Reykjavík Grapevine - 04.05.2012, Page 22

Many people speak of China and Ice-
land as if China’s interest in Iceland
is only a few years old. This belief is
forgivable—most China/Iceland rela-
tions have been decidedly low-key,
with two recent exceptions: former
Chinese President Jiang Zemin’s 2002
visit, during which members of Falun
Gong—both visiting and local—were de-
tained by police to prevent them from
protesting his arrival, and more recently
Chinese businessman Huang Nubo’s
interest in buying land in Iceland last
year, which sparked much controversy
amongst Icelanders.
In fact, relations between the two
countries go back quite a ways—Ice-
land and China established diplomatic
relations in 1971. “Before that there
were no formal relations between the
governments of the two countries,”
Magnús Björnsson, a lecturer at the
University of Iceland who specializes
in China studies, told The Grapevine.
“The Icelandic Chinese Cultural Soci-
ety (KÍM) was established in 1953, and
through that a window was opened
into China. Earlier contacts were only
through personal connections includ-
ing Icelandic missionaries going to
China, beginning in the 1920s.” So the
two countries are not exactly strangers
to each other.
Falun Gong, Amnesty Internation-
al and others have taken issue with
China’s human rights record, and MP
for The Movement Þór Saari made it
a point to ask Foreign Minister Össur
Skarphéðinsson in parliament if he
planned to discuss human rights with
the premier, to which the minister re-
plied, "I consider it quite certain that
at some point during the visit human
rights will be discussed." But what has
made many more Icelanders nervous
about China’s interest in Iceland has
less to do with human rights than it
does with China’s presence in Iceland.
SUSPICIOUS MINDS
Icelanders’ concerns over China’s
presence in Iceland became apparent
in 2011, when Chinese businessman
Huang Nubo offered to pay 1 billion
ISK for land in Grímsstaðir á Fjöllum.
Encompassing 30,639 hectares in
northeast Iceland, it is a place of natu-
ral beauty located near the mountain
Herðubreið, and a popular camping
spot. The fact that the area is naturally
pristine and his intention was to build a
luxury hotel and golf course on the land
set off a great deal of public outrage.
Matters weren’t helped when it came to
light that he had personal contacts with
numerous members of the Social Dem-
ocratic Party in Iceland, which leads
Iceland’s current coalition government.
Diligent Icelandic bloggers dug up
some more dirt on Huang Nubo—in par-
ticular that one of his companies, Bei-
jing Zhongdian Investment Corp, was in
the business of cheating rural Chinese
out of their land for use in tourism, and
that his resume includes working with-
in the Propaganda Department of the
Communist Party of China. Ultimately,
Huang Nubo was denied permission to
buy land in Iceland, as The Ministry of
the Interior pointed out that Icelandic
law prohibits non-Scandinavians from
buying land here. Only days ago, it was
brought to light that municipalities of
northern and eastern Iceland intend
to create a shareholding company, buy
a 70% share of the property, and then
lease it to Huang Nubo over the next
40 years. He has already paid the full
amount in advance.
As a result of this very recent con-
troversy, many Icelanders regarded the
arrival of Wen Jiabao with suspicion.
What does China want with Iceland?
And why is Iceland trying so hard to
build a relationship with China?
“Iceland needs trading partners and
China is a good one—providing all kinds
of goods to Icelanders, most at agree-
able prices,” Magnús says. “In the fu-
ture, China can also become one of the
most important markets for Icelandic
exports like fish and tourism. Iceland
can be important to China by providing
techniques for harnessing geothermal
energy, which is abundant in China but
has not been utilised to any degree so
far. This is very important as China is
taking steps toward more green en-
ergy. China also needs Iceland as a
strategic partner in the Arctic region
when the Trans-Arctic shipping route
becomes an option in transportation
and for future utilisation of natural re-
sources in the Arctic. In that field, the
benefits should be for both parties.”
This last point is an important one.
China is the world’s largest energy con-
sumer, and the United States Geologi-
cal Survey estimates that around 13%
of the world's undiscovered oil reserves
and at least 30% of its gas are buried
under the Arctic Ocean. Also, around
46% of the Chinese gross national
product is linked to shipping, according
to the Journal of Energy and Security.
Melting Arctic ice, and the opening of
new shipping lanes, would be quite a
boon to China.
But getting access to the region
isn’t easy—to get to the Arctic, China
needs to get through the Arctic Council
first.
The Arctic Council is an organisation
comprised of Iceland, Denmark, Nor-
way, Sweden, Canada, Russia, and the
US. Founded in 1996, the Arctic Council
is the gatekeeper of the Arctic—its fo-
cus is primarily on environmental pro-
tection and sustainable development
of the region. Any country that wants
to do business in the region, whether
exploring for oil or building bases of op-
erations, must get the unanimous ap-
proval of the Arctic Council members.
With everything China has to gain in
the Arctic—and every vote on the coun-
cil needed for any kind of development
in the region—it’s small wonder China
should be courting Iceland.
The Chinese embassy’s political
office responded to the Grapevine in
predictably nebulous fashion, saying,
“Iceland and China are good friends
and partners. In the future we expect
to enhance mutual trust, increase trade
and promote people-to-people friendly
contact. Both sides could enhance their
cooperation in a number of fields, in-
cluding: geothermal development both
What does China want with Iceland, anyway?
Friends With Benefits
Chinese Premier Wen jiabao came
to Iceland last month. Arriving with
an entourage of about 100 people,
he was greeted by Prime Minister
jóhanna Sigurðardóttir, and
would later meet with many other
government ministers. He was
given a brief tour of the countryside
and met with the president. While
this would seem par for the course
of any visiting world leader, Wen
jiabao did not just come to check
out Gullfoss and Geysir—China and
Iceland signed six agreements that
could have a profound impact on
Iceland’s future, and also reflect
China’s growing interest in the
polar region.
By Paul Fontaine