The Battle of Haifa
The IDF had been furiously researching in preparation for their defense of Haifa. Obviously, considering that their opponents were known to largely be trained in the Soviet way of warfare, being literally embedded with famous Soviet tank commanders of the Second World War as advisers, the relevant battles to study were the Battle of Berlin, the Battle of Helsinki, the Battle of Zagreb, and the Battle of Belgrade. All four were Soviet victories where horribly outgunned and outnumbered forces made the Soviets pay for every inch, but were still ultimately defeated by excellent Soviet elan, training, and firepower. However, the IDF ironically also studied three other battles - Rehe, Dalian, and Mukden, where the PLA defended three cities, ultimately triumphing in the third. The IDF understood that their opponents were some of the most experienced troops in urban warfare in the world. However, the IDF also had advantages.
Israeli troops were also some of the most motivated and trained in the world. Although most of the reservists were not as well-trained, they were quickly led by grizzled IDF veterans, many who had fought in Egypt and were excellent soldiers. Combined, the Israelis had around 20,000 regular troops and 180,000 reservists. The Israelis had no air cover, but roughly 240 tanks (200 from Egypt, 40 who survived the loss of Northern Israel) and 150 artillery pieces. Luckily for the Israelis, Haifa also had one advantage. Haifa largely faces the sea, with the southern and eastern edges of the metropolitan area largely guarded by Mount Carmel. As such, the only way to advance into Haifa was from the Northeast alongsides the coast of the Haifa Bay, which meant that the Israelis knew exactly where the main assault would have to come from - they would attack the Krayot, the northern suburbs of Haifa.
Much to the surprise of the IDF, the attack didn't come at first. They had expected the attack to come immediately...but for a week, nothing happened. In fact, the Syrian Army seemed to completely avoid Haifa, much to the shock of most Israelis and most North Chinese. Conspiracy theories abounded as to why this was happening, many suspected that the Syrians had been scared off by an Israeli nuclear program (the Israelis had a nuclear program, but they had no functioning nuclear weapons). It would only be years later that the details of the Assad-Begin Agreement would be revealed.
Prime Minister Menachem Begin's first call was in fact to the most famous commander of Syrian forces in the war, General Mustafa Tlass, who had become an anti-Zionist icon after one of his men, who he then personally congratulated and lauded, was video-taped beheading a dozen helpless Israeli POWs with an axe. Begin's aides were repulsed that this would be the man, largely viewed as responsible for the ethnic cleansing of Israeli Jews in Northern Israel, that Begin would first contact. However, much like how Tlass's anti-Israeli credentials were unquestionable, Begin's (who was once an Irgun terrorist bombing British forces on behalf of Israeli independence) credentials as a hardline Zionist were also unquestionable. In an angry rebuke of his aides, Begin screamed at one that the world had abandoned Israel and that he was ready to do anything to ensure its survival. Begin, a sharp political thinker, had quickly realized that there had erupted great tension between the Syrians and the North Chinese, especially as the North Chinese edged out Syria's hopes of simply annexing Northern Israel with their creation of Judeopalestine. He aimed to take advantage of this.
Discussing the issue directly with Tlass's deputy, Hafez al-Assad, the deal hammered out was fairly simple. Israel would share all of its nuclear research with the Syrians and give them several advanced French, British, and American weapons that had been gifted to Israel. In addition, Israel would release most of the Palestinian guerillas and fighters in its custody, delivering them to Syrian custody. In return, the Syrians would essentially cease large offensives into Israeli territory (chiefly Haifa), re-orientating instead to take advantage of another situation. The Syrians, increasingly unsympathetic to the North Chinese, their Kurdish allies in Communist Iraq, and whatever the hell Judeopalestine was meant to be, had grown to favor instead the Iraqi Nationalists instead.
Finally, the Jordanian monarchy had grown incredibly unpopular due to their refusal to engage in the war against Israel, largely because the British had threatened to cut off support to Jordan if they engaged in the war against Israel (because Israeli troops were at the time aiding British troops in Egypt). The Jordanians needed British support for their war defending the Iraqi Hashemite royalists, so they complied. Ironically, the invasion forced Israel to withdraw all of its troops from Egypt anyways, and the immediate collapse of the security situation in Egypt meant that the British could maintain their support of Jordan, but they would be unable to step it up. Taking all of the Palestinian fighters, the Syrians would then unleash them on the distracted Jordanians, hoping to spark a crisis. Instead of advancing on Haifa, Syrian forces wheeled around far to the east of Haifa, pretending as if they would bypass Haifa. In reality, their target was the Jordanian-annexed Palestinian West Bank. The informal deal between Begin and Assad would be that Israeli and Syrian forces would continue to skirmish, but that they wouldn't launch major offensives. Some might suspect there was a rotten deal between Israel and Syria - but very few people did. After all, considering how many massacres Tlass and Assad had overseen against Israeli civilians...nearly everyone assumed the two couldn't possibly have come to any kind of agreement.
