Why Did Iraq Suspend a $10 Billion Deal With China?

The decision to stall a massive oil-for-infrastructure agreement marks a turning point in Middle East power dynamics.
Iraq Suspends $10 Billion Oil Deal with China
Iraq has suspended its major oil-for-infrastructure agreement with China, which was established in 2019 as part of China's Belt and Road Initiative. The deal would have exchanged 100,000 barrels of Iraqi oil daily for Chinese-built infrastructure, including transportation, schools, hospitals, and energy facilities.
The suspension reflects Iraq's growing concerns about becoming too dependent on foreign investment, particularly Chinese influence. This decision is significant because:
It shows Iraq's careful balancing between needed development and maintaining strategic independence
It impacts China's regional influence, as the deal was part of China's larger $123 billion investment in the Middle East
It demonstrates changing Middle Eastern diplomatic approaches amid global power shifts
It highlights Iraq's economic challenges, with 95% of state income from oil and 30% of its 40 million citizens living in poverty
The pause suggests Middle Eastern nations are developing more sophisticated approaches to managing relationships with global powers while preserving their autonomy.