CHINA IN THE ARCTIC 2
Running head: CHINA IN THE ARCTIC 1
China’s Strategy in the Arctic
Student’s Name
Institution Affiliation
Date
Introduction
The research paper explores China’s strategy in the Arctic. China has several ambitions on the Arctic which have created international attention with countries like Canada getting concern on the business strategies implemented by Chinese people. Recently, China has expanded the economic and political systems to ensure they match with global demands. Transforming business operations from regional to global standards was a step that had a great impact on Chinese people. Change strategies in China are guided by the open-door policy which supports foreign and internal affairs relevant to citizens of China. The peaceful international environment created in China helps the country attain a better position in the Arctic (Whitney, Adam, Manicom & Lasserre, 2018). In the Arctic region, China collaborates with citizens from Canada, Russia, Finland, and Alaska to develop domestic trade and produce trade goods which are competitive in the Western international market. In China, the economy is growing at a higher rate making the country famous globally, but the government of China decided to focus on regional powers like the East Asian Affairs rather than American and European economic interests. However, China has not limited its business operations to East Asia alone but other polar regions like Latin America and Africa.
Why China Emerged with an Arctic Strategy
China decided to have an Arctic strategy that will protect her growing political economy from the interference of international backdrop in the economy. China first considered the impact of Arctic countries to her economy before exploring further investments in African regions. In 2013, China was seen staggering with her developments after incorporating the interests of the Arctic region and the European region. Before the end of 2013, a survey was conducted and indicated that GDP in China was $13.39 trillion. The population of China had increased up to 1.335 billion after the country recovered from the global economic crisis of 2008. After 2008 global economic crisis, China-focused on competing with the United States when still a member of Arctic region and such strategies motivated China to focus in developing its relations with Arctic countries where trade goods were exchanged at an affordable price. The trading activities between China, Canada and other countries in East Asia improved the economy of China and currently, China contributes 1/3 of economic growth globally (Whitney, Adam, Manicom & Lasserre, 2018). Therefore, China had a strategy to empower its economy when it was joining the Arctic where there were friendly countries like Finland to conduct business with.
In the Arctic, China is ranked as the country with well-developed military and in 2013 allocated a budget of $114.3 budget to the defense system for the purpose of protecting the Chines boundaries. China budgets highly on its military to catch up with the military developments in other countries like the United States where autonomous military systems were first invented and used in World War II. The position of China in the Arctic is also strategic to help the country assert territorial and maritime properties which were taken during the World Wars (Whitney, Adam, Manicom & Lasserre, 2018). Therefore, the event of China situating its operations in the Arctic before expanding them to Africa and Latin America was to first prepare for military empowerment, economic growth, and creation of better relationships with neighboring countries in the Arctic region. By first focusing in East Asia, China could be recognized to have a great military power that defends its dynasties. Having a position in the Arctic will enable easier management of its seaports.
To protect its seaports, China came up with a grand strategy that promoted domestic developments. For China to develop domestically as a member of the Arctic region, the government focused on protecting some parts of the Arctic ocean, Iceland, adjacent seas and frozen underground ice with tundra. After China organized events to defend its grand strategy and lost maritime and territories, government officials moved their focus from regional business to international investments (Whitney, Adam, Manicom & Lasserre, 2018). However, China remains strategic in the Arctic region for it has business partnerships with people of Alaska, Canada, and Russia. The current foreign policy adopted in China is to cater for security, sovereignty, and economic developments both in Arctic and Western countries.
In 2010, Dai Bingguo recognized China as a country enjoying political stability and such event recognized the essence of socialist ideology in maintaining peace in a state. Canada as a state in Arctic region created interest in the operations of the Chinese people. Other countries classified under Arctic region like Finland also admired the territorial integrity, social development, sovereign security and national unification efforts adopted by Chinese citizens (Whitney, Adam, Manicom & Lasserre, 2018). Since China proved to be the most developing country in Arctic region, countries gained more interests with its business partnerships with some countries like Beijing criticizing the economic efforts of the Chinese people. Beijing, for instance, organized events claiming that China is not yet developed and requires more change strategies that will revolutionize its military and trade. As Beijing criticized the economic developments in China, members of the Arctic celebrates the efforts of the Chinese government to liberate millions of people from poverty in Arctic desert by offering relief food and funds to import more foods.
