management given to Chinese business prompts U.S. threat not to sell technology to Israel

The protests of the Trump Administration for having awarded the management of the port of Haifa to a Chinese business have not yet led the Netanyahu government to review the contract, which was processed at ministerial level without a plenary session of the Executive Council knowledge of its geopolitical implications. Chinese penetration in Israel - in the broader context of the Middle East - as well as the reaction of the United States, highlights a complicated triangle of relations: Israel wants Chinese investment, but fears losing American favor.

▲ container management at the port of Haifa, northern Israel [Wikipedia].

article / María Martín Andrade

The port of Haifa is one of Israel's main ports in terms of cargo throughput Issue It also has a strategic character: the port, in the north of the country, hosts the U.S. Sixth Fleet in its movements. The latter could be altered following the announcement of Israel's contract with the Chinese business Shanghai International Port Group (SIPG) to operate the port for the next 25 years starting in 2021, which has not been very well received by Washington. The company, which has pledged to invest $2 billion to expand the facility into Israel's largest port, describes its functions as including the construction and installation of equipment and the day-to-day management of port activities, classifying the project as part of the One Belt, One Road initiative.

This initiative has its origins in the Silk Road, a trade pathway that linked China with various countries on the Asian continent until it reached Europe, and which dates back to the first centuries BC. The new version is based on the early schemes and aims to boost China by creating a network of infrastructure, investment and trade, and by establishing multilateral and bilateral ties with the various states along it, as well as with international companies.

All of the above, added to the growing industrial and transportation expansion that China is experiencing, also justifies the Asian country's interest in some of the natural resources that the Middle East offers, such as oil, which imports account for 50% of the total, which is another reason why China wants to gain a presence in different parts of the region and which is manifested, among other things, in its investment in canals and ports such as those of Haifa and Ashdad in Israel, Cherchell in Algeria, Said and Alexandria in Egypt, and Kumport in Turkey. Specifically, its investment in the port of Haifa is also contributing to the development of the Israel-Gulf Economic Corridor (IGEC), whose goal is to create a railway line that runs from the port of Haifa to the Jordanian-Israeli border, linking it to the Jordanian railway system.

However, China's ambitions to gain a greater presence in the Middle East collide with the pretensions of another "robust rival", the United States, which, also motivated by economic and security interests, has landed much earlier in the region and has no intention of sharing it. Thus, after learning of the plans in the port of Haifa, the U.S. response is manifested in threats that it might stop sharing intelligence data with Israel and reconsider holding future long-term exercises by the U.S. Navy in that port.

It is important to note that this is not the first time that the United States has intervened to hinder relations between China and Israel. The conditions under which the latter country was established, added to the hostile environment that surrounds it and the need to possess weapons to maintain and protect it, have contributed to the development of its technology, especially in defense subject , whose broad scope is due in part to the United States, which has been supplying the country with the latest in military technology since the 1960s. All this has contributed to the fact that Israeli exports in technological subject , mainly in defense subject , have become the main source of income for its industry.

During the 1970s, Chinese Economics began to modernize, and the next step was to extend this modernization to the military domain, so China began importing defense developments from Israel. These relations continued to expand until 2000, when the Middle Eastern country, under U.S. pressure, decided to cancel the agreement that allowed China to obtain four Phalcon radar systems. The reason given at the time by the United States for opposing the agreement was the possibility that China would benefit from this technology in a military conflict in Taiwan. However, China is not the only country with which Israel has had difficulties exporting its technology. In 2008, Washington denied that it could submit Heron drones to Russia.

Despite all this, Sino-Israeli relations have managed to survive, with China becoming Israel's second largest trading partner in 2012, as well as developing new R&D partnership ties, consisting of a series of agreements and collaborations between academic institutions and companies from both countries.

However, considering the reaction of the United States to the Chinese involvement in the port of Haifa, it is not unthinkable to envisage a scenario in which American pressure would be repeated, in this case succeeding in abolishing the existing agreement with the Shanghai International Port business . If this happens, Israel would lose an important part of the investments it receives and trade relations with China would cool down, while Beijing could see one of its plans to create its ambitious Silk Road frustrated, although this would not mean its decline in the Middle East.

 What is unquestionable is that the United States no longer enjoys hegemony in this part of the world and has to come to terms with the idea that it will have to share influence with other great powers. That is why it may be more logical to achieve new forms of cooperation with China in order to establish mutually favorable conditions.

In conclusion, this new Chinese investment affirms what was already known: China's international presence is increasing and becoming more and more Issue, and it is wiser to adapt to the new changes than to get involved in love triangles that never have a happy ending for anyone.

essay / Túlio Dias de Assis [English version].

The President of the United States, Donald Trump, surprised in December with another of his statements, which, like many of his previous ones, was not without controversy. This time the surprise topic was the advertisement the opening of the US embassy in Jerusalem, thus consummating the recognition of the ancient city as the capital of the only Jewish state in the world today: Israel.

