China’s Exports to Iraq Fall 31.7% in First Nine Months of 2026

Chinese customs data showed a significant decline in exports to Iraq during the first nine months of 2026, with shipments valued at $8.9 billion, down from $13 billion in the same period of 2025, representing a 31.7% decrease.

Manar Al-Obaidi, head of the Iraq Future Foundation for Economic Studies and Consultancy, said in an analysis published on social media that the sharpest declines affected capital goods and construction materials. Imports of machinery and equipment fell by 49%, iron and steel by 56%, steel products by 36%, and electrical equipment by 35%.

Al-Obaidi added that imports of drilling and grading equipment plunged by 86%, cranes by 97%, and generators by 64%. He said the figures point to a slowdown in investment spending and construction activity in Iraq. Air-conditioning imports also dropped from $932 million to $367 million, accounting for approximately 14% of the overall decline.

In contrast, the automotive sector recorded notable growth, with car imports rising by 84% to reach $635 million, making vehicles Iraq’s leading import category from China for the first time. Meanwhile, everyday consumer goods, including clothing, poultry, and sunflower seeds, remained relatively stable or registered modest growth.

Al-Obaidi concluded that the figures indicate continued consumer demand in Iraq alongside a slowdown in investment and construction projects. He noted that declining imports of steel and machinery point to a contraction in public spending on infrastructure, while the private sector has yet to compensate for the shortfall.

He also highlighted an increase in import concentration, with the ten largest import categories accounting for 26.9% of total imports, compared with 24.5% previously, indicating a growing concentration in Iraq’s import structure.