China is building the city that connects the new Silk Road in Iraq.
- A new project between China and Iraq has been awarded to create 300,000 housing units on the outskirts of Baghdad.
- Baghdad the capital of Iraq and Beijing the capital of China have previously signed a 20-year contract to develop Iraq and give a continuous supply of crude oil to China.
- The new Silk Road is what China aims to create to increase the stability of parts of the Asian continent and links the continent together economically.
The Iraqi government, led by Prime Minister Mohammad Shia Al-Sudani is aiming to build about 300,000 housing units in the outer parts of Baghdad, it will also include hospitals, schools, universities and commercial centers.
The process will be handled by the East China Engineering Science and Technology Company, China National Chemical Engineering Company and Shams Al-Binaa after they were partnered for the $2 billion project on the 29th of December.
In 2019, Baghdad and Beijing signed a contract for 20 years to supply the Chinese firms with 100,00 barrels per day of Iraqi crude oil, while China would handle development projects in Iraq with the revenue.
Since the contract was signed, China has built 1,000 schools, installed power plants, developed city airports and several other projects.
China is attempting to maintain stability in West Asia, to secure the future energy market for Beijing and the shipment of manufactured goods.
Contracts to build 4 more cities and 10 more contracts will be revealed in the year 2024, all to be completed after 4 to 5 years of their starting date.
This is all increasing China’s investment in the Middle East and South Asia in part of their Belt and Road (BRI) Plan that was announced in 2013 (the New Silk Road) which is a trans-continental passage that links Beijing with southeast Asia, south Asia, central Asia, Russia and Europe by land, which has a targeted completion date of 2049.
The BRI has helped lift nearly 40 million people out of poverty and continued to improve the living location and income of people affected.
