Taiwan is interested in bidding for tenders in Israel’s public transport sector, which is one of the most prominent areas of Chinese activity in the country, Taiwan’s deputy minister of foreign affairs, François Wu (Wu Chih-chung) tells "Globes."
He says, "We have something to contribute to Israel based on our experience in public transport," he explains. Although Taiwan is excluded from international organizations including the UN, IMF, World Bank, Interpol and WHO, due to pressure from China, its innovation across different sectors has also impacted public transport. This is noteworthy, given that the average person in the West might associate Taiwan solely with computer chips. Public transport on the island is highly advanced by international standards, including high-speed rail, a national railway network, metro systems in major cities, and bus services.
The high-speed rail line along the island’s west coast, stretches from Taipei in the north to Kaohsiung in the south. The national railway network covers most of the country, including less populated areas, and offers a more affordable travel option. In urban transit, a particularly relevant topic for Israel at present, Taiwan operates metro networks in Taipei, including a line to the airport, as well as in the cities of Kaohsiung and Taichung.
Taiwan may enter a sector in Israel that is highly significant for China
Last month NTA Metropolitan Mass Transit System concluded the pre-qualification stage for the Infra 1 tenders for the Metro project. This stage involved 19 groups comprising 31 companies from countries including the US, India, Greece, France, China, and South Korea. These companies have now advanced to the implementation tender phase for projects with a total value of about NIS 65 billion.
While Infra 1 focuses on infrastructure construction, Infra 2 valued at about $30 billion, will encompass the systems required to operate the trains and stations. It is in this area that a Taiwanese presence may emerge. Relevant Taiwanese firms include Moxa, which provides communication solutions for trains; Advantech, which specializes in areas such as traffic management, and Tainet, which offers communication solutions. In short, Taiwan could potentially gain a foothold in a sector that is of great importance to its major rival, China, within Israel.
China’s presence in Israel’s public transport sector is highly visible, spanning both light rail and bus networks. On the light rail, Chinese involvement initially gained momentum but subsequently scaled back. The most significant Chinese presence is found on the light rail’s Red Line. This project involved, during its construction phase, companies such as CRTG (China Railway Tunnel Group) and EEB (China Railway Electrification Engineering Group), which led the tunneling and systems installation, as well as CRRC (China Railway Rolling Stock Corporation), which supplied the rolling stock. 49% of the equity in Tevel, the company operating the Red Line, is held by Chinese entities (Shenzhen Metro with 30% and CCECC with 19%), while the remaining 51% is owned by Egged.
Work is currently gaining momentum in the Tel Aviv metropolitan area on the Brown Line, which will utilize ART (Autonomous Rail Rapid Transit) technology, essentially an extra-long bus system. Next month, a Metronit (BRT) vehicle manufactured by the Chinese firm CRRC is set to begin operation in Haifa - a development that may signal the potential adoption of a similar model in the central region.
However, in recent years, US pressure is having an impact, resulting in the disqualification of Chinese bids. On the Blue Line in Jerusalem, the consortium of Dan and Danya Cebus was prevented from procuring rolling stock from CRRC. In Tel Aviv, companies including CRRC, CRCC (China Railway Construction Corporation), CHEC (China Harbour Engineering Company), and CREC (China Railway Engineering Corporation) were either disqualified or unsuccessful in the tenders for the Green and Purple lines.
Backing from Washington
Given US pressure against the Chinese presence, Taiwanese activity in Israel is generally expected to receive backing from Washington, which maintains a diplomatic presence of 600 personnel in Taipei, a number nearly equal to its presence in Tokyo.
Taiwan is considered a critical US ally, owing to its influence in the semiconductor sector, specifically in advanced chips. In terms of market cap, Taiwan’s TSMC ($2.058 trillion) ranks second only to Nvidia. It produces over 90% of the world’s most advanced chips. This is the fundamental reason why the US and all Western nations harbor concerns over China on the Taiwan issue. As part of Beijing’s "One China" policy, China views Taiwan as Chinese territory. Some Western assessments suggest that a Chinese invasion of the island is possible in the coming years. On the ground, Beijing’s military naval presence around Taiwan is intensifying, making such concerns far from unfounded.
The One China policy is also the reason why a visit to Israel by François Wu last December was kept secret until it was revealed by Reuters. At the time, the Israeli Ministry of Foreign Affairs offered no comment, while the Ministry of Foreign Affairs in Taipei said, "Taiwan and Israel share the values of freedom and democracy" a recurring message from Taipei, both in general and specifically regarding its relationship with Israel.
Ultimately, the public transport sector in Israel could serve as a visible illustration of the country's relationship with Taiwan, potentially through the introduction of electric buses. Several Taiwanese companies are active in this field; for instance, Master Transportation manufactures buses and supplies them to markets including Japan. Other notable players include Foxtron, whose vehicles are a common sight on the streets of Taiwan, as well as RAC, which served as a pioneer in the local sector.
Full disclosure: The author is a guest of Taiwan’s Ministry of Foreign Affairs (MOFA).
Published by Globes, Israel business news - en.globes.co.il - on November 12, 2026.
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