Israeli Prime Minister Benjamin Netanyahu, pictured, signed a new $400 million trade agreement with China on Wednesday.. Photo: Wikimedia Commons.

Israeli and Chinese officials signed a $400 million trade agreement during meetings on Wednesday, expanding trade between the two nations to $2.05 billion.

The agreement was signed by Israeli and Chinese finance ministers during a meeting attended Israeli Prime Minister Benjamin Netanyahu and Chinese Prime Minister Li Keqiang.

“This is a very important agreement for expanding bilateral cooperation. China is a vast market and if we even slightly increase our market share here it will significantly help the Israeli economy,” Netanyahu said, according to the Prime Minister’s Office.

Netanyahu also held a live video-chat with millions of Chinese Web surfers on Xinhuanet, China’s official news agency. Most of the questions revolved around Israel-China relations. Netanyahu told the online participants that he was “impressed by the development, progress and tremendous growth” of China since his last visit to the country, in 1998.

Israel and China first established relations in 1992. Since then trade between the two countries has rapidly expanded, with China becoming a major purchaser of Israeli high-tech, military and agricultural goods and services.