FROM TRADE EXCHANGE TO STRATEGIC ALLIANCE: THE FUTURE OF IRAQI - CHINESE OIL RELATIONS

Abstract

The purpose of the current research is to explore the role of economic diplomacy as a tool of sustainable oil cooperation between Iraq and China. Based on the results of the research, it becomes clear that the oil cooperation between the two countries has moved from the stage of transactional cooperation towards a more strategic alliance, based on diplomatic tools that help minimize political and economic risks. It turns out that according to the results of the survey, most respondents perceive economic diplomacy as crucial for the sustainability of oil cooperation regardless of any risks related to the instability in the region and environment issues that could be overcome by diplomatic and technical solutions. Besides, there is positive sentiment about the future of cooperation, which might include the involvement of the downstream oil industries and linking the oil cooperation to development projects such as the Belt and Road Initiative.