For most of the past 20 years, China was chiefly interested in Israeli military technology and Israel became its second largest foreign source of arms. The latest military deal between the two states was the subject of much publicity during Jiang s visit. The tenor and content of a number of U.S. and Israeli press reports suggested that the respective governments were playing out their dispute, in part, through friendly journalists, before and during Jiang s trip. The U.S. wants Israel to cancel the deal, saying that the aircraft will strengthen China s ability to attack Taiwan. Israel denies the U.S. claims.
China wants Israeli technology and Israel sees in China a large market.
Israel officially remained committed to delivering the first plane to China this summer and letting it exercise its option to order up to six more. However, some face-saving compromise will no doubt be found, if it hasn t been already. The formula will undoubtedly allow for a partial arms deal with the Chinese. This could allow the sale of the first plane to go ahead, but restrict follow-up sales. The fly in the ointment, as far as Israel is concerned, is that Washington remains wary even of this more limited deal, maintaining that China is capable of copying the technology used in the first plane.