China, a country notorious for trying to take advantage of smaller, cash-strapped economies, is now taking advantage of the security vacuum in Iraq created by the United States’ withdrawal from the West Asian country to align with groups militias to gain a foothold in the country’s lucrative oil industry, the media reported.

China’s increasing control over oil is now a major concern for resource-rich Iraq. Beijing has always resorted to using shrewd tactics to trap these countries and later cripple them economically, and now it is using the same tactics in an attempt to gain control of this West Asian country, according to the Washington Post.

Two decades ago, in 2003, the United States invaded Iraq to free the Iraqi people from the tyrannical rule of Saddam Hussein. Today, Baghdad is witnessing the rise of China’s influence, a prime example of Beijing seeing the security vacuum as an opportune time to dominate Iraq.

China has made many attempts to seize control of Iraq’s oil and oil resources. However, each attempt was thwarted by Iraq’s Ministry of Oil. Russia’s Lukoil and US oil giant Exxon Mobil wanted to sell their stakes in major fields to companies backed by the Chinese government, but the Iraqi Ministry of Oil’s intervention prevented that.

Even British BP considered selling a stake to a Chinese company, but was dissuaded by Iraqi officials. In a scenario where China succeeds in derailing the deal, it could well trigger an “exit” of international oil giants that would leave Iraq open to a wider takeover by Beijing, according to the Washington Post.

This growing Chinese expansion into Iraq is a cause for concern as the Iraqi government has expressed deep concern over China’s attempt to virtually take over the Middle Eastern country. Recently, there was also a protest near the headquarters of the Chinese oil company in the southeastern Iraqi province of Maysan.

This reflects Iraq’s growing concern over China’s expansion into the oil sector. Moreover, even think tanks are also now talking about China.

The Washington Post cites the Italian think tank Geopolitica and notes that China is taking advantage of the security vacuum in Iraq created by the withdrawal of the United States from the West Asian country, and its companies are teaming up with militia groups to gain a foothold in the Iraqi oil industry.

According to a report by the Financial Times, cited by an American media portal, in 2021 alone, Beijing has signed deals worth $10.5 billion in Iraq’s construction sector.

Iraq, China’s third-largest oil exporter, is keen to secure Chinese investment in infrastructure development. This is because several US and European companies have been reluctant to invest in Iraq due to rampant corruption and militias (reportedly loyal to Iran) targeting US coalition forces and Western interests.

Although China prefers to work with strong and centralized state authorities, it has found ways to deal with an unstable Iraq. China is becoming ambitious in expanding its influence in various key sectors of Iraq, namely communications and trade.

Moreover, Washington cited a recent Shanghai Fudan University report for 2021 and noted that Beijing had signed $10.5 billion in new construction deals in Iraq, nearly one-sixth of China’s investment in the Belt and Road Initiative that year.

For China, Iraq has become the number one trading partner in the region and the third largest supplier of oil, just behind Saudi Arabia and Russia. Its energy reserves and strategic location – near the Persian Gulf and the Strait of Hormuz – are proving critical to the BRI.

China’s crackdown on Iraq is aimed not only at strengthening economic ties between the two countries, but also at leveraging all of this and turning it into increased political influence over a period of time. The US withdrawal from Iraq led to an increase in Chinese power in Iraq.

According to the media portal, three countries – the United States, Iran and Turkey – are watching the build-up of Chinese power in the West Asian region, as they remain actively and deeply connected to Iraq.

Hmmn