Israel seeks to expand its diplomatic, economic, and strategic ties with the world's fastest-growing major economy and diversify its export markets and investments. Both are AES states but, why are they so different regarding recognition of Israel? The action you just performed triggered the security solution. [124], Though relations are close and generally good with no particular bilateral problems between the two nations, China and Israel continue to remain divided on the issue of Palestine, Israeli settlements in the West Bank and East Jerusalem, economic blockade of Gaza, and the Israeli West Bank barrier wall. With the formation of the West Asian quad and Israeli attempts at convincing the Biden White House to back down on a potential Iranian agreement, Israel-like the UAE may need to finally choose sides. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. Canada bans TikTok from government devices over security concerns. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. China is also a staunch ally and investor in Iran, which continues to threaten Israels very existence. North Korea does not recognise Israel, denouncing it as an "imperialist satellite". The United States and Israel, a recipient of over $3 billion in U.S. military aid, often co-develop weapons and coordinate their sales to ensure that sensitive technology doesnt fall into enemy hands. Although this agreement may seem technical, concerning principally economics and technology, the fact that the dialogue will be led by the heads of the respective National Security Councils (and not, for example, by the Ministries of Science or the Economy) indicates that it is a matter of supreme strategic and security importance. American fears of espionage led to the Israeli governments reassessment of Chinas successful bid to operate the country'sbiggest port in Haifa, which regularly hosts visits fromU.S. Navy ships for bilateral exercises and port calls. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. [59], As part of the 2010 World Expo, the Shanghai Municipal Government began to allow the city's Jewish community to use the historic Ohel Rachel Synagogue for regular Shabbat services. Considering the limited flow of Chinese FDI to Israel (around $100 million in 2018 out of the total $21.8 billion), China is far from gaining a foothold in Israel's high-tech sector. [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. 1111 19th Street NW - Suite 500 No further sales of military technology between China and Israel havebeen reported since. the chief American concern is with Chinese investments in the fields of technology that are considered . For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . "[124] Besides the Chinese recognition of Hamas, China also does not designate Hezbollah as a terrorist organization. [65][66], China had looked to Israel for the arms and military technology it could not acquire from the United States, Europe and Russia. [15][16][17], In the 1930s, David Ben-Gurion, then leader of the Yishuv in Palestine, proclaimed that China would be one of the great world powers of the future. Chinese investment in . By registering you agree to the terms and conditions. The question is, with Israel, when China will cross the line? [135], On November 29, 2012, China voted in favor of UN General Assembly Resolution 67/19 Palestine to non-member observer state status in the United Nations. Is Iran Ready to Build a Nuclear Bomb or Not? Israel's arms sales to China. [130], Chinese involvement in the Israeli technology sector has also generated security concerns. Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. Although China may see Israel as more lenient than the U.S. in sharing technology, Israel may ultimately act similarly cautiously as it does not . 3. A large part of the money came from the profits he made from the IPO of Waze, an Israeli GPS-based map software company, in which he held an 11 percent stake that eventually acquired by Google. 2. In a joint press conference with Prime Minister Yair Lapid on July 14, 2022, President Bidenunderscoredthat his visit was designed to demonstrate US commitment to the Middle East, and to avoid leaving a vacuum that would be filled by China and Russia. The attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. Washington's pressure on Israel focused on halting China's involvement in Israeli infrastructure, blocking Chinese-made infrastructure in 5G communications in Israel (which was not on the agenda in any case), investment screening, and hindering technology transfers. [52][53] China is Israel's largest East Asian trading partner and has sought Israel's expertise in solar energy, manufacturing robotics, irrigation, construction, agricultural and water management and desalination technologies to combat drought and water shortages. This document and trademark(s) contained herein are protected by law. But every crisis is an opportunity. Also available in print form. As early as 2017, the USNational Security Strategypointed to China as its top priority, innovation as a pillar of national security, and the key technologies for the future as an essential front in the Great Power competition. According to the U.S. National Security Agency, China repeatedly breached the computer networks of the American government and private defense companies to steal data about design and radar modules for the F35 and incorporated it into its stealth fighter aircraft, the J20. On July 15, the White Houseannouncedthe outcome of meetings with the Saudi king and his son, which included agreements in many areas, including removal of the observers from Tiran Island (with Israels consent), the opening of Saudi skies to commercial flights (including Israeli flights), and a ceasefire in Yemen. [104] The