US National Security Adviser John Bolton had addressed the issue during his visit to Israel in January and warned against the entry of Chinese technology companies, such as Huawei and ZTE, to the Israeli market, the Israeli newspaper Haaretz revealed on Saturday.
The US warning came as Israeli Prime Minister Benjamin Netanyahu has been seeking to boost trade ties with China against Washington's will, Presstv reported.
Israeli newspaper Marker reported this week that Tel Aviv had rejected calls by Washington to set up a special committee to monitor China’s technology and investment.
The paper report also added that Israel is now seeking an approach to appease American officials.
Moreover, Haaretz revealed that Israeli officials were discussing a huge deal with Hong Kong-based Chinese company Hutchison over the establishment of a seawater desalination facility in the occupied territories.
The desalination plant has been described as the largest of its kind in the world.
In an executive order on May 15, Washington effectively banned US firms from doing business with Huawei, citing national security concerns.
The ban comes as Trump’s trade war on China remains in high gear. The US president hiked tariffs on $200 billion worth of Chinese goods on May 10 and threatened to slap tariffs of up to 25 percent on an additional list of Chinese imports worth about $300 billion, prompting China to respond with levies of its own.
The world’s two largest economies have yet to set a date to resume trade talks after they re-engaged in a tariff battle.