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Contract Decision Raises Doubts About Israel-China Tech Ties

Natalie Liu

   WASHINGTON - The Trump administration appears to have scored a victory
   in its campaign to dissuade key allies from expanding their high-tech
   trade relations with China.

   An Israeli contract to build what will be the world's largest water
   desalination plant had been widely expected to go to Hong Kong-based
   Hutchison Water. But following a high-profile visit to Israel by U.S.
   Secretary of State Mike Pompeo, the contract was awarded last week to
   an Israel company instead.

   Filing documents describe the contract as encompassing the design,
   construction and operation of a seawater desalination facility located
   inSorek, south of Tel Aviv. The facility's construction is described as
   part of Israel's long-term strategy to sustain the country through any
   long-term drought caused by climate change.

   The project was green-lighted in 2018 by the Israeli cabinet, and
   Hutchison emerged as a leading bidderin spite ofsecurity concerns. In
   April 2019, the newspaper Haaretzpointed out the plant's proximity to a
   nuclear research center, an air force base and a weapons testing
   ground. [1]The paper saida 50-meter-high smokestack called for by the
   proposal "could be used as an observation point over all of the
   sensitive sites."

   Nevertheless, Hutchisonwas considereda strong contender for the
   contract. It was alreadya 49% partner in an existingdesalinationplant
   atSorek-- part of anIsraeli-Chineseeconomic relationship that has been
   growing since Prime Minister Benjamin Netanyahu visited Beijing in
   2013.

References

   1. https://www.haaretz.com/us-news/.premium-u-s-china-trade-war-israel-takes-sides-national-security-1.7280881

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