders, nurtures talent, facilitates collaboration, and drives innovation to commercialisation. Hong Kong Science Park is home to over 600 companies with a working population of over 13,000 people. With the HKSAR Government’s supportive initiatives and our efforts, the start-ups from our Incubation Programmes and partner companies keep gaining recognit ions. Investors are keen to support technology companies and leading enterprises from various industries are becoming more active in applying these home-grown innovations. For our city, it is of utmost importance to continue to nurture our talent through STEM education, foster knowledge sharing and collaboration, and support the open market and boost innovation-driven culture in the society. These will help create greater synergy in our ecosystem and make the sector an even stronger pillar for Hong Kong.

GC.comm: What advantage do enterprises have when setting up their research institutions or R&D centres in Hong Kong compared to other Asian or Greater China cities?Mr. Wong: Hong Kong is at the heart of Asia. Our city is a key intermediary platform between Mainland China and the rest of the world. Under the principles of “one country, two systems”, Hong Kong maintains its international and multicultural characteristics with easy access to Mainland China and the rest of Asia. Our city also offers open market, cosmopolitan lifestyle, large talent pool, world-class infrastructure, robust intellectual property protection, well-established legal and financial systems, and simple tax system. All these make Hong Kong the most ideal test-bed for any innovations and the best scale-up hub for technology enterprises. As Hong Kong’s re-industrialisation gathers pace, Hong Kong provides an ideal environment for R&D, design, and advanced technological manufacturing. Enterprises shall find our city the right place to create prototypes of innovative technologies, highly customisable small-scale production lines; develop advanced technologies in areas such as stem cell and regenerative medicine, smart wearable devices and

robotics, and so on. I foresee new businesses will find immense opportunities ahead. GC.comm: Please explain why your current German tenant(s) were suitable in setting up in Hong Kong under the innovation and technology theme?Mr. Wong: At Hong Kong Science Park, we have a good mix of local, Mainland China and overseas companies, which come from over 20 countries around the world and Germany is among them. There are certainly good reasons for any overseas companies eyeing the growing Asia-Pacific region to establish a foothold in Hong Kong Science Park. Currently, quite a number of German partner companies and incubatees have set up their R&D centres or institutions in our Park. Rohde & Schwarz, an international electronics group, is one of them. The company’s Executive Vice President Dietmar Vahldiek has stated that our Park brings them closer to technology experts, other technology companies, customers and partners in the thriving Asia-Pacific region. They also enjoy good IP protection and technology project collaborations here in Hong Kong. I am sure that other overseas companies will find our ecosystem the right place to fulfil their R&D needs in the region.

GC.comm: Please describe some successful initiatives / schemes from HKSTP that have brought in German companies or any other overseas companies. Mr. Wong: Undoubtedly, German companies, or any overseas companies for that matter, will be able to access the robust innovation and technology ecosystem in Hong Kong, tap the R&D capabilities of our city’s academia, as well as the resources brought about by other well-connected stakeholders, including the industry, Government and investors. In addition to our state-of-the-art R&D offices and laboratories available in Hong Kong Science Park, we offer a full range of value added services to companies through various programmes and initiatives, such as Soft-landing Centre, Incubation Programmes, and technology platform support. These include business matching, technical support, legal accounting advisory and talent recruitment, and more. We are about to pilot an international acceleration programme designed to help overseas companies kick-start their business development in Asia. HKSTP is here to help technology companies develop to the next level. n



When will Hong Kong build its first Passive House?

Worldwide, buildings account for about one third of the global energy use and energy-related GHG emissions (source: United Nations). In Hong Kong buildings consume an incredible 90% of all the city’s electricity and emit more than 60% of the city’s GHG (source: HKGBC).

Much of the rise in energy use by buildings can be attributed to increased demand for cooling and heating. Whereas some time ago people were happily using open windows or fans to cool down their apartments in summer, now ever-growing numbers of people live in air-conditioned dwellings. Mobile heating units replace warm clothes in winter time, and dehumidifiers run around the clock in the humid season. More and more people strive for comfortable dwellings, which are no longer regarded as luxury. This is a worldwide trend: with advancing urbanisation, comfort levels are rising, too.

Yet it is possible to provide the comfort people are longing for and at the same time to reduce the energy consumption of buildings to a more sustainable level. Widely used in Europe and America, a ‘Passive House’ can provide exactly the comfort wished for - at a fraction of the current energy consumption of buildings.

The first Passive House was constructed in Germany in 1991. This single-family, row house proved the feasibility of an idea evaluated academically in previous years before - by Wolfgang Feist during his research stay in Sweden, together with his host Professor Bo Adamson. The two men followed up on this concept and Feist later founded the German Passive House Institute (PHI) to promote and facilitate the idea. In the early years, it was mainly visionaries adhering to the idea, but it soon became more mainstream. With the increasing demand for technology suitable for this type of buildings, prices for improved building elements began to drop, and it became more and more affordable to construct this way. Reduced energy costs quickly offset higher investment at construction phase.

The concept began to be applied to non-residential buildings like schools, offices, hotels and special use buildings; the projects also became bigger in size.

The basic principles of Passive HouseThe Passive House is not a new concept, and the name is also not protected by any copyright. The concept is open to anybody who understands its principles. It is basically a comfort-improved, low-energy building brought to a new level. Its energy demand has been reduced so much that traditional heating or cooling systems are unnecessary. The official definition of a Passive House given by the German Passive House Institute reads as follows:

“A Passive House is a building, for which thermal comfort (ISO 7730) can be achieved solely by post-heating or post-cooling of the fresh air mass, which is required to achieve sufficient indoor air quality conditions – without the need for additional recirculation of air.” (source: Passipedia.org)To achieve good thermal comfort without a standard heating or cooling unit, some principles need to be observed:1. The building needs to be insulated very well. This will

help to keep the indoor comfort steady.

2. The building needs to be airtight, in order to hinder unwanted air exchange with outdoor air - if the outdoor air is too cold, too hot or too polluted.

3. An external shading system needs to be installed to prevent the sun from heating up the building in summer time.

4. Thermal bridging needs to be reduced. This also contributes to a high quality construction standard.

5. The building services need to include a mechanical ventilation unit for most climate zones. Innovative solutions help to further improve the performance of the building.


The Passive House Principles: Improved Building Envelope, Ventilation with Heat Recovery (Source: BASF)

A Passive House can be certified by PHI or their certification partners worldwide to ensure the quality standards are met. For example, this certification helps to make sure that it reaches the required energy standard, and indirectly also provides assurance of the construction quality. Because reaching Passive House standards requires extreme dedication to every detail in construction, Passive House buildings achieve excellent construction quality standards, which often also result in reduced maintenance costs.

