According to the latest customs data from China, Iranian exports to the East Asian economic powerhouse reached $266 million in May 2025, reflecting a 9% year-on-year increase. This positive development comes despite an overall decline in bilateral trade between Iran and China during the first five months of the current year. The rise in exports to China is seen as a positive sign for Iran's struggling economy, which has been grappling with the impacts of harsh US sanctions and the COVID-19 pandemic. Iran's non-oil exports have been a key focus for the government as it seeks to diversify its export basket and reduce reliance on oil revenues. While the data does not provide a breakdown of the specific goods exported to China, Iran's main non-oil exports to the country typically include petrochemicals, minerals, and agricultural products. China has been a major trading partner for Iran, with bilateral trade reaching over $14 billion in 2021 before declining in recent years due to various economic and geopolitical factors. The Iranian government has been actively seeking to strengthen economic ties with China, which has emerged as a key ally in the face of US sanctions. In January 2023, the two countries signed a 25-year strategic partnership agreement aimed at enhancing cooperation across various sectors, including trade, energy, and infrastructure development. Despite the positive news on exports to China, Iran's overall trade balance remains in deficit, with imports outpacing exports. The government has implemented measures to support domestic production and reduce reliance on imports, but challenges persist due to the country's economic isolation and limited access to international markets.