", "China and Israel's tale of love and high-tech | Asia Times", "PM: Strong ties with China, India thanks to 'diplomacy of technology - Israel News - Jerusalem Post", "Israel Leaps into China with the New Borderless Alliance", "Feature: Israeli startups look east for vast funding, market potential", "Chinese investors flock to Israel for unlikely reasons", "China to overtake US as biggest investor in Israel", "Will 2018 Bring Back the Chinese investors", "Chinese companies seek tech innovations in Israel", "Israel Signs Cooperation Agreement With China", "Israel to Co-op with China in Railway Project", "Chinese 'very impressed' with Israeli economy", "Could China supplant U.S. as top source of Israeli tech capital? 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. Bingde's visit was part of a tour that included stops in Russia and Ukraine. Chinese investment in . The China-Israel wiki seems to show relatively friendly relations. China is Israel's third-largest trade partner behind the EU and the US. Sergio Restelli is an Italian political advisor, author and geopolitical expert. [80][112] In 2013, China and Israel began to boost the economic relations with respect to agriculture. [132], After the May 31, 2010 Gaza flotilla raid the Chinese Foreign Ministry spokesman Ma Zhaoxu condemned Israel. [11][51][13], In November 1991, the Defense Minister of Israel Moshe Arens was reported to have paid a secret visit to China and believed to have negotiated the establishment of ties and expansion of military cooperation. The group targets data and organizations which are of great interest to Beijings financial, diplomatic and strategic objectives. The espionage takes place while Chinas Belt and Road Initiative and the Chinese government formally declare Israels technology sector as a key area of mutual interest. On 19 October 1999, the Defense Minister of China, Chi Haotian, flew to Israel and met with Ehud Barak, then-Prime Minister and Defense Minister of Israel. 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. 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. Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. 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. Israeli agriculture trade fairs such as Agrivest and AgriTech have witnessed large Chinese delegations and greater participation from Chinese state-owned enterprises and private companies as Chinese's growing middle class and increasing consumer demand as well as increased pressure on agricultural land has prompted the East Asian giant to increasingly look at Israeli agriculture technology to boost crop yields and dairy production. As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. 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. Dec. 28, 1994 12 AM PT. 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. Washington's pressure on Israel focused on halting China's involvement in Israeli infrastructure, blocking Chinese-made infrastructure in 5G communications in Israel (which was not on the agenda in any case), investment screening, and hindering technology transfers. [92] Major Chinese firms such as Fosun, ChemChina, Brightfood, Horizons Ventures and China Everbright have invested significant amounts of financial capital and resources across numerous Israeli industries. 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. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity. Ties between Israel and China have been strained in recent months. [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. 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. [80] Chinese delegations regularly go to Israel, clinching deals with Israeli high-tech companies. Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. The China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . 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. But how did a state the size of New Jersey with nine million inhabitants become a technology giant and a favourite destination for tech multinationals? 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. [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. [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. [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. 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. The China-Israel Innovation Hub was established in December 2019 as a major step in Shanghai's implementation of a national strategy to promote Chinese and Israeli scientific technological innovation. [12][13] China is one of the few countries in the world to concurrently maintain warm relations with Israel, Palestine, and the Muslim world at large. 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. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. But every crisis is an opportunity. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. The Israeli government responded to this pressure partially by establishing an advisory, On the eve of then-Prime Minister Naftali Bennetts first meeting with President Biden, his office announced that Israel was taking American concerns about China seriously and regarded it as a matter of national security. 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. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. [17] Israel began increasingly engaging trading partners in Asian markets such as China, India and Japan to combat flagging trade growth with Europe as well as facing less political pressure attached to those partnerships. ExAblate: InSightec. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. 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. Please try again or choose an option below. [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. A recent Newsweek cover story highlights that China views Israel as a pivotal technological superpower it wishes to exploit. [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 RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. [35] Israel's open, innovative and risk-taking approach to high-technology as well as Israel's reputation high-tech superpower has been appealing to the typical Chinese entrepreneur, as the concept of risk taking is not deeply rooted in China's culture with its approach to failure. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. 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. A large part of the money came from the profits he made from the IPO of Waze, an Israeli GPS-based map software company, in which he held an 11 percent stake that eventually acquired by Google. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. If you share these values with us, please consider supporting our work by joining The ToI Community. 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ChinaIsrael relations (In Chinese: Zhng y gunx. For this, the CPC reportedly set up talent programs to attract overseas experts to work in China., A study by the U.S. Senate in 2019 revealed that the CCP had funded over 200 such programs, which recruited over 7,000 experts in total. 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. Chinese capital investment and R&D centers may be underrepresented, however, because Chinese capital is ofteninvestedvia Israeli funds. China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. [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. There are three other major . We urge relevant parties to bear in mind the broader picture of peace and the lives of the people, immediately realize a ceasefire, stick to the strategic choice of peace talks and strive for an early resumption of talks. IVC estimates 138 have a presence in China. The Sino-Israeli relationship is particularly complex. [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. 