China's Pursuit of National Interests in the Arctic - An Examination of China's Geostrategic Investments in Iceland and Greenland

Abstract: In today’s global politics, the Arctic is assuming an increasingly important geoeconomic and geopolitical role among Arctic and non-Arctic states, as the retreating ice cover reveals new economic potentials such as the development of natural resources (Käpylä & Mikkola, 2016). China is among the interested non-Arctic states that aim to increase their influence in Arctic affairs and to get in on the Arctic opportunities. The aim of this thesis is to analyse what specific geostrategic objectives China is seeking to realise in its Arctic bilateral cooperation with Iceland and Greenland. Secondly, the aim is to examine how these objectives feed into China’s overarching goal of increasing its energy security. Lastly, the aim is to consider whether the bilateral cooperation between China and Iceland/Greenland constitutes a zero-sum game. The analysis takes its point of departure in geoeconomic theory and the answers to the research questions are found through a thorough examination of China’s foreign policy goals and its Arctic cooperation with and investments in Iceland and Greenland. The analysis shows that the geostrategic objectives China is seeking to realise pertain to scientific research and development of various natural resources. It also indicates that political influence is a strategic objective of importance to China which it seeks to realise through strong bilateral relationships with the Arctic states. These objectives should be viewed through the scope of China’s ‘Going Out’ policy and its Arctic policy. However, it seems unlikely that the deposits of natural resources in Iceland and Greenland are going to increase China’s energy security in the near future. Nor can the Sino-Icelandic and the Sino-Greenlandic cooperation be perceived as a zero-sum game as all parties gain from the Arctic cooperation.