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A U.S. official warned Israel on Wednesday to be cautious about investments from China that could cause cyber security problems and lead allies to restrict intelligence sharing with Israel.
The Trump government has taken measures to limit Huawei and ZTE's penetration into the U.S. market as a threat to espionage. Both companies are China's largest manufacturers of network equipment, and both deny any intent to spy on intelligence.
Huawei and ZTE's interest in Israel worries the United States. In 2013, the Israeli government agreed to build a civilian port near Haifa, Israel, where the Mediterranean fleet of the United States is anchored.
"We know that the threat of cyber attacks is increasing every day," Dan Brouillette, Deputy Secretary of energy, told Reuters during his visit to Israel.
In his meeting with Israeli officials, he said that he would "share our experience and express concern about China's investment in Israel and hope to have a dialogue on the best practices."
In a statement, Yuval Steinitz, Israel's energy minister, said Brouillette "expressed concern about foreign investment."
But Israel did not immediately comment on China's investment.
In December 2016, Huawei acquired HexaTier, Israel's cloud database security company, for $42 million. This is a deal reached after the CEO of Huawei visited Israel. In the same month, Huawei also acquired Toga Networks, an IT research company, but the amount of the acquisition was not disclosed.
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