Israels separation of its commercial and security technology trade with China, however, is no easy task. It takes just a few seconds. [119] On October 2, 2017, the Chinese-owned Israeli-based mobile gaming development company Playtika Ltd. agreed to acquire Israel's Jelly Button Games Ltd. looking to expand its offerings into the casual-game space for an undisclosed sum. 2. [61], In December 2013, Chinese Foreign Minister Wang visited Israel and Palestine. [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. [127], In 2012, the families of eight Israeli terror victims of the 2008 Mercaz HaRav massacre in Jerusalem filed a $1 billion lawsuit against the Bank of China. RAND is nonprofit, nonpartisan, and committed to the public interest. 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. Other countries, including the U.S., work to lure top IP . Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. 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. 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. [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. February 13, 2023 Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . 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. Alibaba has also invested in Israel-based venture fund Jerusalem Venture Partners, becoming a limited partner joining Qihoo 360, another Chinese web company to have invested in the Jerusalem-based fund. 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. Previously in 2012, Chinese operatives had lured two Russian academics to obtain nuclear missiles-related information. 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 . [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. Israel's innovative climate technology uniquely positions Israel to help tackle the climate crisis. [65] Due to Israel's recognition of China, Israel has also limited its cooperation with Taiwan in order to foster closer ties with Mainland China. 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. [76] The visit came after Defense Minister Ehud Barak's visit to China in June,[74] the first visit of a defense minister to the country in a decade. Use Adobe Acrobat Reader version 10 or higher for the best experience. now's the time to act. 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. ", "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. 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. 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. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. 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. A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. 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? He has written for Geopolitica and several Italian online and print media. 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. [104] The following month, the Chinese and Israeli governments signed a memorandum of understanding regarding the joint construction of a 180-km (112-mile) railway linking the Israeli city of Eilat with the Negev Desert's Zin Valley, Beersheba, and Tel Aviv. [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 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. Second, China might transfer the technology or other information to Israel's enemies in Iran or elsewhere. Although Western countries also sold weapons to China prior to 1989, Israel significantly contributed to improving the quality of the Chinese military's weapons. "The basic research of industries in Israel is better, and the country emphasizes core technology . 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. [22] However, following the Sino-Soviet split and China's 1979 establishment of diplomatic relations with the United States, China began to develop a series of secret, non-official ties with Israel. 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. 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 China Steals Israeli Technology. 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. Advertisement. 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. [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. Playtika described the Jelly Button acquisition as an important part of its vision to become the world's leading mobile-gaming company. [132], After the May 31, 2010 Gaza flotilla raid the Chinese Foreign Ministry spokesman Ma Zhaoxu condemned Israel. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli which China has sought Israel to invest in as an alternative. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and 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. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial, Israel does realize that it cannot continue to sit on the fence. He was extradited from Belgium in 2018, and his trial began in October 2021. [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. [123] China's record of proliferating arms and weapons systems has also concerned U.S. planners, as the U.S. worries that China may repackage advanced Israeli defense technologies for resale to America's rivals and nations hostile to it throughout the world. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. The Israeli government responded to this pressure partially by establishing . Over the past decades he has been involved in peace building and diplomacy efforts in the Middle East and North Africa. China has also been investing extensively in Israeli technology and businesses. (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. Israeli technology companies are heading to China, too. [15] The two countries decided to set up an agriculture technology incubator in Anhui Province, China enabling joint development of agriculture technologies and solutions in keeping with requirements on the ground. One expert commentator, noting that bilateral trade grew from $50 million in 1992 to some $15 billion or more in 2021, added that "a closer look . 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. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. [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. As of 2018, the United States still significantly leads China in terms of high-tech capitalinvestment, with the United States accounting for 35 percent and China for 3 percent of investments. 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. 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. "China, Israel embraces golden age for innovation cooperation," Xinhua News, (January 6, 2016). [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]. This report is part of the RAND Corporation Research report series. They both supplied weapons to the Afghan mujahideen (Israel sending captured PLO weapons via the United States and Pakistan), and military cooperation between the two began in order to assist the Islamic resistance against the Soviets. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. [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. IVC estimates 138 have a presence in China. 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. [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. [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. 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. It is . By registering you agree to the terms and conditions. [65], The U.S. Defense Intelligence Agency compiled evidence that Israel had transferred missile, laser and aircraft technology to China in the 1990s. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. [62][63], In November 2021, Israeli President Isaac Herzog and Chinese leader, CCP general secretary Xi Jinping held the first-ever phone call between heads of state of Israel and China. 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. China-Israel relations (In Chinese : Zhng y gunx. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. [115] While Protectionism in the United States through the potential impact of Committee on Foreign Investment in the United States on international Chinese investment strategies has made it difficult for Mainland Chinese companies to acquire American assets, Israel has been a receptive host warmly welcoming the influx of excess Chinese cash and investment capital into the country's private sector economy If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. There are three other major . Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. 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. 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. At the same time, there were a string of allegations that Israel transferred sensitive military technology 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-Israel Technology. Catherine Leung is a principal and co-founder of . [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. Cloudflare Ray ID: 7a1523040d638c6c Israel's foreign-investment screening mechanism seemed to be working. 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. ", "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'. Global Health Program, Higher Education Webinar: Teaching the History of American Democracy, Webinar Chinese investments in Israel have grown substantially and include investments in high-tech companies that produce sensitive technologies as well as the construction and operation of key infrastructure projects. 2023 The Times of Israel , All Rights Reserved. The negative implications of growing U.S.-China technology tensions are reverberating around the world with disrupted supply chains and protectionist trade policies. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. Chinese economic cooperation with Israel has saw substantial Chinese investment of more than US$15 billion in the Israeli economy, spawning seed capital in Israeli startup companies, as well as the acquisition of Israeli companies by major Chinese corporations that incorporate Israel's know how to help the invigorate the development of the modern Chinese economy more efficiently. 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. 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. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. [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. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. 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 . China has criticized Israel's construction of settlements in the West Bank and East Jerusalem. And what about Israel? ", Long before diplomatic relations were established in 1992 Israel had been selling arms to China. Click the link in that email to complete registration so you can comment. Any Israeli company that wants to go global will have to penetrate China, Tehila Levi-Lati, partner and head of the China and East Asia practice at ZAG/Sullivan International Law Firm recently . 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. Israels flourishing semiconductor industry is illustrative. 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. 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