Israel Considers Adopting Chinese Defense Industrial Model Amid US Supply Challenges

Israel's Ministry of Defense is reevaluating its military procurement and armament policies, drawing inspiration from China's industrial-defense model. This shift follows difficulties in securing ammunition supplies from the United States and aligns with Prime Minister Benjamin Netanyahu's plan to increase the defense budget by 350 billion shekels over the next decade. A confidential internal document from the Defense Export Administration titled "China's Technological and Industrial Policy" recommends implementing some Chinese principles in strengthening Israel's military capabilities.

The document highlights disappointment with the traditional reliance on the US, Israel's main ally, especially in light of the ongoing Ukraine war and tensions with Iran. It argues that future great power conflicts will depend less on army size and more on industrial resilience and secure supply chains capable of sustaining prolonged warfare. The authors note that Washington lags behind Beijing in preparing for future military confrontations, pointing to China's development of a powerful hybrid system that mobilizes the market to serve political and military goals.

While acknowledging potential downsides such as reduced innovation and resource inefficiency, the Ministry of Defense stresses that a broad industrial base will determine international power dynamics. This perspective leads to a new approach prioritizing "resilience over efficiency," contrasting with the Western focus on cost-saving and economic efficiency. The document concludes that the West can no longer rely on free market mechanisms against China's hybrid system, which subordinates the market to party objectives.