Does China plan to impose sanctions on Israel by reclaiming $1.5 Billion loan given to Israel’s Koor Industries? Fact Check
Claim: China plans to impose sanctions on Israel by reclaiming the $1.5 Billion loan given to Israel’s Koor Industries.
Conclusion: The claim is Misleading. China’s CNAC (China National Agrochemical Corporation) provided $960 million syndicated loan to Israel’s Koor Industries but in 2014, Koor was acquired by Israel’s Discount Investment Corp (DIC), whcih was later taken over in 2016 by ChemChina (CNAC’s parent company) partially at a valuation of $1.4 billion including debt. Now, Koor is a private firm.
Rating: Misleading — 
Users across the social media have shared claims about China imposing sanctions on Israel and reclaiming a $1.5 Billion loan given to Israel’s Koor Industries. Verified X user ‘rkmtimes’ made such a claim on 20 September, 2025. The caption emphasized how “China is Israel’s third-largest economic and defense partner after the United States and the European Union.”
The post gained more than 425,000 views and 22,000 likes which can be viewed below –
JUST IN🇨🇳🇮🇱🔥 China plans to impose Sanctions on #Israel by re-claiming $1.5 Billion loan given to Israel’s Koor Industries.
🚨 #China is Israel’s third largest partner of Economy and Defense after US and European union.
🚨 Well done, Xi Jinping. pic.twitter.com/r6qCNkarKL
— RKM (@rkmtimes) September 20, 2025
Another user on Instagram by the handle ‘hellopakistan’ shared such a claim on 20 September 2025. View the post here
View this post on Instagram
FACT CHECK
DigitEYE India decided to fact check this claim and found that it is false. This allegation lacks credible support from official sources or major news outlets. No announcements from Chinese government bodies or Israeli government forces confirm such a claim.
To understand the claim, it is important to know the companies involved : –
- Koor Industries (Israel): An Israeli holding company that owned a major stake in Makhteshim Agan Industries (MAI), later known as Adama Agricultural Solutions.
- ChemChina (China National Chemical Corporation, China): A state-owned Chinese chemical company that acquired a controlling stake in Adama.
- CNAC (China National Agrochemical Corporation, China): A subsidiary of ChemChina, later involved in taking over Koor’s debt.
- Discount Investment Corporation (DIC, Israel): The company that later merged with Koor in 2014.
- China National Agrochemical Corporation (CNAC) invested 2.4 B USD in Adama Agricultural Solutions(Koor) in October 2011.
- Later CNAC took 60% stake in that company for $1.44 billion and remaining 40% stake remains with Koor and also 960 Million USD of (CNAC) in Koor in Year 2011 ($2.4B minus $1.22B = 960 million).
- Later Discount Investment Corporation (DIC, Israel) acquired koor in March 2014 along with the debt.
- CNAC acquired a 40% stake in Israel’s Discount Investment Corporation (DIC), giving it complete control of the Israeli company Adama. This acquisition was part of a larger deal that included the sale of DIC’s stake in Adama to ChemChina for approximately $1.4 billion (ChemChina paid $230 million in cash to Discount Investment.ChemChina assumed a previous loan of approximately $1.17 billion that it had given to Discount Investment.This assumption of debt by ChemChina was part of the overall consideration for the remaining 40% stake in Adama.).
Details of the Acquisition:
To learn about the loan, we conducted a keyword search with the phrase “China $1.5 Billion loan given to Israel’s Koor Industries.” We came across a report by AidData’s China Global Development tracker that sheds light on this loan, dating back to October, 2011. –
What was the loan and tenure?
According to this report above, China National Agrochemical Corporation (or CNAC/CNCC))provided a $960 million syndicated loan to Koor Industries after acquiring 60% of Makhteshim Agan Industries (now ADAMA Agricultural Solutions).
The committed amount was 1.18 billion and had a 7-year term, 4-year grace period and 5.095% interest, secured by Koor’s MAI shares. The status of this loan is marked as “Completion” with no updates on any reclamation. View the screenshot of the status below –
Following this, we came across a report by Agnews which confirmed that “ChemChina will buy a 60% stake in Makhteshim Agan Industries, a leading agrochemical manufacturer, for $1.438 billion. The remaining 40% will be held by Koor.” The report also wrote how “ChemChina will arrange a loan of $960 million for Koor using Koor shares in Makhteshim Agan Industries…” View a snippet from the report below –
Merger of Koor Industries into Discount Investment Corporation (DIC)
In 2014, Koor Industries itself ceased to exist as a standalone company when it was merged into Discount Investment Corporation (DIC). According to a report published by Reuters on 2 March 2014, Koor was acquired by Israel’s Discount Investment Corp in 2014 in a full merger. View a snippet from the report below –
Two years later, in 2016, DIC, through Koor, agreed to sell its remaining 40% stake in Adama to CNAC, ChemChina’s agrochemical arm. The deal was valued at about $1.4 billion. Of the $1.4 billion, $230 million was paid in cash, while the remaining $1.17 billion was settled by CNAC assuming Koor’s outstanding Chinese bank debt. This effectively cleared Koor’s liabilities from its books.
A report published by Simpson Thatcher on 28th November, 2016 sheds light on this transaction. Therefore CNAC agreed to assume Koor’s debt as part of the purchase. That cleared the debt from Koor/DIC’s books by 2016. View a section of the report below –
This was never a direct loan from the Chinese government to the Israeli government rather it was a corporate financing arrangement. There is no evidence in 2025 to show China demanding repayment of this loan, nor any indication of unresolved obligations.
Concluding, DIC took over control of Koor Industries over several years through acquisitions.
Currently Koor Industries is a private company, and functions as a subsidiary of DIC, organizing and participating in the management of various companies within its portfolio.
Hence, the claim is Misleading.
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