China recognizes East Asia especially Arctic region as important in settling its commercial activities. Chinese strategists propose business suppliers from China to prioritize working with residents of the Arctic region, then native Africans before valuing Europeans and Americans. In adopting a better global perspective, the Chinese government decided not to ignore the business operations in Arctic region. No matter the level of global affairs organized by Chinese people and the Western Europeans, investors from China first explore the economic conditions in Arctic before expanding business operations to Europe and America. In case Finland or Russia strains in raising adequate agricultural products, Chinese governments takes it as a state responsibility to fund for basic needs of such people before focusing on European imports and exports. China likes working with states in the Arctic region to help them deal with desert disasters in the region and develop their economy (Whitney, Adam, Manicom & Lasserre, 2018). The United States supports capitalism as China uses socialism and this sometimes acts as a factor pushing the Chinese government to work with Arctic countries more than US and UK.
China focuses on national strength as guided by the strategies of the reform era. The pragmatic foreign policy in China ensure military forces is modernized to include powerful weapons for defense purpose. Also, the pragmatic foreign policy improves power status in China and ensure there is a calculative strategy for measuring the developments of China if compared with the demands of the international community. In modern days, china has reduced its concern with Finland and focused on relating to major powers like Britain who organizes trade based on demands of their international community. The arctic ambitions of China are still active and coordinate with countries in Arctic region to control the anonymous military systems like the use of robots to replace the human personnel in battlefields. Implementation of treaties like the Nuclear Non-Proliferation Treaty cannot be possible through efforts of China solely but require support from Canada, and other members of the Arctic region (Whitney, Adam, Manicom & Lasserre, 2018). After coordinating with Arctic states, China embraces international understanding to ensure the operations in Arctic do not limit its foreign investments in Africa.
In 1984, China was motivated by the interests of the Arctic to join the agencies which provided advanced nuclear plants like the International Atomic Energy Agency. By joining IAEA, China authorized its chemical engineers to work with the agency to understand the working of the autonomous military weapons, aerial robots and other sophisticated inventions in the military. China uses an instrumental approach when strategizing on matters related to international organizations. After working for long with Arctic countries, China was trusted by many countries and allowed by Brazil and Argentina to participate in nuclear developmental programs. Further activities of China in Arctic allowed the country to join the Missile Technology Control Regime in 1992 to help in regulating foreign exchanges for development of its economy (Whitney, Adam, Manicom & Lasserre, 2018). International perceptions still motivate China to invest in autonomous military systems, foreign trade and struggle to meet the demands of Cultural Revolution.
Chinese activities in the Arctic are still studied by the Arctic scholars. By use of regional diplomacy, China connects with political organizations in the Arctic and cope with international politics while maintaining the demands of Arctic communities. China is ambitious to have political influence on regional politics in the Arctic. Chinese people try all available opportunities that will enable them to pursue political and economic interests. China has utilized several strategies to form economic partnerships in the Arctic which help the country maintain its territories especially the near seas. Economists from Beijing argue that China is lulling the operations of states in the Arctic claiming they are bringing commercial benefits and improving security (Whitney, Adam, Manicom & Lasserre, 2018). However, China uses a pragmatic strategy to explore the global and regional energy market that will benefit its citizens now and in the future.
China’s ambitions in the Arctic are focused to extract energy, and the Chinese leaders organize events with native leaders from the Arctic region to discuss opportunities for economic developments. In all discussions or events organized by Chinese leaders with politicians from the Arctic, China targets convincing local people to extract oil and get other raw materials for their developing industries. The role of China in the Arctic has developed its economy and survey made at the end of 2017 revealed that China has the largest economy globally. Economic prosperity experienced in China is as a result of its focus in oil and other raw materials which are sources of energy. The procurement of affordable commodities is a global priority for Chinese investors (Whitney, Adam, Manicom & Lasserre, 2018). Therefore, the situation of China in the Arctic region is to acquire affordable products that will benefit its citizens and maintain its relations with foreign investors from US and United Kingdom. In 1993, China while still, a renowned state in the Arctic used pragmatic strategy to explore African regions and its efforts made it an active marketer of oil in the arctic region. Developing the Chinese energy industry after taking an active business role in Arctic region indicates that China is focused on avoiding economic fluctuations in Arctic region.
China is the cures territories in Arctic region to protect oil fields and gas reserves until they mature. While importing oil, China ignores the seaways controlled by the US navy and uses routes in the Arctic which are less prone to insecurity. Therefore, most of the secure reserves China depends on for exportation and importation purposes are in the Arctic, and this explains why China is focused on working with Arctic states. The grand strategy by Chinese people helps them behave appropriately in the Arctic region (Whitney, Adam, Manicom & Lasserre, 2018). Chinese investors behave well in their coastal seas and when exploring Arctic regions to maintain their reputation. The economic order of China is currently adopted by Arctic states, and any effort to work with Chinese investors in the Arctic involves the adoption of their grand strategy. Grand strategy is concerned with product quality, technological innovation, environmental protection, and economic efficiency.