The North Chinese were livid when the Syrians informed them that they would be "bypassing" the city of Haifa, viewing it as strategically unimportant. That was an obvious lie, because Haifa was Israel's only natural harbor, which is why the IDF viewed defending Haifa as Israel's last stand. In a secret internal meeting, the North Chinese politburo declared Syria a social-fascist-imperialist state based on Arab chauvinism, building closer relations to the Kurds of Northeast Syria. In the meantime, after a short delay, the decision was made - the People's Volunteer Army would still be attacking Haifa. They had come far too long to give up now.
With only around 100,000 troops (60,000 PLA, 30,000 local Arabs, 10,000 Kurdish Peshmerga), the PVA was actually outnumbered by the IDF. However, the PVA had 1,200 tanks, 1,400 artillery pieces, and air dominance, wildly outgunning the Israelis. In addition, they had better equipment. Ironically, the primary weapon of Israeli reservists were surplus German Kar-98K rifles from the Second World War, which typically had their swastikas defaced and replaced with Stars of David. They were plentiful and this allowed the IDF to arm most of the reservists. However, they were not well-suited for urban warfare in the same way that the PVA troops, armed primarily with Type 56 (the North Chinese AK-47), surplus SVT-40s, and surplus PPSH-41s. Luckily for civilians, the delay allowed the Israelis extra-time to evacuate civilians from Haifa, though Prime Minister Begin ordered that the primary job of the merchant marine was to bring in more soldiers, not evacuate civilians, because it was feared that evacuating all of the civilians would allow the North Chinese to intensify air support and artillery bombardment (despite Tlass's massacres in Judeopalestine, the North Chinese argued they were engaging in a "humanitarian intervention"). As a result, only children and the elderly were evacuated from Haifa (other residents were handed spare rifles).
Once the bombardment began, IDF troops hunkered down in the homes of the Kravot. Although they took large losses, enough of them had survived the bombardment to harass North Chinese tank columns (ironically once again, their primary weapons were German-made Panzerfausts). Although the Panzerfausts didn't work very well against T-54s, they generally were able to disable or even destroy T-34s caught off guard. This severely slowed the North Chinese advance, ending hopes of a quick breakthrough, especially as Israeli counter-battery fire, although much smaller, disorganized advancing North Chinese troops. The Israelis, with their artillery set up on top of the Haifa University buildings at Mount Carmel, had actually sent their special forces to guard the artillery there, the 35th Paratroopers Brigade. Hoping to disable those brigades, the North Chinese assigned the Kurdish Peshmerga to fight up Mount Carmel and disable the Israeli artillery. Although the Kravot did eventually fall, it took two entire weeks, buying the Israelis crucial time in Haifa itself.
Interestingly, the Israelis adopted a very different tactic, hoping not to repeat the defeats of Berlin, Belgrade, and Zagreb. In fact, they had directly learned from the North Chinese triumph at Mukden - the name of the game was offense. Slowly giving up ground to North Chinese troops throughout the city of Haifa, only once North Chinese forces had secured most of the low-ground (pushing most Israeli forces up the slopes of Mount Carmel) did the Israeli counter-attack commence, with IDF regulars leading squads of IDF reservists in a bid to swarm Chinese advanced guards with sheer numbers and lightning fast attacks. In the congested and largely destroyed urban landscape of downtown Haifa, better-armed North Chinese troops were quickly surrounded in detail by numerically superior Israeli squads. The advanced guards of the North Chinese army were utterly annihilated, even as their automatic weapons quickly inflicted horrible losses on attacking Israelis. The survivors, taking captured weaponry, quickly attacked the main force of the North Chinese army, grinding the offense to a halt and even starting to push the line back several blocks to the point where control of downtown Haifa was once again contested. A grinding stalemate was quickly established, both in Haifa itself and on Mount Carmel, where neither the Peshmerga nor the Israeli commandos showed any willingness to budge (engaging in 24/7 skirmishes). Eventually, upon hearing of unexpected political developments, the PVA signaled an orderly retreat, as their troops withdrew from the ruins of downtown Haifa into the Krayot suburbs, where North Chinese air support and armored strength could interdict any further Israeli offensives in the more open-terrain.
A great deal of criticism would be eventually leveled at Prime Minister Begin, but for now, it seemed that the Israeli last stand had not turned into a last stand at all. However, the human costs to Israeli were immense. Over two and a half months, their industrial center and harbor of Haifa was more or less completely destroyed, and an estimated 60,000 Israelis (civilians, military, and um, well, some who didn't fit into either category) had perished in the battle (compared to roughly 20,000 PVA-aligned forces). The psychological damage to the PVA was tremendous - having taken proportionally heavy losses, the PVA retreated back into North Israel (Judeopalestine). Blaming the Syrians for their defeat in Haifa, the PRC officially cut off military relations with the Syrians, choosing instead to fortify North Israel against both the Israelis and Syrians. With the immediate threat of destruction put off, this would give the IDF critical time to rapidly modernize and expand, which they hoped would prevent Israel from ever being so horrifically outgunned in equipment as it was during the Nazareth and Haifa offensives. Indeed, the IDF would quickly develop into one of the world's most advanced armies.