Examples in AsiaWhile the first examples of Passive Houses were all small buildings, constructed in northern climate zones, the concept is now spreading all over the planet and is used for large-scale buildings, too. The PHI, among others, has conducted studies on adapting the concept to all climate zones, and several examples have already been constructed and are being monitored.

Korea and JapanAs most of the South Korean and Japanese climate zones are very well suited for this standard, the concept was quickly adopted there, and several Passive Houses have been registered with PHI. Passive Houses are viewed as highly desirable: one Japanese company for prefabricated houses recently extended their portfolio to include this building concept.

Chinese Passive House ProjectsIn China, as the Passive House concept was explicitly recommended in the 13th Five Year Plan, leading to high interest in the topic and several pilot projects. The additional benefit of good indoor air quality has also created interest in the Passive House construction method.

The first ever certified Passive House in China was the Hamburg House in Shanghai, which was constructed in 2010 as an office building. For this showcase building, innovative insulation materials, high performance windows, airtight layers and efficient building services were utilized, none of which were standard in the Chinese market. Therefore, the building also served as a learning project for all of the building experts involved.

The first certified Passive House for the hot summer and cold winter climate of the Yangtze River Delta region in China was a hotel. In addition to being constructed according to the Passive House principles, the building was also certified according to three sustainability standards - China Three Stars Green Building Evaluation Standard, DGNB (German Sustainable Building Certificate) and LEED (Leadership in Energy and Environmental Design).

Design for the new Pre-fabricated Passive House, Slentex® Insulation for Space Saving (Source: Hokushu, BASF)

The Hamburg House: Thin and Efficient Insulation for the External Walls (Source: BASF)

Innovative Neopor® Insulation (Source: BASF)


As there is a high demand for construction according to the Passive House standard, due to energy efficiency targets as well as due to improved indoor air quality, there are currently many projects in the planning phase.

A very interesting development will be the first high-rise Passive House, currently under development in Tianjin. This project recently received Pre-Certification by the PHI. This building will show the adaptability of the Passive House concept to standard building archetypes. It will most likely lead the way from showcase houses to standard construction on a larger scale.

With the growing numbers of buildings constructed according to Passive House principles, the availability of innovative construction solutions is also increasing

and the costs for these solutions are dropping.

When will there be the first Passive House in Hong Kong, Asia’s World City?Although Hong Kong in many areas is seen as a technology and innovation leader, the city has yet to construct its first Passive House. Even though there are sustainable buildings being constructed in Hong Kong, none of these is being built according to the Passive House standard. Considering the extremely high electricity consumption of the building sector, the savings potential is compelling. Adding the advantage of good indoor air quality, it can only be a matter of time until the first Passive House is constructed in Hong Kong – which will serve as a showcase for others to come. The conditions are right: there is a high demand for comfortable, high-quality dwellings; rising awareness of sustainability is making people look for energy-efficient buildings; and the construction sector is technologically ready to take on this new task.

Hong Kong’s climate is suitable for constructing a Passive House. Even a typical Hong Kong high-rise building in a dense neighbourhood could implement the standard, as in contrast to other climates, the building would not need to receive significant solar gains to heat it up in winter. The few cold days in winter could easily be covered in this well-insulated building by the heat recovering unit. In summer, shading in a densely-inhabited area could help the building keep cool, and in combination with good insulation, the air inside the dwellings would stay comfortably cool.

So why has this concept been so well received in mainland China, but not in Hong Kong? Do construction experts believe that insulation works only to keep out the cold? Many examples worldwide prove the opposite. If Hong Kong really wants to position itself as a leader in sustainable construction, it is time for Hong Kong to build its first Passive House. n

This article was kindly provided by Anne Jacobs, consultant for sustainable construction, BASF. Photos credit: BASF.

The Passive House Hotel (Source: BASF)

Efficient spray foam insulation for the roof

Planning for the First Certified Chinese High Rise Passive House (Source: BASF)


West Kowloon Cultural District

Hong Kong, the “city at the fragrant harbour” – the name of the Chinese metropolis as translated, is one of the most exciting cities in the world. Whether the once centre of the opium trade, or the now financial metropolis - Hong Kong is always interesting. Most visitors come to the city at the Delta of the Pearl River for not only the sights. It is its exuberant liveliness, its breath-taking pace, and the rugged juxtaposition of tradition and modernity, which makes this city so attractive.

Hong Kong with its brand motto of ‘Asia’s World City’, must continuously transform itself to play in the same league as New York and London. In this globalised economy it needs to be more than a strong financial sector; it has to evolve in other aspects to keep its competiveness.

To attract more people from all over the world, Hong Kong is building up a cultural district on the West Kowloon development, where among others an art venue, Palace Museum, with its focus on historic China showcasing the Forbidden City is planned.

What impact does this project have on Hong Kong’s economic situation? Can foreigners as well as locals benefit from the project, including some opportunities for German investors?

The Background The West Kowloon Cultural District (WKCD) is one of the largest and most significant cultural projects in the

world. The idea of creating a cultural district in Hong Kong dates back to 1998. Shortly after, the concept of building the WKCD was featured in the Chief Executive’s Policy Address. In 2006, recognising that arts and culture are a vital part of any world-class city’s economic and social fabric, the HKSAR Government established the Consultative Committee on the Core Arts and Cultural Facilities of the District and its three advisory groups. After consulting with the local arts community and related parties, the Government recommended developing various performing arts venues, a cultural institution with museum functions and an exhibition centre; it also recommended developing the district as a low-density harbour-front development with ample open space and close ties to its neighbouring community.

To realise this vision, the Government set up a statutory body - the West Kowloon Cultural District Authority (WKCDA), to take forward this project. On 11 July 2008, the West Kowloon Cultural District Authority Ordinance, Cap. 601 was enacted by the Legislative Council. The Legislative Council also approved an upfront endowment of HK$21.6 billion for developing the West Kowloon Cultural District. A three-stage Public Engagement Exercise was then carried out between 2009 and 2011, where opinions, needs and aspirations of the public were sought. The findings helped shortlist and finalise the Conceptual Plan and subsequently the Development Plan for the District.

About the DistrictStretching across 40 hectares of reclaimed land, the West Kowloon Cultural District is one of the largest cultural projects, blending art, education and open space. Its vision is to create a vibrant cultural quarter for Hong Kong where the local arts scene can interact, develop and collaborate with others. Providing 23 hectares of public open space with two kilometres of vibrant harbour-front promenade it will also include a variety of arts and cultural facilities that will produce and host world-class exhibitions, performances and arts and cultural events.

The Authority is working hard to develop WKCD into an integrated arts and cultural district where people can embrace creativity and enjoy an innovative environment

© 201408 Wikipedia User Wpcpey (Wing1990hk) Wikimedia Commons CC-BY-SA-3.0, West Kowloon Waterfront Promenade.


while appreciating arts and culture, and make the most of their valuable leisure time.

