Haaretz: Israel Is Giving China the Keys to Its Largest Port – and the U.S. Navy May Abandon Israel

China will operate Haifa port, near Israel's alleged nuclear-armed submarines, and it seems no one in Israel thought about the strategic ramifications



By Jeff Rense for VT

The reports below tell of results from a 40 year courtship between China and Israel few have been aware of.  The fruition of this secret pact, turning Haifa over to China and giving them a base in the Mediterranean, may well show that though Trump was to be “their guy,” the US is no longer a player Israel can depend on.

Past this we also find secret negotiations, years in the making, tied to his same revelation, between Iran and Israel.

Reports from Haaretz, YNet News and the Jerusalem Post: Shaul Horev dropped a bombshell, but hardly anyone noticed. Horev, an Israel Defense Forces reservist brigadier general who has served, among other posts, as the navy chief of staff.

Chinese company wins bid to run new Haifa port
Shanghai International Port Group wins government tender to operate new port for 25 years; announcement comes after another Chinese company granted tender to build Ashdod port.
China is moving into the Israeli ports market on a large scale: With one Chinese company having already won a tender to construct the new Ashdod Port, a second Chinese firm will be taking over operations at the new Haifa Port, which is currently under construction by Shapir Engineering and the Ashtrom group at a cost of NIS 3.96 billion.

Shanghai International Port Group has been awarded the government tender to operate the new port in Haifa for 25 years. The new Haifa Port is expected to commence operations in 2021. SIPG was the only company that bid to operate the new facility.

SIPG, which operates primarily in the Far East, is one of the world’s leading companies in the container cargo field. Among others, the company operates the cargo terminals at the world’s largest port in Shanghai and also at various ports in Europe. In 2014, SIPG-operated cargo terminals handled a total of some 35 million containers. In comparison, Israel’s ports during the same period handled around 2.5 million containers.

Haifa port (Photo: Nurit Benado) (Photo: Nurit Benado)

Haifa port (Photo: Nurit Benado)


In 2014, China Harbor won the tender to build the new Ashdod Port over the coming seven years at a cost of around NIS 3.6 billion. The government is now weighing bids to operate the new private facility in Ashdod from Germany’s Eurogate and from Terminal Investment Limited, the Dutch unit of Switzerland’s Mediterranean Shipping Company.

“This is an historic day for Israel,” said Transportation Minister Israel Katz. “The Chinese group that won the tender will bring competition to the sector.

The new ports will create thousands of new jobs and lead to a drop in the cost of living. It’s an expression of confidence in the State of Israel on the part of a superpower, which has decided to invest billions of shekels in Israel and turn it into an international cargo center for all the world.”

According to Shlomo Breiman, CEO of the Israel Ports Company: “The new ports will operate according to international standards. They will address the needs of the economy and promote vital competition in the ports sector for the benefit of the public, in keeping with the model in place at most ports around the world.”

Over the last few years, former Mossad head Ephraim Halevy has warned of the danger that the growing involvement of Chinese companies in Israel poses to its national security.

Many mocked his warnings, including Transportation and Intelligence Minister Israel Katz, but now it seems that Halevy’s insights may have been prescient after all.

Four MKs led by Ofer Shelach from the Yesh Atid party have requested to address the Foreign Affairs and Security Committee regarding “the entry of Chinese elements to Israel’s strategic spheres.”

The matter is a highly sensitive one: How to navigate Israel’s desire to attract foreign investment, including from China, with the need to protect itself from foreign control of critical infrastructure, national assets, and security and defense systems.

In the last decade, dozens of Chinese companies have entered the Israeli market as sole or sub-contractors or suppliers in major transportation, infrastructure, agriculture and food projects, including the 2014 purchase of a controlling share in Tnuva, the flagship of the Israeli dairy industry.

The Chinese have also been involved in constructing the Mount Carmel tunnels, the Acre-Carmiel railway, Tel Aviv’s light rail transit system, privatized ports in Haifa and Ashdod, the Tel Aviv-Jerusalem railway and possibly the proposed Tel Aviv-Eilat railway, as well as two water desalination sites. The estimated value of all these projects is $25 billion.

