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Report: Iraq main beneficiary of China’s Belt and Street Initiative in 2021
MEE workers
Wed, 02/02/2022 – 16:34
Iraq was the highest beneficiary of China’s Belt and Street Initiative (BRI) in 2021, attracting about $10.5bn in financing, a examine printed on Wednesday stated.
The oil-rich nation took centre stage in what researchers from the Inexperienced Finance and Growth Middle at Shanghai’s Fudan College described as a “sturdy shift” in China’s BRI investments in the direction of the Center East and North Africa.
Based on the report printed on Wednesday and reviewed by Center East Eye, China’s monetary investments and contractual cooperation throughout the 144 BRI international locations totalled $59.5bn in 2021 – roughly according to $60.5bn in 2020.
However in Arab and Center Jap international locations, the extent of development funding and contracts rose 360 p.c and 116 p.c, respectively.
In recent times, Beijing has emerged as a key monetary participant throughout the area. In Egypt, it’s collaborating in President Abdel Fattah el-Sisi’s infrastructure increase, the place it’s constructing seaports and the tallest tower in Africa.
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In the meantime, commerce with the Gulf states has soared lately attributable to China’s rising urge for food for Center Jap vitality.
Researchers at Fudan stated that China’s oil-related finance and funding beneath BRI ballooned from $1.9bn in 2020 to $6.4bn in 2021.
Beijing is at present the highest commerce companion of the Gulf Cooperation Council (GCC), with bilateral financial exercise between oil-rich international locations within the bloc and the world’s second-largest financial system hitting $180bn in 2020.
Wednesday’s report comes as many understand the US function within the area as diminishing, citing America’s frayed ties with some Gulf allies, its withdrawal from Afghanistan and the announcement final yr of the top of the US fight mission in Iraq.
Howard Shatz, an analyst with the Rand Company, instructed MEE beforehand that the narrative of a US exit from the area had been exaggerated, and that regardless of its investments, China was unlikely to attempt to exchange the US because the area’s safety assure, from which it advantages.
“Close to to medium time period, I do not assume China will attempt to supplant US safety,” Shatz stated. “If Beijing begins offering safety within the area, then it might have to decide on sides.”
Certainly, regardless of the withdrawal from Iraq, the US nonetheless retains about 2,500 troops within the nation for a coaching and advisory function to fight the Islamic State (IS) group.
Area’s myriad conflicts
And whereas China has been cautious to not wade into the area’s myriad conflicts, working equally with foes reminiscent of Iran, Israel and Saudi Arabia, it has not evaded the instability that has plagued different traders.
Final month, gunmen opened fireplace on two autos belonging to Chinese language oil big Sinopec in Iraq’s southeastern Maysan province, wounding two Sudanese guards working for the corporate.
And in December, rocket and gunfire focused the premises of Chinese language oil companies firm ZPEC in Iraq’s southern province of Nasiriyah, with out inflicting any casualties or injury.
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The majority of China’s engagement with Iraq is dominated by vitality.
Iraq is the third-biggest exporter of oil to China and the 2 international locations are cooperating to construct the $5bn al-Khairat heavy oil energy plant in Karbala province. Sinopec has additionally received the contract to develop Iraq’s Mansouriya fuel discipline close to the Iranian border.
However Iraq, which continues to be recovering from the army marketing campaign to defeat IS, can be trying to Beijing for assist in upgrading its ageing infrastructure.
Final yr, a Chinese language firm received the contract to construct a civilian airport in Nasiriyah, and Sinotech is about to construct 1,000 colleges in Iraq, which might be paid for via oil merchandise.
Researchers at Fudan say they count on an acceleration of inexperienced tasks as a part of China’s BRI, according to the federal government’s pointers for 2022.
They famous that inexperienced vitality finance and funding edged as much as $6.3bn in contrast with $6.2bn in 2020, and that China didn’t interact in coal tasks in 2021, according to Chinese language President Xi Jinping’s pledge to not construct coal-fired vegetation abroad.
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