China Goes Global 2013- September 25-27, Bremen, Germany BEAUTY PAGEANT ON ICE: HOW CHINA AND THE EU COMPETE FOR THE ARCTIC’S RESOURCES Reinhard Biedermann Department of Global Politics and Economics Tamkang University, Taiwan (R.O.C.)
[email protected] ABSTRACT • Purpose: This paper compares China’s and the European Union’s economic diplomacy towards the Arctic region with focus on Greenland. The Arctic, due to climate change, has become the new frontier on intense global competition for resources and raw materials like rare earth elements. The paper gives an innovative insight in the interaction of competition for resources between the EU and China on democratic third markets. • Design/methodology/approach: The exploration is based on rational choice analysis and comparison of economic diplomacy along a framework that highlights the external situation of the Arctic for the EU and China, actor recognition, governance and diplomatic instruments, the role of norms in a democratic environment, sector interests, and negotiation results. • Findings: While China’s government supports its state-owned corporations, looking for ‘deals’, the EU is a multilevel governed, liberal market economy, that wants to establish a common floor of rules, including rights of indigenous people, environment protection, and democratic values. Cooperation between China and the EU on Arctic matters would be promising for both, but is currently not in sight due to China’s internal and external economic policy on resources. • Keywords : China, EU, economic diplomacy, Arctic region, strategic resources, rare earth elements 1. INTRODUCTION Over centuries the North Pole has been mystified, once upon a time known by children being the workshop and home of Santa Claus, that even has a Canadian postal address (“HoHoHo”).