According to Li, China is encouraging businesses with strong capabilities to participate in Israel's engineering projects.

"My main message in this visit is that Israel can be the perfect junior partner for China in its pursuit of economic excellence and competitive advantages by offering our technological capabilities," Netanyahu said at the start of the talks.

Chinese Premier Li Keqiang (C) holds a welcome ceremony for Israeli Prime Minister Benjamin Netanyahu in Beijing, capital of China, May 8, 2013. [Photo/Xinhua]

He noted that Israel is a small country but has a great concentration of technological powers in many disciplines, saying, "I think we can cooperate by scaling up these technologies for the benefit of both countries. "

Netanyahu said Israel admires China's development achievements and would like to work more closely with China to usher in a better future.

Israel's prime minister proposed the two countries work more closely in technology innovation, water conservation, agriculture, husbandry and recyclable energy.

Li and Netanyahu agreed that the two countries will set up a special working group, carry out research and formulate cooperative plans.

After the talks, they witnessed the signing of a series of cooperative agreements covering areas ranging from agriculture and technology to finance and education.

Chinese President Xi Jinping is scheduled to meet with Netanyahu on Thursday.