USA Demands Israel Exclude Chinese Companies from Metro Project; Ministry of Finance Refuses
The US is intensifying pressure to reduce Chinese participation in major Israeli infrastructure projects, specifically the metro. News 12 has learned that the US economic attaché recently met with Accountant General Michal Abadi-Boiangiu to discuss the involvement of companies from nations deemed "not friendly to Israel." The Ministry of Finance rejects this pressure, encouraging American firms to compete in tenders instead.
The USA is increasing pressure on Israel to prevent Chinese involvement in the metro project, a stance that directly conflicts with the recommendations of professional officials at the Ministry of Finance. This renewed pressure comes roughly one month after the government-owned company NTA published the list of groups that submitted bids for the first stage of metro tenders, which included a significant number of Chinese firms.
The metro project is the largest infrastructure undertaking in Israel's history, with a total estimated cost exceeding 170 billion shekels. According to NTA, 20 groups comprising 33 companies from eight different countries submitted bids for the pre-qualification stage of the project’s core tenders—valued at approximately 65 billion shekels. The breakdown includes 11 Israeli companies, 9 Indian, 6 Chinese, 5 European, and only two American firms.
News 12 has learned that the US economic attaché in Israel recently met with the Accountant General at the Ministry of Finance, Michal Abadi-Boiangiu, for a discussion centered on the involvement of companies from countries "not friendly to Israel." According to an American source, this phrasing is primarily driven by concerns regarding Chinese involvement in the local economy.
The Ministry of Finance rejects these American concerns regarding Chinese participation in the metro tenders and the construction of major infrastructure. Instead, the Ministry is encouraging American companies to compete in the tenders as a counterweight to Chinese involvement.
A Known Conflict with Clear Results
The tension surrounding Chinese involvement in the metro project is not new. Last year, News 12 revealed internal discussions at the Ministry of Finance regarding the inclusion of Chinese companies in tenders, despite known American opposition. Professional officials at the Ministry feared then that a low response rate from European companies would leave Israel with too few participants.
American pressure against Chinese activity in infrastructure projects has led to the cancellation of deals in the past. In March of last year, representatives of the US administration raised claims regarding Chinese involvement in Israel during a meeting described as "unusual and aggressive." Among other things, the Americans demanded clarifications regarding the participation of the Chinese company CRRC in the Jerusalem Light Rail Blue Line project. A month later, the Ministry of Finance modified the tender conditions in a way that prevented the engagement with the Chinese firm, a move expected to significantly delay the project. Similar pressure was exerted during the Joe Biden administration, leading to the exclusion of Chinese companies from light rail tenders in Gush Dan.
