Analyst: Israel Must Take Advantage of Chance to Become Key Stop on New International Chinese Trade Route
Israel has a chance to become an important stop on a new international trade route being established by China, according to an analysis published by a global news magazine on Thursday.
“Israel has become a strategic focal point for China, and if it fails to leverage this, it will miss a unique opportunity to not only upgrade and diversify its economy, but to position itself as a critical outpost on China’s New Silk Road,” Roi Feder wrote in the Diplomatic Courier. “If Israel seizes the current window of opportunity, while being sensitive to America’s regional interests, it may become a critical trading route between East and West.”
The “New Silk Road” Feder referred to is the goal of China’s “One Belt One Road” (OBOR) initiative. As it seeks to expand its economic reach throughout Asia and Europe, China is set to invest in infrastructure projects in dozens of countries.
According to Feder, the OBOR is part of Chinese President’s Xi Jinping’s “doctrine to reinstate China’s 7th Century golden age, when the Silk Road was a critical international commercial route.”
To realize this vision, China is strengthening its relations with Middle Eastern countries, including Saudi Arabia, Iran and Israel.
“The growth in collaboration between China and Israel over the past few years is predominately due to Israel’s status as a Start-Up Nation which can supply China’s technological needs and help it to upgrade many of its industries,” Feder wrote. “Israel is a center of excellence in managing terror threats, an issue that Beijing decision-makers view with concern as they try to mitigate the rise of Islamist groups in China’s Western provinces.”
However, for China, Feder wrote, Israel’s true “potential lies in becoming an overland bridge connecting China’s trade routes from the Far East through Africa up to the Middle East and on to Europe. Even if it does not proclaim it publicly, China sees Israel as a strategic outpost in its regional interests; a small dot on the map, but one which is vital for ensuring an alternative for the trade and energy routes of the world’s second largest superpower.”
China has already been involved in a number of infrastructure projects in Israel in recent years — including the Carmel Tunnels and two private port projects in Ashdod and Haifa — but, Feder wrote, the “jewel in the crown” for the Chinese would be a “land bridge — a connection [between] the Red Sea and the Mediterranean Sea via rail which would provide a safe alternative route to the Suez Canal, and a dependable commercial center for China’s trading needs. Such a development will turn Israel into an essential part of the global trading ecosystem while boosting its economy.”
Feder concluded, “Israel must recognize the significance of OBOR and the enormous economic and diplomatic opportunities. If leveraged cautiously and with full consideration of America’s interests in the region, Israel…could become a small yet strategically critical outpost on China’s New Silk Road.”
As reported by The Algemeiner, Israel and China announced in May they would open talks on a bilateral free trade agreement.
In 2012, Israel and China signed an agreement to build a rail line that will link Israel’s Mediterranean ports in Ashdod and Haifa with its Red Sea port in Eilat.