| 2010 Enex has signed an agreement for geothermal energy in China Although the volume of Icelandic exports to China is growing rapidly, it is still much less than the volume of exports from the Netherlands. Several currency exchanges between Iceland and the PRC have fuelled trade between the two countries.  On the same day that it signed its trade agreement with China, Icelandic President Alafur Ragnar Gr`msson founded the Polar Circle, a forum that facilitates dialogue on Arctic governance issues. From the outset, China was invited to participate, as were all other Observer countries of the Arctic Council.  In 2013, Iceland signed a free trade agreement with China. It was China`s first free trade agreement with a European country.   Together, the two free trade agreements must guide the future development of China`s trade relations with Europe. Earlier this year, China pledged to review plans for a free trade agreement between China and the EU. The EU is China`s largest trading partner, with bilateral trade of more than $1.37 billion per day. The free trade agreement between the Icelandic government and the government of the People`s Republic of China is of particular interest to China. Due to its geothermal industry, Iceland is largely able to meet its own energy needs in a climate-neutral manner. Icelandic leader Orka Energy collaborated with Sinopec to develop the Shaanxi Green Energy Geothermal Development (SGE) joint venture, which is 51% owned by Sinopec.
Star Petroleum Company, a subsidiary of Sinopec, has signed an agreement with another Icelandic company, Geysir Green Energy, and in 2018, Iceland`s Arctic Green Energy Corporation and China Sinopec (SNPMF) have secured a $250 million loan from the Asian Development Bank to assist in the development of geothermal resources in China.  The Chinese and Icelandic governments issued a joint statement outlining the spirit of economic cooperation that underpins the agreement and its facilitation of trade and investment. These ideals aim to eliminate tariffs on most goods traded between the two countries, including Icelandic exports of seafood, electric scales and ferrosilicium. A small class of exports to China will remove its import duties for a transitional period of 5 or 10 years. To benefit from free trade under the free trade agreement, goods must follow at least one of the following rules: combined with Iceland`s accession to the European common market, its ideal location between North America and Europe, as well as an advanced trading environment and advanced infrastructure, this free trade agreement opens up investors who wish to export to the world`s fastest growing market. On 15 April 2013, Iceland`s Minister of Foreign Affairs and Foreign Trade, Mr. Skarphéinsson, and Mr. Gao Hucheng, Minister of Trade Policy of the People`s Republic of China, signed a free trade agreement between Iceland and China in the presence of the Icelandic Prime Minister and the Chinese Prime Minister.
The Free Trade Agreement between China Island is the first free trade agreement signed between China and a European country. Relations between China and Iceland are external relations between China and Iceland. Diplomatic relations between them were established on 8 December 1971. China has an embassy in Reykjavik. Iceland has an embassy in Beijing and an honorary consulate in Hong Kong.  Iceland imported World Integrated Trade Solution from China between 2007 and 2018 in a thousand dollars.