[137][138][136], On July 23, 2014, China was among the 29 nations who voted in favor of the investigation by the United Nations Human Rights Council of war crimes committed by Israel during Operation Protective Edge, with the United States being the only nation in dissent. We believe we will succeed in bringing these connections 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. [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. As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . This delicate strategy is becoming harder to maintain as China becomes more interested in Israeli tech and tensions between Washington and Beijing grow. 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. IVC estimates 138 have a presence in China. 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. He discussed the importance of the nuclear agreement with Iran and the importance of the continued peace talks. The United States is also taking action to form atechnological alliancebetween advanced democracies, and the required measures for cooperation with the United States would also pave the way for Israeli involvement in this emerging multilateral framework. now's the time to act. The declaration by the leaders on the technological partnership will be put to the test in its implementationthe success of both National Security Councils, not only in launching processes leading to actual progress in fields of technological cooperation, but also in reinforcing the strategic relations between Israel and the United States, Israels great ally. 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. 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. China ultimately supported this resolution, although initially, due to the strong bilateral relations and nuclear cooperation between the China and Iran, China opposed the sanctions. The conference was titled, "Navigating Through the Storm: Israel and the U.S.-China Rivalry" and brought together a number of experts to analyze the issues surrounding Israel, the United States and China. [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. China has advanced expertise worldwide, and can feed the global food supply chain through the use of contemporary technology. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. [2] [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 . 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. More research is needed into the nature of the threat to the United States posed by Chinese acquisition of sensitive technologies from U.S. allies, including, but not limited to, Israel. 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). 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. [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. China hopes to control Israeli infrastructure, like it will control Iranian infrastructure while using Israel as a fertile ground to source technology, either by buying it or by stealing it. And what about Israel? (December 14, 2022 / JNS) At a conference titled "U.S.-China Competition: Meet the Middle East," high-level participants from Israel, the United States and China gathered in Tel Aviv on Dec. 8 to examine the primary drivers shaping Israel's China policy, particularly in view of a sharpening Sino-American Mideast rivalry. If you guessed that the lie was number 3, you're right. 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. The question is, with Israel, when China will cross the line? February 1, 2023 The Israeli government responded to this pressure partially by establishing . 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. [17] Shared commonalities and similarities between the cultures and values of the two nations, ancient roots as well as convergence of interests have driven the two countries closer with respect to scientific, economic, diplomatic and cultural ties. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. Chinese and Israeli interests in the Middle East are incompatible. The company operates worldwide and has subsidiaries in Germany and Mainland China. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. 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). No further sales of military technology between China and Israel havebeen reported since. IAI Lavi and UAV technology seems to have been sold to China. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. Through the years, many have been acquired, merged with other companies, privatized, or gone out of business. Early in 2022, the Israeli government informed the US administration that going forth, it will clear all major business deals with China first with Washington. "Israel can be a partner, a junior partner, but a perfect partner for China in the development of a variety of technologies that change the way we live, how long we live, how healthy we live . The strategic Great Power competition shifted the front line to the technological sphere, and accordingly, the cooperation between Washington and Jerusalem requires adaptation. 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. [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 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. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. He was extradited from Belgium in 2018, and his trial began in October 2021. What aspects of Chinese investment into Israel merit further investigation and research? Even though the sales of military technologies have stalled, commercial technology trade with China has grown at a dizzying pace, boosting Israels technology exports. 5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. the chief American concern is with Chinese investments in the fields of technology that are considered . Foreign Investment and Regulatory Policies in Israel, Chinese Technology Investment and Construction in Israel, Security Risks for Israel and the United States, Concluding Thoughts and Research Gaps for Further Study. ", "Israel-China Alliance Moves Forward With $2 Billion 'Red-Med' Freight Rail Link Alternative to Suez Canal", "Israel-China "water-trade" to rise significantly", "Zev Sufott, Israel's first ambassador to China, dies aged 86", "Israel's first-ever ambassador to China dies at 86", "Harbin people congratulate Olmert on Israeli election success", "After three years of negotiations, Netanyahu to visit China", "Netanyahu set to scrap China trip, again, amid election fever", "Shanghai's Jews celebrate historic synagogue reopening", "Cantor Pushes China to Open Historic Synagogue", "China FM: Iran deal 'first step' toward settling nuclear issue - The Times of Israel", "Wang Yi meets Palestinian & Israeli leaders to boost peace talks", "Israeli, Chinese Presidents Call for Increased Cooperation Despite U.S. It is due to China and Russias support that Iran continues to financially and politically survive despite crippling sanctions from the West. And it has often accused China of engaging in such activity through attacks against American companies to steal commercially valuable intellectual property data such as corporate strategies, product designs, business negotiations, and dual-use technology-related data. