Iraq / Iran have a need for military and technical equipment. China has a need for hard currency. China's strategic interest is bogging down the American foreign policy and military in a conflict with Arab states to distract it from addressing a Chinese threat. That threat is their development of a nuclear offensive capability, a blue water navy, and their expansionist plans in the Spratly Islands, Taiwan, and the waters off Japan.
I can't speak to specific technology transfers, but you should not be surprised if one surfaces.
China is encouraging the Islamic fundamentalists to distract us while they re-take Taiwan? I hadn't thought of that. I was thinking the instant we go to war with Iraq they'll have a free hand to do whatever they want in the far east.