Archive for ‘Economics’

April 25, 2012

Israeli Companies are Building India’s Robotic Weapons

by Gedalyah Reback

India has been beefing up its naval abilities ever since Pakistani terrorists landed in Mumbai in 2008 and killed nearly 200 people. It’s the latest in a mostly positive stringof encounters with Israeli military companies, especially welcome after what happened to IMI.

The latest Indian project involves unmanned drones, but this time in the water. Mahindra & Mahindra Ltd. (MM), an Indian sporting company, is teaming with Rafael to make the machine happen. India has been augmenting its navy since the 2008 attacks anticipating more break-in attempts, especially from Pakistan. Much of the development is focusing on defending the coastline of Gujarat, the largest state in India. The latest project adds to the efforts, announced in January, of adding a second aerial unmanned squadron to the Indian arsenal. That project involves Israel Aerospace Industries.

Robotics as a non-military venture is also gaining traction. Recently, the National Committee on Robotics and Automation and the Confederation of Indian Industry (CII) sent reps to Israel for further research and venture development with Israeli companies. They met with the head of the Israeli Robotics Association, Professor Zvi Shiller. According to his bio, he has been involved in projects with the Israeli Defense Ministry, Science Ministry and even its Space Agency. Meeting Shiller might not have any other political implications, but the fact he is on staff at Ariel University (in the West Bank) was not at all on the list of concerns, let alone the radar whatsoever, of the Indian delegation.

This is all happening despite obstacles in the Israeli-Indian relationship, including accusations Israel Military Industries, owned by the Israeli government, has been bribing its way to Indian contracts. Various reports range from $44 to $70 million in seized assets to serve as a fine for the breach in trust, which is actually included in the contracts India’s Defense Ministry signs. That action brought up issues inside Israel regarding the ethical conduct of its major companies in general. Now with another country taking notice of such business practices in a public way, it’s an especially humiliating prospect. In the meantime, IMI is appealing the Indian decision. It is unlikely they’ll make headway, since they are only one of seven companies India has blacklisted (India won’t make defense deals with these companies for at least 10 years).

April 22, 2012

Israeli Gas Drillers Get Nearly $1 Billion in Investments from US

by Gedalyah Reback

It was announced April 22nd that the group of owners developing one Israel’s large offshore gas fields, Tamar, will be getting just over $900 million in loans from a consortium of 11 companies and banks in the near future.  The money is a huge boon for the developing Israeli energy industry.  It also indicates the potential for the export element of the business the industry is aiming for.  The connections are coming from principle Tamar developer Noble Energy, based in Texas, which owns about a third of the field.

In January, the controlling group signed a deal with a smaller Israeli energy provider to supply gas for nearly 20 years, declaring they wished to increase competition in the Israeli market.  That deal is worth $5 billion.

Tamar is a large gas field whose vast area has caused diplomatic and security issues to pop up with Lebanon and Hezbollah. The field is one of several that is also the target of joint development projects with Cyprus. Cyprus’ interests have angered Turkey, creating tension with Ankara as well. Turkey does not recognize the government of (southern) Cyprus, preferring the Turkish Northern Cyprus government as the official representative of the island. Israel has been looking at enlarging its navy in anticipation of security issues to offshore development sites in the future. Lebanon has refused to negotiate with Israel up till this point, instead filing complaints with international bodies and refusing to ratify a joint development agreement with Cyprus.

The symbols of the main companies involved are here: Noble Energy (NBL); Delek Drilling (DEDRL); Isramco Negev (Isral) & Avner Oil (Avnrl).

April 21, 2012

Israel’s Navy Expanding to Defend Offshore Gas

by Gedalyah Reback

Israel has expanded its relationship with Greece for two reasons. The first is because Greece is the natural alternative to having an alliance with Turkey, which is falling apart. The second is Greece is the natural patron of Cyprus, the other country about to win big from natural gas fields discovered in the Mediterranean Sea. Israel is planning to develop several fields, so naturally they will want a strong relationship with the other country nearby, Cyprus. The fields are in the “territorial waters” of the two countries, that is the area of ocean or sea water that is within legal range of a country’s coastline.