following month, the Chinese and Israeli governments signed a memorandum of understanding regarding the joint construction of a 180-km (112-mile) railway linking the Israeli city of Eilat with the Negev Desert's Zin Valley, Beersheba, and Tel Aviv. [84], In March 2015, Israel joined China's newly constituted Asian Infrastructure Investment Bank (AIIB), becoming a founding member of the institution postulating that Israel may become a major economic ally of China. A key tool utilized by China to steal military and industrial secrets is through traditional human intelligence operations that seek to recruit foreign citizens to spy on their countries. Owing to strategic Chinese rivalry with Japan, South Korea, the Philippines, India and Vietnam, as well as concerns over the security of Taiwan, the United States has pressured Israel against selling sophisticated equipment and technology to China. He then was key in trying to pivot Israeli trade to new markets such as India and China, which seemed to be safer as per the BDS movement was concerned. We urge relevant parties to bear in mind the broader picture of peace and the lives of the people, immediately realize a ceasefire, stick to the strategic choice of peace talks and strive for an early resumption of talks. On July 13, before President Biden landed in Israel,JerusalemandWashingtonissued a joint statement (with differences in wording in both versions) on the launch of strategic technology cooperation between Israel and the United States. February 3, 2020, 3:30 PM. [114] On September 2 2015, Fosun International made another investment in Israel where it agreed to purchase the Ahava cosmetics firm for NIS 300 million (US$77 million). American officials had also tried to contain Chinese activities through a bilateral agreement in 2015, signed at the highest level between the U.S. and Chinese presidents. He has written for Geopolitica and several Italian online and print media. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. February 22, 2023 [11] Convergence of interests has made them natural partners. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. The largest number of investments is in companies in the life sciences sector (these include medical technologies, biotechnology, biochemistry, and pharmaceuticals - 122 deals in all), followed by investments in software development and IT companies (108 deals); China also invests in companies in the internet . For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. [80] Investment from China in Israeli technology reached an aggregate of $15 billion from 2011 to 2017 with the surplus of Chinese investment capital finding its way through Israel's high technology sector, including agriculture, pharmaceutical, medical devices, artificial intelligence and autonomous driving. [110] In addition, leading Chinese technology firms such as Huawei, Legend and Xiaomi have set up R&D centers in Israel. | Eyes on Europe & Middle East", "China-Israel economic, tech cooperation to enter new stage: Israeli minister", "Through Trade and Tourism, China Turns Its Attention to Israel", "China And Israel: A Perfect Match, Growing Steady", "Netanyahu: Israel has strong relationships with China, India", "The uncertain future of China-Israel relations", "Does China Not Need Israeli Technology Anymore? by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . [22] Reportedly, a large number of the heavy tanks used in China's 1984 National Day parades were retrofitted by Israel from captured Six-Day War equipment.[23]. [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. This venture has proven a success for the Chinese and a failure for the Israeli media, which uncritically swallow the messages sent out by CRI's Hebrew team. Spread the word. [17] Israel began increasingly engaging trading partners in Asian markets such as China, India and Japan to combat flagging trade growth with Europe as well as facing less political pressure attached to those partnerships. The authors examine the extent and nature of Chinese investments in Israeli technology and infrastructure and discuss the security implications these pose for Israel and the United States. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. [83] Other critics argue that growing Chinese involvement will endanger Israeli security and lead to theft of Israeli technology to be utilized in Chinese espionage further arguing that Israel should balance its burgeoning relations with China with maintaining a balance of relations with the United States at the same time. May 31, 2021, 12:24 pm. Furthermore, many European countries often utilize their strong economic clout to exert political pressure on Israel with regards to the Israeli-Palestinian and the West Bank settlements. Politicians are also hastening to increase the cooperation between the two countries with former Israeli Economy Minister Naftali Bennett recently visiting China to launch the Israeli Business Center in Shanghai, an initiative that goes hand-in-hand with the China-Israel Joint Committee on Innovation Cooperation, a three-year action plan to strengthen innovation cooperation. In the past 20 years, 97 percent of known investments in Israel from the People's Republic of China (PRC) were in the technology sector. [52] Bilateral trade rose to US$3 billion in 2005 and is projected to rise to $5 billion by 2008 and $10 billion by 2010. [116][117] On July 31, 2016, a Chinese consortium purchased Playtika, an Israeli online gaming company founded in 2010, for US$4.4 billion in cash. