Industries in south China are being urged to take advantage of Macao's special relationship with Europe to get into markets there.

Macao has close trade relations with the European Union (EU). It has an easy access to global market information from 250 information centers in the EU, receives financial aid from the EU and enjoys low tariff rates for its exports to Europe.

Chen Guanghan, an expert with the Guangzhou-based Zhongshan University's Hong Kong and Macao research institute, is quoted as urging businesses in south China's Guangdong Province to form joint ventures with their Macao counterparts, as co-operation between Guangdong and Macao moves to a government level from December 20,

with Macao's return to the motherland.

Chen said high-tech enterprises and those producing high value-added products should, in particular, move in this direction. This is likely to give them greater access to breakthroughs in science and technology.

"Many foreign countries impose fewer restrictions on Macao concerning its introduction of the world's high and new technologies," he said.

Macao's manufacturing industry has been dominated by garments and textiles, Chen said, adding this withering sector has been exerting pressure on the development of Macao's economy as a whole.

However, the time would soon be ripe for high-tech enterprises in Guangdong to join forces with more of Macao's enterprises, he said. Reversely, Macao's preferential policies for domestic enterprises should help the province's high-tech industry.

Yue He, an economics teacher at Guangzhou-based Jinan University, said that Guangdong and Macao should pay more attention to the service trade to help improve co-operation.

Macao's tertiary industry institutions, including those related to banking, labor exports, tourism and consultation, may set up more branches in the province and vice versa, he said.

He noted that closer links in the industry will help to pave a smooth way for healthy cooperation.