There is a new generation of building relationships between private investors and Chinese companies on the one side, and companies in the Israeli high-tech industry, on the other side. The Chinese-Israeli connection mirrors the first days of the strategic relationship that has developed over the years between America and Israel.
Over the next 10 years the Chinese-Israeli economic activity is expected to grow and expand along the chain of command in the spheres of know-how and technology. This collaboration is reflected in the surge of Chinese investments in venture capital funds; the rise in direct investments in Israeli high-tech companies; the growth in acquisitions of Israeli high-tech companies by the Chinese and the establishment of Chinese R and D centres in Israel, and in joint academic projects.
Anyone who visited China in recent years could not ignore the might exhibited by the Chinese economy, as evidenced in the momentum of growth, construction and implementation of technological solutions on an unprecedented scale. China seems to have skipped several technology generations toward the center stage of state-of-the-art technology. The urbanization processes, involving the concentration of hundreds of millions of Chinese in swiftly built and fast-growing cities, are bound to require technological solutions in transportation, communications, energy and water supply and health services. Within a short period, China has established itself as the second economic power in the world after the United States.
Recently, we see privately controlled Chinese companies (although still reliant on government support) seeking to enter the global markets on the basis of a business model similar to that employed by the Americans — by means of dollar investments outside China. The Chinese government is increasingly allowing private ownership of businesses and properties, and enabling overseas investments. Yet, such investments have to be officially approved first, and are often subject to various scope conditions and limitations. Anyway, the process, slow as it may be, is radically reshaping Chinese business management.
This newly adopted global orientation of the Chinese economy (as against the domestic business activity, conducted in the local currency of China) opens a new opportunity for strengthening Chinese-Israeli cooperation. After all, taken together, Israel and China account for a quarter of humanity.