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Blocked From US Tech Investing, China Goes To Israel Instead (cnet.com)

Posted by msmash on from the trump-effect dept.

Struggling to seal deals in the United States as regulatory scrutiny tightens, Chinese companies looking to invest in promising technology are finding a warmer welcome for their cash in Israel. From a report: Unfazed by this change, which was brought on in part by a new administration focused on US protectionism, Chinese investors are putting their money in Israeli companies instead. Last year, Chinese investment in Israel surged tenfold to $16.5 billion, a record, with money going to Israeli internet, cybersecurity and medical device companies. In contrast, Chinese investors scrapped a record $26.3 billion in previously announced US deals.

2 of 73 comments (clear)

  1. Contracts by psergiu · · Score: 5, Interesting

    I have dealt with Israeli companies before. Everything is fine as long as you pay very carefully attention to the wordings in the contracts. You need both legal and technical teams to go over each revision.
    Both their legal and technical teams are usually very good, and once the contract is signed, they keep their part of the agreement. To the letter.
    I wish the Chinese good luck.

    --
    1% APY, No fees, Online Bank https://captl1.co/2uIErYq Don't let your $$$ sit in a no-interest acct.
    1. Re:Contracts by ShanghaiBill · · Score: 5, Interesting

      Dealing with China is worse. First you sign the contract, then they start the negotiations.

      You are doing it wrong. Chinese courts are so biased and dysfunctional that written contracts are basically unenforceable. They are a waste of time. Instead have a written agreement in English, and put the money in an escrow account under American jurisdiction. When they deliver the product, and it meets the spec, you release the escrow funds. If they don't deliver as agreed, then their only option is to sue you in America to get their money. If they won't agree to these terms, then go back to Alibaba and spend 5 minutes finding an alternative supplier.

      Chinese don't even trust each other, so escrow payments are common, and every significant supplier is familiar with how they work.