Russia clears the path for China in the Arctic

26.12.2024

China is actively increasing its presence in the Arctic, using cooperation with Russia as a springboard to consolidate its status as a global power

Although China’s Arctic policy is developing rapidly, the Arctic is not a primary foreign policy priority for Beijing, as noted by Professor Yana Leksyutina of the Russian Academy of Sciences. Nevertheless, China is systematically shaping its Arctic strategy, strengthening its research, technological, and transportation capabilities. It views its presence in the region as a means of demonstrating its great-power status, as well as an opportunity to expand its economic and technological influence.

Russia plays a pivotal role in enhancing China’s position in the Arctic. Amid geopolitical shifts and Western sanctions pressure, Moscow has prioritized strategic cooperation with Beijing, attracting Chinese capital and technology for Arctic development. A key area of interest is the joint expansion of the Northern Sea Route (NSR), which China views as a potential alternative trade corridor.

According to data presented at the St. Petersburg International Economic Forum, significant progress has been made in institutionalizing Russian-Chinese cooperation on the NSR over the past year and a half. Joint working groups on shipbuilding, navigation, and security have been established, while regular container shipments now connect Russian and Chinese ports. In 2023, the Chinese company HYNS organized eight voyages along the St. Petersburg—Shanghai route. In 2024, the test launch of the multimodal route «Arctic Express No. 1» linked Shanghai, Arkhangelsk, and Moscow.

However, China remains cautious about making large-scale investments in Russian Arctic projects due to concerns over secondary sanctions. Despite official statements in support of Russia, Chinese companies carefully assess the risks of cooperation in an unstable international environment. At the same time, China continues to enhance its expertise in Arctic shipbuilding, polar technologies, and maritime transport, which may provide it with significant competitive advantages in the global market in the long run.

For Russia, Arctic development is unfeasible without the involvement of foreign partners, as the realization of its strategic plans requires investment, technology, and stable trade relations. Moscow relies on creditors, equipment suppliers, and consumers of Arctic resources, including LNG. In this context, China emerges as a key partner due to its financial capabilities, technological expertise, and substantial demand for resources.

At the same time, Russia seeks to avoid over-reliance on a single partner. In addition to China, it is negotiating with India and the UAE to involve them in the development of the NSR and resource projects. In October 2023, the Russian state corporation Rosatom and DP World established a joint venture for container transit through the Arctic. Furthermore, discussions are underway regarding the potential involvement of Indian companies in shipbuilding and the training of seafarers for Arctic navigation.

Thus, while China utilizes its partnership with Russia as an opportunity to strengthen its Arctic capabilities, it remains cautious in its investment decisions. Russia, in turn, is striving to diversify its partnerships to avoid dependency on Beijing. In the context of global geopolitical turbulence, the Arctic has become a platform for complex strategic maneuvers, where Moscow must balance the need for investment with maintaining control over its natural resources.

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