A Development Plan for the District, based on well-received Foster + Partner’s Conceptual Plan, was approved by the Chief Executive-in-Council in January 2013. Overlooking the magnificent Victoria Harbour, the District will begin to take shape over the next decade.

From Planning to RealisationDeveloping this sizable project in phases, allowed the district to be brought to life, starting with the construction of the Xiqu Centre, M+, Freespace, and M+ Pavilion in September 2013.

The Xiqu Centre: the Xiqu Centre will be a world-class arts venue specifically built for xiqu (Chinese opera) performances, and it is also a centre for the production, education and research of this unique art form. Located at the eastern edge of the West Kowloon Cultural District, at the junction of Canton Road and Austin Road, the Xiqu Centre will help preserve and reinvent Cantonese opera and other Chinese traditional theatre for Hong Kong and beyond. It will also showcase different xiqu styles to help nurture new artists and develop new audiences for this remarkable art form. The Xiqu Centre will be opened in 2018.

M+: Following an international competition, the celebrated Swiss architecture firm of Herzog & de Meuron, working with Hong Kong-based TFP Farrells and Ove Arup & Partners HK, has been selected to design the M+ building. Scheduled for opening in 2019, the approximately 60,000 square metres gross floor area will create an iconic presence for M+ and Hong Kong, on the museum’s site that overlooks Victoria Harbour. A strikingly slim, semi-transparent vertical plane, housing education facilities, a public restaurant and museum offices, will rise atop an impressive horizontal slab offering a diversity of well-considered gallery spaces. At ground and lower levels, generous access will be provided to the park and other West Kowloon Cultural District facilities, alongside a public resource centre, theatres, retail and dining, and back-of-

house functions. Of particular note, Herzog & de Meuron — who are also known for their Tate Modern museum in London, Beijing’s Bird’s Nest stadium and other notable designs — have firmly anchored the M+ building on its reclaimed-land site, excavating a new ‘found space’ for largescale installations from around the existing Airport Express train tunnel that runs underneath.

Freespace: along with the Arts Pavilion, Freespace is one of two venues located within the Park at the West Kowloon Cultural District. An intimate and flexible black box theatre that can accommodate standing and seated events, it will offer an exciting new environment for gigs, drama, dance and physical theatre, as well as providing a platform to nurture local talent and energise the local performing arts scene. A black box theatre will provide a flexible performance space accommodating up to 450 seated people or 900 standing. There is also a foyer lounge where local live music will be presented in a bar and cafe environment, and a large lawn, where an outdoor stage will be set up for large-scale events and festivals. Freespace is scheduled to open in 2019.

The M+ Pavilion will serve as the primary site for M+ exhibitions in the run-up to the completion of the M+ building. After M+ opens it will become a new space for artists, designers and organisations to stage independent small-scale exhibitions and events in the Art Park.

A Lyric Theatre, a Medium Theatre, a Centre for Contemporary Performance and Resident Company facilities will be developed as a second batch of facilities, while the remaining venues located in the central part of the district will be built when the integrated basement is completed.

Although the whole project will take time to complete, the WKCDA is already busy organising a wide range of cultural activities on site, such as the flagship ‘West Kowloon Bamboo Theatre’ festival, the cross-disciplinary ‘Freespace Fest’ outdoor festival, as well as the nomadic ‘Mobile M+’ exhibitions.

Photo: © WKCDA

Photo: © WKCDA


What does the WKCD means for the HK Government?The West Kowloon Cultural District (WKCD) project is an important strategic investment of the HKSAR Government to meet the long-term infrastructural and development needs of Hong Kong’s arts and culture. The WKCD is being developed as an integrated arts and cultural district with world-class facilities. It aims to promote the development of arts and culture, meet the growing cultural needs of the public, and strengthen Hong Kong’s position as an international arts and cultural metropolis.

Current SituationOn 23rd December, 2016 then Chief Secretary Carrie Lam signed a co-operation agreement with the Director of Beijing’s Palace Museum Shan Jixiang to build a Palace Museum in the West Kowloon Cultural District. One of the major purposes of the project is to celebrate the 20th anniversary of Hong Kong’s handover to China. The Museum will be placed on the western harbour front with a site area of about 10,000 sq.m. Major facilities will include exhibition galleries, activity rooms, a lecture theatre, souvenir shop and restaurant. Part of the gallery space will be used for permanent exhibitions to showcase relics on imperial life, as well as the history and culture of the Palace Museum. The Hong Kong Jockey Club Charities Trust will donate $3.5 billion to fund the capital cost of the project, covering design, construction and exhibition development costs. The project is scheduled to complete by 2022.

After Mrs. Lam announced the construction of the Palace Museum some discontent among the residents aroused due to the lack of public consultation that led to protests. Additionally, a HK$1.58 million giant poster advertisement in the Hong Kong MTR station, which was spent by the Leisure and Cultural Services Department, exacerbated the situation. To ease the intense atmosphere, the West Kowloon Cultural District Authority presented an eight-week (January to March 2017) exhibition at the City Gallery to introduce the Hong Kong Palace Museum project to the public as part of a public consultation process. Among other things, the public consultation will collect public views on the design, operation, programming, and the learning and interpretation opportunities of the Hong Kong Palace Museum.

Is it an enrichment for the city? For Hong Kong, the West Kowloon Cultural District could well be a cultural and an economic benefit. Due to the multiple art facilities, it could attract more tourists, and Hong Kong may enhance its image to be beyond an immense banking sector, but also a world-class cultural asset. Even Hongkongers themselves will have more choices during their leisure time and can gain more cultural knowledge.

The WKCD could potentially bring positive economic benefits according to the authorities; estimates in the early days were min. of 11,000 and 9,000 job opportunities for Hong Kong residents in the construction and operation stages respectively, and contributions of HK$2.6 bn to Hong Kong’s GDP after the completion of phase 1 core facilities, and for phase 2 about HK$5.28 bn to Hong Kong´s GDP. Plus a larger range of economic sectors like arts and culture, design and publishing, advertising and marketing, and tourism will also benefit from the development.

The development is not without its challenges; environmental, project delays, politics, over budget etc. are widely reported. The project cost went up to $47 billion from the initially approved $21.6 billion, making it already $25.4 billion over budget. The reason for the over-budget is because the estimated cost calculated before did not include some facilities costs and inflation, as explained the board members.


Keeping inflation in mind, the construction cost of the WKCD will continue to increase over time. Although the government is looking deeper into the issue now and revising where possible.

Opportunities for investors Environmental Sustainability is the major priority; the WKCD is a place for everyone, where people can escape from the hectic urban life and come closer to nature and culture. Their motto for environmental sustainability is: low-energy consumption, low-carbon emissions and low-cost.

