Journal of Peace and Diplomacy

ISSN (E): 2959-0272

ISSN (P): 2710-0502

DOI: https://doi.org/10.59111/JPD.004.01.037

Volume 4 Issue 1 Year 2023

A New Path to Peace: China’s Economic Development Strategy

in the Middle East

Ramsha Kalhoro
Student, International Islamic University Islamabad, Islamabad, Pakistan
[email protected]

Syed Fakhar Ul Hassan

Student, Karakorum International University, Gilgit, Pakistan
[email protected]

ABSTRACT

China has been engaged in many economic initiatives, like investing in Israeli high-tech
start-ups, promoting tourism and developing infrastructure. The purpose of China taking
these initiatives is to make better economic connections with countries to facilitate the
peace-building process. China is using this economic strategy to resolve the conflict
between Israel and Palestine in contrast to the traditional diplomatic approach used by the
United States. The above-mentioned economic development strategy of China creates a
loop where good economic relations will lead to peaceful coexistence and economic
prosperity. Therefore, this research aims to explore the “how” factor to understand the
contribution of innovative strategy, based on economic incentives, to resolving conflicts

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specifically between Israel and Palestine. This research thoroughly analyzes China's
economic development strategy for its relevance to conflict resolution in the Middle East.
The study utilizes primary and secondary sources, including existing literature, policy
documents, official statements, case studies, and data analysis. Special attention is given
to the complex political landscape of the Israel-Palestine region, considering the
involvement of various external actors and the deep-seated feelings of distrust between
Israel and Palestine. The paper adopts a comprehensive approach to assess China's
strategy as a potential avenue for conflict resolution.

Keywords: Economic Development, Israel-Palestine conflict, China, Innovative Strategy,

Peace Promotion

Introduction

Recently, the idea that economic development fosters interdependence among

nations, ultimately facilitating conflict resolution, is gaining popularity. The theory posits
that offering economic incentives, such as enhancing trade and investments, promoting
tourism, and building infrastructure, makes states engaged in a conflict more inclined to
opt for peace over violence.

This approach focuses on building better economic linkages among states. That
mutually beneficial economic connection would then create a loop where peace leads states
towards economic prosperity, subsequently leading to peaceful coexistence.

Considering this concept and the conflict between Israel and Palestine, China is
playing a prominent role by offering economic incentives in the region to facilitate the
peace-building process. Moreover, this unconventional method also questions the pre-
existing conventional peace promotion techniques employed by the US. According to the
new economic development techniques, China has made large investments in Israeli high-
tech businesses (acquisition of VisualLead and Infinity Augmented Reality Israel Ltd by
Alibaba), encouraged tourism in the West Bank (Jericho and Ramallah cultural displays)

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and has emphasized infrastructure development (Red-Med Railway and Solar Power
Installation).

The economic development strategy used by China as a technique to resolve

conflicts, particularly the Israel-Palestine conflict challenges the traditional diplomatic
approach taken by the US which was political and negotiation-based. Therefore, China’s
method not only brings economic prosperity and peace but also provides states with
considerable and long-term benefits. This is because economic incentives open up new
channels for involved states to collaborate, build trust and increase predictability.

Nonetheless, it is also critical to recognize the limitations and challenges that arise
while implementing an economic development strategy. The political and social
impediments may be difficult to overcome. Despite that, China’s economic growth strategy
is worth considering as a fresh and viable alternative to settling the Israel-Palestine issue.

Complex Interdependence theoretical framework

Considering the evolving role of economic factors in conflict resolution, this

research paper uses a Complex Interdependence theoretical framework to study the
significance of economic development strategy to cause countries to become
interdependent to reduce the likelihood of a conflict.

The Complex Interdependence theory was developed by Robert O. Keohane and Joseph
S. Nye and surpasses the traditional realist notion. The major assumptions of the Complex
Interdependence theory are:

i. States are connected through multiple channels such as cultural, social, and
economic interactions. These channels go beyond the traditional channels related
to military and security (Multiple Channels of Interaction).

