China, Iceland sign FTA

During the talks,the two sides also reaffirmed that they fully respect each other's sovereignty and territorial integrity. "Iceland firmly adheres to the one-China policy and supports the peaceful development of cross-Strait relations and the course of the peaceful reunification of China."

During the talks, the two sides also expressed their commitment to the pursuit of sustainable development, taking into account the political, economic, social, environmental and cultural circumstances of each country.

"The two sides respect each other's development paths chosen in line with their own national circumstances," according to the statement.

In the statement, the two sides also reiterated that they follow the ideals embodied in the Universal Declaration of Human Rights and relevant international human rights treaties they have acceded to and will continue to actively promote and protect human rights.

The two sides also agreed to expand cooperation on labor issues, as well as in culture, education, tourism and other fields, and facilitate people-to-people contacts and exchanges, according to the joint statement.