Israel can become a strategic asset to China.

Towards a new China-Israel alliance

Israel can become a strategic asset to China.

Prof. M. Avrum Ehrlich                  18 May

With its large rural population transforming and moving into industrial and technological sectors and gaining an education, China is becoming the major economic powerhouse of the 21st Century. Israel may not seem like the perfect partner at first glance, but take a second look, and the potential synergies between them may prove remarkable.

To maximize the Israel-Chinese relationship, coordination between relevant Israeli government and non-government bodies and companies, and the integration of other interests and expertise, is in order. A cohesive, mutually beneficial agenda, is required. Its focus should be how to guide the massive injection of Chinese and Israeli state-sponsored funds into strategic cooperation in synergetic Israeli-Chinese industries such as hi-tech, sustainable systems and agriculture, to name but a few.

The unprecedented stimulus package that China is injecting into its economy, together with the restructuring required in Israel to stimulate her own economy, provides a once-in-a-generation opportunity to lay down the underpinnings of government-sponsored collaboration between mainstream Chinese and Israeli sectors, which naturally should not be missed.

Unlike dealings with democratically-structured governments, in the case of China, only through negotiation with senior officials can this far-reaching arrangement be achieved. However, the difficulty in reaching these levels in the Chinese State bureaucracy necessitates careful thought.

Israeli business interests, which are not necessarily coordinated with the Israeli government, would in a case like this require bi-partisan Israeli political patronage to reach the necessary ranks in the Chinese Central Government, the Communist Party, and the Consultative Committees. But this may also not be enough. A suitable vehicle that coordinates Israeli industry and government, together with the local and international Jewish communities, is desirable – if not necessary – to build credibility, expertise and social and intellectual assets valuable to the Chinese imagination.

Various Israeli governmental and non-governmental organizations are aware of the opportunities on the horizon but are limited to existing paradigms and governmental instructions. The incentive to raise the bar and initiate government-to-government and sector- to-sector renegotiation of cooperative paradigms should come from, and be funded by, leaders of the private sector.

In contrast to the present economic relationship, in which private Israeli companies vie for entry into the Chinese marketplace depending on their singular business strategy, what is necessary today is a concerted effort to establish a different working axis using mutually designated government funds to build sectorial-based strategic cooperation and use the wheels of the economy to assist in more far-reaching social and cultural engagement.

China has put great effort into securing strategic assets around the world; in oil-rich Arab States; resource-rich African and South American nations; technology companies in the USA and European banking institutions. Chinese policy makers are engaged in reforming their country’s education and training policies and may be open to the prospects of ensuring long-term technology cooperation with Israel, viewing it in the same vein as it does other diverse strategic assets.

Israeli Ambassador in Beijing, Mr. Amos Nadai, the Consul General in Shanghai, Mr. Jackie Eldan, and newly appointed Consul General in Guangzhou, Mr. Avi Nir, as well as local Jewish and Israeli business communities in China, bring with them valuable expertise to construct responses to the opportunities presented.

The newly-established Israel Chamber of Commerce in China (Ischam) is also well placed in the nation’s capital to serve as a business and economic advocacy body in China. Its present efforts to create a China-wide structure which combines a centralized database and information services while encouraging as many branches as there are Israeli business interests to advance, is a first step in constructing a representative business community and finding consensus on these subjects. Ischam-Beijing recently held a seminar in Beijing on the subject of the Chinese economic stimulus package.

Several other international Jewish organizations have been independently active in advocacy between the Jewish world and Asian nations. Following suit, the Jerusalem-based Israel-Asia Center is working with its partners to form a non-partisan Israel-China advocacy group.

This has several components. Firstly, to convince Israelis that this is important by a) encouraging Israeli students, universities and colleges to upgrade their curriculum on China-related fields; b) urging Israeli industry and corporations to sponsor an organization to represent and maximize their common interests; and c) lobbying Israeli government representatives and Knesset committees to support and coordinate initiatives.

The second part of this advocacy initiative must take place in China through efforts to win over the minds of the Chinese bureaucracy and empower regular channels of communication with the senior levels of Chinese leadership.

Mobilizing the credibility of the Jewish world for outstanding achievement and innovation, it is my goal to bring together a delegation of parliamentarians, judges, bankers, science and hi- tech leaders, as well as cultural and religious representatives to engage Chinese political leaders, senior members of the Communist Party, social and judicial leaders, and high-ranking scientific, industrial and cultural leaders.

Ironically, this is partly modeled on the highly successful Islamic-Chinese Co-operative Forum, which brings leaders of the Islamic world to discuss cooperation and policy with Muslim countries and regions. Their achievements have been extensive over the past decade.

Success of initiatives like these depends upon Israeli business leaders being far-sighted enough to understand the national interest and the likelihood that the future of Israel’s economy lies, to a significant degree, in Asia. While Israel’s government sector is striving to up the ante with Beijing, it cannot do this alone. Private philanthropic, corporate and industrial financing is necessary and irreplaceable to navigate and realize these opportunities.

Prof. M Avrum Ehrlich is president of the Israel-Asia Center, Professor of Jewish Thought at Shandong University, China, Vice President for Special Projects at Shandong Yingcai University and member of the establishing committee for the Israel Chamber of Commerce in China.

For more information on the Chinese stimulus package and business opportunities for Israeli companies in China, please visit the Israel-Asia Center website.

Published by Globes [online], Israel business news – http://www.globes.co.il – on May 19, 2009