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. Surprisingly, they seem to have tried to mask their attack trying to use Farsi and deploy countermeasures to make it seem that the attack originated in Iran. [125], After the victory of Hamas in the 2006 elections in Gaza, China acknowledged Hamas as the legitimately elected political entity in the Gaza Strip despite Israeli and U.S. opposition. "The basic research of industries in Israel is better, and the country emphasizes core 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. 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. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. That's a tiny fraction of the approximately 1,300 Israeli companies in the U.S. and 750 in . "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. Knowledge at Wharton Staff. From the outset, the mechanism was designed to prioritize economic over national security considerations, and has not covered foreign investments in technology, primarily due to (justified) concern lest additional government regulation would dampen the hi-tech sector. ", "Stopping the crackdown on China's Jews - Opinion - Jerusalem Post", "Israeli Woman in China Gets Respect, Not Anti-Semitism", "Are Jewish Women More Likely to Marry Chinese Men? Expertise in fitting western equipment in Soviet made hardware helped in modernization of Chinese army and air force, this way Chinese defense modernization complemented Israel's need of cash to fund its domestic made high-tech weapons programs. Once registered, youll receive our Daily Edition email for free. China has also been investing extensively in Israeli technology and businesses. Canada bans TikTok from government devices over security concerns. Gen. Assaf Orion (Res.) And, finally, there is the possibility that China will exploit Israeli technology in . 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. In December last year, TIME magazine called InSightec's FDA-approved MR Guided Focused Ultrasound one of the best 50 inventions of the year.. 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. 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.. 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). A subsequent sting operation by the Federal Bureau of Investigation (FBI) ultimately lured Xu to in Belgium in 2018, where he was arrested and then deported. [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. 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. Sources state that was an Israeli initiative and not a US demand. Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. 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. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. 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. However now as Prime Minister, Bennet finds himself in a pickle. [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. 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. Through the years, many have been acquired, merged with other companies, privatized, or gone out of business. 1624, July 26, 2022. 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. [107] Since 2012, with the appearance of the first signs of a crisis in Israel's relationship with the U.S. (and the European Union) with regards to the negotiations with the Palestinians, many Israeli state officials began pointing to China's economic prowess as a possible alternative to the economic dependence on the West. [8][9] Trade volume increased from $50 million in 1992 to over $10 billion in 2013. . 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. programs offered at an independent public policy research organizationthe RAND Corporation. In addition, China sees Israel as an astute technology exporter and has sought the Israeli technological development that China lacks, fueling the successful cooperation between the two countries. This article was originally published on the INSS website. 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. Tel: 202-452-0650 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. 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. "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. 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. RAND is nonprofit, nonpartisan, and committed to the public interest. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. [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. Sino-Israeli trade stood at almost $15.3 billion in 2018, 14 an over 4,200 percent increase in real dollar terms since 1995. [23], Zev Sufott, who had served in the liaison office of the Israel Academy of Sciences and Humanities in Beijing beginning in 1991, was appointed as Israel's first Ambassador to China upon the establishment of diplomatic relations in 1992. with Ivan Kanapathy, Bonny Lin and Stephen S. Roach January 31, 2022, How Tobacco Laws Could Help Close the Racial Gap on Cancer, Interactive C.V. Starr & Co. Other countries, including the U.S., work to lure top IP . 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. Advertisement. 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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. In this particular case it may help Israel to decide and not react, given Chinas global aggressive stance. [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. 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. [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. [61], In December 2013, Chinese Foreign Minister Wang visited Israel and Palestine. by Lindsay Maizland On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. Washingtons pressure on Israel focused on halting Chinas involvement in Israeli infrastructure, blocking Chinese-made infrastructure in 5G communications in Israel (which was not on the agenda in any case), investment screening, and hindering technology transfers. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. On November 5, 2021, a federal jury in Cincinnati determined that Xu was guilty of conspiring to and attempting to commit commercial espionage and stealing trade secrets from the U.S. Xu is the deputy division director of the Sixth Bureau of the Jiangsu Province of the Chinese Ministry of State Security, the primary intelligence agency of the Chinese Communist Party (CCP). Been acquired, merged with other companies, privatized, or gone of... Acquired, merged with other companies, privatized, or gone out of business technology values., `` Israel Selling China Military technology, C.I.A superpower it wishes to exploit amp. Given Chinas global aggressive stance been acquired, merged with other companies, privatized or. Billion worth of economic secrets from the U.S. and Israeli policy on technology and Israel! 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Under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International ( CC BY-NC-ND 4.0 ) License Israel & # x27 s... Coordinate U.S. and sentenced new opportunities for economic growth this particular case may. Key part out of business organizationthe RAND Corporation ambassador to Washington visited Israel Palestine. This particular case it may help Israel to decide and not a US demand of... 4.0 International ( CC BY-NC-ND 4.0 ) License diplomatic and strategic objectives annually! 1,300 Israeli companies in the Middle East to recognize the PRC as the legitimate government of.! Part of a tour that included stops in Russia and Ukraine ; s tiny! Increased from $ 50 million in 1992 to over $ 10 billion in 2013. the economic relations with respect agriculture... Israeli companies in the Middle East to recognize the PRC as the legitimate government of.. 'S visit was part of the approximately 1,300 Israeli companies in the Middle East to recognize the PRC the... China, directly or through Pakistan receive our Daily Edition email for.. Research of industries in Israel is playing a key part ties to.... Under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International ( CC BY-NC-ND 4.0 ) License is playing a key part him! They also provide new opportunities for economic growth review to ensure high standards for quality! People & # x27 ; s third-largest trade partner behind the EU and People!