Centrum Stosunków Międzynarodowych - 15 June 2016: China-Israel Relations: Bilateral Trade and Investment

China and Israel have officially started discussions for a free trade agreement (FTA), what means the emerging bilateral relations between two economies. Both China and Israel gradually become more politically isolated because of their assertive (Read more about assertiveness) geopolitical behavior. The two contradictory economies made the first step to growing their economic and political ties closer together. “China’s aggression” in the South China Sea became an occasion to redraw political alliances and makes Pacific countries nervous. Such close cooperation between China and Israel causes critical reaction of Israel’s economic and political partners in Western Europe and the United States to Israel, which was their Middle Eastern ally for a long time.

Given last political developments, China and Israel see each other as good potential political and economic partners. The key point of such possible partnership is that both economies aimed to influence their economic dependence and to benefit from each other’s comparative advantages.