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Israel and the China Dilemma: She will be forced to choose between its most trusted ally – the US, and a great business opportunity with China.
Frontpage Mag ^ | 03/19/2021 | Joseph Puder

Posted on 03/19/2021 12:24:40 PM PDT by SeekAndFind

In the late spring of 2020, US Secretary of State Mike Pompeo visited Israel. His visit came after Israel formed a coalition government between Prime Minister Benjamin Netanyahu’s Likud and Benny Gantz’s Blue and White Party. Pompeo, while endorsing Israel’s rights to Judea and Samaria, had a blunt message for his Israeli friends: “Beware of China.” Pompeo added, “We don’t want the Chinese Communist Party to have access to Israeli infrastructure, Israeli communication networks, and the kind of things that endanger the Israeli people and the ability of the US to cooperate with Israel.”

Pompeo’s gently expressed admonition to Israeli officials was not new. In the 1990’s, the US pressed Israel to cancel a deal to sell the Phalcon Intelligence surveillance aircraft to China. Israel backed down, and was compelled to return the $250 million to Beijing that the Chinese had invested in the project.

For Israel, the situation was terribly uncomfortable. It was forced to choose between its closest and most trusted ally – the US, and a great business opportunity with China. There was little hesitation however, on Israel’s part. The US will always be Israel’s top priority.

In fact, almost immediately following Pompeo’s warning, the Israeli government decided to pass on a bid by the Israeli affiliate of the Hong Kong conglomerate CK Hutchinson, to build a $1.5 billion water desalination plant in southern Israel. The contract was awarded instead to a local Israeli company named IDE Technologies.

American culture is so pervasive in Israel that many Israelis might quip that Israel is the 51st state of the United States. Every American fad and fashion is almost immediately adopted in Israel. Thankfully for Israel, the US and Israeli interests in the region, although not identical, they come as close as two countries can be. Israel moreover, has voted with the US more often than practically any other country.

While the US views China as a rival, and by some in the US establishment as a potential enemy, Israel sees China as an opportunity. China is now the second largest economy after the US. Yet, insofar as Israel’s security is concerned, China is also a primary supplier of arms, technology, and probably intelligence to Iran, Israel’s major enemy.

The US considers China as a threat in various ways: strategic, commercial, and technological. Today, China is no longer confined to its own region. It operates in Africa, throughout Asia, in Ecuador (Latin America), and is seeking to expand its commercial deals, political influence, and national interests globally, including the Middle East. China has upgraded its military, and has laid claim to the Paracel and Spratly Islands in the South China Sea, which are also claimed by Brunei, Malaysia, Philippines, Taiwan, and Vietnam. China took over Hong Kong and is suppressing democracy there. Taiwan is under constant threat from Beijing.

Commercially, China’s e-commerce giant company, Alibaba, outstrips America’s Amazon in worldwide sales. With its Belt and Road ventures, China is penetrating into global markets by extending loans, particularly to poor countries that often lag in repayments. When this occurs, China takes over the project by leasing it for 99 years. That is how China is obtaining strategic outposts, and commercial assets. China is also stealing technology (intellectual property) everywhere, particularly from the US. Israel’s high-tech is also an important target for Beijing.

Israel’s Prime Minister Benjamin Netanyahu’s state visit to China in 2013 opened the door to more extensive commerce between the two countries. During that time, Hong Kong billionaire Li Ka-Shing contributed $130 million to open a branch of Israel’s highly acclaimed technological institute – Technion (Haifa), in Shantou, the Chinese city of over 5 million people, located 230 miles northeast of Hong Kong.

Currently, four state owned Chinese companies are involved in major infrastructure projects in Israel. They are operating on the following projects: a) the expansion of the Ashdod port; b) partial construction of a new terminal by the Haifa port (the Chinese have operation rights for 25 years); c) construction and operation of the Tel Aviv light rail; d) digging of the Carmel (Haifa area) tunnels.

Haifa and Ashdod are Israel’s main shipping ports on the Mediterranean, where 99% of its trade goes through the sea. The Tel Aviv light rail will be running close to the Kirya - where Israel’s Defense Force (IDF) main headquarters is located. This could expose Israel to a cyber intelligence attack. China would have an opportunity to conduct surveillance, and given China’s close relations with Iran - Israel’s arch enemy, Israel must consider the risks. Furthermore, one of the Chinese companies working on Israel’s infrastructure projects is CCCC Dredging and its subsidiary includes CHEC, which has worked with the Chinese military, and is now partaking in developing the Ashdod port, located next to an IDF naval base.

