Israeli Media Examines Trade and Tech Relations with China

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Amanda Chen and Leonardo Bruni

We present again an excerpt from our forthcoming report on Israeli media coverage of China in 2024. This section showcases an overview of Israeli commentators’ perspectives on trade and technological relations with China.

As noted in the excerpt published in last week’s ChinaMed Observer, Israeli public and expert opinion toward China remained overwhelmingly negative in 2024, largely due to the prevailing perception that Beijing tacitly—or even overtly—supports Hamas and Iran. This section further explores deepening Israeli distrust toward China, particularly as Chinese technology, both military and commercial, is increasingly portrayed in the media as a threat to Israel’s security and sovereignty, whether in the hands of Arabs or Israelis.

Nevertheless, despite widespread media concerns over Chinese espionage and boycotts, there remains a rather nuanced debate among Israeli experts and government officials. Some argue that the risks of Chinese tech have been assessed and contained, while others explain China’s trade behavior as a rational response rather than due to outright hostility. A notable few Israeli analysts even maintain that Chinese goods and well-managed economic ties remain beneficial—and, to some extent, essential—for ensuring Israel’s security and stability.

Chinese Weaponry in the Middle East

During their campaign in the Gaza Strip, the Israel Defense Forces (IDF) uncovered large stockpiles of Chinese-made weaponry, including advanced drones, assault rifles and automatic grenade launchers, in the possession of Hamas fighters. This discovery prompted serious questions among Israelis about whether Beijing has knowingly supplied military equipment to Palestinian militant groups.[1] However, most informed assessments suggest that China was unaware, as an anonymous Israeli intelligence source told Maariv:

“it is likely that there is another player involved in it, and it is likely that this player is Iran. China will not like the fact that this is what the Iranians are doing with their weapons. It does not look good, and this can become a problem for them.”[2]

The issue of the proliferation of Chinese arms in the region extends beyond Hamas. Israeli analysts have also expressed unease over reports that Egypt is seeking to acquire the Chinese J-10C stealth fighter jet. In July 2024, negotiations for a potential sale reportedly took place during a meeting between Egyptian Air Force Commander Mahmoud Fouad Abd El-Gawad and his Chinese counterpart, Chang Dingqiu (常丁求). More recent, though unverified, reports suggest that Egypt may have already received its first batch of the export variant of the J-10C, equipped with PL-15 long-range air-to-air missiles.

The possibility of Egypt and other states procuring the J-10C has raised alarm among Israelis, particularly due to longstanding allegations regarding the aircraft’s origins. According to reporting by The Sunday Times, the J-10C is based on the IAI Lavi, an Israeli fighter jet developed with U.S. funding but canceled in 1987. The report claims that Israel transferred the Lavi’s design—including its American technology—to China, a claim that Israeli officials have denied.

Military analyst Udi Etzion, writing for Walla!, warned that the introduction of the J-10C into Egypt’s arsenal could significantly undermine Israel’s air superiority in the region.[3] Until now, Israel has been the only Middle Eastern country operating stealth fighters, specifically the F-35I, a variant of the U.S.-made Lockheed Martin F-35.

Israel’s strategic advantage has long been reinforced by American efforts to restrict the proliferation of the most advanced military technology in the region. Washington has consistently pressured Middle Eastern partners to avoid purchasing major Chinese and Russian weapons systems, and has frustrated attempts by countries such as Türkiye and the UAE to procure the F-35. However, rapidly growing dissatisfaction with the Trump administration may push Middle Eastern states—which have so far used the prospect of Chinese weapons deals most likely as leverage in negotiations with Washington—to follow through with these acquisitions, potentially threatening Israel’s longstanding military technological dominance in the region.

Growing Distrust of Chinese Tech

Beyond military hardware, the strengthening military ties between China and Middle Eastern actors have raised serious concerns among Israeli cybersecurity experts, particularly regarding the security risks of imported Chinese goods.[4] The most critical voices have even called for a general boycott of Chinese technology, especially in the wake of Israel’s “pager attack” in September 2024.

