China Iraq trade growth climbed strongly in early 2025, as Chinese exports to Iraq reached $8.8 billion in just six months. According to a report from the Iraq Future Foundation for Economic Studies, exports rose 9.3% compared to the same period last year.
Moreover, the increase also marked a 13.2% jump from the second half of 2024. The top categories included machinery, electrical equipment, electronics, and cars. These sectors now dominate China’s trade with Iraq.
Specifically, machinery and electrical devices led the list, totaling $2.1 billion and making up 23% of total exports. That figure rose from $1.9 billion in the first half of 2024. At the same time, electronics and appliances reached $1.4 billion, a notable jump from $1 billion a year earlier.
Additionally, Chinese car exports soared by 30%, hitting $638 million. That’s a steep rise from $490 million during the same timeframe last year. Together, these categories represented 47% of total Chinese exports to Iraq.
However, despite this rise in Chinese exports, the overall trade volume dipped slightly. The total exchange between Iraq and China reached $26.6 billion, compared to $27.5 billion in early 2024. Iraq’s exports to China, mostly crude oil, totaled $17.7 billion.
Meanwhile, Iraq’s trade surplus dropped to $8.8 billion, down from $11.3 billion. This 21% fall reflected lower oil revenues and rising imports. Manar Al-Obaidi, the foundation’s head, blamed falling oil prices and higher import costs for the imbalance.
China Iraq trade growth now depends more on industrial and consumer goods than just oil. Consequently, this shift highlights a growing diversification in economic ties.
Looking ahead, experts believe this trend may continue. If Iraq stabilizes oil prices and boosts exports, the gap could narrow. Still, for now, China Iraq trade growth leans heavily on non-oil products, showing changing patterns in global trade dynamics.
