Iraqi Prime Minister's first strategic visit to China
On 18th July, Iraqi Prime Minister Nouri al-Maliki arrived in Beijing for his first official visit to China as a guest of his Chinese counterpart Wen Jiabao.
Iraq realises that China has been an emerging power and is also oil-hungry for its development and at the same time China recognizes that Iraq has the fourth largest oil reserves in the world. Both nations have mutual interests to strengthen their ties.
A number of huge deals with Chinese oil companies were cancelled in 2003 after the downfall of former leader Saddam Hussein. Steps have been undertaken to re-establish the trade ties. Iraq was China's seventh largest oil supplier last year.
During al-Maliki's four- day stay in China, President Hu Jintao met with him, and Premier Wen held talks with the Iraqi prime minister.
Before the trip, Nouri al-Maliki said, "Iraqi hopes to mend diplomatic ties with China and other important countries in the world. This is in the interests of two countries. And this visit aims to further solidify the relations of the two countries."
Maliki noted that Iraq is becoming gradually stable in recent years. He said the major task for the government is the country's reconstruction. This requires making the best use of Iraq's oil and natural gas to get adequate funding.
The prime minister stressed that China plays a significant role in Iraq's reconstruction
Nouri al-Maliki said, "One of the purpose of my visit this time to get more Chinese companies to join the construction of Iraq's infrastructure as well as power, crude oil and other important industries, helping Iraq restore its own industry." He hoped the Chinese government will continue supporting and aiding Iraq's economic development.
Chinese leader Hu Jintao welcomed Iraqi Prime Minister Nuri al-Maliki on 19th July when they met for talks in Beijing to enhance bilateral trade and economic ties.
Maliki informed Hu of his hopes to foster Sino-Iraqi cooperation, and to develop economic, political, scientific, and cultural partnerships with the Chinese regime.
During his tour, the leaders of the two countries discussed the development of bilateral relations, especially in the fields of
* energy,
* transportation,
* agriculture,
* commodities,
* services and investment.
Ali al-Mousawi, an adviser to Maliki, told the media that the prime minister's visit was aimed at attracting more Chinese investment in Iraq.
Iraq needs about $36 billion U.S. dollars to finance strategic and construction projects. This includes the reconstruction of railways, ports, schools, and other projects, which Chinese investments might be able to supply.
China has been currently involved in several sectors in Iraq, including electricity, water, manufacturing and oil. Last month, China National Petroleum Corporation started operations at the Al-Ahdab oilfield in Iraq, making it the first major new area to start production in Iraq in 20 years. The site is expected to produce around 25,000 barrels of oil per day in the first three years.
Gao Zugui, associate president at the Research Institute for International Strategic Studies, affiliated to the Party School of the Central Committee of Communist Party of China, said "Iraq has been facing lots of challenges since its reconstruction started and China has taken an active part in the process through both bilateral and multilateral cooperation. China has also reduced and cancelled Iraq's debts and offered various kinds of assistance."
"All these efforts by China have laid good foundations for the two countries to enhance political understanding and mutual trust," he added. In October 2010, Iraq raised its estimate of national crude oil reserves to 143.1 billion barrels, Oil Minister Hussain Al-Shahristani said overtaking Iran as home to the world's fourth-largest petroleum deposits.
The 24% percent increase in estimated reserves lifts Iraq past neighboring Iran, which has 137.6 billion barrels, while leaving it behind Saudi Arabia, Canada and Venezuela.
The Iraqi government may hope to use the augmented reserves figure "to show the potential of Iraq" to foreign investors, including Chinese, said Ahmed Jiyad, an Iraq specialist at the Centre for Global Energy Studies, a London-based consulting firm. It may also want to use the higher estimate to strengthen Iraq's case for a large production quota within OPEC.
Energy has always been an important field for both countries and was believed to have focused during Maliki's visit. In essence, China eyes oil as Iraqi PM sees Chinese investments during trade talks.
An unprecedented need for resources is now driving China's foreign policy. A booming domestic economy, rapid urbanization, and increased export processing are increasing the country's demand for oil and natural gas, industrial and construction materials, foreign capital and technology.
China is the world's second-largest importer and, it alone accounted for 31 percent of global growth in oil demand. Now that China is the workshop of the world, its hunger for electricity and industrial resources has soared.
With US troops set to leave by the end of this year, China will find more opportunities as Iraq starts to shoulder more responsibilities for its development and defense.
"China is a permanent member of the UN Security Council and is influential in the formation of international decisions, so politics will inevitably come up," he said.
China and Iraq share a traditional friendship adding that the two countries have witnessed smooth development of bilateral relations, steadily growing economic cooperation and increasing cultural exchanges.
China is ready to work with the international community and to continue to provide assistance for the Iraqi people to improve their livelihoods.
Given the above scenario, Iraq and China have mutual interests and the visit has ushered in a framework of cooperation and has sought to strengthen further collaborative effort between the two nations.
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