TEHRAN - The value of non-oil trade between Iran and China stood at $4.631 billion during the first two months of the current Iranian calendar year (March 21-May 21), according to the head of the Islamic Republic of Iran Customs Administration (IRICA).

Foroud Asgari said that China was Iran’s top non-oil export destination in the mentioned two-month period, importing $2.425 billion of goods from Iran.

Exporting commodities valued at $2.206 billion to Iran, China was Iran's second source of non-oil import in the said two months, the IRICA head added.

As previously announced by Abolfazl Akbarpour, the deputy head of IRICA for planning and international affairs, the value of non-oil trade between Iran and China stood at $34.1 billion in the past Iranian calendar year, which ended on March 20, 2025.

 He said that importing non-oil goods worth $14.8 billion from Iran, China was the first destination of Iranian products in the past year.

He also announced that by exporting non-oil products valued at $19.3 billion to Iran, China was the second source of import for Iran in that year.

On May 4, Iran-China Business Development Forum convened at the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA), with the participation of China’s ambassador to Iran, the head of Iran’s Trade Promotion Organization (TPO), the chair of the Iran-China Parliamentary Friendship Group, and senior officials from the Tehran Chamber.

A large number of business leaders from both countries attended the event, where state, legislative, and private-sector strategies for deepening bilateral trade ties were outlined, the TCCIMA portal reported.

Opening the event, TCCIMA Head Mahmoud Najafi Arab welcomed Chinese delegates who traveled to Iran for the Iran Expo. He expressed gratitude for the Chinese ambassador’s continued efforts to expand economic ties between the two nations.

Najafi Arab said Iran and China share thousands of years of cultural and commercial relations, which have entered a new phase in recent decades, marked by growing partnerships across multiple sectors. He said the two countries could serve as a model for sustainable cooperation based on mutual respect in today’s increasingly interdependent world.

He also highlighted recent visits of Iranian private sector delegations to various Chinese provinces and exhibitions, emphasizing the need to identify investment opportunities and facilitate financial exchanges. The Chamber, with over 140 years of history, is prepared to host expert meetings, present economic opportunities, support joint ventures, and activate professional networks between Iranian and Chinese businesses, he said.

China’s Ambassador to Iran Cong Peiwu, thanked Iranian participants and the Tehran Chamber for organizing the event. He expressed hope that the forum would help strengthen bilateral trade and economic cooperation.

Referencing the recent meeting between the two presidents at the BRICS summit in Russia, Cong said China is fully committed to enhancing cooperation across all sectors in ways that benefit both peoples.

Also speaking at the forum, Ruhollah Nejabat, chair of the Iran-China Parliamentary Friendship Group, said Iran’s non-oil exports to China surpassed $14.8 billion last year, making China the largest destination for Iranian goods and accounting for about one-quarter of Iran’s total non-oil exports. Imports from China reached approximately $19.3 billion, or 27 percent of Iran’s total imports, making China Iran’s second-largest import partner after the United Arab Emirates.

These figures, he said, demonstrate the resilience and strategic importance of Iran-China trade, even amid global economic slowdown, with both countries supplying a significant portion of each other’s needs.

Nejabat noted that Iran’s Seventh National Development Plan emphasizes industrial modernization and attracting foreign capital and technology. He said Iran aims to upgrade its industries—from automotive and textiles to pharmaceuticals and medical equipment—and that this will be achieved more quickly with partners like China, now a global industrial superpower.

He added that technology transfer and joint investment are two strategic priorities for Iran. Chinese firms, he said, could take advantage of Iran’s market size and skilled labor to establish production lines and access broader regional markets.

Conversely, Iran could supply intermediary goods and industrial components needed by Chinese industries. Nejabat said Iran will offer special incentives for foreign industrial investment and provide a secure legal environment for Chinese companies. Infrastructure development—including rail networks, highways, and ports—is also a priority, and many of these projects will require Chinese expertise and participation.

He also pointed to Iran’s largely untapped mining sector, including vast reserves of iron, copper, aluminum, and rare earth elements, as an area ripe for development and export growth.

Speaking at the forum, Mohammad Ali Dehghan Dehnavi, head of Iran’s Trade Promotion Organization (TPO), outlined four key strategies for expanding trade with China. The first is technology transfer. He said Chinese companies have made major investments in research and development, much of which has not yet been fully commercialized. Iran, as a long-time partner, seeks deeper collaboration in these cutting-edge sectors.

