According to a report from Haaretz, Israel has pledged to inform the US of any major deals it reaches with China and would reconsider such deals if Washington raised opposition.
The US has become increasingly concerned over China’s infrastructure projects in Israel, and Biden administration officials have warned Israel against doing business with Beijing. Chinese investments were also a rare point of contention between Israel and the Trump administration.
The Haaretz report said Israeli officials have been discussing how to approach China and are considering whether to stand by the US or stay "under the radar" so Israel doesn’t lose business with China.
Further according to the report:
Sources familiar with the matter said that Israel is taking a "business as usual" approach with China. Lapid recently met with the Chinese Science and Technology Minister Wang Zhigang as preparations for a mutual conference are underway.
While the US is discouraging Israel from doing business with China, it is not offering any alternatives. Israel has inquired about potential infrastructure investments from US companies but has not received any offers.
"Israel has asked the US about alternatives to Chinese companies in the infrastructure sector, a move that yielded no results so far," Haaretz writes. "A similar request was made to the U.K., and Israel hopes to advance mutual initiatives in the infrastructure sector with India and the United Arab Emirates as well."
The irony of Washington pressuring Israel and other allies not to do business with Beijing is the fact that China is the US’s top trading partner. Despite the robust economic relationship, the Pentagon and other US government agencies have declared China as the US’s top adversary.