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. 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. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. 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 Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. [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. May 31, 2021, 12:24 pm. Israel's arms sales to China. According to China's modus operandi in the BRI project, It has invested in infrastructure in developing countries and in technology in developed ones. This report is part of the RAND Corporation Research report series. 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. 3. January 31, 2022, How Tobacco Laws Could Help Close the Racial Gap on Cancer, Interactive [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. 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. [126] In addition, the Chinese established Chinese institutes in Israel, to public and media activities of Israel-based Chinese diplomats. [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. A technologically robust Israel can gain from being pinched in a technology triangle as long as it maintains well-thought-out controls on dual-use technologies. [134] During the November 2012 Operation Pillar of Defense in the Gaza Strip, the Ministry of Foreign Affairs of the People's Republic of China urged all sides to display restraint. 5 However now as Prime Minister, Bennet finds himself in a pickle. 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. [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. [80][12][81][82] The economic synergy has served the two respective countries greatly where Israel's global technological prowess combined with China's global economic influence, industrial manufacturing capabilities, and marketing expertise made cooperation between the two nations inevitable. [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. [136] On June 3, 2014, China recognized the Palestinian unity government between Hamas and Fatah. [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. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License. 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. 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. [15] The two countries decided to set up an agriculture technology incubator in Anhui Province, China enabling joint development of agriculture technologies and solutions in keeping with requirements on the ground. The Israeli government responded to this pressure partially by establishing . At the same time, there were a string of allegations that Israel transferred sensitive military technology to China. 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 . [65][66], China had looked to Israel for the arms and military technology it could not acquire from the United States, Europe and Russia. The Israeli government responded to this pressure partially by establishing an advisory, On the eve of then-Prime Minister Naftali Bennetts first meeting with President Biden, his office announced that Israel was taking American concerns about China seriously and regarded it as a matter of national security. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. [101] On June 22, 2015, The Israeli conglomerate Delek Group agreed to sell a 52 percent controlling stake of its company to the Chinese civilian-run conglomerate Fosun International. [52][22][54] In turn, Israel has imported high-tech products and manufactured goods from China. [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. Chinese investment in . [26] China was similarly represented by a branch of the China International Travel Service, which also opened in 1990. 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? This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. [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 China-Israel Technology Tussle Jan 11, 2022, 5:49 PM Edit; . On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. [22] Reportedly, a large number of the heavy tanks used in China's 1984 National Day parades were retrofitted by Israel from captured Six-Day War equipment.[23]. A major U.S. concern is that China's quest for foreign technology targets Israel as a potential source. A growing number of governments in North America are restricting the use of the social media app, citing its ties to China. On July 15, the White Houseannouncedthe outcome of meetings with the Saudi king and his son, which included agreements in many areas, including removal of the observers from Tiran Island (with Israels consent), the opening of Saudi skies to commercial flights (including Israeli flights), and a ceasefire in Yemen. The 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. No further sales of military technology between China and Israel havebeen reported since. The security risks of Chinese investment and construction could affect the Israel-U.S. relationship. 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. Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. China now ranks second after the United States in collaboration with Israeli high-tech firms that are backed by Israel's Office of the Chief Scientist. The Israeli 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. 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. Since the 1980s, Israel has had robust technological cooperation and trade with the U.S. while often, in deference to U.S. security concerns, limiting the sale of some technologies to China. Israel's foreign-investment screening mechanism seemed to be working. Third, is the moral (and public relations) risk that Israel will become implicated in the domestic oppression of people accused of opposing the CCP. [22] However, following the Sino-Soviet split and China's 1979 establishment of diplomatic relations with the United States, China began to develop a series of secret, non-official ties with Israel. In addition, U.S. companies have established 344 R&D centers in the country, Chinese companies only 9. [29][30], In May 2020, the Chinese ambassador to Israel, Du Wei, was found dead at his home in Herzliya. As China reportedly applies its toolkit . As research shows, China's global tech transfer enterprise includes legal and illicit efforts, espionage and theft, business activity as well as academic relations, expanding well beyond investment. Similarly in August 2021, a US cybersecurity firm FireEye, reported that a Chinese group UNC215 attacked several Israeli entities, commercial and government. China's investments in the technology sector in Israel are relatively diverse. 