President Jiang Zemin arrived in Iceland, the westernmost country of Europe, early Friday morning to kick off a three-day state visit.
"I hope my visit will further enhance mutual understanding and friendship between the two countries and promote bilateral friendly relations in the new century,'' Jiang said in a written statement issued upon his arrival.
Bilateral relations have enjoyed sound development since the two countries established diplomatic ties in 1971.
Jiang said China is satisfied that high-level exchanges of visits and communication at all levels have increased, mutual understanding and trust have been enhanced and bilateral cooperation in fisheries, geothermal energy resources and shipbuilding has been fruitful in recent years.
He is scheduled to hold talks with Icelandic President Olafur Ragnar Grimsson this evening.
The two presidents are expected to explore new ways for bilateral cooperation, according to a Chinese foreign ministry spokesman.
The Chinese president flew into the island country in the North Atlantic Ocean after wrapping up his state visit to Estonia on Wednesday and Thursday.
China attaches importance to developing mutually beneficial and cooperative relations with the three Baltic countries, Jiang told his Estonian counterpart Arnold Fyodorovich Ruutel during their talks on Wednesday.
Jiang said China is ready to work together with the three Baltic countries for the maintenance of world peace and stability.
China supports the efforts of Estonia in safeguarding independence, sovereignty and building of the nation, Jiang told Ruutel.
He added China respects the development road and domestic and foreign policies that Estonian people have chosen.
Turning to bilateral economic cooperation, Jiang said the two countries have more business opportunities in transportation, information technology, fisheries and lumbering.
Bilateral trade volume was US$273.72 million, an increase of 309.2 percent on the previous year.
After their talks, the two presidents witnessed the signing of an agreement on judicial assistance in criminal investigations between China and Estonia.
(China Daily June 14, 2002)