The Chinese refinery major , Sinopec, has agreed to pay 8.3 billion US dollars for buying out the interest in oil blocks in Iraq and West Africa, from the Swiss Oil Explorer, Addax Petroleum.
The buyout is expected to increase the crude oil resource base for China in the long run. Of late, China is seen investing more money in non-US treasury investments, with a view to spread the risk. China generates billions of dollars of trade surplus every month, of which so far over 1.3 trillion dollars have gone into US treasury purchases.
The Chinese government has , of late, started investing in commodities and also corporate buyouts to secure the raw materials for the future.