During this operation, booby-trapped pagers and walkie-talkies intended for Hezbollah members exploded, resulting in 42 deaths and over 3,500 injuries across Lebanon, the majority of whom were civilians. Although Tel Aviv claimed responsibility, the attack demonstrated for many Israelis the potential vulnerability of commercial electronic devices and may have set a precedent for similar future attacks, including those potentially targeting Israelis.

For this reason, Nadir Izrael, co-founder and CTO of Armis, a U.S.-Israeli cybersecurity firm, advised that, just as the U.S. government has placed bans on the purchase of Chinese equipment, Israel should similarly avoid integrating Chinese technology into its critical systems.[5] Likewise, in response to the provision of 550 Chinese Chery Tiggo 8 Pro cars to IDF officers, Dr. Harel Menashri, a founder of the Shin Bet’s cyber division and currently the Head of Cyber at the Holon Institute of Technology, warned of the risks posed by allowing Chinese-made vehicles, equipped with their many sensors, onto Israeli military bases, adding that: “I know of almost no Chinese technology that doesn’t transmit [data back to China].”[6]

These concerns over Chinese tech are well-reported across the Israeli media, with articles frequently highlighting how both Washington and Beijing have taken steps to mitigate potential espionage risks—for example, China’s restrictions on Teslas entering security facilities.

For instance, Globes has repeatedly discussed the security risks associated with the IDF, the police and other Israeli security agencies purchasing tens of thousands of Chinese-made cameras, drones, and electric vehicles.[7] Additionally, due to a shortage of drones at the outset of the war in Gaza, it is noted that many Israeli reservists have relied upon commercially available Chinese drones, either purchased independently or received through donations.

In response, the IDF has clarified that the most advanced Israeli-made drones are now being reserved for military forces and that local companies are ramping up drone production capacity. Moreover, all Chinese drones undergo a “sterilization” process to prevent communication with their original manufacturers.[8] A similar sterilization process is applied to Chinese vehicles, according to a military source cited by Walla!, ensuring that they do not transmit information to external entities.[9] Soldiers are also prohibited from discussing classified topics while driving, and Chinese vehicles have been banned from the most sensitive military bases.

For its part, the Shin Bet—the agency responsible for countering foreign espionage in Israel—does not own any Chinese-made vehicles. However, Israel’s Ministry of Finance, which oversees government vehicle procurement, clarified that “as of today, no instructions have been received from the authorized bodies in the country regarding the use of Chinese vehicles.”[10] Thus, despite widespread concern in the media, the Israeli establishment appears to believe that its current measures sufficiently mitigate potential threats.

However, the Israeli media debate on Chinese technology is far from one-sided. While security concerns are frequently raised, there is also recognition of the practical advantages Chinese products offer. Chinese drones have proven to be a useful stopgap for the IDF in the war in Gaza, and Chinese electric vehicles continue to attract Israeli consumers. As reported by Xinhua, BYD’s Atto 3 was the top-selling car in Israel in 2024, according to data from the Israel Vehicle Importers Association. Indeed, Chinese automakers dominated Israel’s EV market, accounting for 68.69% of total sales in 2024, with 46,137 units sold.

Another sector dominated by China is green energy, where Chinese-manufactured solar panels have largely captured the Israeli market. While concerns about potential security risks exist here as well, Israeli industry experts offered a measured perspective.

Moshe (Moshiko) Hassan, head of research at the Israeli cybersecurity firm Upwind, noted that although “China is everywhere in the Western world, they almost never carry out destructive attacks such as disabling the power grid or harming the masses.”[11] Similarly, Shalev Julio, from Dream Security, a company specializing in protecting critical government infrastructure, emphasized that cybersecurity vulnerabilities exist in nearly all modern technologies, regardless of their country of origin.[12]

Beijing’s “Silent” Boycott of Israel

Despite calls from some Israelis to boycott Chinese technology, it appears that China has itself restricted its tech exports to Israel. Since the outbreak of the war in Gaza, Israeli manufacturers have reported increasing difficulties in importing components from China.[13]

An investigation by Globes revealed that, according to a document Israel received on December 17, 2023, “in light of the war, Chinese customs wished to delay the export to Israel of customs items classified in chapters 84 and 85, so that they will not be used by the IDF in the war effort.”[14] These restricted items include various dual-use technologies—products primarily intended for civilian purposes but also applicable to military production—ranging from nuclear reactors and boilers to sound recorders and TV accessories.

