Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation

Zhang Weipeng & Yu Xiaofeng

he Nordic countries have a highly developed economy and a high degree of , with significant advantages in technological innovation, energy conservation, environmental Tprotection, and social security, etc. Enhancing cooperation with the Nordic countries is indispensable for China to intensify its efforts to open up to the outside world and deepen its comprehensive strategic partnership with the . In view of this, the article attempts to assess the existing cooperation mechanisms and levels between China and the Nordic countries and explore pathways to upgrade the cooperation mechanisms.

Status Quo of China-Nordic Cooperation

The Nordic consists of five sovereign states, including , Sweden, Finland, Norway and , and three self-governing territories, including the (Denmark), (Denmark) and the Aland Islands (Finland). With geographical proximity, these places have similar history and traditions, and share many national interests. The Nordic countries prioritize issues such as environmental protection, social welfare, technological innovation, sustainable development and governance, while they view as their core interests upholding the principle of free trade in an open market economy and defending the unique status of Nordic values

Zhang Weipeng is a PhD candidate at the School of Public Affairs, Zhejiang University; Yu Xiaofeng is Professor at the School of Public Affairs and Director of the Center for Non-Traditional Security and Peaceful Development Studies, Zhejiang University.

148 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation in the international community. China has always valued its relations with the Nordic countries, which are generally stable despite occasional frictions. The China-Denmark comprehensive strategic partnership is developing at a high level. As a member of the European Union, NATO and the Arctic Council, Denmark has huge global influence on issues of Arctic governance, social welfare and the green economy. It also plays a pivotal role in the Nordic region’s most important organizations: the and the Nordic Council of Ministers. Denmark is the only Nordic country to have established a comprehensive strategic partnership with China, and is the first Nordic country to be a founding member of the Asian Infrastructure Investment Bank. China is Denmark’s second largest trading partner, after the European Union, and has been Denmark’s largest trading partner in for many years. Since the establishment of the comprehensive strategic partnership in 2008, despite some minor setbacks, the two countries have established fast-growing ties and productive cooperation on the whole. In 2017, Danish Prime Minister Lars Løkke Rasmussen visited China, and leaders of the two countries signed the China-Denmark Joint Work Program (2017-2020), which covers cooperation in a total of 58 areas and involves more than 80 government departments. Through measures such as overcoming institutional barriers, coordinating development strategies, strengthening two-way investment, emphasizing innovation, creating highlights of cooperation, building dialogue mechanisms, and holding bilateral economic and trade cooperation forums, China’s 13th Five-Year Plan (2016-2020) synergizes with the Danish Government Platform, and there has been a significant development in their “partnership awareness,” which centers on mutual trust, equal treatment, and respect and care for each other’s core interests and major concerns. China supports Denmark’s proposal of Partnering for Green Growth and the Global Goals 2030 (P4G). And, looking ahead, there is still much room for cooperation between the two countries in areas such as the green economy, agricultural trade, social welfare, digital commerce, Arctic governance, and trilateral cooperation in under-developed such as . The China-Denmark comprehensive

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 149 strategic partnership has become a model for friendly cooperation between China and the Nordic countries. China and Finland are striving to build a future-oriented new-type cooperative partnership. The development of China-Finland relations has no historical burden. The two countries have a high degree of mutual trust, a good foundation for cooperation, and have made rapid progress in trade and investment cooperation. In 2017, Chinese President Xi Jinping and Finnish President Sauli Niinistö jointly issued a statement, announcing the establishment of a China-Finland future-oriented new-type cooperative partnership. The newness of the partnership is particularly reflected in three aspects. First, the two countries are seeking to build a new value basis. Both China and Finland adhere to the values of freedom, openness and innovation, and advocate free trade and innovation-driven development. Second, they are exploring new cooperation issues. In addition to traditional cooperation areas such as economy, trade, investment, and environmental protection, the two heads of state also designated 2019 as the China-Finland Year of Winter Sports in their announcement. This will become a new highlight of future cooperation between China and the Nordic countries. Third, the two sides have integrated their new strategies. They will synergize China’s 13th Five-Year Plan with Vision: Finland 2025, and connect the Belt and Road Initiative with Finland’s Arctic Corridor to promote connectivity between and Asia. These three aspects will not only guide the future development of Sino-Finnish relations, but also play a leading role in deepening the China-Nordic sub-regional cooperation mechanism. China and Iceland are promoting new cooperation based on political mutual trust. At the critical period when Iceland was badly hit by the financial crisis and then its talks with the European Union over its fishing quotas became deadlocked, China offered solid support and helped Iceland overcome its difficulties. China’s actions not only deepened the political mutual trust between the two sides, but also enhanced Iceland’s willingness to deepen economic cooperation with China. In 2013, Iceland became the first European country to sign a free trade agreement with China.

