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Israeli Prime Minister Benjamin Netanyahu announced the talks
after he met visiting Chinese Vice Premier Liu Yandong. The
countries, whose current trade is worth about $8 billion, have
held exploratory discussions of the deal since May 2013.
"Cooperation between Israel and China can produce massive
results, and we believe that Israel can be the perfect partner,"
Netanyahu said, according to a statement from his office.
It quoted Liu as saying Israel was "world-renowned for its
innovation" and that China would embark on "great joint
projects" with it.
Netanyahu wants to diversify Israel's commercial ties abroad, in
partly due to what he has said is a need to reduce the country's
dependence on its biggest trading partner, Europe.
Disputes with the European Union over policy toward the
Palestinians, and EU labeling of products by Israeli settlements
in occupied territory, discomfit the Netanyahu government.
Israel also worries about anti-Jewish incidents in Europe, such
as last year's Islamist attack on a Paris kosher deli.
Netanyahu's office said the free-trade agreement could double
bilateral commerce and investment. At Tuesday's meeting, China
and Israel also signed 13 cooperation agreements, including in
energy and water development, officials said.
A senior Israeli official told Reuters he was optimistic the
deal with China could be concluded in about a year.
(Writing by Dan Williams; Editing by Alison Williams)
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