China’s Diplomacy Utilizes U.S. Designated Iran-Backed Militias To Secure Its Growing Economic Interests In Iraq

By S. Ali, MEMRI

Introduction

Iraqi and Chinese officials sign the 2019 Agreement (source: Kurdistan24.net, September 24, 2019)

In September 2019, Iraq signed a Memorandum of Understanding (MoU) with China to develop economic and trade ties between the two countries. The “Oil for Reconstruction” memorandum proposed several massive projects included building the Grand Port of Al Faw in Basra, creating a shorter transportation corridor between the Middle East and Europe, and bypassing the Suez Canal through the expansion of a national rail network.

Yet China’s economic deal with Iraq faced some resistance from former Iraqi Prime Minister Mustafa Al-Kadhimi, who sought to limit the influence of Iran-backed militias in Iraq and was accused of obstructing Iraq’s participation in Belt and Road Initiative (BRI), a global development strategy adopted by Beijing in 2013 involving infrastructure development and investments in nearly 70 countries in Asia, Africa, and Europe.

However, under the new government of Iraqi Prime Minister Mohammed Shia’ Al-Sudnai, who was nominated for the position by Iran-backed parliamentary blocs on October 27, 2022, Beijing’s outreach to build strategic relationships with Baghdad seems to be advancing more rapidly.

MPs affiliated with Iran-backed militias, as well as Telegram outlets affiliated with these groups continue to advocate for closer economic ties with China while shunning Western investment opportunities, particularly U.S. investments.Their ongoing, multi-layered campaign aims at pressuring the Iraqi government to participate in China’s BRI, which some analysts see as a disturbing expansion China’s soft power and a counterweight to the West.

To this end,  Iran-backed groups are using their political representatives in the Iraqi Parliament to force the government into conceding that its Oil for Reconstruction deal was just the first step in the broader BRI initiative.

Further, the militias are legitimizing their demands of partnering with China by staging a seemingly grassroots movement using their supporters, while also using their social media outlets to threaten adversaries and silence critics.   

The following report highlights the key figures affiliated with the Iran-backed militias in Iraq who are promoting Chinese interests, including MPs and militia leaders, as well as the messaging employed by their Telegram channels . The report also examines some aspects of China’s strategy to win the heart and minds of Iraqi Shi’ites.