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Introduction As polar sea ice melts, more non-Arctic states are turning their attention to the
Arctic with both interest and concern. The opening up of new shipping routes and
access to resources including oil and gas offers economic potential, however, melting
sea ice also contributes to global warming and rising sea levels which will have a global
impact. Unfortunately accessing the comic potential in the Arctic, transportation and
resource extraction in particular, and protecting the Arctic environment are two goals
which often conflict. It is Canada’s best interest to work towards finding a way to
balance the economic development of the Arctic and environmental protection in the
region; Canada’s acknowledges this in current Arctic domestic and foreign policy.
Canada must balance these ambitions with the need to maintain and protect its
sovereign territory. Growing interest in the Arctic from non-Arctic states has the potential
for collaboration or conflict and identifying these opportunities and risks is essential for
economic development, environmental protection, and sovereignty.
China’s White Paper on Arctic policy is the most recent development emerging
from China’s growing interest in the region. China is not the only non-state to show such
an interest, but its status as a world power and the size of its economy make it arguably
the most noteworthy. The Arctic region already has two superpowers, the United States
and Russia, and a third powerful state could diminish Canada’s influence in the region.
Conversely, China could be a powerful ally if China supports Canada in disputes in the
region. Yang argues that based on China’s economic and political power China can play
a “leading and coordinating role in peace-keeping, rationally handling contradiction
between state sovereignty and the common heritage of mankind, balancing between
interests of the Arctic countries and those of the non-Arctic countries, and protecting the
fragile Arctic environment and common home of mankind.”1. Based on the Arctic
policies of Canada and China there are overlaps with regards to policy goals and
principles, however, there is also a potential for disputes. Identifying these opportunities
for cooperation and preparing for potential disputes with China is essential for Canada’s
Arctic aspirations. This paper explores to opportunities for cooperation; the Port of
Churchill, which could benefit from Chinese investments, and scientific research.
1 Yang 46, 2015
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Policy China published a “white paper” to “expound its basic positions on Arctic affairs”
and “to elaborate on its policy goals, basic principles and major policies and positions
regarding its engagement in Arctic affairs.”2 As a non-Arctic state China acknowledges,
they have no rights to territorial sovereignty in the region but claims other rights
including rights to research, navigation, and resource exploration and exploitation. The
white paper claims China is an “important stakeholder in Arctic affairs” and states the
goals of China’s Arctic policy are “to understand, protect, develop and participate in the
governance of the Arctic, so as to safeguard the common interests of all countries and
the international community in the Arctic, and promote sustainable development of the
Arctic”.3 The policy paper claims China is committed to “the existing framework of
international law” and “addressing various traditional and non-traditional security threats
through global, regional, multilateral and bilateral mechanisms, and to building and
maintaining a just, reasonable”.4
In 2010 Canada published the Statement on Canada's Arctic Foreign Policy
which put a strong emphasis on exercising sovereignty as the “first and most important
pillar towards recognizing the potential of Canada’s Arctic.”5 This position is supported
by academics, including Hubert who argues “Canadian Arctic sovereignty is a
requirement to allow for Canadian Arctic security.”6 According to the 2010 statement
Canada envisions the Arctic as a “stable, rules-based region with clearly defined
boundaries, dynamic economic growth and trade, vibrant Northern communities, and
healthy and productive ecosystems.” Aside from exercising sovereignty, Canada’s
Arctic policy commits to promoting economic and social development, protecting the
Arctic environment and empowering the peoples of the North by improving and
devolving governance.
The Arctic policies published by Canada and China suggest multiple
opportunities for collaboration between the two states. Both states emphasize the
2 State Council Information Office, 20183 State Council Information Office, 20184 Ibid5 Government of Canada, 20106 Huebert 196, 2011
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importance of adhering to international law and respecting the sovereignty of the Arctic
states. Economic and social development of the region is also in the interest of and a
priority or both states according to their respective policies. Protecting the Arctic
environment is another area where the two policies overlap. Identifying these
commonalities is probably the easiest part of developing Arctic relations, how the two
states turn these words into actions will be more challenging.
