TIMESWHENOUTPLACEMENTWOULDBEAPPROPRIATERealignment of resources requires the adjustment of staff to meet reduced workload.Economics requires the reorganization of one or more business units.Leadership recognizes the need to maketeam adjustments foror function.Individual or individuals no longerthe future corporate direction. 5 REASONS WHY COMPANIES ENGAGE CORNERSTONE1. Cornerstone provides experiencedCareer Consultants & Career Transition Manualsin either Chinese or English for affected employees.2. Increased employee engagement. When the remaining employees see that a company caresfor its people the employees perform better.3. The company reputation goes with the employee and his circle of friends. What will they sayabout the way they were treated 4. Protection for your company brand in the marketplace.5. Cornerstone offers a variety of programs to meet an employer’sneeds. Programscan include Individual tailored Executive Level Outplacement & Professional Level Outplacement. CONTACT US: Simon Wan, Chief Executive Email: simon-wan@cornerstone-group Cornerstone International Group - Career Partners Website: cornerstone-group & cpiworldOUTPLACEMENT CAREER TRANSITION COACHING Organizations engage Cornerstone to transition employees out with dignity and coach them throughthe job search process. REPUTATION ARE WORTH THE INVESTMENTSe pt em be r /O cto be r 2 01 8 3 FEATURES TIMESWHENOUTPLACEMENTWOULDBEAPPROPRIATERealignment of resources requires the adjustment of staff to meet reduced workload.Economics requires the reorganization of one or more business units.Leadership recognizes the need to maketeam adjustments foror function.Individual or individuals no longerthe future corporate direction. 5 REASONS WHY COMPANIES ENGAGE CORNERSTONE1. Cornerstone provides experiencedCareer Consultants & Career Transition Manualsin either Chinese or English for affected employees.2. Increased employee engagement. When the remaining employees see that a company caresfor its people the employees perform better.3. The company reputation goes with the employee and his circle of friends. What will they sayabout the way they were treated 4. Protection for your company brand in the marketplace.5. Cornerstone offers a variety of programs to meet an employer’sneeds. Programscan include Individual tailored Executive Level Outplacement & Professional Level Outplacement. CONTACT US: Simon Wan, Chief Executive Email: simon-wan@cornerstone-group Cornerstone International Group - Career Partners Website: cornerstone-group & cpiworldOUTPLACEMENT CAREER TRANSITION COACHING Organizations engage Cornerstone to transition employees out with dignity and coach them throughthe job search process. REPUTATION ARE WORTH THE INVESTMENTamcham shanghaiPresident Kenneth JarrettVP of Administration & Financehelen ren VP of OperationsshilPi BisWas Directors CommitteesJessica Wu Communications & Publicationsian Driscoll Government Relations & CSR Veomayoury titi Baccam Trade & Investment Centerleon tung insight Senior EditorruoPing chen Associate EditorDoug struB Content ManagerJuliusz mosoni DesigngaBriele corDioli Printing snaP Printing, inc.insightsPonsorshiP (86-21) 6279-7119 story ideas, questions orcomments on insight: Please contactruoping chen (86-21) 6279-7119 ext. 4583 ruoping.chen@amcham-shanghaiinsight is a free monthly publication for the members of the american chamber ofcommerce in shanghai. editorial content and sponsors' announcements are independentand do not necessarily refect the views of the governors, offcers, members or staffof the chamber. no part of this publication may be reproduced without written consentof the copyright holder.shanghai centre, suite 5681376 nanjing West roadshanghai, 200040 china tel: (86-21) 6279-7119fax: (86-21) 6279-7643 amcham-shanghai special thanks to the 2016-2017 amcham shanghai President’s circle sponsors INSIGHT The Journal of the American Chamber of Commerce in Shanghai - September/October 2018 FEATURES Building a Competitive Edge in China’s New Energy Vehicle SectorAnalysis of China’s new energy vehicle market and growth strategiesA Conversation with Automobility’s Bill RussoAuto industry expert Bill Russo discusses the future of cars in China Fast-Moving EV Battery Market: How to Win the Competition In-depth look at China’s electric vehicle battery sector for manufacturers POLICY PERSPECTIVES One Era Ends, Another Begins Fordham Law School’s Carl Minzner writes about China’s age of uncertainty Prepare for the Worst, Hope for the Best Steps for MNC executives to mitigate fraud at their companies JV Disputes in China How to address and resolve joint venture disputes China’s New Negative ListOn the shortcomings of the new negative list 14 16 19 22 MEMBER NEWS New Member Profle With Ram Krishnan, Greater China president & CEO for PepsiCo Board of Governors