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US Stops China Deal w Israel
By Micah Halpern

Thursday July 14, 2022
I've Been Thinking:

China is the United State’s one true competitor in the world today. And the United States has forced Israel to put the brakes on high-tech cyber security deals with China.

Pressure from Washington has been mounting for some time. It started during the Trump administration. As China was pinpointed for the COVID outbreak, serious efforts to stymie Israeli /Chinese tech sales intensified.

Israel is considered a hub for cybersecurity firms, many of which are manned by veterans of Israel’s military's intelligence units.

According to the Israeli National Cyber Directorate, over 40% of private investments in cybersecurity globally are funneled into Israeli firms. Additionally, many foreign high-tech companies have also opened research and development centers in Israel.

Until 2018, China solidified its place as an important partner to Israel's burgeoning high-tech sector, which was looking for a reliable source of capital and access to one of the biggest global markets. In 2018 alone, Chinese investors poured $424 million into Israeli start-ups.

Chinese behemoths such as Ali Baba and Huawei also opened their R&D centers in Israel.

But the Unites States wants China to leave Israel.

According to a US Embassy spokesperson who spoke to Bloomberg News: “We would like to see Israel’s investment screening system strengthened and expanded, especially in the field of high tech. We have been candid with our Israeli friends over risks to our shared national security interests.”

The spokesperson was, of course, referring to China.

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18 July 2022 09:55 PM in Thoughts

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