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. [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. Shira Efron is director of research at Israel Policy Forum and head of the Climate Change and National Security Program at INSS. Academic and Higher Education Webinars, C.V. Starr & Co. [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. [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 type of balance will become increasingly difficult. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. Chinese and Israeli interests in the Middle East are incompatible. 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. 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. This website is using a security service to protect itself from online attacks. 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. Incorrect password. [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. Roughly 15 hours later . [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. 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. Canada bans TikTok from government devices over security concerns. Guangdong Technion-Israel Institute of Technology is a joint cooperative higher education institution established by China and Israel. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. 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 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 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. Gen. Assaf Orion (Res.) Click to reveal United Nations Partition Plan for Palestine, Israel Academy of Sciences and Humanities, United States-China Economic and Security Review Commission, People's Liberation Army General Staff Department, Shanghai International Port Group Co. (SIPG), Learn how and when to remove these template messages, Learn how and when to remove this template message, Beijing University of International Business and Economics, Committee on Foreign Investment in the United States, Ministry of Foreign Affairs of the People's Republic of China, Dates of establishment of diplomatic relations with the People's Republic of China, "Israel, China in Talks to Become Major Financial Allies", "As Chinese-Israeli Relations Enjoy a Second Honeymoon, America Frets", "Chinese foreign minister's visit to Israel clouded by terrorism case against Bank of China", "Israel's Tech Industry Is Becoming All About 'China, China, China", "China-Israel relations are bound to blossom H.E. 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. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. [105] In August 2012, with Chinese-Israeli trade growing, the Beijing University of International Business and Economics in Beijing set up a department dedicated to studying Israeli economics and Judaism, while some Chinese universities began offering Hebrew courses. The China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. Shira Efronis director of research at Israel Policy Forum. Overall, the FBI concluded that economic espionage cases linked to China have increased by 1,300% in the past decade. Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. 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. In 2013, when current Prime Minister Bennett was the Minister of Economy, he believed that the BDS (Boycott, Disinvestment and Sanctions) movement would have had a negative effect on the future of Israeli exports to the west. [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. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. . [61], In December 2013, Chinese Foreign Minister Wang visited Israel and Palestine. China eased travel restrictions, while Israel reopened its consulate in Hong Kong (then under British administration), which would serve as the main point for diplomatic and economic contact between the two nations. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. In other words, without any explicit anti-China statements that would embarrass his Saudi hosts, the Biden administration promoted practical measures mobilizing their support for US efforts in the Great Power competition. 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. [18] For some time after the 1949 Chinese revolution, the People's Republic of China (PRC) was diplomatically isolated, because the United States and its allies, including Israel, recognized the Republic of China (ROC, commonly known as Taiwan after 1949) as the sole legitimate government of China. The United States and Israel, a recipient of over $3 billion in U.S. military aid, often co-develop weapons and coordinate their sales to ensure that sensitive technology doesnt fall into enemy hands. Since the two started FTA talks in 2016, the value of trade has grown from $10.96bn to $18.16bn in 2021. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Defense contracts played a leading role here but were also responsible for the . Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. ", "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? Bingde's visit was part of a tour that included stops in Russia and Ukraine. [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. [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. The statement and the partnership are not aimed against any third party, but respond to both Israels development needs, expanding its joint innovation base with the United States, and to US national security concerns pertaining to technological competition with China and to Israels related role. 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. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli One expert commentator, noting that bilateral trade grew from $50 million in 1992 to some $15 billion or more in 2021, added that "a closer look . [19][20], In 1947, however, the ROC abstained from voting in the United Nations Partition Plan for Palestine. Is That a Good Thing? 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. ExAblate: InSightec. As of 2020 Israel runs a trade surplus with the US and a trade deficit with China. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. If Israeli systems are hacked, both Israel and its trade partners could be compromised. [2][3] Since then, Israel and China have developed increasingly close economic, military and technological links with each other. There are three other major . China is a dictatorship and the relationship with Israel at some-point outlive Chinese geopolitical ambitions in the middle east. Alibaba has also invested in Israel-based venture fund Jerusalem Venture Partners, becoming a limited partner joining Qihoo 360, another Chinese web company to have invested in the Jerusalem-based fund. 2023 The Times of Israel , All Rights Reserved. The strategic Great Power competition shifted the front line to the technological sphere, and accordingly, the cooperation between Washington and Jerusalem requires adaptation. [8][9] Trade volume increased from $50 million in 1992 to over $10 billion in 2013. [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. On this Wikipedia the language links are at the top of the page across from the article title. [109] Recent high end deals include a Chinese donation of $130 million to Technion for a research center, Beijing winning a $2 billion tender to build the Med-Red railway linking Ashdod port with Eilat as well as a $1 billion Israeli port tender, a $300 million joint research center between Tel Aviv University and Tsinghua University, and Chinese acquisition of a controlling stake in Israel's Tnuva dairy company for more than US$1 billion. Renewing America, Backgrounder [15][108] Horizons Ventures, a venture capital firm established by Hong Kong business magnate Li Ka-shing, led a US$10.8 million strategic investment in Windward, an Israeli maritime data and analytics company. 