On September 24, 1956, China established ministerial-level diplomatic relations with the Mutawakkilite Kingdom of Yemen. On February 13, 1963, diplomatic relations were upgraded to the ambassadorial level (by then the Yemen Arab Republic, known as North Yemen). On January 31, 1968, China established diplomatic relations with the People's Democratic Republic of Yemen (South Yemen) at the ambassadorial level. After the unification of Yemen in 1990, the date of the establishment of China-Yemen diplomatic relations was designated as September 24, 1956.

The two countries have maintained sound exchanges. In December 2022, President Xi Jinping met with Chairman of the Presidential Leadership Council of Yemen Rashad Mohammed Al-Alimi on the sidelines of the first China-Arab States Summit. In May 2024, Yemeni Minister of Foreign Affairs and Expatriates Dr. Shaya Mohsin Zindani came to China for the 10th Ministerial Conference of the China-Arab States Cooperation Forum.

In 2024, the trade volume between China and Yemen reached USD 2,492 million, of which China's exports amounted to USD 2,472 million and imports totaled USD 20 million. China mainly exports textiles, and mechanical and electrical products, among others.

The Chinese Embassy in Yemen has been operating in Riyadh, the capital of Saudi Arabia, since December 2015. The Consulate General in Aden has been temporarily closed.