The amount of venture capital money invested in Israeli companies has risen 50% in the last three years. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. [65], The U.S. Defense Intelligence Agency compiled evidence that Israel had transferred missile, laser and aircraft technology to China in the 1990s. [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. The dialogue on technology cooperation announced by Jerusalem and Washington, which is related directly to the Great Power competition, signals a new stage in partnership between the countries: Israel alongside the United States, even if not against China. | Eyes on Europe & Middle East", "China-Israel economic, tech cooperation to enter new stage: Israeli minister", "Through Trade and Tourism, China Turns Its Attention to Israel", "China And Israel: A Perfect Match, Growing Steady", "Netanyahu: Israel has strong relationships with China, India", "The uncertain future of China-Israel relations", "Does China Not Need Israeli Technology Anymore? [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. Sources state that was an Israeli initiative and not a US demand. The recent statement by President Biden and Prime Minister Lapid reflects progress toward a change in attitude on both sides of the Atlantic. Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. Also available in print form. [132], After the May 31, 2010 Gaza flotilla raid the Chinese Foreign Ministry spokesman Ma Zhaoxu condemned Israel. China-Israel Industrial R&D Cooperation Framework MOU Between Israel and the People's Republic of China. 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. [1] However, China did not establish normal diplomatic relations with Israel until 1992. What is the nature of Chinese investment in Israeli technology and infrastructure? A recent Newsweek cover story highlights that China views Israel as a pivotal technological superpower it wishes to exploit. [124], Though relations are close and generally good with no particular bilateral problems between the two nations, China and Israel continue to remain divided on the issue of Palestine, Israeli settlements in the West Bank and East Jerusalem, economic blockade of Gaza, and the Israeli West Bank barrier wall. Data on Chinese investments in Israeli technology and infrastructure are not systematically collected, and more research is needed to capture the full extent of Chinese access. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. And what about Israel? The operation of infrastructure projects affords China unique surveillance opportunities and possibly economic and political levers of influence. [106] The group SIGNAL has established an exchange network of Chinese and Israeli scholars and academics to help them collaborate with each other on various academic projects. [136] On June 3, 2014, China recognized the Palestinian unity government between Hamas and Fatah. In parallel, China is increasing investments in Israeli semiconductor companies and driving up demand for locally-designed chips. 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. 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. Locating innovative technologies and setting up innovative technology-intensive projects. [59], As part of the 2010 World Expo, the Shanghai Municipal Government began to allow the city's Jewish community to use the historic Ohel Rachel Synagogue for regular Shabbat services. 2023 The Times of Israel , All Rights Reserved. [25] This was opened in June 1990. Renewing America, Backgrounder According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. [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. Israel has more than 6,500 active tech firms, or about one company per 1,400 people. Such an agreement thus far exists only between the United States and three of its closest and most advanced allies: Britain, Australia, and Japan. [11][51][13], In November 1991, the Defense Minister of Israel Moshe Arens was reported to have paid a secret visit to China and believed to have negotiated the establishment of ties and expansion of military cooperation. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . 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. It has even utilized its telecom companies like Huaweis sprawling reach in the West to collect pieces of sensitive information. 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. [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. For two decades since September 11, 2001, cooperation between Israel and the United States was defined by the global war on terror. Fax: 202-223-5364. "Groundbreaking of Guangdong Technion Israel Institute of Technology in China," Technion Institute of Technology (December 17, 2015). Please use the following structure: example@domain.com, Send me The Times of Israel Daily Edition. Efron, Shira, Karen Schwindt, and Emily Haskel, Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and the United States. Brig. On April 9, 2015, the establishment of the Guangdong Technion was approved by the Ministry of Education of China. There are similar concerns about Chinese investmentin Israel. Further, US President Joe Biden and Israeli Prime Minister Yair Lapid have introduced a new channel for "high-level dialogue" on the relationship between new technologies and security interests. And educational and technological entrepreneurship initiatives that are the basis for the future. 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. 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. February 1, 2023 00:00. [35][41][42] With the intrinsic affinity that the Chinese people feel for the Jews, relations between the two communities have been mutually close, harmonious and friendly, due to shared common cultural similarities between the two peoples resulted Jews enjoying equal rights and coexisting peacefully alongside the mainstream Han Chinese populace with instances of Jews assimilating into the Han Chinese community through intermarriage. 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. [104] The following month, the Chinese and Israeli governments signed a memorandum of understanding regarding the joint construction of a 180-km (112-mile) railway linking the Israeli city of Eilat with the Negev Desert's Zin Valley, Beersheba, and Tel Aviv. Israel's January . Is that so? The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. The G2G (Government to Government) mechanism was established and five task forces were set up in high tech, environmental protection, energy, agriculture and financing. [36] China including Hong Kong is Israel's second top export destination after the United States and has been the top market for Israeli exports in East Asia. One-third of the world's cybersecurity unicorns are in Israel. 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. Chinese investment in . C.V. Starr & Co. 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. 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. 1624, July 26, 2022. IAI Lavi and UAV technology seems to have been sold to China. 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. [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. 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. China seeks Israel's advanced technology and values Israel's location as part of the Belt and Road Initiative. On this Wikipedia the language links are at the top of the page across from the article title. 