(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. [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. China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. [101][36] At present, there are thousands of Jewish and Israeli expatriate businessmen residing in various Chinese cities, mainly Shanghai and Beijing looking to do business with Chinese entrepreneurs and Chinese technology companies. Ties between Israel and China have been strained in recent months. 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. 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. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. 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). China has not even spared its strategic partners from such commercial espionage. Playtika was a pioneer in the free-to-play games on social networks and mobile platforms and is the creator of popular titles, such as Slotomania, House of Fun and Bingo Blitz, which consistently ranked among the top-grossing games on Apple's App Store, Google Play and Facebook. [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. 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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. 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. [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. In particular, Chinese firms play an essential role in the $10-billion kosher foods industry, with 500 factories across China producing kosher food for the American and Israeli markets. 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. In early 2021, Chinese state-sponsored hackers targeted Russias leading submarine designer, Rubin Design Bureau, with an apparent aim of stealing sensitive information and technology. He has written for Geopolitica and several Italian online and print media. May 31, 2021, 12:24 pm. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. Prior to the establishment of full diplomatic relations in 1992, Israel and China established representative offices in Beijing and Tel Aviv, which functioned as de facto embassies. Defense contracts played a leading role here but were also responsible for the . A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. 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. Overall, the FBI concluded that economic espionage cases linked to China have increased by 1,300% in the past decade. Tue, Feb 28, 2023 LOGIN Subscribe for $1 [13] Since 2013, Chinese investors have begun to show a growing interest in Israeli firms. Surging Chinese Commercial Technology Trade. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli 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. [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. In 2013, when current Prime Minister Bennett was the Minister of Economy, he believed that the BDS (Boycott, Disinvestment and Sanctions) movement would have had a negative effect on the future of Israeli exports to the west. China-Israel Technology. [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. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. Seven years ago, in the face of mounting costs, the United States withdrew . 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. While China does a lot of business with Israel, its international support for Palestine limits its political cooperation with the Jewish state. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. [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. 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. The U.S. government charged him with stealing sensitive engine technology by extracting information from a G.E. On this Wikipedia the language links are at the top of the page across from the article title. . If you share these values with us, please consider supporting our work by joining The ToI Community. Annual Lecture on China: Frayed RelationsThe United States and China, Virtual Event In 1987 Israel's Prime Minister, Shimon Peres, appointed Amos Yudan to set up the first official Government owned company (Copeco Ltd[24]) to establish and foster commercial activities between companies in China and Israel. Israel has more than 6,500 active tech firms, or about one company per 1,400 people. [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. Zelensky: If China allies itself with Russia, there will be world war III. This report is part of the RAND Corporation Research report series. ", Long before diplomatic relations were established in 1992 Israel had been selling arms to China. [110] In 2014, Chinese-Israeli tech deals totaled $300 million, up from $50 million in 2013, according to Israel's National Economic Council. The China-Israel wiki seems to show relatively friendly relations. This delicate strategy is becoming harder to maintain as China becomes more interested in Israeli tech and tensions between Washington and Beijing grow. 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. Furthermore, Israeli officials are concerned about the numerous Chinese cyberattacks on Israeli companies and government networks. [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. An official at the Israel Export Institute told Reuters that new data showed semiconductor exports to China jumped 80 percent last year to $2.6 billion. 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. 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. The Israeli consul Jackie Eldan noted that the gesture was a "special effort", as the synagogue is now located within the compound for the city's education ministry, and that it was "truly highly appreciated by Israel. Israels flourishing semiconductor industry is illustrative. 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. [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. 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 had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. 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. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. Please try again or choose an option below. [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. 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. 1624, July 26, 2022. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. In response to these persistent attempts at stealing hard-earned U.S. intellectual capital from the American experts, the FBI launched the China Initiative program in November 2018, which scrutinized suspected cases of Americans engaged in such espionage activity. [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. 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. 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. The report continued: "As China's BRI (Belt and Road Initiative) moves westward, its most important construction projects in Israel are the railway between Eilat and Ashdod, a private port at . The suit asserted that in 2003 the bank's New York branch wired millions of dollars to Hamas from its leadership in Syria and Iran. Cloudflare Ray ID: 7a1523040d638c6c 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. [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. [110] In addition, leading Chinese technology firms such as Huawei, Legend and Xiaomi have set up R&D centers in Israel. Through the years, many have been acquired, merged with other companies, privatized, or gone out of business. And, finally, there is the possibility that China will exploit Israeli technology in . [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. 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. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . 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. The attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. February 13, 2023 Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . This not only forced Israel to sever its defense relations with China but also made US-Israel relations a principal factor in the Sino-Israeli connection and imposed tight constraints on Israel's technology transfers to China generally. [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. It was set up in 2020 after pressure from America, which was concerned that China could be getting Israeli weapons technology. Herepeatedthis message at a summit with leaders from the Gulf and Arab countries on July 16. And what about Israel? [19][20], In 1947, however, the ROC abstained from voting in the United Nations Partition Plan for Palestine. Although Western countries also sold weapons to China prior to 1989, Israel significantly contributed to improving the quality of the Chinese military's weapons. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. 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. Israeli entrepreneurs may also under report,fearful that receiving Chinese investments could negatively affect business in the United States. Spread the word. [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. 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. [98][100], More than 1000 Israeli start-up companies have set up operations in China. Security concerns, both domestic and from Washington, have shaped Israels sales to China from the beginning. Enhanced coordination between Israels commercial and security technology sectors on dual-use technology transfers can help sustain this delicate balance. 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. While the Israeli government pushed back against the United States position on completely banning Huawei due to commercial interests, it also avoids using Huaweis equipment in its critical infrastructure due to security concerns. [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. Considering the limited flow of Chinese FDI to Israel (around $100 million in 2018 out of the total $21.8 billion), China is far from gaining a foothold in Israel's high-tech sector. Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. 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. Israel's arms sales to China. By registering you agree to the terms and conditions. click the link in that email to complete your registration. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. 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. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. [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. Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. Israel was the first country in the Middle East to recognize the People Republic of China (PRC), in 1950. Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. At the same time, there were a string of allegations that Israel transferred sensitive military technology to China. He was extradited from Belgium in 2018, and his trial began in October 2021. If you guessed that the lie was number 3, you're right. Is that so? 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). [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. [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. Click to reveal 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? We believe we will succeed in bringing these connections 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. 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. [76], On 13 August 2012, vessels from the PLA Navy's 11th escort fleet, led by Rear Admiral Yang Jun-fei, anchored at Israel's Haifa naval base for a four-day goodwill visit to mark 20 years of cooperation between the Israel Defense Forces and the PLA. Efron, Shira, Karen Schwindt, and Emily Haskel, Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and the United States. 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. 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