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Chinese Civil War and Israel's War of Independence happened concurrently, during the wars, while the KMT government held a neutral position towards the Arab Israeli conflict, the Communist newspapers were supportive of the Jews, viewing the Arabs as British-supported reactionaries. In March 1949, the KMT government in Guangzhou recognized Israel, and was politely turned down by the Jewish State.

Two months after the foundation of the People's Republic of China, in Jan. 1950, Israel was the first country to recognize it in the Middle East, as the Arab League was hostile to Communist China. On the 13th June of that year, Chinese foreign ministry demanded Israeli delegation in Moscow to set up a formal embassy in China.

However, Israel halted this issue when the Korean War broke out on the 25th of June 1950, citing short of fund as the reason. (Presumably Israel did not want to alienate the United States over China.)

The talks only resumed in in 1953~55. By then several socialist revolutions have broken out in the Arab world, and the new Leftist Arab governments changed their attitude towards China. Obviously, China could not afford to alienate the entire Arab world by establishing diplomatic relations with Israel. In May 1956, China established relations with Egypt. When Israel invaded Egypt, in 1956, during the Suez Canal Crisis China was forced to choose a side. All official ties were cut with Israel.

During the following decades, Israel never recognized Taiwan despite close ties; while China maintained its support of Israel's "Right to Exist" despite their relations with the Palestinians. Still, despite Israeli diplomats using every opportunity to contact their Chinese counterparts, they were all shunned away.

So, what if the Israeli government acted faster in the window of opportunities in 1950, and established relation with China despite potential objections by other western powers? What influence would it make?
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