Israeli importers have characterized the situation as an “Italian strike,” in which, despite the absence of an official sanctions, Chinese suppliers have been deliberately slowing operations by introducing bureaucratic hurdles and delaying shipments, with COSCO Shipping, the world’s largest shipping company, announcing it would completely suspend service to Israeli ports.[15] In response, some Israeli companies have been attempting to circumvent these restrictions by rerouting imports through third parties in “non-sanctioned” countries, though this has significantly increased costs and extended delivery times.

These challenges have reinforced suspicions in Israel of a “silent boycott” by China, with many interpreting the growing difficulties as evidence of Beijing’s increasing diplomatic hostility. This perspective is also present within the Israeli government. An Israeli government source told Ynet:

“In all the checks we have made with [Chinese] official bodies, it is not about a change in regulations, but about enforcement that has not been done in the past. We are concerned that strict enforcement is being implemented because we are in a state of war. We have contacted the Chinese and their official response is that there is no change in policy. It is clear to all of us that this has a direct connection to the war.”[16]

A business insider from the drone industry explained to Globes that “Chinese restrictions are just part of a process that is already taking place,” noting that Beijing is expected to announce additional measures this year to limit the export of dual-use components to Western markets (of which they consider Israel to be part of) in response to EU and U.S. sanctions.[17]

Despite the record-breaking sales of Chinese vehicles in Israel, local car importers have also expressed concern that this so-called silent boycott could disrupt their thriving business ties with Chinese suppliers. A senior figure in the Israeli automotive industry told Walla! that while “the Chinese know how to separate politics and business,”[18] maintaining ties with Israel is increasingly becoming a reputational liability:

“There is a clear attempt by Chinese manufacturers to lower their media profile, avoid publishing sales achievements in Israel and not to report on the signing of new export contracts with Israelis.”[19]

The source did not rule out the possibility of further barriers and restrictions, especially if EU tariffs on Chinese electric vehicles discourage Chinese manufacturers from developing models suited for Israel, which often serves as a testing ground for automotive companies looking to enter the European market.[20]

However, Globes’ Dubi Ben-Gedalyahu painted a more nuanced perspective, arguing that a “silent boycott” is not new in the industry. Even Japanese manufacturers, he pointed out, avoid overt presence in Israel to prevent backlash from Arab markets. Regarding security concerns over Chinese exports, he argued that frictions with Beijing over Gaza are unlikely to harm Chinese firms’ profits in Israel, as their competitive pricing and the trust they have with veteran Israeli importers largely offsets most consumer concerns.[21]

As such, despite the widely reported restrictions imposed by China and the sharp decline in trade in 2023, the demand for continued economic cooperation appears strong as Chinese goods continue to reach Israel through available shipping channels. Some Israeli experts have even argued that maintaining economic engagement in the face of mounting political tensions serves Israeli national interests.

Source: ChinaMed Data

Galia Lavi, Deputy Director of the Glazer of the Israel-China Policy Center at the Institute for National Security Studies, emphasized that given China’s economic significance, “maintaining cooperation with a sober perspective is an Israeli interest and the key to a successful and secure relationship.” However, she also stressed that this does not mean Israel should avoid criticizing Beijing, adding that "the State of Israel should even consider appropriate diplomatic ways […] even if only symbolic” to counter China’s perceived anti-Israel stance.[22]

Conclusion

In 2024, the Israeli press devoted considerable attention to trade and technological ties with China, especially as Beijing is increasingly perceived as aligned with Tel Aviv’s adversaries. Amid heightened concerns over Israel’s national security and fears of international isolation, media discussions have explored the possibility of China supplying arms to Palestinian groups and Arab states, using its consumer electronic exports for espionage or warfare, or engaging in a boycott of Israeli markets.

While some Israeli experts acknowledged these possibilities, many have pushed back against what they consider alarmist narratives. Government representatives have sought to explain the measures taken to mitigate the risks associated with Chinese products. Other industry experts have contextualized Chinese trade restrictions or defended trade with China, emphasizing how it serves Israel’s national interests.

