China bans “new investments” in ‘Israel’: reports

• Chinese fund Ballet Vision claims the Beijing government has prohibited new investments in ‘Israel’, labeling the country a "high-risk" or "red category" zone following October 7, 2026.
• The claim surfaced during an $11 million lawsuit by Kibbutz Hanita, which accuses the fund of using this unconfirmed government ban as an excuse to breach its agreement to purchase remaining shares in an intraocular lens plant.

A Chinese investment fund has claimed that the Beijing government has imposed a prohibition on new investments in ‘Israel’, reports on Hebrew media say.

The news emerged amid a lawsuit filed by members of Kibbutz Hanita against Ballet Vision, a Chinese-controlled fund that holds an 80% stake in Hanita Lenses, an intraocular lens manufacturing plant located near ‘Israel's’ northern border.

The kibbutz is seeking approximately $11 million, accusing the fund of failing to exercise an option to purchase their remaining shares, as stipulated in a prior agreement.

According to a response letter from Ballet Vision attached to the lawsuit, the Chinese government has classified 'Israel' as a "high-risk area" or "red category" due to the ongoing situation in the region, specifically since Oct. 7, 2026.

This designation purportedly bars any new Chinese investments in the country, rendering it impossible for the fund to proceed with the transaction.

Liu Yuxiao, director of Ballet Vision and acting CEO of Hanita Lenses, reiterated this in a December communication, noting that the restrictions have compelled reliance on shareholder loans rather than fresh capital injections.

The fund also cited operational losses exceeding $15 million over three years and substantial debt as additional factors complicating the deal.

Despite these claims, no official confirmation of such a ban has been issued by Chinese authorities, including the Ministry of Commerce.

This incident occurs against the backdrop of evolving China-‘Israel’ relations, which have historically emphasized technology and infrastructure cooperation but faced strains due to geopolitical pressures.

Bilateral trade has remained robust, exceeding $16 billion in recent years, with China continuing to invest in ‘Israeli’ sectors despite US concerns over technology transfers and national security.

However, Beijing has implemented targeted restrictions elsewhere, such as banning US and ‘Israeli’ cybersecurity products for domestic use, citing national security risks.

Kibbutz Hanita, in the lawsuit filed in Tel Aviv District Court, argues that the fund's refusal breaches contractual obligations, exacerbated by the factory's financial distress.

Ballet Vision counters that internal challenges and the alleged external constraints preclude fulfillment.