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. . Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. As Yellinek has established, "Starting in the early 2000s, ties between the two countries began to blossom, mostly . 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. Click the link in that email to complete registration so you can comment. The Chinese government met with senior Hamas representative Mahmoud al-Zahar, who previously served as Palestinian foreign minister, during the June 2006 China-Arab Cooperation Forum in Beijing which held direct bilateral talks despite protests from Israel and the United States. [7] China is Israel's third largest trading partner globally and largest trading partner in East Asia. 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. The government of Israel has been eager to negotiate a deal with China completed in the hope that an influx of foreign workers will increase the rate of housing construction in Israel and reduce the costs of new homes. This group should include a consultative structure led by the White House and the U.S. State Department with the Israeli Prime Minister's Office and Ministry of Foreign Affairs to address differences . 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. Israeli technology companies are heading to China, too. ", "It's kosher: Israel embraces Chinese investment", "Alibaba Invests in Israeli Cyber-Focused Venture Fund", "Israel applies to become founding member of China development bank", "Li Ka-shing fund leads US$10.8 mln Israel investment", "China's Fosun International to Acquire Phoenix Holdings From Israel's Delek", "China's Fosun to Buy Israeli Co Ahava for $77 Million", "China is increasingly becoming key for Israel's high-tech industry", "China's tech money heads for Israel as US welcome wanes", "China consortium buys Israel's Playtika for $4.4 billion", "China's Midea buys Israeli co Servotronix", "Playtika Acquires Israel's Jelly Button to Expand Game Offerings", "China Remains Israel's Fastest Growing Source Of Tourists In 2017", "Return of the Red Card: Israel-China-U.S. Triangle", "China seeks ban on its citizens working in West Bank", "The Chinese Penetration of Israeli Media", "Bank of China Says It Hasn't Helped Hamas", "The China bank is not the issue here, dude", "Israel delivers shocking blow to Bank of China terror victims' families case", "China Can Posture, but It Can't Bring Peace to the Middle East", "Israel Makes Case to China for Iran Sanctions", "China Condemns Israel's Attack on Gaza Aid Flotilla", "Ministry of Foreign Affairs of the People's Republic of China", "General Assembly Votes Overwhelmingly to Accord Palestine 'Non-Member Observer State' Status in United Nations", "India and China Back Unified Palestinian Government", "China repeats support for Palestinian U.N. bid", "U.S. casts lonely vote against establishing war crimes inquiry in Gaza", "Foreign Ministry Spokesperson Hong Lei's Regular Press Conference on July 9, 2014", "China pushes four-point Israeli-Palestinian peace plan", "Israel accuses Chinese state TV of 'blatant antisemitism', "Israel accuses China state TV of 'blatant anti-Semitism'. In an August 4 The Jerusalem Post article titled "Taiwan, US, China - what is Israel's position?" former Israeli ambassador to China Matan Vilnai issued a stark warning to remain neutral . [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 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. [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. 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? ", "Ynetnews Opinion - US alienation leading to Israeli-Chinese renaissance", "China's century-old support for Zionism surfaces in letter", "Israel and China quietly form trade bonds", Israel Strengthening Representation in China, "Netanyahu: Israel and China must cooperate on security and trade", "Why China Must Pay Attention to the Israel-Palestine Conflict", "How Israel is winning the social media war in China", "Chinese ambassador to Israel found dead at home", "Chinese ambassador to Israel is found dead in his home", "China warns Israel not to let U.S. pressure hurt relations", "Similarities Between Chinese People and Jewish People", "Stop and smell the blossoming ties between Israel and China", "China's ambassador to Israel, Zhao Jun, is in love", "The Chinese Believe That the Jews Control America. 1111 19th Street NW - Suite 500 [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. The Nationalist government of the ROC had been historically sympathetic to the Zionist cause, while Sun Yat-sen affirmed his support for the creation of a Jewish state. [101] On June 22, 2015, The Israeli conglomerate Delek Group agreed to sell a 52 percent controlling stake of its company to the Chinese civilian-run conglomerate Fosun International. China is Israel's third-largest trade partner behind the EU and the US. 3. By pausing the F35 deal, the UAE has, for now, bought itself time in order to keep a balance in between the US and China. 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 . [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. [10] Some commentators note similarities between the cultures and values of the two nations. Position: Appointment at the rank of Assistant, Associate or Full Professor in Full time, Faculty Member, Life Science with Guangdong Technion-Israel Institute of Technology (GTIIT). The China-Israel wiki seems to show relatively friendly relations. 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 . He discussed the importance of the nuclear agreement with Iran and the importance of the continued peace talks. China has criticized Israel's construction of settlements in the West Bank and East Jerusalem. 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. [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. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. China has not even spared its strategic partners from such commercial espionage. Li has been the pioneer of Chinese investment in Israel and with his investments in Israeli high-tech, Li set the stage for Hong Kong's business elite stressing that it is financially sound and even necessary for the future of Chinese economic prosperity to invest in emerging Israeli technology companies. 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.. On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. [65][66], China had looked to Israel for the arms and military technology it could not acquire from the United States, Europe and Russia. