China–Iceland relations formally began on 8 December 1971, when Iceland recognised Beijing. Prior to the signing of a Free Trade Agreement between the two countries in 2013, diplomatic activities between them were relatively few in number. However, since this event, political cooperation has increased. There is growing number of economic and cultural ties, as their political partnership has expanded. In addition, Iceland is helping to develop China's renewable energy sector. Specifically, in the field of geothermal power.