China becomes the biggest beneficiary of the Iraq War

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In 2003 the United States launched the war against Iraq, since then Iraq has become one of the largest oil producers in the world but now, China has become the largest consumer of oil produced by Iraq.

Information and data show that daily oil production in Iraq is 1.5 million barrels of which China is buying 50%, and the proportion is expected to be further expanded. Chinese companies are currently biding for stake of one of Iraq’s largest oil fields held by ExxonMobil.

U.S. National Defense University, Middle East expert Denise Natali, said: “China has become the most beneficiary country of the rapid development of Iraqi oil industry. China needs energy, they(Iraq) also need to enter the market.”

Before the war in Iraq, Iraq’s oil industry had just started, China’s state-owned oil companies seized this opportunity to invest annually over 20 billion dollars and hundreds of workers in Iraq, more importantly, Chinese oil companies show a willingness to act in accordance with the rules of the new Iraqi government. And in order to win contracts, these companies are willing to compressed their margins.

A former United States Department of Defense Middle East department official said, “We lost, China had nothing to do with the Iraq War, but it won economy benefits from the war. Indeed, our Fifth Fleet and the Air Force is helping them to achieve these benefits. ”

Source: Tencent Finance

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