Titory.
As a result, confidence in Hong Kong remains high.
11. As a general rule, companies should as far as possible try to ensure that they send their own representatives to China to deal direct with the Chinese. But for the smaller firms, who may not have the resources to devote to the direct method, Hong Kong is a useful source of trading expertise. Such companies could consider (amongst other options) engaging Hong Kong companies to act as their agents in China thereby taking advantage of the linguistic and cultural affinities that exist between the Chinese of Hong Kong, whom these agents employ, and the Mainland and the generally easier accessibility enjoyed by Hong Kong Chinese. Hong Kong traders may be in a particularly good position to assist in setting up triangular trading arrangements as a means of stimulating export opportunities. And while Peking remains the centre for all major policy decisions, the devolution of a certain degree of responsibility to the provinces (particularly Guangdong and Fujian) has opened up the prospect of trade at provincial level which people in Hong Kong are well placed to exploit. Companies should however select Hong Kong agents or associates with care and seek the advice of the British Trade Commission before committing themselves.
12. A note of warning should, however, be sounded. British firms tackling the China Market for the first time should seek advice on the real opportunities which exist. China remains very short of foreign exchange; China's overall imports in 1979, worth £7,300m despite substantial growth were still below the level of Hong Kong's overall imports of approximately £8,000m. Moreover, commercial discussions with the Chinese are almost invariably protracted and time-consuming, requiring considerable financial and manpower resources with no guarantee of success. Exporting into China requires a major commitment; in a recent despatch from Peking, HM Ambassador warned, "Those whose approach is only half-hearted would be best advised to look to easier markets nearer home". Bur, if British exporters are able to improve their percentage of the Hong Kong market, this visible sign of their competitiveness would not be lost either on customers in China or on Hong Kong entrepreneurs operating in China who may be looking for British partners. The success of the Japanese and the Americans in the Hong Kong market may well have contributed to their success in China.
13. British companies seeking advice in Hong Kong should contact:
The Senior British Trade Commissioner
British Trade Commission
China Trade Unit
9th Floor Garmon House
12 Harcourt Road
HONG KONG
China/Hong Kong Unit December 1980
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