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. Berton, Peter. It has even utilized its telecom companies like Huaweis sprawling reach in the West to collect pieces of sensitive information. Later in the statement, the parties agree to seek to increase coordination on policies on risk management in our innovation ecosystems, including research security, investment screening, and export controls, as well as on technology investment and protection strategies for critical and emerging technologies. This agreement reflects joint understandings on challenges to securing technology, which, according to numerous international studies, China jeopardizes in various ways: technological espionage; forced or unwarranted technology transfer, inter alia by means of cooperation in research, investments, and unauthorized or unwitting exports; talent recruitment; and large-scale offensive activity in cyber espionage. 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. [14], China's status as a potential world power has prompted Israel to maintain close ties with the country and integrate China's global influence with Israel's economic management. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . Seven years ago, in the face of mounting costs, the United States withdrew . Washington D.C. 20036 The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. 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. [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. China's venture capital investments in Israel amount to approximately US$1.77 billion and are concentrated in the tech sector; in 2015 alone, China invested about US$500 million in Israeli startups. 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. It also came up in discussions between US National Security Advisor John Bolton and Israeli PM Benjamin Netanyahu when they met on January 7, 2019. Playtika described the Jelly Button acquisition as an important part of its vision to become the world's leading mobile-gaming company. The government of The People's Republic of China (PRC) and the government of the State of Israel signed a bilateral agreement in 2010 to form the China-Israel Cooperation Program for Industrial R&D with the primary aim of supporting joint industrial R&D projects aimed at the development . ", Long before diplomatic relations were established in 1992 Israel had been selling arms to China. Chinas demand for alternative commercial technology trade partners in light of tightening American trade restrictions is an unexpected economic boon to Israel, but the importance of chips for technological advancement and military use means Israels position in this technology triangle is bound to attract Washington's attention. Canada bans TikTok from government devices over security concerns. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. Annual Lecture on China. [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. If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. [141], In May 2021, Israel's embassy in Beijing accused Chinese state media outlet China Global Television Network of "blatant antisemitism" when host Zheng Junfeng broadcast a segment accusing US policy on Israel of being influenced by wealthy Jews, during the 2021 IsraelPalestine crisis.[142][143]. A spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. [7] China is Israel's third largest trading partner globally and largest trading partner in East Asia. 3. Locating innovative technologies and setting up innovative technology-intensive projects. Bingde's visit was part of a tour that included stops in Russia and Ukraine. 2. Gen. Assaf Orion (Res.) China eased travel restrictions, while Israel reopened its consulate in Hong Kong (then under British administration), which would serve as the main point for diplomatic and economic contact between the two nations. Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. 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. Concerned about Chinas potential use of advanced airborne early-warning (AEW) radar systems, the United States dissuaded Israel from lucrative arms deals in 2000 and 2005, souring Chinese-Israeli security trade relations. 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. Israel is trying to manage a tricky balance between pleasing its ally, the U.S., without throttling lucrative technology deals with China. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial, Israel does realize that it cannot continue to sit on the fence. The report continued: "As China's BRI (Belt and Road Initiative) moves westward, its most important construction projects in Israel are the railway between Eilat and Ashdod, a private port at . The question is, with Israel, when China will cross the line? The economic ties between Israel and China have greatly strengthened in the past decade and received a push from a 2014 government decision that removed roadblocks and advanced technological and other cooperation agreements with China. [113] In 2013, Li donated US$130 million to Technion. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. The Israeli assurance to the US, is a first step of Israel choosing sides, but Israel should not wait for much longer before decisive steps. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. [139] In addition, Chinese Foreign Ministry Spokesperson Hong Lei earlier on 9 July 2014 issued a statement in response to the violence during the military operation, stating: "We believe that to resort to force and to counter violence with violence will not help resolve problems other than pile up more hatred. Israel's foreign-investment screening mechanism seemed to be working. The case of Huawei is illustrative. [11] Convergence of interests has made them natural partners. Expertise in fitting western equipment in Soviet made hardware helped in modernization of Chinese army and air force, this way Chinese defense modernization complemented Israel's need of cash to fund its domestic made high-tech weapons programs. 2. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . 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. The U.S. has often cited Chinas alleged theft in the mid-2000s of data related to the F-35, the stealth fighter aircraft, as a prime example of this objective. Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. [71] Israel is now China's second-largest foreign supplier of arms after Russia with China having purchased a wide array of military equipment and technology, including communications satellites. An official at the Israel Export Institute told Reuters that new data showed semiconductor exports to China jumped 80 percent last year to $2.6 billion. The strategic Great Power competition shifted the front line to the technological sphere, and accordingly, the cooperation between Washington and Jerusalem requires adaptation. As research shows, China's global tech transfer enterprise includes legal and illicit efforts, espionage and theft, business activity as well as academic relations, expanding well beyond investment. [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. by Lindsay Maizland [88][131], In 2010, the United Nations Security Council passed Resolution 1929, imposing a fourth round of sanctions against Iran for its nuclear enrichment program. It has the second highest concentration of high-tech companies in the world after Silicon Valley and the largest number of start-ups per capita in the world. The main Israeli export to China (51%) is electronic components, while Intel is responsible for 80% of exports, including chips made in Israel and sent to China for inspection and assembly. Moreover, even though the partnership is solely between the two countries, another player, albeit not explicitly mentioned, emerges between the linesChina. 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. 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. Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". But both Israel and the UAE, realize that beyond the benefits of a strong Chinese relationship, lie dangers given Chinas propensity to support geopolitical actors who are natural enemies of Israel. TIMES STAFF WRITER. Bilateral military relations have evolved from an initial Chinese policy of secret non-official ties to a close strategic partnership with the modern and militarily powerful Israel. Prior to the establishment of full diplomatic relations in 1992, Israel and China established representative offices in Beijing and Tel Aviv, which functioned as de facto embassies. Shira Efronis director of research at Israel Policy Forum. This delicate strategy is becoming harder to maintain as China becomes more interested in Israeli tech and tensions between Washington and Beijing grow. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. On the eve of then-Prime Minister Naftali Bennetts first meeting with President Biden, his office announced that Israel was taking American concerns about China seriously and regarded it as a matter of national security. 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. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. November 4, 2022 [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. Surprisingly, they seem to have tried to mask their attack trying to use Farsi and deploy countermeasures to make it seem that the attack originated in Iran. With mounting political pressure from its American allies and promising Chinese trade prospects, Israel is caught between its two largest and technology-hungry trade partners. [119] On October 2, 2017, the Chinese-owned Israeli-based mobile gaming development company Playtika Ltd. agreed to acquire Israel's Jelly Button Games Ltd. looking to expand its offerings into the casual-game space for an undisclosed sum. President Biden later welcomed Saudi support for the Partnership for Global Infrastructure and Investment (PGII) initiative by the United States, and the signing of a memorandum on intergovernmental cooperation in deployment of 5G and 6G communication systems. February 13, 2023 [110] In 2014, Chinese-Israeli tech deals totaled $300 million, up from $50 million in 2013, according to Israel's National Economic Council. [1] However, China did not establish normal diplomatic relations with Israel until 1992. 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. Israel was the first country in the Middle East to recognize the People Republic of China (PRC), in 1950. The negative implications of growing U.S.-China technology tensions are reverberating around the world with disrupted supply chains and protectionist trade policies. [76], On 13 August 2012, vessels from the PLA Navy's 11th escort fleet, led by Rear Admiral Yang Jun-fei, anchored at Israel's Haifa naval base for a four-day goodwill visit to mark 20 years of cooperation between the Israel Defense Forces and the PLA. To bring down the cost of production for the many consumer and industrial . [86][87][83][88] China has sought Israel's technology to increase its international economic competitiveness and risk management. Economists are forecasting that Mainland China may surpass the U.S. as Israel's largest trading partner in the near future. Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. The agency also had nearly 5,000 active counterintelligence cases on its books in the same year, nearly half dealing with China. Surging Chinese Commercial Technology Trade. As of 2018, the United States still significantly leads China in terms of high-tech capitalinvestment, with the United States accounting for 35 percent and China for 3 percent of investments. "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. Since then, the annual growth in trade has averaged 40%. On July 13, before President Biden landed in Israel, Over the past decade, Israeli policy focused on seizing the economic opportunity in its relations with China, and identified the main risks stemming from US disapproval. Investments by Chinese companies' links to the Chinese government, the People's Liberation Army, and the Chinese Communist Party pose security risks. . [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. [98] Several factors that contributed to the surge of Chinese investment in Israel including a surplus of money among Chinese conglomerate companies and wealthy individuals, a preconceived and favorable notion of Jews as being extremely smart and are blessed with great intelligence, and the warm welcoming reciprocation of China by Israel itself. 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. Sign in to stop seeing this. It is due to China and Russias support that Iran continues to financially and politically survive despite crippling sanctions from the West. Brig. [77] In July 2018, 180 acres of the Northern port in Haifa were transferred to Shanghai International Port Group Co. (SIPG) for a 25-year period of management. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. 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. A subsequent sting operation by the Federal Bureau of Investigation (FBI) ultimately lured Xu to in Belgium in 2018, where he was arrested and then deported. Instead of limits and threats by one side and tiptoeing by the other, Israel and the United States agreed to elevate their partnership, adapting it to challenges of the 21stcentury and the era of Great Power competition, with technology at its core. [35][41][42] With the intrinsic affinity that the Chinese people feel for the Jews, relations between the two communities have been mutually close, harmonious and friendly, due to shared common cultural similarities between the two peoples resulted Jews enjoying equal rights and coexisting peacefully alongside the mainstream Han Chinese populace with instances of Jews assimilating into the Han Chinese community through intermarriage. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. 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