Daily Times

In very introduction of his book, China-Pakistan Axis, author Andrew Small mentioned that when a US delegate once confronted a Chinese delegate about Beijing’s uncompromising support for Pakistan, the Chinese General Xiong Guangkai reportedly responded with a heavily-loaded sarcastic remark: “Pakistan is our Israel”. Andrew S characterises this remark as part explanation, part sarcastic jibe, delivered by (China’s) military intelligence chief. By judging China’s unrelenting support for some of its close neighbouring allies, like Pakistan, Nepal, Iran recently than it can be deduced easily that its protective arm around these countries is no different from the US and western political embrace of Israel – right or wrong.

But China Pakistan nexus is not the actual point to ponder here in this article rather this article is focusing on China and actual Israel relations as year 2021 marks the completion of three decades of China-Israel diplomatic ties since the normalization of relation from 1991 onwards.

Exactly a year ago on May 13th, 2020, at the height of the COVID-19 crisis, the then US Secretary of State Mike Pompeo made a rare trip to Jerusalem. He reportedly discussed with Israeli leaders the issues regarding Iran, the West Bank, and the pandemic. Yet such discussions could have been conducted over the phone or with much of global diplomacy relegated to video conferences these days due to the coronavirus pandemic, the timing of Pompeo’s decision to traverse the Atlantic raised more than a few eyebrows. One wonders about the real purpose of this unusual trip. Israeli media disclosed that the main reason for Pompeo’s visit at this critical moment was to warn Israel against extending economic cooperation with China.

After the former US president Donald Trump administration-imposed investment restrictions, China has increased commercial activities in other developed countries, many of which are U.S. allies, often as part of its ambitious Belt and Road Initiative (BRI). Though still a large developing nation, China’s “going global” strategy has turned itself into a major force in the international political economy and its investment in the West has a significant impact on recipient countries. Previously, China’s outbound investments concentrated in the developing world. Since 2005, it has expanded investments to the developed world, with sizable mergers and acquisitions (M&A) in all major western economies.

When visiting Shanghai in May 2013, Israeli PM Netanyahu hailed the city as a ‘haven’ for Jewish people fleeing Europe in the 1930s and 1940s. In 2015, seventy years after the end of WWII, Israel released the ‘Thank you Shanghai’ documentary in which Netanyahu said Israel was ‘eternally grateful’ to China

As part of its “going global” strategy, China has expanded investment in various sectors of the Israeli economy in recent decade. Its investment in key Israeli infrastructure, such as a new port in Haifa for 25 years, has alarmed the US and created tensions between the US and Israel.

The special ties between the Jews and the Chinese in the contemporary period were formed during World War II when roughly 25,000 European Jews sought shelter in China. When WWII broke out in 1939, more European Jews had taken refuge in Shanghai than in any other city. At the end of the Pacific War in 1945, the Jewish refugees left Shanghai. However, they always looked upon Shanghai as their second home, calling the city their “Noah’s Ark.” When visiting Shanghai in May 2013, Israeli PM Netanyahu hailed the city as a “haven” for Jewish people fleeing Europe in the 1930s and 1940s. In 2015, seventy years after the end of WWII, Israel released a documentary named “Thank you Shanghai,” in which Netanyahu said Israel was “eternally grateful” to China.

Israel was the first country in the Middle East and one of the first non-communist countries to recognize the People’s Republic of China (PRC) in 1950. Due to Chinese participation in the Korean War and US pressure, diplomatic relations between the PRC and Israel were postponed. Trade between China and Israel started in the 1970s, and representative offices were established in Beijing and Tel Aviv respectively in 1990. Bilateral relations have boomed since diplomatic ties were established in 1992. Despite setbacks in the relationship in 2000 and 2005 respectively, when Israel, under US pressures, canceled a scheduled sale of the Phalcon early-warning radar system and upgrading of Harpy drones for China, Israel-China commercial, political, and cultural ties have continued to grow. Trade volume jumped from US$51.5 million in 1992 to US$15.3 billion in 2018. Cooperation between the two countries covers a wide range of areas including trade, agriculture, science and technology, infrastructure, tourism, etc.

The Israel case represents a different type of economics-security nexus in that the economic and security challenges are from various sources. Specifically, the US remains Israel’s most critical security partner, and China has quickly emerged as Israel’s second-largest trading partner with growing investments in crucial sectors of the Israeli economy.

Chinese companies have a reputation for competitive pricing on infrastructure projects and finishing on time, which makes their bids highly attractive on the global market. Chinese firms have made significant inroads in Israel, such as the 2011 purchase of sixty percent controlling interest in Makhteshim-Agan, one of the world’s largest pesticide production and distribution companies, by ChemChina for US$2.4 billion, and the 2014 takeover of Tnuva, Israel’s largest producer of dairy products, by China’s Bright Food for US$2.5 billion with a controlling stake.

Chinese companies have been involved in major transportation and infrastructure projects in Israel. For example, the state-owned China Civil Engineering Construction Corporation Ltd. (CCECC) built the Carmel Tunnels in Haifa from 2007 to 2010. CCECC was also contracted to dig tunnels for the underground sections of the light rail of the Tel Aviv metropolitan area

(To be continued).

The writer can be reached at saudzafar5@gmail.com