The “two sessions” — annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) — just recently came to a close. If you’re an Israeli entrepreneur or policymaker, you probably should have been watching. 

The “two sessions” are among the most important political events in China. The meetings serve as a window into what is happening in China and what can be expected. This includes decisions that will impact both domestic and international economies. This year is particularly notable because China announced its 14th five-year plan, which for the first time was directly led by President Xi Jinping. If Israeli businesses know where to look and what to look for, this plan can reveal new opportunities.

What has long been hailed as an area where rival nations can find avenues for cooperation is now poised to become the next arena of geopolitical competition. Israeli policymakers should take note. 

According to a 2021 risk assessment recently published by the Eurasia Group political risk consultancy, climate will emerge as the new playground of global power rivalries, with the US and China taking center stage. The experts explain that “across a range of clean technologies—but especially batteries, power control systems, and other commanding heights of the 21st century energy economy—China's longstanding industrial policy approach will be met by its new US counterpart.” This impending scenario is poised to generate significant challenges for Israel as parts of the clean energy supply chain risk coming under decoupling pressures similar to those seen in 5G. 

As the longest-serving prime minister in Israeli history, Benjamin Netanyahu has had a profound influence on the course of Sino-Israeli relations. In March 2009, when Netanyahu returned to the helm for the second time (his first stint as PM being from 1996-99), relations with Beijing and Jerusalem stood virtually dormant. Today, diplomatic relations between the two countries are the widest-reaching since normalization in 1992, with China having emerged as Israel's second-largest trading partner country. 

But as Israel's ties with China grew more robust, they also became increasingly complex. 

Interest-based relationships are paving the road towards a new global reality. While many liberal democracies vie to conserve the 'enlightened' frameworks of the past, others have come to embrace realpolitik. The People's Republic of China and the Russian Federation, for instance, have welcomed the opportunity. The two powers, recognizing this political shift in the early 1990s, have striven to alleviate nationalist friction, understanding that a united front is more practical to surviving the precarious years to come. 

Russian President Vladimir Putin highlighted his approval of the updated pragmatic global climate just last month, matter-of-factly declaring that a Russia-China military alliance is "quite possible to imagine."