The Polar Silk Road Attracts World Attention

By Guang Kejiang, Pei Guangjiang, etc., Peopl’s Daily Reporters

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The Polar Silk Road Attracts World Attention

By Guang Kejiang, Pei Guangjiang, etc., Peopl’s Daily Reporters

China is ready to rely on the development and utilization of the Arctic channels and to build a Polar Silk Road with all parties concerned. On January 26th, the Chinese Government issued the first Arctic policy document -- the white paper of China's Arctic Policy, in which the expression of jointly constructing the Polar Silk Road attracts worldwide attention.

As China releases the Polar Silk Road project, the reports of the British Broadcasting Corporation (BBC) on the same day says that China with Arctic states such as Russia and other countries will jointly develop the Arctic waterways, which is a part of a bigger ambitious plan to change the land and sea connection between China and Europe and other regions. This passage will provide China with a shorter transport channel than through the Suez Canal and the Panama Canal to other countries’ ports. From getting oil and gas to expanding the Belt and Road construction, China states ready to promote international cooperation in the Arctic, the US UPI reported. Today, the Russian news agency believes that the white paper states China's attitude towards the world's cooperation in the Arctic.

The Arctic waterways will greatly improve the global shipping pattern

To carry out cooperation on the Arctic waterways, together build a Polar Silk Road, and implement well the relevant interconnected and interoperable projects, Chinese President Xi Jinping expressed when meeting with Russian Prime Minister Medvedev in Moscow last July. Four months later when meeting Prime Minister Medvedev in Beijing, President Xi Jinping reemphasized that we would jointly work on development and utilization of the Arctic lanes and build a Polar Silk Road.

China has proposed the construction of a Polar Silk Road, which has a historical and realistic foundation. Since joining the Spitsbergen Archipelago Treaty in 1925, China's exploration of the Arctic has been enhanced, its practice increased, activities expanded and cooperation deepened. In recent decades, with global warming, the development and utilization of the Arctic waterways have historic opportunities. China has proposed the Belt and Road Initiative, continuously promoted interconnectivity and interoperability among various countries, and has naturally become an active advocate and promoter for a Polar Silk Road construction.

The opening of the Arctic waterways will promote the overall growth of the Arctic economic circle, and major changes in global trade and shipping patterns will occur. At present, the economic opportunities of the Arctic are increasing, but the infrastructure construction is weak and the gap is huge, so there is a great demand on the Chinese market, capital and technology. Shanghai Institutes of international Relations vice dean Yang Jian told reporters of the newspaper that the Chinese Government advocates multi-lateral cooperation to jointly build a Polar Silk Road, and will focus economic cooperation on forward-looking investments for cooperative development of the Arctic waterways and energy, vigorously contributes to construction of the Arctic infrastructure and digitalization .

The Arctic waterways include the Northeast lane, the Northwest lane and the Central lane. Russia proposes to China for cooperation to jointly build the Northeast waterway from the Northern waters of Northwestern Europe to Vladivostok in the East, passing through the Barents Sea, Kara Sea, Rapp Jeff sea, the Novosibirsk sea and the Bering Strait, is the shortest sea lane connecting Northeast Asia and Western Europe.

In 2013, the Yongsheng ship of the COSCO Group was the first Chinese cargo ship running on this lane. Up to now, the Special Shipping Company under the COSCO Group has dispatched 10 ships for 14 voyage missions on the Northeastern lane of the Arctic, among which 5 cargo ships in 2017 mainly carried goods, steel products, pulp and other goods to explore the normal passage on the Northeastern channel for the Chinese merchant ships.

Chen Feng, general manager of the Finland Shipping Company, COSCO, said that the Finland Shipping Company is studying the possibility of normalizing the Arctic lane services. The Northeast lane is saving time and mileage than traditional routes, which is becoming a new route connecting East Asia and Europe. To develop the commercial potential of this route has become the new goal of Finland shipping Company, COSCO.

The BBC reports that it only takes 20 days to travel from China to Rotterdam, Holland on the Arctic waterway, while takes 48 days to Rotterdam going through Suez canal. Data from the Russian Arctic logistics center shows that there were 297 ships passing through the Arctic Northeastern lane in 2016, an increase of 35% over the previous year. Well-informed people of the Industrial sector predict that with the rapid melting of Arctic sea ice, the number of ships from China to Russia and from China to Europe on the Arctic Northeastern Lane will increase year by year.