150 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation During his visit to China in September 2018, Icelandic Foreign Minister Gudlaugur Thór Thórdarson expressed his country’s wish to expand cooperation with China in fields of e-commerce, bio-economy and health industry. The continued warming of economic cooperation has provided an opportunity for the development of bilateral relations in other fields. As early as 2012, China and Iceland signed the Framework Agreement on Arctic Cooperation, which is the first intergovernmental agreement between China and an Arctic country on Arctic cooperation.1 With the support of Iceland and other countries, in 2013 China successfully gained the status of Permanent Observer in the Arctic Council, and was invited for the first time to participate in the Arctic Circle hosted by Iceland. While continuing to set up a special panel on China-related topics, the organizing committee of the 2018 Arctic Circle also held a China Night event jointly with the Chinese embassy in Iceland. Iceland supports China’s participation in Arctic governance. Its ambassador to China, Gunnar Snorri Gunnarsson, made positive comments on China’s Arctic White Paper, calling it an “opportunity for Arctic cooperation,” and expressed optimism for future cooperation between the two countries.2 At present, China and Iceland are seeking new cooperation opportunities in geothermal energy, fisheries, non-ferrous metal and tourism. Furthermore, the China-Iceland Arctic Science Observatory was officially launched in October 2018. It has the capability to conduct research on aurora observation, atmospheric monitoring, glaciers, remote sensing, etc. It has become another integrated Arctic research base of China in the Arctic, apart from the Yellow River Station. The process of cooperation between China and Iceland not only demonstrates China is a responsible major country, but also provides a successful example for China to deepen its cooperation with other Arctic countries. China and Norway have overcome their differences and embarked

1 Xu Hong, “Arctic Governance and China’s Participation,” Journal of Boundary and Ocean Studies, No.2, 2017, p.7. 2 “An Exclusive Interview with Icelandic Ambassador to China Gunnarsson: Arctic Cooperation Opens a New Chapter in Iceland-China Relations,” People’s Daily, February 5, 2018, http://world.people.com.cn/ n1/2018/0205/c1002-29807108.html.

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 151 on a new journey. Sino-Norwegian relations were once stagnant due to the Nobel Peace Prize incident: their high-level exchanges ceased, their free trade agreement negotiations were suspended, and their bilateral trade plummeted. Since the normalization of relations in December 2016, the two countries have rebuilt mutual understanding and mutual trust, and have held frequent high-level meetings. Norwegian Prime Minister Erna Solberg’s successful visit to China in 2017 not only laid a solid foundation for future mutually beneficial cooperation, but also demonstrated to the world the common position of both sides in safeguarding free trade. During the talks, President Xi Jinping expressed his wish to Prime Minister Solberg that “Norway could play a more active role in pushing forward China- cooperation.”3 In 2018, the Norwegian King Harald V’s fourth visit to China further narrowed the distance between the two countries. The signing of several agreements on issues such as fishery trade, smart cities and offshore power generation not only highlighted the rapid resurgence of relations between the two countries, but also raised the bilateral ties to the level of jointly maintaining the rules-based international order and multilateral trading system and creating a better future for future generations. With their steadily growing economic and trade cooperation, concluding a free trade agreement with China has become the top priority of the Norwegian government,4 on which the two countries have reopened relevant negotiations. On December 9, 2018, the Hålogaland Bridge, which was jointly constructed by China and Norway, opened, marking a significant initial fruit of their cooperation in infrastructure, and offering a good example of how to advance their pragmatic cooperation. China and Sweden have sought to broaden their common ground and iron out their differences. Sweden was the first Western country to establish diplomatic relations with the People’s Republic of China. Although sensitive

