On May 18, 2005, Premier Wen Jiabao of the State Council met with President Olafur Ragnar Grimsson of Iceland in the Great Hall of the People.

Wen said that China and Iceland are two countries located afar with different social systems, historical backgrounds and cultural traditions,but these factors cannot impede the development of bilateral relations. The friendly cooperation between China and Iceland since the establishment of diplomatic ties over 30 years ago has fully proved that countries with different social systems and economic development levels and scales can live in peace and benefit from each other.

Wen pointed out that the economic and trade cooperation between China and Iceland enjoy tremendous potentials. The acknowledgement of the market economy status of China by the Icelandic side and the launching of the feasibility studies on bilateral free trade area will certainly raise the level of economic and trade cooperation between the two countries. He hoped that both sides could make full use of the mechanism of mixed committee on trade and economic cooperation and continue to explore new ideas and ways to expand the trade and economic cooperation so as to push for greater development of economic and trade relations between the two countries.

Grimsson said that his visit to China achieved positive results. Iceland and China enjoy profound friendship, sound political relations and ever-strengthening economic and trade cooperation. Iceland-China friendly relations fully demonstrate that countries, big or small, near or far, with long or short histories, can carry out constructive cooperation. The Icelandic side has the confidence to push for greater development of the friendly and cooperative relations between the two countries."