If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. 2023 The Times of Israel , All Rights Reserved. [98] Several factors that contributed to the surge of Chinese investment in Israel including a surplus of money among Chinese conglomerate companies and wealthy individuals, a preconceived and favorable notion of Jews as being extremely smart and are blessed with great intelligence, and the warm welcoming reciprocation of China by Israel itself. [26] China was similarly represented by a branch of the China International Travel Service, which also opened in 1990. 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. 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. The attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. the chief American concern is with Chinese investments in the fields of technology that are considered . Israel was the first country in the Middle East to recognize the People Republic of China (PRC), in 1950. As Yellinek has established, "Starting in the early 2000s, ties between the two countries began to blossom, mostly . Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. Apply Today. 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. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. 15. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. 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). Annual Lecture on China. He has written for Geopolitica and several Italian online and print media. Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. 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. 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. [36] China including Hong Kong is Israel's second top export destination after the United States and has been the top market for Israeli exports in East Asia. Politicians are also hastening to increase the cooperation between the two countries with former Israeli Economy Minister Naftali Bennett recently visiting China to launch the Israeli Business Center in Shanghai, an initiative that goes hand-in-hand with the China-Israel Joint Committee on Innovation Cooperation, a three-year action plan to strengthen innovation cooperation. 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. MarInt, Windward's satellite maritime analytics system, is widely used by many security, intelligence and law enforcement agencies across the world. 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. Cloudflare Ray ID: 7a1523040d638c6c [93] Chinese businessmen and major Chinese corporations hold Israel's business, economic and entrepreneurial acumen and technological expertise with high esteem and have sought to integrate Israel's know-how with China's marketing proficiency, industrial manufacturing capacity and aptitude for large consumer market scaling. The G2G (Government to Government) mechanism was established and five task forces were set up in high tech, environmental protection, energy, agriculture and financing. [34][43][44][45][46][47][48][49][40][50][15] On a geopolitical scale, China has sought to maintain close relations with the Jewish state as Israel's regional importance, stability and influence in an otherwise volatile region has been an important asset for the expansion of China's influence in the Middle East and the entire world. This report is part of the RAND Corporation Research report series. [53] In June 2012, Olmert's successor, Binyamin Netanyahu, planned to visit China to mark the 20th anniversary of the establishment of bilateral relations,[58] but the visit was cancelled. 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? Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. 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. [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. [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. [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. The China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . By entering your email and clicking subscribe, you're agreeing to receive announcements from CFR about our products and services, as well as invitations to CFR events. 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. ChinaIsrael relations (In Chinese: Zhng y gunx. The growing dual-use nature of technology threatens to overthrow Israels careful efforts to expand trade with Beijing, while avoiding the sales of security technologies that would increase Chinese military capabilities and anger Washington. [124] On June 8, 2015, China demanded Israel to refrain from utilizing Chinese migrant construction workers in Israeli settlements in the West Bank. As of 2011, some sixty Israeli companies are listed on the Nasdaq. However now as Prime Minister, Bennet finds himself in a pickle. [68], Events in Tiananmen offered an additional incentive for military relationship, funded in Israel's reputation as a reliable arms supplier. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. 2023 The Times of Israel , All Rights Reserved. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. which China has sought Israel to invest in as an alternative. The largest threat to Israel is from Chinas technological espionage program. [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. A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. Israeli technology companies are heading to China, too. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. . [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. The China-Israel wiki seems to show relatively friendly relations. It is due to China and Russias support that Iran continues to financially and politically survive despite crippling sanctions from the West. China and Israel subsequently started exchanging visits of delegations of academics, experts, businessmen and industrialists. 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. David Ivri, the director-general of the Israeli Defense Ministry, admitted on Jan. 3 that Israel had sold China "some technology on aircraft" but added that it was not U.S. technology and that the contracts were "very small in magnitude." [32] On Jan. 6, Aded Ben-Ami, the spokesperson for Prime Minister Yitzhak Rabin, again denied that . IAI Lavi and UAV technology seems to have been sold to China. One example in February 2012 in which both nations signed a $300 million deal to export Israeli water technology to China. Even though the sales of military technologies have stalled, commercial technology trade with China has grown at a dizzying pace, boosting Israels technology exports. ", "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? 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. RAND is nonprofit, nonpartisan, and committed to the public interest. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. Security Implications for Israel and the United States, by Shira Efron, Karen Schwindt, Emily Haskel. [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. [119] The company was founded by Dr. Ilan Cohen in 1987, develops automation solutions focused on motion control for a diverse range of industries including robotics, printing, textiles, medical equipment, renewable energy, CNC and machine tools, food and beverages, and electronics. The primary concern regarding investment relates to Chinese ownership of companies that might possess sensitive technology or data; concerns over construction are focused on the use of infrastructure projects to further Chinese foreign policy goals. Other countries, including the U.S., work to lure top IP . And, finally, there is the possibility that China will exploit Israeli technology in . What is the nature of Chinese investment in Israeli technology and infrastructure? [116] Due to the lack of red tape and the wide array of start-up businesses offered by Israel's Silicon Wadi, Chinese investment in Israel jumped more than tenfold in 2016 to a record US$16.5 billion, with money flowing into the country's booming internet, cyber-security and medical device start-ups. Sources state that was an Israeli initiative and not a US demand. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. 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. 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. President Joe Bidens recent visit to the Middle East focused on the matters most important to his hosts in Israel and the Arabian Gulf: security guarantees against Iranian threats and the rehabilitation of Saudi Crown Prince Mohammed bin Salman. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. Fax: 202-223-5364. [80] Chinese delegations regularly go to Israel, clinching deals with Israeli high-tech companies. With mounting political pressure from its American allies and promising Chinese trade prospects, Israel is caught between its two largest and technology-hungry trade partners. , which also opened in 1990 and the United States, by Shira,! Iceberg of the China International Travel Service, which also opened in 1990 Geopolitica and Italian. First country in the Middle East, FireEye said similarly represented by a branch of rand! 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