China and Iceland forge close ties

This may come as a surprise to most, but Iceland and China have long had close ties.

With diplomatic relations established in 1971, Iceland is the first West European nation to acknowledge China's market economy status, and the first European country to hold free trade talks with China.

In April 2012, the two countries announced a joint plan to develop the resource-rich Arctic. The Icelandic government says the cooperation is a win-win situation for the two countries.

In 2012, Chinese real estate mogul Huang Nubo, chairman of Zhongkun Investment Group, spent over 6 million US dollars leasing 300 square kilometers of land in the Nordic country for 99 years. The project comprises a hotel, race course and themed resort in the northeast of Iceland.

Bilateral trade relations are also moving forward. In January, China and Iceland held a sixth round of Free Trade Area Talks in Beijing, and an agreement is expected this year. Some experts say a bilateral Free Trade Agreement with Iceland will help bolster China's efforts for reach such a deal with the European Union.