For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. According to The New York Times, Israel lobbied for the sanctions by explaining to China the impact of any pre-emptive strike on Iran would have on the world oil supply, and hence on the Chinese economy. Israel-China medical fund to raise $300m for joint drug development ventures Overall, the FBI concluded that economic espionage cases linked to China have increased by 1,300% in the past decade. Even with these measures, a hard balancing act is bound to become harder as technology trade between the three countries increases and political and security tensions continue to escalate. The largest number of investments is in companies in the life sciences sector (these include medical technologies, biotechnology, biochemistry, and pharmaceuticals - 122 deals in all), followed by investments in software development and IT companies (108 deals); China also invests in companies in the internet . Israeli media reported that these tenders "were seen by officials in Washington as a major test of the Israeli government's policy towards China.". Defense contracts played a leading role here but were also responsible for the . As of 2018, the United States still significantly leads China in terms of high-tech capitalinvestment, with the United States accounting for 35 percent and China for 3 percent of investments. China Paradigm interviewed Rami Blachman, the founder of China Israel Innovation Accelerator and business advisor at AgriNation Venture Capital, to have a comprehensive knowledge of Israeli technology companies in China, to best identify the emerging markets in China, and to look into the market strategies in various Chinese cities.. Rami Blachman, bringing Israeli technology companies in China . Please try again or choose an option below. 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). Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. The group targets data and organizations which are of great interest to Beijings financial, diplomatic and strategic objectives. The espionage takes place while Chinas Belt and Road Initiative and the Chinese government formally declare Israels technology sector as a key area of mutual interest. On this Wikipedia the language links are at the top of the page across from the article title. 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 . 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 . 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? 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. 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. 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. 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. The China-Israel Innovation Hub was established in December 2019 as a major step in Shanghai's implementation of a national strategy to promote Chinese and Israeli scientific technological innovation. In addition, U.S. companies have established 344 R&D centers in the country, Chinese companies only 9. But following U.S. intervention in two crises related to Israeli upgrades and sales of military technology to the PRC the Phalcon crisis in 2000 and the Harpy incident in 2005 Israel put an end to its defense relations with China and implemented an export control law, which placed restrictions on arms and dual-use technology exports. [86][87][83][88] China has sought Israel's technology to increase its international economic competitiveness and risk management. [139] In addition, Chinese Foreign Ministry Spokesperson Hong Lei earlier on 9 July 2014 issued a statement in response to the violence during the military operation, stating: "We believe that to resort to force and to counter violence with violence will not help resolve problems other than pile up more hatred. [130], Chinese involvement in the Israeli technology sector has also generated security concerns. "[124] Besides the Chinese recognition of Hamas, China also does not designate Hezbollah as a terrorist organization. Shira Efronis director of research at Israel Policy Forum. At the same time, there were a string of allegations that Israel transferred sensitive military technology to China. In early 2021, Chinese state-sponsored hackers targeted Russias leading submarine designer, Rubin Design Bureau, with an apparent aim of stealing sensitive information and technology. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. IVC estimates 138 have a presence in China. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. Concerned about Chinas potential use of advanced airborne early-warning (AEW) radar systems, the United States dissuaded Israel from lucrative arms deals in 2000 and 2005, souring Chinese-Israeli security trade relations. Your IP: The company operates worldwide and has subsidiaries in Germany and Mainland China. This article was originally published on the INSS website. Warnings", "Israel and China quietly form trade bonds (pg. 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. It takes just a few seconds. 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. Previously in 2012, Chinese operatives had lured two Russian academics to obtain nuclear missiles-related information. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. 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. [127], In 2012, the families of eight Israeli terror victims of the 2008 Mercaz HaRav massacre in Jerusalem filed a $1 billion lawsuit against the Bank of China. [84][85] Israel has sought China's enormous global influence on world affairs, large consumer market, broad industrial manufacturing scale, and burgeoning economic dynamism while China has sought Israel as a powerhouse of advanced technological wizardry and a wellspring of entrepreneurial acumen leveraging each other's complementary capabilities and resources. 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." Sanctions imposed by Western countries almost froze Chinese access to advanced military and dual-use technologies. WASHINGTON . That's a tiny fraction of the approximately 1,300 Israeli companies in the U.S. and 750 in . 1624, July 26, 2022. 108.61.70.43 with Ivan Kanapathy, Bonny Lin and Stephen S. Roach First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. Israeli-North Korean relations are hostile. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. The operation of infrastructure projects affords China unique surveillance opportunities and possibly economic and political levers of influence. with Jeremi Suri Technological ties between Israel and China have always been a central and constant element of their relationship. (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. [22] In the early 1990s, China joined a number of nations who established ties with Israel after the initiation of a peace process between Israel and the PLO in the early 1990s; it also desired to play a role in the peace process. 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. 