Had I said the same about any other nation's dealings with China, my comment would have raised no hackles from anyone.
Yes; you said Israel had “close relations” with Red China (characterizing it as an alliance with great depth, implying that Israel is an enemy of the USA since Red China is, via such “close relations”)—and then you changed it to “business dealings” when pressed on it. That’s accusatory, in the first case; anything but prosaic. By claiming that responses are “hypersensitive” says that you were expecting responses that would criticize your characterization of Israel/Red China relations, indeed.
Again, the USA has “business dealings” with Red China, but does that constitute “close relations”? And frankly (and tragically), so does Australia—and their present stance on Israel’s capital reflects how deeply Red China has dug into Australia’s sovereign politics.