The Port of Churchill: History and ContextOver a thousand kilometres north of Winnipeg, on the coast of the Hudson Bay,
there is a town that is home to 899 Manitobans and what used to be Canada’s only
Arctic deep-water port.7 Today Churchill faces many of the problems communities in
Canada’s North are struggling with; “inadequate infrastructure and resources needed to
maintain a functioning city in this climate; social problems resulting from isolation from
other communities; lack of access to health care and parental care; alcohol abuse; and
perceived social discrimination against indigenous populations.”8 All of these issues
must be addressed if Canada wishes to achieve the governments “vision for the north in
which self-reliant individuals live in healthy, vital communities, manage their own affairs
and shape their own destinies.”9
The harbour facilities in Churchill have been “occasionally utilized” since the 17th
century, and in 1670 the Hudson’s Bay Company established a trading post.10 In the
19th century, the idea of a deep-water port on the Hudson Bay was “conceived as a
great nation-building enterprise, a more direct route to Europe, and a strategic gateway
giving Canada an indisputable claim to the Arctic.”11 The townsite of Churchill itself was
“planned as an essential part of the port pattern”, however, indigenous peoples had
previously lived in the area.12
7 Stats Can8 Michel Montsion 308, 20159 Government of Canada 200910 Shrode 54,11 Scott Gilmore; Macleans12 Shrode 56, Michel Montsion 306
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Between the 1950s and 1980s shipments of grain from Churchill averaged at
573,000 tonnes per year, however, these numbers began to decline and continued to so
until the port’s closure in 2016.13 In 1937 Shrode claimed it was “improbable” that the
township of Churchill would ever be more than a “lonely frontier settlement” but in the
1960s Churchill experienced a natural resource extraction boom and a demographic
boom.14 Between 1961 and 1966 population growth reached almost 20 percent and,
port traffic was expected to increase by 40% by 1940.15 Unfortunately for the people of
Churchill, these predictions were incorrect and eighty-five years after the first shipment
of wheat left the port in 1931 the port was shut down and Canada lost it’s only Arctic
deep-water port.
The Port of Churchill and the Polar Silk RoadIn 2013 a Federal-Provincial Task Force identified a number of opportunities and
challenges facing Churchill. The report identified the opportunity to increase the volume
and variety of grain shipped through the port. To make the most of this opportunity
further investment in infrastructure and according to the report these investments could
come from international sources. The report goes on to say:
The end of the CWB monopoly has seen the emergence of new international
grain companies in Canadian markets. Many of these players do not own
assets on the West Coast or in the Great Lakes system, giving rise to
potential partnership opportunities with OmniTRAX, especially if their
business interests fall within the Churchill catchment area. As well, there
exists the potential for these players to construct new storage and handling
facilities at the port. The additional capacity could lead to increased exports
of bulk agricultural commodities.16
When the report was published, OmniTRAX owned all the handling and storage
facilities. The report claimed that if other companies invested in handling and storage
facilities “the owners would have a vested interest in shipping through the Port on an
13 Michel Montsion 30614 Shrode, 54, Michel Montsion 30815 Michel Montsion 30816 Federal-Provincial Task Force on the Future of Churchill 7, 2013
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ongoing basis rather than opportunistically.”17 A barrier to such investments, according
to the report, was the need for new investors to negotiate with OmniTRAX or build on
land outside of the privately-owned port and the “need to negotiate agreements for
access to both rail and Port services.” Now that OmniTrax has closed its force there is
no need to negotiate with OmniTRAX and even more of a need for investments.
Although this report predates the closure of the port by three years, it suggests an
openness to foreign investments in the Port of Churchill from the federal and provincial
governments.
