CEOE's director, Council of Foreign Promotion, Jose Garcia-Morales, says if Spanish SMEs want to establish a foothold in China, he would advise them to set up joint ventures with Hong Kong companies

Director of CEOE's Council of Foreign Promotion, Jose Garcia-Morales, said Hong Kong should be the entry point for Spanish companies wanting to invest in China.

"The services sector in Hong Kong is of very high quality and Hong Kong knows how to manage mainland companies. I would encourage any Spanish SME wanting to do business in China to get a Hong Kong partner for cultural and language reasons," said Mr Morales.

On a recent visit to the Pearl River Delta (PRD) in southern China, Mr Morales gleaned first hand knowledge of how two companies with foreign participation - information technology company Picochip and GDC Entertainment - use Hong Kong's platform to enter the China market and export to global markets.

Winning formula

"This is the new reality in the PRD and it is a winning formula especially if you export goods through Hong Kong's ports which are good facilitators."

Mr Morales heads CEOE's draft on "Plan China" working together with the Spanish Department of Industry, Tourism and Trade. He added much more needed to be done to create a higher level of awareness of Hong Kong in Spain. "Hong Kong has changed to services and value added activities and this must be imparted to Spanish SMEs. We intend to use Hong Kong as a bridge to be more active and reinforce our activities in the China market."

CEOE founded in 1977 is the top Spanish organisation for businessmen with a membership of one million public and private companies representing all productivity sectors and different regions in Spain. It also actively promotes Spanish businesses in foreign markets and maintains exchanges with other countries on investment initiatives.

CEOE is co-organising the Spanish Roadshow with the Hong Kong Trade Development Council in Madrid on 29 September. Entitled: "Hong Kong: Turning China into Opportunity", the event offers practical advice and guidance on capturing business opportunities in one of the world's biggest markets.

Related links
CEOE 
Hong Kong Trade Development Council