'While the chamber has been proactive in assisting its members during the economic downturn, it is our members' resilience and positiveness that has been most inspiring during this challenging period,' Ms Kraatz said.

The chamber was first established in Hong Kong as a French business association in 1986. It now has 620 members and is part of a worldwide network of 110 French chambers involving more than 23,500 companies. Crucially, its members ensure business can be conducted despite political tension.

Sour diplomatic relations between France and China have seen protests outside branches of French supermarket giant Carrefour following the interruption of the Olympic torch relay in Paris. Chinese officials also postponed a European Union summit after President Nicolas Sarkozy met the exiled Tibetan spiritual leader, the Dalai Lama, in Poland in December.

Hong Kong is seen as not only a haven from the worst of the global economic crisis, but also from the excesses of nationalist fervour such as whenever mainland bloggers feel aggrieved at any perceived political slights from abroad.

'Being in Hong Kong, we have not been directly impacted by any tensions that may exist between France and China. Having said that, some French companies with regional headquarters in Hong Kong may have encountered some difficulties in contract negotiations with China,' Ms Kraatz said.

Hopes of detente in relations were boosted this month with the visit of former prime minister Jean-Pierre Raffarin at the invitation of the Chinese People's Institute of Foreign Affairs.

'We should realise how serious is the cancellation of the 11th EU-China Summit concerning the current financial crisis,' said Mr Raffarin at a symposium marking the 45th anniversary of France's diplomatic recognition of the People's Republic. Mr Raffarin noted that Premier Wen Jinbao's recent European visit did not include France, and he said 'the French government paid great attention to China's signals'.

In Hong Kong, concerns have primarily rested on the economic crisis and ensuring that deals between locally based French and Chinese companies can continue to be fostered.

'Many of our members have been in Hong Kong for a number of years and have been through financial crises before,' Ms Kraatz said. 'There is a psychological fear factor that is leading to cautiousness, but the fact is that business has not been bad for the majority of our members, even for those in sectors that have been particularly hit by the crisis.

'In the banking sector, for instance, many French banks are faring better than their competitors. One of our member banks is even increasing headcount this year in Hong Kong. Many French companies feel that Hong Kong is a good place to be given the economic climate in Europe.'

Ms Kraatz said the outlook among members for the year was 'obviously gloomy', but this was tempered by a determination that the region would be the first to emerge from the crisis. She added that SMEs had been the mainstay of French-Hong Kong business activity and that French-owned companies would continue to be pioneers in renewable energy and sustainable development.

'The current downturn may slow things down, but may also provide opportunities as companies are increasingly looking for more efficient ways to allocate their existing resources,' Ms Kraatz said.

'Many members in the luxury industry have not been nearly as affected by the crisis as one might have been led to believe. Asian consumers may have to tighten their belts, but they still want their designer bags. Some large-sized and medium-sized businesses are actually benefiting indirectly from the crisis through acquisitions as opportunities arise.'