Not surprisingly, the Chinese “invasion” is worrisome for many who fear the loss of jobs and businesses. But Shelach, who investigated the phenomenon, says that though he is aware of the economic concerns of some Israeli companies, “my main concern [of such an invasion] is the security and strategic ramifications to our state.” He adds, “We are avoiding a serious public discourse to understand the full scope of the possibility that Chinese companies will eventually control chunks of our economy.”

According to Shelach, Israel needs a “comprehensive policy,” particularly with regard to China, otherwise each ministry “determines its own approach and policy.”

Indeed, the Finance Ministry has blocked attempts by Chinese firms to purchase Clal and Phoenix, two of the nation’s major pension funds. The reason: the fear that hundreds of billions of dollars and the future of a million or more Israelis would be at the mercy of the Chinese government.

The Defense Ministry has also acted of its own accord, preventing Chinese companies from bidding on tenders for the IDF and the intelligence community.

Israel was the first Western nation to provide China with armaments, in the mid- ’70s. But in the ’90s, the Clinton administration used the threat of a fallout to coerce Israel to cancel a major deal that would have provided China with a sophisticated airborne early warning system. Israel had to return the $350 million advance to the Chinese government.

An approach of caution and suspicion toward the Asian giant is shared by several Western nations. After years of oversight, the US formed an inspection body in the Treasury Department known as the Committee on Foreign Investment in the United States to monitor foreign investments. The committee has the power to cancel deals with foreign entities, which plan to purchase assets that are designated as important to national security.

The EU, Germany, France and Italy hope to advance similar initiatives. Germany has already passed a bill that enables the government to prevent a foreign company from controlling more than 25 percent in what is defined as “essential infrastructure,” i.e., software, security power stations, energy, water and electrical supplies, hospital and transportation. Similar laws have been adopted by Canada and Australia.

Chinese efforts to penetrate Israel need to be understood in a global context.

“The Beijing regime aspires to position China as the leading world power,” says Dr. Harel Menashri, head of the cyber department at the Holon Institute of Technology and a former official in the Shin Bet (Israel Security Agency). “[It is] taking advantage of the void created by the ‘disappearance’ of the US leadership in the world.”

According to Menashri, China’s actions are motivated mainly by economic and commercial needs by manipulating weaknesses in world markets and states.

“Israeli leaders have to understand that there is no real private sector in China,” he says. “Though many companies defined themselves as ‘private,’ practically all of them are directly or indirectly controlled by the centralized government, which is ruled by the Communist Party. All Chinese businessmen, investors and companies play along the party lines and its prevailing spirit.”

There is an even more delicate issue when it comes to China: espionage activities, carried out mainly by cyber warfare, and exercised by an army of hundreds of thousands of hackers run by the army intelligence.

The aim is to steal information, know-how and technologies from Western governments, corporations and research institutes, Israel included, for the interests of China’s government, economy and businesses.

“The method of the Chinese intelligence organ is known in the West as a ‘vacuum cleaner’ – to suck everything and then to sort it out,” says Menashri. “Israel is part of this Chinese global effort because of its advanced hi-tech industry and intimate relations with the US and EU.”

Chinese intelligence is interested in obtaining Israeli political, military, scientific and economic data. Despite its sophisticated state-of-the art cyber defense, Israel has not been immune to Chinese hacking.

It was reported that Chinese hackers penetrated Israeli defense manufacturers and stole secrets from its most advanced weaponry systems, including the Arrow 3 and Iron Dome anti-rocket and missile defense systems.

In an interview with The Jerusalem Report, Halevy emphasizes that he favors the entry of Chinese companies into the Israeli market but “they should not be allowed to operate or have access to the security realm or areas close to it, as well as vital sectors to the economy, such as insurance and banking.”

Halevy and Menashri both highlight another problematic aspect of China’s foreign and economic policy, which potentially poses a threat to Israel’s security interests: its close relationship with Iran.

Unfortunately, Menashri says, Israeli leaders are either not aware or turn a blind eye to the danger that China could control and influence large sectors of the Israeli economy, which would not necessarily benefit Israeli society.

Halevy suggests that Israel pass laws similar to those in other Western nations that limit the involvement of foreign companies in vital domestic areas.

