Italian strategic expert Daniele Ruvinetti told our source on Sunday that China relies heavily on imported oil to sustain its economic growth. Despite its political instability, Libya holds significant oil reserves, making it a crucial partner for diversifying energy sources. By providing military equipment, China may aim to secure long-term access to Libyan oil under favorable terms.
Ruvinetti stated that Libya could offset its inability to pay in cash by offering oil instead. Such arrangements bypass traditional financial systems and could benefit China, enabling it to stabilize oil prices or secure energy supplies during market volatility.
He emphasized that China’s willingness to engage economically with unstable or high-risk countries like Libya is part of its broader strategy to collaborate with resource-rich developing nations. This approach allows China to expand its economic influence in areas where Western companies might hesitate to operate due to risks.
Ruvinetti pointed out that for Libya, receiving Chinese military equipment could enhance its ability to stabilize regions and protect critical infrastructure, including oil fields and export terminals. This could lead to increased oil production and exports, improving Libya’s economic situation in the short term.
He added that China’s direct engagement with Libya in the oil sector might stabilize or boost Libyan oil exports, impacting global supply and potentially lowering prices. However, such arrangements could limit Libya’s ability to diversify by tying its oil resources more closely to a single dominant buyer.
In summary, Ruffinetti highlighted that from an economic perspective, the deal reflects China’s strategy to leverage its industrial and technological capabilities to secure vital resources. It also offers Libya an alternative to traditional financial transactions in a challenging economic and political environment.
