Jiangxi Province in $200m R&D collaboration with Israel

The government of China's Jiangxi Province has signed a $200 million R&D collaboration agreement with Israel. This is the first agreement of its kind between a Chinese provincial government and Israel, and raises hopes for similar agreements with other provinces.

Israeli consul general in Shanghai Jackie Eldan said the Israeli and Jiangxi governments would each budget up to $10 million a year over ten years for the joint R&D ventures. He added that the Jiangxi government has the money to begin now. "We must now find the financing in Israel," he added.

Jiangxi Province in eastern China, upriver from Shanghai, has a population of nearly 50 million. The province is responsible for 75% of the world's production of photovoltaic cells and 60% of China's output of flat screens. Eldan noted, "These are two emerging industries for Israeli industry and the potential for collaboration is great. China has targeted Israel for R&D investment as part of the country's foreign investment strategy."

Eldan added that Jiangxi Province also has an extensive venture capital sector.

Eldan believes that the cooperation agreement is a critical tool for the establishment of Israeli R&D centers by Chinese corporations and the expansion of Israeli exports to China. "We found the capital for financing Israeli participation in the EU Seventh Framework Progammes for Research and Development. I hope that we'll also find the funding for this program, whose potential is even greater," he concluded.

Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2008