World
Belt And Road Initiative Paves The Way For China's Energy Security With Deeper Collaboration In West Asia
Chinese President Xi Jinping (Lintao Zhang - Pool/Getty Images)
China has increased collaboration with West Asia, especially with Iraq, since the introduction of the Belt and Road Initiative. Iraq's significance in trade via the Persian Gulf and strategic location make it vital to China's BRI.
China heavily relies on West Asia for its energy resources to satisfy its ever-increasing demand for energy. As the world's largest importer of crude oil, China buys over 10 million barrels of crude per day, with a whopping 50 per cent from West Asia.
Due to the country's reliance on imported energy and the importance of oil-producing nations, West Asia has catapulted into an essential energy market for China.
Iraq has been a crucial partner to China for energy engagement since the launch of the BRI in 2013, ranking third after Russia and Pakistan. In 2022, China imported a considerable amount of crude oil from Iraq, making it the highest contributor to China's imports.
Iraq's oil exports to China increased by 47.49 per cent, reaching 55.49 tonnes and generating $39.04 billion in revenue. In contrast, China's crude oil export was $22 billion in 2018, but this number surged to $49 billion in 2022 due to the contribution of the Iraq trade partnership.
China's economy is significantly affected by the instability in the West Asian region, resulting in fluctuations in oil prices. As a result, China has invested billions of dollars in infrastructure projects and bilateral agreements with countries such as Saudi Arabia, the UAE, Iran, and Iraq.
According to statistics, China invested $114 billion in the mentioned countries between 2005 and 2018, with a majority of 51 per cent of this investment occurring between 2013 and 2018.
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