The chief of Israel’s General Security Service (Shabach) or Shin Bet, Nadav Argaman, warned (January, 2019) that, “Chinese influence in Israel is particularly dangerous in terms of strategic infrastructure and investments in larger companies.” Argaman argued that the Knesset needs to pass legislation to monitor foreign investments in Israel. He added, “There are gaps in Israeli law in regards to its security needs in terms of overseeing foreign investments.”

Israel cannot afford to let a Chinese company operate the port of Haifa. Should Israel be in a war situation with Iran or Hezbollah, it would constitute a disastrous situation for Israel’s security. Additionally, the US warned Israel that should China run the port of Haifa, the US Six Fleet might limit its visits there.

Chinese companies currently control or influence a quarter of Israel’s high tech sector. Huawei, a giant Chinese telecommunications company that has been investigated by the US Congress, is also invested in Israel. The New York Times reported (10/8/2012) that the House Intelligence Committee, after “a yearlong investigation, it had come to the conclusion that the Chinese businesses, Huawei Technologies and ZTE, Inc., were a national security threat because of their attempts to extract sensitive information from American companies, and their loyalties to the Chinese government.” Apparently, all Chinese companies are required to report to the Chinese government…

Israel needs to adopt a more comprehensive policy to address both US sensitivities and its own national security considerations. Australia and Canada have done it. They have tightened their foreign investment oversight regimes. Israel must do likewise. In recent years, Israel has not done anything that looks like defense deals, or something that can be considered of dual use with China. Israel, however, must look ahead and consider that China might become a threat to the region. The Chinese military already has a presence at the mouth of the Red Sea in the Horn of Africa, in Djibouti, and is seeking to have a role in Syria.

Opportunistic commercial deals with China notwithstanding, Israel must consider its security first. The Jewish state needs to devise a clear plan that specifies what can and cannot be sold for strategic reasons. Mike Pompeo’s warning, “Beware of China,” must guide Israeli policymakers.


TOPICS: Business/Economy; Foreign Affairs; Israel; News/Current Events
KEYWORDS: beltandroad; china; coercion; dilemma; huawei; israel; security
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1 posted on 03/19/2021 12:24:40 PM PDT by SeekAndFind
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To: SeekAndFind

With our Left, Israel can’t count on our nation to have its
back. China is up and coming, and wants to win. We don’t
make it clear we do.

Lets face it, Israel is on its own until we can resolve our
issues.


2 posted on 03/19/2021 12:27:15 PM PDT by DoughtyOne (The Republican Party is dead. Long live the Founders Party.)
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To: SeekAndFind

China badly wants the Israeli designed and manufactured drone weapon system that decimated the Armenians armor in their brief war with the Azerbaganis.


3 posted on 03/19/2021 12:28:39 PM PDT by allendale
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To: SeekAndFind

The problem for any US ally is that every four or eight years, the US goes schizophrenic and becomes, in some cases, almost an enemy.

The problem with dealing in China is, they have no rule of law. They simply take whatever they want. Ask the Russians how great it is to deal with China.


4 posted on 03/19/2021 12:28:40 PM PDT by Gen.Blather (Wait! I said that out loud? )
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To: SeekAndFind

Better use a veeeery long spoon to sup with China.


5 posted on 03/19/2021 12:28:55 PM PDT by Seruzawa (TANSTAAFL)
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To: SeekAndFind

Regrettably, Such a choice is not available for Israel. Like it or not, America has come under the control of a hostile regime.


6 posted on 03/19/2021 12:30:59 PM PDT by faithhopecharity ("Politicians are not born, they are excreted." Marcus Tullius Cicero (106 to 43 BCE))
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To: Gen.Blather

[[[The problem for any US ally is that every four or eight years, the US goes schizophrenic and becomes, in some cases, almost an enemy.]]]

We can’t be relied upon or taken seriously with the current woke insanity sweeping the country.


7 posted on 03/19/2021 12:34:00 PM PDT by headstamp 2 (Socialism- Institutionalized Deprivation)
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To: DoughtyOne
"Lets face it, Israel is on its own until we can resolve our issues."

Agreed, but I'm encouraged by growing acceptance of the Arab world regarding Israel. Beside those who have already agreed to the Abraham Accords and now accept Israel as legitimate, there are others considering it. I foresee an Alliance to counter Iran's policies of nuke development and terrorist support. I never thought I'd see the day.

