The Island Donald Trump Wants for America: Greenland

The island that Donald Trump proposes purchasing for the United States, Greenland, has suddenly captured the world's attention. However, long before the U.S. set its sights on this frozen land, China had already recognised its potential.

In November 2012, I penned a column highlighting China's ambitions, as seen below. The piece appeared in a monthly column I ran at the time, China in a Certain Country, published in the magazine WEDGE. Thirteen years later, I realised that this article still remains relevant.

Column: China in a Certain Country

5,000 Chinese Workers in Greenland!?

Perhaps someone overheard a conversation in a corner of Beijing:

"Greenland's ice is melting, revealing abundant resources—diamonds, gold, iron ore, oil, and vast quantities of rare earth minerals. It's an untapped land of opportunity."

Gold, Diamonds, Oil: A Treasure Trove of Resources

"The population is fewer than 57,000, nearly 90% of whom are Inuit. While still under Denmark's sovereignty, Greenland has been self-governing since 2009 and appears to be on the path to independence. Importantly, control over its underground resources has already shifted to its autonomous government."

"Why not leverage Chinese money to take it all in? Let's start by sending Chinese workers there."

Whether such a conversation actually took place is unclear. Nevertheless, if Greenland were indeed open to relying on Chinese investment, whispers of plans to dispatch thousands of Chinese workers have surfaced. To appease environmental concerns, local advocacy groups such as Friends of Nuuk Fjord (Nuuk-fjordens venne) are already voicing worries over the ecological impact of imported diesel generators and other equipment.

Greenland currently receives an annual subsidy of approximately 48.5 billion yen (based on 2010 figures) from Denmark. However, as these subsidies are expected to gradually decline, the autonomous government is seeking ways to offset the shortfall. Beijing’s involvement was hinted at by Jens Frederiksen, Greenland's Minister of Transport, who told a Danish newspaper in June 2012: "I see no reason why we shouldn't collaborate with China."

One notable player is a London-based mining company, London Mining, founded in 2005. Specialising in iron ore and metallurgical coal exploration, the company serves only steel manufacturers. While its shareholder composition appears unremarkable, rumours abound that the firm acts as a proxy for China, purportedly operating under Beijing's influence or financial backing.

This company, reportedly established by individuals from major resource firms such as Rio Tinto and BHP Billiton, is often linked to China despite the lack of concrete evidence in its disclosed information. It has been characterised as a front company that operates in alignment with Beijing's intentions—accused of being "controlled by China" or "funded by Chinese money."

In a list of exploration rights announced by Greenland's Bureau of Minerals and Petroleum on September 1, 2012, London Mining appeared as the grantee for a project in Isukasia, a region rich in iron ore at the edge of the permafrost in western Greenland. Their plan involves open-pit mining and the construction of pipelines stretching 100 kilometres to transport the ore to the nearest ice-free port. Turning the mined ore into pellets, a process requiring generators, would indeed involve significant infrastructure.

Speculation is rife that Chinese labourers may be employed to reduce costs. While London Mining has reportedly pledged not to pay below Greenland’s minimum wage, foreign labour is deemed indispensable in such sparsely populated regions, with many believing the workers will inevitably be Chinese.

Additionally, U.S.-based Alcoa, a global leader in aluminium production, has plans to establish a large smelting plant in Greenland, taking advantage of its abundant hydropower. Reports suggest that as many as 3,000 Chinese workers might be involved in the construction. If both projects were to materialise, Greenland could see a sudden influx of around 5,000 Chinese labourers—nearly 10% of its total population.

To ensure a voice in the region’s evolving dynamics, China has been actively seeking formal observer status on the Arctic Council, a multilateral forum that shapes Arctic governance. As part of this effort, Beijing has been courting Denmark. In June 2012, then-President Hu Jintao made an official visit to Denmark, marking a historic first. Two months prior, Xu Shaoshi, China’s Minister of Land and Resources, had travelled to Greenland personally.

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