The assumption suggests that there are many fronts on which each state interacts with
the other extending beyond the traditional security matters. In today’s international system,
diplomatic relations and cultural exchanges are also quite significant. In the case of China,
its heavy investment in Israeli high-tech startups illustrates the multiple channels of
interaction involving economic ties, technological collaboration as well as strategic

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investment in cutting-edge Israeli startups. Moreover, China’s focus on tourism promotion

also showcases how China is utilizing multiple channels of interaction including cultural
exchanges and cultural understanding between different countries. In addition to this,
China is also focused on developing infrastructure (railways, ports etc.) demonstrating
forms of interaction other than military and security. All these actions taken by China create
a complex network of interactions.

ii. There is no clear hierarchy in various issues on the international agenda in which
military security is not the only aspect; however, there are some other factors as
well such as economic interdependence and cultural ties (Absence of Hierarchy in
Issues).

The issues are interconnected, and no single issue dominates the international system
contrasting the traditional view where the military was a primary driver of the international
system. Therefore, the Chinese investment in Israeli high-tech startups also shows a lack
of hierarchy suggesting that economic and technological cooperation is equally important.
In addition to this, China’s tourism in the Israel-Palestine region also reflects a lack of
hierarchy by extending from economic considerations to cultural appreciation and
understanding. Also, China’s focus on the development of infrastructure falls under the
use of non-military instruments to achieve economic growth and peace.

iii. The non-military instruments are powerful and influential for states to rely on for
the achievement of their goals. Economic leverage and international institutions are
some of the examples of non-military instruments (Use of non-military
instruments).

The final assumption focuses on soft power and economic instruments; therefore,
China is also focusing on non-military instruments in the region to achieve its objectives.
The tourism-related initiatives taken by China such as investment in tourism infrastructure,
cultural exhibitions and events serve to promote cooperation.

Israeli startups, promoting tourism and developing infrastructure, presenting a new

approach to end the ongoing conflict. This approach perfectly aligns with the assumptions
of Complex Interdependence showcasing the importance of economic development in the

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international system. That being said, this paper further explores the significance of China’s
economic strategy and recognizes that the new approach of China can serve as a catalyst
for peace and stability for a few reasons, challenging the traditional approach employed by
the US in political negotiations.

Research design

To examine the impact of China’s strategy of economic development, this research

paper uses a mixed-method approach by analyzing China’s initiatives such as investment
in high-tech startups, tourism etc. in Israel. The analysis is conducted by reviewing
literature, policy documents, investment reports, and official statements along with case
studies and data analysis to support the main idea.

China's Investment in Israeli High-Tech Start-ups and Its Potential

Impact on Peace

China has recently been investing heavily in Israeli high-tech startups, which have
been a key driver of the country's economic growth and innovation. According to data from
the Israel Innovation Authority, Chinese investors poured nearly $1.5 billion into Israeli
startups in 2020, making China the largest source of foreign investment in Israeli tech. 1

Figure 1: Chinese Investments in Technologies

1
Shira Efron, Karen Schwindt, and Emily Haskel, “Chinese Investment in Israeli Technology and
Infrastructure: Security Implications for Israel and the United States,” www.rand.org, April 7, 2020,
https://www.rand.org/pubs/research_reports/RR3176.html.

