Reading the news, one gets the sense that Israel is trapped between the world’s two largest powers, facing a zero-sum decision in its relationships with the two.
A recent opinion piece in The Washington Post called Israel a “carefree observer” in the competition between the US and China, while an article in Al Jazeera quoted an Israel specialist at the RAND Corporation as saying that Israel “underestimates the risks to its own security” by allowing Chinese companies to build infrastructure projects in its territory. An op-ed published in Haaretz went so far as accusing Israel of “refusing to acknowledge” the American perception of China as a “multidimensional strategic threat, the victory over which is a historical, nearly ‘religious’ task.”
The Israeli and international press have been awash with inaccurate reports about how American pressure led to a major contract for constructing a desalination plant being awarded to Israel’s IDE Technologies over China’s Hutchinson Water, when in reality, the Israeli firm won a public tender by making a better offer. And of course, there has been no end to the alarmist articles on how Israel is angering the US by allowing China’s Shanghai International Ports Group to operate the new terminal at Haifa’s seaport in proximity to facilities where the US Sixth Fleet periodically docks.
What the media fails to appreciate is that Israel need not make a binary choice between China and the US, as if it were a medieval princess choosing between two suitors. Israel is not “sitting on the fence,” as one retired Israeli officer claimed in the aforementioned Haaretz op-ed, because the mere notion of a “fence” is a red herring.
The Israel-China relationship certainly has its limitations. The cancellation of two major Israeli arms deals with China in the 2000s due to American pressure helped set these boundaries, which have been respected ever since: Israel could develop economic ties with Beijing, but it was not to sell any weapons or dual-use technologies.
Irrespective of American sensibilities, the Sino-Israeli relationship has been primarily confined to the economic realm. Both countries harbor deep-rooted differences that make closer partnership difficult. China has a long history of voting against Israel at the United Nations and has traditionally supported Israel’s foes as part of the non-aligned movement. More recently, China secured a comprehensive partnership with Iran, Israel’s Middle Eastern nemesis, and sharply criticized Israel at the UN Human Rights Committee during the 11-day war with Hamas this past May.
While many of these policies are designed to appease Muslim states from which China imports much of its energy and target the US through its Middle Eastern ally, they also make the notion of Israel “picking sides” between the US and China somewhat absurd. Israel made its choice decades ago, and its loyalty to its leading diplomatic partner, defense patron and most significant economic partner is beyond question.
This does not mean, however, that Israel must pass up on the opportunities China presents. To understand how Israel can productively engage with China in this strategic environment, we can look to China’s near abroad.Each and every country in Southeast Asia harbors legitimate security concerns regarding China - several even have active border disputes with it – yet they all manage to balance robust economic ties with Beijing while maintaining strategic partnerships with the United States. Indeed the Association of Southeast Asian Nations (ASEAN) member states such as Vietnam and Indonesia have become case studies for successful balancing acts between the US and China. Can Israel not follow the same path?
China and Israel understand where their relationship is mutually beneficial. China wants Israel as a hub for innovation in fields such as food, healthcare and green technologies necessary for China’s continued development. Meanwhile, Israel wants China as a source of infrastructure for its rapidly growing population, predicted to more than double by 2065. In this mutually beneficial relationship built upon comparative advantages, neither country relies heavily on the other. Beijing and Jerusalem exercise far less leverage over each other than the world’s two largest economies do.
While China’s leverage over Israel is limited, American concerns over the expanding relationship between the two are not entirely illegitimate. There are certainly choices to be made. But these decisions are more complex, especially since the boundaries between economics and national security have become increasingly blurred. The question of how to strike a balance has perplexed many in the international arena. Israel is no exception.
Jerusalem welcomed Huawei's participation in its solar panel industry, despite warnings from officials in the US Department of Energy. Regulators blocked attempts by Chinese companies to acquire Israeli insurers Phoenix and Clal while welcoming Chinese investment in Israel’s semiconductor industry. Jerusalem established a CFIUS-like foreign investment screening mechanism for critical infrastructure in 2019, but for now, its authority remains limited and primarily exists in an oversight capacity.
Israel is walking a fine line between the world’s largest powers. But this need not be a zero-sum game in which Israel picks one power and neglects the other. Instead of thinking about the two bilateral relationships as an outright binary choice, Israel should continue cultivating economic ties with China without compromising its security interests. In this context, what Israel requires more than anything is a coherent strategy for dealing with Beijing.
Attempting to balance Washington and Beijing without a clear strategy runs the risk of a high-stakes miscalculation which could jeopardize Israel’s interests and further restrict room to maneuver. The publication of such a strategy would send both powers an unambiguous message regarding Israel’s priorities, demonstrating that the binary choice is not one at all.
Dale Aluf is the director of research and strategy at SIGNAL, Sino Israel Global Network & Academic Leadership.
Aaron Schorr is a summer research associate at SIGNAL. He studies Ethics, Politics, and Economics at Yale University.