Sino-Israeli trade and diplomatic relations have diverged sharply since the outbreak of the regional conflict on October 7, 2023. While bilateral commerce continues to expand, reaching import figures of US $14.7 billion in 2025, Beijing’s diplomatic posture has distanced itself from Jerusalem through key international votes and high-profile meetings with Palestinian factions.
Commercial Expansion Amid Diplomatic Divergence
Bilateral commerce between China and Israel has grown steadily since formal diplomatic relations were established on January 24, 1992, when bilateral trade stood at about US $50 million. By 2018, trade had reached US $11.6 billion, up from US $1 billion in 2001, with Chinese firms entering sectors such as artificial intelligence, semiconductors, and communications networks. Imports from China crossed US $14.7 billion in 2025, while exports to China stood at about US $2.8 billion, creating a trade deficit of nearly US $12 billion. The ongoing conflict has done nothing to dent this commercial activity, as Israel continues to buy increasing amounts of goods from China.
Politically, however, Beijing’s posture shifted immediately after the October 7, 2023, attacks by Hamas on southern Israel. An initial statement issued by Beijing on October 8 urged restraint without naming Hamas. On October 9, Chinese Foreign Ministry spokeswoman Mao Ning stated that China had always been on the side of equity and justice. In mid-October 2023, Foreign Minister Wang Yi told his Saudi counterpart that Israel’s military response in Gaza had gone beyond the scope of self-defense.
Diplomatic Engagement With Palestinian Factions and Iran
In July 2024, Beijing hosted 14 Palestinian factions, including representatives from Hamas and Fatah, and announced an agreement on an interim government for post-war Gaza. Later, in May 2025, China’s ambassador to Israel, Xiao Junzheng, clarified that China opposes and condemns what Hamas did on October 7. By November 2025, when the United Nations Security Council adopted an American Gaza plan, China abstained, arguing that the resolution failed to reflect the principle of Palestinians governing Palestine.
The divergence is equally pronounced regarding Iran, Israel’s principal adversary, where China acts as its largest trading partner and purchases about 90 percent of its oil exports. Wang Yi communicated to Israeli Foreign Minister Gideon Saar that Beijing resolutely rejects Israel’s employment of military action following the June 2025 Israeli strikes on Iranian nuclear and military installations. Prime Minister Benjamin Netanyahu told American state legislators in Jerusalem in September 2025 that Israel faced a siege organized by a few states, naming China and Qatar. In May 2026, Netanyahu stated to CBS that China had supplied components for Iran’s missile production, an allegation that Beijing rejected.
The Impact of the February 2026 Strikes and Regional Responses
A joint American-Israeli campaign on February 28, 2026, killed Supreme Leader Ali Khamenei, prompting Iranian retaliatory attacks on Israel and Gulf states. China’s Foreign Ministry condemned the strike as a grave violation of Iran’s sovereignty. Beijing clarified its dissociation from strikes targeting Gulf countries during subsequent Iranian retaliations across the region, while Wang Yi called on Tehran to take its neighbors’ valid anxieties into account. Israel, which also came under Iranian fire, received no comparable diplomatic consideration from Beijing.
In March 2026, China abstained on a Bahraini-sponsored Security Council resolution targeting Iranian attacks, stating the text failed to reflect the root cause, a reference to the US-Israeli strikes. Ambassador Xiao Junzheng asserted in March 2025 that the Gaza war was not the theme of Israel-China relations, suggesting bilateral ties should operate independently of third-party conflicts. The Chinese embassy condemned members of the Knesset for severely breaching the One-China policy and damaging the political basis of bilateral relations after they held a meeting with Taiwan’s president in May 2026.
Frequently Asked Questions About Sino-Israeli Relations
What is the current trade deficit between Israel and China?
In 2025, Israeli imports from China crossed US $14.7 billion, while exports to China stood at about US $2.8 billion, resulting in a trade deficit of nearly US $12 billion.
How does China interact with Iran economically?
China is Iran’s largest trading partner and purchases approximately 90 percent of Iran’s oil exports.
What diplomatic stance did China take following the February 2026 strikes?
Following the joint American-Israeli campaign that killed Supreme Leader Ali Khamenei on February 28, 2026, China’s Foreign Ministry condemned the operation as a grave violation of Iranian sovereignty.
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