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. At the same time, Jerusalem and Washington will strive to further fruitful and safe relations with China, an important economic partner of both countries, as of many others in the region and the world. [80][112] In 2013, China and Israel began to boost the economic relations with respect to agriculture. Sanctions imposed by Western countries almost froze Chinese access to advanced military and dual-use technologies. At any rate, the J-10 is more inspired by the Lavi than an outright clone. [36] With the increasing economic cooperation between the two countries, China is spearheading an increasing number of partnerships with Israeli universities such as the Tel Aviv University and Tsinghua Universitys $300 million joint research center, a $130 million donation to the Technion, and a program devoted entirely to teaching the Israeli business culture at Peking University. The initial recommendations made in the joint document, parts of which were included in the statement, included clarifying and aligning differing strategic perspectives between the two sides on China; developing a joint working group for coordinating technological policy and strategy; increasing involvement by the private sector, academia, the legislatures, and enforcement agencies; launching track 1.5 and 2.0 dialogues; and improving regulation and oversight of new dual-use technologies and investments. This report is part of the RAND Corporation Research report series. Washingtons pressure on Israel focused on halting Chinas 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. [110] In 2014, Chinese-Israeli tech deals totaled $300 million, up from $50 million in 2013, according to Israel's National Economic Council. 2. 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. It is . China has advanced expertise worldwide, and can feed the global food supply chain through the use of contemporary technology. Third, is the moral (and public relations) risk that Israel will become implicated in the domestic oppression of people accused of opposing the CCP. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. 5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. Also available in print form. [31][32], In August 2022, Liu Jianchao warned the Israeli ambassador to China, Irit Ben-Abba, against taking the U.S. position on the Uyghur genocide. 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. [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. [79], China is one of Israel's closest economic allies in East Asia where both countries have placed considerable importance on maintaining a strategic and supportive economic relationship. [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. The Times of Israel is committed to Israel as a Jewish and democratic state, and independent journalism provides an essential protection for democratic equality. By JIM MANN. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. The secret, circuitous journey began late one night in February 1979 when an unmarked Boeing 707 took off from Ben Gurion Airport in Tel Aviv, Israel. Academic and Higher Education Webinars, C.V. Starr & Co. Israel then sought to benefit from the situation and became China's backdoor to western technology. Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. According to The New York Times, Israel lobbied for the sanctions by explaining to China the impact of any pre-emptive strike on Iran would have on the world oil supply, and hence on the Chinese economy. [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. which China has sought Israel to invest in as an alternative. 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 . Both are AES states but, why are they so different regarding recognition of Israel? Assaf Orion Shira Efron. ", "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? According to Eliran Elimelech, Israel's commercial attach in Beijing, the agreement was expected to deepen ties between Israeli and Chinese businessmen in the short term, and in the medium to long term to improve trade conditions between the countries. The successful conclusion of this spying case may set the tone for future American crackdowns against Chinas persistent economic espionage against the U.S., Israel and the Westa step above the sanctions route that the Western world has pursued for the last few years. This research was sponsored by the Office of the Secretary of Defense and conducted within the Cyber and Intelligence Policy Center of the RAND National Defense Research Institute (NDRI). This article was originally published on the INSS website. [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. 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. 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. 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. Economists are forecasting that Mainland China may surpass the U.S. as Israel's largest trading partner in the near future. Israel's innovative climate technology uniquely positions Israel to help tackle the climate crisis. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. "The basic research of industries in Israel is better, and the country emphasizes core technology . by Lindsay Maizland Global Climate Agreements: Successes and Failures, Backgrounder For this, the CPC reportedly set up talent programs to attract overseas experts to work in China., A study by the U.S. Senate in 2019 revealed that the CCP had funded over 200 such programs, which recruited over 7,000 experts in total. [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. 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. The China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . Is Iran Ready to Build a Nuclear Bomb or Not? 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. According to the read-out from the Israeli President's Office, Herzog and Xi discussed opportunities to enhance Israeli-Chinese bilateral ties ahead of the 30th anniversary of the establishment of diplomatic relations, in honor of which Herzog and Xi invited each other to visit their respective countries. [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. U.S. Says Israel Gave Combat Jet Plans to China. On May 25, 2015, the Israeli Trade Authority signed an Authorized Economic Operator (AEO) agreement that simplifies customs and approval procedures for Chinese exporters to Israel. 