China’s direct exports to Iraq surged in the first six months of 2025. This marked a strong rise compared to both previous periods. The total value reached $8.8 billion, showing a 9.3% increase from early 2024. Compared to the second half of 2024, the rise was 13.2%.
China’s direct exports to Iraq plays a major role in understanding this trend. Trade between Iraq and China continues to grow in complexity and volume. Machinery and electrical equipment topped China’s export list. These goods made up 23% of total exports, worth around $2.1 billion. In contrast, the same items brought in $1.9 billion in early 2024.
Next, electrical and electronic appliances made a significant jump. These exports reached $1.4 billion and made up 15% of total exports. This figure rose from $1 billion a year ago. Meanwhile, Chinese car exports to Iraq also grew rapidly. They jumped by 30% to $638 million from $490 million last year.
Together, these three product categories represented 47% of China’s direct exports to Iraq. As demand for Chinese goods rises in Iraq, this trend signals a deepening trade relationship. This continued growth underlines how China’s direct exports to Iraq shape both economies.
On the other side of the trade balance, Iraq’s exports to China reached $17.7 billion. Crude oil remained Iraq’s dominant export. However, total trade exchange between the two countries dropped slightly. The trade volume declined by 3.3% from the same period in 2024. Last year, the value stood at $27.5 billion, while in 2025, it fell to $26.6 billion.
The trade surplus in Iraq’s favor also decreased. It dropped to $8.8 billion, down 21% from $11.3 billion. This drop reflected two factors. First, Iraq’s oil exports dropped in value due to falling oil prices. Second, the value of imported Chinese goods rose.
According to Manar Al-Obaidi, head of a local economic foundation, these elements combined to reduce Iraq’s trade advantage. Despite this, China’s direct exports to Iraq remain on a sharp upward path, playing a central role in bilateral trade.