But that also involves Lebanon. Lebanon is nowhere near as advanced as Israel in its ability to explore for mineral deposits offshore. But now that Israel has hit the jackpot, Lebanon is making claims that some of the fields are in Lebanese water. The maps would have to be manipulated to make that true, but that hasn’t stopped Hezbollah and the rest of the Lebanese government from making an issue out of it. Hezbollah added fuel to the fire, threatening Israel if it crossed into the ambiguously defined Lebanese waters. In kind, Israel promised it would defend its gas deposits with force.

There is teeth to the Israeli words while little to Hezbollah’s. Despite what little naval options Hezbollah or Lebanon would have, Israel is stacking up. The navy is negotiating with South Korea and Hyundai to buy a bunch of new frigates. Israel recently had a spat with South Korea’s military industry because Jerusalem chose to buy a squadron of training planes from Italy instead of the Koreans. Filling the need to bulk up the navy and stay on good terms with South Korea is like killing two birds with one stone. Some even want Israel to stock up on bigger sorts of ships like destroyers and cruisers.

Israel is also replacing its joint naval war games with the Turks by conducting new ones with the Greeks. Greece is a patron to tiny Cyprus, so any business or military affairs happening on the island resonate in Athens. Greece is equally involved in the cultivation of the natural gas deposits as Cyprus or Israel, so the Greek navy will be the first natural ally for the Israelis in the Mediterranean.

Cyprus might end up mediating between the Israelis and the Lebanese on a maritime border. Cyprus already has working agreements with both countries on exploration, but both could be undermined if either country cannot begin working offshore. Lebanon refuses to ratify its agreement with Cyprus until it gets clarity on its southern border, forcing Cyprus to get pro-active about solving the dispute. Israel and Lebanon are also beginning to cooperate in other ways on the waters of the Mediterranean Sea – blocking Palestinian activists from crossing into Israeli waters on Land Day and Nakba Day. There is room to settle the dispute, but it might have more to do with Hezbollah’s willingness to cook up an issue to fight about then actually taking a pragmatic approach to the issue.

Turkey is the big reason though to bulk up. Initially you’d think I’m talking about the Flotilla incident in 2010, when the Israeli navy boarded a ship and killed nine Turkish activists on their way to protest the blockade of Gaza. The reason to buy bigger boats has more to do with Turkey’s relations with Cyprus. Turkey has a tense relationship with Cyprus. In 1974, Turkey invade Cyprus and carved out the northern third of the island as a separate country for Turkish residents – Northern Cyprus. Only Turkey recognizes the country, and in September 2011 signed a joint exploration deal with the tiny country to search for gas off the Northern Cypriot shore.

Turkey has had fierce rhetoric since and its own naval maneuvers, rattling its sabers in the direction of the Greek, southern Cyprus working with the Israelis. In December, Turkey drove ships toward the fields claimed by Israel and the southern Cypriots and fired in the direction of the fields. Israel and Cyprus have asked for help from the US to keep the Turks back, but the tensions are hot as Turkey seeks to stake a claim for itself and its tiny Northern Cypriot neighbor. The International Crisis Group in the beginning of April accused Turkey of a series of provocations against southern Cyprus, and told Turkey to discipline itself.

April 16, 2012

Turkey & Israel: The Turkeys in Turkey – Business Still Flourishing

by Gedalyah Reback

So I’m sitting in class at Hebrew University listening to the latest lecture on Ottoman history. Going over the economic history of the empire, it can get relatively boring: the social structure brought on by hyper-organized guilds, economic protections, imports & exports, etc.

It’s all boring, but extremely relevant from where I sit in the academic capital of the Jewish State. Today, Haaretz posted a report that Israeli tourists were starting to go back to Turkey for cheap, close-by vacations.

Turkey has always been an economic hub being a fertile, particularly after the mass import of American products hit Europe. They went on to become niches for the cuisine in certain countries: the tomato sauce of Italian pasta & pizza; the potato in Ireland; the renown industry for Swiss chocolate. Gold proved to be a much bigger influence. Because so much extra entered Europe, the price of it went down and caused tremendous economic problems, particularly in the Ottoman Empire. It has always been a large market sitting between the centers of trade in India & Europe. That status is extremely true today, as its economy has grown roughly 10% annually like clockwork for the last ten years. That even includes strong economic relations with Iraq and especially Iraqi Kurdistan, even though there is a long-standing rivalry between the Kurds & the Turkish government.

