Minority Supplier Development in China

Celebrate the The 2nd Minority Supplier Development China Summit 2010 MSD China National Conference and Business Opportunity Fair !

2010 7 Fall, 2010 Total No.7 Issue The 2nd Minority Supplier Development China Summit 2010 MSD China National Conference and Business Opportunity Fair took place on Sep. 1-2, 2010 at the Tasly International Conference Center in Tianjin. The event proved to be a great success and provided a host of information and opportunities to all those in attendance.
Diamond Sponsor Platinum Sponsor Gold Sponsor MISSION MSD China is Chinas first national non-profit membership organization dedicated to enhancing the development of Chinas minority-owned businesses through connecting minority suppliers to corporations for procurement opportunities on mutually beneficial basis. MEMBERS Dell Inc. Motorola, Inc. Cisco Systems, Inc. Intel Corporation IBM Corporation The Coca-Cola Company The Boeing Company Johnson Controls, Inc. ITT Corporation Tasly Group Co., Ltd. Merck & Co., Inc. Apple Inc. Wyndham Worldwide Corporation Delphi Corporation PepsiCo, Inc. Marriott International, Inc. YCH Group

T h i s y e a r, t h e a n n u a l e v e n t b r o u g h t t o g e t h e r approximately 80 corporate executives from multinationals such as Merck, Dell, IBM, Boeing, Johnson Controls, Motorola, ITT, Marriott, Wyndham, PepsiCo, Delphi, United Technologies Corp, HP, Cummins, UPS, Tyco, YCH, Foxconn, Deere, etc. along with officials from central and provincial State Ethnic Affairs Commission of P.R. of China, officials from the Minority Business Development Agency (MBDA) under the U.S. Department of Commerce, president and international programs director of the National Minority Supplier Development Council (NMSDC), and over 110 minority business owners from China and US. The summit also welcomed several delegations from ethnic minority regions within China including Jiangsu, Guangxi, Yunnan, Jilin, Heilongjiang, Liaoning, Tianjin and Beijing. The two days summit provided a forum in which the latest information, good practices, and ideas on minority business development were shared. During this years Business Opportunity Fair, Chinese minority business enterprises from different parts of China passionately displayed their featured products and actively networked with other participants. Sourcing professionals in attendance were deeply impressed by the products on show.

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Opening Ceremony
As the first local corporation to join MSD China, Tasly Group became a co-organizer of this summit. Yan Xijun, President of Tasly, and Wu Naifeng, CEO of Tasly, welcomed guests from home and abroad. Wang Tiezhi, Inspector of State Ethnic Affairs Commission of P.R. of China, Ximen Shunji, Vice Governor of Peoples Government of Yanbian Korean Autonomous Prefecture, Joset Wright, President & CEO of National Minority Supplier Development Council (NMSDC), David Hinson, National Director of Minority Business Development Agency (MBDA) under U.S. Department of Commerce conveyed their best greetings at the opening ceremony and participated in the ribbon-cutting ceremony together with executives from Dell, Boeing, Johnson Controls, Marriott, etc. Tasly is a positive advocator of supporting supplier diversity program, as well as a pioneering beneficiary of this concept. Now many traditional Chinese herbs vendors in ethnic minority regions have become Taslys suppliers. We are very glad to be part of this family and to undertake Corporate Social Responsibility to contribute to the development of ethnic minority communities. said Yan Xijun and Wu Naifeng at the opening ceremony.

Business Opportunity Fair

Daniel Nardi Executive Director, Asia Pacific & Japan Procurement Global Procurement Merck & Co., Inc. Merck & Co., Inc. is a Diamond Sponsor of the summit. Its the second time for Merck to support our annual conference. As an active corporate member of National Minority Supplier Development Council (NMSDC), Merck has always been giving great support to MSD China since it joined us in July, 2009.

Rick Feng, Asia Pacific Procurement Director of UPS is visiting FIX Recovery Technology Development Co, Ltd., a Manchu Ethnic Minority owned supplier of IBM and is specialized in data recovery.

