Not at any cost
When explaining why only a small portion of Chinese ambitions and plans for investments in the Arctic have been realized, the researchers point to a wide range of complex reasons, including geopolitical and domestic political obstacles, security concerns, environmental concerns, as well as restrictions on the mining of ore containing uranium.
“In addition, Chinese companies will be concerned with the economics of the project, and there are examples where Chinese investments seem to have been shelved because of economic reasons,” Visiting Researcher Edstrøm adds.
“Have awoken to the risks”
Co-author and professor P. Whitney Lackenbauer at Trent University says the findings also suggest that the seven like-minded Arctic states have awoken to the risks associated with various forms of foreign direct investment in the region.
“[These states] have responded more decisively and effectively than most popular commentary might lead us to believe,” Lackenbauer says.
In closing, Edstøm also highlights that many Chinese investments are economically significant for their host communities, and that Arctic states must distinguish between projects that pose a security risk and those that are benign and desirable.
“We aren’t claiming that there is no cause for concern, but those debates must be rooted in reality,” Edstrøm reiterates in closing.