But while we’re talking Turkey, we have to mention the recent failures in the relationship between the growing economy there and the strong one in Israel. The context of today’s trade is remarkable, because both sides have seen a massive collapse in military and diplomatic relationships. On the military side, the Turks have gone out of their way over the last three years to keep Israel from joining military exercises with NATO or bilateral games between the two countries on their own. In turn, Israel has scrapped some lucrative military industrial deals with the Turks, including a project to develop unmanned drones that Israel ended up shifting to Azerbaijan, costing Turkey access to new technology and massive economic losses. Prime Minister Reccip Erdogan was apparently livid when the Azeri deal was announced.

But other trades seem to be on the up & up despite the threats by diplomats and ministers to break the relationship further. In fact, the economic relationship seems to be completely independent of the military and diplomatic ones.

Traditionally, Turkey was a hub for agricultural exports to Europe from Asia, mainly in livestock. That included a breed of guineafowl nicknamed the “turkey hen” or “turkey cock” (i.e. a Turkish chicken). Peacocks and pheasants made their way through in addition to all the raw materials and silks from India & Persia. Livestock isn’t the main staple of the economy now. That would be manufacturing and machinery, in which Turkey is heavily involved in an international market where parts are imported or exported, assembled, then redistributed. Today, Israel is heavily involved and invested in that industry. About 900 Israeli companies are apparently active in Turkey and the Turks are the 8th largest export market for Israeli industry. Israel is only 17th to Turkey for centers of export, about 1.5% according to the article linked above. But Israel has free trade agreements with the United States and is a member of the European economic alliance, the OECD. Turkey is also a member, which not only means the two economies have easy access to each other but also are forbidden by organizational rules from boycotting other members of the alliance.

Turkey’s name has been significant in American exports since before the United States’ founding. The name of the newest discovery in cuisine, the turkey, came from being mixed up with the above mentioned “turkey hens” that came from India (India, “Hodu” in Hebrew, also being the origin of the Hebrew name for the turkey: “hodu”). What was once the tomatoes, turkeys and gold of the Americas has become chemicals, manufacturing and consulting services between the Turkey and the New World. With the US so close to Israel, it’s imperative that Turkey maintain its economic ties with Israel if it wants to maintain some level of diplomatic niceties with the United States. So while the reasons Turkey is stuck with Israel are apparent, they’re intertwined with the reasons Turkish businessmen aren’t looking for ways to divorce themselves from the Jewish State’s economy.

Turkish merchants haven’t forgotten Israel’s tech industry either, and their pressure on the government in Ankara has made it tough for politicians to follow through with threats against Jerusalem. The military is not the only interested consumer. Israelis are known for selling start-ups, but now they seem to be buying them. An example is the Turkish company Med Ilac, a medical tech company gobbled up by pharmaceutical giant Teva for 10s of millions of dollars. With medical and digital tech hubs in the Middle East located in Israel, the Turkish government has little pragmatic reason for severing the relationship with the Israelis to that degree.

As Turkey tries to break into the tech and R&D worlds, it’s previously close connection with Israel effectively makes the relationship indispensable. The Turkish military will look for ways to renewed cooperation, especially in weapons and communications. This is a general analysis, and it even reflects some of the points Israeli PR makes about industry and technology when it tries to draw attention from contentious Israeli issues like politics and the Palestinian territories. But it’s indispensable truth. Israel and Turkey will probably repair their relationship on financial grounds more than on strategic ones, but it seems inevitable.

April 10, 2012

Israel, Azerbaijan & New Problems Recognizing the Armenian Genocide

by Gedalyah Reback

Israel will be testing its relationship with Azerbaijan much sooner than people would have thought. FP’s enlightening article on an Israeli-Azeri alliance surprised countless journalists, politicos and Israel enthusiasts, so hearing Israel might risk jeopardizing would seem downright stupid. But that assumes that everything you need to know about Azerbaijan was in that article. Like my previous post on Armenia, most of the focus has been on Turkey. Israel can’t commemorate the Armenian Genocide without drawing Turkish ire. That’s far less of an issue with Turkish-Israeli ties already so cold they couldn’t get more frigid. But with Azerbaijan, suddenly Israel might have the same problem as it did with Ankara and the Turks.

