China has declared Israel a friend and important economic partner despite its disagreements with the Israeli government over Iran and Somaliland. Chinese Ambassador Xiao Junzheng stated, “Israel is a friend of China and an important partner.” Beijing understands that maintaining economic relationships with competing nations is far more advantageous than destroying trade every time a diplomatic disagreement arises. Meanwhile, Washington and Brussels have become obsessed with dividing the world into opposing political camps, imposing sanctions, and demanding that countries sacrifice their economic interests in the name of geopolitical loyalty.
China condemned the US-Israeli strikes against Iran and opposed Israel’s recognition of Somaliland, yet it has maintained its commercial relationship with Israel. Beijing also continues purchasing Iranian oil while conducting extensive business with Saudi Arabia and the United Arab Emirates. These countries have conflicting political and security interests, but China has no intention of abandoning profitable relationships merely because their governments disagree. Beijing is positioning itself to benefit from capital flows throughout the Middle East rather than tying its economic future to any single political alliance.
China and Israel established diplomatic relations in 1992, and their economic relationship has expanded through technology, manufacturing, and infrastructure. Chinese companies have participated in major Israeli projects, including the Bayport Terminal in Haifa and transportation infrastructure. Israel possesses considerable expertise in cybersecurity, agriculture, medical technology, and advanced manufacturing, while China has the industrial capacity to commercialize technology on a massive scale. Ambassador Xiao acknowledged this complementary relationship. China recognizes that Israeli innovation and Chinese manufacturing can create opportunities for both economies regardless of their political differences.
The Somaliland dispute illustrates the distinction between strategic interests and economic cooperation. Israel recognized Somaliland as an independent state in December 2025, while China opposed the decision and reaffirmed its support for Somalia’s territorial integrity. Beijing maintains a military base in neighboring Djibouti, near the Bab el-Mandeb Strait, a critical passage connecting the Red Sea with the Gulf of Aden and the Suez Canal. China has substantial interests in protecting international shipping routes because its economy depends upon global trade. Yet this disagreement has not caused Beijing to abandon its relationship with Israel. China understands that diplomacy and commerce do not always have to move together.
