Eurasia Press & News
This year marks the 33rd anniversary of the establishment of diplomatic relations between China and Israel. Amid the current turbulence in the Middle East and the severe geopolitical security challenges facing Israel, a reassessment of the relations between the two nations carries particular significance. A key issue at present lies in the apparent contradictions and misalignments between China’s relationship with Iran and its ties with Israel, especially within the broader context of global geopolitical tensions. From China’s perspective, achieving a balance between these competing interests presents a considerable challenge.
A better strategic policy for China would be to approach its relations with both Iran and Israel with a sense of pragmatism and long-term perspective that transcends the constraints of immediate conflicts. By focusing on the broader trajectory of its bilateral relations and considering the global geopolitical landscape, China can manage its ties with both countries in a balanced manner, thereby avoiding being forced into passive alignment and instead adopting a proactive and preventive diplomatic stance.
The relationship between Israel and China has deep and longstanding roots. With its reputation for innovation and entrepreneurship, along with its strong foundation in high-tech industries, Israel has become a vital node in the global innovation ecosystem. Despite the geographical distance, the two countries exhibit a rare and strategic complementarity in terms of resource endowments, industrial structures, and stages of development. As a result, their cooperation spans a wide range of sectors and has made notable contributions to China’s broader modernization efforts.
According to the 2024 edition of the Country Guide for Foreign Investment and Cooperation published by China’s Ministry of Commerce, bilateral trade between China and Israel reached USD 23.38 billion in 2023. China has firmly maintained its position as Israel’s largest trading partner in Asia and its second-largest globally. A particularly symbolic figure is that, in the first half of 2023, Chinese-brand new energy vehicles (NEVs) accounted for 35,000 units sold in the Israeli market, capturing nearly 70% of the country’s EV market for that period. This not only underscores the substantial scale of bilateral economic and trade relations, but also reflects a growing trend of cooperation moving rapidly into high value-added and technology-intensive industries.
The specifics can be examined from ten aspects.
First, in the defense industry, there is both a historical foundation rooted in long-standing ties between Israel and China, as well as a steady emergence of new highlights. In the 1990s, China imported the Harpy anti-radiation drone from Israel and, through technology absorption and integration, developed the JWS-01 series, laying the groundwork for ongoing technological exchange between the two countries in drone reconnaissance and strike capabilities. Although cooperation in radar and electronic warfare systems faced setbacks due to third-party intervention in the Phalcon early warning aircraft deal, the incident revealed the extreme sensitivity of high-tech military trade in international politics. It also contributed to both countries’ deeper understanding of risk assessment and management strategies in handling highly sensitive collaborations. In the area of missile technology, China’s HJ-series anti-tank missiles and PL-series air-to-air missiles have drawn on design concepts from Israeli systems such as the Spike, Python, and Derby. Furthermore, the complementarity between the two sides in active protection systems and intelligence-communication technologies reflects a pragmatic path of technological integration.
Second, cooperation in the agricultural sector has been fruitful and is continuing to deepen. Israeli technologies such as drip irrigation and integrated water-fertilizer systems have been widely adopted in arid regions like Xinjiang and Ningxia, significantly increasing agricultural yields while conserving water resources and offering new approaches to ecological restoration. At the same time, intelligent greenhouses and high-tech agricultural demonstration farms in provinces such as Shandong, Jiangsu, and cities like Beijing and Shanghai are using advanced environmental control systems to support the production of premium fruits and vegetables. In the area of seeds and breeding, molecular breeding and hybridization technologies from Israel have been introduced at key agricultural bases like Jiuquan in Gansu and the Nanfan base in Hainan, resulting in improved crop resilience and higher yields. Additionally, desert agriculture and saline-alkali soil improvement projects are being piloted in areas such as Alxa in Inner Mongolia and Dongying in Shandong, where drought- and salt-tolerant crop varieties are beginning to show promising results. Moreover, Changzhou’s Agricultural Science and Technology Park is trialing agricultural big data and smart farm management systems to support more precise decision-making. Intelligent monitoring systems for the dairy and livestock industries are also gradually being implemented in large-scale cattle and poultry farms.
Third, in the fields of scientific innovation and high-tech industries, China and Israel have developed a multi-tiered and multi-channel model of collaborative growth. Leading Chinese universities such as Tsinghua University and Shanghai Jiao Tong University are partnering with institutions like the Technion – Israel Institute of Technology and the Weizmann Institute of Science on cutting-edge research areas including artificial intelligence, biotechnology, and nanomaterials. The China-Israel Changzhou Innovation Park, a national-level platform for innovation cooperation, has already attracted over 100 Israeli startups, covering sectors such as intelligent manufacturing, health technology, and green chemicals. International venture capital firms, including Sequoia Capital and Alibaba, are steadily increasing their investment in Israeli high-tech projects while also promoting localized incubation efforts. Innovation incubators established in cities like Shenzhen and Shanghai are helping Chinese and Israeli startup teams connect on technology, expand into markets, and share resources in building a robust foundation for long-term innovation synergy.
Fourth, in the fields of information technology and the digital economy, China and Israel are deepening cooperation in areas such as cybersecurity, cloud computing, and chip design. Israeli cybersecurity firms are working closely with Chinese companies like Qi An Xin and 360 in joint defense exercises and technical research, enhancing both sides’ capabilities to counter digital threats. Chinese tech giants such as Baidu and SenseTime have partnered with several Israeli AI startups to co-develop cutting-edge technologies in image recognition and natural language processing. Alibaba has established R&D centers for cloud computing and the Internet of Things (IoT) in Israel, driving practical collaboration between the two countries in areas such as the industrial internet and smart cities. At the same time, Chinese capital has been increasingly invested in or acquiring Israeli chip design firms, offering China new avenues to address its weaknesses in semiconductor design and manufacturing, while promoting coordinated upgrades across the entire industry value chain.
