China Herald: Israel

Thursday, April 10, 2014

Innovation: China needs it, Israel has it - Mark Schaub

Mark Schaub

Business between China and Israel is brisk, and that is partly caused by the fact that both economies complement each other. Where China needs innovation, Israel needs a sizable market to sell its innovations, a market it does not have among its hostile neighbors. Shanghai-based lawyer Mark Schaub just returned from his latest trip to Israel and made this overview.

Mark Schaub:

Enter Israel: Production Pygmy but Innovation Giant

Israel’s credentials for high-quality innovation are clear, it is global number one per capita in:

Patent registrations

R&D spending

Number of start-ups

However, with a population of only 8 million and a … challenging … neighborhood Israel is constrained from becoming a major manufacturing center. Traditionally Israeli start ups have looked to the US and to a lesser degree Europe as a source of funding or as a potential acquirer.

Start Up Nation Meet Buy Up Nation

“Follow the Money”

In recent years China outbound investment has accelerated exponentially. China is rapidly becoming the ‘buy-up nation’. China’s provincial level SOEs and private enterprises are increasingly interested in acquiring overseas technology. Israel has the technology China needs.

“China is Enough”

Interestingly, many Chinese enterprises are willing to buy or license technology exclusively for China rather than requiring global rights. With a population of 1.35 billion, the world’s second largest economy and a long “to do list” China as a market is large enough for the most ambitious of companies.

Political Support

The complimentary nature of China and Israel’s economies has not gone unnoticed by either side. Israel’s Chief Scientist stated that Israel is ‘good at innovation and technology transfer’ and China ‘can scale up manufacturing and beyond.’ The Third Plenum was a hot topic at Israel’s Business Conference on December 8 2013.

Israel and China’s political relationship has had its up and downs over the years. Israel recognized the People’s Republic of China all the way back on 9 January 1950 but China only formally established diplomatic relations in 1992. For many years (until the late 1980s) Israeli passport holders could not even visit China. Despite this there was co-operation on a variety of fronts (including military) in the background.
In recent times the political and economic relationships have never been better. The Chinese Government is actively taking actions to improve and boost economic relations. In 2013 China and Israel signed both export enhancement and trade agreements.

More in the King&Wood Mallesons´newsletter.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

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Thursday, October 10, 2013

The close relationship between Chinese and Jews - Michael Justin Lee

Michael Justin Lee

The recent gift of China's richest man Li Ka-shing to Israel’s leading engineering university, the Technion, is not really coming as a surprise, argues Michael Justin Lee in the Washington Times. "To say that China respects Israel would be a tremendous understatement."

Michael Justin Lee:

In general, the history of the Jews in China is both long and friendly. When Marco Polo “discovered” China, he found that the Jews were already very well established there and quite prosperous. Even earlier, in the ancient Chinese capital of Kaifeng, Jews had built a synagogue and a kosher butchering facility. In the 20th century, China proved to be a hospitable sanctuary for Jewish people escaping the Russian Revolution and the Holocaust.

We even have a Chinese Oskar Schindler in Dr. Ho Feng-Shan, China’s consul-general in Vienna, who saved the lives of thousands of Jews. In consideration of the centuries of peaceful contact between the two peoples, China can arguably be called the most hospitable country to the Jewish people. (Arguably, I said.)

Last semester, I had the pleasure of hosting a visiting professor from Beijing’s University of International Business and Economics to exchange ideas about the teaching of international finance. In the course of casual conversation, I learned that all over Chinese academia these days, there is a veritable explosion of interest in the Jewish people, Judaism and Israel. Mr. Li’s gift merely epitomizes this interest.

To say that China respects Israel would be a tremendous understatement. In fact, China greatly admires both the nation and State of Israel in many important areas with the notable exception of cuisine, in which case the admiration goes demonstrably the other way. If you doubt this, just think about the number of Jewish delis you’ve ever seen in any of the Chinatowns of the world. Now consider the number of Chinese restaurants in any Jewish neighborhood. I rest my case.=

More in the Washington Times.

Michael Justin Lee is a speaker at the China Speakers Bureau. Do you need him at our meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

What can China learn from Singapore on sustainability? Join the +China Weekly Hangout where Shanghai-based sustainability expert +Richard Brubaker will share his recent experiences in Singapore on Thursday 10 October. You can read our initial announcement here, or register for participation here. Moderation by +Fons Tuinstra of the China Speakers Bureau.

+Steve Barru, +李洛傑 and +Fons Tuinstra wrapped up on October 3 at the China Weekly Hangout the news on Shanghai's Free Trade Zone, and end in a not-so positive mood about what this new zone is actually going to do.