Iraq rebuffs fresh Chinese investment proposals amid Beijing’s tightening hold over its oil industry

(ANI):Iraq has begun rebuffing Chinese investment proposals to move away from Chinese dependence.As skepticism grew over China’s investments in the region and globally, Iraq has begun efforts to limit the growing influence of China, reported Asian Lite International.

By May 2022, Iraq’s Oil Ministry had forestalled three major deals with Chinese companies that would have allowed them greater control of oil fieldsThese agreements include Russia’s Lukoil, Britain’s BP and American oil major Exxon Mobil which wanted to sell stakes in major fields to Chinese state-backed firms. However, Iraq’s Oil Ministry has intervened to stop these deals from materializing, reported Asian Lite International.

Oil has always been a key factor in world politics. And in the 21st century, its significance has increased even more as energy has become a significant driver of economic growth.The Middle East and specifically Iraq are one of the richest lands in terms of oil reserves. And therefore, Iraq has become important for Chinese foreign policy. It is said that the country is the third-largest oil supplier for Beijing.

Beijing has been the topmost investor for Baghdad and the latter has benefited the most from the Belt and Road initiative with the receipt of USD 10.5 billion for infrastructure projects such as a power plant and an airport, reported Asian Lite International.

However, Baghdad has been skeptical of China’s growing influence in the oil industry that was also perceived unfavourably by the Western oil companies, which remain crucial markets for the Iraqi oil industry, reported Asian Lite International.The officials from the government of Iraq have been constantly expressing their grave concerns about the speed at which Beijing is trying to take over Iraq in the oil sector.