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Source: INSS2

In 2015, Chinese e-commerce giant Alibaba, with a market value of $457 billion,
entered Israel’s Startup market when it bought Visualead, a Tel Aviv-based startup known
for unique quick Response codes (worth around $457 billion).3

Alibaba later acquired Infinity Augmented Reality Israel Ltd. in 2019, an artificial
reality technology development company based in Ramat Gan. Alibaba had made two
purchases in Israel with this one.4

Additionally, in 2020, Alibaba invested $200 million in "Locus View," which is an

Israeli company specializing in digital construction management systems. 5 This is how

2
Doron Ella, “Chinese Investments in Israel: Developments and a Look to the Future,” Inss.org.il, February
1, 2021, https://www.inss.org.il/publication/chinese-investments/.
3
Shoshanna Solomon, “Chinese Giant Alibaba Acquires Israeli Artificial Reality Startup,”
www.timesofisrael.com, March 24, 2019, https://www.timesofisrael.com/chinese-giant-alibaba-acquires-
israeli-artificial-reality-startup/.
4
Ibid.
5
Orion, Assaf, and Galia Lavi. “Israel-China Relations: Opportunities and Challenges.” The Institute for
National Security Studies, August 2019. https://www.inss.org.il/wp-
content/uploads/2019/08/Memo194_4.pdf.

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Alibaba benefited from Locus View’s expertise and improved its position in the
construction industry. Furthermore, Playtika, an Israeli social game startup, received a $150
million investment from Tencent, a multinational Chinese company. 6

Similarly, China’s engagement with Israeli AI startups has been conspicuous, with
significant moves like Baidu (the Chinese tech giant) establishing an AI Research Centre
in Tel Aviv and extending investments to Israeli AI enterprises such as Taboola and
Pixellot.7

Israel is recognized for its innovative technology, skilled labor force, and
diplomatic ties with the United States. Therefore, China is interested in Israeli startups
because it knows its investment would be highly beneficial having the potential to create
prospects of jobs and maximize economic growth.

A positive ripple effect may also come from that - reconciliation and stabilization.
That being stated, the benefit is not assured due to concerns that this same globalization
may wreak havoc by fueling an already sore controversy in the West Bank in Palestine
where many of these start-ups are located, – known to be illegitimate under international
protocol. Conflicts arising from such investments could potentially ignite further tensions
between Palestine and Israelis. Morally, obligations towards causing stability over chaos
differ widely between China and its counterparts.

Throughout history, Western competition has been evident in the coercive

investments made in Israeli businesses, despite their shared goals. Historically, Israel has
relied on the US as a strategic ally, receiving support from the US both financially and
militarily. However, several large corporations have decided to reevaluate their investments
in the region because of growing public scrutiny of the US government's support for Israel's
West Bank settlements.

6
Robyn Mak, “With Purchase of Israel’s Playtika, Chinese Investors up Their Game,” Haaretz, August 1,
2016, https://www.haaretz.com/israel-news/business/2016-08-01/ty-article/chinese-investors-up-their-
game-purchase-israels-playtika/0000017f-ef8b-d497-a1ff-ef8b05250000.
7
David Shamah, “China’s Baidu Invests $3 Million in Israeli Start-Up,” www.timesofisrael.com, December
8, 2014, https://www.timesofisrael.com/chinas-baidu-invests-3-million-in-israeli-start-up/.

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China, in contrast to the United States, is emphasizing better economic ties between
Israelis and Palestinians by supporting regional Israeli business owners, while maintaining
a more neutral position on the issue. To end the ongoing conflict, it seems like an interesting
new approach; however, it comes with its challenges.

China's Use of Tourism as a Means of Promoting Economic Development

and Peace in the West Bank

Tourism, being part of China’s economic development strategy, has always been a
primary focus for supporting economic growth and mutual understanding. In the West
Bank, China has been engaged in a big tourism project in the ancient city of Jericho. 8 The
project comprised of constructing hotels, conference centers, and a large commercial
complex. Also, China has made significant investments in the development of Bethlehem
Industrial where Chinese enterprises are recruited and the local economy is promoted. 9

To highlight the region’s rich culture, China has organized many events and
displays in the West Bank. In Ramallah, China previously organized a cultural show where
Chinese and Palestinian cultural items were incorporated to promote understanding and
collaboration between the two cultures. 10

Tourism promotion is a very important part of China’s strategy because it promotes

job opportunities, and local economies and improves the quality of life for West Bank
citizens leading towards economic growth and peace in the region. Moreover, China’s
cultural tourism programs may help to achieve peace by developing mutual understanding
and respect among many cultures.