IBM Booth Left: Michael Robinson, Program Director, Global Supplier Diversity, IBM Right: Tina Wu, AP Supplier Diversity, IBM Global Procurement, Integrated Supply Chain (ISC), IBM

UTC Booth Right 1: John Spiwak, Global Strategic Sourcing Commodity Manager of United Technologies Corporation (UTC) Right 2: Thomas Donnelly, Global Strategic Sourcing Manager of United Technologies Corporation (UTC) Left 2: Eric Vicioso, Director of International Programs, National Minority Supplier Development Council

Business Opportunity Fair

Jackie LaJoie, Director, Supplier Diversity, Merck & Co., Inc. and Catherine Li, Supplier Advanced Quality & Development Manager GSM AP, Delphi Electrical/Electronic Architecture Division are attracted by the exhibits of Ningde Ying Shenghao Gold and Silver Jewelry Co., Ltd, a She ethnic minority owned enterprise.

Ma Jing, Deputy Director of Ethnic Affairs Commission of Tianjin City, and Wang Zaizheng, Deputy Director of Ethnic Affairs Commission of Jiangsu Province are visiting Shanghai Zhihao Textile & Apparel Co. Ltd., a Mulao ethnic minority enterprise, specialized in microfiber textile products.

Yang Fan (Right 2), Deputy Director, Foreign Cooperation Programme Management Office of SEAC is accompanying David Hinson (left 3), National Director of MBDA to visit Miao Ethnic Minority Embroidery Arts Association in Leishan County of Guizhou Province. (Isabelle Yu(left 1), Indirect Purchasing C o u n t r y L e a d e r, C u m m i n s ( C h i na) Investment Co., Ltd, was attracted by the bright and colorful embroidery products.)

Leah Brown, President&CEO of A10 Clinical Solutions is visiting Jilin Huakang Pharmaceutical Co., Ltd., a Manchu ethnic minority owned enterprise from Yanbian Korean Autonomous Prefecture.

Yunnan Weishan Sanyi Tie-dyeing Industrial and Trading Co., Ltd, is owned by Yi ethnic minority. They received the most Active Participant Award of Chinas Ethnic Minority Supplier Market Innovation Program funded by Motorola Foundation.

Exhibitor: Sun Jilin, President of Dandong Chengtian New Energy Co., Ltd.(left 1)

Frank Payne, President & CEO of PQC International, Inc. (middle) is talking with Tong Gaowa (left 1), exhibitor of Liaoning Jiatai Industry Co., Ltd.

Brian Johnson, Director of Greater China and Emerging Markets Leader of Global Procurement of Merck & Co., Inc. is tasting the dumpling of Liaoning Hongda Beef Industry Development Co., Ltd.

Wang Tiezhi, Inspector of State Ethnic Affairs Commission of P.R. of China, and Yang Fan, Deputy Director, Foreign Cooperation Programme Management Office of State Ethnic Affairs Commission are listening to Zhao Erjins introduction about his company CHENGDU FUHE POWER AUTOMATION COMPLETE EQUIPMENT CO.,LTD.

Wang Tiezhi (left 2), Inspector of State Ethnic Affairs Commission of P.R. of China, and Wang Zaizheng (left 3), Deputy Director of Ethnic Affairs Commission of Jiangsu Province, are attracted by the products of Ceramic Crafts Factory coming from Yunnnan Province.

Plenary Session

Plenary Session was held on Sep. 2. Over 200 guests from home and overseas attended this event.

Moderator: Yang Fan, Deputy Director, Foreign Cooperation Programme Management Office of State Ethnic Affairs Commission National Minority Supplier Development Council (NMSDC) in U.S. serves as a platform for purchasing corporations to provide business opportunities to minority suppliers. We should learn this way of supporting minority business development through market mechanism. Most minority-owned enterprises in China engage in processing industry based on local natural resources, and they may not be hightech enterprises, but their local resources are unique in the market with particular features. Wang Tiezhi, Inspector of State Ethnic Affairs Commission of P.R. of China

