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In likely Arctic race, China cautious in tapping resources
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EDITOR’S Note:
The Arctic has a huge reserve of natural resources that could help fuel China’s economy. And as the ice melts, creating new shipping routes, the Arctic will become busier with traffic and likely exploitation of its resources. There is growing awareness in China of the region’s strategic importance. In 2013, China joined the Arctic Council as a permanent observer state.
As a latecomer, how will China develop its Arctic strategy? Camilla T. N. Sorensen, assistant professor of political science at the University of Copenhagen, Denmark, recently spoke to Shanghai Daily reporter Ni Tao about the issue.
Q: Why are Greenland, a Danish territory, and the Arctic starting to attract Chinese business interest?
A: When it comes to developing the natural resources and energies in Greenland, China is a very important and potentially crucial factor because China is often seen as one of the few states that have the capability to execute the necessary investment.
And the situation in China, with the need for resources and energies to sustain that economic growth, also means that there is a Chinese appetite for these resources from Greenland. And they are willing to invest in the long term. So this is what piques China’s interest in Greenland. And there is a strong effort from Greenland to attract Chinese investments and activities. Chinese investments are needed, or seen as needed, but there is a fear somewhat in Denmark and Greenland that they will come too much, too fast.
Q: Will Nordic public perception of China in a negative light hinder its ambitions to invest in Greenland?
A: China is being very careful. The Chinese Foreign Ministry came out last year to clarify that they hadn’t done anything on Greenland.
China is a big country with a huge population. Its economy is going well and we hear a lot about China’s rise. So the Danish media sometimes paint a sensational picture of China coming to take over Greenland for its rich natural resources. But actually their picture is out of touch with what is going on.
China is also calculating, because it’s not easy to develop those natural resources, minerals and energy. It is a very difficult climate, there’s still little infrastructure and you’ll have to start from scratch. It’s a very tough condition for Chinese workers and technicians to work in, even with the melting ice. Chinese companies are doing assessment studies of whether it can pay off and how long.
Meanwhile, the Chinese government is careful not to stoke the fear of China, by doing it slowly, gradually, and through the right channel.
Right now most people on Greenland rely on fishing and hunting. Developing natural resources is simply seen as something that can make them more independent from Denmark. They need a lot of aid from Denmark to keep the system going, so they want to be more self-sufficient.
Q: Are the local populations worried that foreign workers and investors will not just take their jobs, but also spark an end to their traditional way of life?
A: It’s important for the people of Greenland and their own leadership to make sure that foreign investment will give jobs to people on the island. But they also have to realize that it also means having workers and technology from outside.
What they have agreed actually last year is that it is up to the Greenland people and government to decide about these matters.
But to have a lot of people coming over, you have to have immigration laws. And immigration laws are dictated in Copenhagen. So there is also an influence from Copenhagen.
What they agreed is that there will be a minimum salary to ensure there isn’t the so-called social dumping, that foreign workers don’t come and work for excessively low salaries that will kind of undermine the local labor market. The perception that Chinese people are willing to work overtime for no money is of course not true, especially with the harsh conditions on Greenland.
Q: China has many environmental problems linked with development. Is that why Nordic countries are ambivalent when they court Chinese money?
A: That’s a very strong concern also from Denmark. In 2011, Denmark, together with Greenland and Faroe Island, put out this Arctic strategy. It’s kind of a white paper.
And there are strong environmental concerns about sustainability. It’s because the region is very vulnerable. We don’t yet know the influence because it’s a changing climate. And Denmark is very concerned that the development is done with strong consideration of the environmental implications, and also implications for the inhabitants living there.
Q: With so many great powers vying for their interests in the Arctic, will the region become a battleground for geopolitical rivalry?
A: No, it’s not yet the battleground. Once you look at how the states are dealing with each other, both in the Arctic Council (Ed: the intergovernmental forum that addresses issues faced by the Arctic) and bilaterally, you’ll see it’s still very peaceful, still done through diplomacy, negotiation, and willingness to compromise.
This is what we are seeing a lot with unresolved territorial and maritime issues in the Arctic region, between the Arctic Five (Russia, Canada, the United States, Denmark, Norway). They still focus on their common interests.
What we should also remember is that the Arctic is still a very inaccessible region. Actually countries need each other for search and rescue. There’s strong cooperation already.
It is not yet a battleground, but the potential is there, because you have the great powers. If the tensions between the US and NATO on the one side and Russia on the other side continue to increase, the Arctic could also be very much influenced. Except Russia, all the other Arctic Five members are NATO members.
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