The Danish government is concerned about growing commercial ties between Greenland and China after Chinese construction companies appeared on a list of potential bidders for three airport projects in Greenland, an autonomous country within the Kingdom of Denmark.
A Danish government official told Reuters he worried about US concerns, saying: "China has no business in Greenland."
Chinese companies are on a list of 11 potential bidders for three airport projects on the island, which lacks integrated transport infrastructure between its 17 towns. Together the projects are worth $420m.
The tender is being organised by Kalaallit Airports, a state-owned company set up to build, own and operate airports in Nuuk, the capital of the self-governing territory, and the tourist destinations of Ilulissat and Qaqortoq in the south of the country.
At the end of last year Kim Kielsen, Greenland’s prime minister, visited Beijing and met representatives of China Communications Construction and the Beijing Construction Engineering Group as well as the Export-Import Bank of China.
China is interested in the Arctic Ocean. In January it published plans to develop a "Polar Silk Road" to halve sailing time between Asia and Europe. The route has been made feasible by the retreat of Arctic sea ice, but as yet there are few ports available to sustain the route.
A high-ranking Danish government official in Copenhagen told Reuters, on condition of anonymity, that the government was "deeply concerned". He said: "China has no business in Greenland. Denmark has a big responsibility to live up to with regards to our closest ally, the US."
Although Greenland’s government controls most domestic matters, foreign and security policy is handled by Copenhagen. Foreign investment in infrastructure is a grey zone, but if China is involved, Copenhagen can veto a possible deal, according to Reuters’ source.
Greenland has little transport infrastructure for its 56,000 people and limited resources to fund construction. At present it has no roads between its 17 towns and only one airport, at Kangerlussuaq in the west of the country.
Its government sees China as a source of capital to build connections, inaugurate direct flights to Europe and boost the island’s tourist industry and trade.
According to Johannus Egholm Hansen, the chairman of Kalaalit, the other companies registering an interest come from Denmark, Iceland, Canada, the Netherlands and the Faroe Islands. A shortlist will be drawn up in the next few months with a view to beginning work in October.
Image: Kalaallit’s rendering of Nuuk airport
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Of course Denmark has to protect the interest of US as US has the largest air force base there.