Since Germany is known for their advanced energy saving technologies, such as solar energy, it would be an ideal opportunity for energy saving / environmental sustainability producers and service providers to involves themselves into the building of this cultural development.

Likewise, The WKCD will also be a good location to promote Germany itself. Germany is also famous for the manufacturing of low emission vehicles. Global brands including Daimler, BMW and Volkswagen have introduced various low emission products lines in recent years, and improved air quality in local areas. German automotive manufacturing can take this opportunity to promote the low emission vehicles and eco-friendly manufacturing materials by setting up regular exhibitions and new models launching in the WKCD.

Germans and Hongkongers also share some of the same interests. They love enjoying their leisure time by spending time with friends and family outdoors, love to go to concerts and festivals, plus having good street foods. Similarly, Germany has a long history with beer and Hong Kong has recently developed in to a dynamic market for beer and wines. German culture is gaining its popularity in Hong Kong, for example, Beertopia was first introduced in Hong Kong in 2012, and the numbers of attendance has reached record high year-on-year. In 2015, the festival gathered over 13,000 participants at the Central Harbourfront. However, due to the limited space and restrictions in Central areas, the organiser has been under pressure to look for spacious and versatile area to hold the massive event. WKCD will be a well-equipped venue for performers and can be a perfect solution to solve this issue by offering a spacious area for organisers and suppliers of outdoor events, In ShortSince Hong Kong is primarily known as a financial and commercial centre, the Hong Kong government is highly interested and invested in diversifying its image and

offer; and is therefore also focusing on promoting its cultural sector. The West Kowloon Cultural District may definitely help to nurture and promote different artists in Hong Kong, and create new opportunities for them, since there are currently limited places for them to develop their career – lacking of arts and cultural facilities, world-class exhibitions, performances and arts events.

From an economic point of view, it could be a great opportunity to boost its economy, and it can help Hong Kong to take a big step towards a creative economy. Not only will Hong Kong gain from the West Kowloon Cultural District, there are plenty of opportunities for foreign companies to invest and profit from it as well. Since Germany is advanced in energy saving technologies, and the German culture is liked by Hongkongers, there are some opportunities for Germans to invest in the new West Kowloon Cultural district. n

This article was based on the following sources of information: Hongkong / Chinas Metropole am südchines ischen Meer http://www.metropole-hongkong.de; West Kowloon Cultural District Authority, multiple webpages, www.westkowloon.hk; West Kowloon Cultural District Authority, Annual report 2015/2016, http://d3fveiluhe0xc2.cloudfront.net/media/_file/wkcda-ar15-16-e-fullset.pdf; Hong Kong SAR Government, Home Affairs Bureau, http://www.hab.gov.hk/en/policy_responsibilities/Culture/wkcd.htm; and Economic analysis Division, Economic Analysis and Business Facilitation Unit, Financial Secretary’s office (2007), Economic impact of developing the West Kowloon Cultural District http://d3fveiluhe0xc2.cloudfront.net/media/_file/wkcd-eia-eng.pdf, Photos are credited to Kat-Yu Tang, West Kowloon Cultural District Authority, GIC and User Wpcpey (Wing1990hk) Wikimedia Commons CC-BY-SA-3.0, West Kowloon Waterfront Promenade.


Counterfeiting in GermanyCounterfeiting and piracy is a growing global issue that affects basically all economic branches and industries. In 2015 alone, German companies suffered a loss of approximately €56 billion due to the pirated products. While companies are often accusing China of being the largest origin of counterfeits, one rarely notices that Germany is a rising land of fraudulent goods. This article will give an insight into the problem of counterfeiting in Germany and the potential harm that it may cause. Corresponding company strategies against copying will also be analysed.

Value of Intellectual PropertyAccording to a survey of 800 companies (by the communication agency fischerAppelt) innovation, inventive talent, research, and development are the most frequently named qualities that are most effected in times of crises.

It’s a long and onerous way from the first idea to a finished product. Intensive research and considerable financial resources are required in the process of product development and its establishment in the market. But what is the appeal for businesses to invest in research and development, if its results and innovations are not protected? That is why respect for Intellectual Property is essential. It is important to give inventing companies the possibility to balance the risks in production by means of effective and protective statutory instruments (e.g. trademarks, patents). As an asset of a knowledge-based and future-oriented society, Intellectual Property provides competitiveness and gives consumers clearness and orientation.

Counterfeits Made in GermanyAs a country of ‘hidden champions’, Germany is more dependent than others on the creativity and inventiveness of its businesses. Therefore, Intellectual Property and its protection are of particular interest. This can be reflected in the number of patents owned by German companies: In 2015, more than 14,100 were approved at the European Patent Office, almost twice as many as France and Great Britain combined. However, according to VDMA’s study on product piracy, the data on counterfeits made in Germany is alarming: Germany comes in second place (behind the People’s Republic of China) among the countries of origin of counterfeit products, with an estimated 24 percent originating in Germany in the year 2016.

While Chinese counterfeits are often assumed to have lower quality and more limited functions, products imitated in Germany can often be considered high-tech counterfeits. Considering the type of counterfeits made in Germany, the assumption in the past was that the illicit activities were limited to soft counterfeits, meaning the illicit copying of the collaterals that come with original products, e.g. user manuals, product images, catalogues etc. The new data forces us to rethink this assumption. Mechanical engineers are speaking of entire machines, components, and parts copied in Germany. These high-tech copies show that the native-bred danger needs to be taken very seriously indeed.

The growing tendency of forgeries in Germany can be illustrated by the example of the Schaeffler Group. In 2013, the Schaeffler Group discovered 26 tons of faked rolling bearings with a value of over one million euros, and destroyed it in Schweinfurt, Germany. This was a spectacular finding of pirated bearings after Schaeffler’s operation in 2007, in which 40 tons of counterfeit bearings were discovered. The majority of these faked bearings are originated from distributors in Europe, including Germany, Italy and United Kingdom. Ingrid Bichelmeir-Böhn, leader of the Global Brand Protection Team at Schaeffler, described that brand and product piracy was no longer a phenomenon that only limited to China or Southeast Europe. Counterfeiting also takes place in front of the doorstep in Germany. The German and European markets are no longer only flooded with pirated luxury or consumer goods, there is also an increase in counterfeit industrial products that are relevant to safety such as rolling bearings.