One year ago, we felt pride as well as great responsibility when the minority supplier development initiative was launched in China by the eleven corporations including Dell, Cisco, IBM, Motorola, Coco- Cola, Intel, Cummins, Boeing, and Johnson Control, ITT, and Tasly. Being the chairman of MSD Chinas first Board of Directors, I witnessed its first step and hard take-off. Michael Yang, Chair of MSD China Board, Vice President & General Manager of Dell Consumer, Great China

Tasly Group has invested totally more than 80 million Yuan in Shangluo of Shanxi Province and Wenshan of Yunnan Province, which is a big investment in Chinas ethnic minority regions. Among our health products, liquor is produced at Maotai, Guizhou Province; tea made from Puer City of Yunnan Province; mineral water is produced at Jingyu, Jilin Province. Taslys investment on the three products in the three minority areas has accumulated over 500 million Yuan. Its our pleasure to cooperate and communicate more with Chinese minority business enterprises to grow up together and join hands to build a bright future. Jack Xu, Logistics Director of Tianjin Tasly Group Co., Ltd.

I strongly believe that China is developing rapidly and China has realized that minority business enterprises development is very significant for the nation and its people. Many opportunities have appeared between China and US, of course, we still have some divergences, but we should try our best to solve those problems that still exist between us through our cooperation. David Hinson, National Director of Minority Business Development Agency (MBDA) under U.S. Department of Commerce

NMSDC and MSD China have to shine a light on the subject and educated the public and private sectors about the driving forces behind supplier diversity and the advantages of supplier diversityI strongly believe that public policy drives private behavior. Joset Wright,President & CEO,National Minority Supplier Development Council(NMSDC)

As a global company, Dell always looks for innovative ways to support business growth in countries where we have customers. Since 2008, the Dell team has transformed supplier diversity from a US domestic initiative to a global strategyChina is one of our fastest growing markets. It is a multiethnic country including 55 ethnic minority groups that make up approximately 10% of the population. These groups occupy 64% of the total land area. Guy Schweppe, V. P. Global Material, Worldwide Procurement of Dell Inc.

Workshops
Workshop : Start a Business in China: Practical Advice from Experts This workshop proved to be a wonderful opportunity for minority entrepreneurs from U.S. to receive advices from experts of foreign companies starting and doing business in China. Julian Turnock, Executive Director & General Manager of Alkhorayef (Tianjin) Investment Management Company, Chief Representative Officer Greater China and Global Supply Chain Director of Alkhorayef Industries Co.(AIC)shared his experience and gave practical advice on key issues like how to make right selections of a mode of entry, location and partners, revenue stream opportunities. Richard Craig, Commercial Officer of U.S. Commercial Service, Embassy of the United States of America in China, elaborated on the essentials for exporting to China. Bruce Geier, President & CEO of Technology Integration Group (TIG) shared his experience of starting and growing his business in China.

(Pictures from left to right) Julian Turnock is sharing his experience with participants. Richard R. Craig is elaborating on the essentials for exporting to China. Bruce Geier is giving presentation.

Workshop : Business Opportunities with Multinational Corporations

Our commitment to supplier diversity inclusion began with our Chairman and CEO J.W. Marriott, Jr. and continued throughout our organization at every level, not only our corporate officers and regional offices throughout the world but also at each hotel which we operate. Philip DeVliegher, Senior Manager, Supplier Diversity, Marriott International, Inc.

Mr. James Wigfall, the Vice President, Management & Procurement of the Boeing Company, gave an overview of the company and some of its procurement practices. He also shared with Chinese minority companies how they could actually get started working with the Boeing company.

Supplier diversity is a corporate strategy from our top managerial level, and our suppliers, clients, and communities are all diversified. Supplier diversity program can help optimize Marriotts performances and achievements. Alex Nagy, Regional Director, Procurement Asia Pacific, Marriott International, Inc.

PepsiCos economic contribution to China has been substantial, and will accelerate over the next 5 years. In china there are many opportunities for us to learn. We should make sure that were adapting our global strategy to local realities. Darric Hall, Director, Strategic Supply Management, PepsiCo, Inc.

