China Iraq trade growth continues to show strong momentum, especially in direct Chinese exports during the first half of 2025. According to the Iraq Future Foundation for Economic Studies, Chinese exports to Iraq reached $8.8 billion. This reflects a 9.3% increase over the same period in 2024 and a 13.2% rise from the second half of 2024.
Notably, machinery and electrical equipment topped the list of exports. These goods accounted for 23% of total exports, totaling $2.1 billion. This figure increased from $1.9 billion in the first half of 2024. In addition, electronics and electrical appliances also posted significant growth. Exports in this category reached $1.4 billion, compared to $1 billion last year.
Furthermore, Chinese car exports surged by 30%, climbing to $638 million. This number rose from $490 million in the same period of 2024. Together, these three categories made up 47% of China’s direct exports to Iraq in the first half of 2025.
Meanwhile, the overall trade volume between the two nations dropped slightly. Total trade reached $26.6 billion, showing a 3.3% decrease from $27.5 billion in early 2024. Iraq’s exports to China stood at $17.7 billion, still led by crude oil.
However, the trade surplus in favor of Iraq fell sharply. It dropped to $8.8 billion, down 21% from $11.3 billion during the same time in 2024. Manar Al-Obaidi, head of the foundation, explained the drop. He cited rising Chinese imports and falling oil prices as the main reasons.
Moreover, the shift reflects how economic ties are changing. While oil exports declined, non-oil imports from China strengthened. Consequently, this marks a shift in trade patterns between the two countries.
China Iraq trade growth will likely continue as demand for machines, electronics, and vehicles rises. Overall, the two economies remain closely linked, even as global energy markets fluctuate.
Looking forward, if oil prices stabilize, Iraq may regain a stronger trade surplus. Until then, China Iraq trade growthmay depend more on diversified imports than crude oil exports.