Fifth, in the fields of healthcare and biotechnology, cooperation between China and Israel is evolving into a diversified development pattern, ranging from pharmaceutical research and development to smart healthcare. Fosun Pharma has made breakthroughs in joint R&D and clinical trials with several Israeli biopharmaceutical companies, focusing on oncology and rare disease medications. Chinese medical imaging companies such as Mindray and United Imaging Healthcare have introduced advanced diagnostic algorithms and hardware designs from Israel. At the same time, internet companies like Tencent and Alibaba Health have made strategic investments in Israeli telemedicine platforms, which has driven innovation in China’s internet healthcare sector, particularly in chronic disease management and primary care services.
Sixth, the cooperation chain in energy and environmental protection technologies continues to expand. Israeli solar photovoltaic technology has been collaborating with Chinese photovoltaic companies to improve module efficiency and develop energy storage solutions. Meanwhile, Chinese enterprises are accelerating their investment in Israeli geothermal and energy storage projects, further advancing the development of new energy sources. Israeli company IDE’s membrane technology for seawater desalination has been widely introduced in coastal provinces such as Hebei and Shandong, helping to address water scarcity issues. Additionally, wastewater reuse and smart emission monitoring systems are being piloted in various locations, offering replicable solutions for ecological and environmental governance.
Seventh, the scale of cooperation projects in infrastructure and transportation continues to expand. Shanghai International Port Group’s investment in Haifa Port and its modernization efforts have enhanced the regional shipping hub’s functionality. BYD, in collaboration with Israeli local companies, has developed electric buses and supporting charging networks, injecting new momentum into the green transportation transformation of cities like Tel Aviv. Additionally, China Railway Construction’s involvement in the Tel Aviv light rail project has not only brought advanced construction expertise to the city’s urban rail transit system but also facilitated the coordinated upgrading of the local industrial chain.
Eighth, financial and investment cooperation is expanding across multiple levels and channels. The Bank of Israel has included the Chinese yuan in its foreign exchange reserves and is encouraging enterprises to use the yuan for bilateral trade settlements. Chinese sovereign investment institutions, such as China Investment Corporation (CIC), have invested in Israeli venture capital funds, providing long-term capital support to local startups. Moreover, several Israeli banks have established offices in China to offer cross-border clearing and investment consulting services, promoting deeper integration between financial services and capital markets.
Ninth, there is an increasingly rich exchange of culture and educational cooperation. Projects such as the Guangdong Technion-Israel Institute of Technology and other cooperative education programs are training a large number of engineering and technical talents. The student exchange programs between Peking University, Fudan University, and the Hebrew University of Israel provide a cross-cultural research platform for young scholars. Cultural exchange activities, such as the China-Israel Cultural Festival, Film Week, and Art Tours, are held alternately in major cities of both countries, enhancing the public’s mutual understanding of history and society.
Tenth, emergency management and public safety demonstrate the complementary advantages of China and Israel in modern risk governance. China has brought in Israel’s fire warning and intelligent evacuation systems for fire safety in high-rise buildings and key facilities. Israel’s earthquake early warning technology is being piloted in China’s earthquake-prone areas, providing several seconds of warning in advance to reduce casualties and property damage. Both sides have also held specialized discussions on urban emergency response, post-disaster reconstruction, and other areas to promote the modernization of public safety systems
Researchers at ANBOUND believe that, from a macro perspective, the close cooperation between China and Israel faces complex challenges under the Israel-Hamas conflict, but there is still a certain foundation of resilience. Although the escalation of the conflict has raised current geopolitical risks and intensified pressures on cooperation, especially in sensitive technologies and security fields, the fundamental complementary nature of China-Israel relations remains unchanged. Israel urgently needs high-tech exports and diversified diplomatic support, while China values Israel’s innovation ecosystem and technology transfer capabilities.
Currently, cooperation between the two countries in low-sensitivity areas such as civilian technologies, agriculture, and healthcare still has practical momentum and continuity. However, projects related to defense and those that could be interpreted as affecting the regional balance of power are inevitably required to undergo greater adjustments. Both China and Israel are cautiously assessing the risks and strategic costs of their cooperation, seeking to maintain a fragile balance between necessary economic interests and geopolitical security under the shadow of the conflict. This model of limited maintenance and strategic caution may be difficult to change in the short term, reflecting the complex realities faced by middle powers and global powers when cooperating in turbulent regions.
Even so, China-Israel cooperation should continue to advance on the foundation of its previous solid groundwork, while also improving the emotional expressions that affect China-Israel relations domestically. The relationship between the two nations can only establish resilience and highlight constructive factors in the current chaotic situation in the Middle East if it is built on deep complementarity and long-term value. In fact, after long-term assessments of the Middle East situation, it is wise for China to strengthen its relationship with Israel, as Israel has already become a decisive power in the region. This is the major development that has become irreversible.
Final analysis conclusion
The key to comprehensive China-Israel cooperation lies in the deep complementarity between the two countries across various fields. Through coordinated development in areas such as technology, industry, and finance, China and Israel have established a close-knit innovation chain. Although the situation in the Middle East is complex, Israel has already attained a position of regional hegemony. In this context, China should leverage shared interests and long-term strategic vision to plan ahead as much as possible, demonstrating forward-looking diplomatic wisdom and further consolidating the bilateral relations.
