Israel, China sign agreement worth $500m. to boost Israeli exports

Under the framework of the latest agreement, Israeli banks will finance government-backed long-term credit agreements with Chinese importers purchasing Israeli goods.

By EYTAN HALON
Updated: DECEMBER 4, 2018 06:05
Prime Minister Benjamin Netanyahu and Chinese VP Wang Qishan attend the Committee on Innovation in Israel-China Foreign Ministry (photo credit: GPO/KOBI GIDEON)
Prime Minister Benjamin Netanyahu and Chinese VP Wang Qishan attend the Committee on Innovation in Israel-China Foreign Ministry
(photo credit: GPO/KOBI GIDEON)
An Israeli-Chinese financial protocol agreement seeking to boost Israeli exports to China and worth $500m. was signed on Monday by Accountant-General Rony Hizkiyahu and Chinese assistant Finance Minister Xu Hongcai.
The protocol, the fourth of its kind between the countries, provides an insurance platform for expediting Israeli exports through the provision of government export guarantees. The new protocol comes as existing guarantees worth $1.3 billion are close to being fully utilized.
Under the framework of the latest agreement, Israeli banks will finance government-backed long-term credit agreements with Chinese importers purchasing Israeli goods.
Since the first bilateral protocol was signed in 1995, more than 340 transactions worth $2.1 billion have been completed under the program in the fields of health, agriculture, renewable energy, education and more.
“The signing of the financial protocol enables the expansion of the volume of Israeli exports and the establishment of innovative Israeli technologies in the large and developing Chinese market,” said Hizkiyahu.
“Under the fourth protocol there are simplified conditions regarding experience and capital required by Israeli exporters competing in protocol tenders, in order to enable the entry of smaller exporters into the operations. The signing of a fourth protocol in 20 years attests to the close and ongoing cooperation with the Chinese Ministry of Finance.”
The Finance Ministry expects the latest protocol to advance exports in a range of fields, including life sciences, and advanced educational and industrial systems that the Chinese government has expressed interested in implementing using Israeli experience and expertise.
“The Israeli economy is currently enjoying its best period, and in order to continue strengthening it, we will need to expand the volume of trade with China,” said Finance Minister Moshe Kahlon.
“The agreement to encourage exports, led by the Accountant General, is an important step in strengthening economic relations between Israel and China. These relations have become stronger in recent years due to great work carried out by the two governments, in order to encourage business operations between the two countries.”