China-Russia Arctic development cooperation has made positive progress

Russia's Economic News Agency quoted Alexander Pilyazov, director of the Russian Northern and Arctic Economic Center, as saying that China's Arctic policy is to build a Polar Silk Road with all countries and provide opportunities for businesses to participate in infrastructure construction. Pilyazov believes that in recent years, an important starting point for China to develop its foreign relations is the China-proposed Belt and Road Initiative, the Polar Silk Road is an important part of the Belt and Road.

As early as 2015, Russian Foreign Minister Lavrov once stated that China is one of Russia's top partners in the Arctic cooperation. At the annual news conference last December, President Putin formally invited China to participate in the construction of the Arctic traffic corridor and build the Polar Silk Road.

The cooperation between China and Russia has made positive progress in the development cooperation of the Arctic. According to the briefing of the Chinese Ministry of Commerce in November 2017, the transport departments of the two countries are discussing a memorandum of understanding on maritime cooperation between China and Russia in Polar waters, and constantly improves the policy and legal basis of Arctic development cooperation. In addition, the two countries’ enterprises actively carry out cooperation in exploration and development of oil and gas in the Arctic region, and discuss the construction of traffic infrastructure along the Arctic waterways.

In the Arctic region the largest international energy cooperation project by Russia is the Yamal LNG project, which Putin calls a "vivid example of Russia-China friendly cooperation". Chinese Petroleum Corporation involved in the project operation throughout the value chains, by the end of October 2017, China and Russia have signed a long-term sales agreement totaled 14.78 million tons of liquefied natural gas accounting for 96% of the production. PetroChina and ICBC, the National Development Bank and the Silk Road Fund have completed a total of US$19 billion international financing for the project, accounting for 63% of the total. Of the 142 modules needed to build a natural gas plant, 120 modules were contracted by Chinese 7 enterprises represented by CNPC Oceanic Engineering Co., Ltd. Among 30 ships responsible for shipping the project construction materials, 7 vessels are China-manufactured, and of 15 ships transporting natural gas, 14 ships are operated by the enterprises of China.

According to Russian media reports, in addition to the Yamal LNG project, the largest deepwater port project in Ark Hangelsk city in Arctic region has identified China’s enterprises to participate in improvement projects. Russian Federation Finance University professor Vladimir Lemega said that the Polar Silk Road will become excellent transportation options for global oceanic trade, bring impetus to Russia's Arctic development plan, and the key to achieve the goal of cooperation between Russia and China.

The Nordic countries are willing to take an active part in the construction of the Polar Silk Road

As a country of the Arctic region, Iceland has always maintained close cooperation with China on the Arctic issue. In 2012, the two countries signed the memorandum of understanding on scientific and technological cooperation in the Arctic region between China and Iceland, so the cooperation between the two sides gets further deepened. The proposal of a Polar Silk Road Initiative will undoubtedly give more connotations for cooperation between the two countries on the polar issues.

Currently, the polar cooperation between China and Iceland is mainly concentrated in the field of scientific research. The Aurora Observatory jointly established by China Arctic and Antarctic Research Center and Iceland Research Center will be put into operation this year, and will embrace scientists from China, Iceland and other countries. Chairman of the Arctic Conference and Iceland former president Grimsson said that he was expecting China-Iceland cooperation on scientific research to expand to the glacier ice, new energy sources, so as to make more contributions to the human understanding of the Arctic, and rising to global challenges such as climate change and others.

A Polar Silk Road will bring new opportunities for China and Iceland to cooperate in the Arctic infrastructure. It is reported that China has studied the construction of a deepwater port project in the Northern Gulf of Iceland to ensure Iceland a major shipping center on the North Sea lanes. Although the port project is still in the research stage, the level of cooperation on Arctic issues between the two countries has been steadily improving. In addition, Iceland has allowed CNOOC to explore oil in the waters of Iceland, and the two countries are still in contact with the use of geothermal energy.

As an Arctic regional major country, Finland has always been interested in developing pragmatic infrastructure cooperation with China in the Arctic region. Finland welcomes the Polar Silk Road Initiative proposed by China, and hopes to promote docking with its Arctic Corridor plan, making Finland the hub of connecting Arctic and the Eurasian continents.

