US pressures Israel: prevent Chinese companies from enabling 5th G cellular technology

US pressure to prevent infrastructure sales to companies in China continues. The US is asking Israel to prevent Chinese companies from enabling 5th generation cellular technology in the country. Yesterday, US Ambassador to Israel David Friedman met with new Minister of Communications Yoaz Handel and Foreign and Defense Committee Chairman Zvi Hauser, and discussed the matter.
The party of the two, Derech Eretz, said that the parties "discussed the challenges in the region and the common interests and discussed the application of sovereignty in Judea and Samaria and the Jordan Valley." It was also reported that "the ambassador invited the Secretary of Commerce to round up professional meetings in Washington as soon as possible."
Cellular 5 generation technology enables higher file transfer speeds, almost like the fiber optic wired infrastructure. The US is trying to convince its allies in the world not to use Chinese companies' equipment, including Wavi, in deploying 5-generation cellular networks, claiming Beijing could exploit its equipment for spying. Earlier this month, Reuters reported that the US Commerce Department had announced a change Export regulations to prevent Wavy from purchasing components based on American technology.
The Israeli authorities are facing two major decisions regarding how and the scope of approval that will be given to Chinese-owned corporations to operate in the local telecommunications market. The first issue is the purchase of equipment needed to establish communications networks, including technological components needed to deploy the network and establish the core activity of the cellular network.
Chinese companies, mainly Wavy and ZTE, offer alternative services to Western companies at lower prices. So far, the Israeli regulator has allowed Chinese equipment to be purchased for local cellular networks, but these have not been done mainly due to cultural and business barriers.
The second issue is whether Hong Kong-based Hutchison, which is headquartered in Hong Kong, will control the Israeli communications company. In December, Hutchison, who previously controlled Partner in Israel, applied for renewed control over the company. At present, the company has not received such a permit.

10 days after US Secretary of State Mike Pompeo warned of winning Chinese Hutchison Group tender for establishment of Sorek 2 Desalination - Joint Committee of Energy and Water Ministry Announces Joint Group of Desalination Company IDE and Bank Leumi in Tender The facility, which is being built near zero from sensitive security facilities, has an output of 200 million cubic meters per year, will be the largest of its kind in the world and increase Israel's desalination capacity by 35%.
The committee explained that IDE's proposal was at an unprecedented price of about NIS 1.45 per cube of water, a price that is lower by about 65 cents compared to the lowest price per cube of water currently paid. This reduction will save the water economy about NIS 3.3 billion over the period of the facility's operations. The Shurak 2 facility, with 200 million cubic meters of water per year, is expected to be the largest of its kind in the world, increasing the state's desalination capacity by 35%.
The Interdisciplinary Tender Committee for Seawater Desalination, which selected the winner jointly for the Finance, Energy, Water Authority and Inbal Companies, is headed by Itzik Marmelstein, Infrastructure Unit and PPP Prosecutor General.
The project will be funded by a consortium of entities including Bank Leumi and the German KFW Bank, as well as the European Investment Bank (EIB), which will provide a € 150 million loan for the project. This loan will save the water economy about NIS 100 million. The EU in Israel through its investment bank amid the Corona crisis is a seal of further investment in Israel in the field of infrastructure.
Finance Minister Israel Katz said: "I congratulate the Tender Committee and the Accountant General on the professional and fast work that has been done. The desalination facility, which will be the largest of its kind in the world, will significantly increase the country's water supply and save huge sums of money for the water economy. I will continue to work for the development of national infrastructures of strategic importance to the State of Israel. "