Cooperation and Development—Celebration of the 20th Anniversary
of the Government Loan Cooperation between the People’s Republic of China and the State of Israel
Israeli Government Loan, the Bridge for
Sino-Israel Financial Cooperation
Reforms and opening-up are China’s basic national policy. Reasonable and effective utilization of foreign
funds is an important part in the course of reform and opening-up. Bilateral financial cooperation represented
by foreign government loans reflects the efforts that finance departments in China have put into the
implementation of the scientific outlook on development, the integration of domestic development and
international cooperation, and the full utilization of domestic and international markets and resources. And it
is of practical significance to national development strategies and development plans, reform and innovation,
as well as an open economic system.
The Israeli government loan is part of Israel’s ODA (official development assistance) to China and serves as
an important channel for first Sino-Israel financial cooperation. The Sino-Israel government loan cooperation
started in 1995. The signing of the first Sino-Israel financial cooperation Protocol by the competent
authorities of Chinese and Israeli governments marked the official beginning of loan cooperation between
the two governments. New protocols and related amendments have been signed since then, enriching and
deepening the loan cooperation.
So far, loan amounting 2.6 billion U.S. dollars has been committed by the Israeli government, more than 330
projects utilizing about 1.7 billion USD have come into force. The projects primarily focus on healthcare,
agricultural development, education and training, water treatment, communication and other high-tech areas,
covering 29 provinces, cities and autonomous regions in China.
In 2012, China and Israel signed a special financial cooperation protocol. Based on this protocol, Israel
provided 300 million USD government loan to China to support irrigation and water conservancy projects
in Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang Autonomous Region in order to help those provinces
and regions improve their agricultural development and water conservancy, and transform their traditional
agricultural production methods. Currently, the projects are well implemented and begin to generate
remarkable economic and social benefits. In July 2015, ministries of finance of the two countries signed the
Third Amendment to Sino-Israel Financial Cooperation Protocol NO.3. Based on this Amendment, Israel
committed to offer another 500 million USD loan, which will be used for introducing Israel’s advanced
technologies and industries to support China’s economic and social development.
In terms of bringing in capital, technology and intelligence, through 20 years of unremitting cooperation
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