In the past, the Israeli government has intervened to prevent majority control by foreign investors in national assets, such as El Al airlines or Bezeq telecommunications, and dubious Russian oligarchs suspected of involvement in criminal activity. There is no reason it will not do so again regarding China. And indeed, the Justice Ministry and the security establishment are contemplating the adoption of a policy that will identify and define vital assets – state or private – that will be off limits to foreign, especially Chinese, interests.



Trump must warn Israel on its China trade

Unlikely partners? China and Israel deepening trade ties

Chinese investment in Israeli tech is growing, and it’s ‘quite welcome’ for some


How Israel Used Weapons and Technology to Become an Ally of China

In Beijing, Netanyahu looks to ‘marry Israel’s technology with China’s capacity’

China is hungry for advanced Israeli technology

China says it will host Israeli-Palestinian ‘peace symposium’

China’s tech money heads for Israel as U.S. welcome wanes

China’s Deepening Interest in Israel

Report: Israel Passes U.S. Military Technology to China

Scaling Chutzpah by the Billions — Israeli Ingenuity Hits the Ground in China

Israel-China affair blooms even as culture gap weighs on rapport

China’s New Generation Sets Its Sights on Israel

Yifeng Zhou on China’s interest in Israeli innovation

Israel, China set up first accelerator program in Beijing


Trump, Fox News – “Putin loves Israel and Bi Bi”

Borscht Belt: Will Israel Spurn America for Russia?

Why Russia Needs Israel

Why Russia should take over Israel’s defense from America

As Putin Becomes One of World’s Most Powerful Players, His Surprising Jewish Connection is Revealed

An Emerging Alliance: Russia and Israel

Israeli firms invest in Russia

US blacklists Israeli company over Russia intelligence links

Israel to lure Soviet Jews from Germany

Israel’s former Soviet immigrants transform adopted country

Shin Bet Withheld Iran Secrets from Lieberman [Sec.Def Israel] as Security Risk

KGB Infiltrated Highest Echelons of Israel’s Army, Business, and Political Leadership

Like Putting the K.G.B. Into the Pentagon

The KGB’s Middle East Files: ‘Illegals’ in Israel –  Russian agents and assets in Israel and elsewhere



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  1. ” Once we squeeze everything out of the United States it can dry up and blow away”
    Benjamin “Bibi” Netanyahu.

  2. Is it lack of US leadership, or is opportunism driving the timid toward superior technology. After all, there have been demonstrations.

  3. Curious what the apartheid supremacist racist Chosen ones plan to do with the Chinese Goyim, once they build the massive shipping Port facilities, and don’t intend to leave. Will the Chinese gradually build up a Naval presence? This could be a good thing, or a bad thing. Either way, the USA will be still throwing billions in the hole, for this painful BFF foreign alliance.

    The criminal state does not sign treaties, only making agreements that can be broken whenever they choose to switch victims.

  4. What we’re witnessing lends considerable credence to the theory that the so-called “Jews” are actually Khazars, a Turko-Mongolian people, ultimately from central Asia. It also lends credence to the Lamsa translation of Ezekiel 38, “against China, and against the land of Mongolia” (Ezekiel 38:2, Lamsa translation).
    In reality, Ezekiel 38:2 is a prophecy against this very Chinese and Khazar (“Jews”) alliance.

  5. Yep that’s what we do. Though Pakistan cant use US money to pay China. We live in an Orwellian Society. Neither Russia, nor China are any better than the USA & the West. If anything, they are the inheritors of the Russian & Chinese Empires, that have stayed intact. Thyey have continued denying self-determination to minorities while exploiting their resources from which their respective oligarchs benefit. No good guys except the rest of us working stiffs (retired in my case) that get duped continuously. No need to choose sides based upon who is on a higher moral plain. Third World countries have to base it on who suits their interests best. Similarly, the global oligarchs, arrayed behind each of the world powers they have chosen to further their interests, are pitted against each other. Once again, we choose the one that serves our needs best. In my case, with all it’s faults, it’s the USA: guns for self-defence, legalized marijuana & Medi/Medi healthcare (in California).

  6. Does anyone believe this deal was not approved by the U.S. and its Israel lover liar Trump? Israel loves free money while they continue to get away with fomenting murder and chaos in the world. They did 9/11/01 and all the perps should be prosecuted:
    These people would sell out their grandmothers to make a buck.

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