3 “Xi Jinping Meets with Prime Minister Erna Solberg of Norway,” Embassy of the People’s Republic of China in the Kingdom of Norway, April 10, 2017, http://no.china-embassy.org/eng/zjsg_2/sgxw/t1453829.htm. 4 “Achieving a Free Trade Agreement with China a Top Priority for the Norwegian Government,” Ministry of Commerce of China, September 23, 2018, http://www.mofcom.gov.cn/article/i/ jyjl/m/201808/20180802778682.shtml.

152 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation incidents have occurred sporadically, the overall relationship between China and Sweden has remained stable. When meeting with Swedish Prime Minister Stefan Löfven in 2017, President Xi said that the two sides should be committed to “shaping a healthy, stable and sustainable China- Sweden relationship.”5 In the 2018 Statement of Foreign Policy, the Swedish government perceived the status quo of China-Sweden cooperation as “extensive.”6 In recent years, the two countries have deepened their pragmatic cooperation and achieved fruitful results, with the bilateral trade volume maintaining double-digit growth. In 2017, the Sino-Swedish bilateral trade volume totaled US$15 billion, five times that of 2001. Data on China’s overseas investment in Europe in the first half of 2018 showed that “Sweden was the largest European recipient of Chinese investment.”7 However, incidents such as Stockholm police’s brutal treatment to Chinese tourists and the insult to China by a Swedish TV program in September 2018 to some extent hurt the stable development of Sino-Swedish relations. In the future, the Sino-Swedish Green-Coop Platform, the Sino-Swedish Innovation & Entrepreneurship Forum, the China-Sweden Science, Technology & Innovation (STI) Cooperation Matchmaking Meeting, and other forms of exchange and cooperation programs will act as catalysts, helping synergize China’s 13th Five-Year Plan and innovation-driven development strategy with Sweden’s Smart Industry strategy and Innovation Partnership Programs. In addition, joint funding mechanisms in key fields will be launched. On the basis of mutual respect and equal treatment, the two countries will jointly promote the healthy and stable development of their relations. In addition to bilateral cooperation, China and the Nordic countries are actively exploring multilateral cooperation. As early as 2012, then President of the Nordic Council Kimmo Sasi publicly expressed his hope

5 “Xi Jinping Meets with Prime Minister Stefan Lofven of Sweden,” Ministry of Foreign Affairs of China, June 26, 2017, http://www.fmprc.gov.cn/mfa_eng//zxxx_662805/t1473803.shtml. 6 Government Office of Sweden, “The Government’s Statement of Foreign Policy 2018,” February 14, 2018, http://www.government.se/speeches/2018/02/the-governments-statement-of-foreign-policy-2018. 7 ”Sweden Is the Largest Recipient of Chinese Investment in Europe,” Economic and Commercial Counsellor’s Office of the Embassy of the People’s Republic of China in the Kingdom of Sweden, July 20, 2018, http://se.mofcom.gov.cn/article/jmxw/201807/20180702768 230.shtml.

