Report reveals US pressure on Iraq to suspend Chinese agreement
Report reveals US pressure on Iraq to suspend Chinese agreement
11-23-2024
Information/Translation..
A report by the American website The Diplomat, which specializes in political and economic affairs, revealed on Saturday that Iraq has effectively suspended the oil-for-infrastructure agreement it concluded with China worth $10 billion, as the ambitious project, which was initially established as part of the projects signed under the Belt and Road Initiative launched by Beijing in 2019.
The report, translated by Al-Maalouma Agency, stated that “Iraq’s $10 billion oil-for-infrastructure agreement with China has effectively been halted. The suspension of the agreement appears to stem from growing concerns within Iraq’s leadership about the long-term consequences of such deep reliance on foreign investment, especially in the context of increasing scrutiny of China’s global economic strategies by the United States and its Western allies.”
“The suspension is a pivotal moment for Iraq as it reassesses its role in the changing geopolitical landscape of the Middle East, highlighting the complex balance between economic necessity and strategic autonomy in an increasingly multipolar world,” he added.
“Far from being a mere bilateral issue, this development embodies the complex interplay of regional powers and global interests that characterizes contemporary Middle Eastern geopolitics,” he explained. “The pause represents a major shift in Iraq’s approach to international partnerships, reflects broader regional concerns about the long-term consequences of infrastructure-focused diplomacy, and underscores the delicate balance that Middle Eastern countries must maintain between leveraging foreign investment for domestic development and preserving their strategic autonomy.”
The report said, “This strategic pause illustrates the growing complexity of international relations in a region where historical Western influence intersects with emerging Eastern economic power. The pause illustrates how Middle Eastern states are developing a more nuanced approach to managing relations with global powers, moving from simple binary options to more complex diplomatic strategies as regional states seek to modernize their infrastructure while maintaining sovereignty. Iraq’s decision may serve as a model for how to deal with similar challenges in the future.”
“The origins of this strategic partnership date back to 2019, when Baghdad and Beijing formalized an agreement under China’s Belt and Road Initiative that would have secured $10 billion in Chinese financing for Iraq’s reconstruction efforts. The terms were clear but far-reaching: Iraq would provide China with 100,000 barrels of oil per day for 20 years in exchange for comprehensive infrastructure development, including vital transportation networks, educational institutions, health care facilities, and energy infrastructure,” he noted.
He stressed that “the United States is concerned about China’s growing influence in vital energy corridors, and Washington’s response to the growing Chinese presence in Iraq highlights the continued importance of traditional power politics in the region, where it maintains significant influence over Baghdad’s strategic decisions. This influence is reinforced by Iraq’s reliance on external financial support, with 40 percent of its annual budget coming from international loans, especially from institutions allied with the United States.”
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