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. Israels flourishing semiconductor industry is illustrative. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. In January 2011, the Israeli Central Bureau of Statistics stated that Israeli exports to China had grown by an annual 95 percent in 2010 to $2 billion. 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 attacks against Israeli entities highlight Beijings consistent strategic interest in the Middle East, FireEye said. 2023 The Times of Israel , All Rights Reserved. The hub is now home to around 100 companies and institutes from China and Israel in industries like smart manufacturing and healthcare. Israel then sought to benefit from the situation and became China's backdoor to western technology. North Korea does not recognise Israel, denouncing it as an "imperialist satellite". ", "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'. On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. 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. China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. 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. 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. Although China may see Israel as more lenient than the U.S. in sharing technology, Israel may ultimately act similarly cautiously as it does not . The action you just performed triggered the security solution. 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 . A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. Israel-China medical fund to raise $300m for joint drug development ventures, Arieli Capital to set up innovation center in China for maritime tech, Jews in Belgium expect already dire anti-Semitism problem to get worse, says AJC, Young Israelis really like China, and Alibaba may play a part, PM lauds growing friendship between Israel, China as he hosts vice president, Chinese vice president arrives in Israel to boost business ties, Alibaba founder Jack Ma visiting Israel this week, Alibaba announces multibillion dollar research project with Israeli R&D center, Israel, China set up first accelerator program in Beijing, Netanyahu to Times of Israel Chinese: I hope Beijings superb relations with Israel will affect its UN votes, Israel aims to become worlds 15th largest economy by 2025 minister, Yifeng Zhou on Chinas interest in Israeli innovation, Chinas Kuang-Chi to set up Tel Aviv base, eyes larger firms, Israeli startup sells anonymous messaging app in $32 million deal, Chinese-Israeli fund to invest $250m in med tech, Already a member? [115] While Protectionism in the United States through the potential impact of Committee on Foreign Investment in the United States on international Chinese investment strategies has made it difficult for Mainland Chinese companies to acquire American assets, Israel has been a receptive host warmly welcoming the influx of excess Chinese cash and investment capital into the country's private sector economy As China reportedly applies its toolkit . Surprisingly, they seem to have tried to mask their attack trying to use Farsi and deploy countermeasures to make it seem that the attack originated in Iran. By registering you agree to the terms and conditions. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. 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. 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. [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. 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. [25] This was opened in June 1990. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. But every crisis is an opportunity. [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. ChinaIsrael relations (In Chinese: Zhng y gunx. That's a tiny fraction of the approximately 1,300 Israeli companies in the U.S. and 750 in . 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. Israel, due to its strategic location, has the potential to become the focal point - a linchpin of the BRI. 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." [10] Some commentators note similarities between the cultures and values of the two nations. China-Israel Technology. It has even utilized its telecom companies like Huaweis sprawling reach in the West to collect pieces of sensitive information. Also available in print form. . February 3, 2020, 3:30 PM. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. Israel is trying to manage a tricky balance between pleasing its ally, the U.S., without throttling lucrative technology deals with China. To bring down the cost of production for the many consumer and industrial . Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. [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. "For the United States, China is a threata three-pronged threat that's strategic . Although Western countries also sold weapons to China prior to 1989, Israel significantly contributed to improving the quality of the Chinese military's weapons. Israel-China medical fund to raise $300m for joint drug development ventures WASHINGTON . [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. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. At the same time, there were a string of allegations that Israel transferred sensitive military technology to China. During the 1955 AsianAfrican Conference, China (under the PRC) expressed support for the Palestinian right of return, but refrained from denying Israel's right to exist and secretly pursued trade ties with the Israelis. A recent Newsweek cover story highlights that China views Israel as a pivotal technological superpower it wishes to exploit. Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. 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. 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. TIMES STAFF WRITER. 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. 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. In this particular case it may help Israel to decide and not react, given Chinas global aggressive stance. Washington's pressure on Israel focused on halting China's 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. In addition, China sees Israel as an astute technology exporter and has sought the Israeli technological development that China lacks, fueling the successful cooperation between the two countries. [52][53] China is Israel's largest East Asian trading partner and has sought Israel's expertise in solar energy, manufacturing robotics, irrigation, construction, agricultural and water management and desalination technologies to combat drought and water shortages. The Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. 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. [97] In addition, some Israeli start-ups are also positioning themselves exclusively in the Chinese market. now's the time to act. [111] Baidu, China's largest search engine, has put US$3 million into Pixellot, an Israeli video capture start-up and provided funds to Carmel Ventures, an Israeli venture capital firm as well as lead a $5 million investment round in the Israeli music education firm Tonara. [28], During the 2014 IsraelGaza conflict, it was reported that Israel was winning the public opinion battle in China with most Chinese social media users siding with Israel. [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. 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