Israel will set up and operate two permanent trade centers in two Chinese provinces. A special steering committee comprising Accountant General Dr. Yaron Zalika and Ministry of Industry, Trade and Labor director general Raanan Dinur will pick the sites. The trade centers will ensure a permanent commercial presence of Israeli companies in China.
The Ministry of Industry has declared China a preferred export target, alongside India, Mexico, and Brazil.
Under the plan, two Chinese trading companies, one in each province, will be chosen by tender by the end of the year. Each company will receive a low flat fee, mostly paid by the Israeli government and the rest by Israeli companies, to cover overhead costs. The Chinese companies’ profits will come from “success commissions” paid by Israeli exporters for new contracts. The model was devised by the steering committee, together with commercial attaches and foreign banks financing export contracts to China.
In addition to the upgrading of a financial protocol with the Chinese government, reciprocal insurance has been expanded, and financial coverage for Israeli export contracts to China has been granted. The estimated boost to Israel’s export potential to China is several hundred million dollars.
By the end of the year, Minister of Finance Benjamin Netanyahu is also expected to sign a financial protocol with India, similar to the one signed with China.
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005