5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. [11] Convergence of interests has made them natural partners. [82][83] China is also Israel's third largest trading partner and export market after the United States and the European Union with China being Israel's largest export market in East Asia. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. Further, US President Joe Biden and Israeli Prime Minister Yair Lapid have introduced a new channel for "high-level dialogue" on the relationship between new technologies and security interests. China sought this ban out of concern for the Chinese workers safety in areas beyond the Green Line, which marks Israel's pre-1967 borders. China and Israel's cooperation in technological innovation is highly complementary, said Zhao Dongliang, director of the Changzhou Israel Innovation Park, the first experimental zone for innovation cooperation established by the two governments. While China does a lot of business with Israel, its international support for Palestine limits its political cooperation with the Jewish state. [122] In 2000, Israel cancelled the sale to China of the Israeli-built Phalcon Airborne Warning and Control System (AWACS) in the wake of pressure from the U.S., which threatened to cut off US$2.8 billion in yearly aid if the deal went through. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. 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 . The use of military sales as a means of achieving foreign-policy goals was neither new nor unprecedented in Israeli foreign policy to promote its interests. ChinaIsrael relations (In Chinese: Zhng y gunx. [123] China's record of proliferating arms and weapons systems has also concerned U.S. planners, as the U.S. worries that China may repackage advanced Israeli defense technologies for resale to America's rivals and nations hostile to it throughout the world. Click the link in that email to complete registration so you can comment. This article was originally published on the INSS website. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. In light of Washingtons limitations and threats, the Netanyahu governments chose to proceed gingerly and avoid trouble by employing moderate measures to assuage US anxiety somewhat, while continuing to advance ties with China, except in security, defense, and other sensitive areas. 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. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. Gen. Assaf Orion (Res.) Data on Chinese investments in Israeli technology and infrastructure are not systematically collected, and more research is needed to capture the full extent of Chinese access. GAO YANPING", "Jewish History in China Boosting Sino-Israeli Relations", "How Israel Used Weapons and Technology to Become an Ally of China", "Will the Middle Kingdom Join the Middle East Peace Quartet? According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. China has also been investing extensively in Israeli technology and businesses. In February this year, Israel had uncovered a nexus . Chinese and Israeli interests in the Middle East are incompatible. In Hebrew : - Yechasei Yisrael-Sin) comprise the diplomatic, economic, cultural, and military ties between the People's Republic of China and the State of Israel.. 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? A spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. The Chinese consortium comprised a number of Chinese holding companies and private equity firms such as Giant Investment (HK) Limited, China Oceanwide Holdings Group Co. Ltd., China Minsheng Trust Co. Ltd., CDH China HF Holdings Company Limited, the Hony Capital Fund, and Yunfeng Capital a private equity firm co-founded by Alibaba's Jack Ma. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. Nevertheless, the new committee failed to address America's other core concern: that advanced Israeli technology might somehow find its way into China's civil . [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. With the advice and experience of Jewish entrepreneurs, innovators, and inventors from the high-technology sectors, China has utilized Israel's indispensable economic and technological contributions to foster its long-term economic development. The Israeli government responded to this pressure partially by establishing an advisorymechanismfor national security aspects of foreign investments in areas subject to regulation. Beijing has also engaged American and Chinese/Chinese-origin students or academics who have access to sensitive or classified material through their work. [73], On 14 August 2011, General Chen Bingde, Chief of the People's Liberation Army General Staff Department, made an official visit to Israel,[74] scheduled for three days. At any rate, the J-10 is more inspired by the Lavi than an outright clone. 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. [133] On April 28, 2011, after the rival Palestinian factions Fatah and Hamas formed a national unity government, Chinese Foreign Ministry spokesman Hong Lei said that China welcomed the internal reconciliation. by Lindsay Maizland [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. Relations between China and Israel have expanded rapidly since the early 2000s in numerous areas, including diplomacy, trade, investment, construction, educational partnerships, scientific cooperation, and tourism. by Lindsay Maizland Israel began selling military technology such as missiles, radars, and navigation systems to China in the 1980s, even before Beijing recognized Israel, and technology trade quietly intensified in the 1990s. A spokesman of the Chinese Foreign MinistrydismissedBidens remarks, emphasizing Chinas efforts to contribute to peace and regional development, and a spokesman of the Chinese embassy in Israelreiteratedthis message. [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. "The basic research of industries in Israel is better, and the country emphasizes core technology . [35][37][34][39] The cultural similarities between the Chinese and Jewish civilizations with both nations originating thousands of years ago have drawn the two countries closer together making the two countries natural partners in the international community. The growing dual-use nature of technology threatens to overthrow Israels careful efforts to expand trade with Beijing, while avoiding the sales of security technologies that would increase Chinese military capabilities and anger Washington. [125], After the victory of Hamas in the 2006 elections in Gaza, China acknowledged Hamas as the legitimately elected political entity in the Gaza Strip despite Israeli and U.S. opposition. [13] Since 2013, Chinese investors have begun to show a growing interest in Israeli firms. In 2013, when current Prime Minister Bennett was the Minister of Economy, he believed that the BDS (Boycott, Disinvestment and Sanctions) movement would have had a negative effect on the future of Israeli exports to the west. 2023 The Times of Israel , All Rights Reserved. 