"Maariv", an Israeli Hebrew-spoken daily newspaper, has reported that officials in the administration of US President Joe Biden encouraged the head of the Israeli National Security Council, Eyal Hulata to cut economic relations between Tel Aviv and Beijing.
The newspaper said that during Huloata's visit to Washington, officials in the Biden administration spoke with the latter about the threats posed by Chinese investments in large infrastructure in Israel.
And US officials urged Israel to establish a stronger system for screening foreign investment.
Senior Israeli security officials have recommended Prime Minister Naftali Bennett to form a new committee to oversee foreign investment in Israel, in light of China's many proposals for Israeli infrastructure and technology.
The new commission, proposed by senior officials, would replace an existing one under the Finance Ministry, but it is voluntary and does not cover key areas in which China invests.
The Prime Minister's Office has not yet taken a decision in this regard, but the recommendation comes as the government continues to delay announcing the winner of the tender for the construction of the new Green and Orange light rail lines in Tel Aviv.
If China wins the bid, matters may worsen and lead to strained relations with the Biden administration, amid continued dealings with the nuclear agreement with Iran and the White House's stated intention to open a consulate in East Jerusalem.
The advisory Committee to Inspect National Security Aspects of Foreign Investments is the dull title for one of the more secret and sensitive bodies in the Israeli government.
Its membership is unknown and meetings are held under a blanket of opacity. It is essentially a committee to assess deals with China. It was set up in 2020 after pressure from America, which was concerned that China could be getting Israeli weapons technology. The committee’s chilling effect on trade and ties with China is already being felt, according to The Economist, a UK specialized magazine.
Although there is no official policy or written directive banning Chinese investments in key areas of the economy, there has been a marked slowdown in new deals. “The Americans made it clear to us that they would not accept any Chinese involvement in critical infrastructure and Israel belatedly got the message,” says a former Israeli minister in the government that left office on June 13th.
In May 2020, for instance, Israel rejected a bid by Hutchison Water, a Chinese firm, to build a desalination plant. Chinese firms are still involved in previously signed infrastructure projects, including the new Tel Aviv light-rail network. But Israel, under American pressure, is discreetly trying to replace the Shanghai International Port Group, which is set to manage a new container terminal in Haifa Port, with an Emirati company.
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