Icelandic exports to China started at rather low level but has been increasing steadily over the decades.  In line with Icelandic industrial structure, seafood has been the most important exports to China, in which processing trade plays a bigger role.

Due to limited export variety, the steady growth momentum in Icelandic exports to China is accompanied by occasional. Fluctuation.  The total export can be greatly affected by some single items, e.g. the massive leap of Icelandic exports to China in 2008 and 2009 because of aircraft sales, and the big drop in 2013 and 2014 resulted from huge decrease of the catch of two fishes from the sea.

The basis for increased Icelandic exports to China remain strong.  Products sold into the local market are increasing over the years, including lumpfish, sea cucumber, Greenland halibut and food processing machinery etc. New export items are also finding their way into the Chinese market, including fishing and fish processing equipment, software, medical and pharmaceutical products.

It is expected that Icelandic exports shall continue to grow with more variety. The Iceland-China Free Trade Agreement came into effect on 1 July 2014.  This is the first FTA China has had with a European country.  There has been huge interest among both Icelandic and Chinese companies in selling more Icelandic products into China, in order to tap into the various benefits of the free trade agreement.