More Israeli firms eyeing China's market

China is one of the most powerful economies in the world, and its fast economic growth was made possible by the government's organized and structured plans, and the positive impact of foreign direct investment (FDI) on the economy. The Chinese government is determined to maintain a healthy growth momentum.

As stated in the recent report to the 20th National Congress of the Communist Party of China, China's economy will pursue high-quality development.

The announcement at the just-concluded 20th National Congress of the CPC that the country will promote FDI under certain rules and regulations is a calculated and justified decision. Four decades ago, allowing FDI in China in order to boost the national economy proved to be a wise decision as it's one of the main reasons behind China becoming the second-largest economy in the world.

In recent years, in order to maintain healthy GDP growth, China has taken some important decisions. For example, in the past two five-year-plans, China included "innovation" as a major economic development factor, because to maintain a healthy, sustainable growth rate in the coming years, China has to invest in innovation and technologies.

China is taking all necessary measures to realize high-quality development, including increasing investments in research and development and infrastructure, encouraging patents and scientific initiatives, and supporting higher education institutions.

Besides, foreign investment in China has seen a rapid growth in the first eight months of 2022, particularly in sectors such as high-tech and manufacturing, which has further strengthened cooperation between foreign and Chinese companies, and helped many foreign enterprises to build manufacturing units in China.

China's policies over the past several decades have encouraged foreign companies to enter the domestic market, set up shop in China and deepen cooperation with their Chinese counterparts. And China still welcomes FDIs, and will continue to encourage foreign companies to enter the domestic market, and promote innovations and technology development.

Israel, known as "Startup Nation "because it has the highest number of tech companies per capita, has produced many groundbreaking technologies. The country also has the highest number of unicorns per capita. As such, China's policy promoting high-quality development and innovations will attract more Israeli innovation-oriented companies to China in the coming years. In fact, the trend has already started.

The main goal of the Israeli Chamber of Commerce in China is to assist and support Israeli tech companies entering the Chinese market and help them establish business relations with their Chinese partners, so they can start operations in China.

In recent years, many Israeli innovation-oriented companies, supported by the Israeli Chamber of Commerce in China, have entered the Chinese market, mainly in the field of medical technology, automotive-technology, and agriculture and water technology. Local governments across China are supporting these companies and making arrangements for Israeli businesses to establish production or service units in industrial parks promoting innovations. An apt example is the "China-Israel Innovation Hub" in Putuo district of Shanghai.

The trend of innovation-oriented companies entering China's market will continue, as border restrictions are being eased across the world as the COVID-19 pandemic becomes less severe. With the world getting back to normal after a long period of slowdown due to the pandemic, the new era will create opportunities for all and facilitate common growth.

The author is general manager of the Israeli Chamber of Commerce in China.

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.