Digitalisation as New ChallengeWith the trend of Industrie 4.0, digitalisation and connectivity have enormous potential, but it also bring new threats and challenges in the form of product piracy. The risks are all too obvious and wide-spread in the case of additive manufacturing, that is, 3D printing. According to EY’s Global 3D Printing Report 2016, Germany takes a leading role in additive manufacturing: 37 percent of the German companies are experienced in using 3D printing, while 12 percent plan the application of 3D printing in the future. The report also shows that an estimated one billion euros of sales are generated with 3D printing products in Germany. Therefore, additive manufacturing is a profitable business seen by both producers and counterfeiters in Germany. As soon as the forgers and fakers get their hands on the digital blueprint, they are in a position to produce perfect illicit copies. There are now early reports


of ‘Counterfeiting as a Service’, with 3D printing centres specialising in product piracy on demand. As value creation is becoming more reliant on digital data, product pirates and counterfeiters are following suit. They will not be satisfied with simply copying the nuts and bolts or discrete circuitry. Instead, they are setting their sights on the digital templates, the software inside the machines, and the main databases storing the valuable information.

Extent and Impact of CounterfeitingProduct piracy affects not only companies in certain industries. Nonetheless, some industries are more susceptible than others. According to Ernst & Young’s Study on IP Protection, the automotive and mechanical engineering sectors are most vulnerable to the infringement of intellectual property. To take Germany’s mechanical engineering sector as an example, 70% of companies found themselves as victims of product or brand piracy. The most severely affected parts in the German mechanical engineering sector are engines and systems, plastic and rubber machines, and textile machines. The loss of revenue is estimated at a full of €7.3 billion every year, which equates to approximately 34,000 jobs in the industry. On top of the loss of revenue and potential jobs, the companies affected by piracy are suffering other damages that cannot be expressed in financial terms, such as the damage to their reputation and product image, lost competitive advantages, or the impact of illicit warranty claims.

German companies are known for their innovative strength, high quality product and leading R&D. Fraudulent products with poor quality can be detrimental to Germany as a business location. As a consequence of the prevailing product piracy, corporate profits drop. Many companies in Germany are therefore reluctant to invest in R&D as they expect there will be imitations within short time after launching the new products in the market. Indeed, almost 60% of German companies admitted that they already have to confront with the forgers in the first year after the introduction of a new product. And almost one in ten enterprises is already affected by counterfeits within the first month of product market entry. A lack of investment puts additional employment at risk and reduces the tax revenues of the state. National economy is thus adversely affected.

Strategies against CounterfeitingFunction of a single anti-counterfeiting measure is limited. An effective IP protection only works if a combination of various strategies is adopted and a comprehensive and target-oriented protection management system is built. In the fight against counterfeiting, legal measures remain the top priority among the German companies. Registration of relevant intellectual property rights is a perquisite for IP protection. When the emergence of pirated goods is

assumed, the application for border seizure request to customs authorities is the next step of legal action. Sufficient evidence of the counterfeits is required when submitting a border seizure request. Therefore, the establishment of a targeted market monitoring system is vital. A holistic market observation requires monitoring on both the procurement side as well as the sales side.

On the procurement side, there are suppliers who might try to increase their benefits by purchasing fake parts. A risk analysis of the procurement market is crucial, as it is possible that counterfeits provided by co-operating partners will go unnoticed into the production. On the sales side, a mere observation of sales platforms is not sufficient. It is advisable to monitor the co-operation partners (e.g. joint venture partners, distributors or external sales companies) in terms of the possible risks of leaking valuable product information. In the aspect of public relations, many companies shy away from communicating the problem of counterfeiting with their customers as they do not want to upset the potential clients. However, product identification, which make it easier for consumers to distinguish counterfeits from the original, can be an effective means against product piracy. Such information campaigns can raise consumers’ awareness and thus reduce the demand for counterfeits.

Last but not least, it is also recommended to get employees involved in the detection of IP violations. They often have detailed knowledge on their products and are able to identify the forged goods at the first-hand.

Organisation for IP ProtectionThe management in IP protection is becoming more important for corporates. However, according to the Ernst & Young’s study, many companies fail to integrate IP protection adequately into major organisational areas: Only half of the surveyed companies involved the legal department for the prevention of counterfeiting. Also, the significance of IP protection is often neglected in the process of product development in many companies. As a result, there is an increasing risk that the sensitive information, such as product designs or blueprints, falls easily into the hands of unauthorised parties.

Moreover, a robust protection of the IT systems is essential. E-mails and data servers are used to exchange sensitive data, for example, statistics from the research department. These materials are often the target of hacker attacks and therefore require special protection. Nevertheless, only one quarter of companies integrated their IT department actively into IP protection. It is also worth mentioning that a specialised IP department exists only in a few companies. Even for large firms with turnover of more than €500m, only one in five corporates have set up such a department.


Joint effort in combating counterfeitingThe fight against product piracy involves considerable costs for an individual company. An enterprise can hardly implement all defensive measures on its own. Therefore, there is an incentive for companies to seek allies for anti-counterfeiting actions. In the first place, companies co-operate with law firms. Other anti-piracy partners include the associations, external service providers, competitors and the customs. Only around 10% of the companies do not seek external partners in combating product piracy. Through closer co-operation with one another, strengths can be bundled together, lack of know-how for IP protection can be built up, and scarcity in anti-counterfeiting resources can be overcome.

Besides the effort of individual companies, the work of supporting associations and organisations have contributed to a higher level of social awareness towards brand and product piracy. As a leading cross-industrial alliance in the protection of IP, the German Anti-Counterfeiting Association (APM) has been active since 1997. APM is a joint initiative by the German Association of Chambers of Industry and Commerce (DIHK), the Federation of German Industry (BDI), and the German Brands Association. To ensure the effective protection of intellectual property, the APM performs various tasks, for example, seminars, campaigns and events on IP protection, cross-sectoral exchange of experiences and public relations-work on anti-counterfeiting.

Another supporting organisation is Aktion Plagiarius e.V. Aktion Plagiarius e.V. grants annually the negative award “Plagiarius” to those manufacturers and distributors whom the jury has found guilty of making or selling “the most flagrant” (design) imitations since 1977. Goal is to denounce the unscrupulous business practices of counterfeiters, who pilfer intellectual property and pass it off as their own creative achievement.

The trophy of the black gnome with the golden nose is a

symbol for the exorbitant earnings product pirates collect at the cost of innovative companies. This gnome was created to express the German aphorism “to earn oneself a golden nose” meaning to earn a lot of money. The Museum Plagiarius in Solingen, Germany shows the Plagiarius prize winner products from 1977 till now. The collection meanwhile comprises more than 350 product units, i.e. originals of all sectors and their brazen plagiarisms in direct comparison.

Summing upInnovative ideas and products are the basis for companies’ success. In order to combat counterfeiting, companies should establish a thorough management system with a combination of diverse strategies. Also, joint effort helps to raise the effectiveness of the anti-counterfeiting campaign of an individual company and therefore is indispensable.

