The trade war between US and China has sent shocking waves across the Technology Industry and sent many high profile exetutives to plea for “ceasefire”‘. But, according to Haggai Ravid, CEO of Cukierman & Co. Investment House, the real impact of the trade war is smaller than what had been anticipated, and some countries, like Israel for example, can benefit from this newly arrived reality.
“The financial markets have become ‘accustomed’ to the threats of the trade war”, He explained in a statement to Techtime. “We have seen that things are very fluid. Statements often change from a fight to reconciliation, therefore in the end, the market forces will be the ones to dictate the tone. China has reacted moderately to the US policy, and both sides seem to be looking for solutions behind the scene.”
Haggai Ravid believes that one possible result of this trade war is that “Israel may become an investment bridge between China and the US”, and will attracts Chinese investors for its technology. “In the past two years the Chinese market has matured and has created many start-ups. It seems that now the Chinese today are more interested in medicine, advanced production, automation and robotics technologies that are very advanced in Israel.”
Israeli Technologies in Europe
Europe will continue to be an excellent market for Israeli technologies, he said. “European investments in Israel nearly doubled in 2018, compared to 2017”. He warned that possible reduction of Israel’s budget for the Horizon 2020 plan, which is currently under consideration, could harm investments in joint Israeli and European ventures.
“The Europeans are eagerly interested in water technologies, automotive, life sciences and cyber security. The low valuations of Israeli start-ups versus their counterparts in the US and Europe, encourages European investors to make investments in Israeli technologies.” Cukierman and Co. Investment House is headquartered in Tel Aviv, and provides Investment Banking services, including M&A, Private Placement, IPO on international exchanges, asset management, and strategic advisory services to Israeli and International companies.