How does China enter the Iraqi market?

[You must be registered and logged in to see this image.]

How does China enter the Iraqi market?

China is trying to boost its role in Iraq's reconstruction project, reflecting its growing dependence on oil from war-torn Iraq, but political factors play an important role, a new report said.
"From China's point of view, it will look at direct investment in Iraq and focus on rehabilitating the infrastructure associated with the Iraqi oil industry. Beijing has emerged as an increasingly oil export partner by participating in the reconstruction of Iraq," said the daily BMI Research. "He said.
The booming Iraq-China partnership is said to focus on a significant increase in oil trade. Iraq's oil exports to China rose from zero in 2007 to 270 million bpd by 2017, the second behind Saudi Arabia, accounting for 8.8 percent of China's total oil imports.
China has dominated the growing investment role in the Iraqi oil sector since January when Iraq unveiled its intention to build an oil refinery at the port of Faw on the Gulf by two Chinese companies.
The oil ministry said the two companies, Bor China and Nerco Chines, would produce daily production of up to 300,000 barrels. Similarly, Baghdad awarded a contract to China-based Chen Hu to further develop the oil field in eastern Baghdad.
"Given China's growing importance as an export market for traditional export destinations such as the United States, Baghdad will remain keen to deepen partnerships with Chinese companies while bilateral interests are in line," the paper said.
"China will directly contribute to the investment in the infrastructure sector in Iraq through the provision of bilateral loans aimed at restoring the spirit of the Iraqi economy."
In February, international donors pledged $ 30 billion for Iraq's reconstruction efforts, while contributions from donor countries were not disclosed. China has been a major donor through the work of dozens of state-controlled enterprises in recent years.
China's motives seem to be in the direction of its broad geopolitical ambitions in the region. Iraq, in China's view, is a major route to the investment initiative and the promotion of growing eastern and western trade.
It is hoped that China will start working on the oil pipeline in Basra and Aqaba, where it is scheduled to play a role in the construction.
"China is the largest importer of oil in the world and the Middle East and has access to any huge commercial market in the world," said Yu Jee, head of foresight at the London School of Economics.
A recent report by the International Energy Agency said that "the Middle East, which represents about 200 billion dollars of trade, making the region the fourth trading partner of China after the United States, Japan and South Korea."
However, getting the money to rebuild Iraq is not an easy task. At the end of last month's donor conference on Iraq's reconstruction, Iraq could only secure one-third of the $ 100 billion that Iraq said it needed. Most of the money pledged was in the form of investment loans rather than direct aid.


[You must be registered and logged in to see this link.]