China-Iraq Ties: Chinese companies invest in Iraqi oil industry

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Iraq is open for business. That's the message coming from the country's diplomats and business leaders barely three months after the defeat of the ISIL terror group. With the world's fifth largest proven oil reserves, the country has much to offer an energy-hungry world and China has been quick to invest. CGTN's Tadek Markowski reports from Baghdad.

Hamid Sabre sells a lot of Chinese made products.

HAMID SABRE ELECTRICAL APPLIANCES SALESMAN "This one, good quality, it's come from China."

He isn't the only one. Rows of shops in the Iraqi Central Business District are overflowing with goods manufactured in China and elsewhere. Last year trade between the two countries topped 22 billion US dollars. China buys Iraqi crude oil and Iraq in turn imports goods and services.

AHMAD BERWARI IRAQI AMBASSADOR TO CHINA "The trade value between China and Iraq is not just high, which we are very happy about it, at the same time it's balanced. It means approximately 60% of the trade coming in favor of Iraq and 40% to China, and it means it is a sign or indication of healthy trade relations between the two countries."

Trade relations based on mutual needs, according to one local economist.

HAYTHAM AL-KHUZALI ECONOMIC ANALYST "China as you know has a big economy, because of all that production, it needs power sources. Turning to Iraq was a very normal decision.”

In January Iraq's Ministry of Oil awarded the construction of a new refinery at Al Faw to two Chinese companies. After 15 years of conflict, it's the kind of foreign investment that's seen as crucial to solving the country's own energy needs and rebuilding from the ground up.

AHMAD BERWARI IRAQI AMBASSADOR TO CHINA "We have to rebuild our whole infrastructure. It means any field you can imagine, starting from the vital oil fields, and coming to the other sectors like energy and transportation, communication, industry and also other infrastructure projects like housing as an example."

China had little to do with the difficulties that confronted Iraq and politicians here see that as a major positive for future business ties.

MOWAFFAK AL-RUBAIE IRAQI MP "Chinese are very, very welcomed in this country, because Iraqi people perceive China as apolitical."

Those ties could extend to further trade projects under Beijing's ambitious 'Belt and Road' initiative. Tadek Markowski CGTN, Baghdad.