China’s ambassador: “The war is not the theme of Israel-China bilateral relations”
In a rare wide-ranging interview, China’s ambassador to Israel, Xiao Junzheng, discusses Beijing’s strong economic ties with Israel despite geopolitical tensions, its vision for regional stability, the new Trump administration’s tariff war, and why China sees Israeli innovation as key to its own modernization.
Tucked away on a bustling Tel Aviv street, unbeknownst to the pedestrians weaving through the city’s daily chaos, sits the Chinese Embassy. Behind its nondescript facade, high walls and unassuming entrance, lies what feels like a fortress - solemn and imposing. Everything about the building serves as a deliberate reminder that you are in the presence of one of the world’s last remaining superpowers, one that shows no signs of tiring.
Seated among dark wood paneling, neatly arranged calligraphy scrolls, emblems of the People’s Republic of China, next to a porcelain set of jasmine tea, is China’s Ambassador to Israel, Xiao Junzheng, for his first in-depth interview with Israeli media since arriving at his post about three months ago. “We welcome and need Israeli tech companies’ support and help for modernization,” he says almost immediately. “China’s GDP per capita is $12,000. There’s room for further growth, especially compared to Israel’s $53,000.”
For many Israelis, this sentiment might come as a surprise. In the months since October 7, Israel has found itself increasingly isolated on the global stage. Tensions have grown with traditional Western allies, and China’s alignment with Iran and Russia has led many to assume that economic relations with Israel would deteriorate.
This is to most bystanders a fraught moment in Israel-Chinese relations. But, a historian turned diplomat, the ambassador appears unphased. He takes the long view of what he sees as an ancient relationship. “Our two countries are Asian civilizations. We share common values and cooperation is in our interests,” Ambassador Xiao says, highlighting “the special friendship between the Jewish and Chinese peoples,” pointing to a historical bond that predates modern diplomatic relations.
“Eighty years ago, more than 20,000 Jewish refugees fled to China from the Nazis, settling mainly in Shanghai,” he says. He notes that China was one of the few countries that did not turn them away when most nations imposed strict quotas, ultimately admitting more Jews during this period than most Western countries combined.
“China remains committed to developing our historical friendship with the Jewish people,” he continues, despite China’s historical support for Arab states in their wars against Israel. “The war continues, but the war is not the theme of Israel-China bilateral relations. For more than 33 years, China-Israel relations have withstood the test of history and always maintained stable development.”
Indeed, China is Israel’s largest trading partner in Asia and its second-largest worldwide. According to China Customs, bilateral trade volume increased from approximately $8 billion in 2013 to $25.45 billion in 2022, before dropping to $14.5 billion in 2023. At the same time, in 2024, Israeli imports from China reached a record high of $13.53 billion - a nearly 20% increase from 2023. “Chinese companies in Israel have not evacuated or stopped their business. They have been sticking to their posts and fulfilling the contracts,” Xiao asserts.
This persistence of economic ties contrasts sharply with China’s foreign policy. While Beijing has deepened its relationships with Iran and Russia and refrained from condemning Hamas’ attack on October 7, it has simultaneously continued investing in Israeli technology and maintaining steady trade relations. For many Israelis, this dual approach - diplomatic alignment with adversaries but economic engagement with Israel - seems paradoxical. But from China’s perspective, diplomatic and economic relations are separate matters.
In recent years, Israel-China relations have grown significantly, particularly in technology and trade. "We want to encourage more Chinese investors to come to Israel,” he notes. However, Chinese investors tend to favor later-stage companies, preferring to see technology’s maturity before committing capital. But the ambassador also has his eye on the other side of the equation: "At the same time, we want Israeli companies and investors to come to China. It’s a super market. The utility for cutting-edge high tech is the biggest advantage of the Chinese market."
Chinese investments in Israeli tech are focused on autonomous driving, healthcare, clean energy, and agriculture - industries where Israeli innovation can help China tackle pressing challenges. “Israel is at the forefront of the world in autonomous driving and V2X (vehicle-to-everything) technology,” Xiao notes. But beyond vehicles, China sees Israeli expertise as crucial for food security and water management. “Israel's water-saving irrigation and smart agricultural technology are key to solving food security and water shortages. Chinese capital is also paying attention to Israel's innovations in solar energy and energy storage.”
On the subject of its role in the region, the ambassador says that China would like to play a role as a mediator in regional conflicts. "We welcome the Gaza ceasefire agreement and hope that the agreement will be effectively implemented, the Israeli hostages will be safely released, and peace and stability will be achieved in the region as soon as possible." China, he says, stands ready to work with Israel to promote regional peace, stability, and prosperity.
China’s growing presence in Israel and the broader Middle East has been marked by substantial investments in critical infrastructure projects, ranging from ports and railways to energy grids and telecommunications. These investments are part of China’s Belt and Road Initiative (BRI), which seeks to enhance trade routes and foster economic integration across Asia, Europe, and Africa. The BRI has been met with criticism by the U.S. and other Western powers who have accused China of using its economic influence as a tool for geopolitical leverage and to secure its foothold in the region - concerns dismissed out of hand as anti-Chinese propaganda by the Chinese government.
“As a sincere friend of all Middle Eastern countries, China would like to continue its role as an upholder of peace and stability, a promoter of development, and a long-term trustworthy partner,” Xiao says. He points to China’s role in brokering the Saudi-Iran reconciliation and suggests that economic integration, including Gaza’s reconstruction, could contribute to regional stability. “The more closely linked countries are economically, the safer it is for the whole region.”
Beyond the Middle East, the ambassador was eager to discuss global trade tensions. “In addition to the Russia-Ukraine war and the war in Gaza, the third war is the tariff war,” he warns. “There is no winner in a trade war.” He criticizes U.S. policies of imposing trade barriers, arguing they ultimately harm global economic stability. “The unilateral act of imposing tariffs by the U.S. will only throw the global economy into greater turmoil,” adding that they are “[harming] the international system and order.” He references the growing risks of a global recession due to the U.S.-China trade war, noting that tariffs have forced U.S. companies to raise prices and even cut jobs. The World Bank and IMF have expressed concern about the negative effects of these trade barriers, which could significantly reduce global economic growth.
Now, the new administration has begun pursuing tariffs against other countries including allies like Canada and the EU. “The United States will target any country contributing to a U.S. trade deficit. There was an idea that its focus would be only on China, but this isn’t right; it’ll impose tariffs on anyone.”
Whether speaking about relations with Israel, or broader international politics the ambassador emphasizes a long-term perspective - one that reflects the outlook of a 5,000-year-old civilization, which he notes. “It was only in the 1960s and after two world wars that Europe understood the significance of unification - this is something that was understood by China thousands of years ago, and it is a key component of our culture.”
This long-term perspective allows the Chinese to approach one of the most emotionally charged conflicts in the world with a characteristic calm and pragmatism. It is also why, whatever public political daylight exists between the two governments, China continues to view Israel as more than just a small yet advanced economy, but as a crucial partner in China’s own modernization. So long as it does, economic ties remain stable - at least for now.