“Made in Germany” has been an attractive brand, which stands for high quality and reliability. An increasing trend of the counterfeits made in Germany would definitely harm the reputation of this brand. In order to secure Germany’s position as a favourable business location, especially for innovators and developers, the German enterprises should raise their awareness towards brand and product piracy and equip themselves to fight against this business crime. n

This article was based on the following information sources: Aktion Plagiarius: Aktion Plagiarius - Innovation vs. Imitation (http://www.plagiarius.de/index.php?ID=39); Aktionskreis gegen Produkt- und Markenpiraterie e.V.: About us (http://www.markenpiraterie-apm.de/78-1-About-us.html), Our subject: to protect Intellectual Property (http://www.markenpiraterie-apm.de/83-1-Our-subject.html), What is the value of Intellectual Property? (http://www.markenpiraterie-apm.de/99-1-What-is-the-value-of-Intellectual-Property-.html); Ernst & Young GmbH (2015): Intellectual Property Protection Unternehmens- und Verbraucherstudie 2015 (http://www.ey.com/Publication/vwLUAssets/ey-Strategien-fuereinen-wirksamen-Schutz-geistigen-Eigentums/$FILE/ey-Strategien-fuereinen-wirksamen-Schutz-geistigen-Eigentums.pdf); Ernst & Young GmbH (07/2016): EY‘s Global 3D printing Report 2016 (http://www.ey.com/Publication/vwLUAssets/ey-praesentation-3d-druck/$FILE/ey-praesentation-3d-druck.pdf); Germany Trade & Invest: European King of Patents (https://www.gtai.de/GTAI/Navigation/EN/Invest/Business-location-germany/RD-framework/innovative-power,t=european-king-of-patents,did=214212.html); The Schaeffler Group (06/2013): Pressemitteilung (http://ditzinger.de/wp-content/uploads/2013/07/20130628_PM_Produktpiraterie.pdf); VDMA (05/2014): VDMA Study Product Piracy 2014 (http://www.vdma.org/documents/105969/1437332/VDMA%20Study%20Product%20Piracy%202014/b5599f82-4500-4360-8a48-6f3edbbf4508); VDMA (04/2016): VDMA Study Product Piracy 2016 (http://pks.vdma.org/documents/105969/13151789/VDMA_Study_Product_Piracy_2016_final/05f54c3b-7a3a-4eb8-a74b-9f08eece4400).

Plagiarius Awarding 2012, 1st Prize: Lightweight Forged Wheel “AC Schnitzer Type V” Original (Left): AC Schnitzer automobile Technik, Aachen, Germany, Falsification (Right): Distribution: rimlux GmbH, Essen, Germany


Member UpdateThree Marco Polo Hotels in Hong Kong Win Prestigious AwardsMarco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel were each honoured at the 8th Voyage Best Hotel & Resort Value Awards held in December 2016 at the ceremony held in Sanya. Marco Polo Hongkong Hotel was named the Best Business Hotel, Gateway Hotel won Best Design Hotel, and Prince Hotel received the Best Family Hotel accolade.

The three hotels in the Marco Polo Hotels – Hong Kong portfolio impressed in a field of more than 1,000 five-star hotel entrants from around the world. Beijing-based travel magazine Voyage’s high-end readership shares an international vision and a passion to explore the world. An elite judging panel consisting of senior editors and luxury travel experts personally visited each short listed property to evaluate the winners based on a comprehensive set of luxury hospitality criteria. n

Siemens Delivers Power Plant Unit for Combined Cycle Facility in Hong KongSiemens received an order from Castle Peak Power Company Limited (CAPCO) for the delivery of a power block for a new combine cycle in its Black Point Power Station in Tuen Mun, northwest part of Hong Kong. This unit marks the first order for Siemens power plant components from Hong Kong in 20 years. CAPCO is a joint venture of China Southern Power Grid International Limited and CLP Power Hong Kong Limited (CLP Power). Scheduled to be in operation before 2020, the plant will have an installed total capacity of 550 megawatts (MW) to supply approximately 1,000,000 households with electricity per month. Siemens is delivering an H-class gas turbine to Greater China for the first time, and has now sold the total of 80 SGT-8000H units worldwide.

The total order for Siemens includes the delivery and commissioning of the power block, with a single-shaft configuration. The power block’s core will consist of an SGT5-8000H gas turbine, an SST5-5000 steam turbine, a water-cooled SGen5-3000W generator manufactured in Germany as well as the SPPA-T3000 control system. nKnorr-Bremse Completes Acquisition

of KiepeKnorr-Bremse AG and Vossloh AG announced in January the successful completion of the acquisition of the Electrical Systems business unit (Vossloh Kiepe) by Knorr-Bremse. Kiepe is a globally active supplier of electrical traction equipment. Its customer base includes the world’s leading rail vehicle and bus manufacturers.

The company offers efficient solutions and ecologically sustainable concepts for low emission public transportation. Along with eco-friendly drive technology for light rail vehicles, metros and regional rail networks, as well as for battery, hybrid, hydrogen, trolley and In-Motion-Charging (IMC) buses, Vossloh Kiepe also specialises in the modernisation of rail vehicles. The company offers its products and services to mass transit authorities, state and private railroad operators, and their supplier industry. n

Lufthansa Cargo and Cathay Pacific Cargo Now Under One Roof for Frankfurt Cargo HandlingThe relocation of Cathay Pacific Cargo's freight handling into the Lufthansa Cargo Center (LCC) in Frankfurt is a core element of the Joint Business Agreement (JBA) that was announced initially in May 2016 between Cathay Pacific Cargo and Lufthansa Cargo. The merging of freight handling for imports and exports was concluded recently on 17 January 2017 with customers of both airlines will benefit. As part of the co-operation agreement, both airlines are closely working together on network planning and sales as well as IT and service expansion. Both partners have planned to transport the first joint shipments beginning from Hong Kong to Europe. The ability to also book eastbound shipments from Europe to Hong Kong will then follow in 2018. n

Kiepe on board: Light rail vehicle Citylink NET 2012, Karlsruhe, Germany | © VBK

Prince Hotel, Hong Kong (Marco Polo Hotels) awarded the Best City Resort Hotel accolade.


