All-around exchanges and co-operations have been developing very fast, leading to many important agreements between the two countries, thus creating solid legal ground for enhanced cooperation:
 
Bilateral Trade Agreement between the Government of China and the Government of Iceland (1987)
Agreement between the Government of China and the Government of Iceland for Protection of Investments (1994)  
Cultural Agreement between Iceland and China (1994)
Agreement between the Government of China and the Government of Iceland for Reciprocal Avoidance of Double Taxation (1996)
Agreement between the Government of China and the Government of Iceland Relating on Civil Air Transport (2003)
Memorandum of Understanding on Visa and Related Issues Concerning Tourist Groups from China (ADS) (2004)
Memorandum of Understanding on Strengthening the Economic and Trade Cooperation between Iceland and China (2005)
Memorandum of Understanding on Environmental Cooperation between Environmental Protection Bureau of China and Ministry for Environment of Iceland (2005)
MOU on Earthquake Research Cooperation between Earthquake Administration of China and Ministry for Environment of Iceland(2005)
Protocol on Starting China-Iceland Free Trade Agreement Negotiation between the Ministry of Commerce of China and the Ministry for Foreign Affairs and External Trade of Iceland(2006)
Cultural Exchange Programme for the Period 2007-2010 between the government of China and the government of Iceland (2006)

Bilateral cooperation reached a new height in 2007.  As the first European country recognizing China’s market economy status, Iceland started the Free Trade Agreement negotiation with China.  The Heads of State of the two countries attached great importance to this historical cooperation, both expressing their wish for an earlier conclusion of this bilateral agreement.

Iceland becomes China´s first FTA partner in Europe with the signing of FTA agreement on April 16, 2013, on occasion of the official visit of Icelandic Prime Minister Jóhanna Sigurðardóttir.  This agreement of 6-year effort comes into force on July 1, 2014, leading to greater bilateral trade and closer economic cooperation between the two countries.