Israel steps up scrutiny of Chinese investments under pressure from US as it seeks to balance ties
- Jerusalem has promised to keep Washington ‘in the loop’ about its China dealings, after US security chiefs raised concerns about the pair’s relationship
- Trade and investment have soared in recent years, but analysts said Israel continues to prioritise the US – even as its business sector leans more towards China
Jerusalem established its foreign investment oversight committee in October 2019 at Washington’s behest, but the body is “virtually toothless”, according to regional news portal Al-Monitor, which said in an October report that a proposal was being considered to bring the committee under the umbrella of the national security council.
The new administration has promised to keep Washington “in the loop” about any significant deals struck with Chinese firms, Israel’s respected Haaretz newspaper revealed in an unsourced report on January 3, as it also prepares to re-examine any agreements opposed by the US.
To further avoid inflaming tensions, Israel has been giving the US advance notice of high-level talks it holds with China – as it did ahead of a virtual meeting on Monday at which Israeli Foreign Minister Yair Lapid and Chinese Vice-President Wang Qishan agreed to a three-year plan for cooperation on the economy, science, R&D and technology, news website Axios reported.
Security concerns
The issue of Chinese involvement in Israel’s economy and tech sector was first raised in August last year by Central Intelligence Agency director William Burns in a meeting with Bennett in Jerusalem.