Israeli Prime Minister Benjamin Netanyahu met with Chinese Vice Premier Liu Yandong in order to begin the talks on a free trade agreement between the two countries, which could have massive economic implications.

Netanyahu and Yandong, today

Netanyahu and Yandong, today Photo Credit: Haim Tzah, GPO / Channel 2 News

Israeli Prime Minister Benjamin Netanyahu and Vice Premier of the People’s Republic of China Liu Yandong announced today (Tuesday) that they are officially launching the talks on a free trade agreement between the two countries.

A free trade agreement between Israel and China, which is expected to address the trading of goods and services as well as economic and technological cooperation, could have several meaningful implications: it could double the volume of trade between the two countries, which currently stands at 8 billion dollars; it could increase both countries’ GDP; it could lead to an increase in investments and thus to economic benefits for both countries; and it could mark a very important milestone in economic relations between the two countries.

As part of the free trade agreement, the lifting of trade barriers will be addressed, which could lead to concessions for Israeli exports when entering China and vice versa. The agreement could also lift barriers related to regulation and standards.

“We have so much that we can do together,” Netanyahu told the Chinese Vice Premier. “We discussed the various fields in which this can happen – in healthcare, in distance education, in agriculture, in marine agriculture, in IT. In every field of human endeavor the cooperation between Israel and China can yield enormous results, and we believe that Israel can be a perfect partner.”

“We must continue this cooperation for the benefit of both peoples,” Yandong replied. “Israel and China are marching in the direction of large joint projects. Israel is known worldwide for its innovation.”