In the Arctic, China’s principle interests include shipping, extraction of resources, scientific research, and evaluation of climate change. Before China organized to coordinate with international powers, it first worked with leaders from different regions in the Arctic. Therefore, global economic systems found in Arctic were in some ways influenced by the Chinese investors who had explored the region to protect their maritime and territorial boundaries in East Asia while in East Asia, China focused on extracting affordable raw materials for use in developing their industries (Whitney, Adam, Manicom & Lasserre, 2018). Currently, China is viewed by several leaders in the Arctic as a multilateral country which focuses on issues of food security, environmental protection, and post-disaster reconstruction. Arctic region is covered by deserts, and lack of disaster reconstruction measures increases the health risk of the local people. Chinese government actors who are concerned with the Arctic Affairs include Cheng and Wang who were past leaders and were concerned with the foreign relations of the Chinese government. The concern of China in Multilateral institutions influenced its operations in the Arctic region. Having a grand strategy directs Chinese investors to create business relations in the Arctic and ensure principle interests like environmental protection are catered for.
Why Observe the Outcome of China’s Rising Demand
China’s rising demand in the North Pole is after using Arctic resources to develop its economy and preserve them for future benefits. China is viewed as the country with the most apprehensive Arctic ambitions. China is still improving its reputation and increasing the demand for raw materials in the Arctic by the help of its powerful communist dictatorship. The outcome of economic prosperity witnessed in China is therefore after the country explored the Arctic region with the aim of resource extraction and need to change its status from a net exporter to largest importer in the world. It was in China that state-owned enterprises were first prioritized to support economic growth. Largest state-owned oil companies in the Arctic were funded by the Chinese government to help increase the demand for Chinese operations in the Arctic region. In 2013, China released $53.3 billion to support rapid growing industries in the Arctic and transform imports and exports to various states in the Arctic region. China did not start investing in State Owned Enterprises in 2013. For instance, $8.2 billion was released by the government of China to support SOEs in 2005 (Whitney, Adam, Manicom & Lasserre, 2018). As China supports developments of industries in the Arctic and other developing regions, it exploits the remaining gas, minerals, and gas for developing Chinese-owned projects. Arctic resources, therefore, played an important role in attracting more leaders in East Asia to coordinate in projects that develop the economy.
The development of Canadian policy was an outcome after Canadians developed more interests in China’s resource strategy. China over the years had an interest in developing Arctic and Canada after a while also needed recognition as a factor in Arctic development. However, China continues to manage the world-class arctic resource and is guided by its grand strategy. Canadian policy aims at competing with China to regulate commodity prices in the Arctic region. Canadians claim that if China balances the prices of all commodities, capital outflows will reduce and end up becoming less beneficial to residents in Arctic regions. Therefore, the Canadian policy was to convince several states in Arctic region to exclude China from the business of the Arctic coastal states claiming that China has an aim of exploiting all minerals and natural resources in Arctic region (Whitney, Adam, Manicom & Lasserre, 2018). However, Canada did not succeed in preventing operations of the Chinese government in Arctic region because China earlier created a good reputation with Arctic states, helping them invest in their local industries.
Resource development in the Arctic region was the main target of the Canadian policy. However, China through a grand policy convinced several investors in Arctic regions to work together and develop industries, especially along the Arctic coats. Canada in the past aimed at expanding foreign investments ignoring the local business in Arctic regions and such weakness makes Chinese investors remain more trustworthy in their investments in the Arctic region. After Canada realized the importance of Chinese State-Owned Enterprises, it agreed to form partnerships that will ensure the two countries equally participate in development agendas of Arctic region (Whitney, Adam, Manicom & Lasserre, 2018). Some of the areas China and Canada were to coordinate is in developing better manufacturing industries and in discussing the prices of commodities to prevent inflation.
