News Analysis: Having the fifth-largest oil reserves in the world and wanting to increase its production to three million barrels of oil a day puts Iraq in a very nice position in the oil industry. Since fuel hungry nations need oil, Iraq, with its great reserves, can choose to do business with whom it wants. In this case the primary selected country for commercial partnership is their friend to the north-east: China.
The historical approach of China in international business is “Bucks Not Bayonets” is the catalyst for good long-term commercial transactions. Since the Chinese have a wise culture developed through thousands of years of experience, it does not make the aggressive blunders like countries only two-hundred plus years old. Threats and hostile actions buy one NOTHING in the long term. One has to develop the trust of others over time. Adroit leaders of nations understand this, foolish ones do not. Cooperation, not catastrophe, should be the driving force amongst countries.
The close relationship between the Iraqis and the Chinese will benefit both nations well.
Reference: http://tinyurl.com/m22xs68