00:00. [115] While Protectionism in the United States through the potential impact of Committee on Foreign Investment in the United States on international Chinese investment strategies has made it difficult for Mainland Chinese companies to acquire American assets, Israel has been a receptive host warmly welcoming the influx of excess Chinese cash and investment capital into the country's private sector economy Israeli agriculture trade fairs such as Agrivest and AgriTech have witnessed large Chinese delegations and greater participation from Chinese state-owned enterprises and private companies as Chinese's growing middle class and increasing consumer demand as well as increased pressure on agricultural land has prompted the East Asian giant to increasingly look at Israeli agriculture technology to boost crop yields and dairy production. February 13, 2023 Is There a Match for Tech Between China and Israel? Interestingly, these programs also encouraged its members to lie on grant applications to U.S. grant-making agencies, establish shadow labs in China working on research identical to their U.S. counterparts, and, in some cases, transfer U.S. scientists intellectual capital.. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. [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]. [93] Chinese businessmen and major Chinese corporations hold Israel's business, economic and entrepreneurial acumen and technological expertise with high esteem and have sought to integrate Israel's know-how with China's marketing proficiency, industrial manufacturing capacity and aptitude for large consumer market scaling. One expert commentator, noting that bilateral trade grew from $50 million in 1992 to some $15 billion or more in 2021, added that "a closer look . China's then Foreign Minister Li Zhaoxing called the Israeli West Bank barrier wall an obstacle to peace in a September 2006 statement during a UN Security Council meeting on the Middle East. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. [94][93][95][96] Since the mid-2010s, China has increasingly becoming a pillar source of financial funding of Israel's high-tech ecosystem with the influx of Chinese investments in Israeli companies and technologies since the mid-2010s has mutually contributed both the Chinese and Israeli economies. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. 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. President Joe Bidens recent visit to the Middle East focused on the matters most important to his hosts in Israel and the Arabian Gulf: security guarantees against Iranian threats and the rehabilitation of Saudi Crown Prince Mohammed bin Salman. In a recent landmark judgment, a court in the United States found a Chinese intelligence official, Yanjun Xu, guilty of stealing secret jet engine technology from General Electric aviation. INSS Insight No. 00:00. [15][108] Horizons Ventures, a venture capital firm established by Hong Kong business magnate Li Ka-shing, led a US$10.8 million strategic investment in Windward, an Israeli maritime data and analytics company. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. It takes just a few seconds. Although the headlines were focused elsewhere, the presidents Israel-Saudi trip included statements, agreements, and newly announced inter-agency dialogues that imply deep implications for China policy. [22] In the early 1990s, China joined a number of nations who established ties with Israel after the initiation of a peace process between Israel and the PLO in the early 1990s; it also desired to play a role in the peace process. 3. Israeli officials have beenespecially vocal about the risks posed by military technology trade with China, noting that Chinese weapons sold to Tehran have in the past been transferred to Hamas and Hezbollah. [65] Due to Israel's recognition of China, Israel has also limited its cooperation with Taiwan in order to foster closer ties with Mainland China. February 22, 2023 Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . Israel has earned a reputation in recent years as a tech powerhouse. [84][85] Israel has sought China's enormous global influence on world affairs, large consumer market, broad industrial manufacturing scale, and burgeoning economic dynamism while China has sought Israel as a powerhouse of advanced technological wizardry and a wellspring of entrepreneurial acumen leveraging each other's complementary capabilities and resources. ", "China seeks strategic foothold in Israel | World | DW | 24.03.2014", "Chinese-Israeli Economic Alliance Is Going On And Strong | The Kaipule Blog", "China Israel, Why China is interested fostering economic relationships with Israel? The Israeli consul Jackie Eldan noted that the gesture was a "special effort", as the synagogue is now located within the compound for the city's education ministry, and that it was "truly highly appreciated by Israel. If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. No further sales of military technology between China and Israel havebeen reported since. China and Israel have hosted many reciprocal business events that facilitate cooperation between Chinese and Israeli firms, usually with Israel providing technology to an established Chinese company. Is Iran Ready to Build a Nuclear Bomb or Not? The Washington Institute seeks to advance a balanced and realistic understanding of American interests in the Middle East and to promote the policies that secure them. Once registered, youll receive our Daily Edition email for free. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. 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. The statement and the partnership are not aimed against any third party, but respond to both Israels development needs, expanding its joint innovation base with the United States, and to US national security concerns pertaining to technological competition with China and to Israels related role. In early 2021, Chinese state-sponsored hackers targeted Russias leading submarine designer, Rubin Design Bureau, with an apparent aim of stealing sensitive information and technology. ", "Stopping the crackdown on China's Jews - Opinion - Jerusalem Post", "Israeli Woman in China Gets Respect, Not Anti-Semitism", "Are Jewish Women More Likely to Marry Chinese Men? [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. Investments by Chinese companies' links to the Chinese government, the People's Liberation Army, and the Chinese Communist Party pose security risks. [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. However, if Israel did transfer Lavi technology to Chinaboth parties would have strong incentives to deny it. [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. . 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