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China in Greenland: A challenge for the European Union

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Published 15 June 2012, updated 21 June 2012

There are clear signs of competition between the European Union and China to gain access to the strategic assets of Greenland, and they will continue to show during Hu Jintao's state visit in Denmark these days, argues Damien Degeorges.

Damien Degeorges is associated researcher to the University of Greenland and author of 'The Role of Greenland in the Arctic'.

"The Arctic is hotter than ever. Not only due to the consequences of climate change in this region, but also because of the rise of global non-regional powers in this new frontier of international relations.

China is from far the most significant. Such a presence raises opportunities and challenges for future developments in the Arctic. China in the Arctic can be an enormous asset when it comes to climate research, if it leads to further international cooperation in the field of polar research, which is of strategic importance in order to get the best data to adapt to climate change and global sea level rise.

The case of Greenland in the Arctic is often underestimated. This self-ruled territory of the Kingdom of Denmark is in an advanced stage of its state-building process and attracts major powers. Greenland is as large as about half of the European Union and inhabited by no more than 57,000 persons. Only 44 politicians are in charge of Greenland (including ministers, MPs and mayors).

Within a very short timeframe (a couple of months), the Premier of Greenland Kuupik Kleist has met with powerful persons from the US, the EU and China: US Secretary of State Hillary Clinton, President José Manuel Barroso of the European Commission, China's minister of land and resources Xu Shaoshi (Kuupik Kleist also takes part in the state banquet offered in honour of Chinas President Hu Jintao during his state visit to Denmark in June 2012 – the first visit ever of a Chinese President to Denmark), the 27 Permanent Representatives of Member States to the EU (COREPER II), several European Commissioners, and more.

Which head of state or government in the world is having such a privilege? Given that Greenland is not a state, it is simply unique. It also shows how resources can be a key to international recognition (Greenland took over the management of its natural resources in 2010, as part of the Self Rule Act).

Those days of June 2012 show a clear competition between the European Union and China to gain access to the strategic assets of Greenland. Rare Earth Elements are on the list and brought Vice-President Antonio Tajani of the European Commission to Greenland on June 13th. Analysts agree on considering that China's President Hu Jintao will certainly have its eyes looking toward Greenland while visiting Denmark on June 14-16.

China's interest in Greenland is not new. Only going back to 2005, when then Premier of Greenland Hans Enoksen visited China, the Asian power was among the few countries looking at Greenland at that time.

The visit to China by Greenland's minister for industry and natural resources Ove Karl Berthelsen in November 2011 showed a clear signal of China's interest in Greenland: China Vice-Premier Li Keqiang welcomed the Greenlandic minister.

While representatives of major economies may have difficulties to be received at this level when travelling to China, it appears more than easy for Greenland, without expecting it and especially without being a state (particularly rare in the case of a relationship with China). April 2012 and the visit to Greenland by China's minister of land and resources Xu Shaoshi was just another confirmation of China's interest in Greenland.

While China is heavily looking at Greenland when it notably comes to polar research, natural resources (i.e. iron ore) and infrastructures, Greenland is looking for investments to further develop its economy toward a possible independence.

A too fast independence would lead to higher risks of economic difficulties and become an opportunity for foreign countries to offer an independent Greenland economic assistance. Such a (long-term) situation could have consequences for future developments in the Arctic and global energy security.

Given its particularities and strategic assets, an independent Greenland would need an economic "security net" to "securise" its development, as the Danish state's yearly block grant to Greenland will have come to an end. This economic "security net" could be provided by a partly supranational entity, either in North America or in Europe. As of today, the European Union had no equivalent in that regard in North America, as the North American Free Trade Agreement (NAFTA) only deals with free trade.

One of the most important challenges facing future developments in the Arctic is to avoid a weak Greenlandic state, given the strategic assets of this territory at the centre of the new frontier of international relations. By securing the development of an independent Greenland and preventing major risks in case of economic difficulties, the European Union could therefore have a constructive long-term role in the Arctic, in the interest of Arctic states."

COMMENTS

  • Very nice analysis. And i enjoy reading your work on the arctic.

    As i understand it the EU commisioner Antonio Tajani has visited greenland lately and EU and Greenland have signed a mutual agreement (letter of intent) to make sure the ressourses on Greenland is sold on the open market?

    By :
    Markus Morthen Sørensen
    - Posted on :
    19/06/2012
  • It might make more sense for Greenland to join the Canadian confederation. It would then have access to the North American markets, and to Canada's relatively generous social security infrastructure and policy of 'equalization grants' which serve the same purpose as the 'block grants' now received from Denmark. In terms of national defense, association with North America would provide greater resources than are possible on a 'go it alone' basis or from Europe. The connection with Europe need not be lost if the current Canada-EU economic and labour mobility negotiates prove fruitful.

    By :
    Dave Roach
    - Posted on :
    19/06/2012
  • @Dave Roach

    The relations with Canada and the US have never been so developed, although Greenland has more in common with the native population in the Canadian arctic, then the europeans. But the potential of the north american market is surely great. This again points out the unique situation Greenland is in at the present time.

    I just hope the people of Greenland and in particular the politicians, choose the right path for the country.

    By :
    Markus Morthen Sørensen
    - Posted on :
    20/06/2012
  • Well done in this analysis.

    If the Great Powers (which today includes the PRC and the Republics of Brazil and India) are so interested in Greenland then stand back awhile and consider why? The vastness of the Country and its potential of land-locked mineral resources is the natural one of interest - they do not care about the consequences of the Environment at all. Take a look at Mongolia and Alaska and Northern Canadian Arctic and it will be self evident that this is all for greed and self-preservation of their own economic growth.

    Yes of course the in-country resources are worth a fortune but at what cost. Is Spitzbergen the analogy of what could happen? When those limited resources run out from that island it will revert back to a backswood has been base not disimilar to South Georgia. The natural and obvious difference for Greenland though is its larger size and more intensive concentration of old rocks and the resources hidden amongst them - all as explained in this learned discourse.

    One suggestion about the development potential is to recognise that as Danmark has thatit is an autonomous independent country and that its resources are there and to be sold - as appropriately - to the best bidder consummating the needs to protect the country from the greed and avarice of its predatory (BIG NATION) partners that have only vested interests. After all there are easier accesses to massive quantities of mineral wealth in the Libyan-Egyptian (disputed) border area (the Elephant's Foot area which is technically Libyan Territory) and of the current Nations that need a massive development Libya is the one that needs it.

    So let's propose that protecting Greenland is the main aim and preserving its mineral wealth for the future is a main issue then Greenland could become - what some people have said - an "Off-shore" commercial business centre under the wings of Danmark. It would work but still be exploited within the tenure of what is tated here.

    By :
    Victoria
    - Posted on :
    27/06/2012

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