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Arab countries as a whole have become China's biggest supplier of crude oil and its seventh-biggest trading partner. But China pursues a balanced and improved trade structure with them by helping more of their non-oil products enter the Chinese market.

"Secondly, investment in infrastructure as Iraqis are looking forward for such investment as to be further sources of funding other than oil. And I believe China has great abilities to invest in Iraq which has oil that can be a guarantee to any investment in Iraq," Abadi said.

On international cooperation, China will establish 10 low-carbon areas, as well as 100 mitigation and adaptation projects through initiatives with other developed countries.

Furey is visiting at the invitation of Zhang from Jan. 3 to Jan. 9. This is his first time in China.

Beijing has issued a red alert, the most serious level in the four-tier color-coded pollution warning system, for the smog, limiting vehicles on roads and banning fireworks and outdoor barbecue. Tianjin and some other cities issued orange alert.