Trump's controversial advertisement , on an issue as controversial as it is sensitive, was criticized internationally and had little foreign support. Nevertheless, a few countries joined the U.S. initiative, and some others expressed themselves ambiguously, including several European Union countries. Among these, several European Union countries were singled out by the media. Has there really been a lack of internal cohesion within the Union on this issue?

Why Jerusalem matters

First of all, it is worth analyzing the status in more detail, starting with a simple question: Why is Jerusalem so important? There are several factors that make Hierosolyma, Yerushalayim, Al-quds or simply Jerusalem so important not only regionally, but also globally, among which the following three stand out: its historical relevance, its religious importance and its geostrategic value.

Historical relevance. It is one of the oldest human settlements in the world, tracing its earliest origins to the fourth millennium BC. Apart from being the historical capital of both the region of Palestine or Canaan, as well as of the various Jewish kingdoms established throughout the first millennium BC in that part of the Levant.

Religious importance. It is a very sacred city for the three major monotheistic religions of the world, each for its own reasons: for Christianity, mainly because it is where the crucifixion of Christ took place; for Islam, apart from being the city of several prophets - shared in the beliefs of the other Abrahamic religions - and a place of pilgrimage, it is also where Muhammad made his well-known night journey; and obviously, for Judaism, for historical reasons and also because it is where the sacred Temple of Solomon was built.

Geostrategic value. At the geostrategic level it also has a great relevance, since it is a crucial point that connects the Levantine Mediterranean coast with the Jordan Valley. Therefore, its owner would have under its control a great geostrategic advantage in the Levant region.

It is not surprising, then, that the status of this city is one of the main points of conflict in the peace negotiations between the two peoples, as is well known. Hence, Trump's intervention has not been of great financial aid for the resumption of the peace process; rather, it could be argued, it has been quite the opposite: it has provoked an outcry not only from the local Palestinians, but from the entire Arab world, thus further destabilizing the region. There have been counter-reactions from Hamas, Hezbollah and also from several Islamic governments in the Middle East (among them even Erdogan's, despite the fact that the Republic of Turkey is de jure a secular state). Hamas called for an intifada against Israel: the multiple demonstrations in the Palestinian territories ended with several hundred wounded and a dozen dead, due to clashes with Israeli police forces.

Europe's position

Europe, for its part, is trying to maintain a rather more neutral and balanced position, aimed at achieving regional peace. The European Union's willingness to mediate mainly takes into account the resolutions passed by the UN on this problematic topic. The European declarations, considered somewhat unrealistic and utopian from the perspective of many Israelis, are based on four essential points: the two states, refugees, security and the status of Jerusalem.

The existence of two states. According to the EU, a one-state solution would be contrary to the interests of both parties, since it would impose the sovereignty of one of the peoples over that of the other. Therefore, Brussels believes that a two-state solution would be more appropriate: each nation would have its own state and the borders between the two would be based on those in force on June 4, 1967, before the Six-Day War. Even so, changes to these sovereignty boundaries would be allowed, provided both sides so desired and approved.

The refugee issue. The EU believes that durable measures should be taken on the issue of Palestinian refugees outside their homeland (especially in neighboring countries such as Lebanon and Jordan), with the goal of enabling them to return to their country.

Security. Another key issue for the Europeans would be the question of security, for both sides: On the one hand, measures should be put in place to put an end to the Israeli occupation of the Palestinian territories. On the other hand, the problem of Palestinian terrorism in the area should be tackled with effective measures.

Status of Jerusalem. Taking into account the importance of this city, Brussels considers that there would be no better solution than a resolution in which there would be shared sovereignty between the two hypothetical states. In addition, the holy city of the three religions would also be the capital of both states simultaneously.

However, as previously mentioned, the position of several member states was mistrusted, even to the point of suspecting possible support for the American decision. This was inferred from states such as the Czech Republic or Hungary, due to some statements taken out of context or poorly explained, which made it appear that the dissidence between Brussels and Visegrad continued to grow. However, if there is one thing that stands out in the European response, it is unity and internal coherence.

The Czech government did no more than recognize West Jerusalem as the capital of Israel, just as it will do with East Jerusalem once Palestine regains sovereignty over its territory. The Magyar government did not contradict the European positions either, as its only statements were that Europe should not have to pronounce itself on US diplomatic actions. Subsequently, the Hungarian prime minister clarified that the EU should stand firm on the policy it has defended so far and that this is de facto the Magyar position on the matter. In addition, French President Emmanuel Macron, during his meeting with Israeli Prime Minister Netanyahu, already mentioned that France did not support Trump's decision on Jerusalem, and likewise Federica Mogherini, the High Representative for Foreign Affairs of the European Union, spoke to him, maintaining the neutral mediating stance that the EU has assumed so far.

Therefore, neither the EU nor any of its member states have shown any sign of support for the unilateral American decision. Europeans remain united in their diversity, quoniam "In varietate concordia".

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