Given that trade is often seen as a cornerstone of ties with Beijing and that China has become, and will likely remain, an essential partner in many economic sectors, it is understandable that many Israelis view China as a crucial economic partner. Thus, in 2025, as the Trump administration launches the first salvo of a global trade war, it will be interesting to observe whether the Israeli government can maintain what many see as a necessary trade partnership with China while also courting increasingly vital American diplomatic and military support.

Amanda CHEN is a Research Fellow at the ChinaMed Project. She is also a graduate student of the Sciences Po-Peking University Dual Master’s Degree in International Relations. Her research interests include Chinese diplomacy in the Middle East and broader China-Middle East relations.

Leonardo BRUNI is the Project Officer and a Research Fellow at the ChinaMed Project. He is also a Research Fellow at the University of Turin and a graduate of the Sciences Po-Peking University Dual Master’s Degree in International Relations. His research interests include China-EU relations and Chinese foreign policy in the wider Mediterranean region.

This work is licensed under the Creative Commons Attribution-Non Commercial-No Derivatives 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

[1] Dean Shmuel Elmas, Nekhsaf Til Neged-Tankim HaSini SheBo Hamas Mishtamesh Neged Tzahalנחשף טיל הנ"ט הסיני שבו חמאס משתמש נגד צה"ל [Chinese anti-tank missile used by Hamas against the IDF revealed], Globes, June 30, 2024, link.

[2] Maariv, “Ze Higi’a BeHafta’a Gedola”: Israel Itra Kamuyot Adirot זה הגיע בהפתעה גדול": ישראל איתרה כמויות אדירות” Shel Neshek MeTotzeret Sin BeAza של נשק מתוצרת סין בעזה | דיווח [“It came as a big surprise”: Israel detects huge quantities of Chinese-made weapons in Gaza | Report], January 7, 2024, link.

[3] Udi Etzion, “Israel Te’abed Et HaYitron? Mitzraim Shokelet Lirkosh Metosei Khamkan MeSin ישראל תאבד את היתרון? מצרים שוקלת לרכוש מטוסי חמקן מסין" [Will Israel lose its advantage? Egypt is considering purchasing stealth aircraft], Walla!, July 24, 2024, link.

[4] Assaf Gilad, Artzot Habrit Hekhrima Et HaMatzlemot HaSiniyot. Mishteret Israel Hitziva Otan BaKvishim ארה"ב החרימה את המצלמות הסיניות. משטרת ישראל הציבה אותן בכבישים [The US confiscated the Chinese cameras. The Israeli police placed them on the roads.], Globes, June 26, 2024, link.

[5] Assaf Gilad, Mitkefet Biparim Aval Hafukh. Hayim Gam Israel Khasufa? ?מתקפת ביפרים אבל הפוך. האם גם ישראל חשופה [Pager attack but the other way around. Is Israel also exposed?], Globes, November 8, 2024, link.

[6] Dean Shmuel Elmas, BeArtzot Habrit Mefakhadim MeHaMekhoniyot HaSiniyot. BaAretz Mekhalkim Otan LaKtzinim בארה"ב מפחדים מהמכוניות הסיניות. בארץ מחלקים אותן לקצינים [In the US, people are afraid of Chinese cars. In Israel, they are distributed to officers.], Globes, March 30, 2024, link.

[7] Dean Shmuel Elmas, Biglal HaMakhsor BeRakhfanim: Tzahal Mishtamesh BeKelim Siniyim SheNikhnesu LaReshima HaShkhora Shel Artzot Habrit בגלל המחסור ברחפנים: צה"ל משתמש בכלים סיניים שנכנסו לרשימה השחורה של ארה"ב [Due to the shortage of drones: The IDF is using Chinese tools that were blacklisted by the US], Globes, July 23, 2024, link.

[8] Assaf Gilad, Alfei Rakhfanim MeTotzeret Sin BaDerekh LeTzahal. Elu HaKhashashot אלפי רחפנים מתוצרת סין בדרך לצה"ל. אלו החששות [Thousands of Chinese-made drones on their way to the IDF. These are the concerns], Globes, April 25, 2024, link

[9] Udi Etzion, Lama BaShabak Lo Mishtamshim BeMekhoniyot Siniyot? ?למה בשב"כ לא משתמשים במכוניות סיניות [Why doesn't the Shin Bet use Chinese cars?], Walla!, March 6, 2024, link.

