Israel is vowing to take tough measures to prevent China from using a second port facility in Haifa as a basis for surveillance, as a headache caused by a 2014 deal to modernize Israeli shipping continues to grow.
Earlier this month, Israeli regulators decided to allow a Chinese state-owned firm, Shanghai International Port Group (SIPG) Bayport Terminal Co. Ltd., to expand its facility from two to four platforms.
That has led to criticism, including from Indian rival Adani Ports And Economic Zone (Adani), which operates an older port facility in Haifa. Another port, at the southern city of Ashdod, is run by the state.
Israeli Prime Minister Benjamin Netanyahu was not involved in the decision to expand the Chinese presence, according to multiple sources. But there is concern that it could complicate relations with the U.S. and India.
The controversy dates back over a decade,…
