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Israel startups tee up to enter Chinese market

By Liu Xuan | chinadaily.com.cn | Updated: 2017-07-13 20:11

Israel, one of the most important global sources of innovative technology, is extending its business map to China as Israel Ministry of Economy and Industry signed with Chinese partners to help Israeli startups enter the Chinese market on Wednesday in Beijing.

The program will assist 10 Israeli startups in coming to Beijing and gaining a better understanding of the Chinese market. The startups will also find appropriate investors, strategic partners and customers through the program to succeed in the local market. This is Israel's first accelerated program landing in China.

Chinese partners include Shengjing, the leading consulting firm for entrepreneurship in China, and DayDayUp, the leading innovative business community in the country. Both companies will provide services and promote the development of startups in the local market.

"Israel and China have long been economic and strategic partners," Minister of Commercial Affairs of Israeli Embassy in Beijing Ophir Gore said. "Israel-China economic relations and the promotion of innovation are crucial for the growth of both countries. It is crucial to ensure that our ties will continue to strengthen and enable us to mutually thrive."

In 2015, the foreign direct investment flows from China to Israel was about $2.3 billion and $523 billion from Israel to China. In March 2017, Israeli Prime Minister Benjamin Netanyahu visited China and the two countries established a new innovative comprehensive partnership.

Peng Zhiqiang, CEO of Shengjing, said his company is standing at a turning point, moving from exports toward imports. "In the next five years, we will help 100 more Israeli technology innovation enterprises to settle down in the Chinese market and gain investment from Chinese investors."

The cooperation will be bilateral. According the Bo Yiqun, founder of DayDayUp, while the company is helping Israeli startups enter China, the team is also preparing to introduce industrial funds to Israel and start to recruit cooperative projects to help Chinese enterprises land in the Israeli market.

Israel is well recognized as the center of innovation, second to Silicon Valley. Over the past few decades, Israel has cemented its reputation as the "Start-up Nation". More than 250 Israeli companies went public on NASDAQ since the 1980s. Between 1999 and 2014, Israelis started 10,185 companies, with half of them still in operation and 2.6 percent having annual revenues of over $100 million, according to Forbes magazine.

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