Unified Korea’s economic benefits
The Danish government has been concerned that Chinese involvement in Greenland’s airport projects could upset the US, Reuters reported recently, but Washington’s interests can’t be an excuse to prevent Chinese companies from participating in commercial activities in the Greenland.
Greenland is an autonomous island within the Kingdom of Denmark. Its privileged geographical position as a key point located along the shortest route from North America to Europe via Arctic islands make the island a strategically important region for the US, which maintains a military presence on the island.
It is understandable that Denmark may worry that the “tentacles” China stretches into Greenland may affect its relations with the US. If Reuters’ report is true, it is very likely for Chinese companies to be treated unfairly in Greenland. The project will become a classic case of political prejudice against China being adopted in infrastructure projects.
China Communication Construction Co and several other foreign enterprises from countries such as Canada had reportedly been shortlisted for Greenland’s airport projects. The Danish government must provide equal treatment to those enterprises, or its economic ties with China might suffer a blow as a result.
China is now the EU’s second-largest export market and an important source of investments. If EU countries, Denmark included, want to continue their businesses with China and promote a sound bilateral relationship, they cannot care too much about Washington’s interests when it comes to China-US competition.
They will encounter problems if those countries take sides and choose between China and the US. Efforts to follow business rules and create a fair business environment for companies from different countries is the only way to maximize their interest.
Chinese companies are leveraging their capacity to invest around the world with a good reputation of a high performance-to-price ratio. China has built infrastructure facilities in many countries and regions, so it is not much of a surprise when Chinese companies cast their eyes on Greenland.
The application bid by Chinese firms for Greenland’s infrastructure work reflects market-driven commercial behavior in line with international practices. We hope the Danish government can act in line with the rules of market-oriented operation, and avoid getting involved in an imaginary strategic game between China and the US. Sino-Denmark economic ties will surely be better off without political considerations being involved in bilateral investments.