SOURCE: LIGNET
The Chinese research vessel and ice-breaker Xuelong which will depart for the Arctic, arrives in Xiamen, south China’s Fujian province on June 27, 2010, as the Arctic, a region much coveted by energy-hungry Beijing for its as-yet untapped supplies of oil and natural gas. Thanks to global warming, the frozen sheets blanketing the Arctic are expected to retreat, at least in summer, enough to allow navigation of the area and access to its wealth of natural resources. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
Summary
China’s ambitions in the Arctic reflect its growing global efforts to pursue energy and mineral reserves. Holding over 20 percent of the world’s undiscovered oil and natural gas, the region could one day help power China’s economy. It also might enable China to open another trade route if the region’s ice continues to melt away. With no territory in the Arctic, China has been dealt a weak hand in the region, but its efforts to win a seat at the table of Arctic states should not be underestimated, as LIGNET explains.
China has been increasing its deployments to the Arctic in recent years in an effort to assert itself as a “near arctic state.” Nations with Arctic sovereignty claims are wary of China’s intentions — especially the United States, Russia and Canada — and want to keep it on the sidelines of any discussions on the future of the region. To parry these moves, China is aggressively courting Greenland and Iceland with promises of financial aid to win allies to help it promote its Arctic interests.
Background
The northernmost region of the Earth, the Arctic, is a cold, inhospitable area that is largely uninhabited. It includes all the territory north of the Arctic Circle and contains parts of eight countries—the United States, Canada, Russia, Denmark (through its ownership of Greenland), Norway, Sweden, Finland and Iceland.
Although the Arctic’s vast energy reserves are a longer term interest of many states, a more immediate interest is how melting sea ice may create new sea lanes linking Asia to Europe and the east coast of the United States. These routes are illustrated in figure 1.
At the same time, new sea lanes through the Arctic region and Arctic energy exploration could be significantly limited by efforts by Arctic states to extend their territorial claims using the Law of the Sea Treaty. Under this treaty, nations can claim 200 nautical mile Exclusive Economic Zones (EEZ) and can also claim an extension of their EEZs if their continental shelf extends beyond the 200 mile limit.
So far, Denmark, Norway, and Russia have submitted claims to extend their Arctic EEZs beyond 200 nautical miles. Canada is expected to make a similar claim. The United States has not made such claims since it has not ratified the Law of the Sea Treaty and may not recognize EEZ claims under the Law of the Sea treaty. Figure 2 illustrates potential Arctic EEZ territorial claims.
Figure 2: Potential Arctic Exclusive Economic Zones (EEZ)
Source: University of the Arctic, Arctic Portal
If these EEZ claims are successful, they will decrease the international waters of the Arctic to one-third of its current size. This would severely limit the access by China and other non-Arctic states to the natural resources of the region.
Although China has no territory within the Arctic, it has moved aggressively in recent years to become a major player in the region. China’s position is that most of the Arctic is open territory to which it has a legal right to transit and exploit as much as any other nation.
China has not been shy in backing its rhetoric up with actions. Just this month it announced that it would launch another expedition to the Arctic—its 6th in the last year—to show its flag in the region. With its icebreaker, Xue Long, Chinese ships have visited the Arctic regularly since 1999. It is now building a second icebreaker to further expand its presence in the region.
The first Chinese trip to the Arctic by Xue Long in 1999 raised eyebrows because it traveled through waters claimed by Canada. China did not receive permission from Canada’s government for the trip—a loud diplomatic signal that it does not recognize Canada’s Arctic territorial claims.
The Xue Long made history again in 2012 when it conducted its first Pacific-to-Atlantic transit through the polar region. It stopped in Reykjavik, Iceland and conducted joint research with Icelandic scientists.
China’s naval operations in the Arctic have been matched by equally aggressive diplomatic moves, especially in its eagerness to gain permanent observer status on the Arctic Council, the international body comprised of the eight nations that have Arctic territory. The council sets rules and regulations for the region and is discussing territorial claims and EEZs.
As a permanent observer on the Arctic panel, China would have no vote but would be able to attend the body’s meetings. So far, it remains on the outside looking in because Canada, Russia and the United States are resisting China’s membership request.
However, on January 21, Norwegian Foreign Minister Espen Barthe Eide said his country favored China’s Arctic Council permanent observer membership bid but also expressed interest in agreeing to observer bids from India, South Korea and Singapore.
Analysis
China wants to keep much of the Arctic region’s sea area as international waters so that it can transit them and eventually attempt offshore energy exploration without having to deal with territorial claims. Understanding that it could be squeezed out of much of the Arctic by new 200-mile Exclusive Economic Zone claims, China has been aggressively courting Greenland and Iceland, offering them financial aid in exchange for access to the Arctic region through their territory. Seen in this light, the operations of the Xue Long are really missions in support of a larger diplomatic strategy to gain allies to protect Chinese interests.
China also sees the Arctic as providing important trade opportunities. With significant melting of Arctic ice in recent years, there is now a potential for new trade routes that would allow China to bypass choke points like the Panama Canal and Strait of Malacca near Singapore. If China was able to establish such a new trade route through the Arctic, it could drastically cut shipping times to Europe and the east coast of the United States.
Conclusion
China’s ambitions in the Arctic are another example of its aggressive efforts to expand and secure its access to vital energy resources that it needs to fuel its rapidly growing economy in the coming decades. It shows that Chinese officials are farsighted in their thinking and that they are prepared to take the necessary steps to safeguard their interests, even in a region China has no territory.
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