Posts tagged ‘Suez Canal’

21/07/2014

China and the Arctic: Polar bearings | The Economist

CHINA does not loan out its pandas to just anyone, so a deal in April for two of the bears to head to Copenhagen zoo raised some eyebrows in Scandinavia. Some commentators suggested that this was all about the Arctic and especially about Greenland, which Denmark partly administers, and its mineral resources.

Certainly China is interested in the Arctic. On July 11th its icebreaker, Xue Long (“Snow Dragon”), embarks on the country’s sixth Arctic expedition, with 65 scientists on board. A new 1.3 billion yuan ($210m) icebreaker will soon be launched, and last December a China-Nordic research centre was opened in Shanghai.

New freight opportunities interest China along the Northern Sea Route (NSR) as ice recedes. In 2010 four ships took the route. Last summer 71 vessels did so. Each ship that takes the route must, at certain points, be accompanied by an ice-breaker, so it is unclear how soon the NSR will be suitable for mass transit, if at all.

Some climate models predict the Arctic Ocean could be ice-free in summer by the middle of this century. The route cuts the distance between Rotterdam and Shanghai by 22% and Yang Huigen of the Polar Research Institute of China has predicted that 5-15% of China’s international trade will use the NSR by 2020. But Linda Jakobson, of the US Studies Centre at the University of Sydney, says that is a “rather optimistic assessment” and that talk of the NSR as a new Suez Canal is overblown. Weather conditions and environmental sensitivities will make the route a difficult one.

As for energy, China is one of the biggest investors in mining in Greenland. A deal with Rosneft, a state-controlled Russian company, will explore offshore Arctic fields for oil. But the undersea resources in the Arctic are largely within the Exclusive Economic Zones of the littoral states (notably Russia), so if China wants to look for energy it will have to do so jointly.

Meanwhile, other relationships have thawed. A rift with Norway over the awarding of the Nobel peace prize to Liu Xiaobo, a detained Chinese activist, is healing. But the new Chinese presence is not without concerns. Huang Nubo, a tycoon, recently bought 100 hectares (250 acres) of land in northern Norway and has bid for a plot on the island of Svalbard, where China has a research station. He aims to develop a resort for Chinese tourists. Mr Huang had similar plans in Iceland in 2011, but local protests quashed them. A Norwegian newspaper has called him a “suspected imperialist”. Perhaps Norway is in need of some pandas.

via China and the Arctic: Polar bearings | The Economist.

21/04/2012

* China’s Premier in Iceland, eyes on Arctic riches

extract from Reuters: “China signed accords on energy cooperation and the Arctic in Iceland on Friday as Premier Wen Jiabao started a tour of northern Europe that will focus on Chinese investment in a continent eager for funds and to trade with the rising world power.

Centrepiece of the trip will be a visit to Germany, where Wen and Chancellor Angela Merkel will on Sunday and Monday burnish industrial ties that have done much for both economies. That the prime minister of the world’s most populous nation should stop first, however, on a remote island of just 320,000 has raised hopes for an injection of Chinese cash into an economy ravaged by the bursting of a financial bubble in 2008 – but also suspicion of Beijing’s hunger for natural resources. …

Over two days, Wen, who trained as a geologist, will see volcanic geysers and electricity plants where Iceland captures geothermal energy. Friday’s meetings between Wen and Icelandic Prime Minister Johanna Sigurdardottir resulted in agreements to cooperate in the Arctic region, in marine and polar science and in geothermal energy. Orka Energy Ltd – an Icelandic firm focused on producing geothermal energy – and China’s Sinopec Group also signed a deal to develop geothermal energy in China for heating houses and the production of electricity, though no figures were provided. …

But by starting with a full-scale visit to Iceland, Wen has fuelled European concern that China might be trying to exploit the country’s economic troubles to gain a strategic foothold in the North Atlantic and Arctic region. The area has big reserves of oil, gas, gold, diamonds, zinc and iron. And with global warming melting polar ice, it may offer world powers new shipping routes – and naval interests – for the trade between Asia, Europe and America’s east coast. “When it comes to the Arctic, we always have China on our mind,” said one European diplomat from the Nordic region, who spoke to Reuters this week on condition of anonymity.

But conspiracy theories over why such an Asian giant would be interested in such a small nation abound. “Given Chinas investment pattern around the globe, people have asked questions. Why are doing this? Is there some ulterior motive?” said Embla Eir Oddsdottir at the Stefansson Arctic Institute. “For next decade they are going to be battling some sort of suspicion as to their motive, because people have a tendency to link them to some type of regime.” …”

via UPDATE 3-Chinas Wen in Iceland, eyes on Arctic riches | Reuters.

Why the suspicion and conspiracy theory?  China has been wooing all sorts of countries in the recent past – see posts:

https://chindia-alert.org/2012/04/16/us-alert-as-chinas-cash-buys-inroads-in-caribbean/

https://chindia-alert.org/2012/12/31/question-who-did-china-woo-in-2012/

https://chindia-alert.org/political-factors/geopolitics-chinese/

It is part of China’s geopolitical plan to be friends wioth everyone – without prejudice to religion, race, politics, etc!

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