Going North: Chinese PM in Iceland seeking influence in Arctic

Published time: April 20, 2012 18:08
Edited time: April 20, 2012 22:40
Chinese Premier Wen Jiabao arrives in Keflavik April 20, 2012 (Reuters / Ingolfur Juliusson)
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China's premier Wen Jiabao has arrived in Iceland at the beginning of his European tour. While China says it is mainly interested in geothermal energy technology, many think the country is eager to lay its hands on the Arctic’s wealth of resources.

­Wen will spend two days observing volcanic geysers and electricity plants where Iceland harnesses geothermal energy. Iceland is seeking cooperation with China in developing similar resources in east Africa.

But Beijing does not deny its direct interest in the Arctic territories, which have large reserves of oil, gas, gold, diamonds, zinc and iron.

"China is willing to make contributions towards the peace, stability and sustainable development of the Arctic region, and it is on that basis that China seeks cooperation with Iceland," China’s vice foreign minister, Song Tao, said at a press conference on Wen’s trip to Europe.

Officially the Arctic does not belong to any country, but there is an Arctic Council consisting of the eight member states bordering the territories: Russia, the United States, Canada, Norway, Sweden, Iceland, Finland and Denmark.

China, which has the status of ad-hoc observer to the body, is seeking to become a permanent observer in order to acquire more power and may want to use Iceland’s poor economic situation to bolster Beijing’s position in the region.

However, to gain permanent observer status China has to be approved by all the members of the council.

Another item on the Chinese-Icelandic agenda is free trade. The two countries had already begun the talks on the issue, but they were suspended in 2009 as the island nation applied to join the European Union.

Chinese and Icelandic officials said they will hold talks about resuming this process.

After visiting Iceland, Wen will head for Germany, Poland and Sweden where he is to discuss investment and industrial projects.

Wen’s trip shows the changing of geopolitical powers and Iceland is a very convenient place for China to start, says Arsaell Valfells, professor of economics and finance at the University of Iceland.

“Icelandic-Chinese relations have been extremely friendly and we don`t have any points of friction between the two countries,” he explained.

Nordic states pose little problem to China in its bid for permanent observer status and he thinks Russia and Canada would be much more difficult to persuade.

Gang Chen, a researcher at the East Asian Institute, believes it is highly likely that China will get the status of permanent observer in the Arctic Council:

“First, China will use all its diplomatic skills to get more support from Nordic countries, which are more friendly towards China,” Chen asserted. “Then it will also use its economic leverage to gain the support as the West is in the crisis now.”

Political analyst Professor Joseph Cheng believes China is mainly interested in two things in the Arctic: possible new navigation routes and natural resources.

Cheng added that China has something to offer to its prospective Arctic partners as the country has money, and resource exploration is always a risky business. Besides, he said, China is not seeking to be dominant in these ventures and is ready to be a junior partner.

Comments (5)

Eastern Glory 22.04.2012 04:26

It is a welcome development. Officially the Arctic does not belong to any country, but there is an Arctic Council consisting of the eight member states bordering the territories: Russia, the United States, Canada, Norway, Sweden, Iceland, Finland and Denmark. On this point there are couple of observations:  It is jocular that the major powers are aiming to divide the riches of Arctic based on the countries bordering the region. We need criterions that are more meaningful and sensible. China has always exhibited "trade-centric" attributes while doing business (Africa and Latin America being the classic examples). Hence, partnering with China in the Arctic region would not be counterproductive to either of the existing members. Readers should not misunderstand the urge of the Chinese to move overseas. Increasingly large number of Chinese businesses are moving out because they face the risk of being outsmarted fiercely in the domestic market which is the most cut-throat business environment for businesses as both foreign and local players compete by leveraging the same benefits (cheap labor, electricity, land, water, tax incentives) et al. Hence, China doesn't aim at colonizing foreign territories economically.  Moreover, China possess a reasonable level of expertise in exploring mineral resources (thanks to their experience in local markets and African states) and hence their experience would be of great help to the existing Arctic members.  

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Norwegen 21.04.2012 08:34

The People's Republic of China is not an arctic nation and has nothing to do in the arctic area, the resources in the arctic belong to the arctic nations and no one else. China is beginning to become more and more gutsy, first Africa then the Arctic. In 10-20 years we'll see that China has become a more imperialistic state, that will interfere in other nations business, wait and see. Increased power means interference, just look at the US, and when the USSR they did it to. China is currently colonizing African states through economical means, they don't want to help anybody, they want to earn money.... Nothing more.

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Vann7 20.04.2012 22:54

ben benito wrote in #1
It is great to see a powerful country asking to join nortic-states as ( a junior partner not as a bully.) Maybe the U.S. and Zionist west should learn something from this. 
Ha.. CHina is completely the opposite of Corrupted States of NA ,UK and France.. they don't put a gun in others countries leaders head to accept their deals.. check for example what africans think of CHina.. from wiki..
- - -  - -Southern Sudanese hip-hop star Emmanuel Jal noted that China was seen positively by Sudanese and Africans due to its non interference policy, only doing business, saying- "The Chinese don't influence our politics, They don't comment on it, and what they want, they pay for -- sometimes double the amount. This tends to make all Africans happy -- from the dictators to the democrats, There isn't a party in Africa that doesn't like them. Even if you're a rebel movement and you say to them you can secure gold, the Chinese will simply say they want to buy it.- - - 
IF the west did business like china there will be ZERO wars in the middle east or africa. zero invasions and no coups to take their country resources with the pretext of "democracy" or "human rights".

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