The War in Iraq has been costly for the United States to say the least, both in terms of lives lost and financially. Over the past seven years, the U.S. has spent billions of dollars and thousands of lives have been sacrificed in an attempt to restore peace and prosperity in Iraq. Only time will tell if the War in Iraq will produce lasting peace and stability that we all hope for. China also has spent billions of dollars in Iraq, however, China has invested their money in hopes of reaping huge profits. China has mostly invested in oil, infrastructure and has forgiven part of Iraq’s debt to promote a friendly trade partnership.
To fuel their growth, China has invested heavily in Iraqi oil. China has snagged five contracts to explore oil fields in Iraq and also has a $3 billion deal dating back to Saddam Hussein’s regime. Iraq is poised to overtake Saudi Arabia as China’s largest supplier of oil. In addition to winning the auctions for the right to drill, China has spent millions of dollars for equipment, security and personnel to protect their investments in Iraq. While the United States have viewed investments in Iraq as risky, China has dived in head first. Some oil contracts China has signed are 20 years in length, which shows China’s confidence in its investment in the long term and Iraq’s potential to deliver fuel to power a nation growing at break neck pace. In addition, China is planning on building a $2 billion railroad through Iran to the border of Iraq that could potential carry over into Iraq. The railroad would benefit many Iranians who travel to Iraq for religious pilgrimages and trade partners. While many countries have shied away from investing in the Middle East, China has boldly made huge investments, especially in Iraq, seeking enormous returns.
In addition to funding project in Iraq, China has also forgiven Iraq of 80% of its debt from the Saddam era. This lifts a huge burden off of Iraq as it focuses on rebuilding a country ravaged by war for the past seven years. Also, China’s forgiveness symbolizes the importance China places on Iraq as a trade partner. With billions of dollars worth of investments in Iraq, China understands the importance of a mutually beneficial relationship with Iraq. This is not lost on Iraq as well, Iraq sees China as a very strategic trade partner especially with its close proximity and China’s rise as a super power. China’s huge bet in Iraq looks promising and it seems as if China is doing all they can to protect and realize their investments.
Read more: http://dinarvets.com/forums/index.php?/topic/31341-chinas-huge-bet-in-iraq/page__pid__188523__st__0&#entry188523#ixzz0yzHujD8c
To fuel their growth, China has invested heavily in Iraqi oil. China has snagged five contracts to explore oil fields in Iraq and also has a $3 billion deal dating back to Saddam Hussein’s regime. Iraq is poised to overtake Saudi Arabia as China’s largest supplier of oil. In addition to winning the auctions for the right to drill, China has spent millions of dollars for equipment, security and personnel to protect their investments in Iraq. While the United States have viewed investments in Iraq as risky, China has dived in head first. Some oil contracts China has signed are 20 years in length, which shows China’s confidence in its investment in the long term and Iraq’s potential to deliver fuel to power a nation growing at break neck pace. In addition, China is planning on building a $2 billion railroad through Iran to the border of Iraq that could potential carry over into Iraq. The railroad would benefit many Iranians who travel to Iraq for religious pilgrimages and trade partners. While many countries have shied away from investing in the Middle East, China has boldly made huge investments, especially in Iraq, seeking enormous returns.
In addition to funding project in Iraq, China has also forgiven Iraq of 80% of its debt from the Saddam era. This lifts a huge burden off of Iraq as it focuses on rebuilding a country ravaged by war for the past seven years. Also, China’s forgiveness symbolizes the importance China places on Iraq as a trade partner. With billions of dollars worth of investments in Iraq, China understands the importance of a mutually beneficial relationship with Iraq. This is not lost on Iraq as well, Iraq sees China as a very strategic trade partner especially with its close proximity and China’s rise as a super power. China’s huge bet in Iraq looks promising and it seems as if China is doing all they can to protect and realize their investments.
Read more: http://dinarvets.com/forums/index.php?/topic/31341-chinas-huge-bet-in-iraq/page__pid__188523__st__0&#entry188523#ixzz0yzHujD8c