Member Introduction

China EMC Ltd. Suite A, 13/F, Vista Mount Davis52 Mount Davis Road, Pokfulam, Hong KongTel.: +852 9509 [email protected]

China EMC was founded in 2006 as a business development consulting provider serving SME’s looking to grow their business in Greater China. With more than a decade of proven business successes, we bring functional expertise to our clients where they most need it. We are uniquely resourced to serve SME clients from Germany and other European countries who want to set up their business in Hong Kong and position themselves in China and other Asian markets. Our business development services include:• comprehensive research• strategic sourcing• innovative product development• quality assurance and control• general trading• contracting• shipping and airfreight services n

Corporate Member

Ms. M.A. iur./sin. Josefa Warburg

Managing Director

Clearstream Banking S.A / Deutsche Borse Group 2904-07 Man Yee Building68 Des Voeux Road Central, Hong KongTel.: +852 2530 7408Fax: +852 2523 7796www.clearstream.com

Clearstream is a leading European supplier of post-trading services. The wholly owned subsidiary of Deutsche Börse ensures that cash and securities are promptly and effectively delivered between trading parties. It also manages, safekeeps and administers the securities that it holds on behalf of its customers. Over 300,000 domestic and internationally traded bonds, equities and investment funds are currently deposited with Clearstream. n

Corporate Member

Mr. Alton ChanRegional Head,

Relationship Management, North Asia


Linklaters10/F, Alexandra House18 Chater Road, Central, Hong KongTel.: +852 2842 4888Fax: +852 2810 8133www.linklaters.com

Linklaters is a leading global law firm, supporting clients in achieving their strategies wherever they do business. With 29 offices in 20 countries, including Hong Kong, China and Germany, we use our expertise and resources to help clients pursue opportunities and manage risk across emerging and developed markets around the world. n

Corporate Member

Dr. Mathias Bock Registered Foreign Lawyer

(Germany)

Hong Kong Foshan Trader Association Ltd. Flat A & B, 10/F, Wing Shun Building64-66 Bonham Strand West, Sheung Wan, Hong KongTel.: +852 2858 7100Fax: +852 2559 [email protected]

Hong Kong Foshan Trader Association Limited was founded in July 1986. In the beginning, the Association was founded by Hong Kong traders and businessmen, who originate from Foshan. Thereafter, the Association developed and expanded its business to other areas. With its successful enterprising leaders, the Association strengthens the ties between motherland China and Hong Kong and develops business opportunities for its members.

With the effort of previous chairmen and directors, the number of members has been increased. At present, there are over 300 members. Amongst the members, there are industrial businessmen and traders, including successful and famous entrepreneurs; and quite a number of the Committees of Chinese People’s Politic Consultative Conference and honourable citizens from various cities and provinces of China. Apart from having its own office, the Association also owned a shop situated at Shanghai Street, Kowloon for letting out to raise its funds for meeting the expenses of the Association.

The Association recruits youth to the Diamond Youth Team, founded in 1998, for the purpose of educating about the present situation of China.

The Association maintained a close relationship with the city of Foshan. The Association is also one of the founders of The Federation of Hong Kong Guangdong Community Organisations. After the handover from Britain to China, the Association supports the HKSAR to implement its policy according to the laws of Hong Kong, and thereby contributing to the prosperity of Hong Kong. n

Corporate Member

Mr. William LeeChairman


Mr. Lorenz Yeung6/F, The Hive, Cheung Hing Industrial Building12P Smithfield Road, Kennedy Town, Hong KongTel.: +852 2111 9291Fax: +852 2448 [email protected]

Lorenz Yeung is the Sales Director of WINE MOMENTS HK and JOYVINO Ltd since 2013. He is responsible for all sales activities in HK, CN & TW.

WINE MOMENTS is an online shop related to the German platform geileweine.de. All wines are categorised according to the moments in life drinking wine, making the choice easy at a good value. Special spirits complement the online offer as well as social events held monthly. n

Young Entrepreneur Member

Sales Directorc/o JOYVINO Ltd.

(Brand: WINE MOMENTS)

Come join us at our networking event

GC.N@workheld regularly throughout the year.

For more information please contact:[email protected]


27.11 - 01.12.2016Baby and Toddler Products & Educational Toys Trade MissionGerman Industry and Commerce Ltd. Hong Kong (27-29 Nov) and Guangzhou (30 Nov-1 Dec) hosted on behalf of the German Federal Ministry for Economic Affairs & Energy a 5-day trade mission for German SME’s offering Baby and Toddler Products & Educational Toys. The programme included two half-day seminars at which the participating companies introduced their products and services. Site visits to early childhood education and child-mother care facilities, shopping mall scouting, as well as individual business matching appointments were organised in Hong Kong and Guangzhou. The delegates gained insights about the local markets and met with potential business partners in Hong Kong and South China. n

09.12.2016German Chamber Christmas PartyThe 2016 German Chamber Christmas Party was held at Royal Hong Kong Yacht Club, The Poolside, Causeway Bay. Guests, friends, colleagues and family enjoyed the unique location, with delicious food and unlimited drinks. The evening’s entertainment included: food and wine tasting, live music and dancing and games, table prizes as well as door gifts, and an exciting lucky draw at the end of the evening.

The chamber would like to express gratitude and thanks to all the generous sponsors, naming here just the platinum category: BMW Concessionaries, Deutsche Bank HK Branch, Jebsen & Co Ltd. and Mercedes-Benz HK Ltd. n

Flashlight


09.01 - 08.05.2017Joint Chamber Cantonese Classes – Beginner CourseThis Cantonese Classes – Beginner Course offered by the German and Italian chamber is in co-operation with the Hong Kong Institute of Languages. The German chamber is proud to give its members and others the opportunity to learn basic Cantonese. In 16 lessons on every Monday until 8 May 2017 the course will focus on how to communicate in Cantonese and understand basic characters. n

18.01.2017GC.N@workThe German Chamber hosted its first regular networking event – GC.N@work for 2017. GCC Members as well as the German and International communities in Hong Kong and their friends had the opportunity to meet and mingle at the Garden Café Terrace, Conrad Hong Kong, Admiralty. This venue offered a place to be social and enjoy barbecued dishes, freshly prepared and grilled by the chefs, and drinks in a chic and exclusive atmosphere. n

20-29.01.2017Trade Fair Report: International Green WeekWith total of 1,650 exhibitors from 66 countries providing a comprehensive review of the food industry’s global market and of the achievements of agriculture and horticulture, International Green Week (IGW) 2017 attracted over 400,000 visitors to the trade fair and congress, and spending over 48 million euros from 20 to 29 January. GIC organised the China Pavilion at this issue to showcase Chinese organic foodstuffs and promote Chinese culture by bringing traditional Chinese cuisine to IGW. The Minister of Agriculture of People’s Republic of China, Mr. Han Changfu had visited and toured IGW. n


26.01.2017Joint Business Community Luncheon with the Honourable Leung Chun-ying, Chief Executive of the HKSARAfter having delivered his Policy Address to the Legislative Council on 18 January 2017, the HKSAR’s Chief Executive, the Honourable Leung Chun-ying accepted an invitation to speak to the Hong Kong Business Community at this joint luncheon. It was held at HKCEC in Wan Chai. In his speech, Mr. Leung further elaborated on his Policy Address, and answered numerous questions from the audience. n

