China has said that it will see to it that any Chinese firms working on military related projects in Iraq stop doing so. While China has always been cozy with Iraq, China does a lot more trade with America. Thus Chinese firms are allowed to hustle business in Iraq, and given the way China is run, there is not a lot of government oversight. Chances are, neither the  Chinese firms involved or the Chinese government know exactly what the Iraqis will use the new communications systems for.  This is an old Iraqi practice, keeping contractors in the dark.