Why Jews are called Jews

I think that I am understanding the Israel-Arab situation better. The United Nations, Democrat Party, and various others propose a two-state solution. The ppl who live in what would be those two states are against it.

Israel's position is:

So here’s the substance: There are two prerequisites for peace that I laid out two years -- several years ago, and they haven’t changed.

First, the Palestinians must recognize the Jewish state. They have to stop calling for Israel’s destruction. They have to stop educating their people for Israel’s destruction.

Second, in any peace agreement, Israel must retain the overriding security control over the entire area west of the Jordan River. ...

Why do - - why are Jews called Jews? Well, the Chinese are called Chinese because they come from China. The Japanese are called Japanese because they come from Japan. Well, Jews are called Jews because they come from Judea. This is our ancestral homeland. Jews are not foreign colonialists in Judea.

The Palestinian Arabs also have two demands: ethnic cleansing of the West Bank, and unlimited Arab immigration into Israel.

Israel has repeatedly offered a separate state to the Palestinian Arabs, if it would bring peace, but they have rejected it every time.

In short, the Jews want an ethnic state like China and Japan, and the Palestinian Arabs want to exterminate the Jews.