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 surge in exports to China is seen as a positive sign for Iran's economy, which has been grappling with the effects of international 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 revenue streams and reduce reliance on oil exports. China has been a major trading partner for Iran, with the two countries strengthening economic ties in recent years. The Chinese market has provided a significant outlet for Iranian goods, particularly in the energy, mining, and agricultural sectors. While the overall trade figures for the first five months of 2025 show a decline, the increase in exports to China in May suggests that Iran's efforts to boost non-oil exports and strengthen economic ties with key partners like China are bearing fruit. Analysts attribute the rise in exports to China to several factors, including Iran's competitive pricing, the quality of its products, and the growing demand for Iranian goods in the Chinese market. However, they also caution that sustained growth in exports will depend on Iran's ability to address structural challenges, such as infrastructure bottlenecks and regulatory hurdles.