Interview: Israel caught between the US and China

Summary

In the midst of the U.S.-China trade war, Ilan Ma, managing partner of Shang BDO, discusses Israel's growing economic ties with China since 1992, now exceeding $10 billion in trade. He emphasizes that while Israel values its alliance with the U.S., especially in military and strategic aspects, it should not sever or limit economic cooperation with China, a potential global economic leader. Ma believes Israel can manage relationships with both nations without choosing sides and hopes for a logical resolution to the trade conflict, acknowledging the U.S.'s concerns over trade imbalances and currency manipulation.

Takeaways

• 😀 Israel's economic relationship with China has grown significantly since 1992, with trade now exceeding 10 billion dollars.
• 🌐 The United States does not expect Israel to completely stop trade with China, focusing more on security and defense issues.
• 🛑 There has been no military cooperation between Israel and China since around 2001-2002.
• 💡 Reducing Chinese investment or trade volume with China would harm the Israeli economy, as China is a major global economy.
• 🔄 Israel has managed relationships with both the US and China for the past 20 years, aiming to balance ties without choosing sides.
• 🤔 The speaker suggests that Israel does not need to choose between China and the US, but rather manage the relationships carefully.
• 🕊️ The interviewee hopes that logic will prevail and the US and China will find a solution to their trade disputes.
• 📉 The trade war is seen as harmful to the global economy, according to a former Israeli bank governor.
• 🔍 There are real issues to address in the trade conflict, such as trade balance and currency manipulation.
• 🤝 The possibility of resolving the trade issues is acknowledged, with the Chinese showing willingness to improve the trade balance.
• 🗓️ The US and China are planning to meet again in October, with the hope of finding a solution to the ongoing trade war.

Q & A

What role does China play in Israel's economy currently?

China plays a growing role in Israel's economy, particularly in technology investment and trade. Relations started in 1992 and trade has grown from $50 million to over $10 billion.

How would Israel's economy be affected if it were to severely limit or end trade with China?

It would harm the Israeli economy as China is one of the world's largest economies with unlimited opportunities. Cutting off ties does not make sense economically.

What does the U.S. expect from Israel regarding its relationship with China?

The U.S. does not expect Israel to completely stop trade or all relations with China. The focus is more on security and defense issues, where there has been no military cooperation between Israel and China since around 2001-2002.

Is there a need for Israel to choose between China and the United States?

No, Israel does not have to choose between the two. It has been managing relationships with both for the past 20 years, maintaining a strong alliance with the U.S. and growing economic ties with China.

What is the current state of the U.S.-China trade war and its potential resolution?

The U.S. and China are planning to meet again in October with the hope of finding a solution. The trade war is complex and has been ongoing for years, but both sides are willing to address major issues such as trade balance and currency manipulation.

What is Ilan Ma'all's view on the U.S. approach to the trade war?

Ilan Ma'all believes that the U.S. approach, led by an impulsive president, is harmful to the global economy and hopes that logic will prevail for a resolution.

How does Ilan Ma'all perceive the balance of trade between the U.S. and China?

He acknowledges that the trade balance is unbalanced and that the U.S. has a point in raising this issue. China is willing to work towards a better balance.

What is the historical context of Israel's relationship with China in terms of trade?

Israel's trade relationship with China started in 1992 with a trade volume of $50 million, which has since grown significantly to over $10 billion.

What is the significance of the statement 'trim doesn't a stand trade' by the former governor of the Israeli banks?

The statement implies that trade should not be disrupted or stopped, suggesting that the current U.S. approach to the trade war is detrimental to global economic stability.

How does Ilan Ma'all suggest Israel should manage its relationships with both the U.S. and China?

Ilan Ma'all suggests that Israel should carefully manage its relationships, being cautious not to be dragged into the economic conflict and maintaining cooperation with China on most economic aspects.

What are some of the major issues that the U.S. and China need to address in their trade discussions?

Major issues include the trade balance, which is unbalanced in favor of China, and currency manipulation, which some argue is not a significant issue despite U.S. concerns.