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Israeli high-tech factories have difficulties importing components from China

Since the war, electronics and high-tech factories in Israel have been facing difficulties importing electronic components from China. These components are essential for both civilian and military purposes.

Importers argue that Chinese suppliers did not declare or announce any sanctions on Israel, but in reality, there seems to be a kind of bureaucratic obstacle.

Chinese suppliers have begun demanding the completion of numerous forms, causing shipment delays due to inaccurately filled-out paperwork. The result is challenges in receiving the necessary supplies.

This issue has been brought to the attention of the Foreign Ministry and the Economy Ministry, which has reached out to counterparts in China.

  • “In recent weeks, companies in the hi-tech sector have complained about delays in shipments from China of dual-use components. In all the checks we conducted with official bodies, it appears that there is no change in regulations, but rather enforcement that was not practiced in the past. Such technical requests create bureaucratic hurdles,” a government official told Ynet.
  • “We are concerned that the strict enforcement is happening because we are in a state of war. Inquiries have been made to the Chinese, and their official response is that there is no change in policy. The problem is that until we overcome all the new requirements we cannot be certain if the supply will be fulfilled. It is clear to us that there is a direct link to the war,” according to the official.

The Chinese government has unmistakably taken a pro-Palestinian stance in the war.

  • “The Chinese are imposing a kind of sanction on us. They don’t officially declare it, but they are delaying shipments to Israel,” a senior figure in one of the factories told Ynet.
  • “They have various excuses and pretexts, such as requiring suppliers from China to obtain export licenses to Israel that did not exist before. Additionally, they demand that we fill out numerous forms, causing significant delays. This has never happened to us before. We are talking about many different types of components. In electronic products, there are tens of thousands of components, but if even one component doesn’t arrive, we cannot deliver the product.”

Some importers in Israel, who import products from China, have found a workaround by duplicating orders to distributors or their representatives in other countries, where the Chinese do not require an export license. However, importing through a third party leads to higher costs and delayed delivery times.

Source: YnetNews