The need for investment in transport infrastructure in Churchill was recognized
long before the 2013 Federal-Provincial Task Force report. In a 2002 study on the
sustainable development of Churchill Newton et al. claimed; “If the Hudson Bay Port
Company is to be sustainable in the future, it must increase its shipping.”18 Newton et al.
identified transportation and tourism as important sectors of the Churchill economy and
argued the both would benefit from improved port infrastructure.19 The Manitoban
government had previously shown interest in securing Chinese investments in the Port
of Churchill. In 2011 the Manitoban government met with consul general and other
officials from the Chinese consulate in Toronto and gave them a tour of the town and
port. The chairman of the board of the Churchill Gateway Development Corporation
Lloyd Axworthy said the Chinese officials were “interested.”20 While this visit did not
result in any Chinese investments in the port, it shows some degree of interest and
support from both governments.
China intends to “jointly build a "Polar Silk Road” in order to “facilitate
connectivity and sustainable economic and social development of the Arctic.”21 China
has already made a number of investments in road, rail and shipping infrastructure,
across North and Central Asia to facilitate this project. The Khorgos-Aktau railway,
which connects the Chinese city of Khrogos on the China-Kazakstan border to the
Caspian Sea port of Aktau, received investment from the Kazakhstani and Chinese
17 Ibid18 Newton et al. 28519 Ibid 20 Rabson, np21 State Council Information Office, 2018
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governments.22 In 2015 the state-controlled China Railway Group signed a contract with
Russia's state-owned JSC Russian Railways to build a 770 kilometer high-speed rail
between the Russian cities of Moscow and Kazan.23 China also played a significant role
in the development of the China-Kyrgyzstan-Uzbekistan railway.24 The Khrogos
Gateway, “a dry port on the China-Kazakh border that is seen as a key cargo hub on
the new Silk Road”, received more than $600m over five years from China’s Jiangsu
province.25 China has committed to and followed through with its vision to invest in the
Polar Silk Road, including investments in infrastructure in other states.
China is very open to investing foreign ports and harbours to further it’s economic
and political goals. The Financial Times and Kings College London conducted a study
of China’s growing dominance of the sea and naval transportation. China owns or has
invested in ports on every continent.26 In 2010 one-fifth of world’s top 50 container ports
“had some degree of Chinese investment”, by 2015 this number had risen to two thirds.
Ports which have received Chinese investments have handled 67 per cent of global
container volumes.27 The furthest North any Chinese company has ventured with their
investments is Stockholm, and no investments have been made in Arctic ports.28
COSCO, a state-owned Chinese shipping company, “expressed strong interest in
developing an Arctic deep-water port on the Northern Dvina River.”29
The Port of Churchill and the natural resource opportunities in the surrounding
area may be an attractive investment opportunity for China. It would connect the Polar
Silk Road to North America, reducing the time and cost of shipping between the two
continents. Shipping times between Canada and major ports in Asia and Europe would
be significantly reduced by using the Northwest Passage. Using the Northwest Passage
would reduce shipping times by over 7,500km between Rotterdam and Yokohama,
3,500km between Shanghai and Rotterdam, and 3,850 kilometres between Shanghai
22 Farchy, Kynge, Campbell and Blood (How China rules the waves), 2017 23 Farchy, Kynge, Campbell and Blood (2016)24 Ibid25 Ibid26 Farchy, Kynge, Campbell and Blood (2017) 27 Ibid28 Ibid29 Sevunts, np.
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and New York.30 China predicted that 5 per cent of China’s international trade would be
using Arctic routes by 2020.31 Stephens argues that China “will not only want to play a
role in determining the future of Arctic shipping lanes but will demonstrate its capacity to
do so.”32 Chinese investments in the Port may also improve Chinese-Canadian relations
and help establish a partnership in the Arctic. Stephens argues the Northwest Passage
trade route has the potential to “alter, and improve, the course of Canada’s relations in
the Asia-Pacific region.”33
The success and growth of Chinese shipping companies relies on travel through
strategic chokepoints and, according to the director of the Quebec Council of
Geopolitical Studies Frédéric Lasserre, China may have concerns about the U.S.
