The Israeli occupation is grappling with increasing setbacks, facing losses on both the military and economic fronts in the aftermath of ‘Operation Iron Swords’ initiated by the extreme right-wing government led by Benjamin Netanyahu on October 7th. The most recent blow involves challenges encountered by advanced technology factories in Israel that import components from China.
Modern towers in Tel Aviv’s downtown (Source: Shutterstock/Albawaba)
Israeli Economic Woes
Reports from Israeli importers, as cited by Yedioth Ahronoth newspaper, indicate that China is now imposing bureaucratic hurdles on shipments bound for Israel. While not explicitly announcing sanctions on components with dual civilian and military applications, this move is seen as a response to the Israeli military operation in Gaza. During the conflict, the Chinese government, led by President Xi Jinping, notably adopted a pro-Palestinian stance. High-ranking Israeli occupation officials revealed that Beijing refused to send workers to Israel, citing a shortage of labor in the construction and agriculture sectors.
JPMorgan, the American bank, has predicted an 11% contraction in Israel’s Gross Domestic Product (GDP) for the current quarter every quarter due to the escalation of ‘Operation Iron Swords,’ according to CNBC Arabiya. Importing through third-party channels has resulted in increased costs and delayed delivery times for Israel. Importers explain that Chinese suppliers are now demanding the completion of numerous forms, leading to shipment delays under the pretext of incorrect form filling. This has caused significant difficulties in obtaining essential supplies. A source from one of the affected factories highlighted the complexity of the situation, emphasizing that an electronic product comprises tens of thousands of components. The failure of any of these components to arrive disrupts the entire supply chain, rendering the production of the product impossible.
The Israeli occupation’s economy is facing escalating challenges, reflecting the multifaceted impact of the conflict on various sectors within the country, both in terms of military operations and economic repercussions.
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