The second strategy, he said, is increasing trade in high value-added goods. Currently, much of the bilateral trade consists of raw or semi-processed materials. The average value of Iran’s exports stands at less than $400 per ton. “We want to change that,” he said, calling on Chinese importers to prioritize Iranian products with higher added value. He welcomed the Chinese ambassador’s praise for the competitiveness of Iranian nanotechnology and biotechnology products.

The third strategy is joint production through co-investment. Dehnavi said Iran offers a secure investment climate, with legal guarantees allowing foreign investors to repatriate both capital and profits. “There are many documented cases of investors successfully exiting after profitable ventures,” he said.

Iran offers highly competitive costs, a wide range of investment opportunities, and strong security for foreign capital, he added, expressing hope for increased joint ventures with Chinese firms.

The fourth strategy is mutual market access. Dehnavi said Iran produces many goods that are well-suited for the Chinese market and that joint production could also help both countries expand into third-country markets. “This kind of cooperation can make our trade ties deeper and more sustainable,” he said.

Fereydoun Vardinejad, secretary general of the Tehran Chamber of Commerce, said China had stood by Iran during both stable and turbulent times, and that the two peoples share a strong emotional bond.

However, he warned that a lack of information exchange and mutual understanding of economic capacities had led to a wide gap between political relations and economic realities. “Our ties are excellent in potential but need significant work in practice,” he said.

Vardinejad called for a “win-win partnership” and proposed several actions: holding specialized business meetings, promoting bilateral trade missions, introducing market opportunities, ensuring trade balance, and supporting private-sector cooperation in areas like creative industries, digital economy, nanotechnology, and biotechnology.

“These steps,” he said, “can build deeper and mutually beneficial ties between Iran and China.”

Meanwhile, Hossein Eyvazlou, a member of the executive board of Iran’s National Development Fund (NDF), has announced plans for collaboration with China in the field of foreign investment in Iran.

Speaking at a press conference on January 4, Eyvazlou highlighted the importance of attracting foreign capital to boost Iran's economic projects, emphasizing the role of strategic partnerships with countries like China.

Details on the scope and nature of the cooperation were not disclosed, but it is expected to focus on key sectors that align with Iran’s long-term development goals.

On December 20, 2024, a Shanghai Cooperation Organization (SCO) representative announced that the Chinese investors are prepared to fund the construction of combined-cycle power plants in Iran’s energy-rich Khuzestan province to help address the country’s energy imbalance and boost regional economic development.

Zhao Bin He, the Executive Director of SCO’s Iran Office, made the remarks during a meeting with Khuzestan’s governor and local religious leaders. “We are here to pay our respects to provincial authorities and outline China’s plans for strengthening economic and trade ties, with a particular focus on Khuzestan,” Zhao said.

He highlighted the historical and enduring relationship between Iran and China, describing it as built on mutual respect, economic cooperation, and cultural exchange.

“Khuzestan’s strategic position in southwest Iran and its vast economic potential make it a key player in enhancing Iran-China relations,” Zhao added. “With access to the Persian Gulf and proximity to strong regional economies, Khuzestan offers exceptional opportunities for port infrastructure development and maritime transport.”

Zhao reiterated China’s readiness to actively participate in developing Khuzestan’s infrastructure, expanding port capacity, and exploring joint projects in energy, industry, and agriculture.

On May 6, during a meeting between the members of Chinese council for development of trade in Khorgos and Urumqi free trade zone and a delegation from the Islamic Republic of Iran Customs Administration, the two sides explored the ways to facilitate trade and expand customs cooperation.

Participants in the meeting explained the commercial capabilities of this zone, with an emphasis on e-commerce and mail-order trade with Iranian customs.

China approved setting up the China (Xinjiang) Pilot Free Trade Zone in a State Council circular issued on Oct 31, 2023.

According to the circular, the FTZ, composed of parts of Urumqi, Kashgar, and Khorgos, covers an area of 179.66 square kilometers and focus on emerging industries, labor-intensive industries, and modern service industry.

The FTZ also builds comprehensive logistics hubs between Asia and Europe, strengthen cooperation with neighboring countries, promote communication in culture and education, and enhance international medical service capacities.

