Moreover, Chen said it is very possible that the United States would suspend its economic assistance for the Palestinians as a kind of punishment.

Over the years, Washington has provided financial aid to the Palestinians to push the PNA into peace talks with Israel.

"Washington is a major mediator of the Israeli-Palestinian conflict. It insists that the two sides should resolve their problems through negotiations, but it is against Palestine's seeking to create an independent country by joining the UN. Therefore, Washington would possibly not continue its financial aid to the Palestinians," Chen told Beijing Review.

Strong response

Observers said as Israel strongly opposes Palestine's status upgrading, it may seize the chance to strengthen its control of the Palestinian territories in addition to economic punishment.

They added that the Israeli-Palestinian relationship has in fact regressed since Israeli Prime Minister Benjamin Netanyahu took power for a second tenure in 2009. The prime minister has since implemented tougher policies toward the Palestinians, including constructing new Jewish settlements in the occupied Palestinian territories.

"Especially after turmoil broke out in the Middle East early last year, Israel felt a much sense of insecurity and its policies became much tougher," said Chen.

Less than 24 hours after Palestine successful statehood bid at the UN, Israel's security cabinet led by Netanyahu declared approval of the construction of 3,000 more housing units in East Jerusalem and the West Bank. It also decided to further the planning procedures of another 1,000 units in settlements, including the section connecting Ma'aleh Adumim, the largest Jewish settlement in the West Bank, and East Jerusalem.

Yin said these planned new settlements, which lie in a pivotal area of the occupied Palestinian territories, will disintegrate the Palestinian land and further jeopardize Palestinian territorial integrity.

"It is an apparent retaliation against Palestine's UN bid. Israel will take this opportunity to continue to creep into the land of a future Palestinian state. And it would bring more difficulties for the Palestinians to create an independent country of their own," Chen said.

However, the consolation is that Israel's settlement expansion plan was strongly opposed by members of the international community, including its closest allies like the United States and Britain. Britain, France and Sweden have summoned Israeli ambassadors for clarifications over the Israeli Government's planned expansion of settlements and are contemplating further punitive measures.

"The ultimate settlement of the Israeli-Palestinian conflict rests on the two sides' ability to actively pursue negotiations with a conscientious and pragmatic attitude. Only in this way will positive progress be made at an early date," said Yin.

In the statement after voting in favor of the draft resolution calling for Palestine's UN non-member observer state status, China's permanent representative to the UN Li Baodong said China supports the Palestinian membership in the UN and other international organizations and expresses its understanding and support for the request of Palestine to become an observer state at the UN.

"Gaining independent statehood is a legitimate right of the Palestinian people; it is the basis and pre-requisite for the realization of the two-state solutions with the two countries standing peacefully side by side," Li said.

But Li also stressed that China hopes parties concerned will resolve their disputes through political negotiations on the basis of relevant UN resolutions, the "land for peace" principle, Arab peace initiatives and the roadmap for peace in the Middle East, so as to establish an independent state of Palestine.

Yin, however, remains prudent about the resolution of the Israeli-Palestinian conflict.

"I am not so optimistic. For the Palestinians, the top priority is to restore national unity and achieve national reconciliation. The Palestinians need a stable and united government, which could add weight in their negotiations with Israel," Yin said. "On the other hand, Israel doesn't want to have peace talks with a divided Palestine when the Palestinians still cannot reach internal consensus."

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