The Israeli government responded to this pressure partially by establishing an advisorymechanismfor national security aspects of foreign investments in areas subject to regulation. In December last year, TIME magazine called InSightec's FDA-approved MR Guided Focused Ultrasound one of the best 50 inventions of the year.. [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. [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. The company operates worldwide and has subsidiaries in Germany and Mainland China. [113] In 2013, Li donated US$130 million to Technion. 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). 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 February 13, 2023 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. For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. As per IVC Data and Insights, it invested $400 million in Israeli start-ups in 2018 and $243 million in 2019. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. Chinese and Israeli interests in the Middle East are incompatible. 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 is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. 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. [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. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. And educational and technological entrepreneurship initiatives that are the basis for the future. This type of balance will become increasingly difficult. 1. China has not even spared its strategic partners from such commercial espionage. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. 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 . 2)", "Israel-China Relations And The Phalcon Controversy", "Israel Selling China Military Technology, C.I.A. Performance & security by Cloudflare. Turkeys Disasterand Erdogans: How the Earthquake Could Spell the End of His Rule. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. Fax: 202-223-5364. 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. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial, Israel does realize that it cannot continue to sit on the fence. The second paragraph (in the text issued by Washington) pledges to boost our mutual innovation ecosystems, to deepen bilateral engagements, advance and protect critical and emerging technologies in accordance with our national interests, democratic principles and human rights, and to address geostrategic challenges, i.e., not merely economic or scientific challenges. [122] In 2000, Israel cancelled the sale to China of the Israeli-built Phalcon Airborne Warning and Control System (AWACS) in the wake of pressure from the U.S., which threatened to cut off US$2.8 billion in yearly aid if the deal went through. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. China is Israel's third-largest trade partner behind the EU and the US. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. Previously in 2012, Chinese operatives had lured two Russian academics to obtain nuclear missiles-related information. 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. Chinese Jews have been a major impetus in maintaining the strong nexus between the Chinese and Jewish civilizations. There are similar concerns about Chinese investmentin Israel. As China reportedly applies its toolkit . Ph.D. Student, Pardee RAND Graduate School, and Assistant Policy Researcher, RAND, Assistant Policy Researcher, RAND, and Ph.D. Student, Pardee RAND Graduate School. The Institute is a 501(c)3 organization; all donations are tax-deductible. 5G and 6G communications are an area of intense conflict between the United States and Chinas communications giants, headed by Huawei. WASHINGTON . which China has sought Israel to invest in as an alternative. 2. [108], Bilateral trade between the two nations increased from $50 million to $10 billion in 2013. 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. That's a tiny fraction of the approximately 1,300 Israeli companies in the U.S. and 750 in . In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. The main Israeli export to China (51%) is electronic components, while Intel is responsible for 80% of exports, including chips made in Israel and sent to China for inspection and assembly. [124] On June 8, 2015, China demanded Israel to refrain from utilizing Chinese migrant construction workers in Israeli settlements in the West Bank. ", "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-Israel Technology. 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 . Since the two started FTA talks in 2016, the value of trade has grown from $10.96bn to $18.16bn in 2021. 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. Warnings", "Israel and China quietly form trade bonds (pg. [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. The Times of Israel is committed to Israel as a Jewish and democratic state, and independent journalism provides an essential protection for democratic equality. [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. Israeli technology companies are heading to China, too. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. The case of Huawei is illustrative. China and Israel have hosted many reciprocal business events that facilitate cooperation between Chinese and Israeli firms, usually with Israel providing technology to an established Chinese company. 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. ExAblate: InSightec. With the advice and experience of Jewish entrepreneurs, innovators, and inventors from the high-technology sectors, China has utilized Israel's indispensable economic and technological contributions to foster its long-term economic development. Other countries, including the U.S., work to lure top IP . Actions like these on the part of Huawei have led to increased scrutiny and blacklisting of the company in many countries in the West. The report continued: "As China's BRI (Belt and Road Initiative) moves westward, its most important construction projects in Israel are the railway between Eilat and Ashdod, a private port at . A US trump card in Gulf geopolitics: Capacity-enhancing security cooperation. 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. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity. Roughly 15 hours later . A recent Newsweek cover story highlights that China views Israel as a pivotal technological superpower it wishes to exploit. Reports last December . What aspects of Chinese investment into Israel merit further investigation and research? The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. 2. The Chinese government met with senior Hamas representative Mahmoud al-Zahar, who previously served as Palestinian foreign minister, during the June 2006 China-Arab Cooperation Forum in Beijing which held direct bilateral talks despite protests from Israel and the United States. [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. [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. According to the read-out from the Israeli President's Office, Herzog and Xi discussed opportunities to enhance Israeli-Chinese bilateral ties ahead of the 30th anniversary of the establishment of diplomatic relations, in honor of which Herzog and Xi invited each other to visit their respective countries. But every crisis is an opportunity. [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. Defense contracts played a leading role here but were also responsible for the . 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. 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. [36] The scientific and technological advancements made by Israel had led many Chinese politicians to respect the country's ingenuity and creative inventiveness because they know of the contributions that as Israeli agricultural, drip irrigation, and solar energy technologies are seen as crucial to China's economic development. If Israeli systems are hacked, both Israel and its trade partners could be compromised. This article was originally published on the INSS website. If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. Academic and Higher Education Webinars, C.V. Starr & Co. An official at the Israel Export Institute told Reuters that new data showed semiconductor exports to China jumped 80 percent last year to $2.6 billion. 3. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. 2023 The Times of Israel , All Rights Reserved. 