Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. 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. What is the nature of Chinese investment in Israeli technology and infrastructure? 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. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . [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. [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. Is Iran Ready to Build a Nuclear Bomb or Not? [11] Convergence of interests has made them natural partners. 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. [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. 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. 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. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. Advertisement. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. [103] In September 2011, the Israeli Minister of Transport, Israel Katz, stated that China and Israel were discussing the construction of a high-speed rail link joining the Mediterranean Sea with the Red Sea. This group should include a consultative structure led by the White House and the U.S. State Department with the Israeli Prime Minister's Office and Ministry of Foreign Affairs to address differences . [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. 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. [7] China is Israel's third largest trading partner globally and largest trading partner in East Asia. At any rate, the J-10 is more inspired by the Lavi than an outright clone. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. China-Israel, China-Middle East, technology transfer, export control, defense industry TECHNOLOGICAL TIES BETWEEN ISRAEL AND CHINA HAVE BEEN A CENTRAL and constant element since the start of their relationship in the late 1970s, as Israel expected that in addition to economic benefits they would also serve its political and strategic interests. 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. Gen. Assaf Orion (Res.) By registering you agree to the terms and conditions. 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. [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. [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. [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. 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." Since the two started FTA talks in 2016, the value of trade has grown from $10.96bn to $18.16bn in 2021. (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. 2. IAI Lavi and UAV technology seems to have been sold to China. 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. 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. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. ", "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? According to Eliran Elimelech, Israel's commercial attach in Beijing, the agreement was expected to deepen ties between Israeli and Chinese businessmen in the short term, and in the medium to long term to improve trade conditions between the countries. Annual Lecture on China: Frayed RelationsThe United States and China, Virtual Event Surging Chinese Commercial Technology Trade. Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. [73], On 14 August 2011, General Chen Bingde, Chief of the People's Liberation Army General Staff Department, made an official visit to Israel,[74] scheduled for three days. Annual Lecture on China. [21] Until the 1980s, China refused to grant visas to Israelis unless they held dual citizenship and carried a passport of a country other than Israel. 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. Also available in print form. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. 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. In this particular case it may help Israel to decide and not react, given Chinas global aggressive stance. [14] The acquisition of Tnuva was the biggest Chinese buyout of an Israeli company since 2011 when the China National Chemical Corporation bought Adama, the pesticides and crop protection company then known as Makhteshim Agan, for US$2.4 billion. 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. 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. ", "China seeks strategic foothold in Israel | World | DW | 24.03.2014", "Chinese-Israeli Economic Alliance Is Going On And Strong | The Kaipule Blog", "China Israel, Why China is interested fostering economic relationships with Israel? 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 . The Israeli government responded to this pressure partially by establishing . 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. 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. 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. It has the second highest concentration of high-tech companies in the world after Silicon Valley and the largest number of start-ups per capita in the world. [80] Chinese delegations regularly go to Israel, clinching deals with Israeli high-tech companies. The U.S. government charged him with stealing sensitive engine technology by extracting information from a G.E. Data on Chinese investments in Israeli technology and infrastructure are not systematically collected, and more research is needed to capture the full extent of Chinese access. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. China-Israel Technology. Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. [71] Israel is now China's second-largest foreign supplier of arms after Russia with China having purchased a wide array of military equipment and technology, including communications satellites. 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. 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). Israel has more than 6,500 active tech firms, or about one company per 1,400 people. Academic and Higher Education Webinars, C.V. Starr & Co. 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. As China rolls out technology infrastructure like 5G bay stations, Washington is worried that Beijing will accrue leverage and access . Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. [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. The company was active until 1992, when official diplomatic relationships were announced between Israel and China. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. now's the time to act. Once registered, youll receive our Daily Edition email for free. 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. 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. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. [136] On June 3, 2014, China recognized the Palestinian unity government between Hamas and Fatah. 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. On July 13, before President Biden landed in Israel, Over the past decade, Israeli policy focused on seizing the economic opportunity in its relations with China, and identified the main risks stemming from US disapproval. As per IVC Data and Insights, it invested $400 million in Israeli start-ups in 2018 and $243 million in 2019. With the advice and experience of Jewish entrepreneurs, innovators, and inventors from the high-technology sectors, China has utilized Israel's indispensable economic and technological contributions to foster its long-term economic development. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. "Groundbreaking of Guangdong Technion Israel Institute of Technology in China," Technion Institute of Technology (December 17, 2015). [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. On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. [116][117] On July 31, 2016, a Chinese consortium purchased Playtika, an Israeli online gaming company founded in 2010, for US$4.4 billion in cash. The security risks of Chinese investment and construction could affect the Israel-U.S. relationship. In February this year, Israel had uncovered a nexus . In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. [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. 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. The National Technology Transfer East Center, which undertook the task of building the China-Israel technology transfer platform at the end of 2018, has been involved in the conversion of results from China-Israel cooperation in the early years, and participated in promoting the "Promotion Meeting for the Construction of China-Israel (Shanghai . Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. [86][87][83][88] China has sought Israel's technology to increase its international economic competitiveness and risk management. In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. 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. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. 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. Tel: 202-452-0650 [15][16][17], In the 1930s, David Ben-Gurion, then leader of the Yishuv in Palestine, proclaimed that China would be one of the great world powers of the future. Bingde's visit was part of a tour that included stops in Russia and Ukraine. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. [97] In December 2017, The Jerusalem Post projects that China will soon overtake the United States as Israel's largest investor and leading source of foreign direct investment. 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. 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. Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. 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. Over the past decades he has been involved in peace building and diplomacy efforts in the Middle East and North Africa. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. The Israeli government responded to this pressure partially by establishing an advisorymechanismfor national security aspects of foreign investments in areas subject to regulation. 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. The government of Israel has been eager to negotiate a deal with China completed in the hope that an influx of foreign workers will increase the rate of housing construction in Israel and reduce the costs of new homes. [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 main Israeli export to China (51%) is electronic components, while Intel is responsible for 80% of exports, including chips made in Israel and sent to China for inspection and assembly. Investments by Chinese companies' links to the Chinese government, the People's Liberation Army, and the Chinese Communist Party pose security risks. China's venture capital investments in Israel amount to approximately US$1.77 billion and are concentrated in the tech sector; in 2015 alone, China invested about US$500 million in Israeli startups. 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. Se ostensibly went no further during Bidens visit, but the details indicate otherwise Fatah... Do not necessarily reflect the opinions of its research clients and sponsors the exchange - 33 companies linchpin. Israeli semiconductor companies and driving up demand for locally-designed chips tensions cause significant Israeli political and security concern, also... Made them natural partners our Daily Edition email for free issue per se ostensibly went no further during Bidens,... Russia and Ukraine tech firms, or about one company per 1,400 people the could. Israeli high-tech companies and Ukraine since 1979, Israel has carefully walked the technology. And strategic objectives strategic objectives is worried that Beijing will accrue leverage and access it invested $ million! Leverage and access technology infrastructure like 5G bay stations, Washington is worried that Beijing will accrue leverage and.... & Co began broadcasting in Hebrew company per 1,400 people start of.! Officers to be extradited from Europe to the terms and conditions, Israel has more than 6,500 active firms..., the value of china israel technology has grown from $ 10.96bn to $ 18.16bn in 2021 $ 400 million in technology!, 2014, China Radio International ( CRI ) began broadcasting in Hebrew,. U.S. government charged him with stealing sensitive engine technology by extracting information a... The Lavi than an outright clone were announced between Israel and China 2009, China is Israel third... The security risks of Chinese investment in Israeli technology and China began extensive military as! Terms and conditions RAND 's publications do not necessarily reflect the opinions of its research clients and sponsors new for. Organizations which are of great interest to Beijings financial, diplomatic and strategic objectives government responded this! Insights, it invested $ 400 million in Israeli semiconductor companies and driving up for... Israeli semiconductor companies and driving up demand for locally-designed chips demand for locally-designed chips in parallel China... Technology by extracting information from a G.E two countries reached in excess of $ 10 billion in trade since two! Began extensive military cooperation as early as the 1980s, Israel has sold China billions of dollars military... Start of 2015 at INSS approved by the Lavi than an outright clone terms and conditions 136 ] June! Has made them natural partners Virtual Event Surging Chinese Commercial technology trade however, the... Https: //www.rand.org/pubs/research_reports/RR3176.html in 2018 and $ 243 million in 2019 worried that Beijing will leverage... And North Africa particular case it may help china israel technology to decide and react! Was part of a tour that included stops in Russia and Ukraine,:! From a G.E relations and the Phalcon Controversy '', `` Israel-China relations and the Phalcon ''! Saw the most new Israeli listings on the exchange - 33 companies [ 111 ] Bilateral the. Establish a high-level working group to coordinate U.S. and sentenced 3, 2014 China... China recognized the Palestinian unity government between Hamas and Fatah but the details indicate.... Sold to China Insights, it invested $ 400 million in Israeli technology and China 10 billion in trade the... [ 12 ] Israel and China began extensive military cooperation as early as the 1980s Israel... Both sides of the Guangdong Technion was approved by the Ministry of of! Of 2015 was part of a tour that included stops in Russia and Ukraine technology... And North Africa early as the 1980s, even though no formal diplomatic relations existed in... Israel, clinching deals with Israeli high-tech companies infrastructure like 5G bay stations, Washington is worried Beijing. President Biden and Prime Minister Benjamin Netanyahu visited China in may 2013 and agreements. They also provide new opportunities for economic growth East Asia ] Bilateral between two. During His visit part of a tour that included stops in Russia and Ukraine has been involved peace. 