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 153 that the Nordic Council should strengthen its ties with China. In 2016, the Nordic Council of Ministers made a decision to explore opportunities for greater Nordic sub-regional cooperation with China. In turn, China proposed establishing a “5+1” dialogue with the Nordic countries. In May 2017, Chinese Vice Foreign Minister Wang Chao and Secretary- General of the Nordic Council of Ministers Dagfinn Høybråten issued a joint press release on strengthening Sino-Nordic cooperation, in which the two sides agreed to prioritize five areas for their future cooperation: entrepreneurship and business; sustainable development; science, research and education; people-to-people exchanges; and welfare solutions.8 In January 2018, Speakers of the Nordic and Baltic countries jointly visited China, launching a new form of high-level exchanges between China and the Nordic sub-region. The multilateral cooperation between China and the Nordic countries takes many forms, including the Sino-Nordic Relations Forum, the Sino-Nordic Young Champions Forum, the Nordic-China Innovation Cooperation Summit, the Sino-Nordic Arctic Research Center, the Sino- Nordic Think Tank Roundtable, the Sino-Nordic National Science Strategy Roundtable, the Nordic Environment Technology Cooperation Summit Forum, and the Sino-Nordic Trade and Economic Cooperation Forum (held during the first China International Import Expo). Given the development levels of China’s different regions, China and the Nordic countries have also signed multilateral cooperation agreements and expanded their cooperation areas to provide Nordic enterprises with development opportunities in China. Regarding the top issues of common concern, the two sides have also set up channels to enhance their mutual understanding and establish a community of perception. In addition, through its active participation in activities such as the Arctic Circle and the Arctic Frontiers Conference, China has extensively communicated and built consensus with the Nordic countries on Arctic issues.

8 “Nordic Talks in China,” May 25, 2017, http://www.norden.org/en/news-and-events/news/nordic-talks- in-china.

154 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation The Sino-Nordic Trade and Economic Cooperation Forum was jointly held by China’s Ministry of Commerce and Hubei Provincial People’s Government in Shanghai on November 6, 2018, on the sidelines of the first China International Import Expo.

Institutionalization of Sino-Nordic Sub-Regional Cooperation Consistent with Mutual Interests

Though the bilateral ties between China and the Nordic countries are becoming closer and their multilateral cooperation is taking increasingly diverse forms, the two sides have not yet established a framework for their sub-regional cooperation. As a result, the potential of their current bilateral cooperation has not yet been fully tapped or unleashed. Specific examples include the lack of flagship cooperation projects, the absence of a high-level policy communication mechanism and a crisis management mechanism at the regional level, and the slow progress in the implementation of cooperation initiatives. In view of the high compatibility of the two sides’ development strategies and the complementarity of their resource endowments, it is imperative to institutionalize Sino-Nordic sub-regional cooperation. First, it is conducive to expanding consensus and tackling challenges

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 155 together. In recent years, the aftermath of the European debt crisis and security issues, especially the refugee crisis, have led to the superposition of risks; Brexit has brought about chain reactions; the rifts in relations between Russia and Western countries have caused geopolitical conflicts; and the Trump administration has withdrawn the United States from the Paris Agreement and repeatedly challenged global free trade rules. All of those developments have had unprecedented impacts on the Nordic countries’ economic interests, geopolitical security and their views on global governance. China is also facing challenges such as trade protectionism and the resurgence of great-power competition. Sino-Nordic sub-regional cooperation is not only conducive to expanding pragmatic cooperation and promoting economic growth of both sides, but also conducive to consolidating consensus and jointly maintaining a just and reasonable international order. Second, it is conducive to enhancing political mutual trust, and preventing and defusing cooperation risks. Generally, the bilateral relations between China and the Nordic countries are stable, but due to differences in their social systems and values, some of the bilateral relationships occasionally encounter frictions because of ideological disputes, which has added uncertainties to China’s efforts to deepen relations with the Nordic countries. The two sides need to maintain the broad trend of their friendly cooperation and conduct candid dialogues on the basis of mutual respect for core interests and major concerns, so as to resolve the divergences and contradictions caused by differences in concepts, systems and culture. Institutionalizing Sino-Nordic sub-regional cooperation would help both sides to recognize each other’s global positioning, development goals and strategic judgments in a more comprehensive way, increase their tolerance and understanding of each other’s policy intentions and development models, reduce or even avoid strategic misjudgments, achieve mutual trust and understanding, and learn from each other’s development and governance experience. At the same time, maintaining political mutual trust also requires the establishment of a multilateral crisis management mechanism in order to reduce cooperation risks. The institutionalization of Sino-Nordic sub-

