CHINESE SEEK TO JOIN POSTWAR GULF REBUILDING SCRAMBLE

China is pushing hard for a share of Kuwaiti business associated with postwar reconstruction. It is pursuing contracts for reconstruction of large industrial facilities, cleaning up Persian Gulf oil spills, and restoration of roads, bridges, and airports damaged during the Iraqi invasion. Beijing points out some of its enterprises continued to work on projects in the United Arab Emirates and Yemen during the war. "If we don't try to obtain contracts now," said the representative of one

June 24, 1991

2 min read

China is pushing hard for a share of Kuwaiti business associated with postwar reconstruction.

It is pursuing contracts for reconstruction of large industrial facilities, cleaning up Persian Gulf oil spills, and restoration of roads, bridges, and airports damaged during the Iraqi invasion.

WAR WORK STATUS

Beijing points out some of its enterprises continued to work on projects in the United Arab Emirates and Yemen during the war. "If we don't try to obtain contracts now," said the representative of one large Chinese construction firm, "we will lose out on our future chances to participate in this market."

Beijing officials noted that with the onset of war, this Chinese firm lost large amounts of money owed to it for projects completed in Iraq and Kuwait through frozen deposits in the two countries' banks, loss of machines and equipment in the war zone, and being forced to pay for bringing Chinese workers home from the gulf area.

In addition, because of the war, the Chinese construction company couldn't continue work in several African countries that was financed by Kuwaiti economic and social development funds.

Before the Iraqi invasion, China held $530 million worth of contracts in Kuwait. As many as 20,000 Chinese workers were there during peak seasons.

China is also seeking new contracts with Saudi Arabia, U.A.E., and Iran.

Beijing says it will be more cautious in cooperating with Iraq in the future and will seek ironclad guarantees it will be paid for work performed.

Beijing officials recognize that most gulf contracts associated with war damage have been awarded to western firms. But they are tying to obtain subcontracts from U.S., French, Japanese, and Italian firms that have been granted gulf reconstruction work.

"We are prepared to send our laborers, technicians, and engi-neers to Kuwait and other countries immediately," Chinese officials said.