The victory in the southern Chinese city of Shenzhen gives Iraq six points in Group A, three points behind leader Jordan. China has three points.
Led by veteran captain Li Weifeng, China came out attacking in the first half, with two excellent chances in the 32nd minute. Iraq seized its chance on the counterattack, with Mahmoud passing to Mustafa Kareem before sprinting into the box to make the sliding shot.
China's chances improved with the sending off of Basem Abbas for a second yellow card in the 64th minute, but it failed to convert its opportunities.