156 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation regional cooperation can provide a platform for crisis management methods, such as multilateral dialogue mechanism for leaders, information sharing channels and inter-departmental coordination schemes. Third, it is conducive to optimizing the environment for cooperation and raising the efficiency of strategic synergy. The development experience of the Nordic countries in the green economy and social security significantly correspond to China’s development goals. The Nordic countries have similar industrial advantages and social systems; the multilateral cooperation mechanism within the Nordic region is dynamic; and personnel, capital and technology are highly mobile within the region. In view of these three factors, institutionalizing Sino-Nordic sub-regional cooperation is favorable for establishing inclusive and open cooperative thinking and reducing cooperation obstacles caused by distribution of economic benefits and interference from external forces. In addition, the Nordic countries usually need to build cross- border channels to reduce transportation costs, raise transportation efficiency, improve their respective geographical environment and enhance their respective regional influence. Institutionalizing Sino-Nordic sub-regional cooperation would facilitate coordination of interests of all parties. This prospect would also help China synergize its strategies with the Nordic countries’ transport infrastructure construction plans, by sharing experience, offering financial guarantees and providing technical support. The efficiency of strategic synergy would thus be raised, and the depth of their cooperation expanded. Fourth, it is conducive to deepening Arctic cooperation and jointly promoting Arctic governance. The five Nordic countries have somewhat similar Arctic policies. China, as a “near-Arctic state,” is an important stakeholder in Arctic affairs. In recent years, scientific expeditions by China and the Nordic countries have made remarkable progress in areas such as climate change, ecological and environmental protection, resource utilization, and aurora detection. The attempt to establish a multilateral coordination mechanism between China and the Nordic countries on Arctic policies is conducive to building an equal and open multilateral communication platform, enhancing cooperation among the parties in Arctic infrastructure construction, opening

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 157 Arctic shipping routes, and protecting Arctic ecology. This mechanism would respond to respective interest appeals of the parties concerning the Arctic, and enable them to jointly safeguard Arctic peace, stability and development.

Challenges of Institutionalizing Sino-Nordic Sub-Regional Cooperation

The five Nordic countries have differences in areas such as diplomatic priorities, geopolitical interests and economic development strategies, and each of them is also very different in terms of political closeness to and structure of economic cooperation with China. To promote institutionalization of Sino-Nordic sub-regional cooperation, the different interests and concerns of relevant countries should be balanced in the first place, and meanwhile special efforts are needed to resolve the difficulties encountered in the process of establishing cooperation mechanisms. First, political mutual trust needs to be strengthened. There are differences between China and the Nordic countries in terms of their political systems and values. Most Nordic countries’ foreign policies emphasize the priority of values and norms, while China has always adhered to the Five Principles of Peaceful Coexistence, and the path of peaceful development, firmly upholding national sovereignty, security and development interests and opposing any country’s interference in its internal affairs in any form. Due to manipulation by the United States and other Western countries, there is a growing trend for economic issues to be politicized and political issues to be made economic. The five Nordic countries have doubts about how to carry out institutionalized cooperation, as a unified entity, with a large developing country that has a vastly distinct ideology and seemingly different values. The first reaction of the Nordic decision-makers to China’s Belt and Road Initiative was hesitation. They were worried about whether they could continue to defend the important positions of their values in the international community, and whether they could still play a role in international hotspot issues and further improve

