A Chinese government initiative to promote investment abroad has spurred a series of investments in Israel totalling in the billions of dollars, Globes reported on Sunday.
At the end of the first quarter of 2015, Shanghai-based food and beverages multinational Bright Food Group completed its acquisition of Israel’s Tnuva Food Industries in a deal worth about 8.6 billion shekels.
Just last week, an agreement was signed by China Harbor Engineering to build the new Ashdod port for more than $3 billion
Other buy-ins include: China National Chemical Corporation (ChemChina) taking Adama Agricultural Solutions (then called Makhteshim Agam Industries) for $2.4 billion; the acquisition of high-tech company TravelFusion by the Chinese firm Ctrip.com, the acquisition of Natali Healthcare Solutions by SunPower.
Analysts say that the Chinese will likely emulate U.S. technology companies by setting up R&D centers in Israel on the basis of Israeli companies that they will acquire or in some other format.
And it’s a two-way street. While the Chinese are upping their investment in Israel, some 1,000 Israeli companies are currently operating in China.