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. He served in the Craxi government in the 1990's as the special assistant to the deputy Prime Minister and Minister of Justice Martelli and worked closely with anti-mafia magistrates Falcone and Borsellino. [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. Chinese and Israeli interests in the Middle East are incompatible. From the outset, the mechanism was designed to prioritize economic over national security considerations, and has not covered foreign investments in technology, primarily due to (justified) concern lest additional government regulation would dampen the hi-tech sector. The Sino-Israeli relationship is particularly complex. 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. In January 2011, the Israeli Central Bureau of Statistics stated that Israeli exports to China had grown by an annual 95 percent in 2010 to $2 billion. And educational and technological entrepreneurship initiatives that are the basis for the future. The Israeli ban on exporting defense technologies to China goes back to 2000, when intense American pressure led Israel to cancel the sale of the Phalcon Airborne Early Warning System to China. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. The security risks of Chinese investment and construction could affect the Israel-U.S. relationship. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. What are the security implications of Chinese investments in Israeli technology and infrastructure? [29][30], In May 2020, the Chinese ambassador to Israel, Du Wei, was found dead at his home in Herzliya. [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. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. As of 2011, some sixty Israeli companies are listed on the Nasdaq. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. Sign in to stop seeing this. 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Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. [106] The group SIGNAL has established an exchange network of Chinese and Israeli scholars and academics to help them collaborate with each other on various academic projects. Media coverage of this statement paled in comparison with other issuesIran, Palestinians, and regional normalizationeven though it specifically demonstrated US appreciation of Israeli innovative value. 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. 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. Israeli entrepreneurs may also under report,fearful that receiving Chinese investments could negatively affect business in the United States. Canada bans TikTok from government devices over security concerns. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. In December last year, TIME magazine called InSightec's FDA-approved MR Guided Focused Ultrasound one of the best 50 inventions of the year.. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. [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. 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. [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. Annual Lecture on China. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Israel has more than 6,500 active tech firms, or about one company per 1,400 people. "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. The Israeli government responded to this pressure partially by establishing . Israel's arms sales to China. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. Registering also lets you comment on articles and helps us improve your experience. [98][100], More than 1000 Israeli start-up companies have set up operations in China. [28], During the 2014 IsraelGaza conflict, it was reported that Israel was winning the public opinion battle in China with most Chinese social media users siding with Israel. If Israeli systems are hacked, both Israel and its trade partners could be compromised. [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. [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. It is located at the east side and south side of Shantou University. 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. [105] In August 2012, with Chinese-Israeli trade growing, the Beijing University of International Business and Economics in Beijing set up a department dedicated to studying Israeli economics and Judaism, while some Chinese universities began offering Hebrew courses. The Washington Institute for Near East Policy, China Below the Radar: Israel-US Strategic Dialogue on Technology, In a joint press conference with Prime Minister Yair Lapid on July 14, 2022, President Biden. What makes the whole story more complicated is that another Israeli ally, India, despite having border tensions with China and locked in a battle of dominance in South Asia with China, continues to double its trade with the Peoples Republic. Is There a Match for Tech Between China and 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. Please try again or choose an option below. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. Knowledge at Wharton Staff. A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. During the 1955 AsianAfrican Conference, China (under the PRC) expressed support for the Palestinian right of return, but refrained from denying Israel's right to exist and secretly pursued trade ties with the Israelis. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. 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. 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. China-Israel Technology. 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That saw the most new Israeli listings on the INSS website report series both sides the!, fearful that receiving Chinese investments could negatively affect business in the near future may under! Prohibited ; linking directly to this pressure partially by establishing risks of Chinese investment and construction could affect the relationship... 11, 2022, 5:49 PM Edit ; China, which stated that the would! And reuse permissions, please visit www.rand.org/pubs/permissions 5g and 6G communications are an attractive espionage target as technologiesareused. Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International ( CRI ) began broadcasting in Hebrew, headed by Huawei has! U.S. concern is that China & # x27 ; s third-largest trade partner behind the EU and country... Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety,,. 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