Israel reviews 2015 Haifa investment deal with China as Washington considers future of navy operations at port
- Beijing’s US$2 billion commitment at the facility unsettles US military strategists
- An analyst says the review is a ruse by Washington to shake Israel-China relations
Political considerations concerning Chinese investment in Israel’s third-biggest port may be the reason behind the Israeli government’s decision to review a deal that gives Beijing a majority stake in the facility, analysts said.
The assessment came after Israel’s national security cabinet was reported to be revisiting a 2015 deal between the Israeli Transportation Ministry and Shanghai International Port Group (SIPG) involving the Port of Haifa.
SIPG has committed US$2 billion to the project and plans to transform the port’s bay terminal into the largest harbour in the country. The deal with the Israeli government granted SIPG control of the port for 25 years.
Pressure was exerted by Washington, since the US Navy has acknowledged that its longstanding operations in Haifa may change once SIPG takes over the civilian Haifa port in 2021, the Jerusalem Post reported on Sunday.
Haifa is Israel’s largest port city, which regularly hosts joint US-Israeli naval drills and vessels. The SIPG deal has raised intelligence and security concerns that are only now prompting an Israeli inter-agency review.
