The Land of Fire and Ice

Iceland, a remote island located in the Northern Atlantic Ocean, has a population of 300,000. With an area of about 40,000 square miles, Iceland is comparable to the size of England. Due to its exports of seafood and refined aluminum, and the fact that the small island has very low energy costs, Iceland is one of the most productive countries in the world. In fact, Iceland produces almost all of its energy through geothermal and hydropower, making it largely independent of energy imports.

Iceland is not a member of the European Union, despite having signed agreements which give it the same rights and obligations as a member state (with a notable exemption from the EU's Common fisheries policy) and being out of the bloc when it comes to concluding trade agreements.

After Iceland was hit by the 2008 financial crisis, the government vowed to diversify the local economy by looking beyond the European continent when it comes to trade. After signing the agreement, Chinese Prime Minister Li Keqiang said: "It also signals the deepening of our relationship, especially our economic relationship which has been lifted to a new height."