CURRENTS Vol XXIV, No. 2 | 2021

Page 108

ship became the first commercial vessel to

Paper requires China to establish relations

presence on the island with strong opposition.

326

use the NSR to travel from Asia to Europe.

with all Arctic states and stakeholders. The

Danish politicians have warned that China

China and Russia declared their commitment

rationale is that if all Arctic actors are tied

is a threat to the overall security of political

to carrying out major cooperation projects

to China through agreements on scientific

interests, stating that the consequences of

in areas such as trade, energy, infrastructure,

research, resource extraction, infrastructure

China’s expansion on the global balance

and the NSR in 2017.

In 2018, China

development, and trade, then China is in a

of power are “incalculable and even more

entered a credit agreement with Russia

position “to manage unforeseen developments

ungovernable.”340 The annual risk assessment

wherein China agreed to provide up to $9.5

and future attempts to marginalise China in

reports published by the Danish Defense

billion for the construction of infrastructure,

the region.”

Intelligence Service have expressed concerns

327

333

including projects along Russia’s NSR.328

Second, Greenland has rich iron, zinc,

that Chinese investment will introduce

By acquiescing to Russia’s claim of control

rare earth elements, and uranium deposits,

dependencies and vulnerabilities to

over the NSR, China is supporting Russia’s

and erosion of the Greenland ice sheet allows

Greenland’s economy.341 Michael Sfraga, the

claim that the NSR is within internal waters.

greater area for mining projects. Though

Director of the Polar Institute, has said that

China has not reached similar agreements

China has large mineral reserves, Chinese

“[i]f you invest a lot in a small island country,

with Canada regarding the NWP.329 Though

iron ore is generally low grade.334 Further,

you could have a lot of sway there.”342

an arrangement with China would benefit

China produces over 80% of the global

Canada’s NWP claims, Canada has expressed

output of rare earth elements.

China has

criticism with skepticism, viewing it as an

concerns about China’s evolving position on

invested in Greenland’s Kvanjefjeld Project,

attempt to stymie Greenlandic independence

the status of the strait.330

where an estimated 270,000 tons of uranium

rather than a good faith concern. 343

China’s involvement in establishing

are deposited.336 Such investments have been

Disagreements between Denmark and

international recognition of Arctic sea

made possible by changes in the Greenland-

Greenland over which nation has jurisdiction

routes exacerbates conflict among Arctic

Denmark power structure. For example, the

over what types of foreign investment are

States that dispute Russia’s and Canada’s

Self-Government Act shifted responsibility

already a source of tension. China’s economic

claims. However, China’s influence over

for the administration of mineral and oil

interest in mining and infrastructure projects

semi-sovereign Greenland presents a more

extraction in Greenland from Denmark to

further strains relations between Denmark

direct source of conflict for the region.

Greenland.337 Pursuant to its new authority,

and Greenland.344

Greenland is a territory of Denmark that is

Greenland was able to diversify its economy

These tensions are exemplified by

moving toward independence.

by repealing a law that banned mining of rare

Danish interference in Greenlandic-Chinese

earth elements and radioactive material.

development plans. In 2016, Denmark

331

To obtain

economic independence from Denmark

335

338

Greenlandic politicians have met Danish

without compromising the level of welfare,

Finally, Greenland presents an

attempted to sell the aforementioned naval

Greenland must necessarily invite foreign

opportunity to enhance global infrastructure.

base but took it off the market when a

development and investment.332 Greenland

The nation marks the arrival point of the

Chinese company expressed an interest in

is looking for investments to further develop

Polar Silk Road and is the only route that

buying it. The Danish government claimed

and diversify its economy. It has shown a

339

does not pass through territorial waters.

the reversal was based on a determination

willingness to accept Chinese investment,

China has expressed interest in establishing

that the base was still of use in Denmark’s

which it perceives as an opportunity to move

an Arctic research hub in Greenland.

Arctic defense. However, leaks released to the

toward full Greenlandic independence.

Further, Chinese firms have made attempts

Danish media indicated that the real reason

to buy an abandoned naval base and finance

was to avoid selling the base to the Chinese

commercial airports in Greenland.

firm. The scandal enforced Greenlandic

Greenland is of interest to China for three reasons. First, investment in Greenland enhances Chinese influence in the Arctic. The

However, Denmark thwarted these

mistrust towards Denmark and strengthened

“win-win” strategy espoused in the White

attempts and has generally met Chinese

suspicions that the Danish government is

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Currents 24.2 2021


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