15. Tue, Feb 28, 2023 LOGIN Subscribe for $1 Annual Lecture on China. [10] Netanyahu visited China again in 2017 amid celebrations taking place to commemorate 25 years of ties between the two countries. The G2G (Government to Government) mechanism was established and five task forces were set up in high tech, environmental protection, energy, agriculture and financing. ", "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. First, the United States and Israel should establish a high-level working group to coordinate U.S. and Israeli policy on technology and China. 2023 The Times of Israel , All Rights Reserved. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. [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. [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. February 3, 2020, 3:30 PM. [86][87][83][88] China has sought Israel's technology to increase its international economic competitiveness and risk management. [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. February 22, 2023 [25] This was opened in June 1990. 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. 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. Efron, Shira, Karen Schwindt, and Emily Haskel, Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and the United States. Incorrect password. 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. [113] In 2013, Li donated US$130 million to Technion. [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. He then was key in trying to pivot Israeli trade to new markets such as India and China, which seemed to be safer as per the BDS movement was concerned. 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. On July 13, before President Biden landed in Israel,JerusalemandWashingtonissued a joint statement (with differences in wording in both versions) on the launch of strategic technology cooperation between Israel and the United States. Israels flourishing semiconductor industry is illustrative. 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. [71] Israel is now China's second-largest foreign supplier of arms after Russia with China having purchased a wide array of military equipment and technology, including communications satellites. Assaf Orion Shira Efron. China has not even spared its strategic partners from such commercial espionage. ", "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. 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 . Whereas growing U.S.-China technology tensions cause significant Israeli political and security concern, they also provide new opportunities for economic growth. Zelensky: If China allies itself with Russia, there will be world war III. [76] The visit came after Defense Minister Ehud Barak's visit to China in June,[74] the first visit of a defense minister to the country in a decade. Israel firms are an attractive espionage target as theircutting-edge technologiesareused by many major powers. Furthermore, Israeli officials are concerned about the numerous Chinese cyberattacks on Israeli companies and government networks. INSS Insight No. [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. Chinese investment in sensitive technologies and construction of major Israeli infrastructure projects present distinct concerns for Israel and the United States. However, economically insignificant it may be for both China and the US, the Haifa port could become a critical battleground in a new Cold War between the two superpowers. It is located at the east side and south side of Shantou University. With the formation of the West Asian quad and Israeli attempts at convincing the Biden White House to back down on a potential Iranian agreement, Israel-like the UAE may need to finally choose sides. What aspects of Chinese investment into Israel merit further investigation and research? [123] China's record of proliferating arms and weapons systems has also concerned U.S. planners, as the U.S. worries that China may repackage advanced Israeli defense technologies for resale to America's rivals and nations hostile to it throughout the world. . 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. [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. Drawing upon decades of experience, RAND provides research services, systematic analysis, and innovative thinking to a global clientele that includes government agencies, foundations, and private-sector firms. Instead of limits and threats by one side and tiptoeing by the other, Israel and the United States agreed to elevate their partnership, adapting it to challenges of the 21stcentury and the era of Great Power competition, with technology at its core. Other countries, including the U.S., work to lure top IP . On November 5, 2021, a federal jury in Cincinnati determined that Xu was guilty of conspiring to and attempting to commit commercial espionage and stealing trade secrets from the U.S. Xu is the deputy division director of the Sixth Bureau of the Jiangsu Province of the Chinese Ministry of State Security, the primary intelligence agency of the Chinese Communist Party (CCP). [77][78] The vessels and crewmen were welcomed by the Haifa base commander, Brigadier General Eli Sharvit,[78] and Chinese embassy officials. 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. , Bennet finds himself in a pickle Technion and one of the China International Travel Service which... 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