Israel must partner with US in the great power competition with China
Israel and the United States are nearing an agreement to exclude Chinese technology from the former’s 5G networks – another indication that Jerusalem is heeding Washington’s demand for a tougher stance against Beijing. As US-Sino ties continue to fray, Israel must decisively support Washington’s efforts to face down Beijing. This would serve not only America’s interests, but Israel’s as well.
Amid China’s race to overcome American regional and global
dominance, there have been growing concerns in Washington over Beijing’s access
to Israeli technologies. The involvement of Chinese companies in major
infrastructure projects in Israel – such as the Tel Aviv Light Rail, the Carmel
Tunnels, and the Ashdod and Haifa ports – have also drawn American scrutiny for
potentially handing China surveillance opportunities. For instance, the
decision to tap a Chinese firm to operate the Haifa Port has raised security
concerns for the US Navy, whose Sixth Fleet occasionally docks nearby.
Like others, Israeli companies dealing with China risk
having their intellectual property stolen, and their technology used to bolster
China’s military capabilities. The Pentagon noted in 2019 that China
supplemented its military modernization efforts with “the acquisition of
foreign technologies and know-how,” including through “imports, foreign direct
investment, industrial and cyberespionage, and establishment of foreign R&D
centers.”
Other risks abound. A Chinese company involved in the Tel
Aviv Light Rail project, for instance, is a subsidiary of another that has
business ties with an Iranian firm controlled by the Revolutionary Guards. Such
companies might be pressured by Beijing to divulge information to Tehran, a
regional partner of China’s.
This relationship should concern Israel. Iran describes the
Jewish state as a “cancerous tumor” that will “be uprooted and destroyed,” and
it supports like-minded terrorist groups such as Hezbollah, Hamas and
Palestinian Islamic Jihad.
Iran is now reportedly pursuing a wide-ranging partnership
with China that would invest some $400 billion in the Islamic Republic in
exchange for discounted oil supplies. Projects would include airports, railways
and port facilities – the latter seemingly complementing China’s control of
ports in countries including Pakistan, Greece and Sri Lanka, which have raised
fears over Chinese naval ambitions. Military cooperation would also expand with
joint exercises, weapons development and intelligence sharing.
The partnership could provide a lifeline to Iran amid
renewed American sanctions. For China, it would offer energy security while
advancing its Belt and Road Initiative and strengthening its position in the
Middle East.
It also crystallizes what has been evident for some time:
China is not a friend to Israel.
BEIJING HAS already signaled that it will resume arms sales
to Iran when a United Nations embargo on the country lifts in October, and it
opposed US efforts to secure an extension. Israel must ensure its sensitive
technologies and infrastructure remain inaccessible to a country so willing to
empower its greatest enemy.
However, the potential impact of such a move should not be
overstated. While Chinese investment in Israel’s technology sector has grown in
recent years, it remains relatively low. Between 2016 and May 2020, the sector
attracted $33.15b. in total investments, according to data shared by Zeev
Holtzman, chairman of the Tel Aviv-based IVC Research Center. Just $1.43b. of
those investments – about 4% – were Chinese.
Normalization accords between Israel and Arab countries
represent a possible alternative funding stream. The Economy Ministry has
already predicted that United Arab Emirates’ investments in Israel could total
up to $350 million annually, with the cyber, medical, communications and
financial technology sectors the big winners.
Alternatives for Chinese involvement in sensitive
infrastructure projects, likewise, also exist. This May, Israel picked a local
company over a Chinese competitor to build a major desalinization plant,
reportedly following US pressure. With the ongoing economic tumult caused by
the coronavirus pandemic, there is even greater cause to channel work to
domestic firms.
It will be important for Israel, with American backing, to
strategically reduce its ties with China. Jerusalem and Washington should
capitalize on the strengths of Israel’s hi-tech ecosystem – including its
educated workforce, strong research institutions and varied investment sources
– to expand and deepen collaboration on joint priorities. These include
artificial intelligence, cybersecurity and the Internet of things, among others
– technologies on which hundreds of Israeli start-ups are already focused. A
US-Israel national security innovation fund could incentivize partnerships that
develop and harness such technologies in the coming years.
The World Economic Forum described Israel in 2019 as “an
innovation hub” where “entrepreneurial culture is the strongest” and
“innovative companies grow the fastest.” The Jewish state is a valuable partner
to the US in the great power competition with China.
For Israel, continued American global dominance is critical
to future security. The key for both allies lies, as ever, in increased
cooperation.
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