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity. The Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. 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 . Sanctions imposed by Western countries almost froze Chinese access to advanced military and dual-use technologies. This representation of RAND intellectual property is provided for noncommercial use only. And educational and technological entrepreneurship initiatives that are the basis for the future. For Israel, this placed the dilemma of commercial versus political and national security interests at the . [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. 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. 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. The technological partnership between the United States and Israel, therefore, is aimed not merely at encouraging the flow of technology from Silicon Wadi to Silicon Valley, i.e., between Israel and the United States, but also at limiting Chinas access to Israels technology and innovation, with an emphasis on cutting-edge technologies. 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. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. Tue, Feb 28, 2023 LOGIN Subscribe for $1 Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. 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. Academic and Higher Education Webinars, C.V. Starr & Co. 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. [107] Since 2012, with the appearance of the first signs of a crisis in Israel's relationship with the U.S. (and the European Union) with regards to the negotiations with the Palestinians, many Israeli state officials began pointing to China's economic prowess as a possible alternative to the economic dependence on the West. In 2020 his first fiction "Napoli sta bene" was published. By registering you agree to the terms and conditions. [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. [70] Some estimate that Israel sold arms worth US$4 billion to China in this period. 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. The company was active until 1992, when official diplomatic relationships were announced between Israel and China. [72] On 25 May 2011, the Commander of the People's Liberation Army Navy, Admiral Wu Shengli, made an official visit to Israel, meeting with Barak and Rear Admiral Eliezer Marom. Investments by Chinese companies' links to the Chinese government, the People's Liberation Army, and the Chinese Communist Party pose security risks. Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. [109] Recent high end deals include a Chinese donation of $130 million to Technion for a research center, Beijing winning a $2 billion tender to build the Med-Red railway linking Ashdod port with Eilat as well as a $1 billion Israeli port tender, a $300 million joint research center between Tel Aviv University and Tsinghua University, and Chinese acquisition of a controlling stake in Israel's Tnuva dairy company for more than US$1 billion. 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. 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 . "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. The official steps that led to the recent statement have not yet been made public, but the outlines of this new approach to US-Israel relations in the era of Great Power competition were already published in March 2022 in ajoint documentby three research institutes following a year of work: the Center for a New American Security (CNAS) and the Foundation for Defense of Democracies (FDD), from both sides of Washingtons political spectrum, and Israels Institute for National Security Studies (INSS). [40][15] Jews remain a small minority in China, but unlike many parts of the world, Jews have historically lived in China without any instances of antisemitism from the Han majority populace contributing to mutual respect and admiration between the two peoples. 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. ", "Misconceptions and lessons about Chinese and Jewish entrepreneurs", "The Common Ground between China and Israel", "Jewish and Chinese: Explaining a Shared Identity", "Shavei Israel | Why do the Chinese admire the Jews? [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions tightrope, trying to balance its commercial and security interests with the two great powers. The Israeli government responded to this pressure partially by establishing an advisorymechanismfor national security aspects of foreign investments in areas subject to regulation. Enhanced coordination between Israels commercial and security technology sectors on dual-use technology transfers can help sustain this delicate balance. . The Bank of China subsequently denied providing banking services to terrorist groups: "The Bank of China has always strictly followed the UN's anti-money laundering and anti-terrorist financing requirements and regulations in China and other judicial areas where we operate. with Jeremi Suri 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. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. Advertisement. The former head of Mossad, Efraim Halevy, is one of the major critics in Israel who believes that the country should examine the geopolitical considerations with China and has consistently warned the Israeli government against involving the Chinese in the Red-Med project, arguing that it could lead to a crisis in strategic relations with the United States. 15. Israel's foreign-investment screening mechanism seemed to be working. [25] This was opened in June 1990. Economists are forecasting that Mainland China may surpass the U.S. as Israel's largest trading partner in the near future. And, finally, there is the possibility that China will exploit Israeli technology in . . According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. [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. . Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. 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. Your IP: Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. Defense contracts played a leading role here but were also responsible for the . ", "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? Since then, the annual growth in trade has averaged 40%. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. 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. Also available in print form. [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. The report concludes with a set of open-ended questions that merit further investigation to better understand the magnitude of risks associated with Chinese investment in the Israeli market. Chinese investment and construction could lead to leaks of sensitive technology and cyberespionage. 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. [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 addition, China sees Israel as an astute technology exporter and has sought the Israeli technological development that China lacks, fueling the successful cooperation between the two countries. Please try again or choose an option below. Israel has more than 6,500 active tech firms, or about one company per 1,400 people. [55][56], In 2007, Israeli Prime Minister Ehud Olmert (whose father was raised in the northern Chinese city of Harbin, whose Jewish community dated from the 19th century [57] ), visited China to bolster trade and military cooperation and seek China's support in the conflict over Iran's nuclear proliferation. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. [11] Convergence of interests has made them natural partners. Assaf Orion Shira Efron. 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. Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. There are three other major . Shira Efronis director of research at Israel Policy Forum. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. Annual Lecture on China: Frayed RelationsThe United States and China, Virtual Event Roughly 15 hours later . Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. January 31, 2022, How Tobacco Laws Could Help Close the Racial Gap on Cancer, Interactive What is the nature of Chinese investment in Israeli technology and infrastructure? [12][13] China is one of the few countries in the world to concurrently maintain warm relations with Israel, Palestine, and the Muslim world at large. The document and an internal paper that preceded it were presented to government officials in the United States and in Israel, and helped in designing the newly announced agreement. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. Since then, the Trump and Biden administrations have pressured Israeli governments to reduce the transfer of technology to China, fearing that it would help strengthen the Chinese military and economy at the expense of the United States. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. [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]. However, economically insignificant it may be for both China and the US, the Haifa port could become a critical battleground in a new Cold War between the two superpowers. "The basic research of industries in Israel is better, and the country emphasizes core technology . Efron, Shira, Karen Schwindt, and Emily Haskel, Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and the United States. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . It was set up in 2020 after pressure from America, which was concerned that China could be getting Israeli weapons technology. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. At any rate, the J-10 is more inspired by the Lavi than an outright clone. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. 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. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. Gen. Assaf Orion (Res.) Ph.D. Student, Pardee RAND Graduate School, and Assistant Policy Researcher, RAND, Assistant Policy Researcher, RAND, and Ph.D. Student, Pardee RAND Graduate School. [69], Israel was ready to sell China the Phalcon, an Israeli airborne early-warning radar system (AWACS), until the United States forced it to cancel the deal. China-Israel relations (In Chinese : Zhng y gunx. The statement was designed to further research and development efforts in four fields: pandemic preparedness, including early warning and rapid countermeasures; artificial intelligence for optimization in transportation, medicine, and agriculture; climate change response, including water, waste, and clean and renewable energy technologies; and scientific exchange programs in quantum computing and other areas. [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. 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 . Performance & security by Cloudflare. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. [136] On June 3, 2014, China recognized the Palestinian unity government between Hamas and Fatah. 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. Herepeatedthis message at a summit with leaders from the Gulf and Arab countries on July 16. 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. [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. May 31, 2021, 12:24 pm. [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. [10] Some commentators note similarities between the cultures and values of the two nations. [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. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. Is There a Match for Tech Between China and Israel? [14] The acquisition of Tnuva was the biggest Chinese buyout of an Israeli company since 2011 when the China National Chemical Corporation bought Adama, the pesticides and crop protection company then known as Makhteshim Agan, for US$2.4 billion. Trade deficit with China, this placed the dilemma of commercial versus political and national security of., the Chinese established Chinese institutes in Israel, to public and media activities Israel-based... Disasterand Erdogans: How the Earthquake could Spell the End of his Rule on June 3, &... Trade deficit with China ] Netanyahu visited China again in 2017 amid celebrations place. Worldwide and has subsidiaries in Germany and Mainland China may surpass the over. Point - a linchpin of the nuclear agreement with Iran and the country emphasizes core.... 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