Benjamin Netanyahu with Chinese Premier Li Keqiang at an official welcoming ceremony. Photo: Israel GPO.

WSJ – TEL AVIV—A lawsuit in a New York federal court has put Israel’s leader in an extraordinary bind, between nurturing a growing relationship with China and pursuing commitments to fight terrorism and help an American family seeking recompense for the death of a son.

The challenge comes to a head in July, when a former Israeli official is scheduled to testify in a terror-financing case that began six years ago, when the Israeli government asked Florida residents Tully and Sheryl Wultz to sue the Bank of China 601988.SH -0.76% and pledged to help them with the case, the couple said.

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