In 2005: China was Israel’s largest trade partner in Asia

The Ministry of Industry, Trade and Labor’s Foreign Trade Administration reported last week that in 2005 Israel-China bilateral trade totaled $2.99 billion.
 
Israeli imports from China was up 20.2 % in 2005 to $2.26 billion. In contrast, exports to China totaled $725 million, 5.7% less than in 2004.
 
Officials of the Ministry argued last week that the decline in exports of Israeli made goods can be directly attributed to the Chinese government’s efforts to cool off the domestic economy, in view of high demand.
 
The officials added that the decline in exports can also be attributed to the fact that
Chinahas the world’s lowest production costs therefore a large number of Israeli firms prefer to set up shop in China, rather than export goods to it.
 
It was noted that several Israeli high-tech firms and agricultural equipment companies set up production shop in China in recent years.
 
The Ministry of Industry, Trade and Labor’s Foreign Trade Administration predicted last week that China’s economy will continue to grow in 2006. The prediction is largely based on the fact that China joined the World Trade Organization (WTO), and the large-scale projects being carried out ahead of the 2008 Beijing Olympics and World Expo 2010 in Shanghai.