8
Friedrich-Ebert-Stiftung (FES), “TOURISM in EAST JERUSALEM: Indicators and Implications for
Spatial Planning,” 2020,
https://palestine.fes.de/fileadmin/user_upload/Publication_1/IPCC/IPCC_2020/Tourism_in_East_Jerusalem
_2020s.pdf.
9
Bethlehem Museum of the Palestinian Heritage, “Home,” Bethlehem Museum of the Palestinian Heritage,
accessed December 24, 2023, http://www.bmipbethlehem.com/.
10
The Arab Weekly, “Ramallah Exhibition Presents Historical ‘Palestine from Above,’” AW, September 18,
2021, https://thearabweekly.com/ramallah-exhibition-presents-historical-palestine-above.

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However, in the context of the Israel-Palestine conflict, the influence of tourism can
be complex to understand. It is commonly believed that tourism has the potential to
promote economic progress and peace, but it may also unintentionally worsen the
underlying political and social issues when it comes to the Israel-Palestine issue. Since
tourism draws one’s attention to notions such as territorial control and ownership, it may
reinforce land and resource disputes.

In contrast to China, the focus of the US was more on religious tourism in the region
by emphasizing visits to Christian holy sites. Moreover, the construction of the airport of
Eilat in Israel was also funded by the US signifying US emphasis on tourism
infrastructure.11

The major limitation to the promotion of religious tourism must be recognized.

Religious tourism does encourage dialogue and understanding across religions. There's a
risk that this could unintentionally fuel existing regional political and religious divisions.

While Christian landmarks hold great significance, neglecting the cultural value of
other religious institutions creates an imbalance in the narrative. Promoting religious
tourism with inclusivity as a guiding principle is the way forward for understanding and
appreciation of human spiritual expression. China’s promotion of cultural tourism in this
regard is more inclusive than US to promote regional economic growth and peace. China's
approach, which bring to light the cultural legacies of different ethnic groups in the West
Bank, increases awareness of the region's unique history and culture.

Developing Infrastructure as Means of Promoting Economic

Development

With the goal of encouraging peace and prosperity, China is directing major
infrastructure projects like the RedMed railway. 12 This initiative, navigating Israel and the

11
U.S. Embassy in Israel, “Fact Sheet U.S. – Israel Economic Relationship,” U.S. Embassy in Israel, accessed
December 24, 2023, https://il.usembassy.gov/our-relationship/policy-history/fact-sheet-u-s-israel-economic-
relationship/.
12
Salem Y. Lakhal and Souad H’Mida, “Author the Red-Med Railway Project a Serious Competitor to the

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West Bank, aims to improve trade and communication connections, potentially leading to
positive economic and social impacts in the region.13 Like this, China is also working on
establishing industrial parks in the West Bank city of Jenin. It will increase job prospects
for the population of the West Bank.

Figure 2: Israel-Palestine Region

Source: Encyclopedia Britannica14

Suez Canal for Cargo Containers?,” Independent Journal of Management & Production 8, no. 3 (September
1, 2017): 898, https://doi.org/10.14807/ijmp.v8i3.619.
13
Tom Selwyn and Rami K. Isaac, Chapter “Towards the Future of Tourism and Pilgrimage in Bethlehem,
Jerusalem and Palestine”. In the Politics and Power of Tourism in Palestine, 1st ed. (Routledge, 2015), 197–
216.
14
The Editors of Encyclopedia Britannica, “West Bank | Definition, History, Population, Map, & Facts,” in
Encyclopædia Britannica, January 30, 2019, https://www.britannica.com/place/West-Bank.

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In addition, The China Harbour Engineering Company (CHEC) was committed to

developing a port of Haifa in Israel that was designed to serve as a gateway for goods
entering and departing the West Bank.15 It means the purpose of this initiative is to improve
regional trade and economic activities.

