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 . As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. It also came up in discussions between US National Security Advisor John Bolton and Israeli PM Benjamin Netanyahu when they met on January 7, 2019. ChinaIsrael relations (In Chinese: Zhng y gunx. 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 dialogue on technology cooperation announced by Jerusalem and Washington, which is related directly to the Great Power competition, signals a new stage in partnership between the countries: Israel alongside the United States, even if not against China. [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. Catherine Leung is a principal and co-founder of . Enhanced coordination between Israels commercial and security technology sectors on dual-use technology transfers can help sustain this delicate balance. Fax: 202-223-5364. Registering also lets you comment on articles and helps us improve your experience. If you guessed that the lie was number 3, you're right. The agency also had nearly 5,000 active counterintelligence cases on its books in the same year, nearly half dealing with China. The action you just performed triggered the security solution. Washington D.C. 20036 [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. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . programs offered at an independent public policy research organizationthe RAND Corporation. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. [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. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. 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 has advanced expertise worldwide, and can feed the global food supply chain through the use of contemporary technology. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. By registering you agree to the terms and conditions. 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. 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. [65] China is a vital market for Israel's aerospace and defense industry. Since the 1980s, Israel has carefully walked the U.S.-China technology tensions . Israeli-North Korean relations are hostile. RAND is nonprofit, nonpartisan, and committed to the public interest. 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. [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. A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. [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. This document and trademark(s) contained herein are protected by law. [65][66], China had looked to Israel for the arms and military technology it could not acquire from the United States, Europe and Russia. 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.. [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. 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. If you share these values with us, please consider supporting our work by joining The ToI Community. Furthermore, Israeli officials are concerned about the numerous Chinese cyberattacks on Israeli companies and government networks. The operation of infrastructure projects affords China unique surveillance opportunities and possibly economic and political levers of influence. But every crisis is an opportunity. [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. [97] In addition, some Israeli start-ups are also positioning themselves exclusively in the Chinese market. 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. [110] In addition, leading Chinese technology firms such as Huawei, Legend and Xiaomi have set up R&D centers in Israel. This report is part of the RAND Corporation Research report series. The dialogue will be in an inter-agency format, with annual meetings held alternately in the two countries, the first of which is scheduled to take place in Israel this fall. 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. 5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. Israel has earned a reputation in recent years as a tech powerhouse. [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. [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. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. Click to reveal February 1, 2023 3. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government 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. [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. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. Chinese economic cooperation with Israel has saw substantial Chinese investment of more than US$15 billion in the Israeli economy, spawning seed capital in Israeli startup companies, as well as the acquisition of Israeli companies by major Chinese corporations that incorporate Israel's know how to help the invigorate the development of the modern Chinese economy more efficiently. [84], In March 2015, Israel joined China's newly constituted Asian Infrastructure Investment Bank (AIIB), becoming a founding member of the institution postulating that Israel may become a major economic ally of China. [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. As a result, Sino-Israeli relations have cooled. 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. Although the headlines were focused elsewhere, the presidents Israel-Saudi trip included statements, agreements, and newly announced inter-agency dialogues that imply deep implications for China policy. 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. 108.61.70.43 Chinese and Israeli interests in the Middle East are incompatible. 5 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. [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. Sergio Restelli is an Italian political advisor, author and geopolitical expert. ", "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. 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. [76], On 13 August 2012, vessels from the PLA Navy's 11th escort fleet, led by Rear Admiral Yang Jun-fei, anchored at Israel's Haifa naval base for a four-day goodwill visit to mark 20 years of cooperation between the Israel Defense Forces and the PLA. [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. 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 . This website is using a security service to protect itself from online attacks. The Bank of China subsequently denied providing banking services to terrorist groups: "The Bank of China has always strictly followed the UN's anti-money laundering and anti-terrorist financing requirements and regulations in China and other judicial areas where we operate. "The Evolution of Sino-Israeli Relations". "The basic research of industries in Israel is better, and the country emphasizes core technology . China's investments in the technology sector in Israel are relatively diverse. Over the past decades he has been involved in peace building and diplomacy efforts in the Middle East and North Africa. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. Please try again or choose an option below. World Israel China. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. 