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Tuesday, March 31, 2015
CHINESE "WATER CITY" OFFICIALS TO VISIT ISRAEL FOR FIRST TIME

CHINESE "WATER CITY" OFFICIALS TO VISIT ISRAEL FOR FIRST TIME

Delegation of 20 Representatives from Shouguang Headed by Mayor, Government
Officials and Other Water Industry Executives Arrives for First Visit to
Israel

JERUSALEM. March 30th, 2015 – The whole world is thirsty for water -
developed and developing countries are facing increasingly growing
industries and there is a deep understanding that the world is facing a
crucial water challenge.

China, a developing market experiencing rapid growth, faces several water
challenges: increasing urbanization demanding the construction of huge
infrastructure including water pipes and sewage systems, supply of fresh
water for consumption, streamlining and economizing the use of limited water
supplies, etc. This is also a country where polluting industries are
developing rapidly and must face global regulation and integrate
environmental technologies.

In light of these challenges and given the proven capabilities of the
Israeli water industry, Israeli Prime Minister Benjamin Netanyahu initiated
the establishment of the 'Water City' during his visit to China in 2013. The
initiative was presented to the Chinese authorities which adopted the offer,
choosing one model city in China to showcase how Israel's water technologies
can help improve municipal, agricultural and industrial water
infrastructures. To implement this project, a joint Chinese-Israeli working
group was established with Amit Lang, Director-General of the Israeli
Ministry of Economy at the helm.

After examination by a team of experts, Israeli Minister of Economy Naftali
Bennett announced during his visit to China in November at the head of a
delegation of Israeli water company officials that Shougouang was the city
chosen to showcase Israel's prowess in this field.

Shouguang is a city of one million residents in the province of Shandong
(second-largest in China, with 100 million residents), and serves as a model
for 500 other Chinese cities, which will also be able to adopt the
technologies after their implementation in Shouguang.

This week (March 29th -April 1st), a delegation of twenty representatives
from Shouguang is visiting Israel. This is the first working visit by
representatives of the city. They are set to scout for water technologies
and companies that will be integrated into the municipal infrastructure as
well as in the industrial and agricultural companies located in Shouguang.
Later, the Foreign Trade Administration at the Israeli Ministry of Economy
will launch a competitive process to choose the companies most suitable for
the project, which will be funded by China.

The Israel NewTech program at the Israeli Ministry of Economy, responsible
for implementing the project on Israel's behalf, is organizing the visit.
The delegation is set to tour Israeli water companies and water facilities
and hold meetings with government agencies such as the Israeli Water
Authority. Additionally, the delegation will take part in a seminar held at
the Israel Export Institute on March 30th, where the challenges Shouguang is
facing and goals of the project will be presented. The seminar will also
include meetings with Israeli companies.

Amit Lang, Director-General of the Israeli Ministry of Economy and Chairman
of the joint 'Water City' working group, said: "The 'China Water City'
initiative is a palpable example of developing Israeli trade ties with China
and the importance of this target market in the eyes of the Israeli Ministry
of Economy. The Chinese market holds many possibilities for Israeli industry
in several sectors, and the Israeli water sector has huge potential for
large-scale projects. We are proud to be the leading ministry in this
project, which opens a door for the Israeli water industry in China in
particular and the entire world in general."

Ohad Cohen, Head of the Foreign Trade Administration at the Israeli Ministry
of Economy, said that the 'Water City' project is another aspect of the
multifaceted activity the Ministry of Economy is undertaking to encourage
economic ties between Israel and China: "The economic growth in China over
the last few decades presents a golden opportunity for the Israeli market
and for Israeli companies. The Ministry of Economy increased the number of
trade attachés in China from one in 2008 to a network of five Israeli trade
missions covering all of China and helping Israeli companies build a network
of trade ties that lead to breakthroughs as significant as the 'Water City'
project. China presents many opportunities that go beyond the traditional
export of Israeli goods, including multifaceted, long-term projects such as
the 'Water City.' The common denominator of all these cooperative endeavors
is the implementation of Israeli know-how and technology where Israel enjoys
a qualitative edge worldwide and in which the Chinese show great interest,
such as communications, medical equipment, environment, and others."

Ziva Eger, Director of the Foreign Investments and Industrial Cooperation
Division at the Israeli Ministry of Economy, said: "Israel is known as a
world leader in the water industry, both in developing national water
systems on a policy and regulatory level as well as in creating cutting-edge
technologies. Projects in the water sector are large and complex by nature,
especially in a country as big as China. The ‘Water City’ initiative can
pave the way for Israel's water industry to penetrate the Chinese market and
is one of the central avenues of cooperation between government and business
in Israel and China."

According to the Foreign Trade Administration in the Israeli Ministry of
Economy, in 2014 Israel exported goods worth $8.9 billion to China
(including Hong Kong) – an 8% increase over 2013 – and imported goods at a
value of $10 billion (12% more than in 2013). In fact, after the US and the
EU (with which Israel enjoys free trade agreements), China (with which
Israel does not enjoy such an agreement) is Israel's third most important
trade partner.
The Foreign Trade Administration at the Israeli Ministry of Economy is the
authority responsible for advancing Israel's international trade and export
policies. It operates through 41 trade missions located around the world.
The trade missions help Israeli exporters find partners and business
opportunities in the market in which they operate.

The Foreign Investments and Industrial Cooperation Division at the Israeli
Ministry of Economy is the government body leading the field of foreign
investments and reciprocal purchasing. Advancing foreign investments and
economic cooperation includes locating investors from abroad and
accompanying them in Israel, mapping and promoting specific business sectors
in the Israeli economy for foreign investors and making regulations and
trade impediments transparent in order to promote a policy conducive to
investments. The Division works to position Israel's economy as an
attractive global destination for investment and cooperation, while
implementing government strategies and national priorities and via ongoing
and intensive cooperation with other units of the ministry, other ministries
and relevant government agencies.

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