Israel and China have agreed to expand by US$500 million a bilateral financial agreement that allows for the growth of Israeli exports to China by means of state guarantees in support of long-term export deals.
The protocol establishes a line of credit which is used exclusively to fund Israeli investments in China.
The bilateral agreement increases the financing available to US$2.6 billion. The agreement comes amid growing business ties between the two countries, as the Israeli government encourages companies to export to the East. China, Israel's second-largest trading partner by dollar value, is also looking at an expansion in bilateral trade, which reached nearly US$9 billion last year.
Through the arrangement, Israeli banks offer long-term credit to Chinese importers who purchase equipment from Israeli exporters, transactions that are then guaranteed by the Israeli government. The insurance allows Israeli exporters to successfully compete in the global market, the Finance Ministry said.
Since 2010, 100 export transactions totaling US$100 million have been executed, the ministry noted. Most transactions are in healthcare, including the sale of medical equipment and building and renovation of hospitals. Others relate to education, transportation, communication, infrastructure and agriculture.
