New Trade Agreements with China Boosts Joint Research
In one more step towards boosting Israel’s economy, Prime Minister Netanyahu recently met with Chinese officials during a five-day state visit to the far East superpower. He sees strong trade ties with Chinese businesses that will boost Israeli exports as a vital key to a strong and secure future. He also hopes that building relationships between Chinese and Israeli companies will advance joint research and development in the fields of water technology, health and alterative energy sources.
New Chinese Protocol Favors Israeli Trade
One of the agreements signed by Prime Minister Netanyahu and Li Keqiang, his Chinese counterpart, offers Israeli exporters extra financial protection, which increases currency risk coverage to both sides from $1.35 billion to $2.05 billion. According to Netanyahu, the market in China is so huge that Israel’s economy can significantly benefit by only a slight increase in the market share. China has tightened its economic ties with Israel by revising its protocol, which now offers state backing for long-term export contracts. This change decreases financing costs for exporters and gives Israel’s companies working abroad more of a competitive edge. For instance, last year alone an extra $300 million worth of protection was available for water-saving technology exports.
Strengthening Israel’s Economy Through Exports
In a recent statement, Netanyahu noted that Israel’s economy has outperformed the majority of Organization for Economic Cooperation and Development (OECD) countries and even throughout an unprecedented world economic crisis its unemployment levels are at the lowest level in the past 30 years, He hopes that with the new agreements with China in place, trade with that country will increase from the current $8 billion to $10 billion annually.