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What does China aim to gain in the Arctic?

China is located 2,000 kilometres south of the Arctic. Yet, they have shown a growing interest in the far north. What do they want?

Chinese companies have helped sustain Russia’s major energy project, Arctic LNG.
Anna Valberg
Head of Communications
Presented by: Fridtjof Nansen Institute
Published

The Arctic’s icy expanse conceals more than just Russian nuclear submarines – it also holds valuable resources, including crucial metals and minerals, oil, and natural gas.

"China sees the Arctic as an opportunity for resource access," says Iselin Stensdal.

She researches Chinese energy policy at the Fridtjof Nansen Institute (FNI) in Norway. 

"But at the same time, Chinese officials frequently stress the importance of environmental protection in the region," she says. 

Iselin Stensdal researches Chinese energy policy at the Fridtjof Nansen Institute.

According to Stensdal, China’s interest in the Arctic is not surprising:

"China has great power ambitions, and being a global power means engaging everywhere in the world. With large ambitions and the ability to act on them, it’s natural for China to dedicate some resources to the Arctic," she explains.

However, perspectives differ. 

For Norway, a small Arctic state, China’s interest in the region is highly significant. But for China, which aims to play a role in global affairs, the Arctic is just one of many areas of focus.

Stensdal notes that China's interest in the Arctic seems to be declining.

"China published an Arctic policy in 2018, declaring itself a ‘near-Arctic’ state. This terminology sparked criticism among Western Arctic nations, and China has since largely abandoned the phrase," she says. 

If China does have strategic ambitions in the Arctic, how do they materialise?

No polar Silk Road

Many believed that China would invest heavily in developing a shortcut through the Arctic for trade with Europe. However, the Northern Sea Route (NSR) has not become the maritime highway many had envisioned. 

In 2021, China’s state-owned shipping giant COSCO set a record with 14 trans-Arctic voyages. But since 2022, no Chinese company has used the NSR to transport goods from Asia to Western Europe.

Erdem Lamazhapov is a PhD research fellow at FNI.

Instead, the NSR has become crucial for trade in and out of the Russian Arctic.

"Trade between Russian European ports – such as Saint Petersburg and Arkhangelsk – and China has increased, particularly due to oil exports," says Erdem Lamazhapov.

He is a researcher at FNI, specialising in China-Russia relations in the Arctic.

'This is a major shift. One Chinese company involved in this trade has even been accused of sabotage against infrastructure between Estonia and Finland," he says.

China helps Russia find new markets

While Europe has imposed strict sanctions on Russia, China and India have continued trading with Moscow.

Before 2023, crude oil was rarely transported through the Arctic due to high costs, making it more profitable to sell elsewhere. 

But China has helped Russia by creating alternative markets for sanctioned goods, including oil.

Initially, Russia’s Arctic liquefied natural gas (LNG) was intended for Asian markets. However, since 2022, a significant portion has been redirected to Europe due to high prices following reduced Russian pipeline gas exports. Chinese companies have played a crucial role in keeping Russian LNG projects operational, including Arctic LNG 2.

Russia opens the door, but China hesitates

China’s relationship with Russia is complex. However, the Russian Arctic region remains one of the few areas where China can access strategic resources and transport routes.

Passages at sea.

Russia has invited China to collaborate on the Northern Sea Route (NSR), including shipbuilding and insurance arrangements. However, China has been cautious about taking on a larger role.

"It's impossible to use the NSR without dealing with Russia. Ships need Russian permits and often require Russian icebreaker assistance," explains Lamazhapov.

Additionally, obtaining insurance for voyages in the area has become increasingly difficult, especially after 2022. As a result, Chinese businesses have been reluctant to rely on the route for trade with the West.

What is the Northern Sea Route?

The Northern Sea Route (NSR) is a shipping route along Russia’s northern coastline. When the ice melts in the summer, ships can travel between Europe and Asia through the Arctic. This route is shorter than going through the Suez Canal but remains challenging due to ice, economic factors, weather conditions, and weak infrastructure.

