◼ POLITICS Bloomberg Businessweek September 16, 201934● The U.S. is pressuring Israel to rethink
investment from ChinaBetween a
Rock
and a
Trade War
THE BOTTOM LINE Bolton was responsible for many of the
Trump administration’s most hawkish foreign policy positions,
which have largely failed to generate results.defended the president’s diplomatic setbacks
as signs of strength. “It’s going to take more than
words,” Pompeo said. “He walked away in Hanoi
from North Korea; they wouldn’t make a deal that
made sense for America. He’ll do that with the
Iranians. When the Chinese moved away from a
trade agreement they promised they would make,
he broke off those conversations too.”
The day before his dismissal, Bolton argued
forcefully against a plan to ease sanctions on Iran
to help secure a meeting with President Hassan
Rouhani. While Trump had been deferential in pre-
vious Twitter firings—using effusive exclamation
points to oust former Secretary of State Rex Tillerson
and couching former Homeland Security Secretary
Kirstjen Nielsen’s dismissal in euphemisms—he was
notably cold in dispatching Bolton. “I informed
John Bolton last night that his services are no longer
needed at the White House,” Trump wrote. “I thank
John very much for his service.” �Nick Wadhams,
with Glen Carey, Jennifer Jacobs, and Jennifer EpsteinGray concrete walls rise out of the Mediterranean
off the coast of Haifa in northern Israel, part of
what, by 2021, is supposed to be among the world’s
most advanced class of seaports. The future ship-
ping terminal, along with another being built far-
ther down the seaboard in Ashdod, constitutes an
effort to attract larger vessels and more trade to
Israel, whose blue-and-white flag waves over the
construction site. It’s also been a major source of
tension with the U.S., Israel’s closest internationalally, because of what’s flying nearby: the red and
yellow colors of the People’s Republic of China.
U.S. President Trump has sought to portray
China as the world’s adversary on trade, ratchet-
ing up tariffs against its goods and encouraging oth-
ers to put pressure on the rising superpower. This
has proved difficult, in no small part because of
China’s “Belt and Road” initiative, a global infra-
structure development program that’s grown to
involve almost $600 billion of construction, with
more than 130 countries either signing deals or
expressing interest, including Israel. In 2015 the
Israeli government extended a 25-year offer for the
operation of the Haifa terminal to state- controlled
Shanghai International Port Group.
With national elections approaching on Sept. 17,
Prime Minister Benjamin Netanyahu can ill afford to
alienate the Trump administration on its signature
international issue. Trump has endeared himself to
Netanyahu by transferring the U.S. Embassy from
Tel Aviv to Jerusalem and recognizing Israeli sov-
ereignty in the disputed Golan Heights. Netanyahu
reciprocated by naming a new Golan settlement
after Trump and praising the American leader for,
among other things, quitting the Iranian nuclear
accord. “Over the years, Israel has been blessed
to have many friends who sat in the Oval Office,
but Israel has never had a better friend than you,”
Netanyahu told the president during a March trip
to the White House. An October Pew study found
that 69% of Israelis had confidence in Trump’s per-
formance as president, and many of Netanyahu’s
campaign ads prominently feature the U.S. leader.
China today is Israel’s second-largest trading
partner after the U.S., responsible for $11.5 billion
in annual transactions, according to data com-
piled by Bloomberg. U.S. officials have pressed
their longtime ally to create a process that would
mimic the Committee on Foreign Investment in
the U.S., or Cfius, which reviews certain transac-
tions for national security risks and has the power
to impose conditions on or block deals. While Israel
is unlikely to issue a formal decision before its elec-
tions, Daniel Shapiro, a U.S. ambassador to Israel
under President Barack Obama, says, “Israel and
Israeli companies are quickly coming to the reali-
zation that it’s going to be difficult to sustain busi-
ness as usual in work with China while keeping
the United States as the primary partner.” For the
U.S., Israel may be the ultimate test of its global
influence on trade. If the country doesn’t follow
America’s China strategy, who will?