01-06.02.2017Trade Fair Report:Spielwarenmesse Spielwarenmesse, is the largest toy fair in the world, taken place in Nuremburg Germany. It is the place where international toy markets come together to showcase not only their new products, but also new innovative and premium ideals. 2017 was a record breaking year for Spielwarenmesse, with over 73,000 trade visiting buyers from 123 countries, a 3.2% growth from 2016. GIC as the Hong Kong representative office of Spielwarenmesse, brought over 130 companies to show their products to the world. Over 90% of the exhibitors felt fully satisfied with this professional trade fair. n

08-10.02.2017Trade Fair Report:FRUIT LOGISTICAFRUIT LOGISTICA 2017 marked another milestone in its 25th anniversary year. More than 31,000 exhibitors from 84 countries, and over 75,000 management-level trade visitors from over 130 countries arrived at FRUIT LOGISTICA becoming the best year ever. GIC has organised a China Pavilion with 19 Chinese companies, and all together 60 companies from Hong Kong and China had participated in FRUIT LOGISTICA 2017. Most of the exhibitors were satisfied with the quality of trade visitors and professional business atmosphere in the three days. n

For full coverage of event photos

and GIC activities,

please visitwww.hongkong.ahk.de


16.02.2017InterSME Breakfast Seminar:Handling Crisis and Change as an SMEThis event was organised by the Italian and the Finnish Chambers on behalf of the InterSME Committee, and took place at UniCredit in Central. At this event the three key speakers: Totti Karpela, CEO, Peace of Mind Ltd., Argha Sen, Founder and Entrepreneur, Gormei, and Stefano Passarelo, Managing Partner and Founder, People & Projects discussed how to handle crisis and change as an SME. In addition, real-world advice on specific scenarios and how to best handle them or prevent them entirely was given. n

17.02.2017Joint Breakfast Seminar: Business Outlook 2017: The Impact of Global Disruption on the Hong Kong EconomyIn this joint breakfast seminar of the German chamber, GTAI and KPMG, Achim Haug, Chief Representative of Germany Trade & Invest, and Julian Vella, ASPAC Head of Global Infrastructure of KPMG gave their overview of Business Outlook 2017, considering financial, economic, as well as political factors on a global scale. In addition, they emphasised how German and international companies in Hong Kong are impacted by the fast changing environment and rising challenges of doing business, which initiatives offer in Hong Kong opportunities and where pockets of growth and opportunities are. This informative seminar was full and was held at KPMG, Prince’s Building, Central. n

follow German Chamber of Commerce, Hong Kong on LinkedIn


Upcoming GIC/GCC Events

GCC Date Name of Event Venue

March

22 March 2017 GC.N@Work Tott’s and Roof Terrace 34/F, The Excelsior, Hong Kong

May

16 May 2017 InterCham: Connecting People Cocktail Ballroom, The Mira Hong Kong

18 May 2017 Executive Development Seminar: Managing Emotion and Conflicts GIC/GCC Boardroom

23 May 2017Lunch Seminar: Data Privacy: Refreshing Key Principles and Reviewing New Developments

GIC/GCC Boardroom

26 May 2017 German White Asparagus and Wine Pairing Dinner Conrad Hong Kong Hotel

June

21 June 2017 GC.N@Work FRITES Belgium on Tap, Central

August

09 August 2017 Summer Networking Cocktail The Park Lane Hong Kong, a Pullman Hotel

11 August 2017 Executive Development Seminar: Finance for Non-Finance Executives GIC/GCC Boardroom

23 August 2017 65th InterCham Young Professional's Cocktail Jamie’s Italian, Causeway Bay

Upcoming Trade Fairs

Hong KongDate Name of Event Location

March

21-22 March 2017 Asia Pacific Rail Hong Kong Convention and Exhibition Centre

21-25 March 2017 Art Central Central Harbour Front Event Space

23-25 March 2017 Art Basel Hong Kong Hong Kong Convention and Exhibition Centre

29-31 March 2017 MM&T Materials, Manufacturing & Technology Hong Kong Hong Kong Convention and Exhibition Centre

April

06-09 April 2017 Hong Kong International Lighting Fair (Spring Edition) Hong Kong Convention and Exhibition Centre

13-16 April 2017 Hong Kong Electronics Fair (Spring Edition) Hong Kong Convention and Exhibition Centre

13-16 April 2017 International ICT Expo Hong Kong Convention and Exhibition Centre

20-23 April 2017 Hong Kong Houseware Fair Hong Kong Convention and Exhibition Centre

20-23 April 2017 Hong Kong International Home Textiles and Furnishings Fair Hong Kong Convention and Exhibition Centre

27-30 April 2017 Hong Kong Gifts & Premium Fair Hong Kong Convention and Exhibition Centre

27-30 April 2017 Hong Kong International Printing & Packaging Fair AsiaWorld-Expo

May

16-18 May 2017 Hong Kong International Medical Devices and Supplies Fair Hong Kong Convention and Exhibition Centre

19-20 May 2017 Entrepreneur Day Hong Kong Convention and Exhibition Centre


Point of View A Member’s Point of View

When and why did you or your company decide to come to Hong Kong?My grandparents from both my father and mother’s side were situated in China. My mother and father met in Hong Kong and I was born in Hong Kong. After a number of years of working for international firms, I decided with my partner Dominic Lee, who has been in Hong Kong for a number of years, to set up our firm in Hong Kong.

In your opinion, how have Hong Kong and South China changed since your arrival? The advantage of Hong Kong is that it is able to change, and has always done so for the better. Hong Kong both from a geographic point and the fact that it is a part of China, but has a separate system of law and socio-economic system granted by the Basic Law, puts it in a unique position.

What would you say are the advantages/disadvantages of doing business in Hong Kong?The uniqueness of Hong Kong in all its aspects gives rise to its advantages. The disadvantages put forward on a subjective point of view, when analysed objectively are, in my view, hard to sustain.

How do you see the development of Hong Kong in relation to China in the next years?Hong Kong is a part of China and has a degree of independence that is granted by China, which means that it is able to take advantage of the growth of China whilst maintaining the economic relations based on its special status with the rest of the world.

How well are German companies doing in Hong Kong / South China in your opinion?Generally I believe that German companies with the appropriate management do well in most countries, including Hong Kong, South China and the rest of Asia.

Looking into the future, what are the main challenges facing your work/company?Our challenges are the same as many companies in the fast changing world, with the rider that I believe we are extremely lucky to work in Hong Kong and China, and also to interface with South China.

How long are you expected to stay?Our firm will stay forever. With regards to me personally, I’ll ask my doctor as to what he considers my life expectancy to be and will get back to you in due course.

Thank you for your interview Mr. de Bedin.

Claudio de Bedin

Partnerde Bedin & Lee LLP

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