China Moves To Protect Interests In Iraq

On March 22^nd, Chinese State Councilor Yang Jiechi and Vice President Li Yuanchao visited Baghdad on the request of the Iraqi government to discuss economic and humanitarian aid. Yang met with several Iraqi officials including the President and Prime Minister, stating that China is willing and able to aid with the reconstruction of Iraq’s economy. The details of Vice President Li’s meeting was kept confidential, but Iraqi sources indicated that it covered economic and security developments.

China has good reason to be concerned over developments in Iraq. In summer 2014, the Chinese embassy in Iraq estimated that around 10,000 Chinese nationals were working in Iraq, mainly for Chinese-owned oil companies. Most of these Chinese nationals are concentrated in southern Iraq, where serious fighting has yet to reach. However, China’s significant investment in the oil fields of Iraq mean that an Iraqi collapse could possibly jeopardize the Chinese economy; Iraq is China’s fifth largest source of oil and China National Petroleum is the single largest foreign investor in Iraq. By 2035, it’s predicted that 80% of Iraq’s oil exports will go to China. As China imports around 60% of all crude oil used in the country, any fluctuation in oil prices would have significant ramifications.

Though unsubstantiated by official sources, reports from both the Türkmeneli Cooperation and Cultural Foundation as well as the Cuban newspaper Prensa Latina imply that China is planning to aid Iraq militarily in the conflict against Islamic State, citing specific quotes from Councilor Yang that China is prepared to battle against Islamic State if necessary. This may not be surprising given China’s recent actions against their home-grown Uyghur Islamist threat, some of who are accused of working with Islamic State.

The Chinese are showing in Iraq that they are willing to deploy force if necessary to defend their interests abroad (as they have in South Sudan), safeguarding strategic investments acquired at minimal cost following the greater expense of American blood and treasure required to make such investments possible.

U.S. policy makers need to work to insure that American action in Iraq (and elsewhere) is furthering long term national interests broadly defined, rather than limiting ourselves to focusing solely on preserving a peace and status quo which only competitor nations (like China) are in a position to take advantage of.