New | China pledges to pump more funds into Iraq's oil sector, infrastructure

Beijing pledged to pour in more investment into Iraq’s oil and infrastructure sector, as the Chinese government stepped up its presence in the Middle East.

Chinese Foreign Minister Wang Yi made the pledge on a rare visit to Iraq, a nation sitting on the world's fifth-largest proven oil reserves and seeking to shore up its economy after a nearly decade-long war.

Wang also outlined three broad points for China’s role in the war-torn nation after discussions in Baghdad with his Iraqi counterpart, Hoshyar Zebari, on Sunday.

He said Chinese companies had extensive experience in giving Iraq’s energy sector a boost, which would be a fundamental factor in Iraq’s economic overhaul.

Moreover, Chinese companies are willing to help Iraq create a comprehensive development strategy for its oil sector, Wang said in a ministry statement.

Beijing will also participate in major Iraq projects including in electricity, telecommunications and ports development, Wang added. 

Baghdad is seeking to raise its oil revenue – which provides around 90 per cent of government revenue, according to economic indexes – to fund the reconstruction of its infrastructure, which sustained heavy damage during the conflict.