For business, green can be black in profitable future

Commitment to environment will bear fruit, businesswoman says

The Chinese government's commitment to environmental protection will ultimately benefit the economy and promote business with the rest of the world, says Alexandra Voss, delegate and chief representative of the Delegation of German Industry and Commerce Beijing.

Voss has seen China's economic progress firsthand, having studied and worked in the country for nearly 15 years, and she understands the country's struggle for sustainable development.

Pollution has plagued China for decades, and in recent years has been particularly bad and widespread.

"Germany's experience over the past decades proves that economic growth and environmental protection are not necessarily opposed," she says, adding that in the 1960s and 1970s Germany faced similar problems in its industrial regions.

To tackle air pollution, Beijing announced in January that it will ban the construction of new oil refining, steel, thermal power and cement plants as well as the expansion of existing projects.

"Measures against environmental degradation certainly decelerate growth in short term, but at the same time they are the prerequisites for sustainable growth in the future," Voss says.

China's new business fields will grow, increasing demand for niche products and creating new jobs, she says.

"Developing and utilizing new technologies for environmentally friendly growth will help increase energy savings and reduce carbon emissions."

China's 12th Five-Year Plan (2011-15) seeks to achieve a more balanced approach to growth and development, with greater attention to the environment and sustainable development. Green and low-carbon sectors have been identified as the core of a new industrial strategy and an important pillar for growth.

The plan offers an opportunity for China and Germany to work together and for foreign companies to take part in the greening of the economic powerhouse, she says.

"It is a great opportunity for the Chinese government and businesses to obtain the technologies, know-how and strategies Germany once leveraged to fight and prevent air pollution."

In fields like electromobility, building insulation and recycling management, Sino-German cooperation will greatly help China become more environmentally friendly, she says.

Voss visited China for the first time when she was a student of Chinese studies at Cologne University. During summer holidays she traveled through China with a backpack. After studying at Sichuan University for a year on a German scholarship program, and after several other short visits, she took up long-term residence in China in 2001.

In Wuhan, Hubei province, she worked on a project to promote small and medium-sized enterprises and was responsible for cooperation with local chambers of commerce and industry.

After about a year the project moved to Beijing. In 2006 she became chief representative of German Industry and Commerce in Guangzhou, and in 2011 took over the management of German Industry and Commerce in Beijing.

"The organization's assistance and in-depth expertise are valuable to German companies that are new to China and need help in getting established," she says, adding that it also works as a point of contact and information for Chinese companies that are interested in doing business with Germany.

About 4,500 German companies operate in China. Of these, about 60 percent are members of the chamber, which supports member companies by providing market information and practical advice.

"German Industry and Commerce in Beijing has been implementing projects and activities on environmental topics to support technology cooperation between the two countries," Voss says.

Many German companies excel as global technology leaders, especially SMEs, she says. When they operate in China they bring technology and work closely with Chinese partners to foster innovation.

Environmental protection is an example of where this is happening. "Germany has companies that can offer the products and solutions that China needs to achieve its ambitious goals," Voss says. "Many of them are market leaders for integrated environmental protection in industrial production and are eager to share their know-how and experience with their Chinese partners."

German companies believe challenges such as climate change and urbanization can only be tackled using modern technological solutions.

Voss and German Industry and Commerce have held many seminars, workshops and construction training programs throughout China.

"Topics such as electromobility or energy efficiency are at the top of our agenda, too," Voss says.

The Chinese government's commitment to new reforms is impressive, but considering the problems, the changes cannot happen overnight, she says.

Persuading local governments to implement new laws and regulations will require time, she says. "They will need to realize the importance of deep reforms to ensure the long-term economic and political success of their regions."

The central government in Beijing has set the direction for a prosperous future, promising to open more industries for participation by private companies and to minimize subsidies for state-owned enterprises.

These measures will encourage organic business competition, ignite innovation and result in long-term cost reduction, she says.

German businesses in China appreciate these steps because they foster a level playing field for all companies conducting business in the country.

According to the organization's annual business confidence survey, chamber members are optimistic about their businesses in the coming years. In 2012, 22.4 percent of respondents said they perceived their business outlook to be improving. This year the figure rose to 40.5 percent, showing more confidence in the development of the Chinese market.

"I would like to stress again that China is not only a profitable manufacturing base or just a market for selling products, but also a partner for technology collaboration," Voss says.

A good business partnership should embrace two technologically strong parties, which is why Germany is eager to promote "Invented in China" solutions, she says.

In recent years. more and more Chinese companies have gained experience and become global players in innovation. Voss believes Germany acknowledges this development and is highly interested in China's innovative capacity.

China and Germany are closely connected and indeed depend on each other to a large degree. China is Germany's most important trading partner in the Asia-Pacific region. Germany is the biggest trading partner of China and the largest investor to China in the EU.

Over the years, German and Chinese companies have developed a successful and mutually beneficial relationship: German companies have supplied know-how and technology that Chinese companies have used to cater to their own customers.

"This complementarity will continue in the coming years, especially in many of the strategically important technologies," Voss says, adding that the collaboration will foster economic growth and increase competition and innovation in both countries.

Philipp Neumann contributed to this story.

zhangchunyan@chinadaily.com.cn