Workshop: Certification: Your Gateway to Corporate Procurement Opportunities

Henry Hong, VP-Business Development of ITT China Investment Co., Ltd. is moderating the workshop and he is the chairman of MSD China MBE Evaluation Committee.

IBM has always been a pioneer of embracing supplier diversity program. Ms. Tina Wu, AP Supplier Diversity Manager of IBM Global Procurement, Integrated Supply Chain and also a member of MSD China MBE Evaluation Committee, shared with the audience the successful experience and significant achievement of IBMs worldwide supplier diversity program, and strong commitment of this program in China.

Our suppliers and our diverse suppliers in particular create great innovationto create value to the customer, do on-time delivery and increase performances. Its always heart-warming and exciting to say. Like others we do have vision and mission: to support diverse suppliers throughout the world. Please understand this isnt just something in supply chain, this comes from the president. This is part of the top policy of how we operate at United Technologies. Thomas Donnelly, Global Strategic Sourcing Manager, United Technologies Corporation (UTC)

Merck & Co., Inc. is a global pharmaceutical l e a d e r. E s t a b l i s h e d i n 1 8 9 1 , M e r c k discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. Those certified minority suppliers will become our potential suppliers and can help reduce our cost. Daniel Nardi, Executive Director, Asia Pacific & Japan Procurement, Global Procurement, Merck & Co., Inc.

Business Visit to Chinese Government

Business visit to Ministry of Industry and Information Technology of the Peoples Republic of China (MIIT) Accompanied by Yang Liu, director of MSD China, NMSDC China Mission made the second visit to Ministry of Industry and Information Technology of the Peoples Republic of China (MIIT). Zheng Xin, Deputy Director of SMEs Division of MIIT, gave a warm greeting to distinguished guests. Zheng Xin, Yang Liu, and NMSDC China Mission had a cheerful talk on exploring effective ways of cooperation between small and medium sized enterprises in China and US. Mr. David Hinson, National Director of Minority Business Development Agency (MBDA) under U.S. Department of Commerce, Ms. Joset Wright, President of National Minority Supplier Development Council (NMSDC), and Mr. Guy Schweppe, V. P. Global Material, Worldwide Procurement of Dell Inc., introduced the situation of US minority business development on behalf of government, non-profit organization, and corporation respectively. Afterwards NMSDC China Mission visited China Association of Small and Medium Enterprises (CASME).

Group Photo in MIIT

B r i a n Ti p p e n s , Director, Global Supplier Diversity, Hewlett-Packard Company Friendly handshakes between Zheng Xin and David Hinson

Exchange Souvenir between Zheng Xin and Joset Wright

NMSDC China Mission visited China Association of Small and Medium Enterprises (CASME)

Visit to a Minority Company : Kernel Zhang (Tianjin) Workshop Food Co., Ltd.

NMSDC China Mission members are giving advice on marketing and producing. Accompanied by Ma Jing, Director of Ethnic Affairs Commission of Tianjin City, MSD China and NMSDC China Mission visited a Manchu Ethnic Minority owned Enterprise in TianjinKernel Zhang (Tianjin) Food Co., Ltd. With a long history of more than 160 years, Kernel Zhang (Tianjin) Food Co., Ltd. is an enterprise owned by Zhang family of Manchu ethnic minority who used to provide snack food to the imperial family of Qing Dynasty. Its products include amber sugar coated walnuts and peanuts, milky sunflower seeds, peanut kernel, walnut kernel, melon seeds, pine nuts and cashewnuts kernels, almond, broad bean and green soybean, etc. It has sold its products all over the world such as Singapore, Malaysia, USA, Britain, Canada, Japan, etc.

Madam Chen Jing, Kernel Zhangs Descendant of the Fourth Generation, is leading the guests to visit the production workshop.

Joset Wright, President & CEO of National Minority Supplier Development Council (NMSDC) is very interested in the operation of this minority company.

