Israel-China task force to be launched
The development of trade relations, research and development, and joint
bilateral investments will contribute to economic growth in both countries.
Ties between Israeli and Chinese companies, encouraged and supported by both
governments, is of decisive importance for Israel.
(Communicated by the Prime Minister's Media Adviser)

The Prime Minister's Office Israel-China task force, led by the National
Economic Council and the Israel Export Institute will be launched today
(Monday, 30 March 2015), at the China-Israel Cooperation Conference at the
Dan Hotel in Tel Aviv. For the first time, there will be a dialogue on China
combining the business sector, academia and government in order to discuss
the challenges and successes in the expansion of bilateral commercial ties.

National Economic Council and Israel-China Task Force Chairman Prof. Eugene
Kandel said, "The expansion of bilateral economic ties will have
far-reaching macro-economic effects on the Israeli economy. The dramatic
increase in the magnitude of Chinese investments in Israel in 2014 led to –
and will continue to lead to in 2015 – the establishment of new Israeli
companies, the creation of new industries and sectors in the local economy,
the development of products for the Chinese market and the establishing of
Israel's status as an enterprising and innovative force in Asian markets.
The development of trade relations, research and development, and joint
bilateral investments will contribute to economic growth in both countries.
Ties between Israeli and Chinese companies, encouraged and supported by both
governments, is of decisive importance for Israel at a time when the global
economy as a whole is moving eastward."

Israel Export Institute Director General Ramzi Gabbay said, "The Chinese
market is a strategic target for Israeli exporters. China's need to continue
upgrading its technology infrastructures constitutes an opportunity for
Israeli companies especially in fields that the Chinese government has set
as development targets such as: Water technologies, the environment, medical
equipment, high-tech industrial equipment, motor vehicles, software, etc.
The Israel Export Institute has set for itself the goal of assisting Israeli
exporters in forging relevant business links in order to break into the
Chinese market."

Bilateral relations received impetus from Prime Minister Benjamin
Netanyahu's visit to China in May 2013. At his meeting with Chinese Prime
Minister Li Keqiang, it was decided to establish a task force to advance
economic ties between Israel and China. The team works in cooperation with
the Chinese National Development and Reform Commission in order to make it
easier for Israeli and Chinese businesspeople to do business together.

In May 2014, the ministerial committee on China affairs, chaired by Prime
Minister Netanyahu, approved a comprehensive action plan to advance and
expand bilateral economic ties with the goal of doubling the magnitude of
Israeli exports to China within five years to approximately $5 billion per
annum.

The inter-ministerial task force is advancing a three-tiered multi-year
plan. The first tier deals with building a business climate that includes
the development of Israeli professionals with a Chinese orientation,
expanding bilateral air and tourism links, facilitating the issuing of entry
visas to Israel and strengthening government representation in China. In
this context, in November 2014, a fourth Israeli consulate was opened in
China, in Chengdu, the capital of Szechuan province; this is the first
Israeli consulate in western China.

In the first half of 2015, a Foreign Ministry-led training program focused
on doing business in China will open for Israelis with bachelor's degrees in
order to develop personnel to work in the Chinese market and promote
bilateral economic cooperation. The second tier will deal with providing
support and government sponsorship for major projects and will include
advancing joint business projects, providing financing and assistance,
Israeli-Chinese working groups to coordinate economic cooperation and
initiating joint projects with the Chinese government.

One of the projects being carried out in this tier is the
government-to-government "Water City" project to build a holistic water
system based on Israeli technology in the city of Shouguang.

In the second half of 2015, the Chinese and Israeli task forces will begin
operating a joint program to provide support, advice and exposure for
Israeli companies that are working with Chinese businesses in order to
promote wide-ranging business projects.

The third tier is focused on investments and technology development and
includes activities to expand the magnitude of Chinese companies'
investments in Israel in order to enhance mutual recognition and joint
interests. To this end, the task force and the Economy Ministry Chief
Scientist are formulating a plan to encourage Chinese investments in funds
focused on Israeli technology for the Chinese market.

Israel Export Institute Data on Developments in Israel-China Trade (not
including diamonds):

Israeli trade (imports and exports) with China in 2014 was approximately
$8.52 billion, a 4% increase over 2013. Exports in 2014 amounted to
approximately $2.57 billion, the same as in 2013. Imports amounted to $5.95
billion, a 5% increase over 2013.
.............................................
China is Israel's fourth largest export target in the world and its first
largest in Asia. In the past two years there has been a turning point in
exports to China, with the relative weight of the previously dominant
electronic component, chemical and mineral sectors declining (from 71% in
2012, to 66% in 2013, to 62% in 2014) in favor of other less centralized
sectors.