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. United Nations Partition Plan for Palestine, Israel Academy of Sciences and Humanities, United States-China Economic and Security Review Commission, People's Liberation Army General Staff Department, Shanghai International Port Group Co. (SIPG), Learn how and when to remove these template messages, Learn how and when to remove this template message, Beijing University of International Business and Economics, Committee on Foreign Investment in the United States, Ministry of Foreign Affairs of the People's Republic of China, Dates of establishment of diplomatic relations with the People's Republic of China, "Israel, China in Talks to Become Major Financial Allies", "As Chinese-Israeli Relations Enjoy a Second Honeymoon, America Frets", "Chinese foreign minister's visit to Israel clouded by terrorism case against Bank of China", "Israel's Tech Industry Is Becoming All About 'China, China, China", "China-Israel relations are bound to blossom H.E. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. [120] In 2017, China became Israel's fastest growing source of tourists as 2017 was the first year when the number of Chinese tourists surpassed 100,000. In 2020 his first fiction "Napoli sta bene" was published. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. Intel has found a workaround to U.S.-China trade tariffs by increasing direct sales from its Israeli plant,thus boosting semiconductor trade between Israel and China by 80 percent in 2018. [15] The two countries decided to set up an agriculture technology incubator in Anhui Province, China enabling joint development of agriculture technologies and solutions in keeping with requirements on the ground. Incorrect password. aviation employee. [110] In 2014, Chinese-Israeli tech deals totaled $300 million, up from $50 million in 2013, according to Israel's National Economic Council. The National Technology Transfer East Center, which undertook the task of building the China-Israel technology transfer platform at the end of 2018, has been involved in the conversion of results from China-Israel cooperation in the early years, and participated in promoting the "Promotion Meeting for the Construction of China-Israel (Shanghai . In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. Chinese economic cooperation with Israel has saw substantial Chinese investment of more than US$15 billion in the Israeli economy, spawning seed capital in Israeli startup companies, as well as the acquisition of Israeli companies by major Chinese corporations that incorporate Israel's know how to help the invigorate the development of the modern Chinese economy more efficiently. The China-Israel Innovation Hub was established in December 2019 as a major step in Shanghai's implementation of a national strategy to promote Chinese and Israeli scientific technological innovation. A spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. China has not even spared its strategic partners from such commercial espionage. But following U.S. intervention in two crises related to Israeli upgrades and sales of military technology to the PRC the Phalcon crisis in 2000 and the Harpy incident in 2005 Israel put an end to its defense relations with China and implemented an export control law, which placed restrictions on arms and dual-use technology exports. 2023 The Times of Israel , All Rights Reserved. November 4, 2022 Israels willingness to walk away fromarms deals with the Chinese at the United States request is unsurprising given the countries strong military and political relationship. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. The second paragraph (in the text issued by Washington) pledges to boost our mutual innovation ecosystems, to deepen bilateral engagements, advance and protect critical and emerging technologies in accordance with our national interests, democratic principles and human rights, and to address geostrategic challenges, i.e., not merely economic or scientific challenges. However, if Israel did transfer Lavi technology to Chinaboth parties would have strong incentives to deny it. Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. Chief Asserts", "The Evolving Relationship Between China and Israel", "PLA Navy Commander Meets Israeli Defense Leaders", "Chinese military chief makes first visit to Israel", "Chinese army chief here to talk defense cooperation", "Chinese navy ships visit Israel's Haifa Port", "Cooperation strengthens: Chinese fleet vessels arrive in Israel", "US-Chinese Competition over the Haifa Port", "With Strong Tech Ties, Is Israel China's New Best Friend? In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. programs offered at an independent public policy research organizationthe RAND Corporation. [33], Some say the Chinese have developed a favorable view of Jews, admiring them for their contributions to humanity, their ability to survive and the sharing of Chinese values such as family, frugality, hard work, and education, and being products of ancient civilizations. The dialogue on technology cooperation announced by Jerusalem and Washington, which is related directly to the Great Power competition, signals a new stage in partnership between the countries: Israel alongside the United States, even if not against China. Israel's foreign-investment screening mechanism seemed to be working. While the Israeli government pushed back against the United States position on completely banning Huawei due to commercial interests, it also avoids using Huaweis equipment in its critical infrastructure due to security concerns. China and Israel subsequently started exchanging visits of delegations of academics, experts, businessmen and industrialists. Zelensky: If China allies itself with Russia, there will be world war III. Sergio Restelli is an Italian political advisor, author and geopolitical expert. Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. 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