A dispute caused when Israel cancelled a Phalcon airborne early warning system deal with China under pressure from the USA has been resolved, allowing Israel's defence and aerospace industries to refocus on China as a potential market.
Israel has paid $350 million compensation to China for cancelling the Elta Phalcon deal. The first sign that relations are returning to normal was the purchase of two Israeli-built communications satellites by a Hong Kong-based company in January.
China is interested in Israeli avionics for a number of fixed- and rotary-wing aircraft upgrades. The Chinese air force also wants to purchase some Israeli weapon systems.
Israeli defence companies have already renewed contacts that were suspended shortly after the cancellation of the Phalcon deal.
India and Singapore are evaluating the Rafael Derby beyond-visual-range air-to-air missile. Both countries have been briefed on the weapon.Source: Flight International
