Israel has vowed to take strict measures to prevent China from using Haifa's second port facility as a basis for monitoring, as the headaches caused by a 2014 deal to modernize Israeli shipping continues.
Earlier this month, Israeli regulators decided to allow China's state-owned enterprise Shanghai International Port Group (SIPG) Bayport Terminal Co. Ltd. to expand from two platforms to four platforms.
It led to criticism, including Indian rivals Adani Port and the economic zone (Adani), which operates old port facilities in Haifa. Another port in the city in southern Ashdod is operated by the state.
Israeli Prime Minister Benjamin Netanyahu was not involved in the decision to expand China's existence, according to multiple sources. However, there are concerns that it could complicate US-India relations.
The controversy, like many other countries, including the United States, dates back over a decade when Israel called for deals with Chinese companies to expand and modernize the country's infrastructure.
Israel has a slow, outdated, state-run, and significantly combined port system that raised costs and hurt Israel's participation in regional trade. Israel wanted to use Chinese trade as a spur to reform the shipping industry.
Under the 2014 deal, Chinese companies will operate Haifabey Port, a new Israeli-built container port terminal, and build a railway linking the Mediterranean coast to the Red Sea port.
SIPG won the bidding process to operate Haifabey port, but the deal raised security concerns as an Israeli era It's attracting attention 2021:
China-owned Shanghai International Port Group (SIPG) won a bid in 2015 to operate its commercial transport facility for 25 years. The project's proximity to Israeli submarines is among other issues, raising security concerns, particularly after making it clear that neither the Cabinet nor the National Security Council had any opinions on the deal. The project too It raised the rage of the United StatesSometimes docking military ships into Haifa.
SIPG used new technology to bypass the rules of older unions that made rival operations more expensive. The facility has arrived I will rule Israeli transport market for moving goods between container ships.
But over time, it became clear that China was using operations at ports around the world to expand its geopolitical power, and that Chinese technology poses risks by allowing the Chinese government to carry out spy operations. The Eilat to the Mediterranean railway was never built, and China's role in Israeli infrastructure was limited.
The port contract was under scrutiny during the first Trump administration.
Israel subsequently signed a contract with the Indian Adani Shipping Company in 2023 to sell the old port facilities in Haifa. Adani also reportedly agreed to work with Israeli unions.
However, Israeli officials said the original contract with SIPG allowed them to expand to two platforms by 2027. The recent decision to allow the expansion in 2025 was either destined for Israel's Eilat or moved to Sousscanal in Irael after Yemen's Houthi rebels transported them to Eilat after firing fire on Eilat by entering the Red Sea.
Israel made that decision despite the fact that Chinese shipping companies avoided Israel during the recent war.
Israeli officials told Breitbart News to ensure that Israel adopted “Draconians” measures at its Chinese facility in Haifa and that China cannot spy on either the Israeli Navy or the US Navy.
Officials added that Israel has made it “unpleasant” to operate the terminal as China prefers, and that Chinese companies are not operating infrastructure beyond Haifa's own port facilities.
However, there are concerns in Israel that the expansion of SIPG could block Adani from the market and allow Chinese companies to monopolize. Israeli officials have pledged to pay Adani compensation for the damages caused to businesses by China's expansion, but Adani's representative said no compensation was provided.
Israel wants to work with the Trump administration by silence China's influence, expanding the Abraham deal, and working with India to promote trade to Europe through the Middle East.
But many countries are bound by past contractual obligations made before they realised China's threat, officials said.
Joel B. Pollack is a senior editor at Breitbart News; Breitbart News Sunday Sirius XM Patriot will be available Sundays from 7pm to 10pm (4pm to 7pm). He is the author of Agenda: What Trump Should Do in His First 100 Daysyou can pre-order on Amazon. He is also the author Trump's Virtue: Lessons and Legacy of President Donald TrumpIt is now available on Audible. He is the winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter @joelpollak.
Fix: This article was updated to reflect that Israel allows SIPG to extend four platforms from two platforms, rather than one to two platforms.
