China: A development full of Far Eastern promise

To Tim Moore, the rapidly developing Chinese economy is "like a train - you either jump aboard or you get run over". He and his company, the Cambridge-based technology consultancy Scientific Generics, opted for the former - with great success. Not only has SGAI Tech, the joint venture formed with the Hong Kong company Automatic Manufacturing, helped increase the consultancy's sales by about 10 per cent, it has also won one of the categories in last year's Cathay Pacific Awards, which promote business links between Britain and China.

The original move was, says Dr Moore, prompted by the toy manufacturer Hornby and other clients who wanted the company to develop a manufacturing capacity in the Far East. He and his colleagues decided to base the operation in Hong Kong rather than China itself because being in the former colony offered better protection for its intellectual property. The Hong Kong government has laws stemming from its capitalist heritage meaning it is possible to erect "practical barriers" to copiers. China, however, is still grappling with its move from a communist state, where "everything, including knowledge, had to be shared," explains Dr Moore.

The Cambridge operation still handles market knowledge and understanding, high-tech development and similar roles. But increasingly the detailed aspects of the design of products, ranging from consumer gadgets to items used in industry, are carried out in Hong Kong, which is only about an hour away from the factories that make the finished articles.

Dr Moore sees this as a benefit because the drive to cut costs of recent years has meant that the two sides of many operations have been separated by oceans.

And in keeping with Moore's growing confidence in the rising quality of Chinese manufacturing, SGAI is developing its links with China by opening an office in Shanghai.

Companies that are making similar strides in their business dealings with China or Hong Kong can enter the Cathay Pacific Awards. Details are available through the website www.cathaypacificawards .co.uk and the closing date for entries is 31 October 2006. Winners will be invited on a week-long trip to China and Hong Kong, where the activities will include business masterclasses and seminars.