USS Cole arrives at Port Haifa
TEL AVIV: Israel has refused an American request to inspect the new Chinese-built Haifa port that will be operated for the next 25 years by SIPG, a Chinese company. This is being seen in both countries as a test case of Israel’s relationship with China and with the United States.
Israeli officials declined to comment on the story, first reported by the Israeli daily newspaper, Haaretz.
The domestic political chaos here has pushed the issue onto the backburner. But after the March elections — the fourth in less than two years — the new government must deal with the problem.
Sources here say the Biden administration will raise the issue again. President Biden has not yet called Israeli Prime Minister Benjamin Netanyahu; he has called many other world leaders.
The White House was asked about it and offered a very vague statement when asked about this: “We have a long and abiding relationship with Israel, an important security relationship, I’m sure they’ll discuss that and a range of issues when they do connect,” White House press secretary Jen Psaki said today.
BD has exposed the problem of Chinese companies’ involvement in sensitive major infrastructure projects. For example, the Trump administration asked Israel last year to allow the US Coast Guard to perform a security check of the new port.
Last year BD reported about a strict U.S warning to Israel to limit ties with China. This warning resulted in an Israeli rejection of a Chinese proposls to build the giant Desalination Water Plant, in Palmachim in central Israel. The site is in close proximity to an important Israeli missile test and satellite launch facility.
The tender raised serious American concerns. Two weeks after US Secretary of State Mike Pompeo met with Netanyahu and warned against Chinese involvement in Israeli projects, the Chinese company lost the bid. The winner of the tender is the Israeli IDE.
The operation of the new Haifa port appears to be quite important to the Chinese.
In June 2020 China Daily published a feature about Shanghai Zhenhua Port Machinery Co. (ZPMC), one of the world’s biggest port machinery manufacturers for loading and logistics, and the main supplier of heavy logistical equipment to the new Chinese-operated port.
China Daily writes: “Haifa Port, a symbolic project along the Belt and Road Initiative, will be the largest container terminal in Israel. Haifa port is the home base of the Israeli navy, including a new facility for the new Dolphin class submarines that Israel purchased from Germany.”
The article says ZPMC attributes great international prestige to the Haifa contract. and describes the port as “…a main rail terminal on the Mediterranean shore.” Since current railway connections to the port are quite local and sparse that’s an interesting description.
Israel was very slow in responding to Washington’s requests to limit Chinese involvement in large Israeli infrastructure programs. Sources here told BD that it remains to be seen what will the Biden Administration’s policy concerning Chinese involvement in Israel will be. Early indicators are that there won’t be much difference between what the Trump Administration did, though the tone may be different.
Amos Gilead former head of Israel’s military intelligence research division, said Israelis “must fully cooperate with the Americans. There is a consensus in the U.S about China as a threat and Israel must take it into consideration.”
He added that Israel’s effort to save money on such huge projects must not undermine the relations with the U.S: “There is no coordination between the involved bodies in Israel. Each makes its own decisions, and that is very bad”
Gilead’s criticism is shared by many defense experts, but the incoherent decision making process across different ministries results in what one of them described as “total chaos” that just creates more tensions between Washington and Jerusalem.
