Chinese investment in Israeli tech surges – China business and technology news from May 11, 2017

Business & Technology

A summary of today’s top news in Chinese business and technology. Part of the daily SupChina news roundup "No respite from cringeworthy propaganda — OBOR is coming to town."

FILE PHOTO: Logos of Tencent are displayed at a news conference in Hong Kong, China March 22, 2017. REUTERS/Tyrone Siu/File Photo

Reuters says that Chinese companies are “struggling to seal deals in the United States as regulatory scrutiny tightens,” and are finding “a warmer welcome for their cash in Israel,” where they put a record $16.5 billion in 2016. The report notes that a surge in Chinese investments in internet, cybersecurity, and medical device startups occurred in the third quarter of 2016, “just as the U.S. regulatory crackdown began to bite.”

Before 2016, most Chinese investments in Israel were not in hi-tech but food, agriculture, and construction, but that changed over the last year. Israeli entrepreneurs are also attracted to Chinese capital because they believe it offers “a way into the huge domestic Chinese market, which is otherwise difficult to crack.”