Chinese investment in Israel has jumped tenfold since late 2016 due to increased US protectionism and a tougher regulatory stance adopted by America after the election of President Donald Trump.

More and more Chinese companies are looking to invest in Israel after the two countries vowed to cooperate on technological innovation, particularly in the areas of renewable energy, telecommunications, modern agriculture and biomedicine

Data published by Reuters showed that last year, Chinese investment into Israel jumped more than tenfold to a record $16.5 billion, with money flooding into the country’s buzzing internet, cyber-security and medical device start-ups. These investments surged in the third quarter just as the US regulatory crackdown began to bite.

In contrast, Chinese bidders scrapped a record $26.3 billion worth of previously announced deals from the United States in 2016, the data shows.

With Israel being a close US ally, however, Chinese investment in sensitive technology there could be a source of tension analysts say.

“China’s international surge of state-driven investments in emerging technologies should put the United States and our allies on notice,” said Representative Robert Pittenger, a Republican from North Carolina who said he was campaigning to improve information sharing on the issue with US allies.

MiddleEastMonitor

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