From the Liveblog of
Wednesday, October 30, 2019
Under pressure from US, Israel forms panel to examine foreign investments
Facing mounting pressure from the United States over growing Chinese investments in Israeli companies, especially in the technology sector, Israel’s security cabinet announces today the formation of a new advisory panel on foreign investments in the country.
The panel will be led by the Finance Ministry, but include members from the National Security Council and Defense Ministry, as well as observers from the foreign and economy ministries and the National Economic Council.
Its function, according to a Prime Minister’s Office statement, is to “help regulators to incorporate national security considerations in the process for approving foreign investments in the finance, communications, infrastructure, transportation and energy sectors.”
The US and China have been locked in an ongoing trade war and a contest for global influence, with US and other Western governments accusing the Chinese government of using its commercial ties for espionage and intellectual property theft on a mass scale. A 2018 national security strategy produced by US defense agencies pointed to China as America’s main developing strategic challenger on the world stage.
Israel has long been interested in improving ties with China, especially commercial ties, and has faced criticism from US officials for what Washington sees as insufficient safeguards to ensure burgeoning economic ties don’t leave Israel vulnerable to Chinese influence and cyber threats.
Government regulators examining new investments in Israeli companies will be able to “voluntarily” turn to the new committee as a streamlined way to consult with all relevant defense, economic and diplomatic bodies on an investment that raises concern.
The Times of Israel Community.