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. And educational and technological entrepreneurship initiatives that are the basis for the future. [80] Chinese delegations regularly go to Israel, clinching deals with Israeli high-tech companies. U.S. Says Israel Gave Combat Jet Plans to China. [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. [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. This document and trademark(s) contained herein are protected by law. Although the two states did not normalize their relations until 1992, since then the bilateral relationship has developed extensively, especially in the economic sphere. Spread the word. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. American officials had also tried to contain Chinese activities through a bilateral agreement in 2015, signed at the highest level between the U.S. and Chinese presidents. [69], Israel was ready to sell China the Phalcon, an Israeli airborne early-warning radar system (AWACS), until the United States forced it to cancel the deal. Sergio Restelli is an Italian political advisor, author and geopolitical expert. February 13, 2023 The secret, circuitous journey began late one night in February 1979 when an unmarked Boeing 707 took off from Ben Gurion Airport in Tel Aviv, Israel. What are the security implications of Chinese investments in Israeli technology and infrastructure? David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . 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. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. 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. 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. [29][30], In May 2020, the Chinese ambassador to Israel, Du Wei, was found dead at his home in Herzliya. [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. [82][83] China is also Israel's third largest trading partner and export market after the United States and the European Union with China being Israel's largest export market in East Asia. 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. The Times of Israel is committed to Israel as a Jewish and democratic state, and independent journalism provides an essential protection for democratic equality. 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. ", "China and Israel's tale of love and high-tech | Asia Times", "PM: Strong ties with China, India thanks to 'diplomacy of technology - Israel News - Jerusalem Post", "Israel Leaps into China with the New Borderless Alliance", "Feature: Israeli startups look east for vast funding, market potential", "Chinese investors flock to Israel for unlikely reasons", "China to overtake US as biggest investor in Israel", "Will 2018 Bring Back the Chinese investors", "Chinese companies seek tech innovations in Israel", "Israel Signs Cooperation Agreement With China", "Israel to Co-op with China in Railway Project", "Chinese 'very impressed' with Israeli economy", "Could China supplant U.S. as top source of Israeli tech capital? 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. 2. Chinese investment in sensitive technologies and construction of major Israeli infrastructure projects present distinct concerns for Israel and the United States. You can email the site owner to let them know you were blocked. Although Western countries also sold weapons to China prior to 1989, Israel significantly contributed to improving the quality of the Chinese military's weapons. "Groundbreaking of Guangdong Technion Israel Institute of Technology in China," Technion Institute of Technology (December 17, 2015). One example in February 2012 in which both nations signed a $300 million deal to export Israeli water technology to China. Chinese investment in . A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. [141], In May 2021, Israel's embassy in Beijing accused Chinese state media outlet China Global Television Network of "blatant antisemitism" when host Zheng Junfeng broadcast a segment accusing US policy on Israel of being influenced by wealthy Jews, during the 2021 IsraelPalestine crisis.[142][143]. Fax: 202-223-5364. February 22, 2023 One-third of the world's cybersecurity unicorns are in Israel. [65] Due to Israel's recognition of China, Israel has also limited its cooperation with Taiwan in order to foster closer ties with Mainland China. 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. 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. Since 1979, Israel has sold China billions of dollars in military equipment and technology, mostly key components and technology prototypes. [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. Annual Lecture on China. Roughly 15 hours later . with Ivan Kanapathy, Bonny Lin and Stephen S. Roach, The U.S.-China-Israel Technology Triangle, Year in Review: Content Moderation on Social Media Platforms in 2019. [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. The Nationalist government of the ROC had been historically sympathetic to the Zionist cause, while Sun Yat-sen affirmed his support for the creation of a Jewish state. 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. Later in the statement, the parties agree to seek to increase coordination on policies on risk management in our innovation ecosystems, including research security, investment screening, and export controls, as well as on technology investment and protection strategies for critical and emerging technologies. This agreement reflects joint understandings on challenges to securing technology, which, according to numerous international studies, China jeopardizes in various ways: technological espionage; forced or unwarranted technology transfer, inter alia by means of cooperation in research, investments, and unauthorized or unwitting exports; talent recruitment; and large-scale offensive activity in cyber espionage. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. [10] Some commentators note similarities between the cultures and values of the two nations. Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. [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. ", "Ynetnews Opinion - US alienation leading to Israeli-Chinese renaissance", "China's century-old support for Zionism surfaces in letter", "Israel and China quietly form trade bonds", Israel Strengthening Representation in China, "Netanyahu: Israel and China must cooperate on security and trade", "Why China Must Pay Attention to the Israel-Palestine Conflict", "How Israel is winning the social media war in China", "Chinese ambassador to Israel found dead at home", "Chinese ambassador to Israel is found dead in his home", "China warns Israel not to let U.S. pressure hurt relations", "Similarities Between Chinese People and Jewish People", "Stop and smell the blossoming ties between Israel and China", "China's ambassador to Israel, Zhao Jun, is in love", "The Chinese Believe That the Jews Control America. # x27 ; s a tiny fraction of the two nations not designate as... And possibly economic and political levers of influence by law issues that matter most use of page. 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