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

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.”

• China said to prep Hong Kong stock support for handover day / Bloomberg
  “China’s government has made preparations to support the Hong Kong stock market if needed to create a positive atmosphere before July 1, when Xi Jinping is expected to visit the city for the first time as president to mark 20 years of Chinese rule.”
• China’s $246 billion foreign buying spree is unraveling / Bloomberg
  “Analysts see few signs of a rebound as Chinese regulators make it difficult for acquirers to move money overseas.”
• China is on track to fully phase out cash / Vice Motherboard
  “Many experts predict that China will be effectively cashless within five to 12 years.”
• Valley-obsessed Indian startups now turn to China for inspiration / Tech in Asia
• Who will pay for China’s new Silk Road? / SCMP