SMEs must show that they can be patient and persistent

But it is possible as some Yorkshire companies, such as Worthington Brown and ATB Morley, are proving.

“You have to show you are genuine and you have to be persistent and patient, otherwise doing business in China will be a frustrating experience,” said Mark Vines, regional commercial director for Yorkshire, the North East and North Lincolnshire at HSBC.

“But there are enormous opportunities in conurbations and perhaps even better opportunities in some of the lesser-known cities.

“Businesses need to do some really rigorous research.”

HSBC forecasts GDP growth of nine per cent in China this year, in stark contrast to the pace of growth in the major Western economies, which it describes as “lacklustre”.

Mr Vines added: “The growth of the middle class in China is phenomenal. With that growth comes an increase in wealth and desire to have branded products. Brands, particularly with Made in England on them, seem to be going down very well.”

Mr Vines, who is based in Leeds, said German businesses have stolen a march on UK companies on exports to China, which is the world’s second largest economy.

Germany exports twice as much to China as the UK, despite its economy being only a third larger, according to recent estimates.

However, Mr Vines said: “A Made in England tag is more sought after than a Made in Germany tag. But we have a little bit of catch-up.”

Mr Vines spent two years in Hong Kong managing a portfolio of trade relationships at the end of the 1990s. He said the biggest challenge facing Yorkshire companies is understanding how the Chinese do business.

“They like to take things slowly,” he said. “They like to negotiate pretty toughly. You need to make sure the terms are what you think they are. You have to look at the paperwork. You have to have a Mandarin speaker. You have to have an agent that you know and trust. You have to build up relationships with factories.”

He urged Yorkshire businesses to switch to the Chinese Renminbi as their trading currency.

Asked how the Chinese perceive UK businesses, he said: “The Chinese admire our brainpower and some of our ideas and intellectual property. Some of our products from the UK are looked at with a great degree of interest.

“They see the UK as a massive market to export to. They like doing business with us. They can understand the English. There are great opportunities both ways. There’s a lot of business we can do between us.”

HSBC spokeswoman Lisa Williams said the Chinese perceive UK companies as providing outstanding quality in services and products and delivering operational excellence.

“They know they are getting something superior which exceeds their expectations,” said Ms Williams. But she added: “There’s a perception that perhaps we don’t always give sufficient care to building relationships at a personal level.”

HSBC has its roots in China. Its initials stand for Hongkong and Shanghai Banking Corporation.