On May 8, Iran’s Research Institute of Petroleum Industry (RIPI) and a major Chinese firm called Keyon have signed a memorandum of understanding to collaborate on coal-to-natural gas conversion technologies, officials said on Thursday.

The agreement was signed on the opening day of the 29th Iran International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show 2025) in Tehran. It aims to support Iran’s efforts to address its domestic gas imbalance by utilizing alternative fuels such as coal, according to a statement from RIPI.

RIPI head Azim Kalantari-Asl and a representative from the Chinese company, signed the deal, which focuses on technological cooperation in synthetic gas production from coal.

Hamid Ganji, head of RIPI’s Gas Research Center, said Iran’s substantial coal reserves, combined with China's expertise in synthetic gas and hydrogen production from coal, provide an opportunity for joint innovation. The primary goal of the partnership, he said, is to localize the technical know-how and enable industrial-scale implementation in Iran.

"The current gas supply-demand imbalance makes it essential to look at domestic resources like coal as a viable alternative for natural gas production," Ganji added.

The four-day exhibition, which opened on May 8, is being held at Tehran’s permanent international fairgrounds.

On May 14, the head of Iran’s Trade Promotion Organization (TPO) said his country aims to boost exports of higher value-added goods to China and facilitate the sale of Iranian products through a Chinese online platform.

According to a statement from the TPO, Mohammad-Ali Dehghan Dehnavi, speaking at a meeting on the challenges facing Iran-China economic relations, described China as Iran’s top trading partner and a crucial commercial partner for many countries. “Trade with China is strategic and essential for Iran. The opportunities and potential in this area are significant, provided we concentrate more on it,” he said.

Dehnavi, who also serves as deputy industry, mining and trade minister, noted that the commercial opportunities in China surpass Iran’s total trade with many other countries combined. “There is no doubt that major achievements are possible in China,” he said.

Outlining the TPO’s foreign trade goals, Dehnavi stressed the need to shift from exporting raw materials to higher-value products. “A significant portion of our exports to China consists of raw materials. Even without marketing efforts, buyers are coming to Iran for these goods,” he said.

“But the real impact will come when we export goods that are further down the production chain. While raw material exports do generate foreign currency and attract investment, the goal should be to produce and export more industrial goods,” he added.

Acknowledging that exporting to China, the world’s manufacturing powerhouse, may appear challenging, Dehnavi argued that with the right strategies, it is achievable. “Through joint investment, integration into the global value chain—much of which run

On May 30, Iran and China signed a tripartite memorandum of understanding to boost cooperation in water resource management, agriculture, and environmental protection, according to Iran’s Planning and Budget Organization (PBO).

The agreement, signed during an official ceremony hosted by the Chinese Academy of Sciences (CAS), brings together Iran’s Planning and Budget Organization, the Faculty of Agriculture and Natural Resources at the University of Tehran, and the Northwest Institute of Eco-Environment and Resources, a research arm of CAS.

The MOU aims to facilitate joint projects, exchange of expertise, deployment of advanced technologies, and pilot programs in Iran, with a focus on practical and scientific collaboration.

Speaking at the signing event, Mohammad Ebrahimnia, Director of Water, Agriculture, and Environment Affairs at Iran’s Plan and Budget Organization, emphasized the importance of building on previous cooperation and called for the swift launch of pilot initiatives and a joint action plan to accelerate implementation.

Iran and China officially signed the document for 25-year comprehensive cooperation in March 2021.

The document was signed between Iran’s former Foreign Minister Mohammad Javad Zarif and Chinese Foreign Minister Wang Yi at the Iranian Foreign Ministry.

Back in December 2022, Iran and China finalized 16 MOUs under the framework of the two countries’ strategic 25-year agreement.

The MOUs were signed in an Iran-China comprehensive cooperation program summit which was held in Tehran on December 13 in the presence of Iran’s former First Vice President Mohammad Mokhber and China’s Vice Premier Hu Chunhua.

The summit was focused on four areas explored by four committees between the two countries with the aim of paving the way for the implementation of the 25-year agreement.

Iran and China also signed 20 memoranda of understanding in the presence of the presidents of the two countries in Beijing in mid-February, 2023.

MA