The German Ambassador to China Dr Volker Stanzel says Hong Kong is a gateway to China and a hub for German companies in the region

Hong Kong is still the gateway to the Chinese mainland for a lot of German companies especially for the newcomers, said the German Ambassador to China, Dr Volker Stanzel.

 

In a webcast with the Trade Development Council, Dr Stanzel said many new companies do not feel safe with the legal system they confront on the mainland

 

"Hong Kong has a safe and reliable legal system and people speak English. Hong Kong has in the past 10-15 years become a hub for German companies in the region including South-east Asia, North-east Asia, all the way to Japan. I see companies with headquarters here managing not just business in China - that would be the old gateway role - but the whole region," he said.

      

Preferred base of operation

 

With more than 550 German companies, the majority of which are small and medium sized enterprises (SMEs) establishing their bases in Hong Kong, the city remains the preferred choice to operate from, he added.

 

Dr Stanzel said in the next decade, there are three big areas for German industries in China - in environment, energy and transport.

 

"The Chinese Ministry of Rail has set a target of building another 30,000 km of rail and to upgrade existing rail connections in China. German companies have contributed with high-speed trains like the Maglev (magnetic levitation), new technology and more traditional rail systems. We're well placed to help in both new rails and upgrades."

 

One of the biggest gainers for German industries is in the automotive sector. "German automotive companies went to China early and in the last five years I see that it has paid off. Competition now is very severe, the environment has become tougher and it is a lot more difficult to make money but German automotive industries are well placed because they invested in China early."