Furthermore, China has been involved in various infrastructure development

initiatives, such as the completion of a solar power installation in June 2023. The project
was initially signed in the presence of two presidents, as mentioned by Mohammed
Mustafa, President Abbas' economic adviser. China is fostering connectivity and economic
activities between the states through other related projects, including the manufacturing of
solar panels, a steel plant, and road infrastructure. 16

Remarkably, China hopes to foster regional peace by building infrastructure in

addition to advancing economic growth and stability in the area. This will lead to the
creation of new jobs and economic advancement in the participating countries,
which will reduce poverty and improve living conditions.

Initiatives for infrastructure development also help to change the hostile

atmosphere into one that is more favorable for peace negotiations between Israel and
Palestine. It means that by giving the governments of those countries a chance to
collaborate and coordinate, such projects catalyze the development
of diplomatic relations and trust.

The most important advantage of China's engagement in these initiatives is that

they could improve trade, infrastructure, and the Middle East's overall regional
development offering substantial security and stability guarantees.

15
Grace M. Lavigne, “China Wins Tender to Build Port in Israel | Journal of Commerce,” joc.com, June 20,
2014, https://www.joc.com/article/china-wins-tender-build-port-israel_20140620.html.
16
Joe Cash, “China Offers ‘Chinese Wisdom’ over Palestinian Peace Talks, to Fund Projects,” Reuters, June
13, 2023, sec. World, https://www.reuters.com/world/china-attaches-great-importance-palestinian-issue-
supports-peace-talks-foreign-2023-06-13/.

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In contrast to China's approach, the US was more focused on providing military

assistance to Israel which later contributed towards establishing Israeli military dominance
in the region.17 The approach of the United States was very limited because it didn’t have
any impact on economic development. In addition to this, US has been hesitant to develop
infrastructure in Palestine and Israel, thereby stifling economic growth and employment
prospects. China's infrastructure projects, on the other hand, are more inclusive including
both Israel and Palestine within the scope of its economic development strategy.

While the impact of strategy on conflict is yet to be seen; however, the projects
undertaken by China have immense potential to produce opportunities for economic
growth and cooperation for a more stable and peaceful environment.

Challenges and Limitations of China's Economic Development Strategy

in Resolving the Israel-Palestine Conflict

Undoubtedly, China is doing a decent job of utilizing economic development to aid

in the resolution of the Israel-Palestine conflict, but it's important to consider the challenges
and constraints this strategy entails. Decades of animosity have resulted from political,
religious, and cultural disparities between Israel and Palestine. There is little doubt that
a wide range of regional and international actors have an impact on the Israel-Palestine
conflict, further complicating matters. China's recent hyper engagement in the region has
made some skeptical of its role as a non-traditional mediator in the region. Some
argue that China might eventually change its stance due to its substantial economic
interests. China's economic expansion strategy in the region has led to a complex political
situation.

China's social environment presents another obstacle to its economic policy in the
Israel-Palestine region. Since the conflict has been going on for decades, as was previously
mentioned, the people in the area have also suffered greatly, leading to long-
standing resentment and a lack of trust between Israel and Palestine. China's strategy

17
Kali Robinson, “What Is U.S. Policy on the Israeli-Palestinian Conflict?,” Council on Foreign Relations,
May 27, 2021, https://www.cfr.org/backgrounder/what-us-policy-israeli-palestinian-conflict.

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required cooperation and coordinated efforts to successfully implement its programs, so

Israel and Palestine's lack of trust presents a big obstacle.

Comparably, to end the conflict, the US encountered social and political obstacles
as well. It is also commonly assumed that USA's bias towards Israel undermined its
credibility as a mediator.18 Additionally, a mediator must take the conflict's socioeconomic
background into account. Above all, a successful mediator, be it US or China, should
prioritize building mutual respect and cooperation between the Israelis and the Palestinians.