Russia controls the route and requires ships to obtain permission to sail. Many vessels rely on Russian icebreakers to navigate ice-covered areas. However, some modern LNG ships are designed to break through thinner ice on their own, allowing them to sail parts of the winter without icebreaker assistance.

(Source: Fridtjof Nansen Institute)

China moves cautiously in the Russian Arctic

Chinese companies are wary of risking their reputation or facing potential sanctions from other countries.

"A key episode in this saga is the negotiation of the Power of Siberia 2 gas pipeline, which Russia desperately needs to save Gazprom," says Lamazhapov.

The state-owned Gazprom has long been a cornerstone of Russia’s economy and geopolitical strategy. However, after losing European customers due to the war in Ukraine, the company has suffered significant financial losses. 

Power of Siberia 2 was supposed to boost exports to China, but the deal remains unsigned.

China and Russia present a united front in Arctic cooperation, but Beijing remains cautious about deepening economic commitments.

"In March 2023, President Putin claimed he and President Xi had agreed on ‘almost all the details.’ But the agreement never materialised, likely because China was dissatisfied with the price or the route through Mongolia," says Lamazhapov.

Although China sees strategic advantages in deepening ties with Russia’s Arctic, commercial considerations take precedence. China will not invest in projects that do not offer a clear economic benefit.

A seat at the table

"China carefully balances cooperation and competition. On the one hand, Beijing seeks partnerships with Arctic states. On the other, it aims to strengthen its own position," the researcher explains. 

China became an observer in the Arctic Council in 2013, granting it access to discussions on climate and resource management in the north.

"Securing a seat at the table has been important for China, which views itself as a global power. It wants to be seen as a serious player in the region," he says. 

Superpowers enter the Arctic

China’s presence in the Arctic has also raised concerns among other Arctic nations. Russia has previously expressed scepticism about China’s ambitions, while the United States has become increasingly focused on Chinese activities in the region.

Andreas Østhagen is a senior researcher at FNI.

"This is about more than resources – it’s about great power competition," says Lamazhapov.

"The U.S. barely paid attention to the Arctic before China became interested," says Andreas Østhagen.

He is a senior researcher at FNI specialising in Arctic geopolitics. 

"Now that China is more engaged, Washington is paying closer attention," he says, adding:

"In international debates, people sometimes assume the Arctic is a blank slate where countries can simply stake claims. But the Arctic is not unclaimed land where great powers can freely grab resources. All borders in the Arctic are settled." 

What does this mean for Norway? 

Norway is a small but key Arctic nation, with sovereignty over vast northern waters and a strong presence in international Arctic governance. 

As an Arctic state, Norway must navigate China’s growing interest in the region. Chinese investments could open opportunities for cooperation but may also create challenges, especially as China and the U.S. pursue competing Arctic strategies.

"Norway needs to strike a balance between collaboration and protecting its own Arctic interests," says Iselin Stensdal.

Norway must weigh economic opportunities against environmental risks and security concerns, as increased Arctic activity could have lasting consequences.

As the Arctic becomes a geopolitical chessboard, Norway must navigate shifting alliances, resource competition, and the environmental stakes of an increasingly contested region.

"The Arctic is just one piece of China’s broader strategy to expand its global influence," says Lamazhapov.

While China engages when it suits its interests, its Arctic approach remains strategic – engaging when beneficial, but always with long-term influence in mind.

References:

Lamazhapov, E. 'Polar Contradictions: China’s Dialectical Thinking About the Arctic', Geopolitics, 2024. DOI: 10.1080/14650045.2024.2408601 (Abstract)

Lamazhapov, E. & Moe, A. 'Russia’s Geopolitical Position in the Arctic: What’s New?' Strategic Analysis, 2025. DOI: 10.1080/09700161.2025.2459571 (Summary)

Stensdal, I. & Heggelund, G. (Eds.) 'China-Russia Relations in the Arctic: Friends in the Cold?' Palgrave Macmillan, 2024. (Summary)

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