China has undergone almost three decades of intensive economic growth, growing private consumption, convenient infrastructure and competitive work force and today, China is the focus for international investors and companies from a wide range of sectors.

China's stock market has climbed fivefold over the past two years, and efforts are under way to create an emerging market that would cater to younger companies. The government is also driving efforts to bake innovation into companies, a shift that has been evolving for the past five years with its commitment to moving from a low cost supply of labor to more value-added services as an economy. Innovation is mandated as part of this plan. The government views Israel as part of this movement to innovate.

Israel-China trade climbed nearly 30% in 2006, to $3.8 billion, and is expected to reach $5 billion in 2008, catapulting China to the position of Israel's No. 2 trading partner; second only to the U.S. Trade is expected to double, to $10 billion annually, by 2010.

As with many countries, Israel has been flooded with imports of Chinese consumer goods and textiles in recent years. Even through exports from the Jewish state account for less than 1% of China's total imports, in key fields such as tech, agriculture, water, and high tech, Israel has what China is looking for. The impact on the Israeli economy is only set to increase.