The fate of the Greek economy has become a matter of huge concern around the world. It's also a significant issue for the 20,000 Chinese people living in the country.

There are about a thousand members of the Chinese Commercial and Cultural Association of Greece (CCCAG), a non-profit organization that was established in 2002 representing all the Chinese merchants in Greece. Many of its members have been pushed to the brink of bankruptcy by economic turmoil in the country, and the burden of taxes and government austerity measures looks set to get heavier still.

"People are cutting their spending on daily expenses more than ever because nobody knows when the government will adopt a new restrictive rule to get more money out of them," said Dony Weng, general-secretary of the CCCAG.

One recent case was the introduction of a new housing tax in October, which significantly raised the rent that Chinese companies have to pay for the offices, stores and restaurants they use.

Chinese businessmen in Greece are paying close attention to the political issues because their lives have been so closely related to the country since they began selling goods from China there more than 10 years ago.

Adapt or die

The business model for Chinese businessmen in Greece used to be based on importing cheap textile and leather products or decorative accessories from China. However, profits from the clothing industry have been squeezed, partly by the appreciation of the yuan against the euro.

So Chinese firms are trying to find new ways of doing business in the country, by exporting goods from Greece back to China instead.

On October 25, CCCAG President Xu Weichun signed a contract with a Greek wine company in order to export wine to China.

Several companies in Wenzhou, Zhejiang Province have signed contracts with Greek wine and olive oil producers to import their products. There is a growing demand for quality Mediterranean products as a growing number of middle class Chinese seek a healthy and more luxurious lifestyle.

Weng has also responded to poor sales in the local Greek market by sending goods back home, red wine in his case. "We just started this business and so far the profits are good," said Weng. "If everything runs well then it could help to make up for the losses in our business in Greece."

Economists also think it's a sensible change of direction. "The domestic demand for high quality products is increasing rapidly. It's a good business opportunity if they know Greek suppliers well and can integrate resources," Liu Shengjun, deputy director of the Lujiazui Institute of International Finance of the China Europe International Business School, told the Global Times.

But some exports from China to Greece are still making money. Li Ang, a businessman from Heilongjiang, has found success in the luxury fashion and clothing industry.

In August, Li opened a fashion store selling quality clothes and bridal gowns to Greek people who can't afford the more expensive European brands. The business is still running successfully.

At the time, Li's investment was considered unusual as nobody wanted to rent offices amidst such turmoil in the Greek economy. But he has his own plan. "I believe there is market potential for selling luxury fashion to new Greek couples," he said. "They spare no expense when buying clothes for their wedding, even when the economy is bad."

The clothes and bridal gowns that Li sells in his store are made in cities like Guangzhou in Guangdong Province in China and offer high quality at a lower price. "Every day, the number of customers coming to our stores is increasing," he said. "So far it's enough to cover the costs, but I am sure it will be much better once the economy recovers."

Xu of CCCAG said that Chinese businessmen are making efforts to find new ways of making money in Greece through diversifying their investment.

Fear for the future

However, there can be no doubt that the situation in Greece remains grim. Weng mentioned some friends of his who run a Chinese restaurant in northern Greece. It used to be so popular that customers had to reserve a seat well in advance for a meal there. "Now there are not many customers, even on the weekend," he said.

Weng also pointed out that there have been several cases of robbery at Chinese business and factories. "Some robbers broke into a warehouse with a stolen lorry and left with a whole truckload of goods worth millions of yuan."

The concern is that if the economic crisis gets worse, it could lead to social turmoil. It's an experience that Chinese businesses suffered in Indonesia following the Asian financial crisis in 1997.

"We just hope we are not becoming targets, which happened in Indonesia in 1997 and caused a great disaster to the Chinese people there," said Weng.

Despite all these difficulties, most Chinese in Greece intend to stick with their businesses. "So long as the situation is stabilized, we believe our business can also recover,'' said Li.

His viewpoint was echoed by Xu Weichun of CCCAG. "As far as the EU is concerned, it won't drive Greece out of the eurozone. If it did, countries like Portugal and Spain could be next," he said.

"It's not easy for us to establish a customer base and social network in a foreign country. We did a good job when the market environment was good years ago. If we give up now, it means all the previous efforts would be wasted," said Xu.