Grayling Blog

Arctic ice melting opens up new trade route for China

Posted on 10.03.2010 by Unknown User

A different kind of thinking for a different kind of world. China has shown us what this means. The most exciting economic news of this spring comes from Oslo. According to the Stockholm International Peace Research Institute, China is preparing to navigate and use the Arctic this summer, revolutionising long established global trading routes.

The melting of the ice in the North Sea has opened up new natural resources as well as the new shipping route. Indeed, 30% of worldwide undiscovered gas cells are said to be there, in addition to oil and minerals such as gold, silver, nickel, chromium, titanium, tungsten, carbon and diamonds.

The journey from Shanghai to Hamburg which would usually use the Suez Canal will now be reduced by 6400 km. Chinese experts and Linda Jakobsen, speaker and author of „Wer die arktische Route kontrolliert, kontrolliert die Weltwirtschaft“ (Whoever controls the arctic route-controls the world economy) all agree that this is a vital step.

Trade routes as the backbone of the economy

Controlling the trade routes has always been the greatest economic and geopolitical challenge for the big industrial powers. Nothing has changed since the end of the 19th century. With the construction of the Suez Canal in 1866, Europe was connected to India and Asia. It linked the Mediterranean with the Red Sea and shortened the sea route between Europe and India by a quarter. France and especially Great Britain were the biggest economical profiteers of this new sea route. The construction of the Panama Canal, completed in 1914 under American sovereignty, shortened the sea route from New York to San Francisco from 30.000km to approximately 10.000km.

Now it is China’s turn. The new Arctic Strategy changes the world map dramatically. However, this will take some time to come to fruition as, according to Jakobsen, China is keen to develop the new trade routes in cooperation with the Arctic states. China is equipped with the necessary funds; but deepwater technology should come from the West. This opens up totally new geopolitical Joint-Ventures.

Smaller Arctic Council members and Russia in particular, will have an opportunity to lay the foundations for a unique relationship with China by engaging Chinese officials and academics on Arctic issues—ranging from climate change and maritime rescue operations to commercial shipping routes and resource exploration.