According to the Ministry of Industry and Information Technology, by 2025, China will set up about 40 new national manufacturing innovation centers, with 15 of them being established by 2020. Each of these centers will be devoted to sectors that Israeli startups happen to dominate in, including information technology, new materials, intelligent manufacturing, and biomedicine.
There will also be a sense of kinship between each center. China Daily reports that the Ministry of Industry and Information Technology “has promised to improve the intellectual property management system to promote cooperation and profit sharing between centers.”
So what does this mean for Israeli startups? It’s time to get on the bandwagon, and join forces with China as they work towards moving past their reputation of low-end manufacturing, to producing items of much higher value. There are already numerous incubators in Israel that focus on things such as hardware and IoT. There are also incubators such as MakeMountain, which focus on assisting startups in manufacturing.
The bottom line is that now is the time, while it is still early, for Israeli startups to get on the radar of the Chinese tech ecosystem. Now is the time for them to establish relationships with VCs in China, and have their products exposed to the vast Chinese market. Why? So their foot will already be in the door by the time the manufacturing innovation centers in China are completed.
The Chinese have already expressed deep interest in Israeli innovations. It is now up to Israeli startups to reciprocate.
Discover how Kaipule connects Israeli startups with the Chinese tech ecosystem, at no cost to the startups.