From June 22-23 2007, the second round of the Sino-Iceland Free Trade Agreement (FTA) talks was held in Reykjavik, capital of Iceland.

Chinese delegation, consisting of representatives from Ministry of Commerce, National Development and Reform Commission, Ministry of Finance, Ministry of Agriculture, China Customs and General Administration of Quality Supervision, Inspection and Quarantine, held in-depth negotiations with delegation from Iceland on commodity trade, service trade, investment, economic cooperation and other issues, which have made substantive progress.

Iceland was the first European developed country that held FTA talks with China. The building of Sino-Iceland free trade zone will advance a comprehensive and reciprocal cooperation between the two countries and will boost the Sino-Iceland bilateral trade and economic relations to develop in a healthy and stable way.

The two countries agreed to hold the third round of FTA talks in October 2007 in Beijing.