Since the 2008 financial crisis that weakened the economies in the West, Israel, like many other export countries, has been increasingly targeting emerging markets in Asia, particularly China.
Last year, China accounted for a quarter of Israel’s US$10 billion exports to the region, or about 5 percent of the country’s total exports.
Though Israeli technology excels in a wide range of industries, many Israeli SMEs (small and medium-sized enterprises) are still not familiar with the distribution networks in Asia and China, according to a survey by the Hong Kong Trade Development Council.
This has resulted in lost business opportunities.
“In this regard, Hong Kong intermediaries could play a useful role in linking Israeli technology entrepreneurs with multinationals that have a presence in Asia, or to help them partner with local firms in the development of products targeting the emerging markets,” HKTDC said in a report.
HKTDC urges Hong Kong firms to combine their strong production capacity and mainland distribution networks with Israeli companies’ technological strength.
Hong Kong can also help their Israeli partners adapt to fast-changing regulations, as well as customize their products to meet local market preferences across the region.
Israel’s technology-dominated export sector boasts many strong players in renewable energy, environmental technology and water management systems.
Over the last decade, the number of life science companies in the country has grown fivefold to about 1,000, with medical equipment and healthcare products being some of the most promising areas.
As a business and financial hub in Asia, Hong Kong is a good complement for Israel given the city’s strong intellectual property rights protection regime and large pool of professional providers of legal and financial services.
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