I. Political relations

China and Iceland established diplomatic relations on 8th December 1971. In May 1972, China set up its Embassy in Iceland and assigned the first resident ambassador to Iceland. After 1983, Chinese Ambassador in Denmark was concurrently accredited also to Iceland. In January 1995, Iceland set up its embassy in Beijing and assigned its first Resident Ambassador to China. By then, the post of Icelandic ambassador to China was held concurrently by an ambassador-at-large or an ambassador in a third country. In December 1995, China resumed the practice of sending resident ambassadors to Iceland.

After the establishment of diplomatic relations, China rendered support to Iceland in its endeavor for the expansion of fishing area while Iceland backed China in restoring its legitimate seat in the UN. The bilateral exchanges increased gradually. The main Icelandic leaders who visited China since 1971 are: Mr. Petur Thorsteinsson, Secretary General of the Ministry of Foreign Affairs (1975); Mr. Agustsson, Chairman of the Foreign Affairs Committee of the Parliament (1979); Foreign Minister Olafur Johannesson (1982); Mr. Ingvi Ingvarsson, Secretary General of the Ministry of Foreign Affairs (1985); Prime Minister Steingrimur Hermannsson (1986); Foreign Minister Jon Baldvin Hannibalsson (1994); Prime Minister David Oddsson (1994); Mr. Salome Thorkesdottir, Speaker of the Parliament (1995) and Islandic President Mrs. Vigdis Finnbogadottir (1995). She was the first Icelandic President who ever visited China and during her visit she also attended the UN's Fourth World Conference on Women in Beijing.

In 1979, Chinese Vice-Premier Geng Biao visited Iceland as the first Chinese Government leader to visit Iceland. In 1995, Vice-Premier and Foreign Minister Qian Qichen and Vice-Premier Li Lanqing visited Iceland. Mr. Tian Jiyun, Vice-Chairman of the Standing Committee of NPC in 1996 and Mr. Huang Ju Member of the Standing Committee of CCP in 1999 paid visits to Iceland. In 2000, Chairman Li Peng of the Standing Committee of NPC, Mr. Ding Guangen, Member of the Standing Committee and Minister of Publicity of CCP, State Councilor Wu yi and the Chief Procurator Han Shubin visited Iceland successively.

In 2000, Li Peng, Chairman of the National People's Congress, Wu Yi, State Councilor, Han Xubin, Procurator-General, and Ding Guan'gen, Member of the Political Bureau of the CPC visited Iceland at invitation. In 2001, China and Iceland jointly celebrated the 30th anniversary of the establishment of diplomatic relations between the two countries, and Halldor Asgrimsson, Minister of Foreign Affairs and Trade of Iceland, visited China. In the first half of 2002, the Minister of Environment and the Minister of Finance of Iceland visited China separately and Minister Shi Guangsheng visited Iceland. In June, President Jiang Zemin paid a state visit to Iceland.