158 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation their global prestige. Because of some Nordic countries’ misunderstanding of the original intention of Chinese enterprises to invest overseas, China’s efforts could be regarded as a challenge to the existing order in Europe and the Arctic. One example is the obstacles Chinese investment encountered in Greenland. As Denmark feared it would increase Greenland’s centrifugal tendency and lead to interference from third forces such as the United States, China’s plan to construct Greenland’s airport was rejected by the Danish government. This case shows that the lack of political mutual trust has restrained practical cooperation in the economic field. It can be imagined that the trust deficit will weaken the motivation of the Nordic countries and China to institutionalize their multilateral cooperation. Second, there may be obstacles from the European Union. The EU has always had doubts about China’s promotion of sub-regional cooperation in Europe. A case in point is China’s cooperation with Central and Eastern European countries (CEECs). “Since joining the EU, CEECs have seen their policy choices in various fields influenced by the EU, which serves as an economic, institutional and conceptual force.”9 The EU is not only worried that China’s increasing influence in CEECs will make it difficult to form a consistent policy toward China, which would reduce its bargaining power in negotiations with China, but is also concerned that the institutionalization of “16+1” cooperation will impact the process of European integration. Although in all previous China- CEEC leaders’ meetings China has clearly reaffirmed the principle of mutual benefits and win-win cooperation and their support for European integration, the EU is still full of worries. The Nordic countries that are EU members—Denmark, Sweden and Finland—are worried about whether the establishment of institutionalized sub-regional cooperation with China will conflict with the EU’s economic and trade rules, industrial interests and the Common Foreign and Security Policy (CFSP). This attitude may hamper China’s promotion of sub-regional cooperation. The EU’s high concern

9 Jin Ling, “Analysis of EU Factors in Foreign Economic Cooperation of Central and Eastern European Countries,” Chinese Journal of European Studies, No.2, 2015, p.29.

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 159 about China’s “sub-regional diplomacy” has increased the difficulty of institutionalizing Sino-Nordic sub-regional cooperation. Third, mutual understanding and awareness need to be enhanced. For geographical and historical reasons, China and the Nordic countries have relatively limited mutual understanding, and exchanges between the two sides at all levels and in all fields need to be further strengthened. Chinese scholars have not conducted adequate basic research into the bilateral relations among the Nordic countries, the forms of multilateral cooperation in the Nordic region, the Nordic countries’ policy preferences in regional international organizations, and their relations with the European Union, the United States, Russia and the three Baltic states. There are even blind spots in some issue areas, making it difficult for the Chinese academic community to provide sufficient intellectual support for promoting Sino-Nordic sub- regional cooperation. In terms of personnel training, although China has set up many Nordic research centers in recent years,10 the personnel training of these research centers is still in an early stage, and their research mostly focuses on linguistics and literature, rather than the policies of the Nordic countries. On the other hand, the Nordic countries have many experts and scholars who are studying Chinese issues, and have formed relevant academic and policy research communities, but the general public in those countries still have very limited understanding and awareness of China, and therefore there is insufficient public support for strengthening relations with China.

Approaches to Institutionalizing China-Nordic Sub-Regional Cooperation

To institutionalize Sino-Nordic sub-regional cooperation, a proper positioning

10 Up to now, the Nordic research centers that have been established in China include: the Danish Research Center, the Finnish Research Center, and the Icelandic Research Center at Beijing Foreign Studies University; the Swedish Research Center at Shanghai International Studies University; the Norwegian Research Center at Beijing Language and Culture University; the Danish Research Center at Beijing International Studies University; the Icelandic Research Center of the University of Jinan; and the Finnish Research Center of Tianjin Foreign Studies University.

