Science & Technology

Israel and China executed an agreement in a volume of more than NIS 1 billion for the export of Israeli water technologies to China.

On Wednesday, February 29, in Beijing, Minister of Finance Dr. Yuval Steinetz and the Chinese Finance Minister Xie Xuren, signed a financial protocol in a volume of more than NIS 1 billion (US $ 300 million) for the export to China of Israeli water technologies for agricultural use.

The financial protocol is an agreement between the Governments of Israel and of China for setting up a special line of credit for financing trade and Israeli investment in China. The protocol enables the insurance of long-term loans granted to export transactions from Israel on conditions that give the Israeli exporter an edge over his competitors worldwide.

Pursuant to the financial protocol, the Chinese Ministry of Finance will purchase Israeli technologies for the farming communities in the selected provinces. The protocol agreement will enable execution of projects in a volume of more than NIS 1 billion (300 million dollars), in which the Israeli component will constitute at least 50% of the project's value. Integration of the financial protocol into the Chinese five-year plan indicates acknowledgement of Israeli technological capabilities and the importance of the economic and political relations between the countries.

The current protocol joins 3 precedent protocols that have been signed with the government of China since 1995. Altogether, these existing protocols amount to a billion dollars. Under the terms of these protocols, some 220 transactions have taken place in a volume of more than 600 million dollars, most of them in the domain of medical instrumentation and communications. In light of the success of the previous protocols, and due to the Chinese government perceiving the need to promote and develop the economy of water for agricultural use, the Israeli and the Chinese Ministries of Finance have agreed to dedicate the current protocol exclusively to technologies in the domain of water and irrigation.

The financial protocol is one of several tools being activated by the Accountant General to encourage Israeli export. Other export encouragement plans include the activity of Ashra – the Israel Foreign Trade Risks Insurance Corporation, the Top-Up plan that grants guarantees to private export insurance companies, and the Fund for Small and Medium Size Businesses.

Another matter discussed at the ministerial meeting was the possibility of the export of natural gas from Israel to China. The Chinese Minister expressed interest in such a possibility, saying that talks would soon be taking place on that matter.

Business seminar for Israeli water companies operating in ChinaOn Thursday, March 1, after the execution of the financial protocol, the Israeli Ministry of Finance and the Israeli Ministry of Industry, Trade and Labor held a business seminar, in which 16 Israeli companies presented several water technologies to Chinese officials.
Among the Israeli companies were: Netafim A.S. Projects and Technology, Asia Group, Eisenberg Group, Ekpac, Jasmine Group, John Deere Water, Inter-Finsmart Investment, Kaiima, Metzerplas, OTL, Serica, S.I.T.I, TAHAL Group, Medtakin, Talgil.

Israel, China bilateral Trade figuresAccording to the Foreign Trade Administration in the Israeli Ministry of Industry, Trade and Labor, Israeli trade with China in 2011 totaled 10.15 $ billion (excluding diamonds), an increase of 25% compared to the previous year. The trade deficit in 2011 was 4.78 $ billion. Israeli exports to China in 2011 totaled 2.7 $ billion, an increase of 31% compared to the previous year. Components of Israeli exports to China are mainly advanced products in the fields of electronics, media, equipment and machinery, and chemical industry products, diamonds and medical equipment.

English :
www.financeisrael.mof.gov.il
Hebrew : www.mof.gov.il

Source: www.financeisrael.mof.gov.il