Following heavy American pressure, the Israeli cabinet yesterday approved the establishment of a national committee for the monitoring of foreign investments in Israeli companies and infrastructure projects. The cabinet has yet to adopt guidelines or a timetable for implementation.
This initiative, when implemented, is expected to have a major impact on the flow of investment from Chinese entities into Israeli regulated sectors, sensitive technologies, and major infrastructure and energy projects. It is unclear whether the initiative shall have any impact on existing holdings of Chinese entities in Israel, in particular in the infrastructure and energy sectors, including ports, roads, light railways, and powerplants.
We will update once additional information is available.