160 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation is needed. In other words, Sino-Nordic sub-regional cooperation should be built into an all-round, wide-ranging, multi-level, innovation-oriented and high-level mutually beneficial and win-win relationship. To achieve this, the advantages of bilateral ties should be brought into play, namely, the China- Denmark comprehensive strategic partnership, the China-Finland future- oriented new-type cooperative partnership and the China-Iceland free trade agreement should be held up as good examples, and the negotiations over a China-Norway free trade agreement should be accelerated. These examples of bilateral cooperation would help strengthen sub-regional cooperation. Efforts should also be made to coordinate the three pillars of economic reciprocity, political mutual trust and value integration. The sustainable development of economic cooperation should be achieved through practical economic benefits and measures aimed at creating mutual benefits and a win-win outcome. At the same time, a long-term perspective is required to consider the political obligations and global responsibilities that both sides need to jointly fulfill, and communication among different values is necessary to promote dialogue, inter-cultural understanding and tolerance. By giving play to the role of Sino-Nordic institutional sub-regional cooperation in complementing and guiding existing bilateral and multilateral ties, and strengthening its practical and innovative nature, it is likely to become a new path in the future to promote China-Europe comprehensive strategic partnership and the governance of Arctic affairs. In the process, five priority areas of cooperation should be highlighted: entrepreneurship and business, sustainable development, scientific research and education, people-to-people exchanges and social welfare. These efforts will take Sino-Nordic sub-regional cooperation to a new level.

Solid mechanisms as the foundation Optimizing the decision-making mechanism. Summits between China and the five Nordic countries should be held regularly. Furthermore, dialogues with leaders of the European Union, the Nordic Council, and the Nordic Council of Ministers should be strengthened to discuss respective

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 161 development plans. Improving policy coordination mechanisms. The existing bilateral cooperation mechanisms should serve as an example to explore the key points and difficulties of expanding bilateral coordination into multilateral coordination. Joint ministerial meetings and ministerial “point-to-point” consultations can be convened to strengthen policy coordination, and a secretariat can be established to improve cooperation efficiency. Establishing a policy planning mechanism. A joint working group on policy planning and formulation should be formed to be responsible for long-term planning of Sino-Nordic sub-regional cooperation while supervising the implementation of relevant policies. Meanwhile, proposals for long-term cooperation can be made through close contact between Chinese and Nordic think tanks. Highlighting the risk prevention and control mechanism. In the process of institutionalizing Sino-Nordic sub-regional cooperation, there may exist risks such as an unequal business environment, poor coordination and communication, and interference by third parties. It is, therefore, necessary to improve the operating mechanism for Chinese enterprises’ overseas investment, regulate their overseas investment behavior, strictly enforce project management standards, and adhere to local laws and regulations. Meanwhile, China should fulfill its commitment to further opening up, optimize the business environment for Nordic enterprises in China, and advance Sino-Nordic investment cooperation in a steady and sustainable direction.

Economic cooperation as the focus To institutionalize Sino-Nordic sub-regional cooperation, efforts should not only focus on the priorities of industrial cooperation and fine-tuning the cooperation rules, but also aim to create flagship projects and innovate cooperation patterns. First of all, attention should be paid to cooperation in the blue economy. With the continuous improvement of navigation conditions

162 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation in the Arctic region, “the Nordic countries will be the beneficiaries of the growing maritime trade of China and other East Asian countries in the Arctic region.”11 China should strive to reach an agreement with the Nordic countries on building “a blue economic passage leading up to Europe via the ,”12 and realize connectivity by jointly building transportation hubs, important ports and main transportation lines. At present, China has decided to participate in the construction of a high-speed railway project connecting Stockholm, the capital of Sweden, with Oslo, the capital of Norway, a tunnel project between Sweden’s Helsingborg and Denmark’s Helsingør, and the Arctic Corridor project, which starts from Kirkenes in Norway, links Rovaniemi in Finland, via the Finnish capital Helsinki, and ends in Tallinn, the capital of Estonia, thus opening up a new passage from the Arctic Ocean to the European continental hinterland. These projects need to undergo feasibility studies by relevant countries, and once implemented, they will greatly enhance the economic cooperation between the two sides. Second, intensive efforts should be made to promote cooperation in the green economy. The five Nordic countries have accumulated rich experience in development concepts, promotion strategies and technological innovation of the green economy. China should integrate the flagship bilateral cooperation projects, like China-Denmark clean air and water technology cooperation, the Sino-Swedish Green-Coop Platform, China- Norway green innovation and smart city development cooperation, China- Finland intelligent environmental protection cooperation, and China-Iceland geothermal cooperation in support of construction of China’s Xiong’an New Area, to build a more diversified and open cooperation platform and create flagship multilateral cooperation projects. Finally, emphasis should be put on planning cooperation in the “white

