The Arctic region has become a focal point of global attention due to its strategic, geopolitical, and economic importance in the twenty-first century. China and Russia are actively seeking economic advantages in controlling the Arctic Circle, which could shape international trade for decades to come. RADM (Ret.) Mark Montgomery emphasizes the military and economic significance of the region, highlighting that the Pentagon has labeled the Arctic as critical for homeland defense. Recently, Chinese bombers flew near Alaska, prompting the U.S. to intercept them within 200 miles of the Alaskan coast, following President Biden's announcement not to seek a second term. Deputy Defense Secretary Kathleen Hicks has noted that climate change is impacting geopolitics, making the Arctic even more crucial for global powers. [0846df63]
In August 2024, China sent its third icebreaker, the Ji Di, into the Arctic, further asserting its presence in the region. This move comes as the U.S. Coast Guard's icebreaker Healy had to abandon its mission due to an electrical fire, and the Polar Star is currently undergoing refit. The rapid increase in China's naval capabilities contrasts sharply with the U.S.'s lagging resources, raising concerns among U.S. leaders about the need to respond to China's military expansion. In 1990, China's GDP was only 7% of the U.S. GDP, but it has now surged to 70%. Despite U.S. military spending being three times that of China, the pressure to counter China's advancements is mounting. [2dca55b7]
On September 24, 2024, the United States and Canada announced the formation of a task force to negotiate the maritime boundary in the Beaufort Sea, addressing the overlap along the continental shelf in this ecologically sensitive area rich in oil and gas deposits. This dispute traces back to the 1825 Anglo-Russian treaty, which has led to differing interpretations by the two countries. The U.S. government had previously designated nearly 3 million acres in the region as 'indefinitely off limits' for oil and gas leasing under President Biden, building on an Obama-era ban. These negotiations are prompted by increased cooperation between Russia and China in the Arctic, as both nations seek mineral resources and new shipping routes due to climate change. [9a36e8c1]
China has emerged as a prominent player in the Arctic, unveiling its ambitious plans for the region, including the development of the 'Polar Silk Road'. Despite not being an Arctic state, China aims to exert greater influence in the region, driven by strategic considerations such as securing access to natural resources and leveraging the changing dynamics to advance its national interests. In 2023, over two million tons of transit cargo were shipped through the Arctic, underscoring the region's growing importance for international trade. However, infrastructure improvements are needed to accommodate increased shipping. [f339056d][09c30a2d]
Meanwhile, Russia is asserting its claims in the Arctic, including the North Pole and the Lomonosov Ridge, to establish territorial rights. The U.S. Department of Defense has highlighted the implications of both China's and Russia's Arctic strategies, emphasizing the need for a robust U.S. Arctic strategy in response to their ambitions. The Arctic Council, consisting of eight Arctic countries and thirteen observing states, has been successful in resolving disputes and establishing norms for environmental sustainability, but the geopolitical landscape is shifting. [17f5fa5d][6168a41c]
India and Finland recently conducted diplomatic talks to discuss regional and global matters of common concern, including developments in neighboring regions and the Ukraine conflict. The talks also covered trade and investments, educational collaboration, digital partnerships, sustainability initiatives, and more. The two nations are set to commemorate the 75th anniversary of their diplomatic relations in 2024. To foster new business partnerships, the India Nordic Baltic Business Conclave will take place in November 2023. India's Arctic Policy is of significant importance, and its collaboration with Nordic countries strengthens its ties with the European Union. [6168a41c]
The article 'On Thin Ice? The Delicate Geopolitics of the Arctic and the South China Sea' compares the geopolitical dynamics of the Arctic and the South China Sea, highlighting the potential for increased economic activity in the Arctic due to climate change and the melting of sea ice. The Arctic is rich in oil, natural gas, and minerals, and countries including China have expressed ambitions to exploit these resources. However, the article argues that the Arctic differs from the South China Sea in terms of cooperation, military involvement, territorial disputes, and resource accessibility. [4e36448d]
Greenland, with its vast natural resources, is becoming a major player in the Arctic gold rush. The United States and China have shown interest in the region, and now the European Union (EU) is raising its profile in Greenland. The EU is establishing a raw materials partnership with Greenland to reduce Europe's reliance on China, which dominates the production of rare earths and other critical minerals. The EU aims to secure a diversified sustainable supply of raw materials and boost its geopolitical standing in the region. [17f5fa5d]
As tensions rise, experts suggest that engaging with China is crucial to avoid escalation and emphasize the need for clearer trade rules and revisions to the UN Convention on the Law of the Sea. Australia's military ties with the U.S. also raise concerns about being drawn into potential conflicts in the region. [2dca55b7]