Japanese audio-visual equipment manufacturer Eiki Industrial Co Ltd has established a strategic partnership with a Hong Kong company to tap into the vast business opportunities in the Chinese mainland ahead of its accession to the World Trade Organisation.

Eiki’s senior managing director Tohru Imai said the partnership with Hong Kong company Vega Technology had boosted sales of its overhead projectors and other audio-visual equipment to the mainland by 30-40 per cent in the past two to three years. “It is a very strategic fit. Eiki is in production while our Hong Kong partner is the marketing and sales distributor. Vega Technology knows the China market very well and three years ago we knew we had made it in the mainland when we received orders from schools and government departments.”

Mr Imai said the Osaka-based company had no plans to set up a sales office in the mainland, unlike in the US and Europe. “We don’t know the China market and we have an excellent partner in Hong Kong.” The key to the partnership, Mr Imai added, was trust and synergy. “This is a win-win situation. We complement each other very well. Hong Kong companies are the natural partners for Japanese companies entering the mainland market, enabling the Japanese to utilise Hong Kong’s know-how in dealing with the mainland.”

Managing partner of Vega Technology Laurie Wong said Hong Kong acts as an important bridge for overseas companies to access the mainland market because “we understand the mainland market, we speak the same language and we also understand how overseas companies work.”

Japan is Hong Kong’s third largest trading partner. In the first eight months of the year total trade between Japan and Hong Kong amounted to more than HK$178 billion (US$22.8 billion). Hong Kong purchased mainly Japanese semi-conductors, telecommunications equipment, computers and electrical apparatus. Japan bought major items such as clothing, toys, games, sporting goods and footwear from Hong Kong.

For more information see TDC’s vertical portal on Hong Kong’s electrical and electronics industries.