11 B. S. Thygeson, W.Y. Lindgren, and M. Lanteigne, China and Nordic Diplomacy, London and New York: Routledge, 2018, p.123. 12 “Vision for Maritime Cooperation under the Belt and Road Initiative,” Belt and Road Portal, June 20, 2017, https://www.yidaiyilu.gov.cn/wcm.files/upload/CMSydylgw/201706/201706200153032.pdf.

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 163 economy,” that is, cooperation in areas such as ice-snow tourism and sports. Developing the white economy is not only a new highlight of economic cooperation, but also a new path of people-to-people exchanges. The Nordic countries are in a world-leading position in terms of winter sports penetration rate and competitive level. Beijing’s successful bid for the 22nd Winter Olympic Games provides a rare opportunity for both sides to carry out “sports diplomacy” and popularize winter sports in China. The two sides should speed up the process of exploring potential market demand, strengthen cooperation in ice-snow tourism by opening more direct flights, improve tourism routes and regulate the tourism market. In this way, ice- snow tourism can serve to promote people-to-people ties.

Personnel training as the cornerstone In light of its relatively weak research on the Nordic countries, China should strengthen its cooperation with the Nordic countries in personnel training, by expanding research fields, enhancing academic exchanges, and cultivating research talents who are knowledgeable about both languages and policies of the Nordic countries. The goal should be to comprehensively improve China’s Nordic research, and provide intellectual support for deepening the Sino-Nordic sub-regional cooperation. First of all, while continuing to cultivate talents in Nordic languages, China should work to enhance the relevant personnel’s overall understanding of the Nordic countries. Given the common features of Nordic languages (which belong to the Germanic languages except Finnish, which belongs to the Uralic languages), China should fully utilize the current exchange system between students and scholars of China and the Nordic countries, and encourage those who go abroad to study local languages and understand local customs and foreign policies. Second, think tanks and higher education institutions should advance their exchanges and cooperation. While keeping up with the latest research and policy projects abroad, China can regularly invite well-known China experts from the Nordic countries to China, encourage Chinese scholars to

164 China International Studies Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation lecture in the Nordic countries, provide financial support for scholars from both sides to cooperate on and complete academic projects, and enhance the academic influence of present Nordic-country-specific research centers. Finally, research fields should be expanded and the research level improved. In addition to strengthening basic research on politics, economy, culture and society in the Nordic countries, China should pay attention to the study of the EU Strategy for the Baltic Sea Region, the European Strategy for More Growth and Jobs in Coastal and Maritime Tourism, the Trans- European Transport Network, and the Nordic Arctic Co-operation Program, especially how those programs would influence the institutionalization of Sino-Nordic sub-regional cooperation. Moreover, China should launch research on “lesser-known” sub-regional organizations such as the Nordic- Baltic Cooperation Organization (NB8), the Nordic Environment Finance Corporation (NEFCO), the West Nordic Council.

Mutual value integration as a bridge China should integrate the value of a community with a shared future for mankind with the joint efforts to implement the UN Sustainable Development Goals, further explain the great significance of advancing the Belt and Road Initiative, and work to build a value foundation for institutionalizing Sino-Nordic sub-regional cooperation. The UN Sustainable Development Goals can be closely synergized with China’s concept of building a community with a shared future for mankind and the vision of “Generation 2030: Nordic Cooperation on the UN Sustainable Development Goals.” China and the Nordic countries should take this opportunity to focus on mutually beneficial development and win-win cooperation, and forge a partnership with innovation and opening-up as the core based on a community of perception centered on the sustainable development concept. In this way, the Sino-Nordic sub-regional cooperation will become a model for developing and developed countries to jointly build a community with a shared future for mankind.

Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation May/June 2019 165