Chinese companies go where others fear to tread.
Here’s the latest example: At some point today, Iraqi Oil Minister Hussein al-Shahristani will arrive in Beijing to finalize a contract with a unit of China National Petroleum Corp. on developing Iraq’s Ahdab oil field. It would make CNPC the first foreign company to get exploration rights from Baghdad since the 2003 U.S. invasion.
The government has said the Ahdab field in southern Iraq may produce about 90,000 barrels a day, Bloomberg news says.
It’s timely to recall that a Chinese company last fall announced it would invest $3 billion in Afghanistan to develop the Aynak copper field in what is the largest foreign project ever in that country.
The mine will employ some 10,000 people.
Chinese companies eagerly scour the world for such resource deals. Sometimes analysts say the Chinese overpay for deals, but they also lock up raw materials to keep the Chinese economy humming.
There's no surprise that the Chinese are on the hunt for foreign resources. Their advance on Iraq is just one of many examples. China is spreading it's wings to ensure it's future assets (natural resources critical to maintaining China's economic growth) and it's following America's example in becoming a regional hegemony.
China's expansion into Iraq (and Africa) is in it's own best interest not because of America's involvement, but because of common ground/interest with Russia for the available resources.
Expect to see China's emergence in Asia to look similar to America's dominance in the western hemisphere. Thomas Barnett illudes to China's future in the "TED" brief at www.thomaspmbarnett.com
Posted by: BShelton | August 24, 2008 at 04:15 PM
Is American who don't know "Fartabulla" means in Chinese, with no respect!
But only CHICOMS corrupt!
Posted by: Rick A Hyatt | August 22, 2008 at 01:25 AM
shenqh
Absolutely.
1. American and British can't get the oil, because they invaded Iraq. Imagine the resentment and the sabotage from Iraqis if they do.
2. American spent billions of dollars in Iraq to maintain stability. It is a black hole. It drains American. Any money made by Iraq will help to reduce the spending of American.
3. China is desperate for oil and willing to spend big money for oil.
So everybody are happy.
Posted by: jeff | August 21, 2008 at 10:19 PM
If only Ameriican and British were in Iraq, they will be blamed the war for oil. Once China is involved, American and Britsh can claim that look, the war was not for oil. Lucky for China.
Posted by: shenqh | August 21, 2008 at 01:22 PM
So the Iraq war is not for oil. And finally Chinese is lured to be in bed with American. Everybody are happy and in harmony now.
Posted by: jeff | August 21, 2008 at 12:42 PM
All the existing oil fields have been divided between US and British firms, right?
Posted by: on the other hand | August 21, 2008 at 06:13 AM