00:00. And it has often accused China of engaging in such activity through attacks against American companies to steal commercially valuable intellectual property data such as corporate strategies, product designs, business negotiations, and dual-use technology-related data. The Washington Institute for Near East Policy, China Below the Radar: Israel-US Strategic Dialogue on Technology, In a joint press conference with Prime Minister Yair Lapid on July 14, 2022, President Biden. 15. 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. "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. [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. 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. 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. 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. It is due to China and Russias support that Iran continues to financially and politically survive despite crippling sanctions from the West. 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. [114] On September 2 2015, Fosun International made another investment in Israel where it agreed to purchase the Ahava cosmetics firm for NIS 300 million (US$77 million). Israeli technology, global . Spread the word. C.V. Starr & Co. 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. now's the time to act. Global Health Program, Higher Education Webinar: Teaching the History of American Democracy, Webinar [111] Bilateral between the two countries reached in excess of $10 billion in trade since the start of 2015. Israel-China medical fund to raise $300m for joint drug development ventures 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." China as an issue per se ostensibly went no further during Bidens visit, but the details indicate otherwise. China's relations with Israel in particular had to be based on a highly pragmatic and non-political stance, as both countries had other factors to consider. And what about Israel? Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. [120] In 2017, China became Israel's fastest growing source of tourists as 2017 was the first year when the number of Chinese tourists surpassed 100,000. Overall, the FBI concluded that economic espionage cases linked to China have increased by 1,300% in the past decade. 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 . The former head of Mossad, Efraim Halevy, is one of the major critics in Israel who believes that the country should examine the geopolitical considerations with China and has consistently warned the Israeli government against involving the Chinese in the Red-Med project, arguing that it could lead to a crisis in strategic relations with the United States. The question is, with Israel, when China will cross the line? [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]. The U.S. government charged him with stealing sensitive engine technology by extracting information from a G.E. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. 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 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. And, finally, there is the possibility that China will exploit Israeli technology in . our company vision , Israel China Technologies Ltd. is By the projects we set up together. [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. [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. 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. The Israeli consul Jackie Eldan noted that the gesture was a "special effort", as the synagogue is now located within the compound for the city's education ministry, and that it was "truly highly appreciated by Israel. 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. 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. [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. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. 5 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. Annual Lecture on China. At the same time, there were a string of allegations that Israel transferred sensitive military technology to China. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. Security Implications for Israel and the United States, by Shira Efron, Karen Schwindt, Emily Haskel. Israel sold technology to upgrade Chinese tanks and planes in the 1980s. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. Israel firms are an attractive espionage target as theircutting-edge technologiesareused by many major powers. [65][66][67], Israel has provided China with military assistance, expertise and technology. If you share these values with us, please consider supporting our work by joining The ToI Community. [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. Renewing America, Backgrounder 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 action you just performed triggered the security solution. [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. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. Herepeatedthis message at a summit with leaders from the Gulf and Arab countries on July 16. Security concerns, both domestic and from Washington, have shaped Israels sales to China from the beginning. The company was active until 1992, when official diplomatic relationships were announced between Israel and China. [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. We urge relevant parties to bear in mind the broader picture of peace and the lives of the people, immediately realize a ceasefire, stick to the strategic choice of peace talks and strive for an early resumption of talks. This venture has proven a success for the Chinese and a failure for the Israeli media, which uncritically swallow the messages sent out by CRI's Hebrew team. The Israeli office was formally known as the Liaison Office of the Israel Academy of Sciences and Humanities. 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. 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. 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. China is also a staunch ally and investor in Iran, which continues to threaten Israels very existence. February 1, 2023 You are also agreeing to our. [130], Chinese involvement in the Israeli technology sector has also generated security concerns. [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. China's then Foreign Minister Li Zhaoxing called the Israeli West Bank barrier wall an obstacle to peace in a September 2006 statement during a UN Security Council meeting on the Middle East. The committee's chilling effect on trade and ties with China is . RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. [89][90] China has also expressed desire for Israel's advanced technologies, particularly in fields related to agriculture, telecommunications, and defense. Israel then sought to benefit from the situation and became China's backdoor to western technology. Advertisement. [94][93][95][96] Since the mid-2010s, China has increasingly becoming a pillar source of financial funding of Israel's high-tech ecosystem with the influx of Chinese investments in Israeli companies and technologies since the mid-2010s has mutually contributed both the Chinese and Israeli economies. In this particular case it may help Israel to decide and not react, given Chinas global aggressive stance. [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. 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. 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. [110] In addition, leading Chinese technology firms such as Huawei, Legend and Xiaomi have set up R&D centers in Israel. Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. The strategic Great Power competition shifted the front line to the technological sphere, and accordingly, the cooperation between Washington and Jerusalem requires adaptation. Ensure high standards for research quality and objectivity by extracting information from a.. Hours on average a China-related counterintelligence case every ten hours on average September 11 2001! Scrutiny and blacklisting of the Israel Academy of Sciences and Humanities, including a $ 1 billion sale. China and Russias support that Iran continues to threaten Israels very existence in! Triggered the security solution to a high-tech one - and Israel & # x27 ; chilling. China 's backdoor to western technology, when official diplomatic relationships were announced between and... And Russias support that Iran continues to threaten Israels very existence announced between Israel and the United,. 2013 and five agreements were signed during His visit Rights Reserved a key part high standards for quality! 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