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They should at the very least say “we condemn this and are looking into reducing trade with Israel until it shows commitment to peace in the region” or something.

China doesn't like to take "political action" against countries though, in part for neutrality and in part to keep itself open to capitalists investments in China, seeing them as stable.

They did however raise the risk of investing in the colonist entity to the maximum level right after the genocide against Palestinians re-intensified, meaning their companies can't invest there or do any long term deals with them, but we only heard about it recently when a contract couldn't be completed with a Chinese company because they can't invest there. And considering they did it once it's quite possible that a few more countries will be considered riskier to invest in due to the attacks against Iran. Perhaps even the whole of europe included due to rise in prices of fuels.