US Pressures Israel to Block Chinese Firms from Metro Project Amid Treasury Resistance
The United States is intensifying efforts to prevent Chinese companies from participating in Israel's massive metro infrastructure project, despite opposition from Israel's Ministry of Finance. In recent weeks, the US economic attaché in Israel met with Michal Abadi-Boiangiu, the Treasury's general accountant, to discuss concerns over the involvement of companies from countries considered "unfriendly to Israel," primarily targeting Chinese firms.
The pressure escalated after the government-owned company NTA published the list of bidders for the metro project's core tenders, revealing that six Chinese companies were among the 33 firms from eight countries competing. The metro project, Israel's largest infrastructure initiative, is valued at over 170 billion shekels, with the core tenders alone worth approximately 65 billion shekels. Of the 20 bidding groups, only two are American companies, while the rest include Israeli, Indian, Chinese, and European firms.
The Treasury rejects US concerns about Chinese involvement and instead encourages American companies to participate in the tenders to counterbalance Chinese influence. This stance contrasts with previous US-led pressures that resulted in the removal of Chinese firms from light rail projects in Jerusalem and the Tel Aviv metropolitan area.
The issue is not new; internal discussions within the Treasury last year revealed worries about low European participation potentially limiting competition. The US has previously demanded clarifications about Chinese company CRRC's role in the Jerusalem light rail and successfully pushed for tender conditions that excluded Chinese firms, causing project delays. Similar US pressure during the Biden administration also led to Chinese companies being barred from tenders in the Tel Aviv light rail project.
The ongoing dispute highlights the geopolitical tensions influencing Israel's infrastructure development and the balancing act between economic interests and strategic alliances.