[10] Ibid.

[11] Assaf Gilad, HaMakhshev Sini: Hayim Mitkanim Solariyim BeIsrael Khasufim LeSakana Bitkhonit? המחשב סיני: האם מתקנים סולאריים בישראל חשופים לסכנה ביטחונית [Chinese Computer: Are solar installations in Israel exposed to a security risk?], Globes, July 14, 2024, link.

[12] Ibid.

[13] Udi Etzion, Kherem Shaket: Beli Hoda’a Rishmit, Khevrat HaSapanut HaSinit HaGedola Tedaleg Israel חרם שקט: בלי הודעה רשמית, חברת הספנות הסינית הגדולה תדלג על ישראל [Silent boycott: Without official announcement, the major Chinese shipping company is skipping Israel], Walla!, January 8, 2024, link.

[14] Dean Shmuel Elmas, Anakit HaSapanut MSC Ma’ala Makhirim LeIsrael ענקית הספנות msc מעלה מחירים לישראל [Shipping giant MSC raises prices to Israel], Globes, January 8, 2024, link.

[15] Dean Shmuel Elmas, Khevrat HaSapanut HaSinit HaReviyit BeGodla BaOlam Mafsika Lashut LeIsrael חברת הספנות הסינית הרביעית בגודלה בעולם מפסיקה לשוט לישראל [The world's fourth-largest Chinese shipping company stops sailing to Israel], Globes, January 7 (updated on January 8), 2024, link.

[16] Navit Sommer, Mif’alei Haitek BeIsrael Mitkashim Leyabe Rekhivim MeSin: “Maf’ilim Aleinu Sanktziot” מפעלי הייטק בישראל מתקשים לייבא רכיבים מסין: מפעילים עלינו סנקציות [Israeli high-tech factories are having difficulty importing components from China: "They are imposing sanctions on us"], Ynet, December 24, 2024, link.

[17] Assaf Oni, HaLekhima BeUkraina Mitbaseset Al Rakhfanim. Akhshav Sin Magbila Et HaYitzu Shelahem הלחימה באוקראינה מתבססת על רחפנים. עכשיו סין מגבילה את היצוא שלהם [The fighting in Ukraine is based on drones. Now China is restricting their exports.], Globes, December 10, 2024, link.

[18] See note 13, Udi Etzion, Walla!, January 8, 2024, link.

[19] Ibid.

[20] Dubi Ben Gedaliyahu, Baiden Ma’ala Et HaMas Shel Klei Rekhev MeSin Le100%. Hayim HaMahalakh Yashpi’a Al Israel? ?ביידן מעלה את המס של כלי רכב מסין ל־100%. האם המהלך ישפיע על ישראל [Biden raises tax on vehicles from China to 100%. Will the move affect Israel?], Globes, May 16, 2024, link.

[21] Dubi Ben Gedalyahu, Sin Bakhara Tzad BaMilkhama – Hayim Ze Yigrom LaIsraelim Liknot Pakhot Rekhavim Siniyim? ?סין בחרה צד במלחמה - האם זה יגרום לישראלים לקנות פחות רכבים סיניים [China chose a side in the war - will this cause Israelis to buy fewer Chinese vehicles?], Globes, January 14, 2024, link.

[22] Asaf Zagrizak, Shalosh Shanim Akharei SheKam: Namal HaMifratz Noges BaMitkharim. VeMa Yim HaKhashash MeSin? ?שלוש שנים אחרי שקם: נמל המפרץ נוגס במתחרים. ומה עם החשש מסין [Three years after its establishment: The Gulf Port is biting its competitors. And what about the fear of China?], Globes, September 8, 2024, link.

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Published with the support of the Ministry of Foreign Affairs and International Cooperation pursuant to art. 23-bis of Presidential Decree 18/1967. The views expressed in this publication are solely those of the authors and do not necessarily reflect the views of the Ministry of Foreign Affairs and International Cooperation.
Published with the support of the Ministry of Foreign Affairs and International Cooperation pursuant to art. 23-bis of Presidential Decree 18/1967. The views expressed in this publication are solely those of the authors and do not necessarily reflect the views of the Ministry of Foreign Affairs and International Cooperation.
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