Above all, China appears to have a very promising strategy if carried out
correctly. China has to take the region's complicated political and social environment into
account for it to be implemented successfully. 19 While economic prosperity can be a
valuable tool for peacebuilding, addressing the underlying causes of conflict remains
crucial. Sustainable peace requires tackling deep-seated issues beyond just alleviating
financial struggles.

Regional Perspectives and Criticisms

Understanding the complicated perspective on China's economic strategy in the

Middle East requires consideration of regional concerns, government assessments, and the
views of academic and civil society organizations. Evaluating China's influence and its
potential impact on stability necessitates a balanced approach.

The debate surrounding China's approach to the Israel-Palestine region centers on

the potential trade-offs between economic engagement and promoting human rights and
democracy. Critics voice concerns that the former could mistakably encourage

18
Ibid.
19
Assaf Orion and Galia Lavi, “Israel-China Relations: Opportunities and Challenges” (The Institute for
National Security Studies, August 2019), https://www.inss.org.il/wp-
content/uploads/2019/08/Memo194_4.pdf.

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authoritarian regimes and obstruct democratic aspirations. Analyzing the potential

consequences of both perspectives is essential in this regard. 20

Some stakeholders express concerns about the impact of China's large-scale

infrastructure projects in the region They do recognize the importance of infrastructure
development as beneficial for the economy; but they, on the other hand, are also concerned
about the environmental and resource harm that could be caused because of those
initiatives. For instance, The Belt and Road Initiative (BRI), which includes many Middle
Eastern Projects as well, has been condemned for potential environmental damage—
deforestation and increased carbon emissions.21

In addition to this, some Western countries are also concerned about China’s
investments in Israeli high-tech firms. According to those countries, it is concerning to
allow China to access advanced technology because it indirectly threatens their national
security and intellectual property rights. It can better be observed by looking at the US
establishing stricter laws and screening procedures so that China could not access that
crucial technology.22 Notably, it is because those countries don’t want China’s capacity to
gain a competitive advantage in critical industries through technology transfer.

In terms of Middle Eastern Countries, they often question China’s long-term

involvement in the region. Since China has been providing loans and grants to Middle
Eastern countries, it may lead the recipient countries to become financially vulnerable and

20
Sovinda Po and Kearrin Sims, “The Myth of Non-Interference: Chinese Foreign Policy in Cambodia,”
Asian Studies Review, February 24, 2021, 1–19, https://doi.org/10.1080/10357823.2021.1887813.
21
Piccirilli Dorsey, “Exploring the Environmental Repercussions of China’s Belt and Road Initiative | Article
| EESI,” Eesi.org, 2018, https://www.eesi.org/articles/view/exploring-the-environmental-repercussions-of-
chinas-belt-and-road-initiativ.
22
Jon Bateman, “U.S.-China Technological ‘Decoupling’: A Strategy and Policy Framework,” Carnegie
Endowment for International Peace, April 25, 2022, https://carnegieendowment.org/2022/04/25/u.s.-china-
technological-decoupling-strategy-and-policy-framework-pub-86897.

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economically dependent on China. These concerns are rooted in the fact in Pakistan and
Sri Lanka, Chinese investments became a major issue previously. 23

In contrast, certain stakeholders have also supported China’s objectives of

economic development in the Middle East because they consider China a very important
partner with the potential to promote stability and economic growth in the region.
According to them, the non-interference policy of China is a very good feature that allows
other countries to pursue their development paths without any external interference.

Additionally, Chinese Infrastructure investments have also been welcomed by

several Middle Eastern countries despite criticisms. The infrastructure initiatives have
resulted in the fulfilment of critical development means of the region. Also, certain
initiatives have contributed to regional connectivity. For example, China and Middle
Eastern countries have been enjoying the benefits of increased trade and economic
24
integration which became possible by the expansion of ports and transport networks.

