US Secretary of State Mike Pompeo recently made a swift visit to Israel—his first trip overseas since the onset of the coronavirus pandemic. Although Iran and the application of Israeli law over parts of the West Bank were discussed, his priority was to pressure Israel to limit its economic ties to China. Two weeks later, it was announced that Hutchison Whampoa, a Chinese company, had not won the construction tender for a major Israeli desalination plant. Israel has little choice but to accede to American wishes in such matters, but it should not give up its relations with China entirely.

Jerusalem and Beijing have cultivated a flourishing economic relationship in recent years, but that bond is limited by the tension it has engendered with a Washington wary of China’s growing footprint in Israeli strategic assets. In an effort to mitigate this tension, Israel’s security cabinet has decided to establish a mechanism to monitor foreign investment.