Chinese and Israeli interests in the Middle East are incompatible. China has not even spared its strategic partners from such commercial espionage. In December last year, TIME magazine called InSightec's FDA-approved MR Guided Focused Ultrasound one of the best 50 inventions of the year.. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. [75] He came a guest of the Israeli Chief of Staff Benny Gantz, who received him with an honor guard at the Kirya military headquarters in Tel Aviv. Furthermore, Israeli officials are concerned about the numerous Chinese cyberattacks on Israeli companies and government networks. This representation of RAND intellectual property is provided for noncommercial use only. As a result, Sino-Israeli relations have cooled. Third, is the moral (and public relations) risk that Israel will become implicated in the domestic oppression of people accused of opposing the CCP. 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. Since the 2010s, China and Israel enhanced bilateral economic ties with China connecting both Chinese and Israeli businessmen and investors to invest in each other's economies respectively. [134] During the November 2012 Operation Pillar of Defense in the Gaza Strip, the Ministry of Foreign Affairs of the People's Republic of China urged all sides to display restraint. . China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. The Sino-Israeli relationship is particularly complex. As early as 2017, the USNational Security Strategypointed to China as its top priority, innovation as a pillar of national security, and the key technologies for the future as an essential front in the Great Power competition. Surging Chinese Commercial Technology Trade. "Groundbreaking of Guangdong Technion Israel Institute of Technology in China," Technion Institute of Technology (December 17, 2015). 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.. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. Israeli-North Korean relations are hostile. U.S. officials think Chinese access to cutting-edge technologies . [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. One example in February 2012 in which both nations signed a $300 million deal to export Israeli water technology to China. RAND is nonprofit, nonpartisan, and committed to the public interest. Click the link in that email to complete registration so you can comment. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. 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. Assaf Orion Shira Efron. A technologically robust Israel can gain from being pinched in a technology triangle as long as it maintains well-thought-out controls on dual-use technologies. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. 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 . Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . February 13, 2023 A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. 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. [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. 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. We believe we will succeed in bringing these connections No further sales of military technology between China and Israel havebeen reported since. [103] In September 2011, the Israeli Minister of Transport, Israel Katz, stated that China and Israel were discussing the construction of a high-speed rail link joining the Mediterranean Sea with the Red Sea. To bring down the cost of production for the many consumer and industrial . The operation of infrastructure projects affords China unique surveillance opportunities and possibly economic and political levers of influence. Through the years, many have been acquired, merged with other companies, privatized, or gone out of business. According to analysis from the Jamestown Foundation, China's policy on Israel and Palestine is based on soft power diplomacy, and maintain a balancing act between its Israeli and Arab world ties. [37][38], Though Israel established diplomatic relations with China in 1992, the ties between the Chinese and Jewish people remain centuries old in addition to Israel and China being products of ancient civilizations dating back thousands of years. Zelensky: If China allies itself with Russia, there will be world war III. 2023 The Times of Israel , All Rights Reserved. is the Rueven International Fellow at The Washington Institute, a senior research fellow at the Institute for National Security Studies, and former head of the Strategic Division in the IDF General Staffs Planning Directorate. 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? [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. The question is, with Israel, when China will cross the line? 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. The company was active until 1992, when official diplomatic relationships were announced between Israel and 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. 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. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. The amount of venture capital money invested in Israeli companies has risen 50% in the last three years. This document and trademark(s) contained herein are protected by law. [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. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. [13] Since 2013, Chinese investors have begun to show a growing interest in Israeli firms. As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. The United States is also taking action to form a, 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 a, Israel Expands Settlements as Smotrich Increases His Authority. China Paradigm interviewed Rami Blachman, the founder of China Israel Innovation Accelerator and business advisor at AgriNation Venture Capital, to have a comprehensive knowledge of Israeli technology companies in China, to best identify the emerging markets in China, and to look into the market strategies in various Chinese cities.. Rami Blachman, bringing Israeli technology companies in China Spread the word. You can email the site owner to let them know you were blocked. China-Israel Technology. [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. Israel-China medical fund to raise $300m for joint drug development ventures [80][112] In 2013, China and Israel began to boost the economic relations with respect to agriculture. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. [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. Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. [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. Once registered, youll receive our Daily Edition email for free. Ph.D. Student, Pardee RAND Graduate School, and Assistant Policy Researcher, RAND, Assistant Policy Researcher, RAND, and Ph.D. Student, Pardee RAND Graduate School. | Eyes on Europe & Middle East", "China-Israel economic, tech cooperation to enter new stage: Israeli minister", "Through Trade and Tourism, China Turns Its Attention to Israel", "China And Israel: A Perfect Match, Growing Steady", "Netanyahu: Israel has strong relationships with China, India", "The uncertain future of China-Israel relations", "Does China Not Need Israeli Technology Anymore? 1. [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. November 4, 2022 the chief American concern is with Chinese investments in the fields of technology that are considered . ", "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'. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. Israel then sought to benefit from the situation and became China's backdoor to western technology. 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. North Korea does not recognise Israel, denouncing it as an "imperialist satellite". [86][87][83][88] China has sought Israel's technology to increase its international economic competitiveness and risk management. 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. The attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. 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. [34][35][36] Shared affinities and similar cultural commonalities has not only been an impetus for the close bonds between China and Israel but has also created a symbol of brotherhood between the two communities. C.V. Starr & Co. 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. [21] Until the 1980s, China refused to grant visas to Israelis unless they held dual citizenship and carried a passport of a country other than Israel. The 13-year-old Haifa company has developed a futuristic technology called ExAblate, a non-invasive, magnetic resonance-guided focused ultrasound surgery system that thermally ablates, or destroys, tumors inside the body. In November 2008, then China Ambassador to the United States Yesui Zhang stated that the "continued construction of settlements on the West Bank is not only in violation of Israel's obligations under international law, but is also detrimental to guaranteeing Israel's own security." Use Adobe Acrobat Reader version 10 or higher for the best experience. 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. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. 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.. IVC estimates 138 have a presence in China. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. 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. [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. [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. There are three other major . 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. In February this year, Israel had uncovered a nexus . 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. It is . Sign in to stop seeing this. 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. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli [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. Although traditional espionage is an accepted part of statecraft worldwide, the U.S. government has repeatedly distinguished between such spying and commercial espionage. Israels willingness to walk away fromarms deals with the Chinese at the United States request is unsurprising given the countries strong military and political relationship. But every crisis is an opportunity. 1111 19th Street NW - Suite 500 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. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. [80] In January 2015, a number of Chinese information technology companies began to make investments in Israel, Chinese e-commerce giant Alibaba invested an undisclosed sum in Visualead, an Israeli company specialising in QR code technology. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. Israel's arms sales to China. 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. [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. 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. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. 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. now's the time to act. And what about Israel? Israel has earned a reputation in recent years as a tech powerhouse. He was extradited from Belgium in 2018, and his trial began in October 2021. However, if Israel did transfer Lavi technology to Chinaboth parties would have strong incentives to deny it. Is That a Good Thing? Moreover, even though the partnership is solely between the two countries, another player, albeit not explicitly mentioned, emerges between the linesChina. Even with these measures, a hard balancing act is bound to become harder as technology trade between the three countries increases and political and security tensions continue to escalate. [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. In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. 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. Registering also lets you comment on articles and helps us improve your experience. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. 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