Beyond economic engagement, China has actively promoted understanding and

cross-cultural ties through initiatives like scholarship programs and establishing Confucius
Institutes. These efforts provide opportunities for Middle Eastern students to study in China
and engage in academic and cultural exchange, promoting deeper connections between
people.25

Understanding China's Position amidst the ongoing War between Israel

and Hamas

23
The Times of India, “Sri Lanka, Pakistan, Maldives Stand Neck-Deep in Chinese Debt: Forbes,” The Times
of India, September 12, 2022, https://timesofindia.indiatimes.com/business/international-business/sri-lanka-
pakistan-maldives-stand-neck-deep-in-chinese-debt-forbes/articleshow/94151865.cms.
24
Assaf Orion and Galia Lavi, “Israel-China Relations: Opportunities and Challenges” (The Institute for
National Security Studies, August 2019), https://www.inss.org.il/wp-
content/uploads/2019/08/Memo194_4.pdf.
25
Ibid.

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On the 7th of October, some members of Palestinian militant group Hamas (in
Gaza), initiated an attack on Israel, and the incident resulted in approximately 1400
casualties and more than 200 abductions. In response, Israel started bombardment of Gaza
leading to the loss of thousands of Palestinian lives. The war has intensified and created
global concerns and calls for ceasefire with the massive killing of people by the Israeli
bombing including children in Palestine. In this tense situation, many world leaders’
responses have unfolded either in support of Palestine or Israel. For instance, US President
Joe Biden not only condemned Hamas attacks but also supplied two carrier strike groups
and 2,000 troops in support of Israel. Whereas the United Kingdom (UK) Prime Minister
Rishi Sunak, French President Emmanuel Macron, and Japanese Foreign Minister Yoko
Kamikawa also engaged. Also, Egypt and Qatar demanded an immediate ceasefire and the
release of Hamas Captives. In contrast to the reaction of world leaders, China has followed
a line. Since it has asked for a ceasefire as well as criticized the massive human destruction;
however, its response is quite different than those taken by other world leaders.

While China did send its Middle Envoy to the region showing that China is
diplomatically engaged; however, neither Xi nor Wang Yi visited the region personally.
Moreover, in the statement of Wang Yi, he said that it must not be overlooked that
Palestinian people were facing injustice being the root cause of the conflict. Therefore,
justice must be served to them first.

Historically, Beijing has always considered the Palestinian issue as part of the
global national liberation movement. However, China's growing engagement with the
international community also comprised Israel. Recently, China has engaged with the
United Nations Security Council for immediate resolution of the conflict. Also, it
condemned the US for vetoing the Brazilian resolution proposal calling for a humanitarian
pause to allow aid into Gaza. Furthermore, China and Russia, in response, also vetoed the
US draft affirming Israeli rights to defend itself and accused Israel of going “beyond the
self-defense.”

Conclusion

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In short, the strategy used by China to use economic development as a tool to

resolve international conflicts specifically the Israel-Palestine conflict is indeed an
innovative and fresh perspective on conflict resolution. The fresh economic approach
doesn't just question the conventional methods the United States has typically employed
for conflict resolution; it also presents a novel and promising route to achieving peace. It
is because the new initiatives taken by China such as investments in Israeli high-tech
startups, tourism promotion and infrastructure development create complex dependence of
Israel and Palestine on China and vice versa resulting in reduced probability of war and
ultimately facilitation of peace in the region.

While China's economic approach to peacebuilding in the Middle East holds

promise, it faces several critical hurdles. The region's complex political situation, already
stalled in external involvement, casts doubt on China's neutrality and mediation potential.
Decades of conflict between Israel and Palestine further add layers of mistrust and impede
potential economic collaboration. Critics raise concerns about prolonging human rights
abuses through unconditional investments, environmental damage from infrastructure
projects, and national security risks for Western states due to China's high-tech investments
and potential debt traps for developing countries. To tackle these challenges and connect
the potential benefits of economic peacebuilding, a careful weighing of interests and
approaches is essential.

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