Amid growing US scrutiny, Israel might tighten restrictions on Chinese investments

The Israeli government is likely to approve new foreign investment restrictions targeting China amid growing pressure from the United States. As per reports, the measures will strengthen government oversight of foreign investment, allow the government to intervene when foreign investors controlled more than five per cent of a company’s shares, and disqualify foreign enterprises from bidding or obtaining licences for local projects if they were deemed a threat to national security.

As the US-Chinese tech rivalry grows, the new restrictions could soon be extended to cover the hi-tech industry, Mordechai Chaziza, a senior lecturer in politics and governance at Israel’s Ashkelon Academic College, was quotes by SCMP as saying.

“Everyone is clear that the hegemony in the international system in the current century will be decided by whoever wins the technological competition,” Chaziza said.

Add WION as a Preferred Source

Also Read |China responds angrily after US announces chip export restrictions

“Israel and the West have an ongoing interest in the US continuing to remain the world’s dominant power. That is why imposing restrictions on Chinese investments in the hi-tech industry is rational and necessary.”

The US in its effort to hit the Chinese tech industry has placed several restrictions on China in recent months. This included measures to restrict its access to advanced chip technology. US national security adviser Jake Sullivan met his Israeli counterpart Eyal Hulata last month and the latter said that the country shared US concerns about protecting technology.

China’s hi-tech investments in Israel saw a high in 2018, with a total of 72 deals signed. However, the number of deals has been dropping since amid increased scrutiny from the US. Forty-three and 45 deals were signed in 2019 and 2020, respectively.

Chinese infrastructure projects in Israel are also a matter of concern for the US. The Bayport terminal in Haifa built by Shanghai International Port Group is quite near to a dock used by US Navy vessels. Washington's request for regular inspections to check for possible Chinese surveillance equipment was rejected by Israel, according to local media reports.

China is Israel’s biggest trading partner in Asia and the third largest worldwide after the US and EU.

(With inputs from agencies)