Like everyone else, Hong Kong is struggling with the worldwide slowdown in business activity. When the recovery begins, Hong Kong might expand with a little sparkle.

A special administrative district of China since the handoff from Great Britain 12 years ago, Hong Kong has a tariff-free agreement with China. In certain sectors, it can export to mainland China without duties, giving some of Hong Kong's trading partners an advantage, Donald Tong, the district's economic and trade affairs commissioner for the United States, explained in a San Antonio presentation Wednesday.

One global product Hong Kong wants to emphasize is wine. "With 7 million population, there is only so much that people in Hong Kong can drink," Tong told about 50 people attending a Free Trade Alliance San Antonio luncheon.

Hong Kong has signed agreements with numerous nations — including France, Spain, Italy and Australia — to become a wine hub for mainland China, with its 1.3 billion population.

"I know you produce wine in Texas," Tong said.

He's also visited with Mayor Julián Castro during his visit, part of a trade promotion swing that includes Austin, Houston and Dallas. Tong stressed Hong Kong's low tax rates and its continuing investments to improve transportation systems.

"We are always looking for new opportunities," Tong said, adding:

"Despite our small economy, we are the 30th-largest destination for Texas' exports. In 2008, the state of Texas exported over $1.26 billion worth of goods to Hong Kong — ranking third amongst all U.S. states after California and New York. The top exports to Hong Kong were computers and electronic equipment, chemical products and transportation equipment."

Tong recognized San Antonio-based Rackspace Hosting Inc., which a year ago opened a 9,500-square-foot, $20 million data center as its Asian base for worldwide customers who do business on the Internet.

Rackspace Chairman Graham Weston said the company chose Hong Kong because English is predominantly spoken there to conduct business.

"You also, in 30 minutes, can take a train to a major city in China," Weston said. "Hong Kong is a perfect jumping-off point for China."