Friday, July 10, 2015
Israel and China Expand Trade Agreements
Israel and China have again expanded trade protocols, the third expansion since 2012. Among other things, the deal insures lines of credit Israeli banks issue for Chinese companies purchasing Israeli goods that helps finance Israeli exports to China.
The new deal expands the protocol by $500 million (about 1.875 billion NIS). This is especially interesting as it was completed in spite of China losing $3 trillion in their recent stock market crash. China obviously has increased its appetite for Israeli products, mainly in the fields of health and medical devices, although education, transportation, communications, infrastructure and agriculture are also included.
“The third expansion of the financial protocol between Israel and China is a further measurement for tightening the relation between the two countries and indicates the success of the protocol in opening the Chinese market to Israeli companies,” Finance Ministry Accountant-General Michal Abadi-Boiangiu said.
“The policy of using state guarantees to support growth-generating targets is reflected in the expansion of the protocol, which will lead to the increase in the Israeli exports, thus benefiting employment, GDP and tax revenues,” she said.
This is seen as an important step towards a free trade agreement, something Israel's Economy Ministry is now negotiating with China. That agreement is expected to significantly boost trade between the two countries, now at over $6 billion per year.
The ministry’s Foreign Trade Administration already has the same number of trade attachés in China as in the United States.