You're saying it can be both? That Israel should not face strong U.S. reactions for its military hardware trade with China? Or that that trade does not matter?
What does your "Yes It can" mean?
It means that you are buying a lot of stuff from China thus supporting its degense and space programs. And these moneys may translate into lost American lives if China attacks Taiwan, since America has a mutual defence treaty with Taiwan. So you see, it's both America and China for you.