BriefngNotes from August’s board meeting Event Report Recap of selected events from the past two months Month in PicturesSelected photos from the past two month’s AmCham events EsotericaWeekly Briefngbits and bobs 24 26 27 28 30 05 08 11 4 ww w.a mc ha m- sh an gh ai. org As this issue ofInsightgoes to press,many of our members are laboring underthe added burden of tarifs imposed byboth the U.S. and Chinese governments.The impact of this frst wave of tarifs –US$50 billion from each side – may belimited, but everyone is hobbled by theuncertainty surrounding what directioncurrent trade tensions will take. Will wesee more tarifs Regulatory retaliation byChinese authorities A surprise solution At this juncture, it is difcult to discernhow events will unfold other than to statethe obvious – we face an extended periodof bilateral tension and uncertainty. Howlong this will last is anyone’s guess. Whatis China likely to ofer and what is the bot- tom line for the U.S. government Theseare also key unknowns shaping currentpolitics.Neither government is in a rush to reacha settlement. In the case of the UnitedStates, all indications are that Washingtonbelieves the present stand-of is trend- ing in its direction. The U.S. economy isstrong, the business community’s protestsabout the frst $50 billion in tarifs havebeen manageable, and popular sentimentsupports President Trump’s actions, evenin farm states getting hit hard by China’sretaliation.In Beijing, news about the Chineseeconomy may not be as positive, but Chi- nese leaders have their own reasons to goslow. They may feel that an accommoda- tion with the U.S. isn’t possible – particu- larly regarding Made in China 2025 – andthere is no point in trying to meet themhalfway. They may be waiting for politi- cal pressures to build in the United Statesso that they can get a better deal. Or theymay feel that appearing to cave in to U.S.pressure will trigger a backlash at home.Regardless of the reasons, it is evidentthat much gaming is underway as eachside assesses the dynamics and consid- ers its options. This is not good news forour members, who want a predictable andstable operating environment.President Trump and President Xi willlikely have two opportunities to meet inNovember – at the annual APEC meetingearly in the month and then at the G-20meeting later in the month. Many observ- ers see this as a key opportunity for thetwo governments to sort out their tradedifferences. By the time of those meet- ings, the U.S. mid-term elections willhave taken place and we will likely beoperating under the burden of additionaltariffs – $200 billion from the U.S. and$60 billion from China. This will signifi- cantly increase the pain, potentially hit- ting consumers as well, and could createreal pressure for a settlement. It is against this backdrop that weprepare for our annual Washington, D.C.“doorknock,” three intense days of meet- ings with Administration officials andmembers of Congress on September25-27. This will be our most importantdoorknock in many years and perhapsour most difficult. Important because ofthe current trade tensions and the uniqueperspective we can offer as the frontlineof American business in China. Difficultbecause we differ from the Trump ad- ministration on how best to address ourdifferences with China. We do not sup- port the use of tariffs even if we agree onthe objective of creating a more fair andequal operating environment in China.At this stage, however, the use of tar- ifs is a reality and it has had one salutaryefect – it has gotten Beijing’s attention. The U.S. government should capitalizeon its new-found leverage and pursue astrategy that is constructive and producesthe right results. By right results, I meanan outcome that improves market accessfor U.S. companies in China, eliminatesthe improper use of industrial policy, andreduces the opacity of China’s regulatoryregime. Decoupling of the American andChinese economies, as some in Wash- ington advocate, should not be the goal,even if it were possible, which I doubt. Rather, we should seek a deepeningof commercial ties between the UnitedStates and China. In an era where U.S.- China bilateral relations are increasinglycharacterized by mistrust, a closer com- mercial relationship, with tangible beneftsfor both sides, could only be a positivedevelopment. The business communitycan still play the role of ballast, as wehave often been described in the past.Our enthusiasm for that responsibility maybe defated somewhat by the challengesof working in China, but we are uniquelypositioned to help steady the ship of U.S.- China relations. That’s our objective whenwe visit Washington in late Septemberand I hope that all our members contrib- ute to this efort in their own way.I PRESIDENT’S NOTE KENNETH JARRETT President of The American Chamber ofCommerce in Shanghai 。。。。。。