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. [33], Some say the Chinese have developed a favorable view of Jews, admiring them for their contributions to humanity, their ability to survive and the sharing of Chinese values such as family, frugality, hard work, and education, and being products of ancient civilizations. Nevertheless, the new committee failed to address America's other core concern: that advanced Israeli technology might somehow find its way into China's civil . Israeli technology, global . [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. [67] In 1992, The Washington Times alleged that exported American Patriot missiles and Israel's indigenous Lavi jet aircraft technology had been shared with China, although official U.S. investigations did not substantiate these charges. 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. 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. In a recent landmark judgment, a court in the United States found a Chinese intelligence official, Yanjun Xu, guilty of stealing secret jet engine technology from General Electric aviation. However now as Prime Minister, Bennet finds himself in a pickle. [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. Reports last December . 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. 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. China hopes to control Israeli infrastructure, like it will control Iranian infrastructure while using Israel as a fertile ground to source technology, either by buying it or by stealing it. Academic and Higher Education Webinars, C.V. Starr & Co. By pausing the F35 deal, the UAE has, for now, bought itself time in order to keep a balance in between the US and China. In light of Washingtons limitations and threats, the Netanyahu governments chose to proceed gingerly and avoid trouble by employing moderate measures to assuage US anxiety somewhat, while continuing to advance ties with China, except in security, defense, and other sensitive areas. Dec. 28, 1994 12 AM PT. The largest threat to Israel is from Chinas technological espionage program. 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 spokesperson for the Chinese Foreign Ministry stated that "the Palestinian government is legally elected by the people there and it should be respected. The U.S. has often cited Chinas alleged theft in the mid-2000s of data related to the F-35, the stealth fighter aircraft, as a prime example of this objective. Washington D.C. 20036 The Pardee RAND Graduate School (PardeeRAND.edu) is home to the only Ph.D. and M.Phil. Dense economic ties must be balanced against Israel's deeper and far more important ties with the US. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. [79], China is one of Israel's closest economic allies in East Asia where both countries have placed considerable importance on maintaining a strategic and supportive economic relationship. 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. [12] Israel and China began extensive military cooperation as early as the 1980s, even though no formal diplomatic relations existed. China has not even spared its strategic partners from such commercial espionage. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. Defense contracts played a leading role here but were also responsible for the . 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. 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 . [15][90][91] Throughout Israel's early economic history, many Israeli startup companies were acquired by major U.S. and Western European corporations. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. [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. Interestingly, these programs also encouraged its members to lie on grant applications to U.S. grant-making agencies, establish shadow labs in China working on research identical to their U.S. counterparts, and, in some cases, transfer U.S. scientists intellectual capital.. Reference to these stated principles highlights the shared values of the Israeli-American partnership, which counter those of authoritarian regimes, primarily China and Russia. now's the time to act. A key tool utilized by China to steal military and industrial secrets is through traditional human intelligence operations that seek to recruit foreign citizens to spy on their countries. WASHINGTON . Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. David Shamah, "Israel-China trade to flourish under new customs deal," Times of Israel, (May 27, 2015) . Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. [60] Following the event, however, such services were discontinued and the site is now only available during the High Holy Days. Advertisement. The use of military sales as a means of achieving foreign-policy goals was neither new nor unprecedented in Israeli foreign policy to promote its interests. [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. This website is using a security service to protect itself from online attacks. 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. The Sino-Israeli relationship is particularly complex. 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. . [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. No further sales of military technology between China and Israel havebeen reported since. This article was originally published on the INSS website. Israeli officials have beenespecially vocal about the risks posed by military technology trade with China, noting that Chinese weapons sold to Tehran have in the past been transferred to Hamas and Hezbollah. click the link in that email to complete your registration. [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. Israel had more companies listed in 2012 on the NASDAQ stock exchange than any country outside the United States, save China. Enhanced coordination between Israels commercial and security technology sectors on dual-use technology transfers can help sustain this delicate balance. He discussed the importance of the nuclear agreement with Iran and the importance of the continued peace talks. "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. [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. [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. Subscribe to the weekly Policy Currents newsletter to receive updates on the issues that matter most. China sought this ban out of concern for the Chinese workers safety in areas beyond the Green Line, which marks Israel's pre-1967 borders. [7] China is Israel's third largest trading partner globally and largest trading partner in East Asia. 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. Israel's arms sales to China. Israeli agriculture trade fairs such as Agrivest and AgriTech have witnessed large Chinese delegations and greater participation from Chinese state-owned enterprises and private companies as Chinese's growing middle class and increasing consumer demand as well as increased pressure on agricultural land has prompted the East Asian giant to increasingly look at Israeli agriculture technology to boost crop yields and dairy production. 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 . Over the past decade, Israeli policy focused on seizing the economic opportunity in its relations with China, and identified the main risks stemming from US disapproval. If Israeli systems are hacked, both Israel and its trade partners could be compromised. The suit asserted that in 2003 the bank's New York branch wired millions of dollars to Hamas from its leadership in Syria and Iran. U.S. officials think Chinese access to cutting-edge technologies . [80][113] In the first half of 2015, China invested more than $2 billion compared to just $300 million for all of 2014. The action you just performed triggered the security solution. World Israel China. Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. 00:00. As China reportedly applies its toolkit . 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