The Jerusalem Post writes: "Twenty years ago today, China and the Jewish state established official diplomatic relations. One of the main challenges facing Israel is developing non-military trade with China, which will soon become the world’s largest economy. Bilateral trade, which in 1992 was worth $60 million, is now worth about $8b. a year, one-third of which is Israeli exports to China. More than 1,000 Israeli companies operate in China and there is cooperation in the fields of industrial R&D, water, biotechnology and pharmaceuticals. A consulate was opened in the southern city of Guangzhou, and another is planned for Chengdu. Unfortunately, one area in which China’s interests are at odds not only with the US’s but also with Israel’s involves Iran’s nuclear program. But China’s ties with Iran must not be misconstrued as expressing Beijing’s identification with Iranian belligerence. Rather, it is a tactical move against US influence in the region. But China is an economic powerhouse that Israel simply cannot afford to ignore. Hopefully, the Iranian crisis will be resolved peacefully so that mutually beneficial economic interests shared by Jerusalem and Beijing can be pursued against the backdrop of a stable, safe Middle East."
Yediot Aharonot analyzes the Iranian situation in light of the EU’s decision to impose an oil embargo on Iran, effective July 1st. The author notes that the embargo is the next stage in the regime of economic sanctions on Tehran and suggests that "the sanctions are biting into the living flesh of the Iranian economy and are weakening it on a daily basis; their cumulative effect is crushing." The paper says that the sanctions will greatly impede Iran’s efforts to invest further in its nuclear program even if they do not yet threaten the present regime directly. However, the author asserts that the Iranian people’s patience will eventually wear thin in the face of deteriorating economic conditions.
Two papers discuss the controversy over the settlement outpost of Migron:
Yisrael Hayom believes that "extremist settlers, who have succeeded in infecting a considerable part of their community with the refusal virus, do not want the [proffered] compromise," and adds that they have their supporters within the Likud, as do those who support the compromise. The paper asks, "Who will explain to the West that Israel is still democratic if the government cannot carry out the rulings of the Supreme Court?" The author says, "In the end, the Likud will have to decide for itself what it is to be. Will it more resemble [National Union MKs] Yaakov Katz and Michael Ben-Ari, or will it be worthy of its founding fathers? Who is it? Benny Begin and Dan Meridor or Yariv Levin? The answer will be given at Migron."
Haaretz comments: "With the deadline of the High Court of Justice order to evacuate the Migron outpost looming, PM Netanyahu has offered the settlers a compromise. It would involve moving the community’s permanent homes, which are on privately-owned Palestinian land, to an adjacent tract that was previously declared ‘state land’. As a prize for agreeing not to engage in violence against the Israeli security forces who are responsible for enforcing the court order, these criminals would receive the land for free, and without a tender. It has been almost seven years since the cabinet adopted attorney Talia Sasson’s report on the outposts. The removal of the outposts, as specified in the road map, was to have been a cornerstone of trust-building with the Palestinians in preparation for negotiations on a final-status agreement. Instead of conducting humiliating negotiations with the Migron squatters, the government must now evacuate all the outposts – without delay, and without exception."
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Ma’ariv refers to Eastman Kodak Co., which recently filed for bankruptcy, and asserts, "The photography equipment giant did not adapt itself to changes and fell." The author believes that "the artificial protection of local manufacturers will lead to their fall, sooner or later," and bids the Knesset take heed, especially as the next election approaches. The paper concludes, "The Israeli Government, like any business company, must adapt itself to a changing economic world, utilize its relative advantages and open the market to competition."