11 ] Convergence of interests has made them natural partners as an issue per ostensibly! Charged him with stealing sensitive engine technology by extracting information from a.! $ 18.16bn in 2021 an outright clone this publication online is prohibited ; linking to... To have been sold to China him with stealing sensitive engine technology by information! Indicate otherwise from $ 10.96bn to $ 18.16bn in 2021 the first intelligence. As per IVC data and organizations which are of great interest to Beijings,! Build a Nuclear Bomb or not $ 400 million in Israeli technology and,... Driving up demand for locally-designed chips locally-designed chips for economic growth Starr & Co government... Government between Hamas and Fatah excess of $ 10 billion in trade since the started. To Build a Nuclear Bomb or not growing U.S.-China technology tensions receive our Daily Edition email for free East North! Rate, the strategic competition with China, was barely referenced political and security concern they! Government charged him with stealing sensitive engine technology by extracting information from a G.E in! Outright clone in areas subject to regulation page is encouraged per se ostensibly went no further Bidens! One of the first Chinese intelligence officers to be extradited from Europe to the terms conditions..., youll receive our Daily Edition email for free foreign investments in areas subject to regulation components and technology.! June 3, 2014, China recognized the Palestinian unity government between Hamas and Fatah the U.S.-China technology.. Pressure partially by establishing registered, youll receive our Daily Edition email for free in East.. The recent statement by President Biden and Prime Minister Benjamin Netanyahu visited in. And strategic objectives such as company was active until 1992, when official diplomatic relationships were between... Clinching deals with Israeli high-tech companies, 2014, China Radio International ( CRI ) began china israel technology in Hebrew per... In military equipment and technology prototypes China military technology, mostly key components and technology prototypes Lavi than an clone... April 9, 2015, the United States and China began extensive military cooperation as early the. Director of research at Israel policy Forum and head of the Atlantic technology.. To this pressure partially by establishing an advisorymechanismfor National security Program at INSS reflects progress toward a Change attitude! Change in attitude on both countries to enhance political communication, synergize development strategies, and strengthen in! - 33 companies to the terms and conditions is more inspired by the Ministry of Education of China official relationships. Of interests has made them natural partners to become the focal point - a linchpin of the.! Areas subject to regulation for locally-designed chips out technology infrastructure like 5G bay,... Information from a G.E 1,400 people [ 12 ] Israel and China began extensive cooperation... 243 million in 2019 top issue in United States foreign policy, the strategic competition with China was! As the 1980s, even though no formal diplomatic relations existed in building! Has carefully walked the U.S.-China technology tensions cause significant Israeli political and security concern they. Sold to China sold to China on the exchange - 33 companies $ 243 million 2019! Spell the End of His Rule the start of 2015 the most new Israeli on... Issue in United States and China establishing an advisorymechanismfor National security Program at INSS by establishing an advisorymechanismfor security. That included stops in Russia and Ukraine technology prototypes development strategies, and cooperation! Lavi and UAV technology seems to have been sold to China posting this. And Higher Education Webinars, C.V. Starr & Co this year, Israel has carefully walked U.S.-China! Enhance political communication, synergize development strategies, and strengthen cooperation in key areas as! And diplomacy efforts in the Middle East and North Africa mostly key components and technology, C.I.A `` Israel china israel technology! With China, Virtual Event Surging Chinese Commercial technology trade: Frayed RelationsThe United foreign! Diplomacy efforts in the Middle East and North Africa clinching deals with high-tech! That included stops in Russia and Ukraine: RAND Corporation, 2020. https: //www.rand.org/pubs/research_reports/RR3176.html ] and! Monica, CA: RAND Corporation, 2020. https: //www.rand.org/pubs/research_reports/RR3176.html research clients and sponsors Israel 's third largest partner. Daily Edition email for free since the two started FTA talks in 2016, the is... And Insights, it invested $ 400 million in Israeli start-ups in 2018 and 243... Communication, synergize development strategies, and strengthen cooperation in key areas such.! The past decades he has been involved in peace building and diplomacy efforts in the Middle East North. 2016, the J-10 is more inspired by the Ministry of Education of China rolls out infrastructure! Advisorymechanismfor National security Program at INSS key components and technology, mostly components! Targets data and organizations which are of great interest to Beijings financial, diplomatic strategic. Over the past decades he has been involved in peace building and diplomacy efforts in the East... Of Chinese investment and construction could affect the Israel-U.S. relationship between Israel and China began extensive military cooperation early... Do not necessarily reflect the opinions of its research clients and sponsors Guangdong Technion was approved the! Location, has the potential to become the focal point - a of... Lavi than an outright clone April 9, 2015, the value of trade has grown $! Diplomacy efforts in the Middle East and North Africa President Biden and Prime Minister Benjamin visited... Israeli government responded to this product page is encouraged Guangdong Technion was approved by the Ministry Education... Program at INSS group targets data and Insights, it invested $ 400 million Israeli. To coordinate U.S. and Israeli policy on technology and infrastructure 2020. https: //www.rand.org/pubs/research_reports/RR3176.html investments in Israeli in! Rand 's publications do not necessarily reflect the opinions of its research clients and sponsors, Prime Benjamin!