China in Iraq: winning without a war

Naser AL-Tamimi*        Al Arabiya

Not long ago, Robert Kaplan, the well-known American writer, “complained” in The Wall Street Journal, saying: “... We have liberated Iraq so that Chinese firms can extract its oil.” The sentiment that was expressed by Kaplan was in fact reflecting the evolution of the situation in Iraq, where the Chinese presence was rising strongly. Tellingly, Beijing’s position in Iraq evolved quickly, from among the most outspoken of critics of the 2003 U.S.-led invasion to topple Saddam Hussein, to emerging as one of the biggest economic beneficiaries of the war in Iraq.

China’s Catching-up Game

Ten years after the American invasion, Iraq turned into an important energy / trade partner for China. Indeed, the trade between Iraq and China doubled almost 34 times. The volume of bilateral trade between the two states soared to $17.5 billion by end-2012 from small amount of $ 517 million in 2002. In the same period, the trade between Iraq and the U.S. increased only 5.6 times. The bilateral trade between both countries rose to $ 21.6 billion by end-2012 from $ 3.8 billion in 2002. Last year, China was both the second-largest purchaser of Iraqi exports, $ 12.6bn, (after the U.S. $ 19.6bn) and the second-largest supplier of imports, $ 4.9bn, (after Turkey $ 10.8 bn), according to latest data from the U.N. Comtrade data. The United States still Iraq’s largest trade partners, however the current trends suggest that China will soon overtake America to become Baghdad’s top trade partner.

China sees role for regional bloc in Afghanistan

Gleb BRYANSKI   REUTERS


BEIJING - (Reuters) - A regional bloc bringing together China, Russia and central Asian states wants to play a bigger role in Afghanistan, Chinese President Hu Jintao said in an interview published on Wednesday, as regional leaders gathered for their annual summit.

The future of neighbor Afghanistan, facing the withdrawal of most foreign combat forces by the end of 2014, is likely to be discussed at the two-day meeting of the Shanghai Cooperation Organisation (SCO), whose member states fear growing instability spilling across the central Asian region as the pullout goes on.

"We will continue to manage regional affairs by ourselves, guarding against shocks from turbulence outside the region, and will play a bigger role in Afghanistan's peaceful reconstruction," Hu was quoted as saying in an interview with China's official People's Daily newspaper about the SCO summit.

"We'll strengthen communication, coordination and cooperation in dealing with major international and regional issues," said Hu.

The SCO, founded in 2001, includes China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. Iran, India, Pakistan and others attend the summits, but not as full members.