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Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation

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Institutional Approaches to Deepening China-Nordic Sub-Regional Cooperation 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 regional integration, 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 European Union. 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 region consists of five sovereign states, including Denmark, Sweden, Finland, Norway and Iceland, and three self-governing territories, including the Faroe Islands (Denmark), Greenland (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 Arctic 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 Nordic Council 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 Asia 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 regions such as Africa. 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 Europe 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
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