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Tel: 202-452-0650 [35][37][34][39] The cultural similarities between the Chinese and Jewish civilizations with both nations originating thousands of years ago have drawn the two countries closer together making the two countries natural partners in the international community. 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. Dec. 28, 1994 12 AM PT. 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 . our company vision , Israel China Technologies Ltd. is By the projects we set up together. The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. A spokesman of the Chinese Foreign MinistrydismissedBidens remarks, emphasizing Chinas efforts to contribute to peace and regional development, and a spokesman of the Chinese embassy in Israelreiteratedthis message. Israel's innovative climate technology uniquely positions Israel to help tackle the climate crisis. China Steals Israeli Technology. [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. [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. 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. [65], The U.S. Defense Intelligence Agency compiled evidence that Israel had transferred missile, laser and aircraft technology to China in the 1990s. China is also a staunch ally and investor in Iran, which continues to threaten Israels very existence. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. [8][9] Trade volume increased from $50 million in 1992 to over $10 billion in 2013. And what about Israel? [59], As part of the 2010 World Expo, the Shanghai Municipal Government began to allow the city's Jewish community to use the historic Ohel Rachel Synagogue for regular Shabbat services. The negative implications of growing U.S.-China technology tensions are reverberating around the world with disrupted supply chains and protectionist trade policies. Performance & security by Cloudflare. Defense contracts played a leading role here but were also responsible for the . Other countries, including the U.S., work to lure top IP . 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. is the Rueven International Fellow at The Washington Institute, a senior research fellow at the Institute for National Security Studies, and former head of the Strategic Division in the IDF General Staffs Planning Directorate. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. 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. Israel firms are an attractive espionage target as theircutting-edge technologiesareused by many major powers. 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. (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. The Sino-Israeli relationship is particularly complex. 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. Both nations had maintained some trade links, which stood at US$30 million in 1992. the chief American concern is with Chinese investments in the fields of technology that are considered . IVC estimates 138 have a presence in China. These espionage campaigns against Western governments and private sector companies are intended to strengthen Chinas economic advantage and achieve information dominance. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. Further investigation is needed into the question of what type of regulatory mechanism Israel is in the process of creating to monitor foreign investment and how effective it will likely be. by Lindsay Maizland Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. [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. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. Economists are forecasting that Mainland China may surpass the U.S. as Israel's largest trading partner in the near future. Cloudflare Ray ID: 7a1523040d638c6c [88][131], In 2010, the United Nations Security Council passed Resolution 1929, imposing a fourth round of sanctions against Iran for its nuclear enrichment program. with Ivan Kanapathy, Bonny Lin and Stephen S. Roach The largest threat to Israel is from Chinas technological espionage program. [116] Due to the lack of red tape and the wide array of start-up businesses offered by Israel's Silicon Wadi, Chinese investment in Israel jumped more than tenfold in 2016 to a record US$16.5 billion, with money flowing into the country's booming internet, cyber-security and medical device start-ups. Owing to strategic Chinese rivalry with Japan, South Korea, the Philippines, India and Vietnam, as well as concerns over the security of Taiwan, the United States has pressured Israel against selling sophisticated equipment and technology to China. The suit asserted that in 2003 the bank's New York branch wired millions of dollars to Hamas from its leadership in Syria and Iran. This not only forced Israel to sever its defense relations with China but also made US-Israel relations a principal factor in the Sino-Israeli connection and imposed tight constraints on Israel's technology transfers to China generally. Canada bans TikTok from government devices over security concerns. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. In the past 20 years, 97 percent of known investments in Israel from the People's Republic of China (PRC) were in the technology sector. [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. As China rolls out technology infrastructure like 5G bay stations, Washington is worried that Beijing will accrue leverage and access . ", Long before diplomatic relations were established in 1992 Israel had been selling arms to China. [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. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. Assaf Orion, a retired Israeli brigadier general and defense strategist whose broad research scope ranges from relations with China to Israels regional political-military strategy and policy, is the Liz and Mony Rueven International Fellow with The Washington Institute. Academic and Higher Education Webinars, C.V. Starr & Co. Both are AES states but, why are they so different regarding recognition of Israel? [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. [34][43][44][45][46][47][48][49][40][50][15] On a geopolitical scale, China has sought to maintain close relations with the Jewish state as Israel's regional importance, stability and influence in an otherwise volatile region has been an important asset for the expansion of China's influence in the Middle East and the entire world. Third, is the moral (and public relations) risk that Israel will become implicated in the domestic oppression of people accused of opposing the CCP. 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. Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. Use Adobe Acrobat Reader version 10 or higher for the best experience. [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. North Korea does not recognise Israel, denouncing it as an "imperialist satellite". [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. 15. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . Roughly 15 hours later . MarInt, Windward's satellite maritime analytics system, is widely used by many security, intelligence and law enforcement agencies across the world. Reports last December . 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. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. 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