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Indeed, Israel’s development of economic relations with China requires deep coordination with Washington, so as
not to allow the former to cause friction in its important and special relationship with the latter. In recent years,
INSS has pointed to a developing crisis with the United States regarding Israel’s relations with China and the need
to strengthen risk management mechanisms.

8. The Regional System

To break the glass ceiling in its relations with the pragmatic Sunni world, especially the Gulf states, Israel must adapt
two parallel efforts: one is marketing Israel’s technological, economic, and defense capabilities that could help these
states in their struggle against destabilizing factors like Iran and in coping with economic and innovation challenges
in their transformation to the 21st century. The second is making significant progress on the Palestinian issue, which
would enable these states to develop deeper and more public relations with Israel.

In parallel and of supreme importance is revitalizing relations with Jordan. Here too, the “fruits of peace” (water,
security, gas, and joint projects) demand political advances with the Palestinians. Such steps would be instrumental
in overcoming the lowest point in relations between the two states since the peace agreement was signed in 1994.

9. Boosting IDF Readiness and Increasing the Defense Budget

Given Iran’s increasing brazenness and its continued entrenchment in Syria, Iraq, and Lebanon, it is necessary to
improve the IDF’s readiness for conflicts in all theaters – Iran, Hezbollah, Syria, and the Palestinian front – all of which
are volatile to varying degrees. It is important to finalize and fund the IDF’s multi-year plan, to begin acquisitions
using FMS funds (which has been delayed for two years), to strengthen capabilities for eliminating Iran’s nuclear
program, to reinforce training and fill stockpiles, and in particular, to work toward formulating suitable operational
plans and strategies vis-à-vis capabilities and modes of action developed by Iran, Hezbollah, and Hamas.

10. Maintaining Superiority

An essential traditional component of Israel’s defense doctrine is maintaining intelligence, air, and technological
superiority over its enemies. Israel must continue to strengthen its relative advantage over its adversaries in cyber
security and artificial intelligence technology, as a way of enhancing Israel’s qualitative military edge and as a central
component of strengthening its deterrence, soft power, economy, and international standing.

Conclusion

After several years of improvement in Israel’s strategic situation, the strategic “window of opportunity,” which was
not utilized sufficiently, appears to be closing. Growing threats require rethinking Israel’s security concept, defense
policy, allocation of resources, and up-to-date strategies.

There are two possible approaches to Israel’s strategy: one is cautious and stabilizing – emphasizing dialogue,
arrangements, and coming to terms with existing and developing threats, in order to neutralize them so that they
are not realized; the second is proactive and preventive-offensive, and addresses and removes the threats but could
lead to war in multiple arenas.

A prerequisite for choosing the right approach is a cohesive internal foundation within Israel, with an emphasis
on social and national solidarity and resilience. At the end of a year of divisive rhetoric, incitement, and increasing
distance between the sectors of Israeli society, the time has come for a different policy. There must be a focus on
action to restore confidence in the institutions of governance, heal rifts, bring different camps together, increase
solidarity, and launch an organized effort to enhance existing social resilience mechanisms and build new ones.

The next Israeli government must formulate an integrated approach that addresses the emergence of significant
threats while simultaneously launching political processes and reaching arrangements to reduce tensions. This will
make it possible to prepare for the significant challenges that threaten the future security and prosperity of Israel.

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