Israeli minister reassures U.S. over Chinese telecoms
investment
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[January 18, 2019]
JERUSALEM (Reuters) - Israel is taking U.S.
concerns about possible cyber-security risks posed by Chinese
investments into account and is in any case skilled at protecting itself
from information theft, a senior Israeli official said on Friday.
Earlier this week, visiting U.S. Deputy Secretary of Energy Dan
Brouillette cautioned Israel over Chinese investment in the country,
suggesting Israel's allies could limit intelligence-sharing with it as a
result.
This echoed concerns conveyed by U.S. President Donald Trump's national
security adviser John Bolton to Israeli Prime Minister Benjamin
Netanyahu over the use of Chinese telecommunications equipment in
sensitive sectors.
"We are of course sensitive to the U.S. sensitivities. And we are taking
them into account," Israeli Energy Minister Yuval Steinitz said when
asked about the U.S. remarks on 102 FM Tel Aviv Radio. He had spoken
with Brouillette about the issue.
"It's clear we have good relations with China and that's very important,
and with Russia and almost the whole world, but the United States is our
number one ally. That's how it has been and how it will be," said
Steinitz.
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Asked about concerns over any potential information theft, he said: "We
are good at protecting ourselves."
The Trump administration, seeing a risk of Chinese telecoms being used
for espionage, has taken steps meant to curb market penetration by
Huawei Technologies Cos Ltd [HWT.UL] and ZTE Corp <000063.SZ>, two of
China's biggest network equipment makers.
Both firms have denied that their products are used to spy.
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![](../images/011819pics/busine29.jpg)
Deputy Secretary of the
U.S. Department of Energy Dan Brouillette attends a meeting in
Chile, September 7, 2017 REUTERS/Rodrigo Garrido/File Photo
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In December 2016 Huawei acquired Israel's HexaTier, whose technology secures
databases in the cloud, for $42 million. This followed a visit to Israel by the
Chinese technology giant's CEO. That same month Huawei also acquired IT research
firm Toga Networks for an undisclosed amount.
Israeli media have reported that ZTE has shown interest in Israel's tech sector
as well since it sent a senior delegation to the country in 2013.
Israel and China do more than $10 billion a year in trade.
Chinese investment in Israeli technology has been on the rise for years. Israeli
tech startups raised $325 million from Chinese investors in the first three
quarters of 2018, up 37 percent from a year earlier, according to the Israel
Venture Capital Research Center. The third quarter was the strongest for Chinese
investment in the past five years.
(Reporting by Ari Rabinovitch; Editing by Mark Heinrich)
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