What China’s New Silk Road Means for Israel?

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Chinese President Xi Jinping’s visit to the Middle East in January, was almost unnoticed in Israel. This is likely because China’s most ambitious leader since Mao Zedong did not include Israel on his visit. But make no mistake, Israel has become a strategic focal point for China, and if it fails to leverage this, it will miss a unique opportunity to not only upgrade and diversify its economy, but to position itself as a critical outpost on China’s New Silk Road. If Israel seizes the current window of opportunity, while being sensitive to America’s regional interests, it may become a critical trading route between East and West.

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So is the new Silk Road model becoming the preferred one around the world when it comes to infrastructure development? Do Israel and other countries find the Chinese investment model more attractive than those of the US, Europe, the World Bank and the IMF? Griffiths said the answer is “yes and no.” “The two do not exclude each other, and they never will,” he said. “China does not have enough money to do everything itself. But foreign governments do find its funds attractive for several reasons: The decision-making is fast, the loans usually cover about 80% of construction costs, and recipients are co-determinants in what gets done. This gives less-scrupulous governments the chance to grandstand for political spin-off today and pay back when long gone. However, there is no evidence that China is worse than other countries in this respect.”

Sino-Israeli Relations: Current Reality and Future Prospects Sino-Israeli Relations: Current Reality... 

More than 60 years' Sino-Israeli relations experience twists and turns. Republic of China government has helped the Jews and in deed supported the establishment of Jewish state. One year after the founding of State of Israel, the People's Republic of China was established, Israel turned to the new regime, but the Korean War and the Bandung Conference made the relationship between Israel and China become cool and eventually break. The ease of Sino-US relations, Israel-Egypt peace talks and Sino-Vietnam border war provide the opportunity for the development of Sino-Israeli relations again, and Hong Kong became the bridgehead of dual military, economic and political cooperation; the two countries established diplomatic relations in 1992 eventually. Due to the repeated Israel-Arab relations, the American pressure on Israeli arms exports to China and China's internal ethnic separatism, China swifts between Israel and Islam-Arab countries with limited success in the involvement in Middle East peace process. In the current global financial crisis, the international community recognizes the important position of China, Israel needs new China policy which fits the era of international system transformation. ① Dr. Aron SHAI is the Rector of Tel Aviv University and the Shoul N. Eisenberg Professor for East Asian Affairs.

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