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[80] Chinese delegations regularly go to Israel, clinching deals with Israeli high-tech companies. [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 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. In December the 7th Yunnan-Israel Innovation cooperation Forum was held jointly in a hybrid event held both in Tel Aviv as well as Chinas Yunnan province, engaging Israeli tech companies and Chinese government companies. Fax: 202-223-5364. February 3, 2020, 3:30 PM. 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? ChinaIsrael relations (In Chinese: Zhng y gunx. 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 him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. Efron, Shira, Karen Schwindt, and Emily Haskel, Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and the United States. [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. China-Israel relations (In Chinese : Zhng y gunx. Is that so? This website is using a security service to protect itself from online attacks. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. [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. WASHINGTON . RAND is nonprofit, nonpartisan, and committed to the public interest. China now ranks second after the United States in collaboration with Israeli high-tech firms that are backed by Israel's Office of the Chief Scientist. 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. [40][15] Jews remain a small minority in China, but unlike many parts of the world, Jews have historically lived in China without any instances of antisemitism from the Han majority populace contributing to mutual respect and admiration between the two peoples. The company was active until 1992, when official diplomatic relationships were announced between Israel and China. It has even utilized its telecom companies like Huaweis sprawling reach in the West to collect pieces of sensitive information. It is due to China and Russias support that Iran continues to financially and politically survive despite crippling sanctions from the West. The Chinese consortium comprised a number of Chinese holding companies and private equity firms such as Giant Investment (HK) Limited, China Oceanwide Holdings Group Co. Ltd., China Minsheng Trust Co. Ltd., CDH China HF Holdings Company Limited, the Hony Capital Fund, and Yunfeng Capital a private equity firm co-founded by Alibaba's Jack Ma. Even though the sales of military technologies have stalled, commercial technology trade with China has grown at a dizzying pace, boosting Israels technology exports. Advertisement. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. 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." Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. 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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. 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. programs offered at an independent public policy research organizationthe RAND Corporation. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. [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. This document and trademark(s) contained herein are protected by law. [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. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. For Israel, this placed the dilemma of commercial versus political and national security interests at the . Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. 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. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. 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. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. 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. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. 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. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. 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 . [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. 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. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. 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? Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. Israel then sought to benefit from the situation and became China's backdoor to western technology. Efron, Shira, Karen Schwindt, and Emily Haskel, /content/admin/rand-header/jcr:content/par/header/reports, /content/admin/rand-header/jcr:content/par/header/blogPosts, /content/admin/rand-header/jcr:content/par/header/multimedia, /content/admin/rand-header/jcr:content/par/header/caseStudies, How China Understands and Assesses Military Balance, Russian Military Operations in Ukraine in 2022 and the Year Ahead, Consequences of the War in Ukraine: A Bleak Outlook for Russia, RAND President and CEO Presenting to House Permanent Select Committee on Intelligence, RAND Experts Discuss the First Year of the Russia-Ukraine War, Helping Coastal Communities Plan for Climate Change, Measuring Wellbeing to Help Communities Thrive, Assessing and Articulating the Wider Benefits of Research. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. 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. China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. Seven years ago, in the face of mounting costs, the United States withdrew . There are more than 1,000 Israeli firms operating in China as of 2010. This delicate strategy is becoming harder to maintain as China becomes more interested in Israeli tech and tensions between Washington and Beijing grow. [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. February 13, 2023 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. [80][112] In 2013, China and Israel began to boost the economic relations with respect to agriculture. 5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. China is a dictatorship and the relationship with Israel at some-point outlive Chinese geopolitical ambitions in the middle east. ", "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? [97] In addition, some Israeli start-ups are also positioning themselves exclusively in the Chinese market. Sources state that was an Israeli initiative and not a US demand. Israel is trying to manage a tricky balance between pleasing its ally, the U.S., without throttling lucrative technology deals with China. In February this year, Israel had uncovered a nexus . Assaf Orion Shira Efron. [134] During the November 2012 Operation Pillar of Defense in the Gaza Strip, the Ministry of Foreign Affairs of the People's Republic of China urged all sides to display restraint. Is That a Good Thing? The case of Huawei is illustrative. This joint project would permit the mass overland transport of Chinese goods to Israel and Eastern Europe, and would involve both Chinese and Israeli railway developers. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. The company operates worldwide and has subsidiaries in Germany and Mainland China. It is . [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 a result, Sino-Israeli relations have cooled. 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. "Israel can be a partner, a junior partner, but a perfect partner for China in the development of a variety of technologies that change the way we live, how long we live, how healthy we live . click the link in that email to complete your registration. Technological ties between Israel and China have always been a central and constant element of their relationship. A spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. "[140] In July 2017, Chinese leader Xi Jinping delivered a formalization of China's positions in his "Four Points" on the "issue of Israel-Palestine conflict", the first of which was that China supported the establishment of an independent, sovereign Palestine within the framework of the two-state solution based on the 1967 borders, with East Jerusalem as its capital. China has not even spared its strategic partners from such commercial espionage. 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? No further sales of military technology between China and Israel havebeen reported since. Global Climate Agreements: Successes and Failures, Backgrounder Security concerns, both domestic and from Washington, have shaped Israels sales to China from the beginning. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. A key tool utilized by China to steal military and industrial secrets is through traditional human intelligence operations that seek to recruit foreign citizens to spy on their countries. [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. 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. 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. 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 . IAI Lavi and UAV technology seems to have been sold to China. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. 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. One-third of the world's cybersecurity unicorns are in Israel. Washington D.C. 20036 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. U.S. officials think Chinese access to cutting-edge technologies . [14], China's status as a potential world power has prompted Israel to maintain close ties with the country and integrate China's global influence with Israel's economic management. [1] However, China did not establish normal diplomatic relations with Israel until 1992. The amount of venture capital money invested in Israeli companies has risen 50% in the last three years. 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. The Israeli government responded to this pressure partially by establishing . Previously in 2012, Chinese operatives had lured two Russian academics to obtain nuclear missiles-related information. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. Through the years, many have been acquired, merged with other companies, privatized, or gone out of business. Academic and Higher Education Webinars, C.V. Starr & Co. "The basic research of industries in Israel is better, and the country emphasizes core technology . RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. If you guessed that the lie was number 3, you're right. The attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. Sanctions imposed by Western countries almost froze Chinese access to advanced military and dual-use technologies. [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. Performance & security by Cloudflare. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. China is Israel's third-largest trade partner behind the EU and the US. That's a tiny fraction of the approximately 1,300 Israeli companies in the U.S. and 750 in . 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