blocking their access due to a political incident or conflict.34 China has run into a number
of conflicts with Asian states over their naval actions and Ping and Lanteigne claim that
these conflicts are further incentives to pursue Arctic shipping.35 Lasserre claims
China’s interest in the Arctic is one way for them to “diversify its portfolio of trade
routes.”36 Byers sees potential for Chinese investments in resource industries in Russia
or Canada’s Arctic lands.37 The Chinese-owned Nunavik Nickel Mine in Quebec shows
China’s openness to investing in Canada’s North.38
The Port of Churchill, China and National Security While foreign investment could help develop infrastructure in the North, it must
be done with caution with regards to national security. China has not invested in ports
around the world for purely economic motivations; there is an “inherent duality” to
China’s investments according to Abhijit Singh, a senior fellow at the Observer
Research Foundation in New Delhi. Singh claims China’s investments “are ostensibly
commercial but quickly upgradeable to carry out essential military missions.”39
30 Stephens, 331 Stephens, 432 Stephens, 633 Stephens, 134 Sevunts, 2017 35 Ping and Lanteign 836 Sevunts, 201737 Sevunts, 201738 Sevunts, 201739 Farchy, Kynge, Campbell and Blood (2017)
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In 2012 state-owned China Merchants Group invested nine billion dollars in the
Port of Djibouti. These investments funded a variety of infrastructure upgrades including
“the construction of a liquefied natural gas terminal, a wharf for livestock and a trade
logistics park.”40 Four years later Beijing began the construction of an overseas military
base in Djibouti.41 A spokesperson for China’s foreign ministry claimed the naval base
was “necessary to have nearby and efficient logistical support” for Chinese vessel
deployed in the region.The Port of Gwadar in Pakistan is a similar to the Djibouti case.
The port is owned, financed and built by China and, although there is no plan for a
permanent Chinese naval base, “Chinese traffic both commercial and naval will grow to
this region”, according to a senior Pakistani diplomat.42 Research conducted by the
Financial Times identified seven ports that China is using as “dual purpose” ports for
commercial and naval purposes, four of these were “confirmed” and three were
“possible.”43 Aside from Gwadar and Djibouti, the other confirmed dual purpose ports
are located in Seychelles and the South China Sea atolls. China has also acquired a
controlling stake in one of Europe’s largest ports, Port of Piraeus in Greece and has
“signalled a merging of commercial and strategic agendas”, in 2015 the port hosted a
Chinese warship.44
It is reasonable for Canadians, especially those living in the Arctic, to be
concerned about the national security implications of foreign investment. Although the
port was previously owned by an American company, the nature of China’s political and
economic system and the pattern of behaviours with regards to Chines investment and
ownership of ports represent a different set of concerns than the previous owners.
These concerns should be taken into account by both the federal and provincial
governments. Despite these concerns, there is reason to believe that investment in the
Port of Churchill is unlikely to follow the pattern of the ports of Gwadar, Piraeus and
Djibouti. Pakistan, Greece and Djibouti have weaker economies than Canada, making
foreign investment a more attractive option even if it may potentially compromise
national security. The Port of Churchill is located on Hudson Bay which is considered
40 Ibid41 Ibid42 Farchy, Kynge, Campbell and Blood (2017) 43 Ibid44 Ibid
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Canadian internal waters by “historic title.” The ports of Gwadar, Piraeus and Djibouti
are closer to international waters which makes them more useful for strategic or naval
purposes. Canada has made it explicitly clear through their existing Arctic policy that
protecting and promoting Canadian sovereignty is a fundamental part of Canada’s
Arctic policy. Similarly China has committed to respecting the sovereignty of the Arctic
states.
