Denmark recognized the People's Republic of China on January 9, 1950, and established diplomatic relations with the People's Republic of China on May 11 the same year. It was the second Western country to establish diplomatic relations with China. The two countries established a comprehensive strategic partnership in 2008.

In recent years, the relationship between the two countries develops stably. In June 2012, Chinese President Hu Jintao paid a state visit to Denmark, marking the first visit by Chinese President to Denmark since the establishment of diplomatic relations between the two countries. In April 2014, Queen Margrethe II of Denmark visited China for a state visit and, as the first serving foreign head of state, visited the Memorial Hall for the Victims of the Nanjing Massacre by the invading Japanese army. Danish Prime Minister, Helle Thorning-Schmidt, and Lars Løkke Rasmussen visited China in 2014 and 2017 respectively.

China is Denmark's largest trading partner in Asia and the second largest overseas investor. About 500 Danish companies operate in China. Chinese companies in fields such as shipping, biomedicine, wind energy carry out business in Denmark. In 2024, the bilateral trade volume reached US$15.46 billion , marking a year-on-year increase of 12.8%.

China and Denmark maintain good cultural cooperation. The two countries have frequent visits to each other and have held numerous cultural activities such as film weeks and art exhibitions. Many universities on both sides have established inter-school exchange cooperations. The two governments have established a joint committee mechanism for science and technology cooperation. The Chinese Academy of Sciences and University of the Chinese Academy of Sciences have jointly established the Sino-Danish Centre for Education and Research with the Danish Ministry of Higher Education and Science, and the Danish University Alliance. 

By the end of 2024, 18 pairs of provinces/cities have established friendly relations between China and Denmark.