A surge of Icelandic investment in China took place since 2004 along with the increasing internationalization of Icelandic companies in early 2000s. Some 20 Icelandic companies have been operating in China, mainly in big and secondary cities along the east coast of China (including Hong Kong). Their business scopes include seafood processing, equipment & machinery, maritime logistics, food processing, pharmaceutical and health care products, international trading, geothermal development, textile, shoes, computer games etc. Among them, SINOPEC Green Energy, the joint venture company specialized in geothermal development, has become a leading company in geothermal development in China.
In order to promote Icelandic business growth in China, the Icelandic Embassy initiated in 2006 the informal Icelandic business association for Icelandic companies in China - Icelandic Business Forum. At present, there are 16 corporate members and 3 individual members in IBF.
China’s investment in Iceland has also started recently. Huawei set up an Icelandic office as subsidiary of its Swedish company in 2005. China Blue Star Corporation became the new owner of Icelandic Alloy, a subsidiary of ELKEM which was acquired by China Blue Star in 2011. China National Offshore Oil Corporation set up a joint venture company with Eykon Energy in Iceland for joint petroleum exploration in Icelandic water in 2013. The latest Chinese investment was from Jeely Group, which invested USD 45 million into the Icelandic Carbon Recycling International in July 2017 for the development of new energy vehicles.