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The Ministry of Construction and Housing is barring Chinese companies from competing in the Israeli residential construction market

29/10/2024

Last month, the Ministry of Construction and Housing in Israel published a call for foreign companies to submit applications to be included in a database of foreign contractors for the construction of residential buildings in Israel. In an unprecedented decision, the Ministry has stated that it will not include in the database: “An Offeror whose Home Country has been rated in one or more of the following years (2020, 2021, 2023) as a ‘Tier 3’ country in the annual report of the U.S. State Department regarding Human Trafficking pursuant to the Trafficking Victims Protection Act.” Tier 3 countries are those whose governments do not fully meet the minimum standards for trafficking victim protection and are not making significant efforts to do so. China is listed as a Tier 3 country, along with Russia, Belarus, and others (Israel is listed as Tier 2). This decision makes Chinese companies ineligible for selection to compete in the Israeli residential construction market. Several Chinese companies have petitioned the Administrative Court, arguing that this condition is discriminatory, unreasonable, and disproportionate. Although an interim injunction was not granted, the petition is expected to be heard soon.

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