8 posted on 03/19/2021 12:35:58 PM PDT by A Navy Vet (USA Birth Certificate - 1776. Death Certificate - 2021 under Biteme.)
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To: dennisw; Cachelot; Nix 2; veronica; Catspaw; knighthawk; Alouette; Optimist; weikel; Lent; GregB; ..
Middle East and terrorism, occasional political and Jewish issues Ping List. High Volume If you’d like to be on or off, please FR mail me.
9 posted on 03/19/2021 12:38:44 PM PDT by SJackson (A city for sale and doomed to quick destruction, if it should find a buyer, Gaius Sallustius Crispu)
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To: DoughtyOne; SeekAndFind
DoughtyOne :"With our Left, Israel can’t count on our nation to have its back.
China is up and coming, and wants to win. We don’t make it clear we do."

Under the Dims, we have national 'self-sabotage',
instead of national sovereignty, thanks to 'Cloward-Piven'.

10 posted on 03/19/2021 12:39:03 PM PDT by Tilted Irish Kilt
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To: SeekAndFind

No country in their right mind should trust the US, at least for the next 46 months.


11 posted on 03/19/2021 12:39:04 PM PDT by BobL (TheDonald.win is now Patriots.win)
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To: A Navy Vet

Trump and Kushner will never get the recognition they deserve
for changing the Israeli Arab dynamic.

Iran was a great catalyst.

I agree with your take on it.

I don’t think any of us saw the day, and it may be the calm
before the real storm though, globally, not just regionally.


12 posted on 03/19/2021 12:48:57 PM PDT by DoughtyOne (The Republican Party is dead. Long live the Founders Party.)
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To: Tilted Irish Kilt

I agree, sad to say.


13 posted on 03/19/2021 12:49:39 PM PDT by DoughtyOne (The Republican Party is dead. Long live the Founders Party.)
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To: SeekAndFind
There are no "great business opportunities" in China. You are forced to manufacture there, which teaches them how to produce what you sell. And you are forced to export for quite a while before gaining permission to sell in China. All you're doing is training your competition and establishing export markets for your future Chinese competitors.

Our business people are like greedy, stupid sheep talking to Chinese wolves about all the green grass they'll have in China.

14 posted on 03/19/2021 12:50:53 PM PDT by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: DoughtyOne

No, that is not a true statement. Israel is far from alone

The alliance between Israel, Egypt, Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, and Oman is now out in the open.

The US Navy is still operating from a base in Bahrain and in both Gulfs and USAF F22’s are in Saudi Arabia

Iran is stymied


15 posted on 03/19/2021 12:54:29 PM PDT by bert ( (KE. NP. N.C. +12) History: Pelosi was pitiful vindictive California crone)
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To: SeekAndFind

ChiCom bump for later.....


16 posted on 03/19/2021 12:56:38 PM PDT by indthkr
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To: SeekAndFind

https://www.eastasiaforum.org/2021/01/26/drawing-the-curtain-on-china-israel-cooperation/


17 posted on 03/19/2021 12:57:08 PM PDT by sockmonkey (Conservative. Not a Neocon.)
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To: sockmonkey

I think both of these analyses miss the key point which is China’s overwhelming need to develop secure corridors to and through the ME for transport of it’s goods.
Tankers from the ME can’t carry back China’s goods. So China cannot (effectively) send goods to the ME to pay for the oil, and China’s companies cannot expand into the ME without secure transportation lines- and security in general.
No one wondered where Iran got the money to pay for it’s attempt to conquer the ME, or why anyone would provide those funds...

Interestingly China appears to be transferring it’s support for ME development from Iran to Israel.
Or, more likely playing both sides.


18 posted on 03/19/2021 1:17:02 PM PDT by mrsmith (US MEDIA: " Every 'White' cop is a criminal! And all the 'non-white' criminals saints!")
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To: DoughtyOne
Why do you say globally? Who and why would others intervene in a regional war between an Israeili/Arab coalition against Iran. China? Russia? I don't think so. I know they both have their interests in Iran, but they have their own economic and regional problems to deal with, not to mention America is not yet Venezuela. I'm no expert.

IMO, Taiwan is the most endangered under this Administration. I don't believe Biteme will defend her against the CCP, and I would rather not go to war for Taiwan. My previous suggestion is nuke/missle her up and let them have at.

19 posted on 03/19/2021 1:18:30 PM PDT by A Navy Vet (USA Birth Certificate - 1776. Death Certificate - 2021 under Biteme.)
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To: SeekAndFind

We hope principles about genocide put an unanswerable weight on the scales.


20 posted on 03/19/2021 1:20:27 PM PDT by heartwood (Someone has to play devil's advocate other.)
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