Azerbaijan is itself a Turkic country (as opposed to “Turkish,” “TURKIC” is a much broader category that includes a bunch of ethnic groups, countries and languages spread across Asia). It has a strong historical relationship with the Ottoman Empire and the Turkic tribes that eventually made their way to Anatolia and founded that empire. What separates Azerbaijan from Turkey and other Turkic countries is that it is Shi’ite Muslim, like Iran. Unlike Iran, Azeris are secular, mostly thanks to being a part of the Soviet Union until the early 1990s. The break-up though led to a reigniting of Azerbaijan’s historical rivalry with the nearby Armenians. With both groups having their own countries, the two have been at war since the end of the Soviets, with heavy historical baggage being carried by both sides of the conflict.

The war with Armenia makes recognizing the Armenian Genocide in some ways even touchier an issue than it would be for Turkey. The Armenians, for their part, also see Azeris as having been complicit in the entire episode. That being said, Azerbaijan also doesn’t recognize the massacres as having been anything other than the collateral damage of war and nowhere near anything as systematic as the Holocaust.

But the world disagrees, like has been said millions of times. So now Israel faces the Azeris and not just the Turks when it comes to putting this issue to rest. A diplomatic crisis might be in the offing. On April 6th, an Azerbaijani news outlet got to interview the country’s ambassador from Israel. What he said was disturbing:

Question: Recently, the committee of the Knesset has discussed so called “Armenian genocide”. Will this issue come to the agenda of the Israeli parliament?
Ambassador Michael Lotem: The committee will discuss, but I think it will not go beyond. This issue should be kept to historians, not dealt by the politicians.

Azeris are disturbed by the idea that more countries could recognize the event as a genocide, something publicly humiliating for Azerbaijan as much as it has been for Turkey. But why is Israel nervous about the entire thing? The questioner’s perspective seems to be one of anxiety, not anger. Despite the grandstanding and outrage from Turkey whenever a country brings up the historical calamity, it’s not power the Turks project but nervousness. Turkey and Azerbaijan need Israel as much as Israel needs them, and not just on this issue. More practical issues, like defense and the economy, have made the two countries’ relationship with Israel important. Azerbaijan might be an asset against Iran – a possible base for Israeli jets, rescue crews and monitoring technology – but Israel also has been big for the Azeri economy and giving Baku’s leaders more of an outlet to the outside world. The government there has a sullied rep, so good press fighting the dark side in Iran is welcomed press.

Members of the Knesset have always been split on the issue of disrupting ties with Turkey over this, but it’s an untested theory that Turkey would disrupt ties with Israel. It’s even further unknown, probably more improbably Azerbaijan would do such a thing. Armenia also has a border with Iran, and Azerbaijan would be in dire straits if it sacrificed all its connections with Israel in retaliation for the way Israel looked at history. It would be more ironic and humiliating if that resulted in Israel building up its ties with Armenia, creating a major problem for Azerbaijan’s security that wouldn’t have existed if not for a stubborn, emotional reaction to a token acknowledgement of an event 100 years in the past.

Israel lets other countries dictate its talk in the strangest ways, and the state is only undermining its assertiveness letting pressure from a non-ally, Turkey, bully the Jewish state into avoiding a simple moral statement. Turkey and Azerbaijan still need Israel as an ally against Iran; not just the other way around.

April 2, 2012

Quick Thought: Israel Should Join the European Union

by Gedalyah Reback

It’s a topic that isn’t broached so often. The reasons aren’t clear. It might have to do with Israeli hesitation toward Europe because of historical baggage. But considering the idea Israel might join NATO comes up every so often, it isn’t so much of a leap. So what keeps this off the radar? Shouldn’t Israel want to join the group?

There are negatives that I can think of, but as a personal exercise I’d like to cover the positives. There are immediate benefits and potential in all of them.

1. Movement

The benefit to Israelis would be the ability to move about Europe more freely and for longer periods of time. It would give Israelis more opportunities to study abroad and build relationships with future business and political partners in important countries from the UK to Germany to Poland. The reverse would also be a benefit. European Jews would more often visit Israel, probably with a heavy level of extended stays by students and retirees. This is something Israel has coveted for decades, a way of channeling more European Jews to the Holy Land to become permanent residents and citizens. It would probably launch at the least a small rekindle of European Zionism in the Jewish community there.

2. Money and Energy

Really these two topics are linked. Since 1992, Europe has added 2.5 million jobs. The opening of borders has let new import/export relationships develop, plus there is a higher-level, professional exchange of knowledge and business that would be incredibly valuable to Israel’s high-tech sector. Israel’s joining the Union would serve as free publicity for Israel’s start-up industry, plus even work in the reverse. With so many foreign interests investing in Israeli companies, the time is coming for Israeli entrepreneurs to buy up foreign assets for themselves.

