ECONOMIC COMPETITION BETWEEN THE UNITED STATES AND CHINA IN THE ARCTIC: RESOURCES, LOGISTICS, AND GEOPOLITICAL CHALLENGES

This article explores the intensifying economic rivalry between the United States and the People's Republic of China in the Arctic region at the beginning of the 21st century. It focuses on three key dimensions of strategic interaction: competition for control over vast natural resources, the development of new logistical corridors through melting Arctic sea routes, and the growing military and diplomatic presence of major powers. The strate- gic importance of the Arctic is analyzed in the context of global energy dynamics, with particular attention to its substantial reserves of oil, natural gas, and critical minerals. The study also explores how climate change has made previously inaccessible areas more open to exploration and commercial use, thereby increasing the region’s signifi- cance in global trade and security networks. The article highlights the growing importance of emerging maritime routes that significantly shorten transit distances between European, Asian, and North American markets, as well as China's efforts to solidify its regional presence through the “Polar Silk Road” initiative, which complements its broader Belt and Road strategy. Special attention is given to the militarization of the region, including Russia’s ongoing expansion of Arctic military infrastructure, China’s expanding polar activities, and the U.S. response through modernization of its aging icebreaker fleet and the strengthening of joint defense efforts with NATO allies. Legal and institutional frameworks of Arctic governance are examined, with an emphasis on the role of the United Nations Convention on the Law of the Sea (UNCLOS) and the geopolitical implications of the United States’ continued nonratification. Additionally, the article considers foreign policy actions undertaken by both Washington and Beijing during the period 2018–2025, including President Donald Trump’s renewed interest in Greenland as a strategic asset. The conclusion emphasizes that the Arctic is becoming one of the primary arenas of global rivalry, where economic ambitions, national security considerations, and environmental concerns converge. At the same time, the region retains potential for scientific collaboration, environmental stewardship, and rules-based cooperation. The future of the Arctic will depend on the ability of key actors to balance competition with constructive engagement within a rapidly evolving system of international relations.

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Publication Details

Journal
Herald UNU International Economic Relations And World Economy
Published
2025-01-01
DOI
https://doi.org/10.32782/2413-9971/2025-56-11
Primary Topic
Arctic and Russian Policy Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

ECONOMIC COMPETITION BETWEEN THE UNITED STATES AND CHINA IN THE ARCTIC: RESOURCES, LOGISTICS, AND GEOPOLITICAL CHALLENGES

Yuriy Potaychuk
1 links
Herald UNU International Economic Relations And World Economy
Arctic and Russian Policy Studies
article

ECONOMIC COMPETITION BETWEEN THE UNITED STATES AND CHINA IN THE ARCTIC: RESOURCES, LOGISTICS, AND GEOPOLITICAL CHALLENGES

Yuriy Potaychuk
article en

Abstract

This article explores the intensifying economic rivalry between the United States and the People's Republic of China in the Arctic region at the beginning of the 21st century. It focuses on three key dimensions of strategic interaction: competition for control over vast natural resources, the development of new logistical corridors through melting Arctic sea routes, and the growing military and diplomatic presence of major powers. The strate- gic importance of the Arctic is analyzed in the context of global energy dynamics, with particular attention to its substantial reserves of oil, natural gas, and critical minerals. The study also explores how climate change has made previously inaccessible areas more open to exploration and commercial use, thereby increasing the region’s signifi- cance in global trade and security networks. The article highlights the growing importance of emerging maritime routes that significantly shorten transit distances between European, Asian, and North American markets, as well as China's efforts to solidify its regional presence through the “Polar Silk Road” initiative, which complements its broader Belt and Road strategy. Special attention is given to the militarization of the region, including Russia’s ongoing expansion of Arctic military infrastructure, China’s expanding polar activities, and the U.S. response through modernization of its aging icebreaker fleet and the strengthening of joint defense efforts with NATO allies. Legal and institutional frameworks of Arctic governance are examined, with an emphasis on the role of the United Nations Convention on the Law of the Sea (UNCLOS) and the geopolitical implications of the United States’ continued nonratification. Additionally, the article considers foreign policy actions undertaken by both Washington and Beijing during the period 2018–2025, including President Donald Trump’s renewed interest in Greenland as a strategic asset. The conclusion emphasizes that the Arctic is becoming one of the primary arenas of global rivalry, where economic ambitions, national security considerations, and environmental concerns converge. At the same time, the region retains potential for scientific collaboration, environmental stewardship, and rules-based cooperation. The future of the Arctic will depend on the ability of key actors to balance competition with constructive engagement within a rapidly evolving system of international relations.

Herald UNU International Economic Relations And World Economy(56)
Openalex Percentile: Top 76%
Arctic and Russian Policy Studies
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