And now, Newsweek fleshes it out a bit:
Once the Arctic is navigable by commercial traffic year-round, Iceland could serve as a friendly and well-equipped way station for China in the North Atlantic (the U.S. military left some handy facilities in place when it quit the country in 2006). The idea is appealing to Iceland, as well. President Ólafur Ragnar Grimmson recently talked of his country's future as a logistics hub and cited Chinese interest.
Here's some more context on the growing potential geopolitical status of Iceland even as its economy totters.