
The Finn twice posted the fastest time, beating world champion Fernando Alonso in a McLaren-Mercedes into second place. Raikkonen's team-mate Felipe Massa posted the third fastest time in both sessions.
Lewis Hamilton, who currently leads the drivers' standings, but could still face disciplinary action over an incident during last Sunday's Japanese Grand Prix, had the fourth-fastest time.
International Automobile Federation (FIA) officials are investigating a fan's video that indicates erratic driving from Hamilton behind the safety car in last weekend's rainy Japanese Grand Prix caused a collision between two cars immediately behind him.
Mark Webber's Red Bull and Sebastian Vettel's Toro Rosso, who were running second and third, collided, putting both out of the race.
On Friday Raikkonen posted a time of one minute 36.630 seconds for the 5.400-kilometre lap on the Shanghai track in the second session, beating Alonso by just 0.006 seconds.
Massa, who twice spun off the track during the sessions, was a further 0.017 seconds behind.
Hamilton, meanwhile, was much further off the mark posting a time of 1:36.876 minutes.
BMW's Nick Heidfeld struggled throughout the day with his engine, but as he was not using his race engine, he will not be penalized by ten places on the grid for Sunday's race.
Hamilton currently leads the standings on 107 points, while Alonso has 95. Raikkonen is third on 90, while Massa is on 80. Victory in the penultimate race on Sunday would give rookie Hamilton the world championship.
He would become the youngest driver in Formula One history and the first rookie to win the championship.
DPA