The chapter in State Comptroller Matanyahu Englman's annual audit that focuses on "foreign involvement in the development and operating of strategic national infrastructure" is perhaps the most complicated and awkward one in the entire review.
The state comptroller has a lot to say on the matter, surely, but he seems to be acutely aware of the fact that some of these crucial insights can only be implied rather than directed at certain entities.
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"Investments by foreign companies and their involvement in the Israeli economy may also have negative consequences. These consequences may be manifested especially in the case of companies whose own interests do not reconcile with Israeli interests," Englman rightly states.
He further detailed a host of risks – strategic and other – that a state undertakes when it allows another country to execute its infrastructure projects.
Englman's main issue is with the absence of a professional vetting mechanism that includes defense officials who should thoroughly examine these potential collaborations.
Such an apparatus was, in fact, put in place but late in the game and only after the United States pushed for it in the wake of several large deals signed with China.
The state comptroller's report does not name the projects the Chinese are carrying out in Israel, nor does it detail any future undertakings.
The thing is – Beijing's bids are more than worthy contenders in any tender. The Chinese offers are not only cost-effective, they often include the most expeditious timeline. The Chinese also have vast experience in a wide array of infrastructure components; they are not dependent on foreign labor – as they bring in their own workers; and when a project is done they simply pack up and leave, workforce and all.
This makes their offers hard to refuse, but one cannot ignore the fact that the United States – Israel's greatest ally – is at a prolonged standoff with China.
US-China relations are very pertinent to Israel. Even more so when you consider that Beijing is growing increasingly closer to Iran all while flouting the American embargo on the Islamic republic.
China and Iran are bound to collaborate on military and infrastructure projects alike and in both cases, this will make it harder for Israel to navigate its conflict with Iran.
The United States has made it clear that it is unhappy with Israel's close ties with China, especially at a time when the US, Israel and the rest of the world is being made to pay a very heavy price for Chinese policies with regards to the coronavirus pandemic. Under these circumstances, the American position is more than understandable.
Englman's report takes great care not to make far-reaching recommendations on the matter, other than underscoring the need to "thoroughly and seriously" consider all aspects and implications of collaborating with "foreign states" on national infrastructure projects.
The government would be wise to devise a prudent policy that will weigh the economic benefits of such Chinese bids against Israel's long-term security and strategic considerations.
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