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The China-Israel relationship provides both countries with important opportunities

• China's primary objectives in Israel are acquiring advanced technology and utilizing Israel's location for trade connectivity.
• China wants to sustain its relationship with Israel while continuing to enjoy good relations with countries in the Arab and Muslim worlds, particularly Iran.
• Israel seeks to expand its diplomatic and economic ties with the world's fastest growing major economy and diversify its export markets and sources of investments.

The relationship could cause Israel's interests to diverge from those of the United States

• China's engagement with the Israeli tech sector could upset Washington, especially in light of growing trade tensions between the United States and China.

China's construction and operation of key infrastructure projects in Israel raise political and security concerns

• The acquisition of Israeli companies and the knowledge generated through academic cooperation could enable China to gain crucial technologies, with insufficient returns for Israel.
• Chinese installation of and access to cameras, radio, fiber-optics, and cellular networks raise cybersecurity, data privacy, and espionage risks.
• Chinese involvement in commercial ports adjacent to Israeli naval bases raises security concerns for Israel and possibly the United States.

Since the early 2000s, relations between China and Israel have expanded rapidly in numerous areas, including diplomacy, trade, investment, construction, educational partnerships, scientific cooperation, and tourism. China's primary interests in Israel are advanced technology and Israel's location as part of the Belt and Road Initiative. Israel seeks to expand its diplomatic and economic ties with the world's fastest growing major economy and diversify its export markets and investments from the United States and Europe. Although evolving relations with China present Israel with important opportunities, they also present a variety of challenges. In this report, RAND researchers discuss the growing relationship and the challenges it poses for Israel and for Israel's most important ally, the United States. The report concludes with two recommendations for Israel and one for the United States. Israel would benefit by (1) gaining a better understanding of the opportunities and challenges deeper ties with China could bring, including developing better knowledge of China; and (2) using the experience of other countries to develop policies toward China that account for these challenges and opportunities. The United States, in turn, would benefit by working more closely with Israel to deconflict, shape, and advance a mutually agreed-upon China-related agenda and by helping Israel build its knowledge base and understanding of China.

• Chapter One

  Introduction

• Chapter Two

  History of Israel-China Relations

• Chapter Three

  Chinese Perceptions of and Interests in Israel

• Chapter Four

  Measuring Israel-China Relations

• Chapter Five

  Chinese Investment and Construction in Israel

• Chapter Six

  Policy Implications of Growing Israeli-Chinese Ties

• Appendix A

  Data Collection and Methods

• Appendix B

  Differences in Trade Data by Source