Since the establishment of diplomatic relations between China and Israel，Israel had once been China’s biggest labour market in the Middle East. There are strong complementarities between Chinese and Israeli labor markets，but there are also factors which restrict the development of Sino-Israel labor service cooperation. Israel responded actively to China’s Belt and Road Initiative. The establishment of Asian Infrastructure Investment Bank（AIIB）and the signing of Sino-Israel Labor Service Cooperation Agreement bring unprecedented opportunities to the development of Sino-Israel labor service cooperation. In this process，new cooperation mechanism has been formed，with government as the guide，market as the driving force，enterprises and individual labors as the participating subjects. Although the scale of Sino-Israel labor service cooperation is small，its advantages in the construction industry are prominent. Nevertheless，problems also exist in Sino-Israel labor service cooperation，such as fierce competition，upheavals in the Middle East and existence of illegal workers. Generally speaking，opportunities and challenges coexist in Sino-Israel labor cooperation. Both sides should strengthen their policy communications，implement the bilateral labor cooperation agreement，and realize the idea of promoting peace through development on the basis of mutual benefit and win-win results.