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Media Report
China and US join hands to establish a platform for cooperation between Chinese minority business enterprises and multinational corporations Meng Hua, Wang Zongkai, Xinhua News Agency/Tianjin Channel Release Date: 2010-09-03 Reproduced by: China Daily/China Channel,China Ethnic News (Translation) The 2nd Minority Supplier Development China Summit 2010 MSD China National Conference and Business Opportunity Fair was held at Tasly International Conference Center in Tianjin on Sep. 1-2, 2010! Led by National Minority Supplier Development Council (NMSDC) and Minority Business Development Agency (MBDA) under U.S. Department of Commerce, sourcing managers and representatives from approximately 30 multinationals and US minority business enterprises participated in this annual grand event, with the aim of promoting business cooperation with Chinese minority companies. Initiated by China Association of Ethnic Economy (CAEE), China Association of Advanced Knowledge Promotion in Ethnic Minority Regions (AKPRO), and National Minority Supplier Development Council (NMSDC) in U.S., Minority Supplier Development in China (MSD China) is established as a non-profit platform with the great support from Dell, Motorola, Intel, and Boeing, etc. Its aim is to enhance the development of Chinas minority-owned businesses through connecting minority suppliers with corporations for procurement opportunities on mutually beneficial basis. As MSD China Board Chair, Mr. Michael Yang, Vice President and General Manager Dell Consumer, Greater China, expressed that from the macroscopic point of view, supplier diversity concept can be promoted among government departments and major purchasing corporations with strong sense of social responsibilities so that a fair, orderly market environment can be established on mutual benefits and national unity, and common progress can be strengthened and facilitated through this non-profit platform. From the microscopic point of view, through this business matchmaking platform MSD China offers, purchasers and minority suppliers can both benefit from global supply chain. Boeing has purchased from minority businesses exceeded $ 4 billion around the world. We are very glad to cooperate with Chinese minority suppliers. The most important standard Boeing requires is that all suppliers must deliver products and services with high quality on time. Once the requirement can be met, it would be possible for those suppliers to be included within the potential procurement list of major corporations. Through supplier diversity program, purchasing corporations and minority suppliers can gain a win-win solution on mutual benefits. Mr. James Wigfall, Vice President of Management and Procurement of the Boeing Company, said during the summit. Ms. Joset Wright, President of National Minority Supplier Development Council (NMSDC), thinks that MSD China established two years ago is developing very rapidly, and she has strong confidence in minority supplier development in China and also highlights the significance of the participation in this program of Chinese government departments and local state-owned enterprises.

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Awarding Ceremony : Chinas Ethnic Minority Supplier Market Innovation Program Funded by Motorola Foundation

Sept.2, 2010 Michael Yang, Chair of MSD China Board, Vice President of General Manager of Dell Consumer, Great China, presented Participation Awards of the Motorola Cup-Chinas Ethnic Minority Supplier Market Innovation Program. Motorola Foundation was established in 1953 and has since then been adhering to social responsibility and commonweal.

List of winners: Ningde Ying Shenghao Gold and Silver Jewelry Co., Ltd. Shanghai Zhihao Textile & Apparel Co. Ltd. CHENGDU FUHE POWER AUTOMATION COMPLETE EQUIPMENT CO.,LTD. Harbin New Century Foods Co., Ltd Heilongjiang Celluon Electronic Products Co. , Ltd Yunnan Weishan Sanyi Tie-dyeing Industrial and Trading Co., Ltd Liaoning Jiatai Industry Co., Ltd Yanbian Alali Food Co., Ltd. Yanbian Limeihanfu Co., Ltd Yanbian University Herbage Pharmaceuticial Co.,ltd Continuous creation and look into the future: Eileen Sweeney, Senior Director of Corporate and Foundation Philanthropic Relations Motorola Foundation

Micheal Yang is awarding the prize to one of the winners, Lin Xianxue, Manager of the Ningde Ying Shenghao Gold and Silver Jewelry Co., Ltd.

Ya n g L i u , E x e c u t i v e D i r e c t o r o f MSD China, is announcing the list of winners.

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Wonderful Moments

How many pleats should one Chinese stuffed bun (Baozi) has?

Challenge Yourself: dancing on a table with Chinese minority friends

Visit to the 2010 World Expo.

Singing and dancing: people are celebrating at the closing ceremony