The People's Republic of China (PRC) was one of the first countries to support the Palestine National Liberation Movement (Fatah) and recognized the State of Palestine. In May 1965, the Palestine Liberation Organization (PLO) established an office in Beijing which enjoys diplomatic privileges and immunity. On November 20, 1988, the PRC announced its recognition of the State of Palestine, and diplomatic relations were officially established between the two countries. On December 31 of the same year, the PLO's office in Beijing was upgraded to the Embassy of the State of Palestine in China, and its head was appointed as the Ambassador of the State of Palestine to China. Since July 5, 1990, the Chinese Ambassador to Tunisia has also concurrently served as the Ambassador to the State of Palestine. In December 1995, China established an office to the Palestinian National Authority in Gaza, which was relocated to Ramallah in May 2004. Since June 2008, the Chinese Ambassador to Tunisia no longer concurrently served as the Ambassador to the State of Palestine. The Director of the Office to Palestine, with the rank of Ambassador, took full responsibility for all matters concerning relations with Palestine. In October 2013, the name of China's diplomatic mission to Palestine was changed to the Office of the People's Republic of China to the State of Palestine. In June 2023, China and Palestine announced the establishment of a strategic partnership.

In recent years, China-Palestine friendship and cooperation have consistently maintained steady and sound development.

Important visits from the Chinese side: Vice President Wang Qishan (October 2018), Chairman of the Standing Committee of the National People's Congress Zhang Dejiang (September 2016), Vice Premier of the State Council Liu Yandong (March 2016), Vice Premier of the State Council Wang Yang (November 2015), Vice Chairperson of the Standing Committee of the National People's Congress Qiangba Puncog (July 2017), Minister of Foreign Affairs Wang Yi (December 2013), among others.

Important visits from the Palestinian side: Palestinian President Mahmoud Abbas (May 2005, late April and early May 2010, May 2013, July 2017, and June 2023), Minister of Foreign Affairs Riyad al-Maliki (May 2010, May 2014, June 2014, February 2015, May 2016, April 2017, and July 2018), Special Envoy of the President and a Member of the PLO Executive Committee Saleh Raafat (October 2014), Secretary-General of the Palestinian Presidency Tayeb Abdelrahim (May 2017), Minister of National Economy Abeer Odeh (May 2017 and July 2018), Special Envoy of the President and Vice Chairman of Fatah Mahmoud al-Aloul (May 2019), among others.

In July 2020, President Xi Jinping had a phone call with Palestinian President Mahmoud Abbas at the latter's request. In December 2022, President Xi Jinping met with Palestinian President Mahmoud Abbas in Riyadh, the capital of Saudi Arabia. In July 2024, representatives of 14 Palestinian factions held internal reconciliation talks in Beijing, and representatives of each faction signed the Beijing Declaration on Ending Division and Strengthening Palestinian National Unity.

In 2024, the bilateral trade volume between China and Palestine reached USD 155 million, of which China's exports amounted to USD 154.5 million and imports totaled USD 0.5 million.