China has released its Arctic Policy. The document draws a picture of how China views the economic possibilities the region offers. With this, China has vowed to actively participate in Arctic affairs as a “near-Arctic State” and a major stakeholder in the Arctic.

As per the policy, specifically, China will mainly focus its attention on four aspects:

First, China will participate in the development of Arctic shipping routes which are composed of the Northeast Passage, Northwest Passage, and the Central Passage. Noting that “the Arctic shipping routes are likely to become important transport routes for international trade” as a result of global warming, China plans to build a “Polar Silk Road” by developing the Arctic shipping routes. To that end, China will encourage its enterprises to participate in the infrastructure construction for these routes and conduct commercial trial voyages.
Second, China aims to participate “in the exploration for and exploitation of oil, gas, mineral and other non-living resources” in the Arctic. However, the white paper also places a particular emphasis on nontraditional energy sources.
Third, China will start to utilize fisheries and other living resources and participate in conservation, since “the Arctic has the potential to become a new fishing ground in the future.” In recent years, Chinese fishermen have been sailing farther and farther abroad in search of fertile fishing grounds; including, unfortunately, illegal fishing.
Fourth, China will develop Arctic tourism, which the paper described as “an emerging industry.” China will support and encourage “its enterprises to cooperate with Arctic States in developing tourism in the region” and conduct “training for and regulates Chinese tourism agencies and professionals involved in Arctic tourism.”

Concerns:

Although Beijing maintained that China’s Arctic policy is based on the principle of “respect, cooperation, win-win results and sustainability,” some analysts have raised concerns over China’s increasing prominence in the region.

Background:

China is an important stakeholder in Arctic affairs. Geographically, China is a ‘Near-Arctic State’, one of the continental States that are closest to the Arctic Circle. The natural conditions of the Arctic and their changes have a direct impact on China’s climate system and ecological environment, and, in turn, on its economic interests in agriculture, forestry, fishery, marine industry and other sectors.

Facts for Prelims:

The land territories in the Arctic cover an area of about 8 million square kilometres, whose sovereignty belongs to Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US. The Arctic Ocean has an area of over 12 million square kilometres, in which coastal and other countries share maritime rights and interests according to international law.

Atal Pension Yojana (APY)