Bilateral Agreements

Trade Agreement – October 1992

The establishment of trade relations between Israel and China was signed in October 1992. China provided Israel with the status of MFN (Most Favorable Nation) and implements the lowest custom tariffs – same as other countries.

Mutual Recognition of Standards – March 1994

Signed between the Israeli Standards institute and equivalent Standard Institutes in China: The State Administration of Import and Export Commodity Inspection, and the Chinese State Bureau of Technical Supervision (CSBTS).  

Shipping Agreement - March 1994

The agreement enables each country's shipping companies (ZIM and COSCO) to operate in the others territory, establish its activity, open offices and run establishments independently with no interference of a local factor. In 2001, ZIM received a certificate of approval to provide logistic services as well.

Aviation Agreement - March 1994

The agreement enables El-Al, Israel's National Airline to operate passenger flights to China between Tel Aviv and Beijing. In 2002 an amendment was made to also enable cargo flights between Shanghai, Bombay India and Tel-Aviv.

Double Taxation Agreement – April 1995

The agreement is designed to prevent double taxation, private and corporate, on profits made in Israel and China.

Promotion and Security of Investment – April 1995

The agreement is intended to secure each commercial company's investments in the other country, fund transfer, resolve disputes, etc.

R&D Agreement – 2000

A Cooperation Agreement, in Research and Development and Industrial Development between Israel and China, and enables the governmental support of projects, joint to two companies from the two countries. The companies will hold joint R&D (industrial) supported by MOFCOM in China, and the Chief Scientist in Israel. In October 2002 an additional R&D agreement was signed between Israeli "MATIMOP" (the Israeli Industry Center for R&D) and China's "TORCH" program (a guiding program designed to develop new and high technology industries in China) that enables R&D cooperation within the framework of the agreement.

"Financial Protocol" – Financial Cooperation Agreement – April 1995, November 2004

A tool designed to promote trade between the two countries, by enabling Chinese companies to receive long term loans when financing projects or purchases from Israeli exporters, in Capital and Infrastructure. The Financial protocol grants Israeli companies the opportunity to participate in governmental companies and bodies deals and projects that are obligated to import to China only from countries that provide subsidized credit ("Soft Loan"). The framework of the agreement determines the Chinese company will receive a 10 year line of credit, with a subsidized interest rate of 2.5% with most of the paybacks made in the first five year term.

The new Financial Protocol, signed in November 2004, widens the credit given and also provides a new finance opportunity of 7 years (half year payments, 3.2% interest rate) starting from 18 months from entering the loan agreement. This opportunity is open to all of the projects. For 12 year financing, the following changes were made: lower threshold from 15 million US$ to 5 million; half year payments, with a 3.5% interest rate. Also, this opportunity is now open to other sectors as well. There has been no change in 10 year financing.

Financing Solutions by scope of project

Agreement Between the Government of the State of Israel and the Government of Jiangsu Province, the People's Republic of China, on Bi-lateral Cooperation in Non-Governmental Industrial Research & Development - December 2008