The opening to tourists is the obvious and most easy-to-understand benefit of the whole project. With easier access to Israel for travelers, that means more cash for the tourist industry, taxes for the government and eventually government investment in various sectors that would in turn sell to continental Europe. Even if Israeli prices were to be equal to Western European prices, there would be extra cash flow.

A major sector that would benefit would be Israel’s growing energy market. Israel has always needed oil, but soon it will be producing natural gas. Depending on how large the exports can be, an internal EU market for fuel would be a major boon for Europe to welcome Israel into the Union and for Israel’s economy. Plus, a massive amount of research & development for alternative energy is happening in Israel. There are infinite possibilities for exporting an untapped and extremely interested market like the one that exists in Europe. It goes hand and hand with Israel’s other R&D, in high-tech.

Other benefits would be in certain import/export markets like cars. The potential for more cars on the road here could mean lower taxes for Israelis and more infrastructure development also. It could even make negotiating building highways in Palestinian territory easier if European automakers and the EU’s political power are behind the push. It would open up access across the country.

3. Customs and Security

The major benefit would probably be in customs, not even the probably infinitely better relationship with NATO. On the customs front, Israel would have more ready access to European travelers and cooperation with other countries’ enforcement agencies and border patrols. It would make monitoring any threats from militant Muslims in Europe easier, particularly from France or Germany.

As mentioned before, entering the European Union would be more reason to join NATO. NATO’s major benefit is its collective defense protocols. First implemented after September 11th, the attack on the United States was defined as an attack on the entire alliance, making the invasion of Afghanistan, overthrow of the Taliban and crushing of Al-Qaeda all NATO priorities and missions, not merely those of the US. Thus, an attack by a foreign power, whether directly or via an affiliated terrorist organization, could be designated an attack on all of NATO, and automatically trigger a cooperative counterattack against an aggressive country like Pakistan, Iran or potentially a future hostile Egypt.

____

This is a very blanket list of positives to the idea. Ideologically, economically and defensively, the move makes a lot of sense. It’s worth exploring for Israel’s future in terms of infrastructure, external security and even the potential to attract more Jews to become citizens of Israel.

October 11, 2011

Israel’s Pioneer Status is Slipping

by Gedalyah Reback

We've heard about how Intel is made in Israel, but is the country losing its status as a science hub? | Photo by flickr user yum9me (CC BY-NC-ND 2.0)
You’ve heard about how Intel processors are made in Israel, but is the country losing its status as a science hub? | Photo by flickr user yum9me (CC BY-NC-ND 2.0)

Israel is considered a pioneer. Its technological and medical developments might be the results of years of input from a culture of research and development. But even after one of the country’s top chemists’ latest Nobel Prize win, Professor Ehud Keinan of the country’s educational advisory board on chemistry has been very public with his anxiety the country’s pioneering spirit is slipping. He highlights education, but most Israelis are preoccupied with diplomacy.

Turkey. Egypt. Palestine. It seems like the world is collapsing in on Israel, that these three and many more problems are converging into an unfortunate coincidence. In reality, these events are all linked: the fallout with Turkey, the cooling peace with Egypt and the collapse of Israel’s position internationally on the Palestinians. The past two years might give us a clue as to what is happening. That is to say, the previous two years and the government at the helm during them is not the source of the problem. The problem has been in play for quite a long time. It is relatively simple and frightening on multiple levels at the same time.

Israel has no plan. Many countries, typically socialist ones, are obsessed with the concept. Typically, public planning in those places doesn’t go further than a few years, but it projects an attitude which is strangely absent in Western countries. Debt has consumed many of these countries based on principles that emphasize borrowing and pushing off responsibility. Israel’s challenge is more unique.

On the one hand, Israel is a country that has been locked into a particular situation with no sense of what the obvious course of action is. On the other hand, Israel is arguably a country without the proper mindset to conceive of long-term planning.

Since the country’s birth, it has been fighting for survival. Israel’s need for foreign assistance during the War of Independence was dire. Its win in 1967 against Arab armies could have easily been a loss, had Egypt chosen to attack first and set the Israelis back. In 1973, American resupply might not have given Golda Meir the chance to turn the tables on Egypt and Syria. The citizens of Israel have let the idea become embedded in their collective psyche that wars are fought in minutes and with luck–and that they are even won that way. With that, the very concept of planning has been forsaken.

