The People's Republic of China and the Republic of Iceland enjoyed fruitful development of their friendship in 2010.

The two countries maintained a sound momentum in political relations and frequent exchange of high-level visits. From 8 to 13 June, He Guoqiang, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Secretary of the Central Commission for Discipline Inspection, visited Iceland and had separate meetings or talks with President Olafur Ragnar Grimsson, Prime Minister Johanna Sigurdardottir and Foreign Minister Ossur Skarphedinsson. From 13 to 15 September, Liu Qi, Member of the Political Bureau of the CPC Central Committee and Secretary of the CPC Municipal Committee of Beijing, visited Iceland and met with President Grimsson and Foreign Minister Skarphedinsson. From 4 to 15 September, President Grimsson came to China for the National Pavilion Day of Iceland at the Shanghai World Expo, the United Nations Conference on Trade and Development World Investment Forum 2010 and the Fourth Summer Davos Forum. During the visit, he met respectively with Premier Wen Jiabao and Vice President Xi Jinping. From 10 to 19 July, Foreign Minister Skarphedinsson paid an official visit to China. He met with Vice President Xi Jinping and had talks with Foreign Minister Yang Jiechi.

After Yushu of Qinghai Province was hit by an earthquake, President Grimsson and Speaker of the Parliament Asta R. Johannesdottir sent messages of condolences to President Hu Jintao and NPC Chairman Wu Bangguo. President Grimsson sent a message of condolences to Presient Hu Jintao after the massive disaster of mudslide in Zhouqu, Gansu Province.

Bilateral cooperation on economy, trade, finance and investment were smooth on the whole. Vice Minister of Commerce Jiang Zengwei, Governor of People's Bank of China Zhou Xiaochuan and President of the Industrial and Commercial Bank of China Yang Kaisheng visited Iceland successively. In June, the central banks of the two countries signed the Bilateral Currency Swap Agreement between the People's Bank of China and the Central Bank of Iceland with a total volume of RMB3.5 billion. In July, China and Iceland held the 7th meeting of the Joint Committee on Economy and Trade.

Cultural and people-to-people exchanges and cooperation on science, technology and tourism kept growing. In June, Minister of Industry, Energy and Tourism Katrin Juliusdottir visited China. In August, the China Earthquake Administration and the Iceland Meteorological Office signed the Memorandum of Understanding on Bilateral Cooperation between the Earthquake Administration of People's Republic of China and the Meteorological Office of Republic of Iceland in the Field of Earthquake Studies. Despite the financial crisis, Iceland took an active part in the Shanghai World Expo. Its national pavilion shaped as an Ice Cube attracted 2.3 million visitors.

On 11 January, President Hu Jintao accepted the credentials of new Ambassador of Iceland to China Kristin A. Arnadottir.