| Summary: | A Free Trade agreement (FTA) between China and Iceland was finalized on the 15th of April 2013. The paper discusses the negotiation process and the actual business activities in the respective countries, focusing on the FTA’s socio- economic significance. Our study is for the most part an empirical one, divided into two sections; an overview of the free trade negotiations, procedures and the topics covered along the issues and the actual activities on the firm level. From the outset in 2004–2005 and up until the negotiation process, the project has had strong political connotations and in many ways been geopolitically significant, but by the time it was finalized, it has turned out to be first and foremost a bilateral trade agreement between two nation states, creating new opportunities for firms in both countries, for example cooperating in in third countries.
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