If Canada accepts foreign investment in the Port of Churchill, Chinese or
otherwise, Canada can maintain it’s sovereignty by investing infrastructure that
promotes Canadian sovereignty. Stephens argues that “for Canada to play a meaningful
role with Asia based on its Arctic presence, it will need to invest in building the
infrastructure in the North that will allow it to exercise sovereignty through providing vital
services like meteorological forecasting and search and rescue.”45 These sort of
investments are necessary for the safety and wellbeing of Arctic communities
regardless of the status of the Port. Stephen acknowledges that Canada cannot
influence the “rate of sea-ice reduction or the weather, [or] the geography” of the
Northwest Passage but they can “make the necessary investments so that human
infrastructure is in place to complement whatever changes nature may bring.”46 These
sort of investments are not just needed to protect Canadian sovereignty but also
contribute to other aspects of Canada’s Arctic vision including promoting economic and
social development, protecting the environment, and improving governance.
Alternative Opportunities of Cooperation The Port of Churchill is not the only opportunity for Canadian-Chinese
collaboration in the Arctic. There are a number of areas of research which may interest
both states including climate change, environmental protections, natural resources and
transportation feasibility. Both states are involved wit the Arctic Council and have
acknowledged it’s importance in their respective policies. Given Canada’s history of
using international organizations to promote Canadian foreign policy, peace and
diplomacy the Arctic Council is another opportunity for Canadian-Chinese cooperation.
45 Stephens 1446 Ibid, 15
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China has acknowledged the importance of understanding how climate change
will effect the Arctic and protecting the Arctic environment in it’s Arctic Policy and there
is an Arctic element to China’s climate policy. According to Heggelund “an Arctic
dimension exists in domestic climate policy, although the link is not direct.”47 A sizeable
body of scientific literature shows “the Arctic region as having great influence on China’s
climate, environment, agricultural production, as well as economic and social
development.”48 Many of Asia’s major cities are located along coastlines or on river
deltas which makes them particularly vulnerable to sea level rising.49 The Organization
for Economic Co-operation and Development (OECD) published a report which
identified the top 20 port cities that will be affected by coastal flooding by 2070 and four
of these were in China.50 Although melting sea ice is a one of the reasons for China’s
growing interest in the Arctic as it opens up new shipping routes it may also create
problems for China. It is in all states best interests to have a better understanding of
how the melting sea ice may affect the global climate and therefor there is an incentive
for China to engage in climate change focused research.
Engaging with China on research could help both states and the region at large
better prepare for future challenges and is a likely be less controversial then acceptation
Chinese investments in Canadian infrastructure. Goodsite et al. argue that it could
promote peace in the region because “where there is scientific collaboration, there is
less risk of military conflict and that the Arctic.”51 Goodsite et al. claim that research
centres can minimize “conflict potential in the Arctic under conditions of a triad of
climate change, globalization and geopoltics.”52 Goodsite et al. specifically point out the
importance of engaging with Asian states on Arctic research, arguing that “Arctic
science plays an important role in integrating rising Asian powers in the region in a non-
conflictual and non-provoking way.”53
China’s history of Arctic research predates both it’s Arctic Policy and joining of
the Arctic Council. Scientific research has made up most of China’s involvement in the
47 Heggelund et al,, 14348 Ibid,14049 Ho, 3550 Ibid, 3751 Goodsite et al. 64552 Ibid 64353 Goodsite et al. 648
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Arctic and the majority of that research has focused on environmental issues China’s
environmental research has focused on aerial physics, climate change, ecology, and
marine aspects.54 In 2004 they established the Yellow River Station in Svalbard and
China has complete five successful multidisciplinary research expeditions.55 The State
Oceanic Administration launched a research project in 2007 which focused on several
areas including climate change and the 12th Five Year Plan released by the
government included a “special project of comprehensive investigation and evaluation
of the Antarctic and Arctic environment, the largest study in China’s three-decade
history of polar studies.”56
China’s history of Arctic research has included a considerable amount of
collaboration with other Arctic states, intergovernmental organizations and non-
governmental organizations. As a non-Arctic state a certain amount of cooperation is
often necessary for China to engage in research; permission from a coastal state is