Economic ties between Israel and China date
to 1979, before China had formally recognized the
Israeli state. Israeli billionaire Shaul Eisenberg◼ POLITICS Bloomberg Businessweek September 16, 201934
● TheU.S.is pressuringIsraeltorethink
investmentfromChinaBetween a
Rock
and a
Trade War
THE BOTTOM LINE Bolton was responsible for many of the
Trump administration’s most hawkish foreign policy positions,
which have largely failed to generate results.defended the president’s diplomatic setbacks
as signs of strength. “It’s going to take more than
words,” Pompeo said. “He walked away in Hanoi
from North Korea; they wouldn’t make a deal that
made sense for America. He’ll do that with the
Iranians. When the Chinese moved away from a
trade agreement they promised they would make,
he broke off those conversations too.”
The day before his dismissal, Bolton argued
forcefully against a plan to ease sanctions on Iran
to help secure a meeting with President Hassan
Rouhani. While Trump had been deferential in pre-
vious Twitter firings—using effusive exclamation
points to oust former Secretary of State Rex Tillerson
and couching former Homeland Security Secretary
Kirstjen Nielsen’s dismissal in euphemisms—he was
notably cold in dispatching Bolton. “I informed
John Bolton last night that his services are no longer
needed at the White House,” Trump wrote. “I thank
John very much for his service.” �Nick Wadhams,
with Glen Carey, Jennifer Jacobs, and Jennifer EpsteinGray concrete walls rise out of the Mediterranean
off the coast of Haifa in northern Israel, part of
what, by 2021, is supposed to be among the world’s
most advanced class of seaports. The future ship-
ping terminal, along with another being built far-
ther down the seaboard in Ashdod, constitutes an
effort to attract larger vessels and more trade to
Israel, whose blue-and-white flag waves over the
construction site. It’s also been a major source of
tension with the U.S., Israel’s closest internationalally, because of what’s flying nearby: the red and
yellow colors of the People’s Republic of China.
U.S. President Trump has sought to portray
China as the world’s adversary on trade, ratchet-
ing up tariffs against its goods and encouraging oth-
ers to put pressure on the rising superpower. This
has proved difficult, in no small part because of
China’s“BeltandRoad”initiative,a globalinfra-
structuredevelopmentprogramthat’sgrownto
involvealmost$600billionofconstruction,with
morethan 130 countrieseithersigningdealsor
expressinginterest,includingIsrael.In 2015 the
Israeligovernmentextendeda 25-yearofferforthe
operationoftheHaifaterminaltostate-controlled
ShanghaiInternationalPortGroup.
WithnationalelectionsapproachingonSept.17,
Prime Minister Benjamin Netanyahu can ill afford to
alienate the Trump administration on its signature
international issue. Trump has endeared himself to
Netanyahu by transferring the U.S. Embassy from
Tel Aviv to Jerusalem and recognizing Israeli sov-
ereignty in the disputed Golan Heights. Netanyahu
reciprocated by naming a new Golan settlement
after Trump and praising the American leader for,
among other things, quitting the Iranian nuclear
accord. “Over the years, Israel has been blessed
to have many friends who sat in the Oval Office,
but Israel has never had a better friend than you,”
Netanyahu told the president during a March trip
to the White House. An October Pew study found
that 69% of Israelis had confidence in Trump’s per-
formance as president, and many of Netanyahu’s
campaignadsprominentlyfeaturetheU.S.leader.
ChinatodayisIsrael’ssecond-largesttrading
partneraftertheU.S.,responsiblefor$11.5billion
in annual transactions, according to data com-
piled by Bloomberg. U.S. officials have pressed
their longtime ally to create a process that would
mimic the Committee on Foreign Investment in
the U.S., or Cfius, which reviews certain transac-
tions for national security risks and has the power
to impose conditions on or block deals. While Israel
is unlikely to issue a formal decision before its elec-
tions, Daniel Shapiro, a U.S. ambassador to Israel
under President Barack Obama, says, “Israel and
Israeli companies are quickly coming to the reali-
zation that it’s going to be difficult to sustain busi-
ness as usual in work with China while keeping
the United States as the primary partner.” For the
U.S., Israel may be the ultimate test of its global
influence on trade. If the country doesn’t follow
America’s China strategy, who will?
Economic ties between Israel and China date
to 1979, before China had formally recognized the
Israeli state. Israeli billionaire Shaul Eisenberg