Second, China might transfer the technology or other information to Israel's enemies in Iran or elsewhere. In a joint press conference with Prime Minister Yair Lapid on July 14, 2022, President Bidenunderscoredthat his visit was designed to demonstrate US commitment to the Middle East, and to avoid leaving a vacuum that would be filled by China and Russia. The initial recommendations made in the joint document, parts of which were included in the statement, included clarifying and aligning differing strategic perspectives between the two sides on China; developing a joint working group for coordinating technological policy and strategy; increasing involvement by the private sector, academia, the legislatures, and enforcement agencies; launching track 1.5 and 2.0 dialogues; and improving regulation and oversight of new dual-use technologies and investments. 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. [64], China and Israel have developed close strategic military links with each other. However now as Prime Minister, Bennet finds himself in a pickle. 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. November 4, 2022 Israel has more than 6,500 active tech firms, or about one company per 1,400 people. 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. The Washington Institute seeks to advance a balanced and realistic understanding of American interests in the Middle East and to promote the policies that secure them. 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. For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. As Yellinek has established, "Starting in the early 2000s, ties between the two countries began to blossom, mostly . China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. Surging Chinese Commercial Technology Trade. 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. The Israeli assurance to the US, is a first step of Israel choosing sides, but Israel should not wait for much longer before decisive steps. 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. As a result, Sino-Israeli relations have cooled. This report is part of the RAND Corporation Research report series. The technological partnership between the United States and Israel, therefore, is aimed not merely at encouraging the flow of technology from Silicon Wadi to Silicon Valley, i.e., between Israel and the United States, but also at limiting Chinas access to Israels technology and innovation, with an emphasis on cutting-edge technologies. ", "Israel-China Alliance Moves Forward With $2 Billion 'Red-Med' Freight Rail Link Alternative to Suez Canal", "Israel-China "water-trade" to rise significantly", "Zev Sufott, Israel's first ambassador to China, dies aged 86", "Israel's first-ever ambassador to China dies at 86", "Harbin people congratulate Olmert on Israeli election success", "After three years of negotiations, Netanyahu to visit China", "Netanyahu set to scrap China trip, again, amid election fever", "Shanghai's Jews celebrate historic synagogue reopening", "Cantor Pushes China to Open Historic Synagogue", "China FM: Iran deal 'first step' toward settling nuclear issue - The Times of Israel", "Wang Yi meets Palestinian & Israeli leaders to boost peace talks", "Israeli, Chinese Presidents Call for Increased Cooperation Despite U.S. China Steals Israeli Technology. Gen. Assaf Orion (Res.) [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. 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 . This website is using a security service to protect itself from online attacks. [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. 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. An industry source told Reuters that Intel . by Lindsay Maizland As of 2011, some sixty Israeli companies are listed on the Nasdaq. [80][113] In the first half of 2015, China invested more than $2 billion compared to just $300 million for all of 2014. 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. The Israeli office was formally known as the Liaison Office of the Israel Academy of Sciences and Humanities. [106] The group SIGNAL has established an exchange network of Chinese and Israeli scholars and academics to help them collaborate with each other on various academic projects. The security risks of Chinese investment and construction could affect the Israel-U.S. relationship. Israel's innovative climate technology uniquely positions Israel to help tackle the climate crisis. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. 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. "The Evolution of Sino-Israeli Relations". This type of balance will become increasingly difficult. [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. The successful conclusion of this spying case may set the tone for future American crackdowns against Chinas persistent economic espionage against the U.S., Israel and the Westa step above the sanctions route that the Western world has pursued for the last few years. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . 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. [65], The U.S. Defense Intelligence Agency compiled evidence that Israel had transferred missile, laser and aircraft technology to China in the 1990s. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. Israel seeks to expand its diplomatic, economic, and strategic ties with the world's fastest-growing major economy and diversify its export markets and investments. [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. China has also been investing extensively in Israeli technology and businesses. 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. And, finally, there is the possibility that China will exploit Israeli technology in . Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. The Israeli ban on exporting defense technologies to China goes back to 2000, when intense American pressure led Israel to cancel the sale of the Phalcon Airborne Early Warning System to China. Interestingly, these programs also encouraged its members to lie on grant applications to U.S. grant-making agencies, establish shadow labs in China working on research identical to their U.S. counterparts, and, in some cases, transfer U.S. scientists intellectual capital.. Zelensky: If China allies itself with Russia, there will be world war III. [80] In January 2015, a number of Chinese information technology companies began to make investments in Israel, Chinese e-commerce giant Alibaba invested an undisclosed sum in Visualead, an Israeli company specialising in QR code technology. [83] Other critics argue that growing Chinese involvement will endanger Israeli security and lead to theft of Israeli technology to be utilized in Chinese espionage further arguing that Israel should balance its burgeoning relations with China with maintaining a balance of relations with the United States at the same time. Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. The G2G (Government to Government) mechanism was established and five task forces were set up in high tech, environmental protection, energy, agriculture and financing. It is . 1111 19th Street NW - Suite 500 . 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. Israels flourishing semiconductor industry is illustrative. 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 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. 1624, July 26, 2022. One example in February 2012 in which both nations signed a $300 million deal to export Israeli water technology to China. [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. Israel began selling military technology such as missiles, radars, and navigation systems to China in the 1980s, even before Beijing recognized Israel, and technology trade quietly intensified in the 1990s. Economists are forecasting that Mainland China may surpass the U.S. as Israel's largest trading partner in the near future. Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". In December last year, TIME magazine called InSightec's FDA-approved MR Guided Focused Ultrasound one of the best 50 inventions of the year.. [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. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli TIMES STAFF WRITER. [118] On February 11, 2017, the Chinese electronics giant Midea Group as part of their industrial automation and intelligent manufacturing campaign acquired control of Petah Tikva-based company Servotronix, an automation solutions developer at the cost of US$170 million. ", "It's kosher: Israel embraces Chinese investment", "Alibaba Invests in Israeli Cyber-Focused Venture Fund", "Israel applies to become founding member of China development bank", "Li Ka-shing fund leads US$10.8 mln Israel investment", "China's Fosun International to Acquire Phoenix Holdings From Israel's Delek", "China's Fosun to Buy Israeli Co Ahava for $77 Million", "China is increasingly becoming key for Israel's high-tech industry", "China's tech money heads for Israel as US welcome wanes", "China consortium buys Israel's Playtika for $4.4 billion", "China's Midea buys Israeli co Servotronix", "Playtika Acquires Israel's Jelly Button to Expand Game Offerings", "China Remains Israel's Fastest Growing Source Of Tourists In 2017", "Return of the Red Card: Israel-China-U.S. Triangle", "China seeks ban on its citizens working in West Bank", "The Chinese Penetration of Israeli Media", "Bank of China Says It Hasn't Helped Hamas", "The China bank is not the issue here, dude", "Israel delivers shocking blow to Bank of China terror victims' families case", "China Can Posture, but It Can't Bring Peace to the Middle East", "Israel Makes Case to China for Iran Sanctions", "China Condemns Israel's Attack on Gaza Aid Flotilla", "Ministry of Foreign Affairs of the People's Republic of China", "General Assembly Votes Overwhelmingly to Accord Palestine 'Non-Member Observer State' Status in United Nations", "India and China Back Unified Palestinian Government", "China repeats support for Palestinian U.N. bid", "U.S. casts lonely vote against establishing war crimes inquiry in Gaza", "Foreign Ministry Spokesperson Hong Lei's Regular Press Conference on July 9, 2014", "China pushes four-point Israeli-Palestinian peace plan", "Israel accuses Chinese state TV of 'blatant antisemitism', "Israel accuses China state TV of 'blatant anti-Semitism'. Chinese capital investment and R&D centers may be underrepresented, however, because Chinese capital is ofteninvestedvia Israeli funds. The China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . While China does a lot of business with Israel, its international support for Palestine limits its political cooperation with the Jewish state. If Israeli systems are hacked, both Israel and its trade partners could be compromised. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. [65] China is a vital market for Israel's aerospace and defense industry. 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). "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. Sino-Israeli trade stood at almost $15.3 billion in 2018, 14 an over 4,200 percent increase in real dollar terms since 1995. 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. with Jeremi Suri 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. While the exact cause of his death is unknown, it is believed he died of natural causes. 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. 108.61.70.43 [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. 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. Beijing accounts for roughly 10 to 15 percent of Israel's economy. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. [80] Investment from China in Israeli technology reached an aggregate of $15 billion from 2011 to 2017 with the surplus of Chinese investment capital finding its way through Israel's high technology sector, including agriculture, pharmaceutical, medical devices, artificial intelligence and autonomous driving. 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. Santa Monica, CA: RAND Corporation, 2020. https://www.rand.org/pubs/research_reports/RR3176.html. This document and trademark(s) contained herein are protected by law. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of 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. [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. 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. [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. [61], In December 2013, Chinese Foreign Minister Wang visited Israel and Palestine. [110] In 2014, Chinese-Israeli tech deals totaled $300 million, up from $50 million in 2013, according to Israel's National Economic Council. 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 . 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). He discussed the importance of the nuclear agreement with Iran and the importance of the continued peace talks. On July 13, before President Biden landed in Israel,JerusalemandWashingtonissued a joint statement (with differences in wording in both versions) on the launch of strategic technology cooperation between Israel and the United States. 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. 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. [8][9] Trade volume increased from $50 million in 1992 to over $10 billion in 2013. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . [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. Assaf Orion Shira Efron. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. 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