necessary for marine science research according to the UNCLOS (Art. 238). At the
2011 International Berlin Conference on Arctic issues, which focused on Arctic Science,
International Law and Climate Change, the Executive Director of China Institute for
Marine Affairs and Judge of the International Tribunal for the Law of the Sea, Dr, Gao,
discussed China’s perspective on marine science research (MSR). Dr. Gao recognized
the importance of the international law provided by UNCLOS but also emphasized the
importance of access to MSR to non-Arctic states.57 In addition to the cooperation
necessary under international law China and Chinese researchers has been invited to,
joined, and contributed to various intergovernmental and non-governmental
organizations with a focus on research. In 1996 China joined the Arctic Science
Committee, and NGO “composed of international science groups participating in Arctic
scientific research” and in 2005 they were invited to join Ålesund Science Managers
Committee, an organization “enhance cooperation and coordination between research
activities in Ny-Ålesund.”58
54 Heggelund et al. 14155 Ibid, 14256 Ibid, 14357 Wasum-Rainer, 15458 Ibid, 144
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The opportunities for cooperation on environmental research are not tied to a
specific location like the Port of Churchill, however, Churchill already has a research
community and facilities available. The Churchill Northern Studies Centre, founded in
1976, is an independent, non-profit research and education facility. The centre provides
accommodation, logistical support and educational programming to researchers. In
other Arctic states local communities that have opposed Chinese investments in
commercial projects have been open to engaging with China on research. Nubo Huang,
a Chinese real estate developer, expressed an interest in developing a tourist resort in
North-East Iceland which was met with “enormous uproar in Iceland and wild
speculation of covert Chinese naval installations.”59 In the same region the two states
are “cooperating harmoniously on establishing the China-Iceland Aurora Observatory.” 60 Sino-Canadian research collaboration based out of Churchill could increase and
diversify employment opportunities. If Churchill becomes a home for international
collaboration on research the increase in population and infrastructure development
necessary to facilitate research could contribute to the local economy.
(Working) ConclusionThe growing interest of non-Arctic states in the Arctic has caused some concern
amongst Arctic states. China has not been exception to this and has arguably caused
the most concern. A significant amount of Canada’s territory is in the Arctic, it is
important to Canada’s national identity and it is home to many of Canada’s indigenous
population; given all these factors the security, sustainability and wellbeing of the Arctic
is incredibly important to Canada. As more states, and states more powerful than
Canada, turn their attention to the Arctic Canada must be prepared. In December 2016
Justin Trudeau announced a new Arctic Policy Framework would be developed in the
upcoming years. In order to develop this framework the federal government is engaging
in discussions with with Indigenous, territorial and provincial partners. One of the goals
of this process is to identify opportunities to for partnerships with a variety of groups,
including non-Arctic states.
59 Goodsite et al. 64960 Ibid
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Given China’s interests in the Arctic and Canada’s opens to working partnering
with non-Arctic states Canada should remain open to the possibility of Chinese
investment in Canadian Arctic infrastructure. Canada must do so with a a degree of
caution given China’s pattern of blurring the lines between economic and strategic
developments. Any foreign investment, Chinese or otherwise, should only be accepted
if it is not a risk to national security or a threat to Canada’s sovereignty. Local
communities, indigenous peoples and the environment should all be considered when
considering foreign investments.
Another way in which Canada could engage with China in the Arctic is through
research and environmental protection. This less controversial opportunity would not
just benefit the two states but could help all Arctic and non-Arctic states better
understand the Arctic, climate change and environmental protection. Although pursuing
this opportunity may be less likely to face pushback the same considerations should be
taken into account. National security and Arctic sovereignty and the needs of local
communities and indigenous peoples should be considered when deciding how to
pursue scientific cooperation.
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Government of Canada; Indigenous and Northern Affairs Canada. (2018, February 19). Toward a new Arctic Policy Framework. Retrieved from https://www.aadnc-aandc.gc.ca/eng/1499951681722/1499951703370
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Stephens, H. (2016). The Opening of the Northern Sea Routes: The Implications for Global Shipping and for Canada’s Relations with Asia. In The School of Public Policy Research Papers. University of Calgary Press.
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