According to the Israeli Central Bureau of Statistics on July 18, Israel’s imports from China totaled 7.07 billion US dollars from January to July, up from 5.18 billion US dollars in the same period in 2020; exports to China were 2.69 billion US dollars from January to July 2020 Increased to 2.87 billion US dollars. If this growth momentum continues in 2021, despite quarantine restrictions, it may significantly exceed the 2020 level.

All this prompted the two sides to reach a free trade agreement as soon as possible. At the same time, most observers agree that the issue is not whether Israel and China will sign a free trade agreement, but when. Both parties are expected to sign in 2021. Since 2016, the two sides have been working to reach a trade agreement that eliminates tariffs on most items in the field of goods and services.

At the same time, experts believe that most attempts by the United States to influence the development of economic and investment relations between Israel and China cannot hinder the China-Israel trade agreement.

CIA Director William Burns told Israeli Prime Minister Naftali Bennett that the United States is concerned about Chinese investment in Israel, especially in the technology sector, as well as the participation of Chinese companies in major investment projects. The US news website Axios pointed out that this is the highest level of such issues raised by the Biden administration. The website recalled that the issue of China-Israel investment cooperation is also where the differences between the Trump and Netanyahu administrations lie.

Dmitry Mariasis, director of the Israel and Jewish Communities Department of the Institute of Oriental Studies of the Russian Academy of Sciences, said in an interview that Israel will reject the United States’ attempts to interfere in its cooperation with China: “As long as the US-China relations are in the current state of development, Israel will be regularly pressured by the United States. Israel will only make some superficial changes in its relations with China. For example, investments that affect the interests of the United States may be restricted to some extent. Yes, there will be negotiations. There will also be pressure, but Israel usually demonstrates its independence in these situations."

For example, Israel withstood American pressure on the Crimea issue and did not impose sanctions on Russia. Israel can withstand pressure from countries that are close to it, like the United States. The same is true for China. Israelis will communicate with Americans and respond to their requests, but Israel needs Chinese investment. This is an internal affair, Israel thinks so. The US pressure attempts will actually be politely obliterated. I don’t think Israel’s policy in this regard will change.

Experts also used another example to confirm his prediction: "Israel has almost no state-owned enterprises, only 2-3 are left. The state will not manipulate private companies to handle Chinese investment. If some companies touch part of the interests of the United States, or in the United States When conducting business, if similar problems arise, then they will make a decision on Chinese investment. If there are no such problems, they will not oppose Chinese investment."

Chen Guangmeng: "The China-Israel-U.S. relationship is actually a set of asymmetrical trilateral relations. For Israel, U.S.-Israel relations are far more important than China-Israel relations. This is an objective basis for observing Israeli diplomatic behavior. But this is not to say that China is not at all important in Israel’s diplomacy. As the world’s second largest economy and a rising world power, China’s importance to Israel is increasing. This is a bilateral relationship between China and Israel. The continuous growth of trade volume and the continuous expansion of cooperation in various fields between the two countries can be seen.

However, as Trump came to power in 2017, the global competition between China and the United States intensified, and Israel was forced to become involved. How to achieve a certain balance between the two major powers of China and the United States so as not to offend the United States while at the same time developing relations with China is a difficult problem for Israeli policymakers. When it comes to China's investment in Israel, this is actually not a new issue. In fact, in recent years, the United States has been putting pressure on the Israeli government on the grounds of security and intelligence concerns. China's investment in Israel's infrastructure is basically just stock, and most of it is the implementation of previously signed agreements. "

It is expected that the Israeli National Security Council, which is responsible for coordinating China policy, and the White House will conduct additional consultations on Chinese investment in the coming months. Observers believe that this issue will most likely be raised during the Israeli Prime Minister’s visit to the United States at the end of August. Editor/Xu Shengpeng