That is the explanation a friend of mine from the Technion gave me last month when we were discussing what I thought was Israel’s diplomatic complex. The country’s lack of a long-term plan for its people–population targets, land retention, foreign business investments and, especially, the lack of a plan for the day after a peace agreement is reached with the Palestinians–are all feeding the diplomatic spiral.

My friend explained it in terms of mentality. I liked her take. Israel’s politicians have been immobile as the Middle East has exploded. They might not have been if they had been forward-thinking years ago. As Lebanon pushed Syrian troops out of their country and Iraq got a shot at democratic government, further changes seemed inevitable to major analysts and politicians. The writing was on the wall.

As Israel faces a number of challenges regarding the size of its population, its lack of cultural influence in the Middle East, and its tiny position on the world stage. At the United Nations, Israel has the unusual status of having no specified regional group. Membership in these divisions is necessary to qualify for the UN Security Council. Because of Arab enmity, Israel has not been able to represent the Middle East and thus has been locked out.

Where is the initiative to improve this situation?

Diplomatically, Israel can improve its situations by focusing on itself. What is Israel’s goal from its ties to the Palestinians? Is it really as simple as a secure peace? If Israel can answer with what it needs as a country to build for itself a plan, it will indeed salvage its sliding yet enduring image as a pioneering country.

February 11, 2010

On Iran, Israel has the Ability to Sanction China

by Gedalyah Reback

Recently, the Chinese government expressed interest in investing in a new Israeli consortium developing the offshore oil fields near Haifa. This would add to the growing presence of China in Israel’s economy, which included the Carmel Tunnel and the Tel Aviv Light-Rail Project. China’s Yifang recently acquired Israel’s Pegasus Technologies. China is definitely interested in increasing its economic namely energy ties with Israel.

And that is precisely why they should be withheld.

More and more, the Chinese government has publicly come out against renewed sanctions against Iran. Further, Beijing has attacked the US for publicly attacking internet censorship in Iran. Compound these facts with Chinese support for North Korea and we are presented with an intolerable link with the Syria’s destroyed nuclear installation, attacked with a swift air strike in September 2007. All of these positions run counter to Jerusalem’s interests and should be grounds for Israeli sanctions against Beijing.

The military trade has been under pressure to be cut off for years, and this would provide Israel with the optimal excuse to make that gesture. Among numerous examples, the Bush Administration pressured and torpedoed a $1 billion deal that would have seen Israel upgrade Chinese jets and radars. There was diplomatic damage done from the abrupt deal breaker, but it is a move worth emulating, even at a time where Israel’s government is resolved to challenge US pressure on Israeli policy. China has benefited from the military trade with Israel, roughly totaling $1.5 billion during the 1990s, and currently covers work on surface-to-air missiles and unmanned aerial vehicles (UAVs).

As part of a greater effort to either persuade or pressure the Chinese into supporting a stronger sanctions regime against Tehran, Israel should show signs it will strengthen its relationship with Japan at China’s expense. It is also would not outside Israel’s periphery to cooperate with American-Taiwanese arms deals, like the clandestine Israeli transfer of American missiles to Taiwan in the 1980s.

Aside from the military imports, Chinese exports to Israel represent about $3.17 billion according to the Israeli Embassy to China. China itself recognizes the need to wean itself off oil and gas investments in places like Iran, even if only for the sake of diversifying its economy and improving its R&D sector, something it ought to be willing to make diplomatic concessions on in order to do. Even the mere threat that exports to Israel could be cut off would be a sure sign that China cannot reap benefits from both Israel and Iran simultaneously.

According to Tel Aviv University’s Aron Shai (link, p.27): ), expert on Israeli-Chinese relations, there is much that Israel still has to offer China in terms of agriculture and energy, something in which China has a commanding interest. Those facts point directly to Israel’s revolutionary desalinization technology and solar power markets. Limited access to advanced agro-techology and energy alternatives would certainly threaten China’s pace of growth.

It would certainly be preferable to open more economic missions in China, given the size of the market and tremendous demand for Israeli R&D. But given China’s obstinance on Israel’s priority security issue, such long-term investments should be off the table.

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