As an emerging superpower with 1.3bn people, it may not be immediately obvious why China would want closer relations with Iceland, a crisis-hit country of 320,000 people on the other side of the world.
Yet, Beijing yesterday signalled support for Iceland's economic recovery with a currency swap deal, worth more than $500m (€415m, ￡343m), that will increase the country's access to foreign currency and promote bilateral trade ties.
The agreement fitted a pattern of Chinese engagement with Iceland that has stoked speculation that Beijing has strategic interest in the north Atlantic island nation as the Arctic region becomes more important to global trade and energy.
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