Academic touts opportunities for North in China's Arctic ambitions

A business expertbelieves China's ambitious Arctic strategy could bean opportunity for Canada's North.

In January, China released a policy document referring to itself as a "near-Arctic state" and detailing its plans for a "Polar Silk Road" that would develop infrastructure along Arctic shipping routes, which are expected to open up with increased global warming.

These guys have all the money.- Wally Schumann, tourism minister

Edy Wong is an associate dean at the Alberta School of Business andsitson the board of the China Offshore Oil Engineering Company in Canada. Before speaking to the Arctic Indigenous Investment Conference in Yellowknife on Aug. 9, he told theCBC that China's interest in the Arctic could bea chance to raise money for pricey infrastructure.

• China unveils plans for a 'Polar Silk Road' across the Arctic
• What does China's new Arctic policy mean for Canada?

"When we look at the North, the emphasis of the 'Silk Road' on infrastructure is a very important selling point," said Wong.

Closer relations with China could also create a "ready market" for Canadian natural-resource exports, said Wong, who has also consulted for Chinese companies.

Polar Silk Road 'mostly focused on the RussianArctic'

China's policy document, released by the State Council Information Office, also said the country is looking at developing natural resources and fisheries in the polar region, and is interested in increasing Arctic tourism.

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Adam Lajeunesse, an associate professor at St. Francis Xavier University who specializes in Arctic marine security, told the CBC thatquestions about Chinese companies investing in Canada are mostly hypothetical, because the Chinese 'Polar Silk Road' is mostly focused on the Russian Arctic.

Chinese companies have invested tens of billions of dollars in Russia, including in natural gas, Lajeunesse said.

Chinese investment in northern Canada has included stakes inmineral development in the Northwest Territoriesand Nunavut's Izok Lake project, but Lajeunesse calls it comparatively"minimal."

"I think the vision for the Canadian Arctic, if they have one, is much more long term," he said.

Courting opportunities

Industry, Tourism and Investment Minister Wally Schumann says China's polar policy is something his department keeps a close eye on. In 2015, the Government of the Northwest Territories created a China Strategy and Action Planthat looksat how the territory could promote investment, tourism, and luxury goods with the nation.

He hopes pressure to get China off coal could leave the country interested in the territory's natural gas reserves.Also, he hopes the area's cobalt reserves could be of interest.

"Metal needs are always changing," he said.

"We're starting to see more of a focus not just on traditionalmining but also on technology metals."

Questions about sovereignty

Lajeunesse said he thinks courting Chinese investment is a good idea, but addedit raises concerns about security for some critics.

• Critics fear China's foray into Northwest Passage endangers Arctic sovereignty

He said Canadashould be aware of the relationship the Chinese government has with its state-owned companies.

If major investments are made in Canada's North by companies where China holds a significant interest, "it is a point of leverage" that China could potentially use to influence domestic policy, according to Lajeunesse.

• FROM 2015 | China seeks to establish Northern Canadian research outpost

• Federal government blocks sale of construction giant Aecon to Chinese interests

Schumann saidcourting Chinese investment means balancing security concerns with a desire to bring money into the territory.

"You've got toremember,these guys have all the money," he said.

"We've got to pay attention to what they're doing but it's got toline up with,not just what the Northwest Territories, but what Canada wants."