Chinese investment in Greenland

• Main Authors: Mortensen, Bent Ole Gram, Su, Jingjing, Mouyal, Lone Wandahl
• Format: Article in Journal/Newspaper
• Language: English
• Published: Polar Research Institute of China - PRIC 2016
• Subjects: Local Communities; Greenland; Advances in Polar Science; Polar Science
• Online Access: http://library.arcticportal.org/2611/; http://library.arcticportal.org/2611/1/A170221000009.pdf

In 2009 Greenland moved to a more extensive degree of self-government in relation to the Kingdom of Denmark (the Realm), and most policy areas related to business activities and investment are now under the control of Greenland. Under the Self-Government Act, Greenland has issued legislation within several business sectors and other business-related policy areas, including the mineral resources sector. Today, Greenland is highly dependent on fishing and fish exports; however, the government is quite ambitious in its desire to develop new business sectors and attract foreign investment, including investment from China, especially to develop its mineral resources. China is now the second largest economy in the world, and outbound investments by Chinese companies present unprecedented opportunities for both the Chinese companies and their global partners. However, Chinese outbound investment faces many hurdles, both at home and elsewhere. It is highly advisable for Chinese companies to evaluate the regulatory, political, environmental, labor, and financial conditions and under-stand what remedies may mitigate the risks they identify before investing in Green land. This paper investigates and analyzes the hurdles faced by Chinese investors in both Greenland and the Danish Realm. The paper focuses on but is not limited to investments in the mining industry.