[2] 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. 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. [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". 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. [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. Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. 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.. 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. [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. Click to reveal [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's innovative climate technology uniquely positions Israel to help tackle the climate crisis. [80][12][81][82] The economic synergy has served the two respective countries greatly where Israel's global technological prowess combined with China's global economic influence, industrial manufacturing capabilities, and marketing expertise made cooperation between the two nations inevitable. Chinese investment and construction could lead to leaks of sensitive technology and cyberespionage. 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. Renewing America, Backgrounder 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. Since then, the annual growth in trade has averaged 40%. Although China may see Israel as more lenient than the U.S. in sharing technology, Israel may ultimately act similarly cautiously as it does not . RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. China-Israel Technology. [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. . For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. A spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. [64], China and Israel have developed close strategic military links with each other. Registering also lets you comment on articles and helps us improve your experience. Moreover, even though the partnership is solely between the two countries, another player, albeit not explicitly mentioned, emerges between the linesChina. [19][20], In 1947, however, the ROC abstained from voting in the United Nations Partition Plan for Palestine. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. 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. Just days after Xus conviction, FBIs top official Christopher Wray, while testifying to the Senate Intelligence Committee, underlined that Chinas persistent espionage campaigns have adversely impacted Americas economic fortunes. [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. [65] China is a vital market for Israel's aerospace and defense industry. 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." which China has sought Israel to invest in as an alternative. [98][99] Israel has recognized China's potential as a strategic economic partner partially due to China's reputation as a fast growing economy that is projected to the largest economy in the world, making it a colossal opportunity for Israeli companies to do business in the Chinese market and create an array of business interests. 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. Israel's foreign-investment screening mechanism seemed to be working. Your IP: 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. Once registered, youll receive our Daily Edition email for free. 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. China has not even spared its strategic partners from such commercial espionage. Over the past decades he has been involved in peace building and diplomacy efforts in the Middle East and North Africa. Israel began selling military technology such as missiles, radars, and navigation systems to China in the 1980s, even before Beijing recognized Israel, and technology trade quietly intensified in the 1990s. The CCP, adept at this game, left no stone unturned in pursuing its endeavor. In other words, without any explicit anti-China statements that would embarrass his Saudi hosts, the Biden administration promoted practical measures mobilizing their support for US efforts in the Great Power competition. In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. China-Israel, China-Middle East, technology transfer, export control, defense industry TECHNOLOGICAL TIES BETWEEN ISRAEL AND CHINA HAVE BEEN A CENTRAL and constant element since the start of their relationship in the late 1970s, as Israel expected that in addition to economic benefits they would also serve its political and strategic interests. 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. China-Israel relations (In Chinese : Zhng y gunx. Global Climate Agreements: Successes and Failures, Backgrounder [111] Baidu, China's largest search engine, has put US$3 million into Pixellot, an Israeli video capture start-up and provided funds to Carmel Ventures, an Israeli venture capital firm as well as lead a $5 million investment round in the Israeli music education firm Tonara. 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. 1624, July 26, 2022. Israel's arms sales to China. Annual Lecture on China: Frayed RelationsThe United States and China, Virtual Event 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. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. [11] Convergence of interests has made them natural partners. 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. 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. 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. Israel firms are an attractive espionage target as theircutting-edge technologiesareused by many major powers. 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. 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. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. February 22, 2023 The security risks of Chinese investment and construction could affect the Israel-U.S. relationship. 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. 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. Bingde's visit was part of a tour that included stops in Russia and Ukraine. Intel has found a workaround to U.S.-China trade tariffs by increasing direct sales from its Israeli plant,thus boosting semiconductor trade between Israel and China by 80 percent in 2018. The Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. 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. ", "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'. (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. [68], Events in Tiananmen offered an additional incentive for military relationship, funded in Israel's reputation as a reliable arms supplier. [36] The scientific and technological advancements made by Israel had led many Chinese politicians to respect the country's ingenuity and creative inventiveness because they know of the contributions that as Israeli agricultural, drip irrigation, and solar energy technologies are seen as crucial to China's economic development. 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 . 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. 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 . 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. 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. The Israeli office was formally known as the Liaison Office of the Israel Academy of Sciences and Humanities. "The Evolution of Sino-Israeli Relations". [118] On February 11, 2017, the Chinese electronics giant Midea Group as part of their industrial automation and intelligent manufacturing campaign acquired control of Petah Tikva-based company Servotronix, an automation solutions developer at the cost of US$170 million. 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. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. 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. 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 chief American concern is with Chinese investments in the fields of technology that are considered . This report is part of the RAND Corporation Research report series. In this particular case it may help Israel to decide and not react, given Chinas global aggressive stance. 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. The case of Huawei is illustrative. ", "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. Although traditional espionage is an accepted part of statecraft worldwide, the U.S. government has repeatedly distinguished between such spying and commercial espionage. There are three other major . 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. Use Adobe Acrobat Reader version 10 or higher for the best experience. If you share these values with us, please consider supporting our work by joining The ToI Community. [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. January 31, 2022, How Tobacco Laws Could Help Close the Racial Gap on Cancer, Interactive 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. [59], As part of the 2010 World Expo, the Shanghai Municipal Government began to allow the city's Jewish community to use the historic Ohel Rachel Synagogue for regular Shabbat services. 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. 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. [116][117] On July 31, 2016, a Chinese consortium purchased Playtika, an Israeli online gaming company founded in 2010, for US$4.4 billion in cash. [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. By registering you agree to the terms and conditions. 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. The Israeli government responded to this pressure partially by establishing . The former is a belated American response to Chinas strategic Belt and Road Initiative (BRI) for infrastructure, which was launched in 2013. Is That a Good Thing? 3. Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. This delicate strategy is becoming harder to maintain as China becomes more interested in Israeli tech and tensions between Washington and Beijing grow. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. North Korea does not recognise Israel, denouncing it as an "imperialist satellite". In the past 20 years, 97 percent of known investments in Israel from the People's Republic of China (PRC) were in the technology sector. As of 2011, some sixty Israeli companies are listed on the Nasdaq. [121][102], Israel's increasing defense cooperation with China has caused concern in Western nations, particularly the United States, which is the largest foreign supplier of military equipment to Israel. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. Ph.D. Student, Pardee RAND Graduate School, and Assistant Policy Researcher, RAND, Assistant Policy Researcher, RAND, and Ph.D. Student, Pardee RAND Graduate School. [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. Shira Efronis director of research at Israel Policy Forum. 2023 The Times of Israel , All Rights Reserved. [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. 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. The number of "Chinese entities that invested in Israeli high-tech companies," says the report, has gone up from 18 in 2013 to 34 in 2017, and they "invested on average annually in about 40 . [102], On 3 July 2011, Israel and the People's Republic of China signed an economic cooperation agreement to boost trade between the two countries. with Ivan Kanapathy, Bonny Lin and Stephen S. Roach, The U.S.-China-Israel Technology Triangle, Year in Review: Content Moderation on Social Media Platforms in 2019. 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