China investment in energy and construction contracts along the Middle East increases, furthering their country’s influence in the region.
A Green Finance & Development Center based in Fudan University of Shanghai released a report about the China’s Belt and Road Initiative (BRI) which is an investment centered in the recreation of the Silk Road in this modern times noting that the investment increased in Africa and Iraq with a total of $10.5 billion closed contract in construction.
China increases Middle East investment as US backs out of regionhttps://t.co/qdJcdUzBnV
— Fox News (@FoxNews) February 6, 2022
The increase is emphasized this year after the BRI’s dropped 25% in investment for the last year 2016 to 2020.
Chinese political and security affairs senior research fellow Dean Cheng of the Heritage Foundation explained that the project was meant to keep Chinese businesses running, particularly construction-related business.
China and the Middle East already have a strong relationship due to the trading and supply of crude oil, as Saudi Arabia is at the top spot for China’s suppliers in 2020 with their total of $28.1 billion supplied crude oil for the Far East country.
Deng also noted the possibility of China’s massive economic boost once the BRI project was completed.
“[China’s] going to want to build political ties to the region, and in that regard it’s useful to look at the breakdowns and see how the Chinese are continuing to invest in Iran, even as they buy oil from Iran in defiance of U.S. sanctions, but [they] also buy more oil from Saudi Arabia, the UAE, as well as sell arms to that region to build political ties,” Cheng explained.