The Arctic railway planned by Finland will connect the Baltic Sea Economic Zone with the deepwater ports of the Arctic Ocean. Ms. Pelosi in change of the Arctic Corridor project said in an interview with this reporter that a Polar Silk Road Initiative is of great significance for both Finland and the entire Arctic region, and Finland is willing to become a window country to extend the Polar Silk Road to Nordic Europe and continental Europe.

Ms. Pelosi believes that the Polar Silk Road extended to Nordic Europe will greatly increase the transportation quantity of trade between Arctic Ocean and the Nordic countries, and Finland hopes to take its advantages to build the Arctic Corridor into a new global economic zone and transportation corridor; the Arctic Corridor can open the "last kilometer" of a Polar Silk Road to the Nordic countries market and the Eastern European market, and will connect China and Russia with the Pan-European transport network.

Ms. Pelosi expects the Arctic Corridor to interconnect with a Polar Silk Road, and to jointly build a magnificent traffic network across Europe and Asia. The port of Kirkenes, Norway at one end of the Arctic corridor is the nearest Western port on the Arctic Northeast lane to Asia. Once the Arctic waterways are regularly navigable, Kirkenes port will undertake an important cargo task, and the importance of the Northern ports of China will also be improved. Free trade and cooperation are of great importance to the sustainable development of the Arctic region, and which will be a win-win cooperation between the two initiatives, Pelosi said.

Hakkila, in charge of public relations of Finland Arctic Center, told reporters that as the rotating chairman country of the Arctic Council, Finland actively encourages China to participate in the relevant cooperation of Arctic affairs. At present, Finland is assessing the possible construction of a seabed optical cable in the Arctic Ocean and the construction of the Seabed Silk Road across the Eurasian continents. It is expected that the submarine cable will become the fastest data link between Europe and China after completion by the year 2020.

Firmly grasp the general direction of the Belt and Road construction

The report to 19th National Congress of the CPC, on the basis of fully affirming the achievements, points out we should focus on the Belt and Road construction, form a land-sea and internal-external interaction linkage and mutually beneficial opening pattern. We should take this as a guide, uphold the spirit of the Silk Road, and build the Belt and Road truly into a path of peace, prosperity, opening up, innovation and advanced culture.

The extensive consultation, joint contribution and shared benefits is the basic principle. The extensive consultation, joint contribution and shared benefits is an important guiding principle for the Belt and Road construction. The three elements are complementary and inseparable, and constitute an organic and unified whole. Under the new situation, follow the principle of extensive consultation, joint contribution and shared benefits, we should fully respect the differences among various countries and search for cooperation modes conforming with different national conditions; carry out the in-depth interfacing with the relevant national and regional development strategies, achieve complementary advantages and collaborative progress and; constantly enhance participants sense of gains, and fully mobilize the enthusiasm of all participants sides.

The key support is to deepen the "five interconnectivities" and cooperation. The policy, infrastructure, trade, financing and people-to-people interconnectivities are the core contents of the Belt and Road construction. Actively promoting international cooperation, we should regard the "five interconnectivities" as the starting point, and comprehensively upgrade the level of cooperation. We should constantly strengthen the policy interconnectivity, and consolidate the political foundation of the Belt and Road construction; strengthen infrastructure interconnectivity, and improve the Belt and Road construction infrastructure network; strengthen the trade interconnectivity, and continuously release the vitality of mutually beneficial cooperation; strengthen financial interconnectivity, and continuously improve the diversified investment and financing system for the Belt and Road construction; strengthen the people-to-people interconnectivity, and constantly deepen cultural cooperation in various forms, and ensure that the Belt and Road construction better serve the well-being of countries along the routes and peoples of the world.

With building a new pattern of comprehensive opening-up to the outside world as the direction. The Belt and Road construction is an important starting point to promote a new round of China's opening up. To promote the Belt and Road construction under the new situation is to boost the inland and border regions to become the forefront of the opening up, and gradually extend the opening-up from the coastal areas to inland and border areas. We should strengthen the docking of the Belt and Road construction with the national strategy on Beijing-Tianjin-Hebei coordinate development, and the Yangtze River economic belt development, and combine with the development of the western region, northeastrn regional revival, central regional rising, eastern region taking the lead in development, and development of an open border, and promote the formation of a land-sea and internal-external interaction linkage and mutually beneficial opening pattern.

(Excerpts of the article in People’s Daily 28 January 2018)

Chinese COSCO ship on the Arctic waterway shipping construction materials