In the Arctic region, China remains as the best investment partner for the government allocates funds to benefit smaller investors who operate around the Arctic coastal states. Some of the Arctic resources that China and Canada target include gold, zinc and other minerals like the natural gas and oil. China has plenty of industries to process minerals acquired in different Arctic regions. China explores different parts of the world to improve its mining sector (Whitney, Adam, Manicom & Lasserre, 2018). Chinese presence in the North Pole is dependent on the mining industry which relies on minerals extracted from local regions in Arctic states. Canadian policy ensures that China and Canada invest in energy industry together to ensure they benefit from Arctic trade. Canada in modern days is copying from Chinese investments. For instance, Canada has expanded mining operations in Greenland as an effort to develop its economy and compete with mining corporations from China like the Jiangxi Union Mining. Canada over the years has faced difficulties as it tried to compete with China in extracting minerals in the Arctic region. As a result, Canada turned its attention to Greenland and focused on full-scale mining.
Why Canada and China Purpose a Particular Policy
Canada developed a policy to compete with China in mining operations in the Arctic region. However, China had strategies like the grand strategy and that directed the country to focus in developing East Asia especially in Arctic coats because Chinese investors had earlier identified the strategic position of the Arctic coast in international trade policies help a state empower its strategies for current and future benefits (Olga, Akexeeva & Lasserre, 2018). Policies by China to the Arctic region were also to protect the country’s boundaries and secure the maritime regions which had been occupied by European colonialists.
The policy developed by the Chinese government also served to cater for economic prosperity in the Arctic region whereby all resource extraction processes were to be guided by the government of China. The Chinese policy was also to change the economic status of the country and ensure importation and exportation processes are diversified. In the 20th century, China started state-owned enterprises that helped Chinese residents and local people in Arctic coastal areas benefit from the economic growth (Olga, Akexeeva & Lasserre, 2018). The advanced state-owned oil companies operating in the Arctic were started by the government of China after policies were implemented pressing on economic prosperity and the need to improve the living standards of Chinese residents in the present and the future.
Canadian policy was not as successful as that of China because it targeted to compete with China in the extraction of minerals in the Arctic region but failed. However, the policy had a purpose of developing the Canadian economy, providing job opportunities for Canadian residents and organizing on how Canada could partner better with several states in Arctic region (Olga, Akexeeva & Lasserre, 2018). The purposes of state policies can further be explained by the use of structural functionalism theory. The structural functionalism theory advocates for the macro-kevel orientation whereby an individual or an organization organizes unique social strategies which are utilized for developmental purposes. The theory advocates for cohesiveness in a system. For instance, grand strategy by Chinese residents in the Arctic and Canadian Policy were to focus on cohesiveness to ensure all of their mining operations run smoothly with minimal weaknesses. Therefore, Structural functionalism does not encourage failures or giving up in a particular project. China targets completing its projects successfully and Canada should follow the same example, and the route to come up with effective projects starts with the development of good policies.
Conclusion
In conclusion, China’s grand strategy in the Arctic has helped the country explore potential mining sites and start the process of exploiting minerals which are beneficial to its economy. China has unmeasurable ambitions concerning Arctic regions which started earlier and have influenced Canada to be anxious about such ambitions which have pushed for several developments both in local and international investments. The Chinese government has witnessed an expansion in its economic and political systems after adopting policies and change strategies that currently match with international market demands. China with its grand business strategy has promoted business operations both in regional and international level to ensure its demand rises among the local and international investors. Grand strategies in China adhere to demands of open-door policy that ensure all business conducted inside or outside Chinese boundaries are accepted by international entrepreneurs and diplomats working with foreign embassies under the department of trade. China ensures there is always a Peaceful international business environment created within its boundaries to help the country meet international business standards and be under Arctic regulations. In the Arctic region, Canada and China work with Russian investors to ensure all minerals extracted locally are exported at a better price. In China, the rate of economic development is high, and this allows the government to invest in foreign regions like Africa and Latin America to support them in developing their local industries. In every country, policies serve the role of influencing economic developments and guide investors to be focused on development agendas while exploring new business opportunities. The structural functionalism theory is applicable in explaining the situation of Chinese investors as they organize business operations in the Arctic region.
References
Olga V., Akexeeva, & Lasserre F. (2018). The Snow Dragon. China’s Strategies in the Arctic.
Whitney L., Adam L., Manicom L., & Lasserre F. (2018). Situating the Arctic in China’s Strategy. University of Calgary Press. Retrieved from https://www.jstor.org/stable/j.ctvf3w20h.7
Whitney L., Adam L., Manicom J., & Lasserre F. (2018). China’s Arctic Ambitions and What They Mean for Canada. Arctic Resources and China’s Rising Demand. Retrieved from https://www.jstor.org/stable/j.ctvf3w20h.10