China still winning major Israeli infrastructure deals

At a time when the Western world, and the United States in particular, seeks to sever ties with China in the field of strategic infrastructure, Chinese companies continue to participate in the construction of huge projects of great importance to the Israeli economy.

Dahlia Energy recently signed planning, procurement and construction agreements with three Chinese companies, CHEC, HEI and THCC, to build two power plants. The agreements include the construction of the Dalia 2 power station on the Tsafit site, with a budget of 3.8 billion shekels, and the Eshkol Avshel power station on the site of the Eshkol power station, with a budget of 3.3 billion shekels.

Regarding government tenders, there is a process through which investments by Chinese companies are scrutinized by the Foreign Investment Review Committee, which has blocked many investments by Chinese companies in Israel in recent years. However, they have found a back door to enter into investments in critical facilities by signing agreements with private companies, such as Dahlia.

China Harbor Company, part of the consortium that won the construction of the two Dalia power plants, was excluded from the tender to build a refinery port in Haifa. After the Israeli Ports Company took this step “for reasons of national security,” the Chinese appealed to the courts. Last year, a judge in the Tel Aviv District Court made it clear that he intended to rule against China Harbor and reject the petition submitted to him. The Chinese company subsequently withdrew the petition to avoid a ruling.

Dahlia’s projects are not China Harbor’s first in the energy sector. Complaints were also raised about the company’s involvement in the construction work of the Kesem power station, but at the time the National Security Council found no problems with the project. The National Public Works Department wrote in response to a request from the Rosh Ha’ayin municipality, “The foreign company is not constructing or operating the station, but rather is carrying out contract work for the construction benefit (the work is estimated to be very small in scale compared to the project).

Against the global trend

There is also strategic infrastructure already built with Chinese assistance. For example, in February 2025, the Kochav Hayarden pumped-storage power plant, which was built with an investment of NIS 2 billion, began operation. PowerChina was the contractor and builder of the project. At the same time, there are Chinese companies that own ownership: PMEC owns 33.3% of the Alon Tavor power plant, along with Israeli partners Miftash Shamir and Rabak.

All this clearly contradicts the global trend of taking into account the Chinese threat. About a month ago, the CBS program 60 Minutes was broadcast in the United States, in which US General Tim Hoge, former commander of Cyber ​​Command, head of the National Security Agency and head of the Central Security Agency until last April, warned that China “is targeting not only the US military and industrial establishment, but also Americans in their homes.” He described how Chinese state-owned enterprises are present in power plants, water filtration facilities, hospitals, and American media.

Not a word about China

Last week, Energy and Infrastructure Minister Eli Cohen responded to a question posed by MK Moshe Torpaz (Yesh Atid) regarding China. “The State of Israel is a free market economy that wants there to be competition in all construction of infrastructure facilities. We of course work with everyone,” Cohen said, without the word “China” appearing in his answer.

“However, and I am not referring to any specific country, there is a body in the National Security Council responsible for examining foreign investments, and in any case where there is concern that this entity has interests that could harm the national security of the State of Israel, we refer the request, and any request to build a power plant, which is an essential and strategic facility, reaches the National Security Council, and is examined there, and without specifying cases of companies, projects or countries, there have been cases in which projects have been stopped in the past.”

Published by Globes, Israel Business News – en.globes.co.il – on November 16, 2025.

© Copyright Globes Publisher Itonut (1983) Ltd., 2025.